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Study Material

(Online Test for Confirmation of Officers)


Baroda Apex Academy

Bank of Baroda
Gandhi Nagar Campus

(for internal circulation only)

LEGAL & STATUTORY PROVISIONS........................................................................................ 25
RETAIL BANKING & THIRD PARTY PRODUCTS ......................................................................... 32
GOVT DEPOSIT ................................................................................................................... 44
PUBLIC PROVIDENT FUND 1968 SCHEME ............................................................................... 44
ROLE OF TECHNOLOGY IN BANK ........................................................................................... 49
RURAL/AGRI. BANKING AND FINANCIAL INCLUSION ............................................................... 74
MSME BANKING .................................................................................................................. 97
WHOLESALE BANKING ........................................................................................................105
CREDIT MONITORING, RECOVERY & NPA MANAGEMENT .........................................................142
HUMAN RESOURCE MANAGEMENT .......................................................................................153
IMPORTANT MENU OPTIONS FOR INQUIRY & REPORTS – FINACLE ...........................................173

Syllabus for DRO Confirmation


6. Overview of RURAL/AGRI. BANKING

Disclaimer: Though all efforts have been made to incorporate latest and correct information of
the related topics but in case of any doubt please refer book of instructions, reference books and
circulars of the bank. This booklet is focusing mainly on the confirmation online written test within
the bank and should not be considered as instruction manual.


Quick Bites

 Bank of Baroda was established on 20th July, 1908 at Baroda by ruler of erstwhile
Baroda State, His Excellency Maharaja Sayajirao Gaekwad-III
 Ten banks have since been merged with BOB
 Logo, the „Baroda Sun‟ reflects our corporate brand identity


Bank of Baroda founded by the Ruler of erstwhile Baroda State, His

Excellency Maharaja Sayajirao Gaekwad-III.

A saga of vision and enterprise

It has presence across 25 countries. Starting in 1908 from a small building in Baroda to its
new hi-rise and hi-tech Baroda Corporate Centre in Mumbai.

Our Logo

Our logo is a unique representation of a universal symbol. It comprises dual „B‟ letter forms
that hold the rays of the rising sun. We call this the Baroda Sun.

The sun is an excellent representation of what our bank stands for. It is the single most
powerful source of light and energy – its far reaching rays dispel darkness to illuminate
everything is touched. At Bank of Baroda, we seek to be the sources that will help all our
stakeholders realize their goals. To our customers, we seek to be a one-stop, reliable
partner who will help them address different financial needs. To our employees, we offer
rewarding careers and to our investors and business partners, maximum return on their

The single-color, compelling vermillion palette has been carefully chosen, for its
distinctiveness as it stands for hope and energy.

We also recognize that our bank is characterized by diversity. Our network of branches
spans geographical and cultural boundaries and rural-urban divides. Our customers come
from a wide spectrum of industries and backgrounds. The Baroda Sun is a fitting face for
our brand because it is a universal symbol of dynamism and optimism – it is meaningful for
our many audiences and easily decoded by all.

Our new corporate brand identity is much more than a cosmetic change. It is a signal that
we recognize and are prepared for new business paradigms in a globalised world. At the
same time, we will always stay in touch with our heritage and enduring relationships on
which our bank is founded. By adopting a symbol as simple and powerful as the Baroda
Sun, we hope to communicate both.


It all started with a visionary Maharaja's uncanny foresight into the future of trade and
enterprising in his country. On 20th July 1908, under the Companies Act of 1897, and
with a paid up capital of Rs 10 Lacs started the legend that has now translated into a
strong, trustworthy financial body, BANK OF BARODA.

It has been a wisely orchestrated growth, involving corporate wisdom, social pride and the
vision of helping others grow, and growing itself in turn.

The founder, Maharaja Sayajirao Gaekwad, with his insight into the future, saw "a bank
of this nature will prove a beneficial agency for lending, transmission, and deposit of
money and will be a powerful factor in the development of art, industries and commerce of
the State and adjoining territories."


Between 1913 and 1917, as many as 87 banks failed in India. Bank of Baroda survived
the crisis, mainly due to its honest and prudent leadership. This financial integrity,
business prudence, caution and an abiding care and concern for the hard earned savings of
hard working people, were to become the central philosophy around which business
decisions would be effected. This cardinal philosophy was over years of its existence, to
become its biggest asset. It ensured that the Bank survived the Great War years. It
ensured survival during the Great Depression. Even while big names were dragged into the
Stock Market scam and the Capital Market scam, the Bank of Baroda continued its
triumphant march along the best ethical practices.

Corporate Offices & Head Office

Head Office Corporate Centre

Suraj Plaza 1, Sayaji Ganj, Bank Of Baroda
Baroda 390005 Baroda Corporate Centre,
Plot No. C-26, Block G,
Bandra Kurla Complex,
Bandra (East),
Mumbai 400051

Branch Networks as of 30/06/2016

Area No. of Branches

Metro 1011

Urban 936

Semi-Urban 1435

Rural 1969

Total (Indian) 5351

Foreign (Overseas) 106

Total (Global) 5457

Controlling Offices

Zonal Offices 13

Regional Offices 70

Subsidiaries & Joint Ventures

Domestic Overseas

Subsidiary Subsidiary

BOBCARDS Ltd. Bank of Baroda (Botswana) Ltd.

BOB Capital Markets Ltd. Bank of Baroda (Kenya) Ltd.
Bank of Baroda (Uganda) Ltd.
Bank of Baroda (Guyana) Ltd.
Bank of Baroda (New Zealand) Ltd
Bank of Baroda (Tanzania) Ltd
Bank of Baroda (Trinidad & Tobago) Ltd.
Bank of Baroda (Ghana) Ltd.

Joint Venture Company (J.V.) Representative Offices

India First Life Insurance Company Limited Bank of Baroda (Thailand)

M/s India Infradebt Ltd.

Associate Associate

Baroda Pioneer Asset Management Indo-Zambia Bank Ltd. (Lusaka).

Company Ltd.
Baroda Uttar Pradesh Gramin Bank. Joint Venture
Baroda Rajasthan Gramin Bank.
Baroda Gujarat Gramin Bank. India International Bank Malaysia Berhad.

Associate Bank Overseas Non Banking subsidiaries

Nainitak BanK BOB (UK) Limited

State Level Bankers Committee (SLBC) Convenorship


Uttar Pradesh

Banks merged with Bank of Baroda

As many as 10 banks have been merged with Bank of Baroda during its journey so far:

 Hind Bank Ltd (1958)

 New Citizen Bank of India Ltd (1961)
 Surat Banking Corporation (1963)
 Tamil Nadu Central Bank (1964)
 Umbergaon People Bank (1964)
 Traders Bank Limited (1988)
 Bareilly Corporation Bank Ltd (1998)
 Benares State Bank Ltd (2002)
 South Gujarat Local Area Bank Ltd (2004)
 Memon Cooperative Bank Limited (2011)

Board of Directors

The constitution of the Board of Directors is as follows:

1. Mr Ravi Venkatesan Chairman

2. Mr P S Jayakumar Managing Director & CEO

3. Mr. Bhuwanchandra B Joshi Executive Director

4. Mr. Mayank K. Mehta Executive Director

5. Mr. A K Garg Executive Director

6. Mr. Mohammad Mustafa Director

7. Ms. Surekha Marandi Director

8. Mr. Prem Kumar Makkar Director

9. Dr. R. Narayanaswamy Director

10. Mr. Gopal Krishna Agrawal Director

11. Mr. Bharatkumar Dhirubhai Dangar Director

12. Ms. Usha A Narayanan Director

13. Prof. Biju Varkkey Director

Bank‟s Administrative and Functional Set Up

Indian Operations

1. Head Office, Baroda

2. Corporate Office (BCC) Mumbai
3. Zonal Offices
4. Regional Offices
5. Branches (Metro/ Urban/ Semi-Urban/ Rural)

1. Account Opening and Maintenance - Regional Back Office

Regional Back Office will accomplish following activities:

 Account opening and enrichment – Savings and Current Account.

 Generation of debit card request file & i-track number file for internet banking.
 Personalized cheque book issuance.
 Printing of customer statements and other intimations.
 CRM data entry.
 Changes in customer account details.
 Account closure.
 Account opening, renewal and printing of term deposits.

2. Payment Processing Centre –City Back Office

More automation is proposed to be carried out at the existing City Back Offices so that
productivity of processing of cheques can be enhanced.

3. Credit Processing Centres – SMELF /URLF

As part of business segmentation and to expedite our delivery mechanism, Bank has
established -55- SME Loan Factories and -66- Retail Loan Factories which work on
assembly line principal as on 31.12.2015.

4. Business Intelligence Unit –Data Warehouse

Business Intelligence Unit will undertake following activities:

 Generation of all MIS from CBS and ASCROM.

 Analysis of MIS.
 Communication of MIS to Branches, Regions, Zones and Corporate office.

5. Contact Centre

Bank has set up two Contact Centres in Lucknow & Baroda to fast
address the customer queries & grievances. The service timing has
been increased to 6 am to 10 pm (from earlier 8 am to 8 pm) for
better customer convenience.

Launch of Signature Tune and mascot

Bank has introduced Brand in Sonic Medium by launching a

“Signature Tune” on the occasion of its Foundation Day in the year
2011. The prime purpose was to highlight the spirit of the Bank as a vibrant and
energetic organization complementing the Logo.

Chillr Mobile App

In continuation of endeavour to provide simple and smart solutions to customers, Bank has
tied up with Chillr to launch “Chillr Mobile app”. Using the Chillr app, Bank of Baroda
customers can send and receive money instantly to registered Chillr users added in
customer‟s phonebook.

Customers can send money through Chillr mobile app to both partner and non-partner
bank customers. Currently our Bank and HDFC bank are partner banks. Non-partner bank
customers can only receive funds.

Only the mobile number of the beneficiary in the remitter's phonebook is needed.
Application enables customers to send money to any registered Chillr user on phone
contact list.

Baroda Academy

Implementation of BPR and OR will
require learning of new skill sets
for the employees. To train the
employees on new desired skills,
entire training system of the Bank
under the aegis of Baroda Apex
Academy, Gandhinagar has been
converted into Baroda Academy

Major technology Initiatives:

 Baroda Rewardz – Bank‟s Loyalty Program

 Online Loan Application – Educational Loan, Home Loan, Car Loan
 Balance enquiry through Miss Call
 Introduction of m-passbook
 New app m-connect
 Baroda connect – online registration
 New Debit Cards - RuPay Platinum & MasterCard Platinum Chip Debit Card
 Baroda MUDRA Card
 Baroda Flash N Move+ Contactless Debit Card
 EMV Chip Debit card
 Baroda Travel Easy Card
 Baroda Non-Stop – 24x7 banking

Corporate Social Responsibility:

Bank of Baroda has been in the forefront for social commitment with its innovative
approaches and products viz.

1. Baroda Swarojgar Vikas Sansthan

2. Baroda Grameen Paramarsh Kendras
3. Financial Literacy and Credit Counseling Centres (FLCC)

1. Baroda Swarojgar Vikas Sansthan

Baroda Swarojgar Vikas Sansthans have been set up with following purpose:

1. To train youth and impart them the knowledge and skill for taking up self
employment ventures.
2. To train youth to develop the attitude for working in rural areas, in rural
development projects.
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3. To assist trained youth, in self employment as far as possible, in obtaining credit
facilities from bank / other financial institution and to assist them in setting up their
venture successfully.
4. To conduct various training programmes (either independent or in-collaboration with
other organization connected with rural technology, rural development and
entrepreneurship development.)
5. To provide counseling and consultancy guidance with all possible help to the youth
in the field of Self Employment and Rural Development.

2. Baroda Grameen Paramarsh Kendras

The bank has established Baroda Grameen Paramarsh Kendras where following
activities are carried out:

 Financial Education and Financial Inclusion

 Information sharing and problem solving on technical issues
 Credit counseling
 Synergy and liaison with other organizations and development activities

3. Financial Literacy and Credit Counseling Centres (FLCC):

Bank has opened Financial Literacy and Credit Counseling Centres as a CSR initiative.
The centre opened is christened as “SAARTHEE” amply indicating its basic objective of
steering those under financial distress and educating to others to avoid financial mess.

Bank‟s HR Initiatives

 VOICE OF BARODIANS: Employee Engagement Survey-2016 was launched on

 E-learning course - Code of Conduct for Officers aimed to familiarize all officers with
various guidelines of code of conduct policy for officers of our Bank.

Baroda Manipal School of Banking:

The Baroda Manipal School of Banking is a unique association of Bank of Baroda and
Manipal Global Education to train students for a banking career in Bank of Baroda on a
“first-day, first-hour” productive model, and thereby have a ready pool of trained

Wealth Management Services

 Bank as part of customer centric measure initiated Wealth Management Services for
our HNI and affluent customers, a complete financial solution at one stop. The
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service has enabled our customers to buy various investment products through our
branches and is positioning our Bank as ―One Stop Financial Super Market
 Bank is offering Wealth Management Services to our customers with a view of
providing various financial services, apart from the regular banking activities which
includes Life Insurance, Non-Life Insurance, Health Insurance, etc.
 Mutual Funds, Online trading account etc are offered to the customers through
various tie-up partners.

Under Wealth Management Services currently we are offering 3rd party products in
Bancassurance, Mutual Fund, e-Trading etc. under tie up arrangement with various

Insurance IndiaFirst Life Insurance Co. Ltd.

National Insurance Company Limited

Mediclaim Insurance Baroda Health

ASBA Application Supported by Blocked Account

Mutual Fund UTI Mutual Fund

Birla Sunlife Mutual Fund

Reliance Mutual Fund -

Sundaram Mutual Fund

Franklin Templeton Investments

Baroda Pioneer Asset Management Co.

Kotak Mahindra Mutual Fund

IDFC Mutual Fund

e-Broking Baroda e - Trade

Baroda e-Trading

Audited Financial Results for the Quarter/Year ended 31st December, 2015 (Rs.
In crore)

Parameter (Average Figures) 31-03-2016 30-06-2016

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Total Global Business 983443 953940

Total Global Deposit 578107 557817

Total Global Advances 405126 396123

Net Profit (3230) 424

Shower of Awards & Accolades on Bank of Baroda

Bank of Baroda has bagged prizes in four categories under All India RBI Rajbhasha
Shield Competition for 2014-15: Second Prize in Linguistic Region „A‟ & „B‟.
Consolation Prize in Linguistic Region „C‟. In addition to this, the Bank has also
received awards under Bilingual House Journal category for its House Journal

Core Values

Our values determine our thoughts and actions. Values act as internal compass and
therefore provide direction. When common values are chosen and owned by an
Individual or a team, it creates a powerful emotional connect. Individuals/teams
following core values are dynamic and can achieve miraculous results.

As we grow, our processes and strategies may change, but our values should always
remain the same. Our core values should always be the framework within which we
make all of our decisions.

Bank of Baroda is practicing the following core values:

Customer centricity-Taking Ownership of Customer Service

The ownership of excellent customer service lies with each and every employee
irrespective of the role assigned. Bank has made it a practice of quick responsiveness as
far as customer needs are concerned. Bank of Baroda wants to create a new benchmark in
the dissemination of customer service, demonstrating care and concern that can catapult
the standard of our service to create better value for its customers. Inculcating the culture
of sales/ cross sales and providing personal service has made us a great differentiator in
the market.

This may be possible with Trust, Transparency and Togetherness

Bank of Baroda strongly believes in to augment the value of its stake holders i.e.
Customers, Employees, Shareholders and Regulators are in tune with these values. Bank
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keeps transparency in all dealings. It adopts collaborative approach, Encourage and
complements each other, Maintain Team spirit. Bank of Baroda wants to create an
environment that is friendly, warm and exciting. It encourages diversity in ideas, opinions
and points of view.

Many of the Bank‟s best ideas have been the direct result of informal interactions outside
of the office. Bank of Baroda is more than just a team, it is a family. Each one cares for
another and goes beyond.


Dream Big, Enjoy life and Work hard

These are the philosophy followed by all Barodians. Bank of Baroda stretch the goals
trusting potential lies in employees, work hard to achieve it and in the process, enjoyment
to maintain.

Every One is treated equally/ respecting each Role

Bank‟s belief is that every role in an organization is important and, therefore, every person
performing such role deserves dignity. It is expected that seniors in the Organization
should play the role of mentor in grooming young ones and young ones should exhibit due
respect to seniority and age. It is believed that every person wants opportunity to speak
their minds and have their ideas, opinions and feelings heard regardless of their gender,
age or hierarchy.


While celebrating individual and team successes, Bank does not treat others differently and
carries confidence, to believe that in the long run our character will speak for itself.

Observing Integrity and Honesty i.e. Walking the Talk and Talking the Walk

Bank believes in observing integrity at all times. Every Barodian is expected to honor
his/her words/ promises. Every Barodian is expected to be trustworthy and honest – in
words and actions.

Pursue growth and learning

It is important for employees to grow both personally and professionally. All Barodians
Endeavour to acquire new skill sets, develop leadership traits and make learning a part of
lifestyle to remain more agile in the work space.

Bank believes that every employee is endowed with immense potential than what the
employee himself/herself realizes. The goal is to help employees unlock this potential. But

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it has to be a joint effort: You have to be ready to face challenges, and stretch yourself in
order to overcome them.

The key human resources need to develop leadership qualities to build capacity to
outperform the competition.

Embrace and drive change

Bank is all time ready to embrace change. it is instilled deep insight that being in a growing
organization change is constant. Barodians embrace it enthusiastically and, perhaps even
more important, encourage and drive it.

Although change can and will come from all directions, it‟s important that most of the
changes in the Bank are driven from the bottom up – from the people who are on the
front lines, closer to the customers and/or issues.

Never accept or be too comfortable with the status quo, because the organizations that get
into trouble are historically the ones that aren‟t able to adapt to change and respond
quickly enough.

Creative and Open-Mind

Bank‟s approach to deal with situations and challenges with an open mind. Bank always
pursue to seek adventure and having fun exploring new possibilities. By having the
freedom to be creative in seeking solutions, individual involvement evolves and bind the
bank more stronger way.

Passion, Commitment, Competence and Determination of Barodians will surely take the
Bank to greater heights.



Indradhanush – A Mission launched by Govt. of India to revamp PSU banks

As per the brain child of P J Nayak committee, Ministry of Finance under the
Department of Financial Services has launched Mission Indradhanush that aimed to
revamp the functioning of public sector banks so that PSBs can compete with the Private
Sector Banks. The mission is regarded as one of the big steps after the nationalization of
banks in 1970s.

The mission includes the seven key reforms of appointments, which is also known as
A2G for PS Banks.

1) Appointments
2) Bank Board Bureau

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3) Capitalization
4) De-stressing PSBs
5) Empowerment
6) Framework of Accountability
7) Governance Reforms

P.J. Nayak committee on banking sector reforms

The Committee to Review Governance of Boards of Banks in India was constituted by

the RBI Governor on 20th January, 2014. The terms of reference of the committee
included review of the regulatory compliance requirement of the boards of banks, the
working of these boards, regulatory guidelines on bank ownership/concentration, and an
examination of board compensation guidelines.

Government Announces Banks Board Bureau to Advise PSBs

Taking the first step towards a holding company structure for public sector banks
(PSBs), the government has setup of a Bank‟s Board Bureau (BBB). It will recommend
appointment of directors in PSBs and advice on ways of raising funds and dealing with
issues of stressed assets. Former Comptroller & Auditor General of India Mr Vinod Rai
has been named the first chairman.

RBI Guidelines to Banks on Implementation of Ind AS

RBI has released guidelines for banks on complying with the new norms under
Companies (Indian Accounting Standards – Ind AS) Rules, 2015. Banks are required to
comply with Ind AS for financial statements for accounting periods beginning from April
1, 2018 onwards.

Fraud Reporting and Monitoring - Operationalisation of Central Fraud Registry

by RBI

During his Fourth Bi-monthly Monetary Policy Statement, 2014-15, Governor of RBI
announced, “Along with early detection mechanisms for frauds, a Central Fraud Registry
is also proposed to be created simultaneously as a searchable centralized database for
use by banks.”

Accordingly, RBI has operationalized the Central Fraud Registry – a searchable

centralized database for use by banks with effect from 20th January 2016. This is in line
with the various initiatives of RBI for early detection and minimization of loan related

Regulatory Support to Start Up India

RBI has come out with various policy changes and initiatives to promote the ease of
doing business and contribute to an eco-system conducive for growth of
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entrepreneurship, particularly in respect of the start-up enterprises. A majority of these
changes relate to cross border transactions aimed at addressing the funding concerns for
the startup companies.

Asset Quality Review (AQR) by RBI

RBI has begun the Asset Quality Review (AQR) process to ensure cleaning of books of
Indian Banks which have been reeling under the pressure of high level of stressed
assets. RBI has identified loans which were of concern along with those with potential

RBI Relaxes Norms to IFSC Banking Units (IBUs)

RBI while issuing guidelines relating to setting up of financial institutions in the

International Financial Services Centres (IFSC) restricted the IFSC Banking Units (IBUs)
from few activities which have been now reviewed. While the IBUs were not allowed to
open any current or savings accounts, now the regulator has decided that the IBUs can
open foreign currency current accounts of units operating in IFSCs and of non-resident
institutional investors to facilitate their investment transactions.

Norms for Financial Literacy Centers (FLCS) Revised

In view of the considerable progress made in the area of Financial Inclusion and to
concentrate the efforts of the FLCs on keeping the already opened accounts active, RBI
has issued revised guidelines for FLCs of lead banks and the operational guidelines for
the conduct of camps by FLCs and rural branches of banks.

Brick and Mortar Branches in Villages with Population more than 5000 without
a Bank Branch of SCB

The heads of SLBC convener banks have been asked by RBI to identify villages with
population above 5000 without a bank branch of a Scheduled Commercial Bank (SCB) in
their state. The villages thus identified may be allotted among SCBs (including Regional
Rural Banks) for opening of branches. It has been asked to complete the opening of
bank branches under this roadmap by March 31, 2017.

SEBI Releases a Concept Note on Green Bonds

Market regulator SEBI has released Consultation Paper on Issuance of Green Bonds. A
Green Bond is like any other bond where a debt instrument is issued by an entity for
raising funds from investors but what differentiates it from other bonds is that the
proceeds of a Green Bond offering are ear-marked for use towards financing „green‟

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Pradhan Mantri Fasal Bima Yojana:

Government of India has recently approved Pradhan Mantri Fasal Bima Yojana (PMFBY)
which would replace the existing schemes of National Agricultural Insurance Scheme
(NAIS) & Modified National Agricultural Insurance Scheme (MNAIS) from Kharif 2016.
PMFBY would be available to the farmers at very low rates of premium which would be
maximum upto 1.5% for Rabi and upto 2% for Kharif for Food crops, Pulses and
Oilseeds and upto 5% for Annual Horticulture/ Commercial Crops. This scheme would
provide insurance cover for all stages of the crop cycle including post-harvest risks in
specified instances.

Sovereign Gold Bond Scheme 2016

The Sovereign Gold Bond Scheme 2016 opened for subscription from 18th January to
22nd January 2016. The issuance of bonds for this second tranche of Sovereign Gold
Bonds happened in February 2016 where the bonds are issued by RBI on behalf of
Government of India. The bonds are sold through banks, SHCIL and designated post

National Investment and Infrastructure Fund (NIIF)

International pension funds and sovereign funds from countries such as Russia,
Singapore and UAE have evinced interest in participating in India‟s INR 40000 crore
NIIF. The NIIF is meant to fund development of infrastructure projects, including
reviving stalled ones.

RBI Announces Marginal Cost of Funds Methodology for Interest Rate on

Advances (MCLR):

RBI has finalized and released the guidelines under Marginal Cost of Funds Methodology
for Interest Rate on Advances. The new internal benchmark rate to which all rupee loans
sanctioned and credit limits renewed wef April 01, 2016 will be reference rate and has
been christened as Marginal Cost of Funds based Lending rate (MCLR). It has replaced
„Base Rate‟ and it is applicable to the internal benchmark for such purposes.

The MCLR shall comprise of:

a. Marginal cost of funds

b. Negative carry on account of CRR
c. Operating costs
d. Tenor premium

Financial Engineering:

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Financial engineering is about the development and creative application of financial
technology for solving financial problems, exploiting financial opportunities, and for
otherwise adding value. Some of trends and examples are E-Banking, Internet Banking,
Mobile & SMS Banking, ATM expansion, volumes of Debit & Credit Card, RTGS and NEFT.

Crowd funding

It is the practice of funding a project or venture by raising monetary contributions from

a large number of people, typically via the internet / social media. Usually Social /
Cultural projects and start-ups are using this informal source of finance. Crowd funding
is a form of alternative finance, which has emerged outside of the traditional financial

Peer-to-Peer (P2P) lending

The practices of lending money to individuals or businesses through online services that
match lenders directly with borrowers. i.e. Lending Club. It is an online investment
platform to enable borrowers to attract lenders and investors to identify and purchase
loans that meet their investment criteria

5 / 25 Scheme of Reserve Bank of India

Reserve Bank of India launched the 5/25 scheme (officially called the Flexible
Structuring of Long Term Project Loans to Infrastructure and Core Sector Industries) and
subsequently extended it to existing project loans in addition to new loans there may
have been a collective sigh of relief from bankers and corporate. The „5/25‟ moniker
summarily refers to the feature that the loan will be repaid over a maximum period of 25
years. However, the banks will have to refinance the loan every 5 year

Red Flagged Accounts

A bank can label an account a Red Flagged Account (RFA) if the loan account is under
suspicion of fraudulent activity and such a suspicion is thrown up by early warning signal
(EWS). Banks must use such triggers to launch a detailed investigation. All RFAs will
have to be reported to the Central Repository of Information on Large Credits (CRILC).

IBA Approach Paper on IT-Enabled Financial Inclusion: Financial Inclusion is the

delivery of financial services to all the people in a fair, transparent and equitable manner at
affordable cost. Financial Inclusion has the potential to improve the standards of life of the
poor and the disadvantaged. Financial services permit individuals and households to

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manage the risk and uncertainties to save risk free, borrow on better terms, to invest in a
business venture or property and to cope with unforeseen expenses.

IBA Sub-committee on Flow of Credit to Agriculture Sector: In the context of

predominance of agriculture as the largest employer of the country‟s population and the
financial exclusion as one of the crucial obstacles in ensuring equitable agricultural growth
of the nation, measures have been suggested to increase the flow of credit to agriculture
sector in general and especially to tenant farmers, agricultural laborers and share
croppers, and on Policy Support and State interventions that can facilitate enhanced Agri
Credit Flow minimizing Legal intervention encouraging contract farming and Tenant
Bandhan Bank Limited: (Inaugurated on 23 August 2015 in Kolkata)

Bandhan Bank Limited was incorporated on 23rd December 2014 as a wholly-owned

subsidiary of Bandhan Financial Holdings Limited. Bandhan received the in-principle
approval of the Reserve Bank of India (RBI) for setting up a universal bank in April 2014;
the banking regulator gave its final nod in June 2015. Incidentally, Kolkata-headquartered
Bandhan is the first bank set up in eastern part of India after Independence.

IDFC Bank Limited: The Reserve Bank of India granted a universal banking license to
IDFC Limited on July 23, 2015. IDFC Ltd. demerged on October 1, 2015, transferring all
assets and liabilities of its lending business (“Financing Undertaking”) to IDFC Bank
Limited. IDFC Bank Ltd. is a subsidiary of the IDFC Ltd., and was inaugurated on October
19, 2015 in New Delhi. It is head quartered in Mumbai.

Payments Bank: The RBI on 19.08.2015 granted „in principle‟ approval for payment
banks to 11 entities. Payments banks are new stripped-down type of banks, which are
expected to reach customers mainly through their mobile phones rather than traditional
bank branches. They can‟t offer loans but can raise deposits and pay interest on these
balances. They can enable transfers and remittances through a mobile phone.
No need of reporting fixed deposits in pre-existing accounts: The Indian
government has clarified that the implementation of the Foreign Account Tax Compliance
Act (FATCA) and Common Reporting Standards (CRS) will not entail reporting of all fixed
deposits and auto sweep facilities in pre-existing savings bank accounts. It is informed that
in such cases, no additional documentation is obtained for these fixed deposits accounts as
they are intrinsically related to existing saving bank account and all KYC documents are
available for the existing saving bank account, the Central Board of Direct Taxes said on
their website.

Foreign Account Tax Compliance Act: The provisions commonly known as the Foreign
Account Tax Compliance Act (FATCA) became law in March 2010.

FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts and focuses on

 By U.S. taxpayers about certain foreign financial accounts and offshore assets
 By foreign financial institutions about financial accounts held by U.S. taxpayers or
foreign entities in which U.S. taxpayers hold a substantial ownership interest

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 The objective of FATCA is the reporting of foreign financial assets; withholding is the
cost of not reporting.

Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions,

2016: The provisions of these Directions shall apply to every Scheduled Commercial Bank
{including Regional Rural Banks(RRBs)} licensed to operate in India by Reserve Bank of
India. These directions shall not be applicable to operations of foreign branches of Indian

Bulk Deposit:

1. Single Rupee term deposits of Rupees one crore and above for Scheduled
Commercial Banks other than Regional Rural banks
2. Single Rupee term deposits of Rupees fifteen lakhs and above for RRBs.

Master Direction - Know Your Customer (KYC) Direction, 2016: In terms of the
provisions of Prevention of Money-Laundering Act, 2002 and the Prevention of Money-
Laundering (Maintenance of Records) Rules, 2005, Regulated Entities (REs) are required to
follow customer identification procedure while undertaking a transaction either by
establishing an account based relationship or otherwise and monitor their transactions.

There shall be a Know Your Customer (KYC) policy duly approved by the Board of Directors
of REs (Regulated Entities) or any committee of the Board to which power has been
delegated. The KYC policy shall include following four key elements:

(a) Customer Acceptance Policy;

(b) Risk Management;
(c) Customer Identification Procedures (CIP); and
(d) Monitoring of Transactions

Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises
In order to provide a simpler and faster mechanism to address the stress in the accounts
of MSMEs and to facilitate the promotion and development of MSMEs, the Ministry of Micro,
Small and Medium Enterprises, Government of India, vide their Gazette Notification dated
May 29, 2015 had notified a „Framework for Revival and Rehabilitation of Micro, Small and
Medium Enterprises‟.

Thereafter, certain changes in the captioned framework have been carried out in order to
make it compatible with the existing regulatory guidelines on „Income Recognition, Asset
Classification and provisioning pertaining to Advances‟.

Accordingly, a revised Framework along with operating instructions has been furnished by
RBI on 17.03.2016 to operationalize the Framework by the banks (not later than June
30, 2016).

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Recovery of excess payments made to pensioners: The following uniform procedure
may be strictly adhered to while effecting recovery of excess/wrong pension payments
made to pensioners:

1. As soon as the excess/ wrong payment made to a pensioner comes to the notice of
the paying branch, the branch should adjust the same against the amount standing
to the credit of the pensioner‟s account to the extent possible including lump sum
arrears payment.
2. If the entire amount of over payment cannot be adjusted from the account, the
pensioner may be asked to pay forthwith the balance amount of over payment.
3. In case the pensioner expresses his inability to pay the amount, the same may be
adjusted from the future pension payments to be made to the pensioners. For
recovering the over-payment made to pensioner from his future pension payment in
installments 1/3rd of net (pension + relief) payable each month may be recovered
unless the pensioner concerned gives consent in writing to pay a higher installment
4. If the over payment cannot be recovered from the pensioner due to his death or
discontinuance of pension then action has to be taken as per the letter of
undertaking given by the pensioner under the scheme.
5. The pensioner may also be advised about the details of overpayment/ wrong
payment and mode of its recovery.


Regulatory Ratio at a Glance:

Bank Rate Policy

Section 49 defines it as “The Standard Rate at which it (the bank) is prepared to buy or
rediscount bills of exchange or other commercial paper eligible for purchase under this

By varying the bank rate, the RBI can to a certain extent regulate the commercial bank
credit and the general credit situation of the country. The impact of this tool has not
been very great because of the fact that the RBI does not have a mechanism to control
the unorganized sector. Further the money market in our financial system is not fully
developed, so that the Bank rate policy will have if desired impact on the financial
system. The present bank rate is 6.75%.

Statutory Liquidity Ratio (SLR)

According to Section 24 (2-a) of the Banking Regulation Act, every banking company in
India whether scheduled or non scheduled, is required to maintain in India in Cash,
Gold or unencumbered, approved securities an amount of which is not less than a
certain percentage of the total of its demand and time liabilities in India. This is known
as Statutory Liquidity Ratio (SLR). The ratio keeps on changing time to time. At present
SLR is 20.75% (w.e.f. 09.07.2016).

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The Reserve Bank is empowered to increase/ decrease this ratio. For calculating the
SLR, the following liquid assets are taken into account.

 Cash in hand in India.

 Balances in current account with the State Bank of India and its associates.
 Balance maintained with the RBI in excess of the minimum CRR requirements.
 Investments in Government Securities, Treasury Bills and other approved securities
in India.

However, the approved securities must be valued at a price not exceeding the current
market price.

Cash Reserve Ratio

Section 42 defines the Cash reserves of scheduled bank to be kept with RBI. Every
scheduled bank has to maintain with RBI an average daily balance the amount of which
shall not be less than 3% of the total demand and time liabilities and shall not exceed
15%. Presently the CRR is 4.00% (w.e.f. 09-02-2013).

Policy Repo Rate: Repo (Repurchase) rate also known as the benchmark interest rate
is the rate at which the RBI lends money to the banks for a short term. When the repo
rate increases, borrowing from RBI becomes more expensive. If RBI wants to make it
more expensive for the banks to borrow money, it increases the repo rate similarly, if it
wants to make it cheaper for banks to borrow money it reduces the repo rate.

Repo Rate 6.25% (w.e.f. 04.10.2016)

Reverse Repo Rate: Reverse Repo rate is the short term borrowing rate at which RBI
borrows money from banks. The Reserve bank uses this tool when it feels there is too
much money floating in the banking system. An increase in the reverse repo rate means
that the banks will get a higher rate of interest from RBI. As a result, banks prefer to
lend their money to RBI which is always safe instead of lending it others (people,
companies etc) which is always risky.

Reverse Repo Rate 5.75% (w.e.f. 04.10.2016)

Marginal Standing Facility Rate: MSF is a special window for banks to borrow from
RBI against approved government securities in an emergency situation like an acute
cash shortage. MSF rate is higher than Repo rate.

MSF Rate 6.75%

Indian Companies Act, 2013: After getting approval of both the houses of Parliament,
the long-awaited Companies Bill 2013 obtained the assent of the President of India on
29 August 2013 and became Companies Act, 2013 (2013 Act).

The 2013 Act has introduced several new concepts and has also tried to streamline
many of the requirements by introducing new definitions. The changes in the 2013 Act

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have far-reaching implications that are set to significantly change the manner in which
corporate operate in India.

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Credit Information Bureau (India) Limited – (CIBIL)

1.Credit Information Bureau (I) Ltd was set-up in January 2001, as a joint venture.
2. 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 non-individuals such as partnership
firms, proprietary concerns, private and public limited companies, etc.
3. CIBIL is established with a primary purpose of information sharing between Banks and
Financial Institutions for curbing the undesired growth of NPA.
4. 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
6. Banks, FIs, SFCs, NBFCs, Housing Finance Companies and Credit Card Companies are
Members of CIBIL
7. CIBIL- Access to consumer credit information:

Branches will get data of existing standard Home Loan borrowers who have approached
other Banks for Home Loan, Personal Loan Auto Loan, Education Loan, Business Loan,
Property Loan, Over Draft and Commercial Vehicle. In case of NPA Home Loan borrowers
Branches will get information on enquires with other Banks for all type of loans.

Know Your Customer (KYC) Guidelines

The objective of KYC/AML/CFT guidelines is to prevent banks from being used, intentionally
or unintentionally, by criminal elements for money laundering or terrorist activities. KYC
procedures also enable banks to know/understand their customers and their financial
dealings better which in turn help them manage their risks prudently.

Key elements of KYC Policy:

 Customer Acceptance Policy

 Customer Identification Procedures
 Monitoring of Transactions
 Risk Management
 Customer Acceptance Policy

Must ensure that explicit guidelines are in place on the following aspects of customer
relationship in the bank:

No account is opened in anonymous or fictitious/benami name Customer are categorized

as low, medium and high risk based on clearly defined parameters Required documents
and other information must be collected relating to different types of customers in line with
the perceived risk. Necessary checks before opening a new account profile for each new
customer based on risk categorization.

(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

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cards, Income Tax PAN card, Aadhaar 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.

 Employment details such as job specifications, name and address of the employer,
length of service etc.
 Provide details about source of income and annual income.
 Details of assets owned such as house, vehicle etc.

Finance ministry has recognized the ―Aadhar number issued by UIDAI as an officially valid
document to satisfy the KYC norms for opening of accounts. Recently, bank has also issued
a circular that at the time of opening of accounts the requirement of introduction may be

Bank has introduced a new menu option FINDCUST for identification of multiple customer
IDs for limination and merger to single customer ID (UCIC)

Acceptance of e-KYC as a Valid Process for KYC Verification

Bank has decided to accept e-KYC service launched by UIDAI as a valid process for KYC
verification in consultation with Unique Identification Authority of India (UIDAI). The
information authenticated and transferred by UIDAI containing demographic details and
photograph as a result of e-KYC process shall be treated as sufficient proof of Identify and
Address of the client.

Unincorporated Associations or body of individuals

(HO: BR: 107: 70 dated 12th May 2015)

Bank has shortlisted the list of documents to collectively establish the legal existence of
Unincorporated Associations or body of individual‟s i.e. unregistered entities (e.g.
partnership firms, trusts, foundations etc.) while opening of accounts, as below:

 Certificate/ license issued by the municipal authorities under Shop & Establishment
 CST / VAT certificates
 Certificate / registration document issued by Sales Tax / Service Tax / Professional
Tax authorities
 License issued by Professional bodies established under any statute/ Registering
authorities, like certificate of Practice issued by Indian Institute of Chartered
Accountants of India, Institute of Cost Accountants of India, Institute of Company
Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, etc.
 The complete Income Tax return (not just the acknowledgement) in the name of the
Firm where the Firm‟s income is reflected, duly Authenticated/ Acknowledged by the
Income Tax Authorities.
 Utility bills such as electricity, water, and landline telephone bills in the name of the

RBOs/ Branches are to obtain any one of the above documents to collectively
establish the legal existence of such unregistered entities while opening of
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accounts of such entities to comply with the extant guidelines of the RBI.

Obligation of Banks under PMLA 2002- "Beneficial Owner" - Declaration Form

(HO:BR:107: 83, dated June 17. 2015)

As per extant guidelines of Reserve Bank of India, the Bank is required to identify and
maintain the details of the “Beneficial Owner" in all Non- Individual Accounts (other than
Proprietorship). Branches are, therefore, to obtain a common Declaration form of the
"Beneficial Owner" from the prospective customers while establishing the relationship:

 To attach the declaration form for “Beneficial Owners" to each account opening form
for opening of new accounts for Non-Individuals
 Ensure obtaining the details of "Beneficial Owner" mandatorily in declaration form
duly filled in by the prospective customers.
 While forwarding the account opening form to respective RBO, retain a copy of the
account opening form of Non- Individuals customers within the branch.
 After activation of the newly opened accounts through RBO, enrich the 'Beneficial
Owner' details in the related fields through menu ACM function 'M' option 'A' under
Relation Code field by selecting "BO-Beneficial Owner" from the list in the CBS
 For all existing Non- Individual accounts In the branch, mandatorily obtain the
details of "Beneficial Owner" from the customers and fill up the same in CBS through
menu ACM function 'M' option 'A' under Relation Code field by selecting "BO-
Beneficial Owner" from the list.

As per Bank's Customer Acceptance Policy (CAP), branches should undertake reasonable
measures to identify the beneficial owner(s) and verify his/her/their identity.

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.To prevent, combat and control money laundering.
2. To confiscate and seize the property obtained from the laundered money.
3. To deal with any other issue connected with money laundering in India.

There are three independent steps or stages in Money Laundering -- Placement, Layering
and Integration

A) Placement - physical disposal of bulk cash proceeds derived from illegal activity
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 years and shall also liable to fine, which may extend to Rs.5

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Vide HO:BR:107:33 dated 10/02/2015, revised policy on KYC/AML/PMLA policy Norms for
furnishing proof of address have been relaxed to allow submitting only one documentary
proof of address ( either current or permanent) while opening a Bank account or while
undergoing periodic updation. In case the proof of address where the customer is
currently residing , the bank may take a declaration of the local address. No proof is
required to be submitted for such address for correspondence/ local address.

Amendment to Prevention of Money Laundering (Maintenance of Records) Rules,

2013 (Revised list of KYC Documents In CBS system)
(HO: BR: 107: 101, dated 24th July 2015)

In view of the change in the definition of 'Officially Valid Documents', RBI had made it clear
that only the documents mentioned in the PML Rules would be accepted by the branches
while opening any new account. Bank would not have the discretion to accept any other
document for this purpose.

Citizen„s Charter
Citizen Charter gives the customers„ right as well as their demands on service from the
bank. Citizen„s charter covers the following:

1. Business hours to be prominently displayed at the branches.

2. Counters to remain attended to during business hours.
3. Space for customers in banking hall to be kept clean and tidy with proper seating
4. Branch premises to be kept clean and hygienic.
5. Time norms for common Banking transactions to be displayed prominently in the
Banking Hall.
6. At large branches ―May I Help You‖ – counters to be located for customer„s
7. Commencement of working hours of Bank staff to be 15 minutes before commencement
of Banking hours.
8. Bank„s name board to be clean and visible with suitable lighting arrangements.
9. Branch authority„s name and designation to be displayed on Name Plate.
10. Name, address, telephone number and fax numbers of Regional and Zonal Authorities
to be displayed in Banking Hall.
11. Customer„s Suggestions to be invited for better customer services.

Banking OMBUDSMAN Scheme:

1. 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
2. The Ombudsman has the authority to look into the complaint in the following areas;

 Any complaint relating to Banking services.

 Refer the complaint to concerned bank and try to facilitate redressal or settlement
by agreement between the bank and aggrieved party.
 If complaint is not settled by agreement within the period of one month, pass an

28 | P a g e
award after listening to both the parties.
 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.
 Any dispute between banks or bank and its constituents may be referred to for
arbitration provided disputed claim does not exceed Rs.10.00 lakhs.
 The time limit for award is fixed at six months from the date of first hearing.

3. For approaching to OMBUDSMAN for banking complaints following are the conditions

o Bank has rejected the complaint and/or no reply within one month.
o A period of 1 year has not elapsed after bank had rejected the representation.
o It is not subject matter already settled by Ombudsman.
o It is not pending with any court.

4. All Commercial banks, RRBs and Schedule Primary Cooperative Banks are covered.
5. The appeal against the Award can be filed within 30 days to the Appellate Authority

Consumer Protection Act (COPRA) 1986

1. 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 March2003, the consumer day.
2. The act covers, all goods services including banking, insurance, transportation,
electricity, processing etc.
3. Any consumer individually or jointly, consumer organization can file complaint within -2-
years from the date of cause of action preferably within 3 months.
4. Legal heirs/ can continue as complaints of unfair trade practice or restrictive trade
practices against service provider and charging of prices for the goods in excess of the
prices displayed.
5. 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
6. A person availing services for commercial purpose will not be a consumer under the act.


 The Consumer Protection Bill, 2015, has since been introduced in Lok Sabha on August
10, 2015 by the Minister of Consumer Affairs, Food and Public Distribution, Mr. Ram
Vilas Paswan.
 The Bill will replace the Consumer Protection Act, 1986.

Banking code and Standards Boards of India (BCSBI):

A comprehensive Banker„s 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
29 | P a g e
customers on day-to-day basis on banking operations.
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 objectives –
1.Promote good and fair banking practices by setting minimum standards,
2. Increase transparency
3. To encourage financial institutions to achieve higher operating standards,
4. Promote cordial and fair relationship between bank and customer,
5. Bring confidence in the banking system,

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 bank„s dues in case of a NPA-account.

The Act deals with following aspects:

1. Enforcement of Security Interest by secured creditor without the intervention of Court.

The action under SARFAESI Act can be initiated for both moveable assets eg.
Vehicles, Plant & Machinery, stocks, etc. as well as ‗immovable properties except
agricultural land.
2. Transfer of non- performing assets to asset reconstruction company, the specialized
agencies created under this act, on sale on cash or SR basis, which will then resolve those
assets either by disposal/ recovery or by reconstruction and realize the proceeds.
3. To provide a legal framework for Securitization of assets.
4. It also gives an option for the Bank to take over the management of the unit and to
appoint a manager to run the unit for recovering the NPA.

Grievance Redressal Policy of our Bank:

Aim / Objective
This policy document aims at minimizing instances of customer complaints and grievances
through proper service delivery and review mechanism and to ensure prompt redressal of
customer complaints and grievances. The review mechanism helps in identifying
shortcomings in product features and service delivery. The bank„s policy on grievance
redressal follows the under noted principles.
 Customers be treated fairly at all times
 Complaints raised by customers are dealt with courtesy and on time
 Customers are fully informed of avenues to escalate their complaints/grievances within
the organization and their rights to alternative remedy, if they are not fully satisfied
with the response of the bank to their complaints.
 Bank will treat all complaints efficiently and fairly as they can damage the
bank„s reputation and business if handled otherwise.
 The bank employees must work in good faith and without prejudice to the interests of
the customer.

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In order to make bank„s redressal mechanism more meaningful and effective, a structured
system has been built up towards such end. This system ensures that the redressal sought
is just and fair within the given frame-work of rules and regulation. The policy document
would be made available at all branches. All the employees of the Bank will be made aware
about the Complaint handling process

The customer complaint arises due to:
A. The attitudinal aspects in dealing with customers
B. Inadequacy of the functions/arrangements made available to the customers or gaps in
standards of services expected and actual services rendered.

Standardized Public grievance redresses System (SPGRS)

In order to bring in customer centricity in banking services and to improve the image of
banks for providing expeditious, redress of grievances to bank customers, ministry of
finance has advised all public sector banks to develop a SPGRS.
As advised by ministry of finance, Govt. of India, our bank has implemented a
standardized public Grievance redress system (SPGRS), an online complaint lodgment
facility for the customers/noncustomers w.e.f. 11/01/2013. An icon for online complaint
registration has been provided on bank„s home page:

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SWEEP 25000/- (FOR 15-45 DAYS) On 25000/- (FOR 15-91 DAYS)
request branch can increase sweep out On request branch can increase
amount in multiple of Rs.25,000/- sweep out amount in multiple of
Threshold Limit NA Rs.5,00,000/- ( Only when Account Rs.5,00,000/- ( Only when
Balance reaches Rs.5,25,000/-) (On Account Balance reaches
request the branch can increase the Rs.5,25,000/-) (On request the
threshold limit in multiple of branch can increase the
Rs.1,000/-. threshold limit in multiple of
Transaction day for Sweep Weekly, Sweep will be Weekly, Sweep will be carried out Weekly, Sweep will be carried
out carried out every Monday every Monday (at the end of the day) out every Monday (at the end
(at the end of the day) of the day)
MINIMUM BAL QAB (M/U) 15000/- QAB 75000/- QAB 250000/-
(SU/R) 2000/-
CHARGES 600/- + ST QAB-1000/- +ST

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CONCESSION ON No concession 50% concession 100% concession
DEPOSIT UPTO 25000/- 50000/- PER DAY UPTO 100000/- PER DAY
(*Inter SOL cash payments WITHDRAWL UPTO First two cash withdrawals of any First three cash withdrawals of
to third parties is totally 25000/- PER DAY amount during a calendar month are any amount during a calendar
withdrawn free and thereafter for each cash month are free and there after
*Per transaction limit of ` withdrawal in excess of Rs. 25000/ per for each cash withdrawal in
50000 /- is fixed for cash account in that calendar month, excess Rs.25000/ per account in
withdrawal by drawer by service charge will be of Rs. 2/- per that calendar month , service
self cheque at Non Base thousand or part thereof. charge will be @ Rs. 2/- per
CBS branches irrespective thousand or part thereof
of nature of accounts)
BASE BRANCH Above that Rs 10 per 10 per packet that Rs 10 per packet
IMMEDIATE CREDIT OF UPTO 20000/- UPTO 50000/- UPTO 150000/-
OCC (*T & C)

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/- (FOR 181 DAYS) On 1000/- (FOR 180
request branch can DAYS)
increase sweep out amount
in multiple of Rs.10,000/-
Sweep will be carried out
every Monday (at the end
of the day)
THRESHOLD NA Rs.50,000/- (First Sweep NA Rs.10,000/- Rs.3,000/-
LIMIT out for Rs.10,000/- will
happen when account
balance reaches
Rs.60,000/- (Br. Can
increase threshold limit in
multiple of Rs.1,000/-
MINIMUM BAL QAB (M/U) QAB 20000/- QAB 15000/- QAB-10000/- 3000/- ON DAILY
1000/- (SU/R) BASIS (A/C MAY
WITH Rs 5/-)
(SU/R) 50/- + OF QAB-750/- + ST
MAXIMUM 100000 FOR 100000 FOR MINOR (10- 100000 FOR 100000 FOR MINOR (10-14 NO LIMIT
BALANCE MINOR (10-14 14 YRS) MINOR (10-14 YRS)

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IMMEDIATE UPTO 15000/- UPTO 25000/- UPTO 25000/- UPTO 25000/- UPTO 25000/-
(*T & C)

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SALARY 5000/-
MIN. BALANCE 100/- + ST/
5000/- ABOVE
LIMIT 5000/- (FOR
180 DAYS)
INTEREST 4% P.A. 4% P.A. 4% P.A. 4% P.A. 4% P.A.

37 | P a g e
(*T & C)
FACILITY HAVE OPTION TO (SUBJECT TO 90% OF 5000/- subject to, 4-
GET OD NET TAKE HOME times of avg monthly
FACILITY SALARY) balance or 50% of
AGAINST FDR IN *THIRD PARTY credit summation of 6-
SB A/C. GUARANTEE months or Rs 5000/-
MINIMUM AMT *ROI-BR+5.50% whichever is lower
OF FDR 10000/- *A/C TO BE IN
LIMIT 8000/- MAX
100000/-), ROI
FDR RATE+1.00%,

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TRADERS, TRUST, OF 100/-) (7-14 DAYS FOR Maturity/withdra
BANKS, AMT 15 LAC & wal)
INCOME cum TRADERS, TRUST, OF 100/-) MONTHS compunded
TAX) 150000/- AS

39 | P a g e
T upto 10000/-
UPTO Rs 5 lacs
ABOVE 10000
+1.00% OVER

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DEPOSIT SCHEME ABOVE 10 YR), OF 1000/-) days, Senior
CLUB, MAXIMUM- Citizen: 112
SOCIETIES LESS THAN Rs 1 Months & 1 day
- 2004 Defence MAXIMUM Rs BY 3 YRS) BY RBI, (WITH
personnel 15 LAC Presently @ PENALTY
(Excluding 8.60% fpr FY )
civilian 2016-17,
employees) compounded
irrespective of quarterly

42 | P a g e
SCHEME - 1968


lacs & RUN
10000 PER
@ +1.00%

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Govt Deposit
Public Provident Fund 1968 Scheme

Eligibility: Any adult in his / her name or in minor's name in the capacity of guardian of
the minor. HUF and NRIs cannot open PPF account. Online subscription facility
Existing customers having PPF account with Bank of Baroda can deposit online in PPF
account from Bank of Baroda savings account.
Minimum amount: Rs. 500/- per annum is required to be deposited. The accounts in
which deposits are not made for any reason are treated as discontinued accounts and such
accounts cannot be closed before maturity. The discontinued account can be activated by
payment of the minimum deposit of Rs.500/- with default fee of Rs.50/- for each defaulted
Maximum amount: Rs. 1.5 Lacs per annum The depositor has flexibility and freedom for
depositing any amount in a maximum of 12 installments in a financial year.
Maturity period: 15 years. An Account, on the expiry of fifteen years, can be extended
for a further period of five years at a time.
Interest Rate: The interest is paid as per the rates declared by the Government from
time to time. The interest for the month is calculated on the minimum balance available in
the account from 5th of a month to the last date of the month.
Withdrawal facility: A depositor can make partial withdrawals, once every year from his
PPF account after expiry of five years, from the end of Financial Year, in which the initial
deposit was made. The amount of withdrawal is restricted to 50% of the credit balance at
the end of the fourth year immediately preceding the year of withdrawal or the year
immediately preceding the year of withdrawal, whichever is lower.
Premature Encashment: Premature closure of a PPF Account is not permissible except in
the case of death of the depositor.

Senior Citizens Savings Scheme 2004

Tenure of the scheme: 5 years, this can be extended by 3 more years;
Rate of interest: The rate of interest for every financial year will be notified by RBI. Rate
of interest remains unchanged for the entire duration of the investment till maturity
irrespective of the revision in subsequent years.
Frequency of computing interest: Quarterly

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Investment to be in multiples of: Rs. 1000/-
Maximum investment limit: Rs. 15 lakh
Minimum eligible age for investment: 60 years (55 years for those who have retired on
superannuation or under a voluntary or special voluntary scheme). The retired personnel of
Defence Services (excluding Civilian Defence Employees) shall be eligible to invest
irrespective of the age limits subject to the fulfilment of other specified conditions
Premature withdrawal facility :Available after one year of holding but with penalty
Applicability to NRI, PIO and HUFs: Non resident Indians, Persons of Indian Origin and
Hindu Undivided Family are not eligible to open an account under the scheme.

Sukanya Samriddhi Account (SSA)

Eligibility: A Natural/ Legal Guardian can open account in the name of the girl child from
the birth of the girl child till she attains the age of ten years.
Minimum amount: Rs. 1000/- per annum is required to be deposited.
Maximum amount: Rs. 1.5 Lacs can be deposited in a financial year. The amount can be
deposited in multiples of hundred on a single occasion or on multiple occasions but should
not exceed the maximum limit.
Maturity period: The account shall mature on completion of 21 years.
Income Tax benefit: Deposits under „Sukanya Samriddhi Account‟ scheme are eligible for
Income tax deduction under 80C of Income-tax Act, 1961.
Interest Rate: The interest is paid as per the rate declared by Government of India from
time to time.
Other features: Partial withdrawal, maximum up to 50% of balance standing at the end
of the preceding financial year can be taken after Account holder‟s attaining age of 18
years to meet the financial requirements of the account holder for the purpose of higher
education and marriage.
If account is not closed after maturity, balance will continue to earn interest as specified
for the scheme from time to time. Normal premature closure will be allowed after
completion of 18 years of age of account holder, provided that girl is married. No Penalty
to be imposed on premature closure of an SSA in following cases:
1. Death of Beneficiary Account Holder.
2. The Account Holder becoming a Non-citizen or Non-resident of India. I
3. On grounds of medical support in life threatening diseases of I the
Account Holder and death of the guardian

Government of India 8% Savings Bonds 2003 (Taxable)

45 | P a g e
Key Benefits
 Bonds can be issued to resident Indian, in individual or joint names/on behalf of a
minor as father/mother/legal guardian, Hindu Undivided Family, Charitable
Institution and University.
 Bonds bear interest @ 8% p.a. No interest would accrue after the maturity of Bonds.
 Bonds (Non-Cumulative) -Interest will be payable at half yearly intervals up to 31st
July and 31st January by crediting holder's a/cs or issuing cheque.
 The bond shall be repayable on the expiry of -6- years from the date of the issue.
 These Bonds are non-transferable.
 Investment can be made with minimum Rs.1000/- and in multiple thereof with no
maximum limit.

Collection of Central/State Taxes

Bank of Baroda, provides the facility of collection of various types of direct taxes viz.
Corporate Tax, Income Tax, Hotel Tax, Wealth Tax, Gift Tax, & Expenditure Tax, through
its network

Collection of Indirect Taxes (CBEC)

Bank of Baroda provides the facility of collection of various types of Indirect taxes viz.
Excise duty, Customs & Service Tax through its network of select branches in the States of
Gujarat, Rajasthan, Maharashtra (Mumbai), Delhi, Haryana, & Western UP. The Custom
duties are collected by branches in Gujarat State only

Collection of State Sales/Professional Taxes (ST/PT)

The facility of collection of State Sales Tax/Professional Tax through its select branches, in
the States of Gujarat, Maharashtra, Uttar Pradesh, Delhi & W. Bengal.

Treasury/Sub-Treasury business
Bank of Baroda undertakes State Governments Treasury-sub-treasury business at its
select branches, in the States of Gujarat, Rajasthan, Chhattisgarh and Tamil Nadu.
Bank of Baroda is authorized to undertake e-stamping business in 8 States and provides
the facility of generation of e-stamps through its designated branches. It is a secured way
of paying non-judicial stamp duty to State Govt. Present system of physical stamp paper is

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being replaced by e-stamps gradually by the State Governments. It prevents paper and
process related fraudulent practices.


Bank of Baroda is authorized by Department of Industrial Policy and Promotion (DIPP) as

one of the accredited Bank for collection of fees/ charges through e-Biz Portal.
There are two modes of collection of e-Biz receipts:
1. Offline Mode – By any of our branch across India
2. Online Mode – Customer using their net banking facility can pay through online
Fee pertaining to the services like, Industrial License, Industries Entrepreneur
Memorandum, and Employer Registration Service etc. can be done through e-Biz

Atal Pension Yojana (APY)

Atal Pension Yojana is a Social Security Scheme introduced by Govt. of India, aimed at
providing a steady stream of income after the age of 60 to all citizens of India. It is based
on National Pension Scheme (NPS) frame work. Permanent Retirement Account Number
(PRAN) will be provided to the subscriber immediately by the Branch.
Under APY the subscribers have a choice to get Fixed monthly Pension amount from Rs.
1000/-, Rs.2000/-, Rs. 3000/-, Rs. 4000/- and Rs. 5000/- by paying monthly subscription
as per the table
Individuals between the age of 18 to 40 can visit our nearest Branch with ID proof,
Address Proof and Age Proof to fill the form for registration under the scheme. Saving Bank
account is mandatory for subscribing under the scheme.

ASBA (Applications Supported by Blocked Amount)

It is a supplementary process of applying in initial public offers (IPO), right issues and
follow on public offers (FPO) made through book building route and co-exists with the
current process of using cheque as a mode of payment and submitting applications.
ASBA means "Application Supported by Blocked Amount", enables investors to apply for
IPOs / FPOs and rights issues without making a payment. Instead, the amount is blocked
in investors' own account and only an amount proportionate to the shares allotted goes out
when allotment is finalized.

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"Baroda Health" (Mediclaim Insurance Policy)
It is a Medical Insurance Scheme, available only to account holders of our Bank, which
takes care of the hospitalization expenses incurred by the customer up to the amount of
sum insured, in respect of the following eventualities that required the minimum
hospitalization for 24 hours
 Any illness / disease
 Accidental injury and/ or any ailment.
 Any surgery that is required in respect of any disease or accident that has arisen
during the policy period
Salient features:
 Very low premium
 Health insurance cover is available to family of -4- (self, spouse and 2 dependent
children) up to the amount insured without any additional premium.
 Premium paid is eligible for Income Tax exemption under Section 80 D as per
Income Tax Rules.
 Medical examination required for commencement of health cover.
 Pre-existing diseases also get coverage after 3 continuous claim-free policy years
 Upper age limit of primary member (first named person) is allowed up to 80 years, if
insurance cover availed before completion of 65 years.
 The scheme is administered through Third Party Administrators (TPAs) for
settlement of Hospitalization Claims under the insurance cover.

Standalone Health Insurance – Our Bank has recently sign MOU with Two
Corporate Agenies i.e. M/s Max Bupa Health Insurance Company Limited and M/s
Star Health and Allied Insurance Company Limited

48 | P a g e

Some Recent Initiatives by the bank

New Products / Services

 Chillr app
 Express Lobbies (Includes Cash Recycler, ATM, Self Service Passbook
 Launch of Loyalty program for Debit Card Customers – Baroda Rewardz
 Master Card Platinum Chip Debit Card (enhanced transaction limits )
 Master Card Classic Chip Debit Card
 Baroda Flash n Move+ (VISA) Contactless Debit Card
 Card to Card Fund Transfer through ATM
 Cheque book request through ATM
 Baroda e-trade now available on mobile devices (Android and ios)
through mobile app

New Customer Oriented functionalities in our Digital Banking products

Baroda Connect (Retail)

­ Online Self Registration by Customer by using Debit Card and

Registered Mobile Number
­ Online Retrieval of USERID
Online resetting of Transaction Password

­ Mobile OTP – Generation of OTP on Smart Phone

­ Password now being sent in Activated Mode
Self mapping of new passbook in Self Service Passbook Printer

USSD Direct Access Code to minimise the steps involved in USSD based mobile transaction
e.g. for mini statement *99*48*2#

 Baroda M-Connect – Instant Registration through Branch and

 24X7 Debit Card Hotlisting and Webchat services through Contact
 Debit Card Blocking through SMS
 Bank has launched its presence on social media platforms viz;
Facebook and Twitter

Simplification / Changes in processes

 Branch retail customer relationship management (CRM) for 360° view of

the customer (through BRCRM option in Finacle). Following details of
customer will be available on the user screen -
­ Accounts

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­ Transaction analysis
­ Customer Analytics
­ Personal details
­ Organization
­ Address/phone
­ Relationship
 Issuance of NPDC (Non-Personalised Debit Card) discontinued w.e.f.
 Migration of ECS Outward Services from RECS to NACH platform
 New Menu options such as DCISS (Debit card reissuance, regeneration of
PIN, multiple account linking / delinking and card blocking) DCARDBLK
(For f\blocking of Debit card through branch), new portal of BOBCARDS for
Debit Card CRM (complaint resolution module)

Cash Recycler Machines (Cash Deposit + ATM Functions)

Salient functionalities available in Cash Recyclers are as follows

Cash Deposit with Card Transaction

 Daily transaction limit for account without PAN (Permanent Account Number)
registered in CBS is Rs. 49,900/-. There is no restriction on number of transactions
of cash deposit till daily limit of Rs. 49,900/- is reached. This limit also includes the
cash deposited over the counter at the branches.
 Daily transaction limit with PAN registered in CBS is Rs. 2,00,000/- without any
restriction on number of transactions. This limit also includes the cash deposited
over the counter at the branches.‟

Cash Deposit without Card Transaction

Cash Recycler machine facilitates customer to deposit the Cash in Savings / Current / Cash
Credit / Overdraft account by giving the account number (Card-less Transaction), where
per transaction & per day limit is of Rs. 20,000/- subject to daily transaction limit without
PAN (Permanent Account Number) registered in CBS of Rs. 49,900/-.

Cash Withdrawal

This facility is exactly like ATM operations and available with Debit / ATM Card only. The
Cash Recycler dispenses cash deposited by customers using Cash Acceptor facility.

 Other Bank customers having Debit / ATM Card can also use Cash Recycler for Cash
Withdrawal only.
 Maximum cash withdrawal limit per transaction for our Customer is Rs. 15000/-,
however per day Cash withdrawal limit is as per the variant of Debit Card.

Multi Function Kiosk (MFK)

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Benefit to customers

Multiple facilities available on a single machine

Cheque deposit beyond the branch timings

Lesser time spent in the cheque clearing process as the data will be directly
uploaded to CTS server from the machine itself.

Benefit to Bank

 Reduced branch visits of customers

Machine utilization is increased as one machine provides the facilities that were
earlier provided through multiple machines

Automation of the process of depositing a cheque Cheque clearing process is
automated, no need of manual data entry at branch level

Self Service Passbook Printer (SSPBP) – Introduction of new feature for “Self
mapping of subsequent passbook”

To improve customer convenience and to reduce workload of staff to map subsequent

passbooks, “Self mapping of subsequent passbook” feature is now enabled in SSPBP.
Details of this facility are as under:
1. Customer is issued the first SSPBP passbook from the branch counters after mapping
the passbook serial number with account number by branch staff (no change in current
2. Thereafter, customer prints passbook using Self Service Passbook Kiosks. On
completion of the passbook, system prompts customer to collect fresh passbook from
branch for continuation. System will provide 45 seconds to insert new passbook for
auto mapping.
3. If customer inserts new blank passbook within 45 seconds, system automatically maps
the serial number of the blank passbook with customer‟s account and deactivates the
old passbook.
4. If customer is not able to insert the blank passbook within 45 seconds (primarily when
he/she has to collect blank passbook from branch) then the system returns to home
screen. In that case, for mapping of subsequent passbook, customer is required to first
insert the old passbook. System will prompt him/her to insert the new blank passbook
and machine completes the mapping.

Contact Centre

Bank has established Two Contact Centres at Baroda and Lucknow.

Contact Centre Numbers
 Toll Free Number 1800 22 33 44 or 1800 102 44 55 from anywhere in the
 The dedicated toll free number for providing contact centre services for Financial
Inclusion / Pradhan Mantri Jan Dhan Yojana (PMJDY) customers is 1800 102 77

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Availability of Contact Centre Services:
Services through IVR by using TPIN Round the Clock

Services through Agent

 Hotlisting of Debit Card Round the Clock

 Web-chat facility Round the Clock

 All other services except others 6 a.m. to 10 p.m.

Services Provided
1. Through Agents
 Account Enquiry of linked Accounts
­ Balance Enquiry
­ Statement
­ Transaction Status
 Cheque Services in operative Accounts
­ Stop Payment
­ Status Enquiry
­ Cheque Book request
 Debit Card Services
­ Clocking of Card
­ Request for regeneration of PIN
­ Request for reissuance of Debit Card
­ Complaint of Debit Card Failed transaction
 Baroda Connect
­ Help Desk
­ Activation of Password
­ Regeneration of password
­ Complaint on failed transaction
 Mobile Banking
­ General Queries
­ Resend link / PIN

 General Enquiry
­ Products & Services
­ Branch & ATM Location
­ Interest Rate and Forex rates
­ Lead creation
­ Wealth Management Product

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2. Through IVR (Interactive Voice Response)
 Account Information –Transaction details, Statement through e-mail
 Cheque Related Service – Cheque Status, Stop payment of cheque, Cheque book
 Change TPIN
 Loan and Deposit Account Services – Loan account inquiry, Loan account statement
request, Deposit account inquiry
 General Information Menu – Deposit & Retail Loan ROI, Forex rates, Branch/ ATM

3. Through web-chat
­ This service is only for general queries and any information which requires disclosure
of any personal / account information is not provided through this service.
­ Presently this service is available in English only.

Missed Call facility for ―Balance Inquiry

Customers, who have registered their mobile number, can get balance of their accounts by
just giving a missed call from their registered mobile number to get Balance Enquiry on
8468001111 & Mini Statement on 8468001122. The existing mobile number
09223011311 has been discontinued w.e.f. 30.09.2016

Salient features of the facility are as under:-

 This facility is available 24X7.
 Balances of account under Saving, Current, Cash Credit and Overdraft
schemes are provided through this facility.
 Customer may have more than one account with same mobile number. In that
Case SMS of maximum length of 320 characters (2 SMSs) will be sent to
customers. For remaining accounts, customer can avail the ―SMS Banking
Services or our ―Contact Centre services.
 Customer can use this facility maximum ―5 times in a day, system will not
respond thereafter.
 domestic
This service is available only for resident accounts i.e. accounts with
number only. In other words, customer with overseas country code /mobile
number will not be sent any SMS.
 Customers do not have to pay any charges as the call would be disconnected
after a ring and customer would get the balance via SMS

SMS Banking

A SMS to be sent from their registered mobile number to 5616150 or 9176612303.

Services oferred are
­ Balance Enquiry
­ Mini Statement
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­ Cheque Status
 Customer has to send a SMS text as under
o For Balance enquiry - BAL <space> last 4 digit of account number
o For Mini statement - MINI <space> last 4 digit of account number
- CHEQ <space> last 4 digit of a/c no
o For Cheque status <space>
cheque no
- 12 digit aadhar number <space> last 4 digit
o For Aadhar seeding of
a/c no

SMS alert Charges: Looking to cost involved in sending SMS alerts to Customers, Bank
has decided to recover following charges from customers w.e.f. 01.10.2016 –
Saving Bank accounts : Rs. 15/-+ Taxes per quarter
Current/CC/OD accounts : Rs. 25/-+ Taxes per quarter

The amount would be deducted at the beginning of the quarter

Debit Cards

a) Launch of MasterCard Platinum Chip Debit Card

1. Higher limits of Cash Withdrawal up to Rs 50,000/- per day from ATM and
Purchases up to Rs 1,00,000/- per day at POS/e-commerce merchants wherever
Master Cards are accepted in India and Abroad.
2. Validity of card is Five years from the month of issuance.
3. Maximum number of ATM cash withdrawals allowed per day is 10.
4. Secured with PIN and CVV2 for online transactions.
5. Ready for international usage on millions of MasterCard ATMs/Terminals.
6. Targeted for HNI, overseas travelers and privileged customers.

Launch of Baroda Flash N Move+ Contactless Debit Card

Bank has launched Baroda Flash n Move+ Contactless Debit Card in co-ordination with
VISA. The card is based on Near Field Communication (NFC) technology where in the debit
card need not to be dipped or swiped at the POS. Instead, the cardholder simply taps the
card over special POS terminals (enabled for accepting contactless cards) for making
purchases at POS.

Key features of the card are as follows:

 It is a Platinum variant of Visa debit card with higher limits of ATM Cash Withdrawal
and POS/e-commerce transactions.
 Can be used for domestic as well as international transactions
 Same Card can be used for making payment through both Contactless modes (by
tapping/bringing the card near to POS terminal within a radius up to 4 cms) or
Contact based mode (either by swiping the card through Magnetic Stripe or dipping
the Card through Chip).
 Can be used at ATMs to withdraw Cash or avail any other value added service.
 Make online purchases through Internet.
 For convenient shopping, travelling, dining out at many locations wherever
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contactless debit cards are accepted
 As per RBI guidelines, Contactless transaction up to a maximum of Rs 2000/- can be
done without PIN at POS. If amount is more than Rs 2000/-, Customer has to
mandatorily enter the PIN. However, Customer also has choice of using PIN on
purchase at POS for an amount less than Rs 2000/- by opting for Contact based

Card limits:
Maximum per day limit Rs 1,00,000
Maximum per transaction limit on our ATM Rs 15,000
Maximum per transaction limit on other Bank‟s ATM Rs 10,000
Maximum no of cash withdrawals allowed per day 10

Maximum per day limits at POS (Inclusive of NFC & e-commerce transactions): Rs
Maximum per transaction limit using Contactless mode: Rs 2,000
Total Count of purchases at POS in a day using: Contactless mode (NFC i.e. Near Field
Communication): 5

Due to limited availability of contactless enabled POS terminals in India, presently Flash N
Move+ is being launched in 3 Regions of Greater Mumbai Zone viz MMSR,MMCR and

a) Discontinuation of magnetic stripe only debit cards

 RBI has advised to discontinue the issuance of magnetic stripe only debit cards,
from 1st February 2016, except debit cards issued under government schemes.
 In view of compliance, branches are to discontinue the issuance of Non Personalized
Debit Card lying unused in the branches.
 Further, bank is in the process of introducing Chip Based Non Personalized Debit
Card as replacement of Magnetic Stripe Non Personalized Debit Card.

Summary of Debit Card variants effective from 01/02/2016

Name Acceptance Per day limit at ATM Per day limit at POS

Visa Electron Domestic only Rs 25,000/ Rs 50,000/

MasterCard Classic Domestic only Rs 25,000/ Rs 50,000/
RuPay Classic Domestic only Rs 25,000/ Rs 50,000/
Name Acceptance Per day limit at ATM Per day limit at POS

Visa Platinum Domestic & Rs 1,00,000/- Rs 2,00,000/-


MasterCard Domestic & Rs 50,000/- Rs 1,00,000/-


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RuPay Platinum Domestic & Rs 50,000/- Rs 1,00,000/-
Name Acceptance Per day limit at ATM Per day limit at POS

RuPay PMJDY Domestic only Rs 25,000/- Rs 50,000/-

RuPay BKCC Domestic only Rs 25,000/- Rs 50,000/-
RuPay MUDRA Domestic only Rs 5,000/- Rs 5,000/-

b) Launching of Baroda MUDRA Card

Bank has launched Baroda Mudra Card in pursuit to offer better banking facilities to
borrowers who avail Working Capital facilities under Pradhan Mantri MUDRA Yojana
(PMMY). The card is envisaged to meet the requirements of MUDRA customers to use
alternate delivery channels like ATMs for cash withdrawal and also POS usage.

At present the Card can be used at ATM and POS only with a provision for allowing Online
purchases to be considered at a later date. This will ensure availability of funds 24x7 to
borrowers any time as per their needs, without visiting the branches.

Profile of Baroda MUDRA Card:

­ Baroda MUDRA Card is exclusively for PMMY borrowers enjoying Working Capital
limits under all three segments of PMMY viz. SHISHU, KITSHORE, TARUN.
­ The card is RuPay enabled and is linked to PMMY/ CC/OD accounts to be used at our
Bank's ATM network and NFS member ATMs in India.
­ Card can also be used at selected RuPay enabled POS outlets (as identified by
­ This card is EMV chip card which can be operated through PIN at ATMs and POS.
­ Card can be issued to PMMY customers, on request, who will be availing Working
­ Capital facilities.
­ Withdrawal through Baroda MUDRA Card is restricted up to Drawing Power within
the overall operating limit as per the extant guidelines applicable under PMMY
­ Further, withdrawal through Baroda MUDRA Card is restricted up to Rs.5000/- per
day with maximum 4 number of withdrawal from our Bank's ATM and from other
Bank's ATM and for purchases up to Rs.5000/- per day at POS. (subject to balance
available in the account).

c) NEFT Funds Transfer through ATM

­ This facility will be available on Bank of Baroda ATM„s.

­ One time registration is required at branch for registration of Beneficiary
account and IFSC code.
­ The Registration Facility is provided in CBS through menu option ―BENRATM.
­ A Customer can register maximum -2- beneficiaries per day and altogether
­ maximum -99- beneficiaries can be registered with a single debit card.
­ The minimum amount for NEFT through ATM is Re.1/-, maximum
amount is Rs. 50,000/- per transaction and Rs. 2,00,000/- per day
­ There is no limit for number of transactions in a day (subject to the maximum
cap of Rs 2,00,000).
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­ NEFT fund transfer after the prescribed cut off time will be processed on the next
working day. Suitable communication screen about timing will be displayed to the

d) Usage of ATMs- Rationalisation of number of free transactions on other

Bank‟s ATMS.
Number of mandatory free ATM transactions for savings bank account customers at
other banks„ ATMs is reduced from the present five to three transactions per month
(inclusive of both financial and non-financial transactions) for transactions done at
the ATMs located in the six metro centres, viz. Mumbai, New Delhi, Chennai,
Kolkata, Bengaluru and Hyderabad.
Except the six metros mentioned above there will be five free transactions per
month (financial or non-financial) at all other centres for Savings Bank customers,
as existing.
There is no restriction for using our bank ATM by our customers upto permissible
number of transactions as per card variant
The charges that shall be levied to the Savings Bank Account Customer after
permissible free transactions on other Banks„ ATMs are as under:
a) Rs 20/- plus service tax per transaction for Financial Transaction.
b) Rs.10/- plus service tax per transaction for Non Financial Transaction.
For current/ Overdraft account holder: Rs 20/- plus Service Tax for every Financial
transaction and Rs.10/- plus service tax per transaction for Non Financial
No transactions are free for these account holders for usage of Debit Card on other
Banks„ ATMs.

e) Issuance of RuPay PMJDY Debit Card to Minors

­ Accounts opened under Financial Inclusion Scheme: Minors above the age of 10
years opening Savings Bank Account under Financial Inclusion Scheme in his
individual name with operational instruction as ―Self‖(not through father & natural
guardian) can be issued a RuPay PMJDY debit card.
Accounts opened in Scheme other than Financial Inclusion Scheme:
Existing criteria of 15 years of age and above remains unchanged for issuance
of debit card (any variant) to Minors maintaining Saving Bank Account in his
individual name with operational instruction as ―Self (not through father &
natural guardian).

f) Debit card Hotlisting/Blocking

The different options for hot listing of debit cards are

­ Cardholder calls at Bank‟s Contact Centre at 1800 22 33 44/ 1800 102 44 55 and
gets the card blocked. This facility is available round the clock.
­ Cardholder calls at BOBCARDS Toll Free No. 1800 220 400 for card blocking. This
facility is available 24 x 7.
­ Through Branch by using menu “DCARDBLK” has been provided in CBS/Finacle to
block the debit card
­ by the cardholder himself by sending an SMS in a certain prescribed format from
registered mobile to <5616150>
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An SMS alert will be sent as a token of confirmation to the Debit card holder on their
registered mobile number, whenever a debit card is hot listed/blocked.

g) Debit Card Dispute Management System

BOBCARDS has introduced new portal for branches and contact centers. New portal shall
be used for following activities:
1. Lodging the debit card related complaints for the failed/fraud transactions.
2. Viewing the status of card/ PIN processed and dispatch.


A new menu in CBS/Finacle “DCISS” has been developed/ implemented for various card
related activities as under:-

i. Debit Card Re-issuance

ii. PIN Regeneration
iii. Multiple A/c Linking or De-linking
iv. Card De-blocking
­ Four eye principal/ Maker & Checker has been implemented for all these 4 activities.
Hence branches have to immediately verify the entries.
­ Multiple Account linking/ de-linking and Card de-blocking through DCISS will not be
instant. It will happen only after the request is processed by BOBCARDS within 1
working day.

i) Baroda Rewardz - Bank‟s Loyalty Program

In order to increase the usage of our various ADC products, bank has embarked upon
implementing a comprehensive loyalty program - Baroda Rewardz. This loyalty program
will cover Debit Cards, Mobile Banking, Internet banking, Mobile wallet and other digital
products launched from time to time.

As a first program under Baroda Rewardz, bank has launched the loyalty program for our
debit card customer‟s wef 03rd December 2015. This program is aimed at encouraging our
customers for usage of debit card on POS and e-commerce transactions for all debit card
variants. The program detail is as follows:

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j) Card to Card Fund Transfer
 This facility is an inter / intra bank fund transfer facility using NFS ATM network.
 The fund is transferred instantly on a 24X7 basis including holidays.
 The service is chargable at Rs.10/- + taxes per transaction
 Fund Transfer limit is Rs.5000/- per transaction and Rs.25000/- per month

Credit Cards

Some of the type of credit cards being oferred by our Subsidiary BOBCARDS Ltd :
 BOBCARD Signature (Visa)
 BOBCARD Platinum (Visa, Master & Assure)
 BOBCARD Titanium (Master)
 BOBCARD Bombay Bullion (Visa)
 BOBCARD Assure (VISA ) (Against FDR; Credit limit = 80% of FD amount ; Cash
withdrawal Limit: 80% of Credit Limit)

Baroda Gift card

­ Baroda Gift Card is a prepaid ―VERIFIED BY VISA enabled pre funded card that
opens a distinct proposition to individuals and corporates with its instant
availability, ease of handling, longer shelf life and extended shopping options for
the beneficiary.
­ Card can be loaded with any amount between Rs 500 to Rs 50,000 in multiple of Rs
­ Cardholder can check balance & transaction history online through the URL – or by calling at
customer care Toll free number -18001025627- or through ATM using the PIN
number provided along with the Gift card
­ Not reloadable-once the balance is exhausted or the card expires, card
becomes a souvenir
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­ No ATM usage permitted
­ Can be used only in India
­ Card is valid till 1 year from the date of purchase or expiry date printed on the card
whichever is earlier
­ Residual balance claim will be entertained only if balance amount is equal to or
more than Rs. 100/- and claim is lodged within 3 months of card expiry.
­ Across counter availability
­ Competitively priced (almost best in the market)
­ Can be purchased by any customer through Baroda connect with an additional
postage fee irrespective of card availability at his base branch

Baroda Travel easy card

­ Issued in US Dollar, EURO, GBP, AUD and SGD

­ Minimum load value - USD $200 /EURO €150/ GBP £150/ AUD 150 /SGD 150
­ Maximum load value - as per FEMA guidelines based on the purpose of visit
­ Activation within 24 hours of the card purchase
­ Minimise risk of carrying cash or travelers' cheque during foreign trips
­ Fees/charges lower than charges levied on domestic debit/credit cards when used
­ abroad
­ Cards are valid for -3- years from the date of activation or the date printed on card,
­ whichever is earlier. In this period, the card can be reloaded any number of times.
­ Cardholder will have access to 24x7 Customer care team as well as secured
­ online portal for viewing their card balance and transaction details.
­ Centralised accounting, reconciliation and customer support by Operations team,
­ based at Transaction Banking Department, in collaboration with the service
­ provider
­ KYC, AML/CFT requirements are as per prevailing Reserve Bank of India
­ guidelines
­ Card cannot be used in India, Nepal and Bhutan.
­ The cards are available for issuance from all the „B‟ category branches

Baroda Connect

a. 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.
­ Fund transfer and NEFT can be scheduled for a future date.
­ 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 bank.
­ 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.
­ Application Supported by Blocked Amount (ASBA) facility
­ School Fee options

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­ Bill payment option
­ Facility of IMPS for instant Inter/Intra Bank fund transfer through Baroda Connect
­ (This facility is available only to mobile banking customers) .
­ Online Fixed Deposit opening facility
­ Online RD account opening facility (Standing Instruction is MANDATORY and is
automatically noted)
­ Online Gift card request facility
­ Aadhar number linking with operative accounts
­ Our customers can link their PPF account (Maintained in our Bank) with their
existing Bank account through Baroda connect facility. Once linked, they can also
credit fund in the PPF Account through Baroda connect.
­ Online payment of India First Life Insurance Policy premium payment

b. Special Services offered to Corporate 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.

c. Limit for transactions

Retail customers can have maximum -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.

(Amt. in Rs.)
Financial Transaction Limit for Financial Transaction Limit for
Retail Customers Corporate Customers

Self Third Online Self Third Online

linked party/Sh NEFT/ linked party/Sh NEFT/
A/c opping RTGS fund opping RTGS
payment transfer payment
Per Unlimited 2,00,000 5,00,000 Unlimited 5,00,000 10,00,000
Daily limit Unlimited 4,00,000 10,00,000 Unlimited 15,00,000 50,00,000
Weekly limit Unlimited 12,00,000 30,00,000 Unlimited 45,00,000 2,00,00,000
Monthly limit Unlimited 30,00,000 50,00,000 Unlimited 1,00,00,000 5,00,00,000
Yearly limit Unlimited 1,50,00,000 4,00,00,000 Unlimited 6,00,00,000 30,00,00,000

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d. IMPS for instant Inter/Intra Bank fund transfer through Baroda Connect

­ IMPS (Immediate Payment Service) to facilitate instant Inter/ Intra Bank fund
transfer for our Baroda m- Connect users on 24 x 7 basis. This facility will be
available only to Retail users, having mobile banking facility. Funds can be
transferred within India by debit to any available operative account in the net
banking account
­ This facility can be availed by users having Transaction right and who have
registered themselves for our Mobile Banking Services (M-Connect) giving
mobile Number registered with Baroda Connect facility.
­ IMPS fund transfer through MMID: Both remitter and beneficiary are required
to be mobile banking registered customers of their respective banks and need to
have MMID (Mobile Money Identifier) mapped to mobile number. MMID is a
unique -7- digits number which is provided to the customers as part of mobile
banking service Under this option, user can transfer funds to the beneficiary
account by keying in Mobile No. and MMID (Mobile Money Identifier) of the
beneficiary. User can select the desired account number to be debited from the
drop down. This facility can be availed for transfer of funds to Bank of Baroda
account holders also.
­ IMPS fund transfer through IFSC: In this mode of funds transfer, the remitter is
required to be mobile banking customer. However, the beneficiary need not be
mobile banking customer and can specify only the IFS code and Account no. User
can transfer funds by giving IFS code and account number of the beneficiary. User
can select the desired account number to be debited from the drop down. This
facility can be availed for transfer of funds to Bank of Baroda account holders also.
­ One time beneficiary registration with beneficiary MMID / Beneficiary IFSC is
­ Only -2- beneficiaries can be registered in a day and fund can be remitted after
Four hours of registration.
­ Details of the IMPS transactions and its„ status for any date can be viewed
through Status Inquiry.

e. Digital signature based Authentication facility in Baroda connect for

corporate users:
In order to provide personalized security feature for our Baroda connect corporate users
and also as mandate by RBI, our IT team has built infrastructure for extending the option
of ―Digital signature certificate (DSC) based authentication‖ facility to our corporate

f. Mobile OTP Application (M-OTP)

 In compliance with regulatory guidelines, as also to enhance security features of
Baroda Connect, two factor authentications were implemented in our Net Banking
Portal since June, 2012. Authentication by way of OTP through SMS is one part of
security process, which is triggered by the system to validate the user/other
credentials, if the system suspects unusual activity/ behavior or non-registered PC.
 To obviate the issue of delivery of SMS, our IT team has enabled OTP application
on mobile handset supporting Apple, Android, Windows and blackberry.
 Activation of this application will involve two steps as under:
 Downloading of Mobile OTP application “ARCOT OTP” on handsets

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Users are required to download the application from respective app stores.
However this requires subsequent activation through their Net banking portals.
 Activation of Mobile OTP
Users can themselves activate M-OTP facility through Baroda Connect. After
logging-in, users are required to click “Mobile OTP Application” link under
“Services” tab at home page.
 Key features of this new functionality are as follows:
­ This will help the users to manually generate the OTP on their mobile handset
without using GPRS/internet service.
­ Generation of manual OTP will be protected by PIN set by the user.
­ If User wishes to deactivate this facility, then the same can be done by clicking on
the 'Mobile OTP deactivation' link in the “services” Tab of Baroda Connect and will
start receiving the OTP by SMS on registered mobile number.
­ It will enable all the users to get the OTP generated within the time frame, without
any delay.
­ This functionality will be specifically beneficial to NRIs/ Customers frequently
visiting overseas, facing issue of OTP over SMS.

g. Self Registration Process for „Baroda Connect‟ - Retail Users

In order to provide customers self driven interface for availing internet banking facility
and to reduce turnaround time, bank has introduced „Self Registration of Baroda
Connect‟ for „Retail Customer‟, whereby authentication is done through his/her „Debit
Card number and Pin‟.

Pre-requisites for using this facility are:

­ User should be customer of any domestic Branch with valid BANK OF BARODA debit
card and PIN.
­ User should have mode of operation as – SELF, EITHER OR SURVIVOR, ANY ONE OR
­ User should have valid mobile number registered with bank.
­ Should have high speed internet connection.
­ Debit Card should have been activated at ATM (for first time).

h. Online resetting of Transaction Password By retail users

­ The customer can reset his password anytime if he has a valid Debit card in
Active Mode.
­ The link isprovided on retail user home page
­ On entering valid details an OTO will be sent on customers Registered Mobile

a. Online resetting of Transaction Password By retail users

­ Customers has to enter details like Account number, Registered Mobile Number
(RMN) and email ID
­ After verification of Credentials an OTP is sent to Customer‟s RMN
­ After authentication of OTP system would senf USER ID to registered email ID.

b. Discontinuing request for Activation of Baroda Connect Passwords

In order to reduce turnaround time and increase customer convenience, the passwords
will be sent to the branches in activated mode. The concept of activation of password
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using HDCR/REGPW menu will no longer exist with effect from passwords printed on and
after 20th August 2015. The branches will be able to hand over the passwords to the
customer for immediate use.

Mobile Banking:

 Our bank offers ―Baroda M Connect, the mobile banking facility to its customers.
 Customer can also link -5- more accounts held in the Bank and transact business on
them. Much beyond banking, customer will also be able to do transactions like bills
payment, recharging the mobile phones, NEFT fund transfer, IMPS fund transfer etc.
 Mobile Banking services can be performed through a software or by dialing *99#
 Customers can start using Baroda M-Connect facility in three simple steps:
1. Registration either through ATM or through Base Branch or through Baroda
2. Downloading of an Application Software for M-Connect or dialing *99#
3. Activation of M-Connect (creating login pw & changing mPIN for software
based service or changing mPIN only for NUUP service)

a. Baroda M-Connect –New Application

This new application has following major advantages:

1. Modern look of the application is appealing and thus, would encourage the users to
regularly use the system.
2. Customer is not required to pay SMS charges on every login. In Android / iOS /
Windows phones, new app works on GPRS mode. It is mandatory to activate Mobile
internet (GPRS) while using M Connect.
In case of Java phone users, there are options of running the application on GPRS or
SMS mode. In the later case, the customer would continue to pay for the SMS
generated by the application.
3. Icon based menu would make the application language agnostic.
4. For mobile recharge, the improved search string option, provided to locate mobile
operator, reduces the current hassle of multiple entry by the customer.

 Account Balance Enquiry
 Account Mini-Statement with color coded debit and credit transactions
 Fund transfer within Bank / Other Bank using NEFT
 Fund transfer to other Banks using Immediate Payment Services (IMPS)
 Mobile Recharge with auto saving of beneficiary name at first recharge. Mobile
operator search option is simplified for a hassle free recharge.

b. Baroda M-Connect facility to all New Customers

There are -3- menus in Finacle to open an account viz. OACC, HOPNACCT and SAO. Of
these options, branches are using predominantly HOPNACCT and SAO menu. To
encourage and register all new customers for mobile banking these menus have now
been updated with following changes –

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1. HOPNACCT Menu: In „Mobile Banking‟ field, default option in drop down menu is set
as „YES‟ i.e. customer will be provided mobile banking service.
2. SAO Menu: In „Mobile Banking‟ field (presently shown as „Mobile Subscription‟),
default flag is set as „YES‟, where customer would be automatically enrolled for M
3. OACC Menu: Provision is being made to prompt the verifying officer to enable
customers for M-Connect.

In our account opening form, there is an option for the customer to choose for mobile
banking services. Branches are advised to inform the customer about advantages of
mobile banking and encourage all new customers to tick the option for Baroda M-
In case customer does not want to register for the service, then the branch is to select
„NO‟ option for mobile banking while opening account in Finacle using any of three

If the registration is already completed through branch and at a later date, customer
wants to de-register the mobile banking services, then the branch can de-register the
customer through HDCR menu.

c. Baroda M-Connect – Instant Registration through Branch and


To gear up the registrations under M-connect, bank has made 2 improvements in the
current M-Connect registration process viz., „instant registration / de registration / mPIN
generation in Finacle' and 'interoperability between all M-Connect registration channels
(Branch-ATM-Net Banking)'

Instant registration
Like ATM and Net Banking, Branch channel is also live, where there is no need to wait for
24 hrs to register / de register / generate mPIN through Finacle menus. M-Connect for
newly opened accounts:-

 Mobile banking registration option will appear automatically on HOPNACCT, OAAC and
SAO menus which are used to open a new account
 Default option for Mobile Banking registration will be „YES‟ in these menus
 When the account is opened, customer is also registered for Mobile banking and the
password (mPIN) is generated at the same time (instantly)

With this, new customers can be on boarded instantly and can also be activated. Main
advantage of this implementation is, as mPIN will be delivered instantly, customers can
be provided handholding by branch staff to activate the mobile banking in branch itself.
M-Connect for existing accounts:-
 FINACLE menu for Mobile banking is HDCR
 Now, with automation of the menu, Mobile banking registration / de registration /
mPIN generation will be effective immediately, within no time
 As soon as the checker verifies the registration / de registration / mPIN generation
request, customer will receive the corresponding message / mPIN immediately.
 Now there is no waiting period of 24 hrs

Branch can now regenerate mPIN of any customer who walks in with a problem regarding
his / her mPIN, and the problem can be resolved without any waiting time.

There are 3 modes of M Connect registration, viz., ATM, Branch and Net banking. Now all
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these 3 channels are interoperable and mPIN generation / de registration can be done
through any of the three channels irrespective of the channel of registration.

d. Direct Access Code in USSD Mobile Banking

 USSD stands for Unstructured Supplementary Service Data

 To increase the convenience of the users, a new update has been brought in
USSD Mobile Banking, wherein customers can dial multi mode codes (direct
access codes) to access different menus.
 Login- Main menu of Bank of Baroda Mobile Banking- *99*48# („48‟ is short code
for Bank of Baroda)
 Direct action Menu options are as under:

 Salient features are, no need to internet/ GPRS connections to access Mobile

Banking through USSD and no need of Smart phones, works even on low end

e. Transaction limit –
 There are 3 modes of IMPS fund transfer as mentioned below:
Sr. No. Mode NAME Beneficiary
1 P2A Person to IFSC Code and
Account A/c No.
2 P2P Person to Person Mobile No. and
3 P2U Person to UID Aadhar No.

 There are three channel of fund transfer and transaction limit is under:
 1. Interenet Banking: Per transaction & Per day Rs.2,00,000/-
 2. Branches (Fincale): Per transaction & Per day Rs.2,00,000/-
 3. Mobile : Per transaction Rs.25,000/- & Per day Rs.50,000/-
(BCC:BR:108:445 dt. 19.09.2016 & BCC:BR:108:214 dt. 16.05.2016)

 Through National Unified USSD Platform (NUUP)

Per Transaction Rs.5,000
Per Day Rs.5,000
Per Week Rs.20,000
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Per Month Rs.50,000
No. of txn per day 5

f. Launching of “Chillr Mobile App”

 Chillr is a smartphone application that enables easy, secure and immediate transfer
of money between its registered users. Users can transfer funds to other Chillr users
and also request money from them. It uses the Immediate payment services (IMPS)
of NPCI as backbone to transfer funds immediately.
 To start using Chillr, customer's bank account must have mobile banking activated
with IMPS facility. User will require his/her Bank of Baroda Mobile banking MPIN to
transact using this appplication. After registration, Chillr application is directly linked
to the Bank account where the customers' Mobile no. is registered and Mobile
banking is activated.

 Main Features of the product are as under:

­ Customers can send money through Chillr mobile app to both partner and non-
partner bank customers. Currently our Bank and HDFC bank are partner banks.
Non-partner bank customers can only receive funds.
­ Only the mobile number of the beneficiary in the remitter's phonebook is needed.
­ Application enables customers to send money to any registered Chillr user on phone
­ contact list.
­ Scenarios where the application can be used:
­ Person to person (P2P) money transfer
­ Split bills amongst friends
­ Check account balance
­ View transaction history
­ Request money from friend
­ Pay at stores & to online merchants through Near Me.
­ Mobile recharge and bill payment (will be launched shortly)
­ At one time, only one instance of the Chillr Application related to a particular mobile
no. and device no. can be used.
­ The IMEI device no. will be stored by Chillr. No passwords are stored on the phone
­ Transactions cannot be made without mPIN which is assigned through Bank.

 The minimum amount that can transferred is Rs. 10. The maximum amount that can
 transferred is Rs. 1000 per transaction to other Bank customers. The daily limit is
set at Rs. 5000

 The app is now available on iOS, Windows and Android mobile platform.
 Utilities bill payment in all three platform is available

g. Baroda M-passbook
• App is available in both Hindi and English Languages
• Transaction and account details stored on the mobile arranged in the chronological
order for all the accounts linked to the registered mobile number with the Bank.
• Customer can set his MPIN after OTP verification

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• Customer can select the period of months for which the data can be stored in the
• Search transaction history by transaction date, transaction amount
• Personalise / add remarks of choice to the transactions, which can be used to
track the transactions on later date.

­ Presently this facility is enabled for Savings and Current account holders and the
App is made available in Android platform.
­ To avail this service, customer is required to download the app from the Google
play store and install the same.

Baroda e-payment Gateway

Internet Payment Gateway (IPG) is a 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.
Internet Payment Gateway is essential for retailers, who have an online presence and are
interested in selling their products over Internet. IPG is safe & ensures encryption of
sensitive card information during secured transmission between customer, merchant and
payment processors.

• Operations team has been 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 bank„s 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 home/office.

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• Round the clock, hassle free service. Create a tech savvy image for merchant.


 Fast and emerging market in India, so branches should generate max. leads.
 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 Demat Services

Presently, there are only two depositories functioning in India and they are:-

i. National Securities Depository Limited (NSDL)

ii. Central Depository Services (India) Limited (CDSL).

Financial Institutions, banks, custodians and stockbrokers complying with the requirements
prescribed by Securities & Exchange Board of India (SEBI) can be registered as a
Depository Participant (DP).

For trading in the equity market in India we need to have a demat account.

Benefits which encourage us to have a demat account:

1. We can buy and sell shares and stock of any company listed on the stock exchange
of India i.e. NSE and BSE
2. Make on line investment in mutual fund.
3. Apply in IPO
4. Trade in Futures and Options
5. No threat of loss of shares due to faulty/bogus/forged delivery.
6. Dividend and issuance of bonus shares are directly credited into linked accounts and
demat accounts respectively.
7. No share transfer fees or stamp duty.
8. Application can be made vide facility of ASBA (Application Supported by Blocked
Amount) wherein amount does not get debited into the account and is remitted only
when shares are allotted.

A DP ("Depository Participant") is an agent of the Depository (NSDL or CDSL) who is

authorized to offer depository services to investors. Thus to open a Demat account of an
investor, a bank or its branch has to get registered as a DP of a depository i.e. NSDL or
CDSL or both. Bank of Baroda is a DP of both the depository i.e. CDSL and NSDL.

An individual is eligible to have only one Basic Services Demat Account (BSDA)

Individuals shall be eligible to opt for BSDA subject to the following conditions –
a. All individuals who have or propose to have only one demat account where they are
the sole or first holder.
b. Individuals having any other demat account/s where they are not the first holder shall
be eligible for BSDA in respect of the single demat account where they are sole or
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first holder
c. The individual shall have only one BSDA in his/her name across all depositories.
d. Value of securities held in the demat account shall not exceed Rupees Two Lakhs at
any point of time.

Bank of Baroda Online Trading (OLT)

Our bank has launched ―Baroda e-trade an on-line trading facility in July 2012 in
association with BOBCAPS Ltd. our subsidiary. OLT is the state-of-the-art on-line securities
trading platform for the Bank„s customers. The on-line trading platform
‗Baroda e-trade„ is powered by a robust trading engine coupled with a comprehensive
suite of products and services. Since it comes with an in-built configuration with proactive
approach towards customer service, we aim to provide a constantly delightful trading
experience to our customers through this product.
Any customer or non-customer, who wants to avail of OLT would be required to have/open
the following 3 accounts.
 Bank account, i.e., Savings Bank/Current Account with any of the branches of the
 Demat account with any of the Depository designated branches of the Bank, and
 Trading Account with BOBCAPS LTD.

Salient Features:

 Seamless (3-in-1) trading experience (Savings bank/current, Demat and online

trading accounts) Savings bank/current and Demat accounts with Bank of Baroda
and trading (OLT/Broking) account with BOBCAPS ltd.
 Account opening form for trading account, to be submitted to Demat designated
branches for onward submission to BOBCAPS LTD.
 Instant fund/share transfer facility through lien marking.
 Multiple market watch facility with streaming quotes( Live markets rates)
 Customization of screen to show critical market information such as market depth,
Most active scripts, Top Gainers/Losers.
 Works with low internet bandwidth.
 Customers could review their margin status, Holding report, order and trade Book
on a real time basis.
 Single window order entry with instant order confirmation.
 128-bit encryption security certified by entrust SSL.
 Telephonic assistance through centralized Helpdesk Telephone No.022-61389300
(9am to 5pm).

Baroda e-trade – Upgraded new Online Trading Platform

BOBCAPS has come out with a new online trading platform (upgraded Baroda e-trade
portal) with much convenient user interface. This will help our bank in marketing this
product, which in turn will give us CASA float and fee income. This product will give long
term benefit as well as customer acquisition/retention.

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The mobile application (Mobile App) Barodaetrade can be downloaded from the
Google play store for android mobile phones and the same can also be accessed using the
chrome browser on android and apple mobile phones.
There are NIL stamp charges for opening the demat account while Rs 500/- is the franking
charges for e-trade account.

15 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:-
Data Centre
1. Central Operational Hub (COH)
2. 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 Internet.

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

Recent Developments in Digital Space

a. Social Media Policy for Employees

Bank has launched its presence on social media platforms viz; Facebook and Twitter
today. The presence on other social media platforms shall be done subsequently.
The presence on social media platforms also warrants Bank to put in place a
comprehensive social media strategy and policy framework to ensure consistent, reliable
content creation, data governance and regulatory compliance. The above policy shall be
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applicable to employees, contractors and vendors.
Having clear guidelines regarding use of social media would be beneficial for the Bank
and shall provide an understanding on how to use social media for achieving business

b. Bharat Bill Payment System (BBPS)

 RBI, in November 2015, granted an in-principle approval to NPCI to be the Bharat
Bill Payment Central Unit under BBPS
 RBI had received applications banks and non-bank entities for operating as
Operating Units
 BBPS is an integrated bill payment system which will offer interoperable bill
payment service to customers online as well as through a network of agents on
the ground.
 The scope of BBPS will cover repetitive payments for everyday utility services such
as electricity, water, gas, telephone and Direct-to-Home (DTH). Gradually, the scope
would be expanded to include other types of repetitive payments, like school /
university fees, municipal taxes etc.

c. Trade Receivables Discounting System (TReDS)

Three entities (NSE&SIDBI, Axis Bank Ltd and Mynd Solutions Pvt Ltd) have been
granted In-principle Approval from RBI in Novemeber 2015
 The TReDS will facilitate the discounting of both invoices as well as bills of
 Objective:
 Improving flow of funds to MSME sector by reducing the receivables realisation
 Greater discipline on corporates to pay their dues on time
 Conceptual Understanding
TReDS would involve the following
 Uploading of invoices/bills and creation of factoring units by the MSME sellers
 Its acceptance by the corporate and other buyers, including the Government
Departments and PSUs, within a specified time limit
 Discounting, rating and re-discounting of factoring units
 Sending of notifications at each stage to the relevant parties to the transaction
 reporting and MIS requirements
 Generation and submission of settlement of obligations
Reverse factoring: the buyer could also create factoring units based on the documents
uploaded by the MSME seller

d. In-Principle Approval to 11 payment Banks

 In line with the Nachiket Mor Committee (2014) recommendation regarding
Differentiated Banks RBI has granted “in-principle” approval to 11 applicants
to set up payments banks
 Those who have received approval include
 Ecommerce company - Pay TM
 Four Major Telecom Companies – Vodafone, Airtel, Idea and Reliance
 Two Technology companies – Tech Mahindra and Fino pyatech
 Two Financial Services Companies – NSDL and Cholamandalam
 Postal Department
 Sun Pharma
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 Objective: To further financial inclusion
 Scope of activities :
 Acceptance of demand deposits restricted to a maximum balance of Rs. 100,000
per individual customer.
 Issuance of ATM/debit cards.
 Payments and remittance services through various channels.
 BC of another bank, subject to the Reserve Bank guidelines on BCs.
 Distribution of non-risk sharing simple financial products like mutual fund units and
insurance products, etc.
 Restrictions
 Payments banks, however, cannot issue credit cards.
 The payments bank cannot undertake lending activities.
 They will be required to invest minimum 75 per cent of its "demand deposit
balances" in Statutory Liquidity Ratio(SLR)
 They will have to hold a maximum 25 per cent in Current A/c / Term Deposit A/c
with other scheduled commercial banks for operational purposes and liquidity

e. eBiz – India‟s G2B Portal

 Our bank is one of the accredited bank and branches are suthorised to accept
challans pertaining to eBiz portal
 eBiz is one of the integrated services projects under the National E-Governance Plan
(NEGP) of the Government of India and is being implemented by Infosys
 The focus of eBiz is to improve the business environment in the country by enabling
fast and efficient access to Government-to-Business (G2B) services through an
online portal. This will help in reducing unnecessary delays in various regulatory
processes required to start and run businesses.
f. Digital India
 Promotion of e-Governance through a centralised initiative to ensure citizen centric
service orientation, interoperability of various e-Governance applications and optimal
utilisation of ICT infrastructure/ resources, while adopting a decentralised
implementation model with respect to various ministries / departments of the

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Financial Inclusion Plan

The bank has implemented Financial Inclusion Plan for providing banking services in the
un-banked / under-banked 20,000 villages having population of 2,000 and above during
the first phase. The banking services have been provided to these villages through
information and communication technology based models like smart cards, micro ATMs,
mobile vans and brick & mortar branches, wherever feasible.

Moreover, under Roadmap for provision of banking outlets in villages with population less
than 2000, our bank has advised all the Financial Inclusion link branches to ask
concerned BCs and KIOSK operators/VLEs to visit periodically to their allotted sub service
area villages on pre announced days and time to cover 100% Service Area villages.

The basic approach of financial Inclusion is based on the fundamental principle of 5A„s of
ensuring Adequacy and Availability of financial services to all sections of the society
through the formal financial system covering savings, credit, remittance, insurance, etc.
and, at the same time, increasing Awareness of such services and ensuring Affordability
and Accessibility of the appropriate financial products through a combination of
conventional and alternative delivery channels and technology enabled services and

Business Facilitator„
Model Business Correspondent„ model
BF should be used to provide
only non- In Addition To Activities Listed Under
financial support services. The Business Facilitator Model, The
Scope Of Activities To Be Undertaken
The following services can be provided By The Business Correspondents Will
by the ―Business Facilitators‖ to
the Include
bank: 1. Disbursal Of Small Value Credit,

Identification of borrowers as per KYC 2. Recovery Of Principal / Collection Of
norms and fitment of activities. Interest
However, the branches are
ultimately 3. Collection Of Small Value Deposits
responsible for adherence to the 4. Sale Of Micro Insurance / Mutual
KYC Fund
norms. Hence, they have to ensure
that Products / Pension Products / Other
KYC norms are scrupulously followed Third Party Products And
while opening loan accounts. 5. Receipt And Delivery Of Small Value

Collection & preliminary processing s / Other Payment
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loan applications including verification Instrument
of s
primary information / data

Creating awareness loans and The Activities To Be Undertaken By The
B.C. Would Be Within The Normal
liability products Course

Education and advice on managing
money Of The Bank's Banking Business, But
and debt counseling Conducted h The Entities

Processing and Submission of Indicated Above At Places Other Than

applications to The Bank
banks Premises.

Promotion and nurturing of Self In View to Provide Flexibility to the
Help Banks
and Technological Development in
Groups / Joint Liability Groups the

Post-sanction monitoring Banking Sector ,The RBI has decided to

Monitoring and handholding of Self
Help remove the earlier Distance Criteria
(Distance Between The Place Of
Groups / Joint Liability Groups / Credit Business
Groups /Others Of A B.C. / B.F. And The Base Branch)

Follow-up for
recovery for the Operation Of The Business
or Rural, SU And
Urban Areas of30 Kms and 5 Kms
metropolitiancentre has removed.Now
there is no such any distance criteria.

Business Correspondent (BC) Model

BCs from the local area will be engaged

They will be provided with hand held devices having facility for enrolments and
transactions with bio-metric authentication using POS / KIOSK.

Authorised to collect and disburse cash.

The system is integrated with the Core Banking Solution (CBS)

RBI has now allowed BC appointed by one bank can also work for other banks and it
will not only facilitate the business continuity but also reduce the cost of operation

Our bank has devised an incentive scheme for BCs for canvassing business.
Instant Account Opening at BC points: This facility has been launched since
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10.12.2015 where the customer will get the account number instantly and can deposit
money in his account simultaneously. This has been designed to prevent opening of zero
balance accounts which has been a cause of concern in PMJDY.
Though customer can get the account number instantly and can deposit the amount
immediately, however, he can withdraw only when the account get verified by the Branch.
Therefore, BC should submit the account opening form within 24 hours to link branch.
Further Branch to verify these accounts though menu “ FREEREC” immediately and ensure
that not a single account remain unverified beyond 3 days.

Scheme Code for opening of Saving Bank account at BC points: (BCC:BR:108:80

dated 18-02-2016):SB150 scheme code is only meant for opening of Saving Bank
Accounts at our Business Correspondent (BC) points.

Opening of Term Deposit and Recurring Deposit Accounts at BC points: As a new

initiative our Bank has started opening of FD & RD accounts at BC points.
Target Group: The following customers are eligible to open FD and RD accounts at
BC points
i) Customers who have opened their saving bank accounts through BC points.
ii) Customers whose saving bank accounts have been Aadhaar seeded.

Remuneration to BCs:
Sr. Activity Remuneration for Mode of Payment
No Kiosk Model BC
1 Opening of Recurring Deposit Rs.10/- per Online credit
account (Max 10000 per a/c account
through transfer only)
2 Opening of Fixed Deposit 0.40% of deposit Online credit
account (Max 1 lakh per a/c amount; Max of
through transfer only) Rs.20/- per
Provision for our customers to deposit loan amount in their loan accounts at our
BC points (Kiosk) (BCC:BR:107:627 dated 18-12-2015) : Any of our customer or his
representatives, who wants to deposit the loan installment need to visit our KIOSK point
and provide the loan account number wherein the deposit needs to be done. Currently,
system is enabled for cash deposit in LAA scheme type accounts only,limit being Rs
10000/- per day.
Services available at BC points: Following services are available at BC points:
 Saving Bank account opening;
 Opening of Term Deposit and Recurring Deposit Accounts
 Opening of accounts through e – KYC
 Cash deposit in SB, CA, CC, OD and Loan accounts
 Withdrawal from Saving Bank account
 Aadhaar Enabled payments (AEPs)
 Aadhaar Seeding
 Balance Enquiry
 Fund transfers / remittances
 Canvassing of loan accounts
 Micro Insurance product like PMJJBY, PMSBY
 Atal Pension Yojana
 Loan Recovery

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Incentive linked schemes for Business Correspondents for Mobilizing deposits in
SB accounts opened by them and Management of Asset quality (BCC:BR:107:613
dated 10-12-2015):

1. Mobilizing deposits in SB accounts opened by them Incentive for mobilizing

Deposits in Savings Account - This is applicable when at least 90% of accounts opened
by BCs are funded and BC maintains at least 1000 accounts. The incentive in % term is as
under :

 Average balance up to 25 lacs – NIL

 Average balance above 25 lacs and up to 40 lacs – 0.5%
 Average balance above 40 lacs and up to 60 lacs - 1%
 Average balance above 60 lacs – 1.5 %

2. Management of Asset quality: Incentive for follow up & recovery in loan

accounts and maintaining asset quality

Incentive is 1% of the Amount of loan account assigned to BC for follow up and recovery
where the account is standard and regular at the end of the year i.e. after 12 months.
 The incentive amount will be paid only after the completion of one year.
 The incentive will be payable only when 90% of the accounts assigned to the BCs
are regular.
 For Example- If a BC is assigned say 80 loan accounts is his area, amounting to Rs.
1.10 Cr on 01.01.2016 and 72 accounts (72 accounts is 90% of 80 accounts) are
regular (out of 80 accounts) with outstanding amount of 1.02 Cr, the BC is entitled
to get incentive of Rs. 1.02 lacs (i.e. 1% of 1.02 Cr) on 01.01.2017.
 In case of NPA accounts an incentive of 2% of recovered amount may be paid by
branch immediately after recovery by BC. In case of PWO accounts the incentive of
10% of the recovered amount may be paid immediately after recovery by BC.
 In the event of BC not able to maintain asset quality, in such case incentive shall not
be payable to BC.
Remuneration/ incentives available to our Business Correspondent (BCs): Bank
has empanelled 16 corporate BC for supporting Bank‟s FI activities. To improve
upon the service delivery through the Model of BCs, Bank has been providing
remuneration/ multiple incentives to the BCs for different types of product & services
delivery through them.

In case of Kiosk Model BCs, remuneration for both fixed and variable portions, are paid
online by our Corporate Office to the field level BCs.

In case of POS model BCs, remuneration for account opening is paid by braches, however
fixed portion and transaction charges are paid by our corporate office to the field level BCs.

In case of BCs operating under Corporate BCs, the remuneration net of TDS is shared in
the ratio of 80 to 20 between the field level BC and corporate BC. In case of Direct BCs,
the remuneration net of TDs is paid fully to them by corporate office.

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Incentives for Business Facilitation by BCs are paid at branch level to the debit of P/L head
„incentives paid to BCs”, account number xxxx0052201006 of respective branch subject to
Consolidated information of remuneration / incentive available to BCs have been provided
in annexure as per circular no. BCC:BR:108:48 dated 01-02-2016.

Increment of incentive for Aadhaar seeding through branches and BCs from Rs.
3/- to Rs. 5/- and extension till 30/09/2016 (BCC:BR:108:59 dated 08-02-
2016):Incentive of Rs. 5/- to BCs for activation of RuPay card. Bank has increased the
incentive amount from Rs. 3/- to Rs. 5/- and scheme has extended till 30/09/2016. Bank
has also decided to provide an incentive of Rs. 5/- per RuPay debit card activation to our
BC with immediate effect.
Opening of Settlement accounts (OD124) tor BC Operation (BCC: BR: 108:109
dated 10-03-2016): Bank has reiterated the modalities for opening of BC settlement
 Branch should open settlement account of BCs under Scheme Code OD124 only and the
account can be opened with zero balance.
 The Overdraft facility should be granted to the business correspondent against collateral
security on usual commercial terms and conditions as per bank's extant guidelines.
Branch has to monitor overdraft account of the BC on daily basis.

Quarterly Inspection/Audit of BC points (BCC: BR: 107:491 dated 03-10-2015):

Bank has decided to conduct inspection/ audit of BC points at regular interval. In this
regards, Bank advised Branches, Regional Offices and inspection to audit BC Points in their
respective area of operation in the following manner.

Branches to audit all their respective BC points once in every quarter and take appropriate
remedial action in case of any irregularity is found and same copy should send to RO for
their record and action if warranted.
RO on its own will audit 10% of the BCs of the region randomly every quarter (rotation
basis) in addition to branch audit and initiate necessary action.
The internal Auditors from ZIAD concerned will visit a few BC points randomly during their
regular inspection of the Branch.

Baroda Basic Saving Bank Deposit Account: RBI, with a view to do away with the
stigma associated with the nomenclature „no frills‟ account and making the basic banking
facilities available in a more uniform manner across the banking system, has decided
to modify the guidelines for opening of basic banking „no-frills‟ accounts. Modified
guidelines on no-frill a/cs are as under :-

1. The Banks will offer a “Basic Savings Bank Deposit Account‟ which should be considered
a normal banking service available to all.

2. This account shall not have the requirement of any minimum balance.

3. The services available in the account will include deposit and withdrawal of cash at
bank branch as well as ATMs, receipt/ credit of money through electronic payment
channels or by means of deposit/ collection of cheques drawn by Central/ State
Government Agencies and Departments.

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4. While there will be no limit on the number of deposits that can be made in a month,
account holders will be allowed a maximum of four withdrawals in a month, including ATM

5. Facility of ATM or ATM cum Debit card.

6. Above said facilities will be provided without any charges. Further, no charges
will be levied for non- operation/ activation of in-operative “Basic Savings Bank
Deposit Account”.
Features of Baroda Basic Saving Bank Deposit Account:
Parameters Features

Minimum Initial Deposit amount Nil

The Account can be opened with Zero
Balance also

No. of withdrawals allowed in a 4


No. of cheque leaves allowed free in 50

a year

Charges for non operation/ activation NIL Charges

of in-operative/ dormant a/cs

Standing Instruction/ ECS facility To be provided


Internet Banking To be provided

Whether Account holder is eligible to No (if a customer has any other existing
open any other Savings Bank savings bank deposit account in the bank,
Deposit in Bank he/ she will be required to close it within
30 days of opening of “Basic Savings
Bank Deposit Account” )

Small Account (KYC non-Compliant BSBD accounts) - A small account can be opened
on the basis of a self attested photograph and putting her/his signature/thumb print in the
presence of an official of the Bank.

At branch level BSBD accounts to be opened only under following scheme codes:

1. SB124 – Wherever KYC documents have been submitted by the customer.

2. SB136 – Small accounts opened on declaration basis from the customer

Mobile Vans- Mobile vans with systems having connectivity moving in a cluster of
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Bio-metric ATMs- Establishing Bio-metric ATMS, Fixed as well as mobile.

Ultra Small Branches

 Ultra Small Branches„ have established by the bank for effective coverage
 Financial Inclusion.
 It can be established between the base branch and BC locations so as to support to
about 8-10 BC units at a reasonable distance of 3-4 Km.
 USB is brick & mortar unit of floor area of 100-200 sq.ft., from where banking
facilities will be provided to people and nearest branch from which it will be
attached, officer of link branch will visit once in a week to the USB just like earlier
concept of Satellite Branch„.

BoB- Kiosks Model under financial inclusion:

Presently we are covering financial inclusion villages through three models such as POS
based BC model, Mobile Van model and Brick & Mortar branch model. All these models
have unique features and own merits. As a part of continual development in financial
inclusion, our bank has introduced one more model ―Kiosk Banking which is web based
application that can be accessed through desktop or laptop. This is card less solution so
that time period required for printing and distribution of smart card can be eliminated and
customer can start operating the account immediately from date of opening of account.
Transactions processing is based on centralized biometric authentication on real time basis.
This model is very useful to increase our reach into the villages as well as implementation
of Urban Financial Inclusion at urban and semi-urban locations.

Bank has already entered into an agreement with the CSC e-Governance India Services
Ltd., which is SPV for the purpose launched by Department of Information and Tech.,
Government of India to appoint their Common Services Centers (CSCs) as Business

Linking of customers„s Aadhaar number with their bank account

The government of India has decided to transfer direct payments to the bank accounts of
the beneficiaries under various government programmes such as MGNREGA wages,
fertilizer subsidy, scholarship, LPG subsidyetc through Electronic Benefit Transfer (EBT). In
addition to the other platforms like NEFT, RTGS etc. , the govt. of India has given
emphasis to roll out subsidies/direct cash transfers also on the basis of Aadhar /UID
number of the resident.
The Aadhar number of the customer can be linked in existing account as well as for the
new accounts through menu option ―APBSLN‖.

Branch to senitize customer about the importance of seeding aadhaar with their saving
bank account for availing a) various Govt. benfits b) for claim settlement under various
insurance schemes and c) availing transaction facility through Aadhaar enabled payment
system (AEPS) at BC points.

Following strategies in the strategic Board Meet have been devised to improve the Aadhar
seeding position (BCC: BR: 107:301 dated 24-06-2015):

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 Open the account through e-KYC
 If e-KYC not possible, then obtain Aadhaar as KYC and seed the account
 Link branch to ensure that all the BCs are opening accounts through e-KYC
 Branches should allot challenging target to BCs
 Branch should nominate one staff member as “Aadhaar champion”. A report to be
generated using UIDLNKOS menu.
 Consent cum declaration form submitted by customer to avail the insurance facilities
under PMSBY & PMJJBY scheme where in most of the customers have mentioned
their Aadhaar number can also be used for seeding.

Aadhaar linking with bank account through menu option “HOPNACCT” for
accounts opened at branches & RBOs (BCC:BR:107:381 dated 11-08-2015): Bank
has enabled the menu option “HOPNACCT” for Aadhaar seeding at the time of account
opening. This will be done by the branch staff at the branch level only.

Provision for Aadhaar seeding at BC Point (BCC: BR: 108:37 dated 27-01-2016):
Bank has enabled Bank‟s BCs for Aadhaar seeding of customers who have opened their
accounts at BC points.

Seeding of Aadhaar number in bank account (BCC:BR:108:38 dated 29-01-

2016):Bank has advised to all branches to improve voluntary seeding of Aadhaar in all
bank account including pension accounts of Central Government Pensioner. Banks has also
advised to keep improving on Aadhaar seeding position so that Bank as a whole reaches at
least 80% mark by end of March 2016.

Aadhar seeding in Bank accounts of MGNREGA beneficiaries (BCC:BR:108:85

dated 18-02-2016): Ministry of Rural Development, Govt. of India has proposed camp
mode approach to help the banks for the prompt Aadhar seeding as per following action

The Ministry will organize village level camps to reach out to MGNREGA beneficiaries.
The beneficiaries will be sensitized about benefits of using RuPay debit card and
advantages of Aadhar seeding of their accounts.
On a voluntary basis, they will try to obtain consent of beneficiaries for Aadhar seeding
of their accounts in writing.
Consent form contains details such as name and address of beneficiaries, bank account,
Aadhar number, etc which are required by Bank for Aadhar seeding.
The consent form will be duly signed by beneficiaries account holder. It is advised to obtain
signature of a witness wherever the beneficiary is illiterate and puts only thumb impression
on consent from.

Rollout of Aadhaar enabled payment system (AEPS) BCC: BR: 107:130 dated 19-
03-2015: Our Bank has rolled out AEPS for providing banking services at BC/Kiosk
locations. AEPS is interoperable system through which any customer of our bank and other
bank who has Aadhaar linked bank account can avail banking services such as cash
deposit, cash withdrawal, Balance inquiry, and fund transfer at any of our BC location.
The transaction in AEPS is Aadhhar based and as such transaction is based on biometric
authentication and therefore, account should be aadhaar seeded.

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Pradhan Mantri Jan DhanYojana (PMJDY):
Pradhan Mantri Jan Dhan Yojana is a scheme for comprehensive financial inclusion
launched by the Prime Minister of India, Narendra Modi on 28 August 2014. He had
announced this scheme on his first Independence Day speech on 15 August 2014.
Run by Department of Financial Services, Ministry of Finance, on the inauguration day, 1.5
Crore (15 million) bank accounts were opened under this scheme. By 28 January 2015,
12.58 crore accounts were opened, with around 10590 crore (US$1.7 billion) were
deposited under the scheme, which also has an option for opening new bank accounts with
zero balance.

The scheme has been started with a target to provide 'universal access to banking
facilities' starting with "Basic Banking Accounts" with overdraft facility of Rs.5000 after six
months and RuPay Debit card with inbuilt accident insurance cover of Rs. 1 lakh and
RuPay Kisan Card. In next phase, micro insurance & pension etc. will also be added.

Under the scheme:

1. Account holders will be provided zero-balance bank account with RuPay debit
card, in addition to accidental insurance cover of Rs 1 lakh.
2. Those who open accounts by January 26, 2015 over and above the 1 lakh ₹ accident,
they will be given life insurance cover of 30,000 (to be given by LIC).
3. After Six months of opening of the bank account, holders can avail Rs.5,000 overdraft
from the bank.
4. With the introduction of new technology introduced by National Payments Corporation
of India (NPCI), a person can transfer funds, check balance through a normal phone
which was earlier limited only to smart phones so far.
5. Mobile banking for the poor would be available through National Unified USSD
Platform (NUUP) for which all banks and mobile companies have come together.

Pradhan Mantri Jan Dhan Yojana(PMJDY)-Overdraft:

Under Financial inclusion after implementation of Pradhan Mantri Jan dhan yojana
It has been decided by the government of India to devise a uniform SBOD across the
industry under PMJDY. General purpose loan to provide hassle free credit to low income
group/underprivileged customer to meet their exigencies without insistence on security
,purpose or end use of credit.

Eligibility- Individuals having BSBD accounts, which are operated satisfactorily for at least
six months. OD to be granted to the earning member of family, preferably women of the
house. There should be regular credits under DBT/DBTL scheme /other verifiable source.
For avoiding duplicate benefit, account may be seeded with Aadhaar. Age of applicant
between 18 years to 60 years years. (Not eligible: minors, KCC/GCC borrowers, more
than one member of the same family).
Period of sanction- 36 months to annual review of accounts
Loan Amount-a)4 times of Average monthly balance
b) or, 50 % of credit summations in accounts during the preceding 6months.
c) or, Rs 5000/- whichever is lower.

Procedures for sanctioning overdraft to PMJDY customers (BCC:BR:107:177 dated

20-04-2015): Branches are advised to follow the procedures given below while
sanctioning the OD facilities

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1. It is required to confirm from NPCI repository that account holder (Aadhaar holder) has
not availed the OD facilities from any other bank. It is to be ascertained by using “
UIDINQ” menu option in Finacle.
2. It is also mandatory to update the OD status of the account in NPCI repository so that
the customer will not be able to avail similar OD facility from any other bank or our
branches. For this, use the menu “HAPBSLN”
The user can create OD limit in the account of the customer through menu option

Overdraft up to Rs. 5000/- Pradhan Mantri Jan Dhan Yojana – Non mandatory of
Aadhaar seeding (BCC:BR:107:469 dated 23-09-2015):Bank has advised to branches
to take note of Government of India and should not insist for Aadhaar seeding in the
account for granting overdraft up to Rs. 5000/- under PMJDY accounts.

Pradhan Mantri Jeevan Jyoti Bima Yojna ( PMJJBY) and Pradhan Mantri Suraksha
Bima Yojna (PMSBY): Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan
Mantri Suraksha Bima Yojna (PMSBY) are the flagship schemes under ambitious social
security schemes captioned "JAN DHAN SE JAN SURAKSHA" launched by Government of
India on 1st of June 2015. ln absence of any formal social security system in India,
Government had envisioned to cover a larger set of population through the Banking
Particulars Pradhan Mantri Jeevan Jyoti Pradhan Mantri Suraksha
Bima Yojna Bima Yojna

Type of Insurance Life Insurance Accidental Insurance

Eligibility All saving Bank account holders All saving Bank account holders
within the age group given within the age group given
below. below.

The insurance premium amount The insurance premium amount

will be directly debited to their will be directly debited to their
account. account.

Sum Insured Rs. 2 lac Rs.2 lac

Period 1 Year 1 Year

Age limit 18-50 Years 18-70 Years

Cover Rs. 2 lac payable on death due a. Accidental death & full
to any reason. disability Rs. 2 lac
b. Partial disability Rs. 1 lac
Yearly premium Rs.330 + Service Tax Rs.12 + Service Tax

Commission to Rs. 30 to BC & Rs.11 to Bank + Rs.1 to BC & Rs.1 to Bank +

Bank from service tax service tax
premium amount

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The insurance cover shall be for one year period starting from 1st June to 31st May
for which premium will be required to be paid from account of the customer by
31st May every year.

There is waiver of self Declaration for good health for enrollment under PMJJBY till

Atal Pension Yojana (APY) : a pension scheme for citizens of India, is focused on the
unorganised sector workers. APY is being administered by the Pension Fund Regulatory
and Development Authority (PFRDA) under the overall administrative and institutional
architecture of the National Pension System (NPS). Under the APY, guaranteed minimum
pension of Rs. 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month will be given at
the age of 60 years depending on the contributions by the subscribers.

Any Citizen of India can join APY scheme. The following are the eligibility criteria:-
(i) The age of the subscriber should be between 18 - 40 years.
(ii) He / She should have a savings bank account.

The prospective applicant may provide Aadhar and mobile number to the bank during
registration to facilitate receipt of periodic updates on APY account. However, Aadhar is not
mandatory for enrolment.

The contributions can be made at monthly / quarterly / half yearly intervals through auto
debit facility from savings bank account of the subscriber. The subscribers are required to
contribute the prescribed contribution amount from the age of joining APY till age 60. The
details of age-wise, pension-wise and contribution-frequency-wise prescribed contribution
amount and the indicative pension wealth available for the nominee has been given in the

The co-contribution of the Government of India is available for 5 years, i.e., from the
Financial Year 2015-16 to 2019-20 for the subscribers, who join the scheme during the
period from 1st June, 2015 to 31st December, 2015 and who are not covered by any
Statutory Social Security Schemes and are not income tax payers.

Upon completion of 60 years, the subscribers will submit the request to the associated
bank for drawing the guaranteed minimum monthly pension or higher monthly pension, if
investment returns are higher than the guaranteed returns embedded in APY. The same
amount of monthly pension is payable to spouse (default nominee) upon death of
subscriber. Nominee will be eligible for return of pension wealth accumulated till age 60 of
the subscriber upon death of both the subscriber and spouse.

Baroda Kisan Group Loan Scheme (Joint Liability Group):

It is financing of joint farming groups of “Bhoomi Heen Kisan”. In the budget
announcement of F.Y 2014-15 ,the Hon„ble finance minister has proposed to provide
finance to 5 lacs joint Liability Farming Groups of ―Bhoomiheenkisan during the year .The
scheme was formulated on the direction of the Government of India/RBI and intended to
open a separate window for Joint Liability groups oftenant farmers, oral lessees, share
croppers and ensuring that a certain production of the extended to them.
1. A joint liability group is an informal group comprising 4 to 10 individuals coming
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together for the purpose of availing bank loan either singly or through group
mechanism, against mutual guarantees.
2. The JLG members are to engage in similar type of activities like crop production and
must trust each other.
3. The members should live in the same neighborhoods or in the same village and
must be from the same socio economic background and environment.
4. The members should be engaged in agricultural activity for a continuous period of
not less than 1 year in the area of operation of the branch.
5. The group member should not be a defaulter of any other formal financial
6. The member to open an individual No frill account. However with mutual consent the
group can open and maintain SB account in the name of Group.
7. The JLG would prepare a credit plan for individual members and aggregate credit
plan for the group to be submitted to the bank.
8. The max. loan amount per member not to exceed Rs.100000 and for group Rs. 10
lacs for Tenant farmers/oral lessee/share cropper.
9. The credit need assessment of individual members will be based on the crop to be
cultivated, available land and capacity also. However this is only with the mutual
consent of the members.
10.The credit facility to the JLG will be assessed by way of production / investment
credit in the form of BKCC. The maximum loan limit for Small /Marginal will be need
based ,to be assessed as per the BKCC Norms.
11.Personal accident insurance for Rs.50000/- to one borrower per account.
12.Crop insurance available for notified crops

Baroda Kisan Credit Card:

1. The purpose of BKCC is to provide adequate and timely credit for the
comprehensive credit requirement of farmers under single window concept for
their cultivation and development as well as consumption needs.
2. All farmers, registered share cropper„s and tenant farmers cultivating crops for a
period not less than 5 years, individual tenant farmers and share croppers
cultivating land on lease basis at least for a period of 3 years are eligible for BKCC.
3. Baroda Kisan Credit Card will consist of Production Line of Credit as well as
Investment Line of Credit. Under the production line of credit requirements of
farmers in terms of production loan for various crops, maintenance of tractor/farm
implements, allied activities like dairy, poultry, annual repairs, fuel, cost of feed,
etc., consumption needs, Working capital requirement for allied activities, non
farm sector activities and finance against storage receipts/produce marketing
loans are taken into account in the following manner:

Sr. Requirement Quantum/Remark

01. Production loans for raising Based on scale of finance
various crops
02. Maintenance of To the extent of 15% of the crop production

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implements, allied expenses limit
activities like dairy, poultry,
annual repairs, fuel, cost of
feed, etc

03. The consumption needs To the extent of 25% / 25% / 35% of the
Crop Production expenses limit, depending
upon the category*of borrower subject to a
maximum of Rs.1,00,000/-per card

04. Working capital for Allied As per actual assessment of credit needs as
activities per our usual norms
05. Working capital for Non As per actual assessment of credit needs as
sector activities per our usual norms
06. Farm Produce Marketing As per actual assessment of credit needs as
per our usual norms
A separate demand loan account for the
period not exceeding 12 months is to be
opened. The disbursement under this loan
component should be made by direct credit to
party/s Production credit account.

* Various categories:

BKCC Green: New & existing agril. Borrowers dealing with us since last 3 years

BKCC Silver: Agril. Borrowers having satisfactory conducted borrowal account relationship
with us for more than 3 years and upto 5 years
BKCC Gold: Regular agril. Borrowers dealing and maintaining satisfactory account with us
for the period exceeding 5 years having excellent repayment record

Under Investment line of credit, credit facilities for agriculture activities (Investment
related) , farm development ,allied activities , loans for off farm activities/needs of farmer
like personal loans including purchase of consumer durables, housing subject to maximum
of Rs. 1.00 lac as well as loans for redemption of loan availed from Non Institutional
lenders are considered.

However, quantum of loan under investment LOC is restricted to 6 times of net annual
income or 3 times of total annual farm receipt /crop value plus other annual income (3
times of annual net income) from allied activities, Non Farm Activities, salary, rent, etc. or,
75% of value of land plus 100 % of face value of securities like, Bank„s FDR, NSC, KVP, LIC
policies, whichever is lower.

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However, Quantum of finance for investment credit may be decided as per the needs
expressed by the farmer for various investment and other purposes, subject to following:

1. Farm income- 6 times of net annual income Or 3 times of total annual farm
receipts/value of crops Plus other income 3 times of net anticipated annual
income/profit from allied activities/ salary income Or

2. Value of Security-75% of value of land mortgaged as collateral security and 100% of

value of other securities like assignment of LIC Policy (surrender value), pledge of
NSCs/Bank„s TDR/Gold Ornaments etc.

1) A concession in rate of interest on investment line of credit at the rate of 0.25% and
0.50% can be considered to agriculture borrowers who is dealing with us for a period
of above 3 and upto 5 years (BKCC Silver card holder) and more than 5 years
(BKCC Gold card holder) respectively with good track record. No concession to new
as well as existing borrowers having less than 3 years dealing (BKCC Green card
holder) with us. But this concession in rate of interest will not be clubbed with any
other concession including subvention.
2) Total limit under BKCC can be granted as per DLP of concerned authority.
3) For regular production line of credit, no margin to be fixed if it is on the basis of scale
of finance. On investment line of credit the margin is as per our individual scheme as
prescribed and it can be reduced to 10% by the sanctioning authority.
4) Credit balance under BKCC will fetch interest rate as applicable to Savings bank
5) The validity of the card has been increased from 3 year to 5 years subject to renewal
after 12 months. The cash withdrawal facility in case of production credit account is
extended by the issuing branch only.

6) The Baroda Kisan Credit card has 10 characters/digits (first 6 characters being alpha
code of the branch and last four digits being serial number of the card). The card also
bears borrower„s signature, signature of issuing branch head with specimen number.
7) Bank has introduces personal accident policy for BKCC holders and branch to ensure
that all BKCC holders are covered under the said policy.
8) Personal accident insurance for Rs.50000/- to one borrower per account.
9) Crop insurance available for notified crops.
10) Baroda BKCC RuPay Card can be issued in existing regular accounts and all new BKCC

Facility of the Line of Credit / Notional limit under BKCC:

At present the crop loan component in form of production credit under BKCC is given as a
Cash Credit facility for a period of 5 years, which is subject to review every year. The limit
is computed on the basis of total land holding of the farmer, cropping pattern adopted by
him during a particular season and approved scale of finance for the crops grown. Thus the
limit available changes whenever there is a change in any of the factors mentioned above.
It is observed that the farmers and branches are generally aversed to increase the limit
due to the workload / cost involved in execution of fresh documents, preparation of fresh
proposals etc. This is ultimately adversely affecting the increased off take and thereby the
growth in outstanding level of crop loans. This also ends up in providing inadequate crop
loan to farmers.
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To overcome this problem, bank has decided to provide the facility of the Line of Credit /
Notional limit wherein the farmer„s actual requirement worked out on the basis of cropping
pattern and land area, can be increased by maximum 50% at the time of sanction of the
facility. Though this limit will be valid for a 5 years period, the drawing power/eligible limit
for each year shall be arrived based on the area of cultivation and scale of finance for the
proposed cropping pattern for that year.

This shall obviate the need for fresh sanction and documentation for 5 years thereby
helping the farmer to avail increased credit as per the prevailing scale of finance and also
in reducing the workload at the branches. This in turn will also expected to encourage the
farmer to undertake improved cultivation practices and bring more farmers into our fold
due to the inbuilt advantage of hassle-free facility of enhancement of the limits.

Baroda Kisan RuPay Card:

Our Bank has introduced Baroda Kisan RuPay Card in pursuit to facilities to farmers who
avail production credit under Baroda Kisan Credit Card from our Bank. The card meets the
requirements of BKCC customers to use channels like ATMs for cash withdrawal and also
POS at merchant of Agriculture Inputs such as seeds, fertilizers and pesticides etc.

The National Payments Corporation of India, the administrator of RuPay Cards, has
introduced insurance coverage of KisanRuPay Card holders, as a value added feature. They
have tied up with The New India Assurance Co. Ltd for the same and it has come into
effect from 01.04.2015 for a period of one year i.e., up to 31.03.2016.

Salient features of the Rupay Insurance Programme are as under:

1) All BKRC holders are eligible for insurance cover under this programme.
2) Insurance cover of Rs.1 lac per card to Baroda KisanRuPay Card holders (accidental
death and permanent disablement only) is available.
3) The insurance premium is to be borne by NPCI.
4) This insurance programme will be an additional insurance cover over any existing
insurance cover, viz., free Personal Accident Insurance Scheme (PAIS) cover upto
Rs.50000/- for BKCC holders in our Bank.
5) Annual Fee- Waived for all the years

Transaction charges Cash withdrawal for use of ATMs of NFS member banks - Rs.16 +
Service Tax per & Rs.6 + Service Tax for per each non financial transaction.

Issuing Baroda Kisan RuPay Card (BKRC) to all BKCC Holders (BCC: BR: 107:465
dated 18-09-2015): Bank has advise to branches:

 Issue BKRC compulsorily in all fresh BKCC accounts. Non-issuance of BKRC in new
accounts will be viewed seriously, since GOI has instructed to cover 100% farmers at
the earliest.
 All existing standard BKCC accounts, including those of illiterate/unwilling persons,
where BKRCs have not been issued so far, should be issued cards on an urgent basis.
List of BKCC accounts without BKRC has already been circulated to all Branches.

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 All BKCC holders should be requested to avail the facility by explaining about the
advantages of BKRC. It should be highlighted that the card has no issuance charges and
also the added advantage of personal accident insurance cover of Rs.1.00 lac, offered
by Rupay.

BKRCs should be issued on a campaign mode so as to ensure achievement of 100%

issuance i.e BKRC in all standard BKCC accounts by December 2015.

Interest Subvention Scheme-

Monitoring of end use of Crop Loans(BCC:BR:107:398 dated 19-08-2015) :With

reference of RBI Circular, Bank has advised that the branches should ensure to finance
short term crop loan accounts strictly linking the same to scale of finance and other
stipulated parameters and more so in the case of Agriculture Gold Loan and financing to
oral lessee, tenant farmers, etc. The Regions/ Zones are also advised to ensure the
compliance of above guidelines.

Calculation of Interest Subvention for Crop Loans in Finacle (BCC:BR:107:568

dated 16-11-2015):Our Bank is one of the first Banks which implemented interest
subvention calculation through CBS (Finacle) system. Even though we have been
calculating subvention through the system since 2012, it is noticed that there are still gaps
in the procedures adopted by Branches leading to revenue loss, audit objections, customer
complaints etc. Circular is issued so as to collate various guidelines and operational
procedures regarding subvention calculation and make it readily available to the operating
Scheme code should be - • CC003, CC008, LA 403
Interest Table code should be - • CC033, CC034, L4032, L4033 and CC091, CC092 (in
Special Agricultural Zone)
Other operational procedures are given in the circular.

Interest subvention of 2% will be made available for short-term crop loans up to

Rs.3,00,000/- per farmer, provided lending institutions make available short term credit at
the ground level at 7% p.a. to farmers. Further 3% Incentive in the form of intt.
subvention is given for prompt repayment to Farmers

Self Help Groups

Self Help Groups fulfilling the following criteria would broadly be eligible:

 The Group should be in existence for at least six months

 The Group should have actively promoted the savings habit
 Groups could be formal (registered) or informal (unregistered)
 Membership of the group could be between 10 to 20 persons
 If membership exceeds 20, the SHG should be registered

The sanction Savings-cum-overdraft limit is sanctioned for the amount, which a group will
be entitled to have in the ratio maximum upto 1:10 for the projected savings of ensuing
five years. However, disbursement (Drawing Power/DP) would be permitted after six
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months, based on actual corpus fund including SHGs savings as above and thereafter
reviewed each year in the ratio of corpus fund including savings as prescribed above and
accordingly DP be fixed time to time.

Discretionary Lending Powers

The finance to SHGs is considered as a clean loan facility and the Branch Managers are
considering the facility under their powers for granting such facilities in order to ensure
quick disposal of application for credit linkage of SHGs at Branch level itself. It has been
decided to enhance the lending powers of Branch Managers as under:
(Rs in lacs)
Scale of Branch Manager Revised powers for SHG –
Bank linkage
JMG Scale - I 1.50
MMG Scale- II 2.50
MMG Scale-III 5.00

Procedure for opening an S.B. account of SHG with the Bank

Resolution from the SHG.

Copy of the rules and regulations of the SHG.

Authorisation from the SHG (Operating Instructions.
KYC norms.
Processes for Credit-linkage of SHG by the Bank
 Opening of S/B Account for the SHG
Resolution from the SHG Authorisation
from the SHG
Copy of the rules and regulations of the SHG
 Conduct of internal lending by the SHG
 Assessment of SHGs
 Sanction of Credit Facility to the SHG

Corpus / savings of the group includes following:

Group„s balance in the SB A/c.
Amount held as cash with the authorized persons.
Amount internally lent amongst the members.
Amount received as interest on the loans.
Any other contributions received by the group like grants, donation, etc.

What are the advantages to the banks for banking with SHGs?
Advantages to the banks for banking with SHGs are following:
a. Transaction costs are reduced
b. Increase in the deposit base
c. Very little cost for appraisal and monitoring of the loan
d. Increase in the social base in rural area
e. Financial Services at door steps
f. NPA Reducing
g. Social Agenda / Corporate Social Responsibility
h. No subsidy Dependence Syndrome

Simplifying KYC norms for Self Help Groups (SHGs)

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KYC verification of all the members of SHG need not be done while opening the savings
bank account of the SHG and KYC verification of all the office bearers would suffice. As
regards KYC verification at the time of credit linking of SHGs, it is clarified that since KYC
would have already been verified while opening the savings bank account and the account
continues to be in operation and is to be used for credit linkage, no separate KYC
verification of the members or the office bearers is necessary.

Unified Processing Charges for Women SHGs (BCC:BR:107:379 dated 10-08-

2015): According to Central Level Coordination Committee of NRLM, Bank has been
decided to waive processing charges for loans granted to all women SHGs irrespective of
the activity and limit sanctioned. Loan to SHGs may be classified as Agriculture & other
priority sector, based on the activity undertaken by the group

Engagement of SHG Leaders/ Members as BC Agents for Financial Inclusion –

Bank Sakhi Approach (BCC:BR:108:42 dated 30-01-2016): Dept. of Financial
Services, MoF and RBI have advised that bank may appoint SHG leaders/ members as BC
agents for Financial Inclusion. In view of above Bank has decided to appoint leaders,
members of SHGs as BCs Agents through our Corporate BCs. Details like advantage,
eligibility criteria and action plan are given in the circular.

Credit information reporting in respect of Self Help Group (SHG) members (BCC:
BR: 108:105 dated 08.03.2016): Underscoring the importance of credit information
reporting in respect of the SHG members for financial inclusion, credit decision of banks
and Micro Finance Institutions (MFIs) and credit quality of the SHG loan portfolios, the
working group has emphasized the need for putting in place the credit information
reporting for SHG members sooner than later. However, the group has suggested a phased
approach to the implementation of the RBI directions so as to ensure that the data quality
is not compromised.

National Rural Livelihood Mission (NRLM) –Aajeevika - The Ministry of Rural

Development, Government of India has launched a flagship program National Rural
Livelihood Mission (NRLM) for promoting poverty reduction through building strong
institutions of the poor, particularly women, and enabling these institutions to access
a range of financial services and livelihoods services by restructuring Swaranjayanti Gram
Swarojgar Yojana (SGSY) replacing the existing SGSY scheme, effective from April 1,
2013 .

National Rural livelihoods Mission (NRLM)- Ajeevika- Interest Subvention

Scheme for Women SHGs for the Year 2015-16 (BCC:BR:108:72 dated 12-02-
2016): RBI has informed Bank that the revised guidelines for the year 2015-16 on
Interest Subvention Scheme under NRLM has been issued by the Ministry of Rural
Development, Government of India.

Important points are as below:

1. Interest to be sub vented will be subject to a cap of 3.75% for our Bank for the year
2015-16 based on Weighted Average Interest Charged.

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2. Interest Subvention claims (Regular and Prompt payment separately) will be uploaded
on quarterly basis only. Quarterly Interest Subvention claims to be supported with
certificate (Annexure- III & IV). Certificate on annexure- V will be submitted annually
as of March 2016 duly audited by the statutory auditors along with Annexure- III & IV.

For category II districts, (Other than 150 districts), all women SHGs under NRLM will
continue to be eligible for interest subvention to avail the loan facility at an interest rate of
7%. The funding for this subvention will be provided to the State Rural Livelihoods Missions
(S.R.L.Ms) from the allocation for NRLM.


Target for the Priority sector Lending - Priority Sector credit should be minimum 40
% of Bank‟s Adjusted Net Bank Credit (ANBC) or credit equivalent amount of Off-Balance
sheet exposure whichever is higher.
1. Major segments of Priority Sectors are Agriculture, Micro, Small and Medium
Enterprises (MSME), Export Credit, Education, Housing, Social
Infrastructure, Renewable Energy & Others
2. New Categories of the priority sector: Medium Enterprises, Social Infrastructure
and Renewable Energy will form part of priority sector, in addition to the existing
3. Agriculture: The distinction between direct and indirect agriculture is dispensed with.
4. Small and Marginal Farmers: A target of 8 percent of ANBC or Credit Equivalent
Amount of Off-Balance Sheet Exposure, whichever is higher, has been prescribed for
Small and Marginal Farmers within agriculture, to be achieved in a phased manner
i.e., 7 percent by March 2016 and 8 percent by March 2017.
5. Micro Enterprises: A target of 7.5 percent of ANBC or Credit Equivalent Amount of
Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Micro
Enterprises, to be achieved in a phased manner i.e. 7 percent by March 2016 and
7.5 percent by March 2017.
6. Bank loans to food and agro processing units will form part of Agriculture.

Within the overall priority sector lending target of 40 per cent of Adjusted Net Bank
Credit (ANBC) or equivalent amount of Off-Balance sheet exposure, it should be
ensured that:

18 percent of ANBC or credit equivalent amount of Off-Balance Sheet Exposure,
whichever is higher.

Micro, Small & Medium Enterprises (MSME)- Advances to micro, small & medium
enterprises sector will be reckoned in computing achievement under the overall priority
sector target of 40 percent of ANBC or credit equivalent amount of Off-Balance Sheet
Exposure, whichever is higher.

The limits for investment in plant and machinery/equipment for manufacturing / service
enterprise, as notified by Ministry of Micro, Small and Medium Enterprises, vide

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S.O.1642(E) dated September 9, 2006 are as under:-

Manufacturing Sector

Enterprises Investment in plant and machinery

Micro Enterprises Does not exceed twenty five lakh rupees
More than twenty five lakh rupees but does not exceed five crore
Small Enterprises rupees
Enterprises More than five crore rupees but does not exceed ten crore rupees
Service Sector
Micro Enterprises Does not exceed ten lakh rupees
Small Enterprises More than ten lakh rupees but does not exceed two crore rupees
Enterprises More than two crore rupees but does not exceed five crore rupees

Education Loan – Loans to individuals for educational purposes including vocational
courses upto Rs. 10 lakhs irrespective of the sanctioned amount will be considered
as eligible for priority sector.

Housing Loans - Loans to individuals up to Rs. 28 lakhs in metropolitan centres
(with population of ten lakhs and above) and loans up to Rs. 20 lakhs in other
centres for purchase/construction of a dwelling unit per family provided the overall
cost of the dwelling unit in the metropolitan centre and at other centres should not
exceed Rs. 35 lakhs and Rs. 25 lakhs respectively.

Social infrastructure: Bank loans up to a limit of Rs. 5 crore per borrower for
building social infrastructure for activities namely schools, health care facilities,
drinking water facilities and sanitation facilities in Tier II to Tier VI centres.

Renewable Energy: Bank loans up to a limit of Rs. 15 crore to borrowers for
purposes like solar based power generators, biomass based power generators, wind
mills, micro-hydel plants and for non-conventional energy based public utilities viz.
street lighting systems, and remote village electrification. For individual households,
the loan limit will be Rs. 10 lakhs per borrower.

Others :

Loans not exceeding Rs. 50,000/- per borrower provided directly by banks to
individuals and their SHG/JLG, provided the individual borrower‟s household annual
income in rural areas does not exceed Rs. 100,000/- and for non-rural areas it does
not exceed Rs. 1,60,000/-.

Loans to distressed persons (other than farmers ) not exceeding Rs. 100,000/- per
borrower to prepay their debt to non-institutional lenders.

Overdrafts extended by banks upto Rs. 5,000/- under Pradhan Mantri Jan-
DhanYojana (PMJDY) accounts provided the borrowers household annual income
does not exceed Rs. 100,000/- for rural areas and Rs. 1,60,000/- for non-rural

Loans sanctioned to State Sponsored Organisations for Scheduled Castes/ Scheduled
Tribes for the specific purpose of purchase and supply of inputs and/or the

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marketing of the outputs of the beneficiaries of these organisations.

Weaker section: In order to ensure proper attention in the matter of allocation of
credit to following preferred sector, known as WEAKER SECTION, RBI has stipulated
mandatory target of 10 % of ANBC / Credit equivalent of Off-balance sheet exposure
whichever is higher.

Following types of finance are included under Weaker Section finance:

No. Category
1. Small and Marginal Farmers
2. Artisans, village and cottage industries where individual credit limits do not
exceed Rs. 1 lakh
3. Beneficiaries under Government Sponsored Schemes such as National Rural
Livelihoods Mission (NRLM), National Urban Livelihood Mission (NULM) and
Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS)
4. Scheduled Castes and Scheduled Tribes
5. Beneficiaries of Differential Rate of Interest (DRI) scheme
6. Self Help Groups
7. Distressed farmers indebted to non-institutional lenders
8. Distressed persons other than farmers, with loan amount not exceeding Rs. 1
lakh per borrower to prepay their debt to non-institutional lenders
9. Individual women beneficiaries up to Rs. 1 lakh per borrower
10. Persons with disabilities
11. Overdrafts upto Rs. 5,000/- under Pradhan Mantri Jan-DhanYojana (PMJDY)
accounts, provided the borrowers‟ household annual income does not exceed
Rs. 100,000/- for rural areas and Rs. 1,60,000/- for non-rural areas
12. Minority communities as may be notified by Government of India from time to

DRI Advances.

The scheme is introduced in July 1972 with a view to give benefit of bank finance to
weaker sections of the society.

Eligibility: An individual who is engaged in agriculture and /or allied activities collect or
process forest products, collect fodder to be sold to farmers, SC/ST, etc. and whose family
income from all sources should not exceed Rs. 24000/- p.a. in Urban /Semi urban area and
Rs. 18000/- p.a. in Rural.
He/She should not hold land more than one acre irrigated land and 2.5 acres in case of non
irrigated land, (this does not apply to SC/ST Cases), should not employ workers on
regular basis, SHG members who fulfill above criteria can be considered under DRI
Scheme, any handicapped person.

Limit: - Composite loan limit Rs.15000/- and Rs.20000/- in case of Housing Loan (raised
from Rs. 6500/- BCC:BR:99/211 dt. 03.07.2007)

Margin: NIL.
Rate of Interest 4% p.a.

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Repayment: Generally -60- months.

Baroda Kisan Tatkaal Loan:

In order to facilitate the farmers and to make the product more attractive Bank has been
decided to (i) to grant the facility as an overdraft or loan (ii) Increase the limit granted
under the scheme.
1) Purpose: An instant credit for farming community to meet the emergent funds
requirements for Agriculture and domestic purposes during off season such as purchase of
bullock, implements, storage/packing material ,storage structures, onion sheds, purchase
of pump set, pipes for irrigation etc. and also domestic requirements for various religious
ceremonies, festivals, emergent medical expenses and other emergency expenses etc.

2) Eligibility: Individual Farmers/Joint borrowers who are existing Baroda Kisan Card
(BKCC) Holders.

3) Type of Loan: Term Loan repayable in 3-5 years or Overdraft facility for a period of 12

4) Maximum Loan amount: Limit may be fixed as under:

BKCC Limit up to Maximum Tatkal Limit

Up to Rs.5.00 Lacs 50% of BKCC limit subject to max of Rs.1.00
More than Rs.5 Lacs but up to Rs.10.00 Rs.2.00 lacs
More than Rs.10 Lacs but up to Rs.20.00 Rs.3.00 lacs
More than Rs.20 lacs Rs.5.00 lacs

This is subject to the condition that the Tatkal limit now being sanctioned should be within
the eligible limit under Investment Line of Credit in BKCC (as per details in circular
No.BCC:BR:100/50 dated 23.02.2008 – given below for ready reference) i.e. the income
and value of security conditions should be met and this Tatkal limit should be deducted
from the eligible/available quantum of finance for investment credit also.

1.Income Farm Income 6 times of net annual income

3 times of total annual farm
receipts/value of crops (anticipated
from the farm, taking into consideration
the type of crops, area under cultivation,
Other income/income 3 times of net anticipated annual
from allied activities income/ profit from economic
and salary income, activities/allied activities ( existing and
if any proposed to be undertaken) /salary
income if any.
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2. Value 75% of value of land mortgaged
of as collateral security and 100% of
Security value of other securities like
assignment of LIC Policy
value), pledge of KVPs/
NSCs/Bank‟s TDR/Gold
Ornaments etc.
Whichever is less out of 1. Income and 2. Value of Security

5) Security:
 Existing security under BKCC to be extended
 The existing norms of no collateral security up to Rs.1 lac to be followed if
combined limit is within Rs.1 lac.

6) Repayment (For term Loan): In half yearly/yearly instalments depending upon the
income generation and cropping pattern.

7) Rate of interest: As per rates applicable to Farm Credit under Agriculture from time to

8) Deviation: Any deviation in the scheme should be referred to the competent authorities
for approval, as per the extant guidelines contained in circular No. BCC:BR:107:186 dated
23.04.2015, issued by Large Corporate Banking Department, BCC, Mumbai.

9) Penal Interest and other charges - As per norms applicable to direct Agricultural
advances from time to time.

10) Finacle Codes: The accounts are to be opened in the relevant scheme codes in Finacle
given below:

For Term Loans: LA420

For Overdraft Accounts: OD022

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Micro Small and Medium Enterprises(MSME) : An Overview

MSMED Act was operationalized with effect from 2nd October 2006, which defines an
“enterprise” instead of an “industry” to give recognition to service sector and also defines a
“medium enterprise” to facilitate technology up gradation and graduation.

Section 7 of the Act protects the sector by restricting the investment in Plant & Machinery
in case of Industries and investment in equipments for service enterprises as below with
effect from 2nd Oct. 2006:

Particulars Micro Small Medium

Enterprises Enterprises Enterprises
Investment in Plant & Not Exceeding Above Rs.25lakh Above Rs.5cr to
Machineries in case of Rs.25lakh up to Rs.5cr not exceeding
Manufacturing Rs.10cr
Investment in Not Exceeding Above Rs10lakh Above Rs.2cr to
Equipment in case of Rs.10lakh up to Rs.2cr not exceeding
Service Sector Rs.5cr

Manufacturing Enterprise: is an enterprise engaged in manufacture/production or

preservation of goods and whose investment in plant and machinery (original cost
excluding land and building and the items specified by the Ministry of Small Scale
Industries) does not exceed as mentioned in above table.

Service Sector Enterprises: engaged in providing or rendering services whose investments

in equipment (original cost excluding land & Building and Furniture, Fittings and other
items not directly related to the service rendered or as may be notified under MSMED Act,
2006) are as detailed in above table.

Computation of value of Plant & Machinery:

Investment under head „Plant and Machinery‟ should include the original price of every
productive item irrespective of whether new or second hand, acquired and proposed to
be acquired, whether on lease or hire purchase or on ownership basis by the industrial
undertaking, irrespective of the manner in which the cost has been shown in its books.

For computing the value of the investment in Plant and Machinery, cost of the
following items should be included:

1) Original cost of Plant and Machinery (price paid by the owner / hirer / lessor).
2) Cost of control panels, starters, Electric Motors, other electrical accessories mounted
on individual machines.
3) Cost of only those testing and quality control equipments, which are, used for/in
process testing.

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4) The investment in establishing of Wind Mills to generate electricity for captive
consumption or partly for captive consumption and remaining power to sell to
Electricity Boards/others

Cost of following items should be excluded:

a. Equipments such as Tools, Jigs, Dies, Moulds, and Spares for maintenance
and cost of Consumable Stores.
b. Installation of P & M,
c. Research & Development Equipments and Pollution Control Equipments
d. Power Generation Set and extra Transformer installed
e. Bank Charges and Service Charges paid to the NSIC or to the State Small
Industries Corporation
f. Fire Fighting Equipments, Cables, Wires for safety measures
g. Gas producer Plants, Transportation Charges for indigenous Machineries
h. Technical Know-how Fees
i. Storage Tanks not linked to manufacturing activities but are used for storing
of Raw material and Finished Goods.
j. The investment in establishing of wind mills to generate electricity for captive
consumption or partly for captive consumption and remaining power to sell to
Electricity Boards / Others.

In case of Imported machinery following should included:

i- Import duty.
ii- The shipping charges.
iii- Custom clearance charges.
iv- Sales Tax.

Other Finance to MSMEs

i. Loans to entities involved in assisting the decentralized sector in the supply of

inputs to and marketing of outputs of artisans, village and cottage industries.
ii. Loans to co-operatives of producers in the decentralized sector viz. artisans,
village and cottage industries.
iii. Loans sanctioned by banks to MFIs for on-lending to MSME sector as per the
conditions specified in paragraph IX of this circular.
iv. Credit outstanding under General Credit Cards (including Artisan Credit Card,
Laghu Udyami Card, Swarojgar Credit Card, and Weaver‟s Card etc. in existence
and catering to the non-farm entrepreneurial credit needs of individuals).
v. Outstanding deposits with SIDBI on account of priority sector shortfall.

Considering that the MSMED Act, 2006 does not provide for any sub-categorization within
the definition of micro enterprises and that the sub-target for lending to micro enterprises
has been fixed, the current sub-categorization within the definition of micro enterprises in
the existing guidelines is dispensed with.

To ensure that MSMEs do not remain small and medium units merely to remain eligible for
priority sector status, the MSME units will continue to enjoy the priority sector lending
status up to three years after they grow out of the MSME category concerned.
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The targets and sub-targets set under priority sector lending for Domestic
scheduled commercial banks and Foreign banks with 20 branches and above
operating in India are furnished below:

 7.5 percent of ANBC(Adjusted Net Bank Credit) or Credit Equivalent Amount of Off-
Balance Sheet Exposure, whichever is higher to be achieved in a phased manner i.e.
7 per cent by March 2016 and 7.5 per cent by March 2017.
 The sub-target for Micro Enterprises for foreign banks with 20 branches and above
would be made applicable post 2018 after a review in 2017.

Credit rating:

(i) Internal Credit Rating System: The internal comprehensive credit rating system
under BOBRAM (CRISIL) Model has been approved by the bank and is already in place as
advised to all branches. The BOBRAM model is applicable to MSME accounts having
exposure of above Rs. 2 Crores.

Bank has approved adoption of New Scoring Card type of Model for rating MSME accounts
with exposure of Rs.2.00 Lacs to Rs.2.00 Crores.

As per extant guidelines, periodicity of credit rating in respect of borrowal accounts is on

annual basis. In case of adverse features in the account, the rating has to be reviewed
immediately in all such accounts with exposure (FB+NFB) of Rs.5 crores and above.

(ii) External Credit Rating System (not eligible under BASEL-II norms of capital

SME borrowers are rated by few external credit rating agencies. In case of MEs, some of
the borrowers are getting their accounts rated by external credit agency like CRISIL etc.

Our Bank has entered into MOU with credit rating agencies viz: CRISIL, ICRA, CARE, and
BRICKWORK INDIA to get our SME borrowers rated.

(iii) External Credit Rating System (under Basel-II norms of Capital Adequacy)

External Credit Rating should be carried out in all SME loan accounts with credit limits of
above Rs 5 crores by any one of the RBI approved external credit rating agencies.
Presently ICRA, CARE, CRISIL FITCH, SMERA and Brickworks India are the only Reserve
Bank of India approved external credit rating agencies in India. The exposure to SME
borrower rated by any of these rating agencies will be recognized as rated exposure for the
purpose of computation of Risk Weighted Assets under Standardized Approach of credit
risk under Basel-II guidelines.

Pricing be continued to be linked to our internal credit rating system. However due
weightage will be given for the external credit rating by the external rating agency.
Detailed guidelines on credit rating are covered under Loan Policy.

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1. The simple standardized loan application form for borrowers in MSME Sector
circulated by Indian Banks‟ Association has been adopted for credit limits upto
Rs.100 lakhs.
2. Receipt and acknowledgement of application & Maintenance of Register for
application received.
3. No application to be rejected without referring to next higher authority.
4. Our Bank has introduced online application & “Loan Tracker Module” and Our Bank‟s
website provides such facility to MSME customer through which the credit application
submitted by MSME customers would be reaching our Loan Track system and
accordingly, application tracking facility is provided to the MSME customers
5. Time norms for disposal of loan application: As per Code of Bank‟s
Commitment to Micro and Small Enterprises August 2015 (Para 5.1 j of
BCC:BR:107:624 dated 31.10.2015) Disposal of application for a credit limit or
enhancement in existing credit limit up to Rs.5 lakh should be within two weeks
provided application is complete in all respects and is accompanied by documents as
per „check list‟ provided.

6. Financials for TAKE OVER of advance accounts:

Ratio Norms
Micro & Small Medium Enterprises Others
CR Min. 1.17 & above Min. 1.20 & above Min. 1.33 &
DER (TTL/TNW) Max.4:1 Max.3:1 Max.3:1
DER Max.4.5:1 Max.4.5:1 Max.4.5:1
Average DSCR 1.75 (anyone yr. 1.75 (anyone yr. should 1.75 (anyone yr.
should not be below not be below 1.25) should not be
1.25) below 1.25)


a. Profit-making (i.e. net profit before tax) concerns only as per last audited Balance
b. Accounts be rated internally as per the new credit rating model (BOBRAM) subject to
„minimum BOB 6. In case of take over of accounts for Rs.25 lakhs and above and
upto Rs.2 Crores , the accounts are to be rated as per New MSME Credit rating
model subject to a minimum of MSME BOB 6.
c. No reschedulement / restructuring in the existing a/c. during last -2- years
{in a, b & c deviation can be allowed by ZOCC for accounts with exposure up to Rs.3
cr.; in other cases – COGM-MSME for proposals up to powers of RMCC; COCC-ED
for proposals up to powers of ZOCC and COCC – ED/ COCC- CMD in all other cases}

d. Satisfactory report from the existing bank/FI and/or satisfactory conduct of account
as per latest statement of accounts.

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e. “STANDARD ASSET” with existing banker
f. All other existing norms , guidelines to be scrupulously followed
a. {Deviation can be allowed by the COCC-ED/COCC-CMD in respect of d, e, & f}
g. External rating in respect of credit proposal with exposure above Rs.5.00Crores by
an approved credit rating agencies should not be below BBB & equivalent.
7. Collateral Free Loan: Branches may be noted that Collateral securities are not to
be obtained by the banks in respect of MSE advances up to the credit of Rs. 10 Lacs.

8. Assessment of Working Capital:

 The credit requirements of Micro, Small & Medium Enterprises (i.e. MSME-
Regulatory) will be computed on the basis of a minimum of 20 % of their acceptable
projected annual turnover or First Method of Lending, whichever is higher, for new
as well as existing units.

 Limits under non regulatory definition: The assessment of working capital credit
limits should be done based on second method of lending as per Tandon committee


(a) For Term Loan

 In case of factory land & building, overall margin of 30%
 In case of Plant & Machineries and Equipment margin is proposed at 25%
 In exceptional cases, finance may be made available against second hand imported
machinery, with a minimum margin of 40% at the discretion of sanctioning
authority, keeping in view the extant guidelines for financing against second hand

(b) For Working Capital

 25% uniform margin is proposed on stocks and receivables. For export credit margin
may be stipulated @ 10 %.
 The next higher authority is authorized to reduce margin maximum by 5% in
deserving cases in respect of Land & Building & Plant & Machineries &
Equipments/Current Assets.

If deviation is proposed beyond 5 %, Executive Director / Chairman & Managing Director is

authorized for the same.

10.Rate of interest: If accounts are falling under SME category as per, regulatory
definition, rates as applicable to Micro, Small & Medium Enterprises to be applied.
However, if accounts are falling under SME category based on expanded coverage
i.e. they are outside the purview of regulatory definition, interest to be applied as
per separate guidelines being issued from time to time.

11.Collateral Free Loans:

Presently, Bank„s guidelines for providing collateral free loans are as under:

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 Collateral free loan upto Rs.10.00 Lacs to Micro & Small Enterprises.
 Collateral free loans (including third party guarantee/ security) upto a limit of Rs.
25.00 lacs to units having satisfactory dealings with the branch for last 3 years and
having sound and healthy financial position.
 It is already decided to dispense with collateral security including third party
guarantee for loans to Medium Enterprises upto a limit of Rs. 25.00 lacs as in case
of loans to Micro & Small Enterprises in manufacturing activities subject to satisfying
the following criteria in case of existing borrower as also takeover accounts:
 Consistent growth in sales for last 3 years.
 Continuous profit for last 3 years.
 Credit rating of ―A or equivalent and above and no slippage in credit rating
during last 3 years.
 The units„ assets (fixed as also current) are charged to the bank and promoters /
directors personal guarantee are available
 Asset coverage ratio of more than 1.5
 Other take over norms are complied with.

 For the existing borrowers enjoying limits up to Rs.25.00 lacs and fulfilling the above
criteria, the release of collateral securities obtained if any, at the time of previous
sanction / review, is can also to be released at the specific request of the borrower
by PSR noting authority.
Coverage of collateral free loans under Credit Guarantee Fund Trust Scheme for
Micro & Small Enterprises (CGTMSE):

All the collateral free loans upto Rs.100 lacs sanctioned to Micro & Small Enterprises in
manufacturing and service sector as defined under MSMED Act, 2006, PMEGP scheme are
eligible for cover under the Scheme.

Detailed guidelines of Scheme are as under:

What is CGTMSE: It is a Trust established by Govt of India and SIDBI on 01st August
2008 in the ratio of 20:80.

(I) CGTMSE – important Operational Guidelines:

Eligibility: Following are eligible for coverage under CGTMSE scheme:

 Credit facilities (Fund based and/or Non fund based) extended:

o To a single eligible borrower in the Micro and Small Enterprises sector(New or
Existing both)
o Not exceeding Rs.100 lakh
o Without any collateral security and\or third party guarantees

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Quantum of Guarantee & Fee Payable:

Category/ Credit facilities upto Category Maximum extent of Guarantee

Micro Enterprise – Upto 5Lacs 85% of amount in default subject to Max
Women Enterprises/Units located in 80% of amount in default subject to Max
North Eastern Regions – > 5Lacs 40.00Lacs
to 50Lacs
(Other than Credit facility upto
5lacs to Micro enterprises)
All other Category borrower limit 75% of amount in default subject to Max.
above 5Lacs upto 50Lacs 37.50Lacs
All other Category borrower limit 50% of amount in default subject to Max
above 50Lacs 50.00Lacs

satisfactory in terms of various parameters

12. New Originations-Priorities & Approval

Bank has approved strategy to take fresh exposure including review with increase and
other ancillary business for corporate and clients. Pursuant to the approval, bank has
advised as under

(i) Bank will prefer to take fresh exposure/ review with increase in following sectors:
i. Pharmaceutical
ii. Engineering
iii. Defence Equipment Manufacturing
iv. Automobile
v. Renewable Energy
vi. IT and IT enabled services
vii. Financial Services (NBFCs, MFIs)

Bank has also advised to focus on channel financing, Trade Financing, CMS, financing of
investee companies of large Private Equity Funds, extending advisory Services as new
avenues of Business opportunity.

ii. Sectors to deal with cautions and selective approach

Bank will take cautions and selective approach in taking fresh exposure in following sectors
i. Power Generation
ii. Road Projects
iii. EPC
iv. Iron & Steel
v. Ship Breaking
vi. Gems & Jewellery
vii. Coal Mining
viii. Edible Oil & Vanaspati Manufacturing
ix. Textile
x. Large Trade Accounts (Wholesale Trading)

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It is advised that fresh/review with increase proposals involving a limit of Rs 5.00 crores
(Five Crores) and above, coming under the purview of these sectors mentioned here in
above under point no (ii) should be referred to the respective credit verticals at BCC
through respective Regional Offices for approval before putting up to the Sanctioning

Implementation of Corporate Module (MSME Banking) of LAPS (Loan Automation

Processing System) to all branches: After rollout LAPS Corporate Module under MSME
Banking across all SMELF w.e.f. 03/11/2014, it was proposed to implement the module in
branches also in phased manner. Detail User manual and Reckoner can download from KM
Portal (Intranet) with the following path: BCC – IT Dept. – Projects – LAPS - Corporate
Module Manuals.

Financial Ratios for Credit Appraisal (Not Applicable in case of takeover of accounts)
Following ratios can be accepted for granting credit facilities to SME units failing as per
regulatory guidelines or SME as per expanded coverage.
Ratio Norms
Micro & Small Medium Units covered under
Enterprises Enterprises SME Sector as per
under under expanded definition
manufacturing manufacturing and outside the
sector and sector and purview of
Service Sector Service Sector regulatory definition
falling under falling under
regulatory regulatory
guidelines guidelines
Current Ratio (Min.) 1.17 1.20 1.33
DER(Max.)(TTL/TNW) 3:1 3:1 3:1
FACR (Net FA/ LTL) Not below 1.25 Not below 1.25 Not below 1.25
Average DSCR for 1.75 with a 1.75 with a 1.75 with a condition
Term Loan condition that in condition that in that in any one year it
any one year it any one year it should not be below
should not be should not be 1.25
below 1.00 instead below 1.25
of 1.25 as per
extant guidelines.

104 | P a g e

Wholesale Banking Business:

As a part of Business Transformation initiatives, the bank is repositioning as ―Multi

Specialist Bank. Wholesale Banking Business Segment will include
All Banking business (Assets & Liabilities) across the Bank at Metro,Urban,
Semi-Urban & Rural branches with

 Entities (including Private Sector , PSU & Foreign) with their annual sales/income
turnover of over Rs.150/- crore. Following types of customers irrespective of
their annual turnover

Financial Institutions ,including banks and all type of NBFCs (excluding RRB
sponsored by our Bank)

Central and State Governments

Associate/Sister Concerns of Wholesale Banking Customers.
 (Reference BCC:BR/99/343 dated 14.11.2007)

Wholesale Banking Segment is further defined by our Bank in following two

1. Large Corporates: The Companies with annual sales turnover of above Rs. 500
2. Mid Corporates: Companies with annual sales turnover of over Rs. 150 crore and
up to Rs. 500 crore.
These segmentations facilitated to bring new large corporate whose sales turn-over is
very high but do not have any limits or are enjoying very small limits with the bank.
Existing CFS branches are functioning as Wholesale Banking Branch where the
large/mid corporate accounts of other branches in the city are being parked.

1. To increase the existing client base by canvassing new corporate accounts and to get
optimum share.
2. To increase the penetration by increasing the number of products used by clients.
3. To increase fee based income business.
4. To have a special focused attention over Large and Mid corporate customers.

Mid Corporate Branch:

1) To set up dedicated Mid Corporate Branches in important cities/centres in the country
to tap the potential that this sector offers.
3) To set up a Mid Corporate Banking segment within the Wholesale Banking Group at
Corporate Office to provide the necessary drive support to achieve the above


1) All entities i.e. Corporate, Partnership firms, Sole Prop. Firms, Trusts, Corporations
etc, having a Gross Turnover (Sales) of over Rs 500/- Crores as per the last Audited
Balance Sheet or Previous Financial Year would be classified as Large Corporate
105 | P a g e
2) All entities i.e. Corporate, Partnership firms, Sole Prop. Firms, Trusts, Corporations
etc having a Gross Turnover of over Rs 150/- crores and upto Rs 500/- crores as
per the last Audited Balance Sheet or Previous Financial Year would be classified as
Mid Corporate Borrowers.
3) All entities i.e. Corporates, Partnership firms, Sole Prop. Firms, Trusts, Corporations
etc having a Gross Turnover of upto Rs 150/- Crores as per the last Audited Balance
Sheet or Previous Financial Year would be classified as SME borrowers.
4) All entities i.e. Corporates, Partnership firms, Sole Prop. Firms, Trusts, Corporations
etc that satisfy the Investment in Plant and Machinery criteria as per Regulatory
Definition would also be classified as SME borrowers.

Note: Entities that have Gross Sales of less than Rs 450/- Crores as per Last Audited
Balance Sheet but have a Projected Gross Sales of over Rs 600/- Crores for the current
year shall be classified as Mid Corporate only. The status will be reviewed after
reviewing the Actual Gross Sales for the projected year based on Audited Financials.
Similar situation would prevail in respect of SME borrowers also i.e. borrowers with
Actual Gross Sales of Rs. 125 Crores and projected gross sales of Rs.200 Crores will be
classified as SME only and will be reviewed based on Actual Sales on receipt of Audited
Balance Sheet for projected period.

5) In respect of New Projects whether Manufacturing, Services, Infrastructure etc Total

Project Cost would determine the Classification as under: (Ref: Page No. 58 of
Domestic Loan Policy 2014 & BCC/BR/106/454 dated 24.11.2014)

i) Other than Real Estate Projects

a. Project Cost <= Rs. 50cr. – SME

b. Project Cost >Rs.50cr. but <Rs.500cr. – Mid
Corporate c. Project Cost =>Rs.500 cr – Large

ii) Real Estate Projects

a. Project Cost < Rs. 50 crs – SME

b. Project Cost =>Rs.50 cr but <Rs.250 crs.– Mid Corporate
c. Project Cost =>Rs.250 cr – Large Corporate

6) The Classification of borrower would be Entity wise and not Group wise. So different
entities in the same Group can be classified as SME, Mid Corp or Large Corp depending on
the Gross Turnover criteria as above.
7) All agriculture and indirect agriculture accounts (as per regulatory definition) shall be
classified under Rural & Agriculture Banking Business Segment and be dealt at Rural & Agri
Banking Deptt at BCC
8) Notwithstanding the above if there is any doubt about the classification of any borrower
entity, it shall be decided mutually by GM (Large Corporate Banking), GM (Mid Corporate)
and GM (SME) based on sound reasoning and justification. However in case of difference of
opinion, it will be decided by the Executive Director.

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Loans & Advances- Loan Policy 2014

1. No loan to be granted to Wilful Defaulters (Refer to Recovery Policy) of our

Bank/Other Banks/Financial Institutions.
2. In terms of Section 20(1) of BR Act 1949, no loan against the security of Bank„s
own shares.
3. Section 20(1) of the Banking Regulation Act, 1949 lays down restrictions on loans
and advances to the directors and the concerns in which they hold substantial
interest. Without prior approval of the Board or without the knowledge of the
Board, no loans and advances should be granted to Directors (including Chairman
& Managing Director) and relatives of directors of our Bank, other banks,
Scheduled Cooperative Banks, Subsidiaries/Trustees of Mutual Funds/ Venture
Capital Funds set up by the Bank/ Other Banks subject to the following: -
a) Loans & advances aggregating to Rs. 25 lacs and above are to be sanctioned by the
b) The proposals for credit facilities of an amount less than Rs. 25 lacs to these borrowers
may be sanctioned by the appropriate authority under powers vested in such authority,
subject to reporting to the Board.
Every borrower should furnish a declaration to the bank to the effect that:-
a) He is not a director or specified near relation of director of a banking company.
b) None of the partners is a director or specified near relation of a director of a banking
company; and
c) None of its directors is a director or specified near relation of a director of a banking
company. No loan to be granted against partly paid shares.]
4. No loan to be granted against partly paid shares. No loan to be granted to
Partnership/Proprietorship concerns against the primary security of shares and
debentures. (Ref page no. 30 of Domestic Loan Policy)
5. Bank will not grant advance against FDR or deposits of other Bank.
Restrictions under Selective Credit Control (SCC): Presently the following
commodities are covered under Selective Credit Control (SCC): -
-Buffer Stock of sugar with sugar mills.
- Unreleased stocks of sugar with sugar mills representing levy sugar and free sale sugar.
6. Term Loan is granted for a period of 3 years and above but not exceeding 15
years except in case of scheme specific advance i.e. Housing Loan, where
repayment period of more than 15 years is permitted. However, generally a
repayment period of 3 to 7 years is considered taking into account the repayment
capacity of the borrower, cash generation etc. In addition, Infrastructure finance
is also made available for a
period of more than 15 years on case-to-case basis on merits, in conformity with
regulatory guidelines. In case of restructured term loan accounts the tenor of the
loan will be considered on merits of each case. However, exposure to Term
(Domestic) in terms of residual maturity of more than –3-years should
not exceed 35% of the last quarter domestic credit.
7. Commercial lending proposals for Rs. 25 lacs and above (FB+NFB), for which
BOBRAM Rating Models are available, must be rated as per extant guidelines.
Minimum investment grade / acceptable for obligor (borrower) rating at entry
point is BOB -6. In case of green-field project the acceptable investment grade is
BOBGF2 (BOB-6). Accounts rated BOB 7 and below are considered as non-
investment grades. No authority less than MCB will have the power to sanction

107 | P a g e
any credit facility at the entry level/review cum enhancement for accounts rated
BOB 7 and below. However, accounts rated BOB 7 & below in case of
DR/Restructured/ Review/Review with decrease may be considered by the next
level of sanctioning authority/committee. But in the case of proposals falling
under the power of CACB, COCC-CMD and COCC-ED the proposals may be
considered by the respective sanctioning authorities only.
8. In case of commercial lending below Rs. 25 lacs (which are not covered under
BOBRAM Rating Models) the existing guidelines issued by SME department and
Retail Banking department will continue.
9. As per RBI guidelines, all credit exposures need to be rated. However in case,
models for rating of any kind of exposure to be taken up are not available, the
exposure may be considered as unrated. While taking up such unrated exposure
bank„s extant guidelines including financial, non-financial parameters etc. are to be
10. With effect from 1st April 2014, the credit validation function of all borrowal
accounts with credit limit Rs.5 crores and above has been centralized at Risk
Management Department, Baroda Corporate Centre, Mumbai irrespective of the
location of the sanctioning authority. (Ref. Circular No. BCC: BR: 106/26 dated
25th March, 2014). However, for accounts with credit limit up to Rs.5 crores
existing guidelines will continue.

Exposure to unsecured guarantees and unsecured advances: Unsecured Exposure is

defined as an outstanding exposure where the realisable value of the security, as assessed
by the Bank
/approved valuers / Reserve Bank„s inspecting officers, is not more than 10%, ab-initio, of
the outstanding exposure. „Outstanding Exposure shall include all funded (excluding
investments) and non-funded outstanding exposures (including guarantees, Derivatives
(LeR), underwriting & similar commitments).
Security will mean tangible security properly charged to the Bank and will not include
intangible securities like guarantees & comfort letters, and rights, licences, authorisations
etc. charged to the Bank as collateral in case of infrastructure projects. However, annuities
under "Built Operate and Transfer" model in respect of road/highway projects and toll
collection rights where there are provisions to compensate the project sponsor, if a certain
level of traffic is not achieved, shall be considered as tangible security, if the Bank's right
to receive annuities and toll collection is legally enforceable and irrevocable.
RBI has further advised that for determining the amount of unsecured advances for
reflecting in Schedule 9 of the published balance sheet, the rights, licences, authorisations,
etc., charged to the banks as collateral in respect of projects (including infrastructure
projects ) financed should not be reckoned as tangible security. The total amount of
advances for which intangible securities such as charge over the rights, licences, authority,
etc. has been taken as also the estimated value of such intangible collateral should also be

The domestic outstanding unsecured guarantee plus the total of domestic outstanding
unsecured advances in terms of definition of ‗unsecured exposure„ of RBI as stated above
should not exceed 30 percent of total domestic outstanding advances. The cap of 30% may
be exceeded by additional 10% provided the additional exposure is on account of financing
to infrastructure projects for which intangible securities such as charge over the rights,
licences, authority, etc. only is available.

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Short term loans (STL): The STLs may be on secured or unsecured basis depending
upon merits of proposal. Total unsecured Short Term Loans shall not exceed 10% of the
total domestic credit as of previous quarter. However, COCC-CMD/COCC-EDs is
empowered to exceed the cap, subject to reporting to Board.
Unsecured exposures will be considered only on clients having investment
grade or higher rating.

Activity Clearance & Agreement in Principle:

Looking to the increasing trend of stressed assets in Gems and Jewellary sector, Board of
our Bank has directed to adopt cautious approach in taking fresh exposure/additional
exposure/ ad-hoc limit in Gems and Jewellary sector and introduce the system of obtaining
Activity clearance prior to regular sanction irrespective of the quantum of exposure.
The activity clearance will be required from respective Functional Head (SME,Mid
Corporate, Large Corporate) at Baroda Corporate centre with immediate effect.
Therefore prior activity clearance will be a pre requisite before fresh sanction/ review with
increase /ad-hoc of credit facility to Gems and Jewellary sector irrespective of amount of

Following is the summarized table for activity clearance:

S.No Industry/Activity Authority Remarks

1. Leasing and Hire purchase Non- Baroda Corporate For fresh /RWI/ Ad-
Banking Finance companies Centre hoc-Irrespective of
(other than Central /state Govt amount (
NBFC) Sanctioning
authority rests with
only within their
delegated power

2. Capital Market ( other than Baroda Corporate For Fresh/RWI/Ad-

advances against shares to Centre hoc irrespective of
individuals) stock Brokers amount
market makers

3. Financing of film Making Baroda Corporate


4. Bridge Loan Baroda Corporate


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5. Financing of Education Baroda Corporate With Limit of
Institution Centre Rs.5.00 Crore and

6. Aviation Baroda Corporate For Fresh/RWI/Ad-

Centre hoc irrespective of

7. Infrastructure-Power Baroda Corporate For Fresh/RWI/Ad-

Centre hoc irrespective of

8. Infrastructure-Road Baroda Corporate For Fresh/RWI/Ad-

Centre hoc irrespective of

9. Infrastructure-Telecom Baroda Corporate For Fresh/RWI/Ad-

Centre hoc irrespective of

10. Securitisation through deed of Baroda Corporate For Fresh/RWI/Ad-

assignment Centre hoc irrespective of

11. Gems and Jewellary and Baroda Corporate For Fresh/RWI/Ad-

Diamond Industry Centre hoc irrespective of

12. A.Commercial Real Estate for Baroda Corporate For Fresh/RWI/Ad-

Malls Centre hoc irrespective of

B. Real estate for Commercial Baroda Corporate For Fresh/RWI/Ad-

activities Centre hoc irrespective of

13. Advances to Cooperative Bank Baroda Corporate An exceptionally

Centre meritorious

110 | P a g e
credit facility to
cooperative banks
and/or to their
customer on the
strength of counter
guarantee of a
cooperaaative bank
irrespective of

Activity Clearance from Zonal Heads

S.No Industry/Activity Authority Remarks

1. Plantation (excluding tea coffee Zonal Heads For proposals falling
and Rubber plantations common up to the power of
horticulture crops jatropha spices ROCC-RM
medicinal plants essential
oils/Aromatic plants)
2. Manufacturing and trading of Zonal Heads For proposals falling
Liquor up to the power of
3. Vegetable Oil Vanaspati Zonal Heads For proposals falling
up to the power of
4. Cinema Halls, Zonal Heads For proposals falling
Theatres/Auditoriums/Amusement up to the power of
parks, Marriage Halls ROCC-RM
5. Educational Institutions (Existing Zonal Heads For proposal upto
Fresh) rs.5.00 Crore
6. Advances to Hotels & Resorts Zonal Heads For proposals falling
up to the power of
7. It & ITES Zonal Heads For proposals falling
up to the power of
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8. Real estate (Other than Malls) for Zonal Heads For proposals falling
commercial activities but up to the power of
excluding retail loans, priority ROCC-RM
sector advances

Activity Clearance based on DLP

S.No Industry/Activity Authority Remarks

1. All other cases BCC For Proposals falling
falling under the beyond the power of
power of ZOCC and ROCC-RM please
above for the above see the guidelines
mentioned activities below**
are to be put up to
Baroda Corporate
** a) For proposals falling under the power of zonal head and the funvtional head at BCC
activity clearance to be given by the functional head at BCC
a) For proposals falling under the power if COCC-ED activity clearance to be given by
the Executive Director
b) For any other proposal not covered above for the said activities the activity
clearance will be given by the Managing Director & CEO
c) Activities not encouraged by the Bank

S.No Activities
1. Financing for exports to countries for which Export Credit Guarantee
Corporation Limited (ECGC) does not extend Guarantee cover
2. Further exposure to clients engaged in Jelly-Filled Cables
manufacturing/trading and any other category as may be specifically
decided by the Bank on account of Bank`s unsatisfactory experience
3. Bank will not encourage financing for setting up new sugar factories in
co-operative sector and/or sugar factories of capacity less than 5000
TCD (Tonnes of Crussing per day) of sugar cane.Bank may however
meet the working capital request from the sugar factory if requested
under pledge & subject to guidelines of RBI under Selective Credit

112 | P a g e

Restrictions on loans & advances to industries producing/Consuming Ozone depleting

substances (ODS)
S.No Sector Type of substance
1. Foam Products Chlorofluoro Carbon-11 (CFC-11
2. Refrigerators and Air CFC-12
3. Aerosol Products Mixtures of CFC-11 & CFC-12
4. Solvents in cleaning CFC-113 Carbon Tetrachloride Methyl
applications Chloroform
5. Fire Extinguishers Halons-1211, 1301,2402

In respect of following activities, the activity clearance may be accorded by Zonal

Heads for proposals falling up to the power of Regional Heads irrespective of substantive
rank of Zonal Heads.
1) Plantation (excluding tea, coffee and rubber plantations, common horticulture crops,
Jatropha, spices, medicinal plants, essential oils/ Aromatic plants),
2) Manufacturing & Trading of Liquor,
3) Vegetable Oil, Vanaspati.
4) Cinema Halls, Theatres/ Auditoriums/ Amusement Parks, Marriage Halls
5) Advances to Hotels/ Resorts.
6) Real Estate for Commercial Activities but excluding Retail Loans, Priority Sector
7) Fresh/incremental exposure to Diamond industry.
8) Advances to Co-operative Banks
Fresh sanction of any credit facility, whether FB or NFB including Guarantees and
Temporary Overdrafts, are not to be sanctioned to any Co-operative Bank.
Also, guarantee or any other credit facility is not to be sanctioned to any customer of any
cooperative Bank merely on the strength of counter-guarantee of a co-operative Bank.
In exceptionally meritorious cases, the proposal for sanction of fresh/new credit facility to
cooperative banks and/or to their customers merely on the strength of counter-guarantee
of a Co-operative bank may be sent to the Corporate Office, Large Corporate Banking
Dept.,BCC, Mumbai for consideration.

All other cases falling under the power of Zonal Head and above for the above mentioned
activities are to be put up to Baroda Corporate Centre for consideration as under.
1. For proposals falling under the power of Zonal Head and the functional
Head at BCC activity clearance to be given by the Functional head at BCC.
2. For proposals falling under the power of Executive Director activity clearance to be given
by the Executive Director.
3. For any other proposal not covered above for the said activities, the activity clearance
will be given by Chairman and Managing Director.

113 | P a g e
4. Bank will prefer to take fresh exposure /review with increase in the following sectors:-

 Pharmaceuticals

 Engineering

 Defence Equipment Manufacturing

 Automobile

 Renewable Energy

 IT and IT enabled services

 Financial Services (NBFCs MFIs)

5. Fresh/review with increases proposals in these segment can be considered as per extant
guidelines of the Bank subject to Activity Clearance ( Circular letter no BCC: BR:70:171
dated 16.04.2015-Wherever applicable )

6. Board has also advised to focus on Channel Financing Trade Financing Cash
Management Service financing if investee Companies of Large Private Equity Funds ,
extending Advisory Services as new avenues of business opportunities.

7. Bank will take cautious and selective approach in taking fresh exposure in the following

 Power Generation

 Road Projects


 Iron and Steel

 Ship Breaking

 Gems and Jewellery

 Coal Mining

 Edible Oil & Vanaspaaati Manufaacturin

 Textiles

 Large Trade Accounts (Wholesale Trading)

8. This circular has further advice that fresh/review with increase proposals involving a
limit of Rs 5.00 crores and above, coming under the purview of these sectors mentioned
here in above under point ni (ii) should be referred to the respective credit verticals at BCC

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through respective Regional Offices for approval before putting up to the Sanctioning
Authority CFS Branches and select Large Branches will directly refer the proposals to BCC
as mentioned in our letter no BCC/LCB/105/2220 dated 26.07.2013.

9. A Committee of General Managers (CoGM) at BCC will examine the proposal from
viability and risk angle. (CoGM) will also simultaneously look into the aspect of Activity
Clearance (wherever applicable) as mentioned in our circular no: BCC:BR:70:171 dated

Fair Practices Code for Lenders:

RBI has advised all Banks and Financial Institutions to adopt the Fair Practices Code
duly approved by their respective Boards. The Fair Practices code applies to the
following areas:
A) Applications for loans and their processing.
B) Loan appraisal and terms / conditions
C) Disbursement of loans including changes in terms and conditions
D) Post disbursement supervision
E) Other general provisions.

A. Applications for loans and their processing

 Standard schedule of fee / charges relating to the loan application depending on
the segment, to which the accounts belong, will be made available to all the
prospective borrowers in a transparent manner, along with the loan application,
irrespective of the loan amount. Likewise, amount of fee refundable in the event
of non-acceptance of the application, prepayment options and any other matter
which affects the interest of the borrower will also be made known to the
borrower at the time of application.
 Receipt of completed application forms will be duly acknowledged.
 The acknowledgment would also include the approximate date by which the
applicant should call on the Bank for preliminary discussions, if deemed
 All loan applications will be disposed of within a period of 4 weeks from the date
of receipt of duly completed loan applications i.e. with all the requisite

Retail Loans
As prescribed at product level but not beyond 4 weeks/45 days/90 days at Branch,
RO/ZO and BCC level respectively.

(B) Other than Priority sector / Retail / SME Lending:

1)at branch level within 10 days from the date of submission of full information,
2) at Regional / Zonal office level within -7- days from the date of receipt of
completed proposal/information from branch.
3) at Zonal Manager within 7 days from the date of receipt of completed
proposal/information from branch.
4) at GM at BCC within -15- days from the date of receipt of full information from
5) ED/CMD - within -7 days from the date of receipt of full information.

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CFS/IFS branches will have to forward their proposal directly to BCC with a
copy to Zonal Office and Zonal office will have to offer their
views/comments within 15 days to BCC.

*The time frame is for the sanction up to the level of COCC-CMD. In case of proposals
falling within the powers of the Management Committee of Board, the proposals are to be
submitted at the next meeting scheduled to be held after the clearance by the Chairman
and Managing Director.
The above time frame for disposal of applications is from the date of receipt of
loan application, which is complete in all respects.

B. Loan appraisal and terms/conditions

 In accordance with Bank„s prescribed risk based assessment procedures, each loan
application will be assessed and suitable margin/securities will be stipulated based
on such risk assessment and Bank„s extant guidelines, however without
compromising on due diligence.
 The sanction of credit limit along with the terms and conditions thereof is to be
conveyed to the loan applicant in writing and applicant„s acceptance of such terms
and conditions will be obtained in writing. Such terms and conditions as have been
mutually agreed upon between the bank and borrower prior to the sanction will
only be stipulated.
 Copy of loan documents, along with a copy each of all relevant enclosures quoted in
the loan agreement are to be furnished to all the borrowers at the time of sanction
/ disbursement of loans.
 Standard sanction letter would include instances of approval, disallowance, etc.
 The bank is under no legal obligation to consider increase/additional limits/facilities
without proper review/assessment.
 In case of lending under consortium arrangement, the participating banks would
decide the timeframe to complete appraisal of the proposal and communication of
the decision. The Bank will abide by the decision of the consortium.

C. Disbursement of loans including changes in terms and conditions

 Disbursement of loans sanctioned is to be made immediately on total compliance
of terms and conditions including execution of loan documents governing such
 Any change in terms and conditions, including interest rate and service charges, will
be informed individually to the borrowers in case of account specific changes and in
case of others by Public Notice/display on Notice Board at the branches/on the
Bank„s website/through Print and or other Media from time to time.
 Changes in interest rates and service charges will be effected prospectively.
 Consequent upon such changes any supplemental deeds, documents or writings are
required to be executed, the same shall also be advised. Further, availability of
facility will be subject to execution of such deeds, documents or writings.

D. Post disbursement supervision

 Post disbursement supervision, particularly in respect of loans upto Rs. 2 lacs,
would be constructive with a view to taking care of any genuine difficulties that
the borrower may face.
 Before taking a decision to recall/accelerate payment or performance under the
agreement or seeking additional securities the Bank would give reasonable notice
116 | P a g e
to the borrower.
 All securities pertaining to the loan would be released on receipt of full and final
payment of the loans subject to any legitimate right or lien and set off for any
other claim that the Bank may have against the borrowers. If such right is to be
exercised, borrowers would be given due and proper notice with requisite details.

E. Other general provisions

 Complaints: In case of any complaint / grievance, received from the

applicant/borrowers in writing, the concerned branch/ the Branch Officials shall
immediately take up the matter for redressal.
 Redressal: On receipt of the complaint, the branch would report the
matter with full details within 7 days from date of receipt, to
Regional/Zonal Head, who would take all necessary steps to redress and
resolve the grievance/dispute, within a maximum period of 30 days.
 Rejection of proposals: Credit Proposals falling beyond the discretionary lending
powers of Branch Managers shall not be rejected at the level of Branches. The
authority empowered to sanction a credit proposal may reject such proposal.
Branches shall at monthly intervals submit a consolidated statement to the
Regional Office, in respect of proposals falling under their powers and rejected by
them, giving the details of the applicant viz., name, activity, facility sought etc.,
along with reasons for
rejection of the proposal for their perusal and comments. However, proposals of
CACB/MCB powers may be rejected by COCC-CMD.
The rejection of credit proposal pertaining to SC / ST beneficiaries and Export Credit shall
be by the next higher authority. The existing guidelines about reporting of rejection of
Export Credit proposals to CMD through concerned department at Corporate Centre to

In case of rejection of loan application, irrespective of category of loans or threshold

limits, the same would be conveyed in writing along with the main reason(s), which led
to rejection of the loan application. The time frame for conveying the reason/s of
rejection will be as per Schedule given below:


Up to Rs.25000 Within 2 weeks Export Credit Within 45
working days
Above Rs.25000 and Within 4 weeks Others Within 46
up to Rs.5.00 lac days*
Above Rs.5.00 lac Within 8-9

Discretionary Lending Powers:

 Various functionaries in the Bank are exercising Discretionary Lending Powers in

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terms of the approval granted by the Board of Directors from time to time. In line
with the Ministry guidelines the bank has constituted the following credit
committee structure for different levels in the bank:
1. At corporate level there will be following credit committees :
a. Management Committee of the Board (MCB).
b. Credit Approval Committee of the Board (CACB) – Headed by the CMD
c. Corporate Office Level Credit Committee headed by the CMD (COCC-CMD)
d. Corporate Office Level Credit Committee headed by respective EDs, in-charge of
respective Corporate Credit Function (COCC–ED).
e. Corporate Office Level Credit Committee for International Division headed by the
CGM/GM (Intl Div) (COCC–GM Intl Div)).
2. Zonal Office Level Credit Committee headed by Zonal Head i.e.
ZOCC. 3. Regional Office Level - Two credit committees:
a. Regional Office Level Credit Committee headed by Regional Manager (RMCC)
b. Regional Office Level Credit Committee headed by Dy. Regional Manager (DRMCC)

will be 3 members.

 The powers of the credit committees shall be at the same level as hitherto
exercised by the Executive who will be heading the respective Credit Committee.

 Before putting up the credit /compromise /write-off proposal to the Regional

/Zonal /Corporate level committees, Bank shall continue to have scrutiny /approval
from the CREC (Credit Risk Evaluation Committee) /SACs (Settlement Advisory
Committees) at respective levels

 The Officers/ Executives at Branches shall continue to exercise Grade/Scale wise

powers hitherto delegated by the Board.

 Sanctions at SME /Retail Loan Factories: The SME/Retail Loan Factories for the
purpose of sanctions/credit decisions shall be considered as Branches only, in
respect of SME/Retail proposals. The respective SME/Retail Factory Head shall
exercise powers within their delegated powers at substantive Grade/Scale, as

 The present guidelines on delegated powers provide for exercising powers of next
higher authority for the purpose of review of existing credit facilities subject to the
conditions –
a. No change in terms & conditions;
b. No downgrading in credit rating during the review period;

c. Latest rating is minimum ‗BoB6„ as per new credit rating system

The same guidelines would continue up to the level of RMCC i.e. RMCC may exercise
powers of ZOCC for review but ZOCC would not exercise powers of COCC-ED.

 For exercising DLP the tangible security (Primary and Collateral) charged to the
bank, is to be taken into account to decide secured and unsecured advances.

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 For Export Finance, the authorities up to the level of General Manager are
empowered to exercise their discretionary lending powers up to 125% of their
normal powers provided total limits sanctioned exclusively for export business
such as packing credit, post shipment credit etc. amount to at least 25% of the
delegated powers as hitherto.

 Other than export credit proposal, all authorities upto the level of DGM shall
have discretionary powers as under ,based on credit rating of the borrowers):
1. Latest Credit rating as per CRISIL models (not more than one year old)
BOB-1, -BOB-2, and BOB-3, the DLP will be 125 % of the normal
2. Latest Credit rating as per CRISIL models (not more than one year old),
BOB-4, BOB-5, & BOB-6, the DLP will be 100 % of the normal powers.
3. Latest Credit rating as per CRISIL models (not more than one year old)
BOB-7, BOB-8, BOB-9 & BOB-10; the DLP will be 75 % of the normal
 The lending powers of the General Managers shall be irrespective of the
credit rating of the borrower- customers.
 For new borrowers approaching first time, to be rated as BOB6 for the
purpose of sanctioning powers
 As regard accounts under old rating models (i.e. exposure less than Rs. 25
lacs) the DLP will be 100% of normal powers for A+, A & B+ rated accounts
and 75% of normal powers for accounts rated below B+.

 The officers/ executives who are second in line and those in-charge of credit
department in all branches are authorized to grant advances against ―Zero-Risk
Assets‖ such as bank„s own deposits, NSC, LIC Policies, IVPs, KVIPs, Government
Securities etc up to the lending powers subject to reporting to branch manager
under PSR system
 Authorities below the level of Chief Managers may exercise delegated lending
powers to consider credit facility against hypothecation of book debts, provided
the constituents offer sufficient tangible collateral security, the value of which
being at least 75 % of the advance, by way of mortgage of immoveable
property and/ or other securities. In case no collateral securities are offered/
available, the proposals are to be referred to Higher Authorities as hitherto.

―Annual Cap ―for discretionary lending power :

Cap on Discretionary Lending Powers per year of various authorities are as

follows: - (For fresh and increase in existing limits)

Sr. DGM & AGM CM & SM Mgr & Officer

Group Limit 30timesof 25 times of 20 times of
1 Group Limit Group Limit Group Limit

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Per Party 30 times of Per 25 times of Per 20 times of Per
2 Limit Party Limit Party Limit Party Limit

Following advances are excluded from the annual cap limit:

a. Advances to staff members under the specific schemes for the bank„s staff only.
b. Advances against our own deposits and securities such as NSCs / KVPs / LIC
Policies / Relief Bond/ IVPs etc.
c. Advances under Govt. Sponsored programme and to weaker sections
d. Review (including review with decrease in limit) of accounts at the existing level.
e. In case of review with increase only existing limit is excluded whereas increased
portion will be counted for cap limit.
f. However, sanction of retail loans to the Proprietor/Partners/Directors of a firm/
company stands de-linked from per party/group discretionary lending powers.

This provision of annual cap will not be applicable to GMs, the in-charge and
second line officers of Central Processing Cells (CPCs) of Retail Lending /
Urban Retail Loan Factory and SME Loan Factory.
Depending upon business needs the sanctioning authority may be authorized to exceed
the annual ceilings by the next authority not below the level of Asst. General Manager,
by considering suitable increase in the ceiling.

Financial Ratios for Credit Appraisal:

In our loan policy following Ratios are considered as bench mark

1. Current Ratio (Current Assets/ Current Liabilities) 1.33:1 (1.20 for Medium
Enterprises and 1.17 for Micro & small enterprises)
2. Debt Equity ratio 3:1 (Total term Liabilities/TNW). TDE= Total outside
liabilities/TNW is 4.5:1
3. FA coverage Ratio (Net Fixed Assets / Term Debts (Medium & Long) 1:1 (Net
FA/Term Liabilities) SSI/SME Not below 1.25
4. DSCR (Profit after tax + Dep.+ Int. on TL) / (Int. on TL+TL Instalments) average
1.75 however in any year it should not be less than 1.25 (For Micro & Small
enterprises it should not be less than 1.00 in any year)
5. The above ratios are indicative and deviations can be considered by the sanctioning
authority on case to case basis, depending on industry, specific problems of unit,
6. An Interest Coverage Ratio (ICR=EBDITA / Interest expense) of 5 may be
considered satisfactory.

Pricing of the loan

 Pricing of Loans is quite crucial for bank„s business. Bank follows a
transparent pricing policy and is also guided by RBI on Government
directed/ sponsored lending.

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 The credit rating/scoring in respect of the borrower enjoying credit facilities
above Rs.2 lacs but less than Rs.25 lacs shall continue, even-though the pricing
is de-linked, for determining the credit risk perception
 For loans of Rs.25 lacs and above pricing continues to be determined by the
of the borrower with appropriate spread.

Risk Based pricing methodology: It is feasible to have spreads (Credit premium

+Term Premium) over base rate driven by a framework, which incorporates under
mentioned elements;

 Competitive price in Market place

 Expected Loss (Based on Banks Internal PD Estimate for various rating grades)
 Spread offered by in Bond market in relations to borrower external rating
 Hurdle Rate
 Capital at Risk
 Return on Capital at Risk.

Based on above parameters, Bank has computed the credit spread to be quoted in
reference to the over composite rating of the facilities to the borrower under different

The risk based minimum rates are not applicable to loans with maturity up to 90 days.
These loans shall be priced based on rates computed/provided by Treasury / Planning /
Large Corporate dept, keeping in mind Banks and system liquidity into account plus the
applicable risk spread subject to the floor of Base Rate or any other stipulated
minimum rate.

Verification of documents:
Advances accounts with aggregate limit of above Rs. 2.00 crore (Funded plus Non-
Funded) would be verified by the Bank„s Law Officer posted in the respective
Zone/ Region and the documents relating to Advance Accounts with aggregate of
Rs. 10 lacs and above but up to and inclusive of Rs. 2.00 crore shall be verified by
the Bank„s identified Advocate /
Lawyer other than the one who has given the Title Opinion / Non-Encumbrance
Certificate (NEC) / Report in respect of mortgage(s) in the account.

Further, as per Circular No. BCC:WB:POL:F30:99/4511 dated 11th August 2007, it has
been approved by our higher authorities that in respect of following Zones, documents
verification in respect of credit limits between Rs.1 crore and Rs.5 crore can be got
done from empanelled advocate/s of the bank, provided original documents at some
stage have been vetted by Zonal Legal Dept./Law officer of the bank.

1) North Zone 2) Greater Mumbai Zone 3) Southern Zone 4) Eastern Zone 5) Gujarat
Operations 6) Mah. & Goa Zone and 7) Rajasthan Zone.

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Notwithstanding what is mentioned above, all documents pertaining to consortium
accounts have to be necessarily got verified from Corporate Legal Dept./Zonal Legal
Dept./Law Officer of Bank.

It may be noted that the documents shall be verified by the Bank„s

identified panel Advocate/ Lawyer other than the one who has given the
Title Opinion/Non-Encumbrance Certificate (NEC)/ Report in respect of
mortgage(s) in the account.

Legal Audit of Title Documents

In response to RBI guidelines, A system of periodical ―Legal audit‖ of title
deeds and other loan documents in respect of all credit exposure of Rs.5.00
Crore & above is introduced for all existing as well as new accounts.
In addition to existing practice of verification of documents, Re-verification of
title deed as to their genuineness with relevant authorities along with
verification of other loan documents will be carried out within a period of
05years from the date of such first verification of title deeds/ documents and
for every block of five years thereafter till the loan is settled in full.

The re-verification will be carried out by the Bank„s empanelled advocate.

Regular Review
Credit facilities sanctioned to borrowers are subjected to annual review (except LABOD,
staff loans and the accounts where facilities sanctioned are for a period less than one
year etc.) as per the prevailing guidelines. However in case of borrowal accounts
enjoying credit facilities of Rs.10 Crores and above, where the credit rating is BOB-7 or
below, the account should be reviewed on half-yearly basis.. The accounts are required
to be reviewed on or before the due date.

Branches have been advised vide Circular No. BCC: BR: 100:14 dated 14.01.2008
to review advances accounts with limit up to Rs. 20 lacs for facilities enjoyed by
borrowers in trading activities, Micro & Small Enterprises, borrowers in rural area,
borrowers having only term loan accounts, financed under government sponsored
programme, borrowers enjoying only guarantee facility, etc, pending receipt of
audited financial statements, provided the conduct of the account is satisfactory.

SMA status should be part of the credit proposal. In every proposal e.g.
Review/RWI/Review with decrease the SMA status must be incorporated as Point No
5.10 of the credit proposal .In concession/Modification proposals also SMA status
should be given.

Short Review / Status Note:

The bank has also the practice of Short Review / Status Note, which is done when it
is not possible to carry out a comprehensive Regular Review of the account within
the stipulated period pending receipt of certain particulars/ information or where
the account is placed under special monitoring, etc.

We continue to deal with the matter as under:-

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Consecutive Short Reviews shall be restricted to two with a maximum period of six
months for each short review. But in exceptional cases, status review can be done in
respect of accounts marked for strict monitoring or for recovery. Relaxation is also
provided to restructured accounts and accounts under rehabilitation where for a variety
of reasons only, Short Reviews may have to be done till such time the unit/account
becomes normal and healthy.

Where there is impairment of borrower„s quality indicated through various adverse

features like default, diminution in value of security etc., suitable communication and if
need be a Short Review / Status Note should be placed before competent authority for
perusal, direction and necessary action.

Inspection of Securities
Periodicity of the inspection of securities to be carried out is as under: -

Prime securities charges for working capital as per BOBRAM rating:

 Latest Credit Rating for BOB –1, BOB –2, BOB – 3 (A+ as per old rating model)
- Half-yearly basis.
 Latest Credit Rating of BOB -4 and BOB – 5 (A as per old rating model)-
Quarterly basis.
 Latest Credit Rating BOB – 6 & Below (B+ & below as per old rating model)-
Fixed Assets (Charged against Demand/Term Loan/DPG)-Half-yearly i.e. as of
January and July.

Under consortium arrangement (Exchange of inspection reports / information –

with other banks to be ensured)-As per periodicity fixed by the consortium.

Inspection of Collateral Securities

The inspection of collateral securities to be carried out preferably on annual basis
for all types of facilities i.e. Funded as well as Non-Funded.

Credit Risk Rating/Scoring

Credit Risk Rating is a method of systematically classifying credit proposals according

to their Quality and inherent risk characteristics. Rating is an important single -point
indicator of credit quality to the Bank as also to outsiders (viz. regulators, analysts,
auditors, etc.). All credit proposals would need to be rated in an internal credit rating
model except for under mentioned i.e. Rating Exception

a. MSME proposals upto `2 crore, which need to be rated in MSME scoring model;
b. Product specific proposals to be rated in respective product scoring models;
c. Retail products to be rated in LAPS using Retail credit scoring model.
d. Proposals for Bill Discounted under Letter of Credit and assistance backed by
SBLC/BG on standalone basis, where the rating of the respective banks may be used;
e. Portfolio acquired under Interbank Participation Certificate (IBPC) on risk sharing
f. Exposure to foreign banks, where the external rating of the respective banks may
123 | P a g e
be used; and
g. Proposals backed by 100% cash collateral.
h. Borrowers availing Loan against Banks own Deposit (LABOD) Facility
i. Exposures to Urban Municipal Bodies (on account of non-availability of financial
results) who can generate revenue through taxation
j. Facility having 100% Central or State Government guarantee
k. Home country sovereign
l. Foreign country sovereign (External rating is used)
m.Accounts turned NPA, after the date of NPA
n. Advances to Central/State Govt. Departments. Undertaking/ Establishments, which
are not running on commercial basis (e.g. Industrial/Agricultural/Rural Development
Boards of various State Govts.).
o. Borrowers who are availing only those loans/limits where full powers have been
granted as per loaning power chart e.g. purchase of cheques drawn by Central & State
Govts and drafts of public sector banks, ILCs/FLCs where full cover is held by way of
deposits till maturity, etc.
p. Advances against clearing instruments/ bills/ clean overdrafts permitted within the
vested loaning powers at various levels where the client is not availing any other
loan/limit for which risk rating is applicable as per guidelines.

The Bank continues to have different rating models for Green field / Brown field
Projects, Large Corporate, SME, Traders, MSE segment, NBFCs, Banks,

Credit Score Card Model for Retail Loan hosted on LAPS

1.HL: Housing Loan
2. CL: Clean Loan
3. SL: Secured Loan
4. EL : Education Loan
5. BTL: Traders Loan (For credit facilities under Baroda Traders Loan upto Rs.200 lacs)
Credit Rating Models
 Model for Corporate entities, BOBRAM
 Model for MSME rating having exposure of Rs.2 lacs and above and upto Rs.2
 All Traders Loans proposals of above Rs. 200/- Lacs continue to be rated
Traders Model of BOBRAM under CRISIL. In case of Traders Loan of More than
Rs.200 Lac, no loan to be sanctioned to the proposal rated below BOB-6
(Obligor Rating for BOBRAM Model) in web based BOBRAM model.

Use of Ratings: The rating assigned at the time of credit approval process shall form
the basis for taking following decisions:
 Acceptance criteria : cut-off grade for investment - based on obligor rating
and above and GF2 for Green Field Projects)
 Risk based Pricing - based on composite rating
 Discretionary lending power for sanction / review - based on obligor rating
 Sanction of ad-hoc / excess / DAUE - based on obligor rating
 Inspection of securities - based on obligor rating

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 Rating based exposure ceiling - based on obligor rating

Risk Assessment Model (BOBRAM)

Management of Credit Risk determines the asset quality of the Bank. An effective
way to mitigate credit risk is to have robust credit rating system in place.

Bank has introduced Basel II compliant credit risk rating models of M/s CRISIL. The
rating models are based on two-dimensional rating methodologies specified under
Basel II requirements wherein 4 types of risks viz. industry risk, business risk,
financial risk and management quality risk are assessed pertaining to
characteristics on an obligor(borrower) while facilities proposed/sanctioned to a
borrower are assessed separately under second dimension of rating i.e. Facility

The Credit rating can (i) Identify potential risk in a particular asset.(ii) Allow a bank
to maintain healthy Asset Quality (iii) Impart flexibility in pricing assets to meet the
required risk return parameters as per the bank„s strategy and credit policy.

Risk Rating Models for Credit Risk rating of all commercial advances i.e. existing as
well as new with exposure of Rs.25 lacs and above (FB+NFB) for implementation
have been introduced by our Bank.

These Models involves three types of ratings-

 Obligor Rating(PD)
 Facility Risk Rating(LGD)
 Composite Rating(EL)

Obligor (borrower) Rating for credit worthiness indicating the Probability of Default
(PD). The obligor rating is indicative of creditworthiness of an obligor or the
Probability of Default (PD) and it is based on the assessment of past; and projected
cash flows of the company. Obligor rating grades range from BOB 1 to BOB 10.

Facility Rating:-It involves assessment of the security coverage for a given facility
and indicates the Loss Given Default (LGD) for a particular facility. Facility Rating is
dependent upon the type of facility and securities charged to the bank against the

Facility rating grade ranges from FR 1 to FR 8

Composite Rating (CR 1 to CR 10) It is matrix of PD and LGD and indicates the
Expected Loss in case the facility is defaulted. The composite rating is worked out
automatically by software based on the matrix of Obligor Grade and Facility Rating

Composite rating grade ranges from CR 1 to CR 10. Bank has accepted BOB 6 as
the cut off point for the acceptance of an obligor based on obligor rating carried out
as the applicable model

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Methods of Lending for MSME:
Methods of assessment are made by way of Regulatory and Non-Regulatory
segments. (Ref BCC/BR/107/12 dated 05.01.2015)
Turnover method or the finance as per
1st Asset Holding Method
method of lending (i.e., operative
cycle i.e., NWC is to be higher of actual amount or
25% of Total Current Assets (2nd method
basis), whichever is higher provided the )
and balance amount in Working Capital Gap
Current ratio for MSE/ME segment at may
1.17 / be financed by the
1.20. bank,

Methods of Lending for Non- MSME

Methods adopted in Bank of Baroda for assessing F.B. Working
Capital finance
For Working Capital For WC limits over For Working Capital For Working Capital
limits Rs 2.00 Crs and limits limit
over Rs 2.00 up over Rs 5.00 s over Rs 10.00
lac and up to Rs.2 No
cr to Rs 5.00 crore to crore, and up to Rs crore, to n SME
to non-SME non-SME 10.00 crore to Non- Borrower
borrowers borrowers SME Borrower

Cash Flow
Turnover method Turnover basis Asset Holding basis
Method where % of cash
i.e., NWC is to
Borrower„s Margin Borrower„s Margin be deficit from
5% * 6.25% * higher of actual s is financed
amount or 25% of provided, interalia, (a)
Bank Finance Bank Finance Total Current current ratio is not
less than 1.33; and
20% * 18.75% * Assets (2nd method (b)
) and balance
amount DER is acceptable and

126 | P a g e
* of projected * of projected in g Capital the cash surplus in
annua turnove Gap may be non-
l r or annual turnover or financed business
the finance as per the finance as per by the bank operations and in
metho provided, inter- Balance Sheet items
1st method of d 2nd alia, is
lendin metho genuinel
g (i.e., d of lending (a) current ratio is not y available
operativ no
e cycle (i.e., operative t less than 1.33; to fund cash deficit in
basis) an business
, whichever is cycle basis), d (b) DER is operations.
higher acceptable
. whichever is .

The following categories of borrowers / activities are covered by separate individual

guidelines for assessing Working Capital
finance: -


Construction companies.

Tea Companies.

Ship-breaking Companies.

Diamond Industry.

Sugar, Gur and Khandsari Industries.

Software companies.
Any other activity, which may be advised from time to time.

The methodology, followed under the Asset basis, emphasizes, inter-alia, that the
current ratio of the borrowing unit should not be less than 1.33:1 or the actual
current ratio whichever is higher. This benchmarking of current ratio at 1.33:1
ensures the borrower„s stake at a minimum of 25%. However, the actual current
ratio, wherever higher than 1.33:1, may be allowed to slip-back up to 1.33:1 in
the following circumstances:
(a)Without the bank„s concurrence / consent:
i. Temporary transport bottlenecks deterring sales;
ii Cancellation of purchase orders (leading to piling up of stock but
necessitating retirement of liabilities on raw material purchased on credit);
iii Prudent bulk or economic size procurement of stock-in-trade on credit;
iv Abnormal rise in purchase price of stock-in-trade.
(b) With the bank„s concurrence / consent:
i. Diversification, expansion, modernization, take-over, acquisitions, merger etc.
ii Rehabilitation of sick units.

127 | P a g e
Ratio at a glance :
Ability to meet current
Current Ratio Current Assets / liabilities.
Higher the ratio better the
Current Liabilities liquidity
Shortfall indicates diversion of
short term fund.
1.5 to 2 is
Availability of Liquid
Quick Ratio Quick Assets / resources to
Current Liabilities meet current liabilities.
OR 1 is desirable
C. Liab.-Bank
Net Tangible Ability to repay debt from
Solvency Ratio assets / own
Total Outside Liabilities assets on long term basis.
Higher the ratio better the
Debt-Equity Coverage of outside liabilities to
Ratio DE(TOL/TNW)= Total own
fund. Lower the ratio higher
Outside Liab. / the
Tangible Net worth safety. Asper loan policy,
DE(TTL/TNW) 3:1 &
Liab / 4.5 :1,
Tangible. N.
Extent to which FA covers
Assets Net Fixed Assets Term
Coverag Liabilitie
e Term Liability s.
Ratio More than 1 is desirable.
PAT + Depri. + Int. on Debt Servicing
Debt-Service Loan Ability
To work out repayment
Coverage Ratio schedule.
Instal. of TL + Int. on
Loan is desirable.
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Average 1.75 & min.1.00(For
Micro &
Small 1.25(Other
enterprises), s) in
any year.
turnove Average O/S Debtors x Credit policy of the unit/
Debtor r 365 firm.
Ratio (No of
Days) Average Period of the credit

Credit Sales extended.

Creditor T/Over Average O/S Creditors x Ability to get goods on credit.

Ratio (No.of days) 365 Ability to repay

Credit Purchase
Assets r Net Sales Efficient use of assets
Net Operating Assets means FA
ratio. +
Net Operating Assets CA + Non CA- Investments.
Must have increasing trend.
Gross Profit Margin Gross profit X 100 Margin available after meeting
cost. Efficiency of
Net Sales Production and Pricing.
Net profit Margin Net Profit After tax X 100 Net Profit margin on business.
Overall efficiency of the unit.
Net Sales
Dividend per shares Total distributable profit to Total dividend payable to per
Equity holders shares

No of equity shares
Measure the business
Return on Profit before Int.& Tax performance.
t Inter firm comparison.
Net Operating assets
Return means PAT + Interest
Return on . Return . x 100 on
t long term debt + Prov. For tax –

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Capital employed Int. div on non trade investment
+ non trading adjustment
Price earning on present
Price earning Ratio Market Price of the share market
Earning Per share
PAT = Profit After Tax, FA = Fixed Assets, BEP = Break Even Points,
MOS = Margin of Safety.

Marginal Cost of Funds Based Lending Rate (MCLR) shall be new internal benchmark
lending rate for all new sanctions and disbursements w.e.f. 1st April 2016.

decided to introduce the evaluation of Risk Adjusted Return on Capital (RAROC) in
appraisal of all credit proposals with aggregate credit exposures of Rs. 5 Cr and above.

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NRI Deposits, Remittances facilities for Residents, DFB & Treasury

Definition of Non Resident Indian (NRI)

Non-Resident Indian (NRI)

NRI is defined in Regulation 2 of Notification No. FEMA 5 / 2000- RB dated May 3,
2000. In terms of this Notification, an NRI means a person resident outside India who
is a citizen of India or is a person of Indian origin.

a) A person resident outside India who is a Citizen of India i.e.

i) Indian Residents stay abroad for more than 182 days in the preceding financial
ii) Indian citizens who proceed abroad for employment or for carrying on any
business or vocation or for any other purpose in circumstances indicating
indefinite period of stay outside India.
iii) Indian citizen working abroad on assignment with Foreign
Government/Government Agencies/International / Multilateral Agencies like
United Nations Organization (UNO), UNICEF, World Bank, International
Monetary Fund etc.
iv) Officials of the Central and State Government and Public Sector Undertakings
deputed abroad on temporary assignments or posted to their offices (including
diplomatic missions) abroad except those situated in Nepal and Bhutan.

b) Person of Indian Origin (PIO)

PIO for this purpose is defined in Regulation 2 of FEMA Notification ibid as a
citizen of any country other than Bangladesh or Pakistan, if
(a) he at any time held Indian passport; or
(b) he or either of his parents or any of his grandparents was a citizen of India
by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955);
(c) the person is a spouse of an Indian citizen or a person referred to in sub-
clause (a) or (b).

c) Indian Students studying abroad

In terms of FEMA regulations Indian students studying abroad can be treated
as Non Resident Indians having regard to the circumstances stated as under
i) their stay abroad for more than 182 days in the preceding financial year and
ii) their intention to stay outside India for an uncertain period when they go abroad
their studies
Accordingly, students going abroad for studies are treated as Non - Resident
Indians and are eligible for all the facilities available to NRI under FEMA.

For the purpose of Investment in India in immovable property, a person of Indian

origin means an Individual of Indian origin other than a citizen of Bangladesh,
Pakistan and Sri Lanka

131 | P a g e
Persons of following categories will not be considered as NRI:

i) Indians who go abroad for the purpose of

a) tourism
b) pursuing research
c) undertaking business promotion visits.
d) to receive training
e) obtaining medical treatment.
f) participating in sports or cultural activities.

ii) Indians or Persons of Indian origin residing in Nepal/Bhutan /Pakistan/Bangladesh.

iii) Crew members working for shipping/airlines companies posted in India and those
companies whose registered offices are in India.


Features of NRE Deposit in INR:

Current / Saving / Term Deposit Accounts

Eligibility : Any NRI (except Bangladesh/ Pakistan nationality which requires RBI
prior approval)
Eligible Credits : Proceeds of remittance from Overseas to India/From other NRE,
FCNR (B). Transfer from NRO A/C (USD one million per financial year subject to
deduction of applicable tax)

Permitted Debits: Local Payments, Remittances outside India, Transfer to NRE /

FCNR(B) Accounts of the account holder or any other person eligible to maintain such
account, Investment in Shares / Securities of an Indian Company or for purchase of
Immovable Property in India provided such investment / purchase is covered by the
regulations made, or the general / special permission granted, by the RBI, any other
transaction if covered under general or special permission granted by RBI.

NRE Rupee FD:

Tenure of Time Deposit : Min. 1 Year; Max. 10 Year
Repatriability: Fully Repatriable ( Principal plus interest amount)
Joint Accounts : Allowed with other NRI. Resident close relative may also become
joint account holder with operational instructions ‗Former or Survivor„
Loan against Term Deposit : Up to any amount subject to advance value of Term
Premature Withdrawal : Allowed. No interest is paid if the deposit is withdrawn
before one year of deposit.
Tax Exemption ; Interest earned is exempted from TDS.
Other Facilities : International Debit Card, Internet Banking (Baroda Connect),
Account operation allowed for local payments through Power of Attorney.

There is a Centralized Processing for opening NRE/NRO Savings Bank Accounts for
applications sponsored by our UAE, Kenya and Uganda territories.

132 | P a g e
Feature of NRO A/Cs in INR:

Current/Saving/Term Deposit Accounts

Eligibility: Any Non Resident.

Opening of accounts by individuals/ entities of Pakistan nationality/ ownership and

entities of Bangladesh ownership requires prior approval of the Reserve Bank.

Opening of accounts by individual/s of Bangladesh nationality may be allowed by

Authorised Dealer or Authorised Bank, subject to satisfying itself that the individual/
s hold a valid visa and valid residential permit issued by Foreigner Registration
Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned.
Eligible Credits: Some local credits as permiteed under FEMA, Proceeds of
remittance from overseas to India, From other NRE, FCNR(B), and other NRO A/Cs
Permitted Debits: All local payments in Rupees, Remittance outside India of
current income like rent, dividend, pension, interest, etc.

Repatriability : Rapatriable upto USD 1 million per financial year out of balance held
in A/c. subject to payments of tax and production of C.A. certificate i.e Form 15CA
and Form 15 CB.
Loan Against Term Deposit : Permitted without any limit (As per Advance value of
the deposit)
Joint Accounts : Allowed with other NRIs and local residents also.
Premature Withdrawal: Allowed, Rules applicable as per Resident Deposits.
Tax : TDS is levied at present @ 30% + surcharge on interest earned, Concession if
any is subject to double tax avoidance agreement (DTAA)with certain countries.
Other Facilities : International Debit Card, Internet Banking (Baroda Connect),
Account operation allowed for local payments through Power of Attorney.

FCNR (B) Time Deposit:

Term Deposit accounts in USD, GBP, EUR, JPY, CAD, AUD.
Eligibility : Any NRI (except Bangladesh/Pakistan nationality which requires RBI
prior approval)
Eligible Credits : Proceeds of remittance from overseas to India in foreign currency,
transfer from NRE a/c and conversion in foreign currency.
Tenure of Deposit : Min. 1 Year to Max. 5 Years
Repatriability : Fully Repatriable
Joint Accounts : Allowed with other NRI.
Loan Against Term Deposit: Up to any amount subject to advance value of Term
Premature Withdrawal : Allowed. No interest is paid if the deposit is withdrawn
before one year of deposit
Tax Exemption ; Interest earned is exempted from TDS
Other facilities : Opening of new A/C/Payment/Transfer is done through centralized
FCNR Back office using Finacle menu option HFCNR

Rupee Linked Foreign Currency Deposit (RLFCD):

A high yielding deposit product with inbuilt feature to protect depositors from exchange

133 | P a g e
A/C is maintained in USD, GBP, EUR, JPY, CAD, AUD
Minimum amount of deposit is USD 10,000 or its equivalent. Maximum amount of
deposit can be upto any amount
Period of deposit is one year fixed
Applicable rate of interest is the same as the rate of interest given under FCNR (B)
deposit for the period of one year in respective currency
A forward contract of one year is booked at the time of opening the deposit account
on the principal amount to enhance the yield out of the forward premium in order to
protect the depositors from exchange risk
On maturity, the deposit will be converted in to INR at the contracted rate and will
be credited to NRE or NRO a/c as per depositor‟s instruction. Interest amount will
be converted in to INR at the exchange rate prevailing on maturity date.

Foreign Currency Linked Rupee Deposits (FCLR) Scheme

This deposit plan offers the dual advantage and benefits of both NRE Rupee Deposits
and FCNR Deposits. Moreover, since the maturity value is determined in foreign
currency at the time of application, the risk of losing money due to a fall in the
exchange rate is eliminated.
Option to keep the deposit receipt free of cost in Bank's safe custody.
Acceptance and execution of Standing Instructions.
Addition and Deletion of name of account holders is permitted.
Provision for nomination.
The minimum deposit amount: is USD 10000/- or its equivalent.
NRI's can open this account by Inward remittances in any convertible currency from
abroad through normal banking channels by way of
Demand drafts
Telegraphic Transfers
Mail Transfers
Foreign Currency
Foreign Travellers cheques (during their personal visit) as well as transfer from any
non-resident (External) Rupee Savings & Fixed Deposit account or Foreign Currency
Non Resident deposit accounts of any NRI on maturity.
However local Rupee cheques and Cash Currency in Indian Rupees cannot be deposited
in this account.
The remittance received from abroad is converted into Rupees and placed in NRE
Rupee Deposit for 12 months. The customer is required to book forward contract for
the maturity amount on the date of deposit itself.

The effective yield to the customer will be the difference between the Rate of Interest
on NRE Rupee deposits and the Forward Premium prevailing on the date of effecting
the transaction.

The deposit is subject to the Rules framed by the Reserve Bank of India. Deposit
Receipts are not transferable by endorsement.

Deposit Receipts will, when so required, be issued in the names of two or more persons
and be made payable to any one or more of them or to any one or more of the
134 | P a g e
survivors of them or the last survivor. However, all the persons must be Indians
resident abroad or persons of Indian origin, resident abroad.

Deposit will be accepted for period of 12 months only. In case of premature withdrawal
of the deposit receipt, the receipt needs to be signed by all the depositors irrespective
of the operational instructions "Either or Survivor", or "Anyone or Survivors/Survivor".

Interest on deposits will be paid on maturity along with the principal. No interest will be
payable for deposits run for less than twelve months.

Baroda Premium NRE SB Account:

A premium saving bank account specially designed for valued NRI customers.
Average quarterly balance required to be maintained is INR 50,000.00
Free remittance facility if beneficiary maintains account at any of branch in India
No charges for collection of cheque drawn on self a/c / travelers cheques /
Currency notes surrendered during personal visit
Demand draft / Bankers cheque issued free of any charges Cheque book facility
available free of cost
Preferential Exchange Rate for conversion
Interest and principal fully repatriable
Tax exemption on interest earned

Baroda Double Dhamaka NRE Term Deposit Scheme for NRIs: As per the
prevailing rate of interest the principal amount is doubled in a given period under
RIRD scheme.


Feature Particulars
Product Specification Term Deposit Product wherein NRI
depositor gets more than double of
initial deposit amount after a period of9
years, 7 months and 2 days.
Eligibility and Target Group NRI individual in his own name
NRIs jointly

NRIs jointly with resident with mode

of operation as ‟Former or
NRI Minor of age 10 and above on
terms laid down by the Bank.
Account in the name of minor with
their father/mother as guardian

135 | P a g e
Minimum Amount of Deposit Rs
Minimum Deposit Amount 5000/-
(further amount in multiples of Rs 1000/-
Period 9 years 7 months and 2 days
7.30 % p.a. at present (subject to change
Rate of Interest from time to
Payment of Interest As per RIRD Scheme for NRE Term
Maximum Deposit Amount Less than Rs.1.00 crore
Tax TAX Free Interest
Repatriation Principal and interest accrued is FULLY
Pre-mature repayment Permitted with usual penalty clause.
However, no interest shall be payable
case pre-mature payment is requested
before completion of 12 months
Nomination Allowed
No auto renewal is envisaged under
Auto Renewal the

Additional Rate of Interest to Senior NIL

Citizens and Staff/Ex-Staff
Availability of Loan/Overdraft Permitted up to 95% of outstanding
balance as per the Interest rate
guidelines in force at the time of loan

Resident Foreign Currency Account - for NRIs returning to India for settling in India

Our Bank offers remunerative deposits for NRIs returning to India with the intention
of permanently settling down. NRIs can also open RFC account with the ASSETS
brought by them on return as well as their foreign assets held abroad at any future
date in case they desire so. Their present NRI accounts will be re classified and
called RFC accounts while the continuity of the deposit will be maintained till
maturity date of the deposit.

Foreign Currency Accounts For Residents:

Exchange Earners' Foreign Currency (EEFC) Accounts:-

136 | P a g e
1. All categories of foreign exchange earners are allowed to open and to credit
up to 100 per cent of their foreign exchange earnings to their EEFC Accounts
with authorized dealers in India subject to the condition that the sum total of
the accruals in the account during a calendar month should be converted into
rupees on or before the last day of the succeeding calendar month. This
account shall be maintained only in the form of non-interest bearing current
account. No credit facilities, either fund-based or non-fund based, shall be
permitted against the security of balances held in EEFC accounts by the AD
Category – I banks
2. Funds held in EEFC account can be utilized for all permissible current account
transactions and also for approved capital account transactions as specified by
the extant Rules/Regulations/ Notifications/ Directives issued by the
Government/RBI from time to time.

RFC (Domestic) Account:

1. A person resident in India can open, hold and maintain with an authorized
dealer in India, a Resident Foreign Currency (Domestic) Account, out of
foreign exchange acquired in the form of currency notes, Bank notes and
travelers cheques from any of the sources like, payment for services
rendered abroad, as honorarium, gift, services rendered in settlement of any
lawful obligation from any person not resident in India proceeds of export of
goods and/or services, royalty, honorarium, etc., gifts received from close
relatives (as defined in the Companies Act) and repatriated to India through
normal banking channels by resident individuals. Also the unspent portion of
foreign exchange availed for travelling purpose can be credited in this account
for use in subsequent travels abroad.
2. The account shall be maintained in the form of Current Account and shall not
bear any interest. There is no ceiling on the balances in the account.

Foreign Exchange Facilities for Resident Indians under Liberalized Remittance Scheme
Foreign Exchange can be released under Liberalized Remittance Scheme for
maximum amount of USD 2,50,000 per financial year to undertake a range of
miscellaneous non trade current account transactions for the following activities:

1. Private Visits: For one or more private visits to any country (except Nepal &
2. Business Visits and travel for international conference/seminar/ training
3. Employment abroad
4. Emigration to other country
5. Medical treatment

137 | P a g e
6. Education abroad
7. Gift/Donations
8. Maintenance of close relatives abroad

The permissible capital account transactions by an Resident individual under LRS are:

(i) opening of foreign currency account abroad with a bank, (ii) purchase of property
(iii)making investments abroad- acquisition and holding shares of both listed and
unlisted overseas company or debt instruments; acquisition of ESOPs (the Scheme is in
addition to acquisition of ESOPs linked to ADR / GDR and acquisition of qualification
shares); investment in units of Mutual Funds, Venture Capital Funds, unrated debt
securities, promissory notes;
(iv) setting up Wholly Owned Subsidiaries and Joint Ventures (with effect from August
05, 2013) outside India for bonafide business subject to the terms & conditions
stipulated in Notification No FEMA.263/RB-2013 dated March 5, 2013;
(v) extending loans including loans in Indian Rupees to Non-resident Indians (NRIs)
who are relatives as defined in Companies Act, 2013.

Out of the overall foreign exchange being sold to a traveller, exchange in the form of
foreign currency notes and coins may be sold up to the limit indicated below:
Travellers proceeding to countries other than Iraq, Libya, Islamic Republic of Iran,
Russian Federation and other Republics of Commonwealth of Independent States -
not exceeding USD 3000 or its equivalent.
Travellers proceeding to Iraq or Libya - not exceeding USD 5000 or its equivalent
Travellers proceeding to Islamic Republic of Iran, Russian Federation and other
Republics of Commonwealth of Independent States - full exchange may be

Documents for releasing Foreign Exchange

Passport & VISA, Form A-2 as per prescribed format and Application-cum-Declaration
purchase of foreign exchange under LRS as per format, PAN card.

Period of surrender of foreign exchange:

General permission is available to any resident individual to surrender received /
realised / unspent / unused foreign exchange to an Authorized Person within a
period of 180 days from the date of receipt / realization / purchase / acquisition /
date of return of the traveler, as the case may be.

However, a returning traveller is permitted to retain with him, foreign currency

travelers cheques and currency notes up to an aggregate amount of USD 2000
and foreign coins without any ceiling beyond 180 days.

Highlights of the scheme:

138 | P a g e
Remittance under this scheme is on a gross basis.
The facility is available to all the resident individuals including minors.
Remittances under the facility can be consolidated in respect of family members
subject to the individual family members complying with the terms and conditions
of the Scheme.
Remittances under the Scheme can be used for purchasing objects of art subject to
the provisions of other applicable laws such as the extant Foreign Trade Policy of
the Government of India.
Remittance against gifts and donations cannot be made separately and have to be
made under the LRS Scheme only and therefore no separate limits for gift and
donation are available.
The Scheme can also be used for remittance of funds for acquisition of ESOPs in
addition to acquisition of ESOPs linked to ADR/GDR and acquisition of qualification
A resident individual can invest in units of Mutual Funds, Venture Funds, un rated
debt securities, promissory notes, etc under this Scheme. Further, the resident can
invest in such securities out of the bank account opened abroad under the Scheme.
It is mandatory to have PAN number to make remittances under the Scheme and
the A/c Should be 6 months old. Separate Application cum declaration Form has
been devised for this remittance scheme.

Import of foreign exchange into India

A person on arrival in India, has to make a declaration to the Custom Authorities
at the Airport in the Currency Declaration Form (CDF) where the aggregate value
of the foreign exchange in the form of currency notes, bank notes or travellers
cheques exceed USD 10,000 (US Dollars ten thousand) or its equivalent and/or
the aggregate value of foreign currency notes (cash portion) exceed USD 5,000
(US Dollars five thousand) or its equivalent.

Baroda TravelEasy Card

Our Bank has launched a foreign currency pre-paid card viz. Baroda TravelEasy Card.
These cards have to be issued to resident Indians and are usable abroad for ATM cash
withdrawal and making merchant payments at physical/online stores from the loaded
Salient features of Baroda TravelEasy Card:
Issued in USD, EUR & GBP
Minimum load value - USD $200 or its equivalent foreign currency.
Maximum load value - as per extant FEMA guidelines based on the purpose of visit
Activation within 24 hours of purchase
Travelers are relieved of the risk of carrying cash & travelers„ cheque during foreign
Fees/charges are lower than applicable charges on domestic debit/credit cards used
Cards are valid for -3- years. In this period, the card can be reloaded
Cardholder will have access to 24x7 Customer Care team as well as secured online
portal for viewing their card balance and transaction details Accounting,
reconciliation and customer support shall be provided by the Operations team,
based at e-Business Department, in collaboration with the service provider
KYC, AML/CFT requirement are as per RBI guidelines
Cards cannot be used in India, Nepal & Bhutan

139 | P a g e
FEMA – (Foreign Exchange Management Act-1999).

All transactions in foreign exchange are governed by Foreign Exchange Management

FEMA came into effect from 1st June 2000 replacing the stringent and draconian FERA
of 1973 (Revised in 1993). The object of FERA was to conserve the foreign exchange
resources. The objective of enactment of FEMA, on the other hand, is to manage
foreign exchange resources and facilitate external trade and payments for promoting
the orderly development of foreign exchange market in India.

The difference between FERA and FEMA can be summarized as under: -

1. No. of 81 49
Sections sections sections
2 Presumptions of Mens Rea
. Features and Presumptions of Mens Rea and
Abatements Abatements excluded
3 Capital/Curren transactions These
. Definition of t , transactions/terms are well
Terms Person, defined
Service etc. not
Concept of
4 Concept authorized persons
. of was limited to ADs and Concept of authorized person-
include ADBank
Authorized AMCs d s,
Authorized moneychangers, and
Person off shore-banking
5 This definition is in harmony
. Definition of Resident/Non-Resident definition with
Resident different from in Income Tax Income Tax Act
. Nature of Violations are criminal offences Violations are civil offences
punishable imprisonmen punishable with monetary
Offence with t penalties

7 Sweeping powers to officer of Powers to arrest and

. Provision of ED imprisonment
to arrest a person alleged to Is restricted and prescribed only
Arrest have when one fails to
d offence under the pay monetary penalty
140 | P a g e
8 Could be as much as five times
. Amt. of the Decreased to three times the
amount amount involved in the
Monetary involved transaction
9 Impeded person did not have Impeded person has a right to
. Right of the take
right to take legal assistance legal assistance of Lawyer
Impeded of or
Person to take Lawyer or Chartered Accountant Chartered Accountant
10. Power of Sweeping powers Restricted powers
Police Officer
/ ED

141 | P a g e


Reserve Bank of India (RBI) has set up a Central Repository of Information on Large
Credits (CRILC) to collect, store and disseminate credit data to lenders.
Banks are required to identify incipient stress in the account by creating three sub-
categories under Special Mention Account (SMA) category

SMA sub categories Basis for classification.

SMA-0 Principal or interest payment not overdue for

more than 30 days but account showing signs
of incipient stress. ( Annex-1)
SMA-1 Principal or interest payment overdue
between 31-60 days.
SMA-2 Principal or interest payment overdue
between 61-90 days.

Joint Lenders Forum (JLF) – {Applicable for lending under Consortium and
Multiple Banking Arrangements (MBA)}
As soon as an account is reported by any of the lenders as SMA-2, they should
mandatorily form a committee to be called Joint Lenders Forum (JLF) if the
aggregate exposure (AE) [FB and NFB taken together] in the account is Rs. 100
Crore and above.
Lenders also have the option of forming a JLF even when the AE in an account is less
than Rs. 100 Crore and / or when the account is reported as SMA-0 or SMA-1.
Borrower may request the lender/s, with substantiated grounds, for formation of a
JLF on account of imminent stress.
All the lenders should formulate and sign an agreement incorporating the broad rules
for the functioning of the JLF. The JLF should explore the possibility of the borrower
setting right the irregularities / weaknesses in the account.
Corrective Action Plan (CAP) by JLF
The JLF may explore various options to resolve the stress in the account and to
arrive at an early and feasible solution to preserve the economic value of the
underlying assets as well as the lenders loans.

(a) Rectification
Obtaining a specific commitment from the borrower to regularize the account.The
commitment should be supported with identifiable cash flows within the required
time period and without involving any loss or sacrifice on the part of the existing
(b) Restructuring
Consider the possibility of restructuring the account if it is prima facie viable and the
borrower is not a wilful defaulter.
(c) Recovery
Once the first two options are seen as not feasible, due recovery process may be
resorted to. The JLF may decide the best recovery process to be followed among the
various legal and other recovery options available with a view to optimizing the
efforts and results.
Restructuring process
 If the JLF decides to restructure an account independent of the CDR
mechanism, the JLF should carry out the detailed Techno-Economic Viability
(TEV) study.
 For accounts with AE of less than Rs. 500 Crore the restructuring package
should be approved by the JLF and conveyed by the lenders to the borrowers
within the next 15 days for implementation.
 For accounts with AE of Rs.500 crore and above the TEV study and
restructuring package will have to be subjected to an evaluation by an
Independent Evaluation Committee (IEC) of experts.
 Asset classification benefit as applicable under the extant guidelines will
accrue to such restructured accounts as if they were restructured under CDR
 Restructuring cases will be taken up by the JLF only in respect of assets
reported as Standard, SMA or sub-standard by one or more lenders of the JLF.
 Wilful defaulters will normally not be eligible for restructuring.
 The viability of the account should be determined by the JLF based on
acceptable viability benchmarks determined by them.

Accelerated provisioning
In cases where Banks fail to report SMA status of the accounts to CRILC or resort to
methods with the intent to conceal the actual status of the accounts or evergreen
the account, Banks will be subjected to accelerated provisioning for these accounts
and / or other supervisory actions as deemed appropriate by RBI.

SMA-0 Signs of Stress
Illustrative list of signs of stress for categorising an account as SMA-0:
1. Delay of 90 days or more in
(a) Submission of stock statement / other stipulated operating control statements or
(b) Credit monitoring or financial statements or
(c) Non-renewal of facilities based on audited financials.
2. Actual sales / operating profits falling short of projections accepted for loan
sanction by 40% or more;
or a single event of non-cooperation / prevention from conduct of stock audits by
or reduction of Drawing Power (DP) by 20% or more after a stock audit;
or evidence of diversion of funds for unapproved purpose;
or drop in internal risk rating by 2 or more notches in a single review.
3. Return of 3 or more cheques (or electronic debit instructions) issued by borrowers
in 30 days on grounds of non-availability of balance / DP in the account or return of
3 or more bills / cheques discounted or sent under collection by the borrower.
4. Devolvement of Deferred Payment Guarantee (DPG) instalments or Letters of
Credit (LCs) or invocation of Bank Guarantees (BGs) and its non-payment within 30
5. Third request for extension of time either for creation or perfection of securities as
against time specified in original sanction terms or for compliance with any other
terms and conditions of sanction.
6. Increase in frequency of overdrafts in current accounts.
7. The borrower reporting stress in the business and financials.
8. Promoter(s) pledging/selling their shares in the borrower company due to
financial stress.

Joint Lenders‟ Forum Empowered Group (JLF – EG):

1. Sometimes Boards of the banks find it difficult to approve the decisions taken by
JLF as the JLFs do not have senior level representations from the participating
In this regard, RBI clarified that, although RBI has not explicitly prescribed the level
of representation in its guidelines, banks are expected to depute sufficiently
empowered senior level officials for deliberations and decisions in the meetings of
2. Nevertheless, JLF will finalise the CAP and the same will be placed before an
Empowered Group (EG) of lenders, which will be tasked to approve the
rectification/restructuring packages under CAPs. The JLF-EG shall have the following

 A representative each of SBI and ICICI Bank as standing members;

 A representative each of the top three lenders to the borrower. If SBI or ICICI
Bank is among the top three lenders to the borrower, then a representative of
the fourth largest or a representative each of the fourth and the fifth largest
lenders as the case may be;
 A representative each of the two largest banks in terms of advances who do
not have any exposure to the borrower; and
 The participation in the JLF-EG shall not be less than the rank of an Executive
Director in a PSB or equivalent.
The JLF convening bank will convene the JLF-EG and provide the secretarial support
to it.
Strategic Debt Restructuring scheme (BCC:BR:107:295 dated 18-06-
2015):In accordance with the general principle of restructuring and as directed by
RBI , the shareholders should bear the first loss instead of the debt holders. To
ensue more involvement and ownership of the promoters in the business /project,
JLFs CDR cell may consider following options at the time of restructuring of the

 Possibility of transferring equity of the company by promoters to the lenders

to compensate for their sacrifices.
 Promoters infusing more equity into their companies
 Transfer of the promoters holding to a security trustee or an escrow
arrangement till turnaround of company. This will enable a change in
management control, should lenders favour it.
Branches/Regions/Zones are advised to take note of the guidelines given in the
circular and which have been issued by RBI in order to further empower the lenders
to curb the rising NPA menace in the banking industry. Staff at all levels should
endeavor to make best use of guidelines and keep a close watch on
accounts/JLFs/CDRs where Bank may invoke such provisions and initiate prompt
action for appropriate decisions an implementations
Prudential Norms on change in ownership of borrowing entities (outside
strategic Debt Restructuring Scheme) (BCC:BR:107:579 dated 24-11-
2015):In order to further enhance banks‟ ability to bring in a change in ownership of
borrowing entities which are under stress primarily due to operational/ managerial
inefficiencies despite substantial sacrifices made by the bank, RBI has permitted
allow banks upgrade credit facilities extended to borrowing entities whose ownership
has been changed outside SDR, to Standard category upon Such change in
ownership, subject to certain guidelines which are detailed in the circular.

Mandatory time lines for restructuring of Advance A/cs as per the revised
restructuring framework of RBI(BCC:BR:107:493 dated 05-10-2015): In the
respect of NON – CDR restructuring cases, the time for approving the restructuring
package by the JLF would stand as 15 days only instead of 30 days.

Therefore, the total time for CDR cases is:

 For aggregate Exposure (AE) above Rs. 500 crore and above – 307 days
 For aggregate Exposure (AE) upto Rs. 500 crore – 255 days
For Non CDR cases:

 For aggregate Exposure (AE) above Rs. 500 crore and above – 285 days
For aggregate Exposure (AE) upto Rs. 500 crore – 240 days

Definition of Lender

The term “lender “covers all banks/FIs to which any amount is due, provided it is
arising on account of any banking transaction, including off balance sheet
transactions such as derivatives, guarantees and letter of credit.

Definition of Unit
The term “unit “includes individuals, juristic persons and all other form of business
enterprises, whether incorporated or not. In case of business enterprises (other than
companies), bank /FIs may also report the names of those persons who are in
charge and responsible for management of affairs of the business enterprises.

Wilful Defaulter
Considering the concerns over the persistence of wilful default in the financial
system, Reserve Bank of India has put in place a system to disseminate credit
information pertaining to wilful defaulters for cautioning banks and financial
institutions so as to ensure that further bank finance is not made available to them.
Enforcing such provisions also help the Bank in credit discipline and creating a
Recovery climate.
Though the guidelines inter alia the penal measures as indicated herein above
normally are applicable to all the borrowers identified as wilful defaulters.
The system of reporting with the cut-off limits of Rs. 25 lac and above has been
introduced. The present guidelines are as follows:

Definition of wilful default

The term “wilful default” has been redefined in supersession of the earlier definition
as under:
A “wilful default” would be deemed to have occurred if any of the following events is
 The unit has defaulted in meeting its payment / repayment obligations to the
lender even when it has the capacity to honour the said obligations.
 The unit has defaulted in meeting its payment / repayment obligations to the
lender and has not utilised the finance from the lender for the specific
purposes for which finance was availed of but has diverted the funds for other
 The unit has defaulted in meeting its payment / repayment obligations to the
lender and has siphoned off the funds so that the funds have not been utilised
for the specific purpose for which finance was availed of, nor are the funds
available with the unit in the form of other assets.
 The unit has defaulted in meeting its payment / repayment obligations to the
lender and has also disposed off or removed the movable assets or immovable
property given by him or it for the purpose of securing the facility/ies without
the knowledge of the bank/ lender.

A non performing asset (NPA) is a loan or an advance where;

 interest and/ or installment of principal remain overdue for a period of more
than 90 days in respect of a term loan,

 the bill remains overdue for a period of more than 90 days in the case of bills
purchased and discounted,

 the installment of principal or interest thereon remains overdue for two crop
seasons for short duration crops,

 the installment of principal or interest thereon remains overdue for one crop
season for long duration crops,
State Level Bankers‟ Committee decides the pattern, season, nature,
etc. of crops.

 in respect of derivative transactions, the overdue receivables remain unpaid

for a period of 90 days from the specified due date for payment.

 In case of interest payments, banks should, classify an account as NPA only if

the interest due and charged during any quarter is not serviced fully within 90
days from the end of the quarter.
 the account remains „out of order‟ in respect of an Overdraft/Cash Credit
 An account should be treated as 'out of order' if the outstanding balance
remains continuously in excess of the sanctioned limit/drawing power for 90
days. In cases where the outstanding balance in the principal operating account
is less than the sanctioned limit/drawing power, but there are no credits
continuously for 90 days as on the date of Balance Sheet or credits are not
enough to cover the interest debited during the same period, these accounts
should be treated as 'out of order'.
 Credit Card Account : IF the amount due is unpaid for 90 days.
Non-Financial Reason (Technical Reason):
 stock statements relied upon by the banks for determining drawing power
should not be older than three months. A working capital borrowal account
will become NPA if such irregular drawings are permitted in the account for a
continuous period of 90 days even though the unit may be working or the
borrower's financial position is satisfactory.
 An account where the regular/ ad hoc credit limits have not been reviewed/
renewed within 180 days from the due date/ date of ad hoc sanction will be
treated as NPA.
Asset Classification to be borrower-wise and not facility-wise except the bills
discounted under LC favoring a borrower may not be classified as a Non-performing
assets (NPA), when any other facility granted to the borrower is classified as NPA.

Advances under consortium arrangements

Asset classification of accounts under consortium should be based on the record of
recovery of the individual member banks.

Project Loans: There are occasions when the completion of projects is delayed for
legal and other extraneous reasons like delays in Government approvals etc.
 Project Loans for infrastructure sector
 Project Loans for Non-infrastructure sector

 The revised DCCO falls within the period of two years from the original DCCO
stipulated at the time of financial closure for infrastructure projects
(including commercial real estate projects).
 The revised DCCO falls within the period of one years from the original DCCO
stipulated at the time of financial closure for Non-infrastructure projects.

Infrastructure Projects involving court cases

Up to another two years (beyond the two year period i.e., total extension of four
years), in case the reason for extension of DCCO.

Infrastructure Projects delayed for other reasons beyond the control of

promoters (Other than Court Cases): Up to another one year (beyond the two
year total extension of three years)

Project Loans for Non-Infrastructure Sector (Other than Commercial Real

Estate Exposures) Up to another one year (beyond the one year period total
extension of two years).

The asset classification benefits provided are not applicable to commercial real
estate sector.

It is re-iterated that a loan for a project may be classified as NPA during any time
before commencement of commercial operations as per record of recovery (90 days
overdue). Further, Restructuring is subject to the condition that the application for
restructuring should be received before the expiry of period

Government guaranteed advances:

 The credit facilities backed by guarantee of the Central Government though
overdue may be treated as NPA only when the Government repudiates its
guarantee when invoked.
 State Government guaranteed advances and investments in State Government
guaranteed securities would attract asset classification and provisioning norms if
interest and/or principal or any other amount due to the bank remains overdue
for more than 90 days.
 However, in both cases it will attract income recoginition i.e. accounts will cease
to generate income.

Advances against Term Deposits, NSCs, KVPs/IVPs.

 Advances against term deposits, NSCs eligible for surrender, IVPs, KVPs and life
policies need not be treated as NPAs, provided adequate margin is available in
the accounts.
 Advances against gold ornaments, government securities and all other securities
are not covered by this exemption.

Reversal of income: If any advance, including bills purchased and discounted,

becomes NPA, the entire interest accrued and credited to income account in the past
periods, should be reversed if the same is not realised. This will apply to
Government guaranteed accounts also.

Total Contractual Dues:
 Sum total of balances outstanding in the various accounts of the borrower
including outstanding in Term Loan, Cash Credit, BP, BD, Advance Bill A/c.
Bills Past Due A/c, etc.
 Plus Amount of Interest reversed from interest suspense
 Plus Unapplied interest at contractual rate of interest from date of
cessation of interest to date of actual recovery proposed as per
compromise proposal,
 Plus Amount of Legal Expenses and security expenses etc. already
incurred and debited to P/L a/c, if any.

Net Book Dues:

 Balance outstanding in the various accounts of the borrower
 Less amount outstanding in interest suspense account
 Minus Margin money (excluding margin against non-crystallized non-
funded facilities) etc. kept in current a/c, Time Deposit a/c or any G/L a/c
and the recoveries kept separately in any account or the retainable portion
of claims received from DICGC, ECGC, CGFTI etc.
 Except Sums accepted by bank under „No Lien‟.

 Value of Securities should not be 1 year old at the time of considering
Compromise Proposal.
 For property/ Assets having individual value of Rs. five crores & above,
valuation should be obtained from two approved Valuers independently.
 Fair Market Value only to be Considered not distress value for Compromise.

Net Present Value for Compromise Proposal: For calculation of NPV discount
rate at 12% p.a. should be applied.
Application of Interest Rate on Compromise Proposal: Minimum interest that
may be acceptable to the bank is preferred not below 12% p.a., from the date of
cessation of interest till the date of repayment.

Takeout Finance: Under this arrangement, the institution/the bank financing

infrastructure projects will have an arrangement with any financial institution for
transferring to the latter the outstanding in respect of such financing in their books
on a predetermined basis. However, it will not affect IRAC norms and will be
applicable from the date of NPA irrespective of handing over or taking over bank‟s
balance sheet.

Diversion of Fund

 Utilization of short-term working capital funds for long-term purposes not in

conformity with the terms of sanction;

 Deploying borrowed funds for purposes / activities or creation of assets other

than those for which the facility was sanctioned;

 Transferring funds to the subsidiaries / Group companies or other corporate

by whatever modalities;

 Routing of funds through any bank other than the lender bank or members of
consortium without prior permission of the lender;

 Investment in other companies by way of acquiring equities / debt

instruments without approval of lenders;

 Shortfall in deployment of funds vis-à-vis the amounts disbursed / drawn and

the difference not being accounted for.

Siphoning of funds:

 If any funds borrowed from banks / FIs are utilized for purposes un-related to
the operations of the borrower, to the detriment of the financial health of the
entity or of the lender.

 The CDR mechanism will cover only multiple banking

accounts/syndication/consortium accounts with outstanding
exposure of Rs.10 Crores and above by banks and institutions

 Reference to Corporate Debt Restructuring System could be triggered by

(a) any or more of the secured creditors who have minimum 20% share
in either working capital or term finance, or (b) by the concerned
corporate, if supported by a bank or financial institution having stake as in
(a) above.

 BIFR cases are not eligible for restructuring without their express approval.

 The borrowers indulging in frauds and malfeasance will continue to remain

ineligible for restructuring.
 No account will be taken up for restructuring by the banks unless the
financial viability is established

Hand Holding Operation:

While identifying and implementing rehabilitation package, “hand holding operation‟
for a period of six months may be considered. This will allow small scale units to
draw funds from the cash credit account at least to the extent of their deposit of sale
proceeds during the period of such „holding operation

All reliefs and concessions in a rehabilitation / restructuring proposal shall be subject
to right of recompense which shall be duly quantified and incorporated in all
proposals for the purpose of recovery upon the unit restoring health. Normally, right
of recompense shall not be exercised within the first 3 years of
implementation of the restructuring /rehabilitation. However, if the borrower
prepays the Bank‟s dues or pays dividend to share holders this right may be
exercised even within –3- years.
No power to waive RIGHT OF RECOMPENSE upto Zonal Office.


For effecting recovery received in NPA LOAN accounts, Branch should use only
the menu ―NPATM‖ at the time of recovery.
Further if recovery is received by way of clearing cheque, for direct credit to loan
account, then the proceeds should be first credited to either operative
(SB/CA/CC/OD) or GL Intermediary account and thereafter credited to respective
loan account by using ―NPATM‖ menu.
For NPA CC/OD accounts etc., Branches should continue to use the existing
options i,e. TM, HCASHDEP, HXFER etc. The reversal of unrealized interest if any
will be handled through monthly batch job and Branches need not do any such
reversal manually.

Appropriation of Recoveries in NPA accounts.

In respect of existing NPAs where suit is not filed, recoveries effected in the account
( Including recovery under Pubic Money Recovery Act ) from time to time shall be
appropriated in the following manner.

i) Towards reduction in Book Dues.

ii) Towards recovery of expenses.
iii) Towards unapplied interest.

Recovery in suit filed/decreed accounts shall be appropriated first towards legal

charges/expenses awarded by the court, there after interest due and finally principal

Record of Unapplied Interest /charges

Branch shall maintain a record of unapplied interest and other charges at contracted
rate and update the same at periodical intervals.

Insurance Charges, Assets Valuation charges, Stock Audit Charges, Security
Charges etc.

In respect of NPA accounts, which are not operated, the above mentioned charges
shall not be debited to the accounts. The expenses incurred shall be debited to the
Bank„s Profit and Loss account and record of the same shall be maintained.

Appropriation of Fixed Deposits of NPA Borrowers (free from margin) to the

concerned NPA loan accounts (BCC: BR: 108:68 dated 06-02-2016): Bank
has advised to all branches to appropriate fixed deposits of NPA borrowers
(free from margin) to the concerned NPA Loan accounts.

Recording follow up status for NPA and PNPA accounts in Finacle:With a view
to record follow up made by field staff for recovery in NPA and PNPA accounts our
data centre has provided the functionally to record follow up actions with menu id

“Write –off” of unrealized export bills- Compliance of Foreign Exchange

Management Act 1999(BCC: LCB: DFB: 108 / 15 dated 22-02-2016):
According to Reserve Bank of India circular No. A.P. (DIR Series) 88 dated
12.03.2013 and our circular No. BCC: WB: DFB: 105/20 dated 14.03.2013 regarding
simplifying and liberalizing the procedure for write-off of unrealized export bills, the
following would not qualify for the “write-off” facility:

a. Exports made to countries with externalization problem i.e. where the overseas
buyer has deposited the value of export in local currency but the amount has not
been allowed to be repatriated by the central banking authorities of the country.

b. GR/ SDF forms which are under investigation by agencies like Enforcement
Directorate, Directorate of Revenue Intelligence, Central Bureau of Investigation, etc
as also the outstanding bills which are subject matter of civil /criminal suit.

Human Resource Management

Bank of Baroda has the tradition of continuous enrichment of its human assets so
that they deliver value to the business.

In the ongoing Business Transformation Programme, our people play a vital role and
are one of the key business enablers. Under its plan of organizational transformation
through people processes and systems, the Bank has launched various innovative
employee centric initiatives and has also undertaken revamp of key systems and

HR Objectives

To initiate & institutionalize globally competitive HR practices in the Bank in our

pursuit to become a Bank of international standards and to become an employer of
preferred choice:

To put in place relevant HRD strategies and use modern methodologies to undertake
organizational renewal; identify and nurture talent, bring about marked changes in
the mindset of employees at all levels so as to enhance HR Quality;

To create a performance-driven culture and an exciting workplace for the employees

To create a pool of entrepreneurial managers and business leaders for future;

To inculcate a strong and effective sales and service culture across levels in the
organization in order to generate strong stakeholder affiliation;

To create a learning organization for employees‟ intellectual growth and creativity;

and to re-skill the workforce to operate in digitally enabled modern core banking

HR Initiatives

People oriented Deployment, Promotion and selection policies

Bank has formulated and put in place well documented and comprehensive
deployment, promotion and selection policies oriented towards identifying the best
talent and providing opportunities for fast-track growth and development. Some of
the prominent HR policies put in place are:

 HR Resourcing policy
 Promotion policy for officers
 Transfer policy for officers
 Promotion policies for clerical and subordinate cadre
 Overseas selection policy

Talent identification & grooming programmes

Various programmes are being run by the Bank for grooming of officers in
specialized areas of Credit, Forex, Treasury / Dealing, Wealth Management, for
grooming of Branch heads, etc.

HRNes (Human Resource Network for Employee Services)

To take full advantage of technology for enhancing operational efficiency in HR

Processes, Bank has introduced a comprehensive web-enabled Human Resources
Management System called „HRnes‟ (Human Resource Network for Employee


 To facilitate bringing technology in HR and thereby brining benefits of

technology such as reduction in cost and time by eliminating routine tasks and
improving operational efficiency of HR Processes by creating central
database and online applications.
 Ensure complete control, Mgmt & monitoring of HR data on near real time
 Providing employee Self Service/manager Self Service/Facility for online
 Bring about transparency in HR operations across the organization;
 Cost effective HR administration;
 To plug the revenue leakage;
 Harnessing the power of workflow to speed up HR processes

"HRNes" covers the entire gamut of human resources management function in the
Bank currently being performed and also includes many new sub-functions. It
comprises of four broad modules encompassing different functions:

 Oracle Core HR Module, covering all current HR processes in the Bank;

 Fluous Payroll Module, - centralized payroll, payments of various benefits,
perks, welfare schemes, terminal benefits, etc.;
 Employee Self-Service Module.
 Oracle Learning Management Module which includes training administration &

Various E-Learning modules are gradually being put on the system for employees to
avail of and undergo these courses.

Employee performance management system

A new Performance Management system has been formulated and implemented for
all officers. The new system enables a holistic approach to the issue of managing
performance and does not limit to only an appraisal. It starts from performance
planning and Goal-setting and takes it forward into performance review discussions,
feedback and development. The new system is business-linked, highly objective and
fully transparent, with individuals owning and managing their own performance

APAR (Annual Performance Appraisal Review)

In terms of Ministry of Finance, Govt. of India advice, Bank has adopted the revised
Annual Performance Appraisal Report (APAR) for different categories of officers with
a view to bring in uniformity in the performance assessment of officers at various
levels in all PSBs, especially with regard to evaluation of different parameters and
marking systems.

PASAS (Performance Appraisal System for Award Staff)

`Performance Evaluation' and `Performance Recognition' have been the focus of

various HR initiatives taken by the Bank. Keeping in view its importance and
criticality to various employee development initiatives, Bank devised a Performance
Appraisal System for Award Staff (PASAS). It is 3 tiered performance appraisal

1. Self Appraisal by the individual employee (This is optional)

2. First review by Reviewing Authority (RA)
3. Second and Final Review by Final Reviewing Authority (FRA)

The Broad Objectives of the Performance appraisal system are:

 To promote a performance oriented culture

 To identify good performers and talent amongst employees
 To improve upon strengths
 To identify employees for proper placements
 To match job roles of individuals during job rotation exercise for effective
utilization of aptitude and potential.
 To identify Training needs

Uses and Advantages of Performance Appraisal System for Award Staff:

 To generate a performance oriented culture.

 To identify factors that hinders performance and reduces them as far as
 To identify training and developmental needs.
 To identify exceptional talents for special assignments.
 To identify high performers and groom them for higher order roles.
 To facilitate comprehensive data base on information about award staff.
 To provide feedback to the employee to help achieve better performance in

The Performance Appraisal System for Award Staff shall cover:

 All clerical staff (including those having combined designations and also all
those drawing any Special Pay)
 All full-time subordinate staff (including staff having combined designations
or drawing any Special Pay)

The performance appraisal shall be 3-tiered:

Self Appraisal by the individual employee (This is optional)

First review by Reviewing Authority (RA)
Second and Final Review by Final Reviewing Authority (FRA)

Project Sparsh- Human Touch for Business Excellence

Project SPARSH a focused HR project, has been undertaken by Bank engaging

services of ―The Boston Consulting Group (BCG) to revamp our HR processes,
structures and policies and to create an integrated HR framework.

Under Project SPARSH, bank has covered:

 Manpower
 Training and development
 Incentives to staff
 Talent management and
 Performance management.

A few of the initiatives taken by bank under the project SPARSH:

Inauguration of HR shared services pilot back office at Baroda (HRCPC)

Bank‟s career portal
On-boarding scheme for newly recruited officers
Employee‟s survey
Baroda Academy

Baroda Sujhav (

Idea channels for eliciting new ideas from employees with structured rewards
provisions for the best ideas.

In the context of technology driven business, Staff Suggestion Scheme has been
titled as ―Baroda Sujhav. The Scheme is applicable to all employees. The objective
of the Scheme is to encourage the ideation process amongst staff members to offer
innovative suggestions which are in tune with
Bank„s priorities and concerns, Customer Service and its effectiveness.


Our bank‟s vision envisages providing not only a healthy work-life but also a
satisfying personal and social life to our employees. With this objective in mind,
Paramarsh Centre at BCC have started personal counseling for employees for
providing psychological assistance and guidance to overcome their stress,
complexities and conflicts in order to lead a better life.

It is a progressive, far sighted and proactive step taken by bank to ensure that our
employees can lead happy and satisfied work life through personal counseling for
psychological care from trained and experienced clinical psychologist.

Streamlined Induction schedule for all new joinees

Bank has put in place a well-defined and properly structured induction programme,
phase-wise for different batches of directly recruited officers, campus recruitees and
newly recruited clerks, which is imparted through a mix of classroom and on-the-job

Role-change programmes and executive development programmes

Executive Development programmes are being regularly conducted for newly

promoted senior and top management people in conjunction with leading Business
schools like ISB, Hyderabad, MDl, Gurgaon, National Institute of Bank Management,
Pune, etc.

Role change programmes are being conducted for newly promoted employees at
Bank's internal training establishments which give them inputs on behavioral issues,
soft skills, team work, leadership, etc. besides ways on how to cope with the
challenges of the new role better.

Baroda Manipal School of Banking

Bank of Baroda has entered into an MOU with Manipal Education and opened
“Baroda Manipal School of Banking”. It conducts a dedicated one year diploma
program for training students in various areas of Banking and Finance.

On successful completion of the course, the students are awarded a post graduate
diploma in Banking and Finance from Manipal University and are absorbed in the

Bank as Probationary Officers, fully trained and ready to deliver from the first day

The thrust of the training is to impart functional as well as specialized knowledge

on Banking and related subjects. Participants are put through on- campus
curriculum spread over 9 months (divided into 3 semesters of 3 months each).
Training at the school is supplemented with practical training at branches of
Bank of Baroda through a focused 3 - months internship.

The campus is at Bangalore.

Mobile Snippets:

For sharing industry related and bank specific information with employees, Bank has
launched an application “Mobile Snippets” for android phone users. The application
can be installed on android phone using the following link:

The application is available on Google Play Store also. There are nine Sections in
Mobile Snippets:

1. News – Collection of important banking news published in various

2. Events – Photographs along with description in respect of important
events that took place in branches, regions, zones and central office
3. Announcements – Announcements in respect of future events.
4. BoB Circulars – Gist of important BoB circulars on fortnightly/ monthly
5. RBI Circulars - Gist of important RBI circulars fortnightly/
monthly basis.
6. Messages – Video messages from higher authorities/ video of any event.
7. Publications – Various publications from Apex Academy, Vigilance, Marketing
8. e-Library – Power Point presentations and quiz on important topics
for creating awareness.
9. a.Feedback – Users may provide feedback.
b.Image upload – Users may upload image at their end for including in
Events section
c.Video Upload-Users may upload important even for sharing with all users.

All the staff members who have their mail address in HRNES entered, are
automatically registered in the system.


“Employee Engagement Survey-2016” was launched on 22.02.2016.

Message of MD & CEO on the subject:

“As we march forward to realize our aspirations and dreams to take our Bank
to further heights, it is imperative that our team is truly energized and fully
engaged. Each member of the Barodian family makes a difference and plays a
unique role in our quest to achieve business excellence and customer delight.

Towards this endeavor, the Bank seeks to understand your perspective,

thoughts, perceptions and opinions on a wide range of matters that impact you
such as Job Role, Rewards, Recognition, Working Conditions, Performance
Appraisal, etc., which will help us, define the HR transformation journey for the
Bank. The Bank has partnered with Aon Hewitt, a global leader in human
resource consulting solutions, for conducting Employee Engagement Survey

The survey was through online link in HRnes-HRMS under the Employee Self
The survey was for the purpose of identity authentication. Response to the
questionnaire was directly sent to Aon Hewitt with full anonymity and it was
assured that responses would remain completely confidential to feel free to air
individual‟s thoughts. The feedback would be collated by Aon Hewitt and will be
shared with the Bank‟s leadership team on a consolidated basis.

It was reiterated that the views and feedback are very important as bank
strongly believes that the ideas play a key role in helping strengthening our
organization. And also that the information obtained from this study will be
used to shape the organization‟s HR policies and programs going forward.

E-learning course - “Code of Conduct for Officers”

Baroda NetAcademy launched a course on „Code of Conduct for Officers‟. The course
aimed to familiarize all officers with various guidelines of code of conduct policy for
officers of our Bank.

Salient features of the course:

 Duration of the course - 45 minutes approx

 The course might be stopped at any time in between and learner could start it
again from that point
 It got quizzes during the course and self assessment of 10 MCQs at the end
 Learner has to score 100% in the self assessment to complete the course.
Product/ Eligibility Margin Rate of Repayment
Purpose Interest Remarks

USPs(In red ink)

Two Wheeler 5 times of GMI 10% on T/W - 1 Max. 60EMI Age-Min.- 21 yrs, Age+repayment
Loan (Salaried) for invoice value year 12 PDC be period not to exceed 70 yrs. if age is
others - average MCLR + taken. > 65 yrs, Co-borrower should be
of last 2 years strategic taken preferrably a family member
GAI be Primum + Repaying Capacity: T/W Total
considered for 4% For deductions including proposed EMI
arriving staff / ex not to exceed - MI < 20000 p.m. -
proportionate staff : 1 50% of GMI, GMI Rs. 20000/- and
monthly year above but less than Rs. 1 lac- 60% of
income. Max. 1 MCLR + GMI, GMI Rs. 1 lac & above - 70%
lac SP Fresh of GMI. Processing Charges –TW -
Car Loan-For Salried Person: Loan to value sanctions Max. 84 2% of loan amt. Min. `1000/- +ST .
purchase of GMI (avg of 3 ratio on road w.e.f. months. Car Loans --0.50% Mi. 2500/-, Max.
New car, jeep, m)< Rs. 50K - price is based 1.4.16 only `10000/-+ST, Saff/Ex staff - No
station wagon 24 times of on car to appl. charges. Insurance: Comprehensive
etc for private GMI. GMI > segment & With with Bank Clause. • Concession of
use. 50 K but < Rs. income level CIBIL 0.25% in interest rate on car loans is
1.50 Lacs - as per score of available to all our existing home
30 times of annexure 760 & loan borrowers having a good track
GMI GMI > below. above. record of repayment, without any
Rs. 1.50 lacs On Road price Interest overdue in a/c
- 36 times of includes rates for • 0.50% concession in rate of interest
GMI Invoice price, Car loan on car loan if liquid security like
Others: Road tax, based on pledge of FDR, NSC,KVP, LIC is
4 times of GAI Registration CIBIL provided for 50% or above amount of
(Avg of last 2 charges, & Bureau sanctioned limit. (BCC:BR:103:27
yrs) Insurance score as dated 25.01.2011) 1&2 above subject
Max. Rs. 100 excluding below. to condition that applicable ROI not
lac (for all cost of fall below base rate.
Categories) accessories. • Life Insurance cover is available
LA-101/106 with Kotak LI & IFLI at the cost of
borrower which may be refunded by
Bank and is recoverable with EMIs of
loan (BCC:BR:104:62 dated
• Staff may also avail TW/FW loan
under public scheme subject to
vigilance clearance.
* Prepayment charges: Prepayment
within 6 months - 4% of outstanding
as per original repayment/EMI
schedule. Prepayment after 6 moths -
Repaying Capacity - Car Loan :

Total deductions including proposed EMI should not exceed as
follows: Salaried Persons: (Average of last 3
months) GMI < Rs.50000/-
p.m. - 60% of GMI
GMI > Rs.50000/- p.m/ but < Rs.1.50 lacs - 70% of GMI
GMI > Rs. 1.50 lacs - 80% of
GMI For Others:
Average AI (for last 2 years) < Rs. 6 lacs - 60%
Average AI (for last 2 years) > Rs. 6 lacs - 80%
Deductions to be considered from last months GMI (for salaried)
or last year annual income (for others). If agariculture income is
declared in IT return same may be considered for eligibility.
 Facility of printing a Certificate on completion of the course.

Loan to Value ratio (LTV) based on Car Segment & Income level

S Type Lenth of GMI < 50000 GMI Rs. 50K GMI Rs. 1 lac & Model
e Car & above but above
g < 1 lac
t Margin LTV Margin LTV Margin LTV
A Mini Up to 20% 80% 10% 90% 5% 95% Maruti 800, Omni, Spark,
1 4000 Santro, Nano, Alto, Beat,
mm I10, Estilo, Ritz, Wagon R,
Micra, Indica, Vista, Polo,
Brio, Jazz, I20, Figo, Swift,
Pulse, Fabia, Aveo-UVA, Evo,
Avventura, Eon, Indigo,
Etios, Liva, Crosss, Baaleno,
Celerio, Sail-UVA, Punto,
A Compact >4000 20% 80% 10% 90% 5% 95% Swit Dzire, Manza, Logan,
2 & Midsize mm to Aveo, Optra, Cruze, Fiesta,
4500mm Linea, Asprire, Amaze, Honda
city, Accent, Etios, Creta,
Verna, Verito, Scala, SX4,
Sunny, Vento, Sail, Enjoy,
Laura, Rapid, Vibe.
A Executiv 25% 75% 15% 85% 10% 90% Corolla, Octavia, Superb,
3 e & >4500 Camry, Sonata, Optra, Civic,
Premium mm to Accord, Elantra, Endeavour,
5000 Jetta, Passat, Fluence
A Luxury 25% 75% 20% 80% 15% 85% Audi, Porsche, BMW,
4 Mercedes, Volvo, Jaguar,
Bantley, Rolls Royce
B MUV/ 25% 75% 20% 80% 15% 85% Innova, CRV, Tavera, Sumo,
1 MPV/ Vitara, Xylo, Captiva, Duster,
SUV Ecosport, Santa Fe, Quanto,
Rexton, XUV500, Grand,
Victra, Duster, Safari,
Storme, Fortuner, Scorpio,
Virata, S-trail, Teana,
Landcruiser, Mobilo,
Endeavour, Bolero, Gipsy,
Ertiga and other

Baroda Traders Loan

Eligible amount n Rate of Interest Repayment Remarks / USPs (in Red ink)

20% of accepted 10% Based on inter nal OD-1 yr Individual, Prop./Part. Established in line
Projected sales or Our Risk rating: For subject to of business for min.2 yrs, should be Profit
60% of realizable Bank‟s BTL1/BOB1 to review. making.
value of property FDR BTL4/BOB4-MCLR Loan – Regd. Co-operative societies are eligible
which ever is lower- 15% 1 year+SP+1.50% Max.5yrs but HUF & Public limited co.s are not
Min. Rs 2 lac (R/SU) face For BTL/BOB5 & depending on eligible)
& 5 lacs (U/M value BTL/BOB6- 1 year repaying Age of Property not more than 25 yrs.
branches) NSC or MCLR+SP+2%, capacity For W/c &/or Development of shop up to
Max.` 1crore in 15% of for below BTL/ 25% of W/C limit sanctioned Credit rating
rural, SU-3 surren BOB6 in new BTL Model, Min. BTL6, up to 200
crores,.5 crore in der MCLR1Year+SP+ lac. Lt >200 lac – rated on BOBRAM. at
Urban and Metro Br. value 2.50%. No fresh the time of fresh sanction as well as
10 crore. of LIC. exposure<BTL6 review.External credit ratingning to be
40% done when exposure exceeds 5 crore.
on Obtaining Financial statements is
realiza dispensed with, only declaration on
ble annual sales supported by
value Return/Assessment of ST is required.
of However obtain if Financial statement are
immov mandatory by statue, Stock statement
able once in a year as of last Friday of
propert February. Undertaking to exclusively deal
y as with our Bank to obtain.
recent Unified Processing 0.35% of Loan/OD
valuati with out any Max. Minimum Rs 7500/-
on (Upfront) per property. Review
If Charges: In case of T/L, D/L - No
propert charges however in case of Overdraft a/c
y is processing charges as mentioned abover
purcha to be recovered.
within Mortgage creation charges as per
last 3 extant guidelines will be applicabe.
its Preclosure within 12 months of initial
registr sanction - 2% , however after 12 months
ation - Nil.
Value. Commitment charges: 0.50% for
utilization of limit below 75%( On
quarterly average basis) in case
sanctioned limit is 500 lacs & above.In
case of
take over the entity must also satisfy
Current ratio : Min. 1.17:1 Debt
Equity Ratio : Maximum 6:1 besides
compliance of T/O norms.
Against Security of Gold Ornaments /Jwellery/Gold Coins
20% of the 25% Base Rate Loan : max. Unified Processing Charges: 0.50% of
projected annual on the plus 2% i.e. 12m from dt of loan limit minimum Rs.2500/- plus
turnover or 75% of present 11.65% at sanc. service tax. Assayer‟s Charges @250/-
the market value of market present. Overdrafts : per lac - to be borne by the borrower.
the gold ornaments value 12 months Security: 22 carrot hall mark
assessed by Bank‟s of the subject to ornaments/jwellery/gold coins specially
approved valuer. Gold annual review minted and sold by
Min.50,000/- Max.` Ornam banks.*BCC:BR:106:36 dt. 31.1.14.
1 lacs*LA 177 OD ents/ Advance value of gold has been fixed at
018 Gold Rs. 2018/- per gram for 24 carat purity

coins with a provision for reduction in valuation
assess by Rs. 85/- per gram for every carat
ed by reduction.As such Advance Value per gm
the for 22 carrot purity is fixed at Rs.1850/-
Bank‟s (BCC:BR:108:217 dated 16.5.2016)
Modifications in security Norms in BTL-107/23 dt 14.1.15. Check list for all credit proposals introduced w.e.f.
1.4.15 (BCC:BR:107/141 dt. 30.3.15)

Eligible amount
Rate of Interest Repayment
8 Times of 40% in case of Reside/ 2% over Base Rate 12 months subject to
commission/broke commercial propery or 50% annual review.
rage/Aarath in case of Plot of land, 10% in
received/earned as per case of our Bank's FDR or
last audited balance 15% of value of NSC/
sheet or 8 times of surrender value of LIC
such average income policy/Govt Bonds etc.
for last three years
whichever is less. OR
Advance value of Im.
Property Bank's
FDR/LIC/Govt. Bonds
Minimum Rs. 25000/-
sub to Maximum:
Rs.100 lacs for R/
SU/U. Rs. 200 lacs for
Metro Branches.

Product/Purp Eligible amount Margin Remarks

ose USPs (In red ink)
Advance Min. 2.00 lac Max. for all categry Metro 40% on realizable Eligibility: Salaried
against Branches: Rs. 10 crore Urban Branches: value of all type of /Professional/ Self
Property to Rs. 5 crore S/U Branches: Rs. 3 crore property. If property employed & others who
Residents/ Rural Branches: Rs.25 lacs Minimum is purchased within are income tax assesse
NRI/PIOs/ Gross Annual Income (GAI) should be Rs. 3 lacs last 3 years, the for last 3 yrs. Minimum
Professionals Salaried: registered value Gross annual Income –`3
GMI up to Rs 75000/- 30 times of GMI, GMI should be considered. lac. NRI holding Indian
>75000/- up to 3 lac - 48 times of GMI, GMI > 3 In case of plot of land Passport having a regular
Overdraft/ lacs - 60 times of GMI. it should be job or valid job contract
Term loan Others: GAI up demarcated/ for min. past 2 yrs. Min.
to Rs. 5 lacs: 5 times of GAI, GAI > 5 lacs up to 8 identifiable by GAI ` 5 lacs. Staying
ML (Gen) lac : 6 times of GAI, GAI > 8 lacs: 8 times of GAI boundaries. abroad for at least 2 yrs
LA201 For salaried Average of last 3 months GMI and for Age– 21 yr. Max. Age –
others Average of last 3 years GAI. If In case limit >1 crore, 60 yrs (customer‟s
ML (NRI) agriculture/any other regular income is declared in 2nd valuation of age+tenure of loan/
LA202 IT return same can be considered for elig. propery be also overdraft not to exceed
Iincome of co-applications can be combined for obtained. Lower of 65 yrs. NRIs are not
OD 016 higher eligibility however number of co-applicants two valuations to be eligible for OD limit .
whose income is considered for eligibilty to be considered while Existing staff not eligible.
restricted to 3. calculat ing the limit. Unified Processing
Charges : Loan1% Min. `

7500/- (Upfront) Max.`
150000+ST. OD limit
(Fresh/Renewal) up to 3
crore -0.35% of limit
Max. 75000/- +ST. above
3 crore - 0.25 of limit
without any maximum.
Min. `7500-+ST
ges as per extent g
Age of building not to
exceed 25 yrs. Security:
EM of residential/
commercial property/plot,
up to 10 lac no PG. Third
party guarantee if over
`10 lac.
Activity clearance for
sanction of new or with
increase proposal, is
required to be obtained
from RH for facilities up
to 3 crore and for
facilities beyond 3 crore
ZH are authorized to
grant activity clearance.
SMS & CPC have been
kept out of purview of
activity clearance.
*For Professionals
classified as MSME (Under
extended definition) there
is separate scheme
“Baroda Professionals”
Where in limit min. 10
lac and

Product/Purpos Eligible Margin Rate of Interest Repayment
e amount Remarks USPs (In red
Baroda Vidya Max. ` 4 Lac. Nil BV & BG-Up to 12 EMI - Due 3 stages(i)Nursery-5th
(School (For all 7.50 lac - 12m after 1st class, (ii) 6th-8th class &
Education) stages) MCLR+St disbursemnt (iii) 9th-12th classs. (iv)
Premium + Evening courses of
2.50% Above institutes approved by
7.50 lac MCLR State/ Central Govt. No
+ str Premium minimum qualifying
+ 1.75% marks. Should have
Baroda Scholar secured admission in
List A & B recognised inst. Loan in
institues: MCLR the name of Father /
+ SP + 1% Mother No Processing &
Other Inst.: not Documentation charges
specified in list No Security
Baroda Gyan Max. `10 lac Up to A&B MCLR + Max.10-15 Meritorius students
(Study in India) `4 lac- SP +2.50% - yrs** (Qualified in management
Nil, 0.50% conces. inst to quota seat) also
Baroda Scolar Rs. 60 lac for
Above (wef 1.10. 13) commence one eligible.(BCC dt3.12.12)
(Study abroad) list A & B
`4 lac- for Girl Student. yr after compl Security : upto `4 lac.- Nil
5% additional of Course or 6 Above `4 lacs-`7.5 lac-
“Padho Rs. 40 lacs for
(for concession of months after Third party Guarantee.
Pardesh” for institu. Not
study in 1% if interest is getting job, Above `7.5lac-100%
students of specified in
India), serviced which ever is Collataral security. For
minority list A & B.
15%(fo regularly during earlier. studies in India No
r moratorium Up to 7.50 lac - Processing &
studies period.* 120 Documentation charges
59 dt. 15.9.14)
Abroad instalments, however for studies abroad
) >7,50 lac 180 @1% of loan amt,
instalments- maximum 10000/- to be
BCC:BR:103/3 recovered upfront which
43 dated shall be refunded if
30.11.2011. applicant avails loan..
Kotak life Insurance (wef
1.12.08) cover up to `20
lac. EL >10 lac -
Application can be made
on line. “Teacher training
course/B.Ed will be
eligible, provided training
institutes are approved by
State or Central
government and lead to
Degree or Diploma and
not a certificate course. –
BCC:BR:102:108 dated
12.04.10. On line

application may be made..
Spl. Ed.L scheme under
Baroda Gyan for students
of Asia Pacific Flight
Training Academy Ltd
(APFTL) for commercial
Pilots License (CPL) &
Private Pilots License
(PPL) courses. Limit- Rs.
25 lac, ROI upto 10 lac
BR+2% >10 lac
447 dt9.10.13
*Additional concession of
1% in ROI for servicing
interest during repayment
holidays for loans
sanctioned till 30.9.13
(Not available to new
loans sanctioned
Processing 1% (to be
recovered upfront and
refunded on availment (
1st disbursement) of loan.
Baroda Educaton Loan for
students of Premier
Institutions (Studies in
India) both up to and
above Rs. 10 lac -
Nil..Baroda Edu. loan for
vocational Edu and
Training - Nil, Career
development - 0.50%. A
non refundable lum sum
amt Rs. 7500/- per
property towards advocate
and valuer charges to be
taken upfron, in case of all
education loans wherever
property is mortgaged.
However No Mortgage
Creation charges for all
type of Education loans
loan for career Max. `10 lac 15% MCLR+SP+ Max. 60 EMI Applicant should be
Development (For studies in (Any 2.75% Course period resident indian, secured
India) `20 Scholar +6month+3mo admission in course
Lacs ship etc nth through entrance
(For studies will not test/Merit based selction
abroad) be process.For persuing
include Higher Education in India

d) or abroad or for vocational
courses/training but are
gainfully employed.
-0.5% of loan amount.,
Security : 100% collateral
in the form of mortgage of
Property of assignment of
security like
Guarantee of Father/
Mother of applicant or
other person having
sufficient worth..
Disbursement before grant
of VISA to students
pursuing courses in
Australia &New Zealand
is allowed.
(BCC:BR:107/162 dt.
Baroda Skill For course run 10% MCLR+SP+ Moratorium – ame in to effect from 1st
Loan Scheme by IITs, 1.50.% for Courses up Oct.2015
Politechnics,, to 1 yr-6m > Eligibility: Have secured
Schools/ 1yr.-12m admission in a course
Colleges Repayment – 2 approved/supported by a
recognised by to 7 yrs subject Ministry/Deptt./Organisati
state /Central to amount of on of the Govt. or a
Govt. loan. company/Society/Organisa
affiliated to Repymet - 3- tion supported by National
NSDC 7yeras Skill Development
Rs. 5000 to Corporation or state Skill
1.50 lac Mission/State Skill
corporations leading to a
e etc by Govt.
Organisation or an
organization recognized/
authorised by Govt. to do
so. NSC included -.
dt.12.3.14. Processing
Charges - NIL. Other T/Cs
same. For more details Pl.
refer - BCC:BR:107:447
dated 14.9.15
Baroda Ed / L List-A - 15 Nil List A- Upto 15 Up to 7.50 lac - New schme under Baroda
for Students of lac / 30 lac lac, - MCLR 120 Gyan for students secured
Premier List B- 7,50 + SP+0.25% instalments, admission in full time
institution in lac / 30lac >15 Lac- Ø >7,50 lac regular courses in premier
India LA - 159 Without/with MCLR+ SP, 180 instalments institutions, Institutions

security List B – Up to Listed under category A
7.50 lac,- & B (Cir, No.
MCLR+SP+0.7 BCC:BR:106:152
5% > 7.50 lac- dt.26.4.14 Unified
MCLR+ processing charges – up to
SP+0.5% 10 lac – Nil, > 10 lac –
0.50 % (Refundable after
availment of 1st
instalment). Security – for
insti. Under list A - upto
15 lac – Nil, > 15 lac –
100% Tangible co-lateral
security. For institu. Under
list B – up to 7.50 lac –
Nil, > 7.50 lac – 100%
Tangible Co-latera;
security For other T & C
ref. cir.

Product/Purp Eligible Margin Rate of Repaym Remarks
ose amount Interest ent USPs (In red ink)
Loan for 5 times of Loan Sanction 60 EMI Age –Min. 21 years. Max..Age of borrower
Consu mer GMI or forConsu ed on of plus repayment period not to exceed
Durables/ PC/ Max. `1 Lac mer after retirement age (Salaried class) & 65 yrs, for
Laptop Whichever Durables 01.07.10 self employed/ professional, except for
is lower & loan for Base Pension loan
Personal Loan 6 times of Earnest Rate 36 EMI Eligibility*: (a) Permanent confirmed
GMI money +4.50% employees of Central/State Govt./Autonomus
Max. `2 lac Deposit i.e bodies/ Public/ Joint Sector undertakings,
10% 14.15% Reputed Limited Co./MNCs and Educational
Institutions with minimum 1 year service (b)
loan for 8 times of PC/ Lumsum Self Employed Professionals with minimum
Earnest gross Laptop Base in one year stable busines. (c ) Insurance
money monthly Rate 6 Agents doing Ins. Busness for last 5 years &
Deposit income or 25% +3.25% months A/c with us for credit of comm.
90% of i.e Processing Charges 2% of Loan amount
application 12.90% Min.` 1000/- +ST , Maximum.- 10000/-
money or Security: 3rd party guarantee If stipulated in
Max. `5 lacs, sanction.
which ever is loan for Earnest money Deposit : Eligible
lower under our HL guidelines and agreeable to
take HL from our bank
Processing 0.35% of loan amt. +ST.
Life Insurance cover is also available to
Personal loan borrowers on cost which may be
funded by Bank and is recoverable with EMI
of loan –( BCC:BR:104:62 dated 14.02.12)
0.50% concession in ROI on loans for
consumer durables to Home loan borrowerer
Baroda 24times of N.A. For 84 Eligiblity: Permanent confirmed employees of
Premium Net MI sub. Repaying Categor months Central/State/Autonomous Body/Public/ Joint
Personal Loan to Max. 10 Capacity - y- A: sector undertakings, Reputed Limited Co. /
for Salaried lac (for Total Base MNCs and Reputed
Employees Category A) deduction Rate Universities/Colleges/Schools/Educational
(BCC:BR:105 or Max. 5 lac s +3.00% Institutions/Research with minimum one
:477 dated (for including i.e, year of confirmed service. (Employees of
31.10.13) category- proposed 12.65.% Proprietorship, Partnership firms and Pvt.
LA158 B)*, EMI at Ltd. companies are not eligible) Employees
should not present maintaining any Salary linked Loan/
exceed For Overdraft accounts with any Bank are not
60% of Categor eligible for this Scheme. Staff members are
GMI y- B: not eligible. Age – Min.21 yrs Max. not to
Base exceed Retirement age.
Rate + For *Category- A: Minimum Net Monthly
4.00% Income (NMI) of the employee should be
i.e, Rs.10,000/- For Category- B* Minimum Net
13.65.% Monthly Income (NMI) of the employee
at should be Rs. 15,000/- UPC – 2% Min.250/-
present +ST. Processing as above for Personal loan.
Baroda Home Max. upto LTV on In case New Exclusively for Home Loan Borrowers along
Loan the applicab- cost of Baroda Borrowe with Home Loan for funding the premium
Suraksha le premium project for Home r - Max. amount under Group Credit Life insurance
Personal Loan amount for home Loan up to 1/2 cover provided by LIC & M/s Kotak

(BCC:BR:107 Group Credit loan. Advanta of Mahindra Old Mutual Life insurance company
/61 dated life insurance ge - HL repayme Ltd. Age: as applicable under HL.. Security:
20.2.15) LA - cover. OR Up to 75 nt period Extention of Mortgage. Unified Processing
185 within lacs under Charges - Nil
LA-186 (Non overall Base HL.
resident) eligibility of Rate Existing
borrower like > 75 HL
income lacs borrowe
criteria, o.25% r-
repayment over Residual
capacity etc. ROI period of
which ever is applicab HL
lower. le to
HL -
* Category A - with check off facility i.e deduction of loan isnstalment from salary by Employer. Category B -
Without Check off facility.

Product/Purpose Eligible amount Age

Rate of Remarks
Interest USPs (In red ink)

Baroda Loan to 18 times of Min - Base Rate Regular pn/ Eligiblity: Regular
Pensioners monthly pension 21 yrs + 2 % i.e. family pen. Pensioners/Family Pensioners
Revised scheme with a ceiling of Max. 11.65% at For age drawing pension through our bank's
(BCC:BR:107/158 : 75 yrs present. upto 70yrs - branches. Pensioners who are getting
dt. 1.4.15 Regular For retired 60m for age their pension disbursed through
Pensioners: for employees >70 yrs - 36 Treasury/Defence Pension
age up to 70 yrs of BOB/ m Disbursing office (DPDO) directly to
- 8 lacs their the credit of their SB a/c with our Brs
above 70 yrs - family Pensioners/Family Pensioners of our
5 lacs For pens BR Bank. Spouse authorised to receive
Family i.e.9.65.% pension after death of pensioner,
Pensioners for from our Branch/ Pensioner should
age up to 70 yrs be drawing pension through the
- 3 lacs age branch at least for last 3 months and
above 70 yrs - his accouj should have been
1..50 lacs Tota conducted satisfactorily i.e no return
lmonthly of cheque for financial lreasons.
deductions Unified Processing Charges:
including Pensioners/Family Pensioners of our
proposed Bank : Nil. Others: Rs. 1000/-
EMIshould not Security Personal guarantee of wife if
exceed 60% of alive or of the oerson nominated to
monthly receive the pension. Assignment of
pension. existing LIC Policy if available.
Credit rating will be done as per
existing guidelines. Cut off score is
30 & investment grade is CL 7 &
above. Scheme Code FINACLE: LA

147 ASCROM: 63

*Baroda Personal Loan - Modification in eligibility Parameters - (a) Permanant confirmed employees of Central/
State Govt./ Autonomus Bodies/ Public/Joint sector undertakings. Limited Co./ MNCs and Educational Institutions
with minimum one year service. Employees of Proprietorship & Partnership firms are not eligible however Zonal
authority is authorised to give deviation to consider sanction of Personal Loan to Employees of Private Limited
companies subject to certain conditions and allowed for 6 months at present and the same should be reviewed after
six months for continuation of the scheme guidelines (BCC:BR:107/160 date 1.4.2015). Deviations continued with
modification like now Regional authority is authorised to approve deviation, Pvt. Ltd co. with min. 2 yrs deposit
relationship with our Bank or any credit relationship (except LABOD/ODBOD), Individual applicant satishfying the
eligibility criteria maintaining salary a/c and gives an ir-revocable standing instruction for auto recovery of
instalment. (BCC:BR:108/50 dated 29.1.2016)

Important Menu options for Inquiry & Reports – FINACLE

 Balancing Report (BR/QBR) : This menu option is used for generation of

account wise balances. The report can be generated for a specific SOL/ Set ID
as on any date. Also report generation can be for a specific GL subhead/ range
of GL subheads.
 Generate Reports (GR) : Auditor can generate Balance sheet (BS) and Profit
and loss (PL) at present. Please generate them with Net balance as “N” and
for currency „BLANK‟ to get balance sheet of all currencies converted into
 Inter-sol transaction Report (ISTR) : The report is useful for the auditor to
analyze all the Inter-sol transactions initiated by the SOL on other SOLs
and/or by other SOLs on this SOL. Report can be generated for a date range/
specific date.
 Inter-sol Audit Report (ISAR) : Similar to the Inter-sol transaction report,
auditor can also generate the Audit report for all non-financial transactions
handled across SOLs.
 Charges Income report (CHGIR) : This menu option can be used for
generating charge income report for a specific date/ date range and specific
customer-ID/ Customer-ID range.
 Customer Selection (HCUS) : Based on a criteria. Inquiry can be made on
the customer master records.
 Account Selection (HACS) : Based on a specific criteria, inquiry on accounts
can be done by invoking the menu option HACS.
 Account Selection Print (ACSP) : This menu option is really powerful. User
can choose his own criteria to get variety of reports.
 Cheque book issued register printing (CHBIR) : A report of all cheque
books issued to customers can be generated by executing the menu option
 Account Balance inquiry (HACCBAL/ACCBAL) : This menu option may be
utilized for variety of inquiry option for a customer/ account.
 Account Ledger inquiry (ACLI/HACLI) : Detailed account statement is
available here.
 Account below minimum balance (ABMR) : Invoking the menu option,
user can get the report of all accounts below minimum balance.
 Account turnover inquiry (ACTI) : The turnover details of an account can
be displayed by executing the menu option ACTI. The user can explode the
individual transaction (Using ctrl+E) and see the transaction details.
 Account Master Print (ACMP) : The print of all the details of an account or
set of accounts can be got by executing the report option ACMP.
 Customer Account Ledger Print (ACLPCA) : The ledger print of a range of
accounts can be got by executing the menu option ACLPCA
 Office Account Ledger Print (ACLPOA) : The ledger print of a range of
can be got by executing the menu option ACLPOA.

 Customer Interest Print (CUIR) : A customer wise interest report can

be generated
by executing the menu option CUIR.

 Customer Master Print (CUMP) : Execution of the menu option CUMP

generates a print out of all customer master information.
 Rejected instrument report (REJREP) : Printing of advice and schedule of
rejected instruments.
 Bills inquiry (BI/FBI) : Used to inquire on domestic and foreign bills.
 Loan Overdue position inquiry (LAOPI) : Auditors may inquire on overdue
position according to asset classification.
 Asset Classification Report (ASSCR) : It gives the information about asset
classification between the given date range and also has the facility to give
detailed as well as summarized information.
 Report of credit transactions to assets (CTRA) : Menu option CTRA is for
getting all customer accounts with cumulative interest suspense amount being
 Limit Tree Lookup (LTL) : This option can be used to inquire into various
limit nodes and their details such as node id, description and limit sanctioned
at the node level and liability.
 Limit Node details inquiry (LNDI) : In this menu option, the user can get
information about the accounts that are linked to a particular limit node.
 Limit liability inquiry report (LLIR) : Through LLIR menu option user can
inquire account liability including sanction limit, drawing power and TOD
amount between range of dates. You may explode with value “D” & “S” which
will bring HACLHM screen to see more details.
 Customer unutilized limit inquiry (CULI) : In the menu option CULI, the
details of the limits created for the customer and the amount utilized can be
inquired upon for a customer across accounts. It may be exploded to see
more details.
 Limit Node history/ Trans inquiry / Report (LNHI) : It is possible to
have the history of limit node transactions through this menu. This will allow
the user to inquire on the limit node balance as of any earlier date. The user
will also be able to inquire on all transactions that have happened on a limit
node over a given period.
 Collateral Register Lookup (CLL) : This option allows the user to inquire on
the various accounts/ limit nodes linked for a particular security. The user will
be able to get a consolidated view of security wise exposure of the Bank.
 Customer Limit Details (HBKQRY) : Customer limits can be inquired with
the help of HBKQRY menu option. Enter the customer ID and click on submit
button to get the report.
 Limit Node Details (HACLHI) : Limit node details can be inquired with the
help of HACLHI menu option. Click on limit node details link. Enter the cust-ID
and limit node and submit.
 Customer security details (HACLHI) : Customer security details will also
be available with the same menu HACLHI.
 Insurance Details (HACLHI) : Same menu is used.
 Limit tree details (HACLHI) : Same menu is used.
 Inquiry on TOD (HACTODM,ACTODI,TODM,HTODCS) : Inquiry into the
TODs sanctioned can be done using the menu HACTODM, TODM with function
as “I”. It can also be done with ACTODI for inquiry only. Inquiry can be done
based on the status of the TOD – Future dated, interest collected, expired,
regularized,un-regularized. Inquiry can be done based on the event type also.
The various event types are TODIC, TODDS, TODTM, TODIN, TODDL, TODCL,
TODSI, TODLP, TODBH and TODMN. Inquiries through TM are not allowed
after the transaction is posted. It can be done through HACTODM, ACTODI
 TOD Register Printing (TODRP) : This menu option will enable the user to
generate TOD register. Three event based maha-reports (mrt) are available,
one for expired TOD, another for non-expired TOD and the other one is event
based TOD printing.
 Amount wise distribution of deposits (FDD) : This menu will facilitate
generation of flow amount wise distribution of deposits during a specified date
 Distribution of deposits (RDD/MDD/SDD/RDI) : A consolidated report of
scheme wise/ rate wise/ maturity period wise distribution of deposits and rate
wise distribution of interest paid report based on various selection parameters
can be generated using these menus.
 Account Balance Details (ACDET) & General Deposit Details (GDET) :
Menu options ACDET and GDET may be used to generate various account wise
reports based on several selection parameters. The screen interface is same
for both the menu options.
 Related Accounts Lookup for Deposits (RELACI) : This option is useful to
know what the links to the existing account are. For example, if an account is
renewed 5 times and user is interested to know the details of all the 5
renewals, then he can specify any one account and make a search for both
forward and backward linkage.
 Irregular Recurring deposit report (IRRDEP) : This menu can be used for
generating a report of irregular RD a/cs based on various criteria. This is
useful for monitoring irregular deposits.
 Deposit Transaction Report (DTR) : This menu can be used to display the
transaction details of the TD accounts flow code wise. In case of TD accounts
with customer level TDS calculations, it is possible to view the ultimate
interest credit account for IO type of accounts.
 Pending Installment List (PLIST) : Facility is provided to generate the
details of pending installments in case of RD accounts. This provides for report
generation based on various selection parameters.
 TDS inquiry & Printing (HTDSIP) : This may be used for TDS inquiry and
printing of TDS summary.
 Transaction inquiry (TI/HFTI/TRANINQ) : Using TI the user can do an
inquiry on a transaction. For this he should know the transaction ID and date
of transaction. With HFTI user can choose criteria for selecting the record.
With TRANINQ financial transactions can be inquired based on certain criteria.
 Inquire on transaction (HIOT) : In case of transactions to pointing type of
accounts opened under OAP scheme type, at the time of putting through
contra entry, system accepts additional details as to which transaction the
reference has to be done. Those references indicated during contra
transactions with full particulars at a future date. In order to view those
information/details, the user has to invoke the above menu option.

 Financial Transaction Report (FTI/FTR) : This is a report that is provided
as a part of Financial transaction inquiry. User can explode to get more
details. The user will be taken to the option block of INTSI menu option from
where he can view credit slabs, debit slabs, General details, version details.
 Interest Table inquiry (INTTI) : This query is used to know various interest
table codes, base rate, preferential rate, pegged flag and effective date
attached to an account.
 Interest Slab inquiry (INTSI) : User can get the details on various interest
tables and can choose from the list.
 Interest table code inquiry (ITCI) : This inquiry is used to see the version,
slab for a given interest table code.
 Account interest details inquiry (AITINQ) : This inquiry gives details
about the accrual, booking and interest calculation done for an account
including the date up to which it has been run and on which date process has
been carried out. Explode option is available.
 Inland/ Foreign Bills event history inquiry (BEHI/FBHI) : The event
history inquiry (both inland and foreign bills) displays the effective interest
rates for various events.
 Customer interest preference and Peg report (CIPPRPT) : With the help
of this menu, the user can know which are the accounts for which review of
pegging should be done in the near future. Selection can be made between
customer/accounts and indicate the period.
 Interest report for accounts (AINTRPT) : This menu can be used to
generate report of interest calculation as on any date for an account.
 Interest proofing (INTPROOF) : This menu option provides a facility to
exactly simulate the interest calculation for the account by specifying original
interest run end date. This menu option is applicable only for SB/CA/CC/OD
scheme types of accounts. The report generated is similar to ACINT report.
Interest proofing will take care of recalculation of only one cycle.
 Customer interest Report (CUIR) : This report gives details of interest paid
and collected account wise. This report can be generated for a service outlet
or a set ID based on customer, foreign party code for a range of dates.
 List of overdue and matured forward contracts (FWCODLST) : This is
used to generate a report about FWC which are overdue or those maturing at
a specific future period.
 Export Register Report (FBER) : Using this option user will be able to take
report of all the bills lodged in a particular register. For import bill use FIBR.
 Foreign bills to be de-linked statement (FBDLNK) : User will be able to
generate a report about the bills which are due for de-linking on a particular
day, using this option. Report can be generated for a future date also.
 List of pending and dishonored Bills (FBPADB) : User will be able to take
print of bills which are pending/ dishonored, as on a particular date. While
executing the option user will be able to specify the criteria with regard to age
of the bill.
 ECGC charge details (FBECGC) : It is possible to automate the calculation
of ECGC premia. The premium is calculated on the BP account balances at the
end of the month. To consider an account for ECGC charge calculation, the
„ECGC appl ind‟ at the account level should be „Y‟. The premium is calculated

based on the amount slab specified during execution of the option FBECGC.
The amount slab is created through ASTM option.
 Foreign Bill inquiry (FBI) : This is general purpose inquiry screen which the
user can utilize to gather information on various selection criteria.
 Multi-tenor Bill print (MTBP) : This menu option is used to generate a
report for multi-tenor bills.
 Inquiries on Documentary Credits (DCQRY) : Various DC related query
report is available with this menu.
 Guarantee Inquiry (GI/GMM) : If the guarantee number is known GMM is
used otherwise use GI. Various selection criteria are available.
 Customer wise guarantee inquiry (CUMM) : Use sub option „B: with
CUMM to view all partitioned account details belonging to this customer.
 Deferred Payment Guarantee Register (DPGR) : This menu will print the
register for a given currency and within a date range.
 BG Margin Printing (BGMARGIN) : This report gives all margin details for
all overdue guarantees satisfying the selection criteria.
 Limit/Guarantee wise utilization report (BGLIMIT) : This report gives
details regarding limits used by guarantees meeting the selection criteria.
 Guarantee issue cum liability Register (GILR) : Selection criteria
available are cust-ID, issue date, expiry date and claim date.
 Statement of Guarantee (BGSTMT) : This report gives details of all
transactions that have taken place for the guarantees meeting the selection
 Customer Selection (HCUSEL) : You can search for the customer on the
basis of name, short name, native language name, e-mail id etc.
 Accounts of Customer (HCUACC) : This screen displays all the accounts of
the customer where customer is either the main or the joint holder. Radio
button is available to see the closed a/c also.
 Summary details of customer (HCUSUM) : The summaries screen for the
customer shows the entity wise summation of the balances, interest and
charges. The interest and charges are YTD figures.
 Forthcoming maturities of customer (HCUMAT) : It summarizes the
maturities under the heads specified till the given date. Each of them is a
hyperlink to the accounts/ entities specified. Default display is for all the
existing entities. The To date is defaulted as BOD + 1 month and is
 Turnover summary of customer (HCUTI) : A summary of the turnovers
for all the entities owned by a customer are displayed. From date and to date
is mandatory with a maximum gap of one month. The figures for
SB/CA/CC/OD are shown only if ATO is maintained for the accounts of the
 General details of customer (HCUDET) : General information like address,
status, constitution, occupation, date of birth, PAN, short name, mobile no.
will be displayed.
 Sweep details of customer (HCUSWP) : A customer can maintain more
than one pool of accounts. This report may be available pool wise and
currency wise.
 Portfolio details of customer (HCUPSD) : This menu will indicate the basic
set up for customer parameter like address type (C/P/E), Loan statement
(D/S/N), Charges ID, statement frequency, statement branch, dispatch mode,
sol-id, scheme code, account number, status, relation etc.
 Savings account of a customer (HCUSB) : This option will list all the
savings account of the customer including the closed account. The user can
select an account and drill down by clicking one of the hyperlinks on the top
 Current Account of a customer (HCUCA) : This menu option will list all the
current account of the customer. Closed accounts also may be seen. The A/c
will be seen sol-id wise. The user can select an account and drill down by
clicking one of the hyperlink on the top box.
 Term deposit account of a customer (HCUTD) : This menu option will list
all the deposit account of the customer including the closed a/c – SOL-ID wise
with the option of exploding.
 Loan account of a customer (HCULA) : This will list all the loan account of
a customer including closed a/c. It will be sorted sol-ID wise and may be
drilled down by clicking the hyperlink.
 Overdraft account of a customer (HCUOD) : This menu will list all the
overdraft account of a customer. Closed a/c may also be seen.
 Cash credit account of a customer (HCUCC) : This screen will list all the
cash credit account of the customer. The account list has a radio button for
seeing closed account. The account will be sorted by SOL-ID. The user can
select an account and drill down by clicking one of the hyperlinks on the top
 Trade Finance details of a customer (HTFIN): There will be six sub-option
like Imports, Exports, Inland (DC & Bills), Forward contracts, Bank Guarantees
and remittances. Each sub option leads to a filtration screen, which is
associated with that particular product.
 Inquiry on Limits and margins (HBKQRY): This menu option is used to
inquire on customer limit details, limit node details; customer collateral
details, insurance details and Limit tree look up. The relevant field in each
case will be populated.
 General details of ac account (HACCDET) :
 Transaction inquiry (ACLI/HACLI): Default 10 transactions will be seen.
The transactions are ordered by Tran date with the last transaction first. Each
transaction may be exploded.
 Account Turnover details (HACTI): This menu option will show details only
if ATO is maintained for the account, else a message is given “Account
turnover not maintained”. The turnover is ordered by start date. Highest
balance, lowest balance, average balance, total Dr. and Cr. Interest will be
available in this report.
 Term deposit transaction details (HTD): Fields like original amount,
Present balance, Lien amount, Total interest payable, Maturity value; Tenor,
Maturity date, Interest rate, Tran type, Tran amount, Interest rate, Tran date,
Value date etc. will be displayed.
 Balance details of an account (HACCBAL) : You will get the information on
the following- clear balance amount, sanction amount, utilized amount, Lien
amount, Overdue liabilities, System reserved amount, Adhoc limit, Running
limit, Single transaction limit, funds in clearing, float balance, drawing power,

available amount, Effective available amount etc. Related information on
various other types of A/cs (TD etc.) will also be available.

This menu option is having several sub menu options where various screen like
Loan General Details inquiry, Repayment schedule inquiry, Loans ledger inquiry,
Loan interest inquiry, Loan charges inquiry, Loan message inquiry, Loan
document inquiry all will be available.

In addition to the above, more reports are available under BOBMNEU options
which are useful for monitoring purpose.

Report Menu Details

BOBMENU -> Error/Warning Reports->

A/Cs opened during the period for any List of opened accounts during a period.

BOBMENU -> Misc. Downloads &

List of advances / Deposit accounts with
Reports -> A/Cs Having Account
details of account preferential ROI
Preferential ROI

BOBMENU -> Misc. Downloads &

List of accounts with Customer
Reports -> A/Cs Having Customer
preferential ROI
Preferential ROI

BOBMENU->Misc. Downloads &

Cash Handling Charges Report
Reports->Cash Handling Charges

Report Menu Details

ACDREV Accounts Due for Review Report

AINTRPT Interest Report for Accounts

ALMSP Agriculture Loan Master Sheet Printing

ASSCR Asset Classification Report

BARPTS Bank Advances Report

BICR Bill Interest Collected Report

BINTRPT Interest Report for Bills

CERSAIRP CERSAI Mortgage Status Report

Report Menu Details

Report on Interest adjustment due to

IARMREP various reasons (like value dated
transactions, Limit History change etc)

LADML Loan Disbursement Letter


LAMP Loan Account Master Printing

LAODR Loan Overdue Demand Reminder/Report

LAODRPT Loan/CC/OD Accounts Overdue Report

LAPOSR Loans Collection and Position Report

LLIR Limit Liability Inquiry Report

Report Menu Details

Limit Node History/Transaction


NOBL No Objection Letter


SLNOVRLPT Staff loan accounts with details of overdue

BOBMENU -> Daily Report->

Intersol Debit TXNs IN List of intersol transactions in CC accounts
CC Accounts

List of Edu. Loan accounts where

BOBMENU -> Error/Warning Reports->
repayment started but Interest on Interest
Edu. Loans where Int. on Int. Flag is „N‟
Flag is „N‟

Report Menu Details

Accounts detail (Sanction limit,

BOBMENU → Misc. Download → Outstanding amount, Effective interest
ACCOUNT WISE INTEREST REPORTS rate, Account / Limit level flag, NPA class)

BOBMENU → Misc. Download →
CC / OD account interest failure report

BOBMENU → Misc. Download →

Loan account interest failure report

BOBMENU -> Error /Warning

List of advances accounts giving details of
Reports -> Limit/DP/Review
Limit / DP/Review date change.
Date Change Report

BOBMENU -> Error /Warning

List of LABOD accounts with details of FDR


List of all advances accounts with interest
collection flag set as „N

BOBMENU → Daily Reports Overdrawn / Excess report (Outstanding

→Excess/Overdrawn Reports only)

Report Menu Details

DAYBOOK Cashbook

EXCPRPT Exceptional Transaction Report

GR Generate Report - GL & PL

ISTR Inter Sol Transaction Report

MCBL Multi Currency balance Sheet

SUPPLE Supplementary

Report Menu Details

SUSPTRAN Suspected Transaction Report

TODRP TOD Register Printing

NEWACTR New Account Transaction Report

BOBMENU-Error /Warnings-Account Accounts to be done HLARA for

Due for Reschedulement moratorium period is over

Some of the Transaction Banking Products can be taken from our Bank‟s
Knowledgement portal under the Head BCC-Transaction Banking-Documents.