Professional Documents
Culture Documents
CLERK Study Material
CLERK Study Material
The decision of the MPC is consistent with a neutral stance of monetary policy
in consonance with the objective of achieving the medium-term target for
consumer price index (CPI) inflation of 4 per cent within a band of +/- 2
per cent, while supporting growth.
High Level Task Force on Public Credit Registry for India
• To constitute a High-level Task Force comprising experts as well as major
stake-holders to (i) review the current availability of information on credit
in India; (ii) assess the gaps that could be filled by a comprehensive
Public Credit Registry (PCR); (iii) study international practices; and, (iv)
suggest a roadmap, including the priority areas, for developing a
transparent, comprehensive and near-real-time PCR for India.
Issue of Comprehensive CIRs by CICs
• The Reserve Bank to direct Credit Information Companies (CICs) to
incorporate all the credit information available in the CIC database in the
Credit Information Reports (CIRs) furnished to Credit Institutions (CIs).
RBI’s Surveys of Households
• The Reserve Bank to expand the coverage of Inflation Expectation
Survey of Households (IESH) to rural and semi-urban areas; and increase
the coverage from 6 cities to 13 cities, in case of the Consumer
Confidence Survey (CCS).
Tri-party Repo
• The Reserve Bank to introduce tri-party repos, that will likely contribute
to better liquidity in the corporate bond repo market, thereby providing
markets an alternate repo instrument to Government securities repo.
the feedback, the Tri-Party Repo (Reserve Bank) Directions, 2017 have
been finalised.
The Reserve Bank on August 2, 2017, directed all credit information companies
to ensure that the credit information report (CIR) in respect of a borrower,
furnished to the credit institutions (CIs), incorporates all the credit
information available in all modules, for example, consumer, commercial
and micro finance institutions (MFIs), etc., in respect of the borrower.
The Reserve Bank on August 16, 2017 conveyed to the commercial banks that
the Government of India has approved the implementation of the Interest
Subvention Scheme for the year 2017-18 for short term crop loans up to `
3.00 lakhs with certain stipulations. All lending banks are, therefore,
advised to send the eligible pending audited claims of 2015-16 latest by
August 31, 2017 and give adequate publicity to the ‘Interest Subvention
Scheme for Short Term Crop Loans’ so that the farmers can avail the
benefits.
After a review, it has been decided that the Reserve Bank will continue not to
issue LCs on behalf of the government and will not act as an issuing or
advising bank for government as far as transactions related to BGs are
concerned. The government department concerned would be directly
taking up the matter with any commercial bank identified by them and all
matters concerned with the issuances of LC should be dealt with by the
government and the commercial banks, without involving the Reserve
Bank. The role of the Reserve Bank is strictly limited to reimbursement of
payments made by the banks for such LCs/BGs on behalf of the
government, after satisfying itself with the debit mandate given by the
government. Further, the Reserve Bank may not issue any letter
RBI introduces `200 and `50 Denomination Banknotes in Mahatma Gandhi (New)
Series
The Reserve Bank of India introduced `200 and `50 denomination bank notes in
the Mahatma Gandhi (New) Series, on August 25, 2017 and August 18,
2017, respectively. Banknotes of both the denominations have the
signature of Dr. Urjit R. Patel, Governor, Reserve Bank of India.
Rs. 200
Size: 66 mm × 146 mm
• Theme: Motif of Sanchi Stupa on the reverse, depicting the country’s
cultural heritage
• Colour: Bright Yellow
• For visually impaired: Intaglio or raised printing of Mahatma Gandhi
portrait, Ashoka Pillar emblem, raised Identification mark H with micro-
text `200, four angular bleed lines with two circles in between the lines
both on the right and left sides
Rs. 50
Size: 66 mm x 135 mm.
• Theme: Motif of Hampi with Chariot on the reverse, depicting the
country’s cultural heritage.
• Colour: Fluorescent Blue
Third party breach where the deficiency lies neither with the bank nor with the
customer but lies elsewhere in the system, and the customer notifies the bank within
three working days of receiving the communication from the bank regarding the
unauthorised transaction.
b) Limited Liability of a Customer: A customer shall be liable for the loss occurring
due to unauthorised transactions in the following cases:
In cases where the loss is due to negligence by a customer, such as, where he
has shared the payment credentials, the customer will bear the entire loss until he
reports the unauthorised transaction to the bank. Any loss occurring after the
reporting of the unauthorised transaction should be borne by the bank.
BURDEN OF PROOF:
The burden of proving customer liability in case of unauthorised electronic banking
transactions should lie on the bank.
Based on the comments/proposals received from the Payments Banks (PBs), and
keeping in view the financial inclusion objective of the Payments Bank model, the
RBI has advised the Chief Executive Officers of PBs to follow the instructions as
mentioned below:
Payments Banks are permitted to act as Business Correspondents (BCs) of other
banks. Under the BC arrangement and with prior specific or general consent of the
customer, PB may effect the transfer of funds deposited by a customer into own
account with another eligible bank, so that the balance in the customer’s account
with the PB does not exceed Rs.100,000 or any such lower amount as specified by
the customer.
At any time, PB shall not have rights to operate or have realtime access to the
funds available in the account of the customer at any other bank, including the
transferee bank. However, as a BC of a bank, PBs may facilitate withdrawals and
transfers by the customer from her account with the bank of which it is the BC.
A PB shall neither arrange nor avail of intraday funding facilities for its customers,
based on the balances available in the customer’s account with any other bank, or
otherwise.
PBs are required to closely monitor the accounts of their customers, to identify and
report suspicious transactions, when the deposit / transaction volumes are not
commensurate with the customer’s profile.
PMVVY
(PRADHAN MANTRI VAYA VANDANA YOJANA)
The Government has launched Pradhan Mantri Vaya Vandana Yojana (PMVVY),
a pension scheme exclusively for senior citizens aged 60 years and above.
Under this scheme, senior citizens will get a guaranteed interest of 8% for 10
years depending upon the investment made by them.
This PMVVY scheme is available till May 3, 2018. Life Insurance Corporation of
India (LIC) has been given the sole privilege to operate the scheme.
convenience of loading upto 20 widely used currencies on one card with an online
reload facility during the overseas travel.
RBI decided (Jul 27, 2017) that, henceforth, an audit firm, after completing its four year
tenure in a particular private/foreign bank, will not be eligible for appointment as SCA of the
same bank for a period of six years.
These guidelines are also applicable to foreign banks.
The payments eco-system in the country provides multiple options to different segments of
users for funds transfer as well as for making payments in exchange of value for goods and
services. With increasing adoption of electronic payments, particularly those driving e-
commerce and m-commerce, there is a growing demand for „faster‟ payment services which,
in turn, facilitate ease in doing financial transactions. Towards this end, the measures that will
be initiated will include:
Promoting interoperability
The ability of customers to use and re-use a set of payment instruments seamlessly across
different segments to meet a variety of payment requirements should not be constrained by a
„silo‟ approach to developments in the payments eco-system. The requirement of users for
seamless payment experience are met only when the payment systems are inter-operable and
are able to communicate within their own segments on the basis of common standards
adopted by all providers of these services. Vision-2018 envisages promoting interoperability
in areas which have a high potential for driving electronic payments, including for small
value transactions, such as the following:
a. Unified Payment Interface (UPI): At present although a large number of banks are
offering mobile banking services these are not completely inter-operable, especially
for merchant transactions. This, in turn, has impacted the use of mobile payments for
merchant / P2B (Person to Business) transactions. Full operationalisation of UPI,
which aims at this customer convenience, will provide the standard interface for
communication across different mobile-banking applications of banks thus facilitating
inter-operability in P2B payments.
b. Toll Collections: Collection of toll, largely done in the form of cash payments, is
another segment where efforts to migrate to electronic payments have been sporadic
and isolated. Such disparate developments have led to the propagation of different
systems across different parts of the country, not only causing confusion and
inconvenience to the customers, but also pushing them further into cash payments.
Hence, electronification of the toll collection systems on a pan-India basis in an
interoperable environment will be encouraged.
c. Payments for Mass Transit Systems: Another segment which has a huge potential
for migrating large number of small value cash transactions to electronic payments, is
in the area of mass transit (road transport, metro rail, etc.). Though there have been
developments in recent times in different parts of the country to put in place
automated fare collection for mass transit systems all of them work on proprietary
systems and standards, thus coming in the way of inter-operability. Hence, the focus
will be to ensure that the payment mechanisms being put in place in this segment are
interoperable and built on open standards, preferably using open system payment
instruments.
Safety and security of payment systems and transactions is an important factor that helps in
boosting the trust and confidence of the customers in using electronic payment mechanisms.
Towards this end, Bank will continue to adopt and implement international standards and best
practices that enhance payment systems security. Some of the measures envisaged include:
a. Migration of cards to EMV Chip and PIN: Banks have been advised that all new
cards issued by them should be EMV Chip and PIN cards. A roadmap for migration of
all existing magnetic stripe cards to EMV Chip and PIN cards has also been laid
down. Bank will continue monitoring the progress made by the banks so as to ensure
adherence to the timelines.
b. EMV card processing at ATMs: Presently the ATMs in the country read and process
the card transactions only on the basis of data contained in the magnetic stripe, even
though the card may be a Chip and PIN card. With the roadmap in place for issuance
of EMV Chip and PIN cards, the aim will be to ensure that all the ATMs in the
country migrate to processing of EMV Chip and PIN cards on the basis of Chip data
rather than magnetic stripe data.
c. Security of ATM transactions: Although ATM infrastructure is widely used for
meeting cash requirements of the customers, it is increasingly being used as a channel
for carrying out other non-financial transactions and delivering value-added services.
As such, the operational and logical access security aspects of ATMs assume
significance, and any shortcomings in these areas make the systems vulnerable to
attacks by fraudsters, thus impairing customer confidence and trust. The Bank will,
therefore, examine holistically the physical and logical safety and security
requirements of ATMs infrastructure and issue necessary guidelines to strengthen
them.
d. Aadhaar-based authentication: Examine the technical, operational and business
feasibility of using Aadhaar as a factor of authentication for payment transactions.
1. It is again clarified that the full amount paid to the Government by the customers / through
debit / credit cards should be remitted to the concerned Government Ministry / Department.
The reimbursement of MDR charges on debit card use (up to Rs.one lakh) can be claimed
from RBI separately as per extant guidelines. Deduction of MDR charges from the receipts of
government is not permissible at all.
2. Please note that MDR charges on debit card transactions above Rs.one lakh and on any
credit card transaction are not being absorbed by Government of India and hence will not be
reimbursed by RBI. Accordingly, agency banks should not deduct MDR charges from the
receipts of the government in these cases also.
Sr.
Type of Transaction Unit Revised Rate
No.
Receipts - Physical
a. (i) Per transaction ₹ 50/-
mode
(ii) Receipts - e-mode Per transaction ₹ 12/-
b. Pension Payments Per transaction ₹ 65/-
Payments other than
c. Per ₹ 100 turnover 5.5 paise
Pension
The Article 246 of Constitution of India read with schedule VII (3 Lists i.e Union List, State
List and Concurrent List) provides for the division of taxation powers between the Center and
States. Till June 30, 2017, indirect taxes were imposed in the form of excise duty, service tax,
custom duty by Central Govt. and sales tax, octroi and entry tax by States. There are 5 Acts
namely CGST Act, UTGST Act, IGST Act, SGST Act and GST Compensation Act. GST
levied by the Center is called Central GST (CGST) and by the States, is called State GST
(SGST). Integrated GST is for inter- State supply.
While the Base Year of old GDP Series is 2011-12, the Base Year has been fixed as 2017-
18 for- New GDP Series.
The GST regime implemented from July 01, 2017 has subsumed the following taxes:
Central taxes : Central Excise duty, Duties of Excise (Medicinal and Toilet Preparations),
Additional Duties of Excise (Goods of Special Importance), Additional Duties of Excise
(Textiles and Textile Products), Additional Duties of Customs (commonly known as CVD),
Special Additional Duty of Customs (SAD), Service Tax, Cesses and surcharges insofar as far
as they relate to supply of goods or services
State taxes : State VAT, Central Sales Tax, Purchase Tax, Luxury Tax, Entry Tax (All forms),
Entertainment Tax (not levied by the local bodies), Taxes on advertisements, Taxes on
lotteries, betting and gambling, State Cesses and surcharges insofar as far as they relate to
supply of goods or services
Items still outside GST regime: Excise duty on petroleum products (Union), Tax on sale of
petroleum
products (State), Tax on alcoholic liquor for human consumption (State), Tax on
entertainment and
amusement levied and collected by Panchayat/ Municipality/ Regional Council/ District
Council, Stamp
Duties
Salient Features of GST
The Constitution (101st Amendment) Act received assent of the President on 8th September,
2016, which paved the way for implementation of GST.
Destination based tax : GST is applicable on supply of goods or services (compared with on
manufacture
or sale of goods or on services, which was the position till June 30, 2017). As a result, the
consuming State
stand to gain due to this shift from origin based taxation to destination based taxation.
Provision has been made for compensation to States for loss of revenue arising on account of
implementation of GST upto 5 years.
Dual Taxing Structure: Concurrent powers are available to Union and State legislatures to
make laws with respect to GST. The power to make laws in respect of supplies in the course
of inter-state trade or commerce will be vested only in the Union Government. States can
levy GST on intra-state transactions including services.
Integrated GST is levied on inter-State supply (including stock transfers) of goods or
services. This is collected by the Centre so that the credit chain is not disrupted
GST Rates : Consolidated rates of GST for 1211 Goods and 568 Services :
Goods : 0%, 5%, 12%, 18%, 28% and 28% + Compensation Cess*
Services : 5%, 12%, 18% and 28%
*It is on certain specified luxury and demerit goods 5years to compensate States for revenue
loss on account of implementation of GST.
Administration of GST : GST Council has been notified w.e.f Sep 12, 2016 to administer
GST. It is assisted by a Secretariat.. It is apex policy-making body for GST.
Members of GST Council : These are Central and State Ministers in-charge of the Finance
Portfolio. Center has a one-third vote and all states combined have two third vote. Quorum is
50% of total members and for majority decisions, 75% of the weighted votes of the members
present and voting.
Exemption limit : It is Rs. 20 lakh. For special category States the threshold exemption limit
is Rs. 10 lakh.
Composition threshold limit : It is Rs. 75 lakh. [Composition scheme is not available to
inter-State
suppliers, service providers (except restaurant service) and specified category of
manufacturers].
Administrative control over 90% of taxpayers with turnover below Rs. 1.5 crore is vested
with State Govt.
and 10% with Central Govt. All administrative control over taxpayers having turnover above
Rs. 1.5 crore shall be divided equally for the Central and State tax administration.
Returns under GST : There different types of returns to be filed on monthly, quarterly or
annual basis on form No. GSTR-1 to GSTR-11
TDS on GST : There is obligation on certain persons including Govt. departments, who will
receive supply, to deduct tax @ 1% from the payment due to the supplier where total value of
the supply exceeds Rs.2.50 lac.
GST Appellate Tribunal : Constituted by Central Govt., this Tribunal would entertain the
appeals against the orders passed by Appellate Authority.
There are 3 modes of payment available to the dealer - Online, Over the Counter (OTC) and
through NEFT/RTGS. How can I pay GST ONLINE? Customers having Internet Banking Facility
(both Retail and Corporate) can make the GST payment online. Customer is to first visit the
GST website https://www.gst.gov.in/ and Login to GST portal using his GST Number and
password, create the challan, select the e-payment mode and select Dena Bank for online
Payment. Tax payer will be redirected to the Dena Bank Internet Banking site. On successful
validation of transaction password tax payer will be redirected to the GST portal wherein
final status of the transaction will be displayed.
Customers who do not have Internet Banking Facility can make the GST payment through
any Dena Bank Branch. Customer is to first visit the GST website https://www.gst.gov.in/ and
log in to the GST portal using his GST Number and password, create the challan, and select
the Over the Counter Mode and select Dena Bank for over the counter payment. Tax payer
will receive the provisional challan. Customer is to take the print of the challan and visit his
nearest Dena Bank Branch and submit the challan along with tax amount. Amount can be
paid through Cash, Transfer or Clearing Cheque. Bank official will process the GST payment
and will provide the Final Challan containing the Challan Identification Number (CIN
Number). Over the counter payment can be made up to Rs. 10,000/- (Rupees Ten Thousand
Only).
Customers who do not have Internet Banking Facility and wants to make a GST payment of
above Rs. 10,000/- (Rupees Ten Thousand) can make the GST through NEFT/RTGS from any
Dena Bank branch. Customer is to first visit the GST website https://www.gst.gov.in/ and log
in to the GST portal using his GST Number and password, create the challan, select the
NEFT/RTGS Mode and select Dena Bank for payment. Tax payer will receive the provisional
challan. Customer is to take the print of the challan and visit the nearest Dena Bank Branch
and submit the challan along with the tax amount. Amount can be paid through Cash or
Transfer along with NEFT/RTGS Mandate. Bank official will initiate the NEFT/RTGS
remittance.
GST tax paid challan WILL BE available for generation at THE GST website
https://www.gst.gov.in/ under menu Services--Track Payment Status>Payments
CIN stands for Challan Identification Number. It is a 17 digit number that is 14-digit CPIN
plus 3- digit Bank Code. CIN is generated by the authorized banks/ Reserve Bank of India
(RBI) when payment is actually received by authorized banks or RBI and credited in the
relevant government account. It is an indication that the payment has been realized and
credited to the appropriate government account.
CPIN stands for Common Portal Identification Number (CPIN) given at the time of generation
of challan at GST portal. It is a 14 digit unique number to identify the challan. Validity of the
CPIN is 15 days from the generation of the challan.
Sec 28 RBI can frame rules for refunding value of mutilated soiled or imperfect notes as a
matter of grace. Rupee coin and one rupee note shall not be currency note for any of the
purposes of this act
Sec 29 Bank note shall be exempted from stamp duty under Indian stamp act
Sec 31 prohibits issue of note payable to bearer. No person in india other that RBI or central
govt. Shall draw accept make or issue any bill of exchange, hundi or promissory note for the
payment of money payable to bearer on demand.
33: Assets of issue deptt of RBI shall consist of gold coins, gold bullion and foreign securities
not at anytime be less than Rs. 200 cr of which gold coin and gold bullion not less than
Rs.115 cr
42: cash reserve ratio (CRR) of scheduled banks to be kept with RBI as s daily balance (details
given separately)
42 (c ) empowers RBI to add or delete the name of any bank in 2nd schedule of RBI act 1934
43 : RBI to publish every fortnight a consolidated statement showing aggregate liabilities
and assets of all SCBs
45-A to F: Empowers RBI to collect credit information. (section 45-C-Return as on last Friday
of April & October every year giving information on borrowers enjoying secured credit limits
of Rs.10 lac and above and unsecured limits of Rs. 5 lac and above). RBI also collects details
(1/2 yearly March/Sept) of all doubtful, loss and suit filed accounts with aggregate
outstanding of Rs. 100 lac and above and circulates the information amongst banks and
financial institutions. Besides, banks submit Basic Statistical Returns i.e. BSR-1 (details
regarding borrowal accounts of above Rs. 3 lac) and BSR-2 (information about deposits with
break up in to current, savings and term deposits)
45H-45T: Regulations relating to non bank finance companies. Section 45-S puts banks on
acceptance of deposits from public by individual or any unincorporated body, as per an
amendment in 1997.
48: Exemption to RBI from paying income tax or super tax
49: Announce/punish Bank rate .(bank rate as per this Section is ‘the standard rate at which
RBI is prepared to buy or rediscount bills of exchange or other commercial papers eligible for
purchase under this act)
Sec. 5(b) Banking :acceptance of deposit for the purpose of lending or investment, the
deposits of money from the public repayable on demand or otherwise and withdrawal by
cheque, draft, order or otherwise.
Sec. 5(c) :Banking company means any company which transacts the business of Banking .
Sec. 5(e) :transact Banking business in india
Sec. 5(f) : demand liabilities are the liabilities which must be met on demand and time
liabilities means liabilities which are not demand liabilities
Sec. 5(n) : secured loan or advances means a loan or advance made on the security of asset,
the market value of which is not at any time less than the amount of such loan or advances
and unsecured loan or advance which means a loan or advance, not secured
Sec. 6(1) : Banking company may be engaged in accepting deposits, borrowing money,
lending money , dealing in bills, collection of bills, buying/ selling foreign exchange, lockers,
issuing letter of credit, travelers cheques, mortgages, insurance business, acting as trustee
etc., or any other business which central govt. May notify in the official gazette.
Sec. 6(2) : restriction on business – no banking company shall engage in any form of business
other than those referred in subsection 6(1)
Sec. 7 use of words of Banking – Bank, Banker, Banking or Banking company: a Banking
company carrying on Banking business in india must use the word ‘Bank’, ‘Banker’, ‘Banking
company’ in its name. No other organization permitted to use these names.
Sec. 9 disposal of non Banking assests: no Bank shall hold any immovable property
howsoever acquired (except for its own use) for a period exceeding 7 years.
Sec. 10 employment of manaigng agents: the period of office of an md/whole time chairman
cannot exceed 5 years at a time (may be renewed or extended by further periods not
exceeding 5 years on each occasion).
Sec. 11 paid up capital and Reserve requirement: domestic Banks: minimum paid up capital
and Reserves Rs 5 lac.
Foreign Banks: minimum Rs 15 lac (it is Rs. 20 lac where the Bank has place of business in
mumbai or calcutta or both)
Sec. 12 capital structure: the ratio of authorized, subscribed and paid up capital must be
minimum 4:2:1. Voting right cannot be more than 10% by a single shareholder irrespective
of holding of the shareholder.
Sec. 13 restriction on commission, brokerage, discount :Bank not to pay commission,
brokerage, discount, etc. More than 2.5% of the paid-up value of one share.
Sec. 17(1) Reserve fund: stipulates that a Bank must create Reserve fund equivalent to not
less than 20% of profits out of the balance of profit of each year, before any dividend is
declared (RBI has enhanced it to 25% of net profit w.e.f. March 31, 2001)
Sec. 18- cash Reserve : non scheduled Banks to maintain 3% of the demand and time
liabilities by way of cash Reserves with itself or by way of balance in a current account with
RBI.
Sec. 19 subsidary company : permits Banks to form subsidiary company for certain purposes.
Sec. 19(2) no Banking company shall hold shares in any company, whether as pledge,
mortgagee or absolute owners of any amount exceeding 30% of its own paid up share
capital + Reserves or 30% of the paid up share capital of that company , whichever is less.
Sec. 20 restriction on advances against own shares:no Banking company grant
loans/advances on the security of its own shares.
Sec. 21(a) rate of interest charged by Banks not to be subject to scrutiny by courts :a
transaction between the Banking company and its debtor shall not be reopened by any court
on the ground of excessive charging of rate of interest.wef feb 15,1984
Sec.22 licencing of Banking companies: obtaining of licence from RBI is essential.
Sec. 23: restriction on opening of new and transfer of existing place of business :prior
permission of RBI is required for opening of new branch, sub-office, sub pay office and
extension counter etc. Except for one month. Setting up of obu’s, guidelines of doorstep
Banking, etc.
Sec. 24 maintenance of slr: every Bank to maintain a percentage of its total net demand and
time liabilities by way of cash, gold, and unencumbered approved securities maximum 40%
as on last friday of the second preceding fortnight. Minimum floor limit abolished and
maximum 40% to be maintained.
Sec. 26 return of unclaimed deposits :every Bank shall within 30 days after the close of each
calendar year submit a return as on 1st december to RBI on all deposit accounts which have
not been operated upon for 10 years (unclaimed accounts). In case of fds, this period will
start from due date i.e. Date of expiry of such fixed period.
Sec. 29 a/cs & balance sheet:balance sheet and p&l account must be prepared as on last
working day of march every year in the format given in schedule iii of the act.
Sec.30-i Audit : Balance sheet is to be got audited from qualified auditors.
Sec. 31 submission of returns:the a/cs and b/s together with the auditors report shall be
published in the prescribed manner and 3 copies of the same shall be furnished to RBI
within 3 months from the end of the period to which the balance sheet pertains.
Sec. 35 Inspection: Empowers RBI to undertake inspection of Banks and give decision as
deemed appropriate. RBI has directed Banks to round off the transactions to nearest rupee
under section 21 & 35..
Sec. 35(a) RBI has been given powers to give directions to the Banks in the public interest or
in the interest of Banking policy.
Sec. 36(a) powers to remove managerial or other person: where the RBI is satisfied that in
the public interest, RBI may remove from office any chairman, director or other officers or
employees of the Banking company.
Sec. 45 amalgamation of Banking companies: RBI has powers to apply to central govt.for
suspension of business by a Banking company and prepare a scheme of reconstitution or
amalgamation.
Sec. 45y preservation of Bank records: central government in consultation with RBI has
power to frame rules regarding preservation of books, accounts and other documents.
Sec. 46 penalties:whoever in any return, b/s or other documents willfully makes a statement
which is false, or willfully omits to make a material statement, shall be punishable with
imprisonment upto 3 years and shall also be liable to fine.
Sec. 47-a violation of KYC:RBI to impose penalty on Banks for violation of KYC norms or non
reporting of frauds.
Sec. 49-a other than a Banking company / RBI /sbi, no person can accept deposits of money
withdrawable by cheque .
It must have paid-up capital and Reserves of an aggregate value of not less than an amount
specified from time to time; and it must satisfy RBI that its affairs are not being conducted in
a manner detrimental to the interests of its depositors.the scheduled commercial Banks in
india comprise of state Bank of india and its associates (8), nationalised Banks (19), foreign
Banks (45), private sector Banks (32), co-operative Banks and regional rural Banks.
6 Definition of cheque
8 Definition of holder
15 Definition of endorsement
18 When there is difference in amount between the words and figures, the amount in
words is to be treated s the amount ordered by the drawer to pay
22 Three days of grace for calculating the maturity date of usance instrument
26 Minor may draw, endorse and accept a negotiable instrument so as to bind all
parties except himself.
85-(1) Paying Banker is protected by payment in due course of an order cheque which is
properly endorsed by the payee or his agent
89 Paying Banker gets protection where a cheque is materially altered but does not
appear to have been altered
130 Not negotiable crossing – the transferee cannot have a better title to the cheque
than that of the transferor
NEGOTIABLE INSTRUMENT ACT (NI Act) 1881 came into force wef Mar 01, 1882. Latest
amendment Dec 2002.Total sections 147 Applicable throughout India including J & K
Top of Form
STATUTE: Section 13 gives the meaning of Negotiable Instruments and states Negotiable Instruments means a
Promissory Note, Bill of Exchange or Cheque payable either to order or to bearer.
DEFINITION OF NI:
No direct definition of an NI is available. But as per Sec 13, NI means and include promissory
note (PN),
bill of exchange (BoE) and cheque.
Top of Form
Top of Form
CURRENCY NOTES: Currency/bank notes are not promissory notes as these are excluded
from the definition of promissory notes.
CHEQUE: Cheque is a demand bill of exchange drawn on a specified bank. It also includes
truncated cheque (in case of CTS in NCR and Chennai) and electronic cheque. (Sec 6).
Cheque can be made payable to bearer or order (restriction of Section 31 of RBI Act on
issuing bearer is not applicable on cheque).
BEARER AND ORDER: If a cheque bears, the words bearer / order both, it is payable to
bearer. If does not bear such words it is payable to order.
TRUNCATED CHEQUE: It is a paper cheque, which is retained by the collecting bank. To
collect the payment, the collecting bank sends scanned image of the paper cheque to the
drawee bank + digital signatures of collecting bank.
ELECTRONIC CHEQUE : It is a scanned image of the paper cheque + digital signatures of the
drawer.
(Digital signature has two keys, public key (which is disclosed) and private key (which is kept
secret). Public key is used to verify the digital signatures and private key is used to sign.
FORMAT OF CHEQUE: Format is a practice. It is not prescribed in any Act.
POST DATED CHEQUE: Cheque bearing date subsequent to date of its presentment. It cannot
be paid before its date. Example - Cheque dated Jan 22, is presented on Jan 16. It will be
returned.
ANTE-DATED CHEQUE: A cheque bearing date prior to the date, when it was actually drawn.
Example - Cheque issued on Jan 22 but it is dated Jan 05, while the account was opened on
Jan 10. Such cheque can be paid.
IMPOSSIBLE DATE : If an impossible date is written (say Feb 29 in case of leap year, 31 Apr, 31
Jun, 31 Sep,Nov 31), the cheque would be paid on last day of month (Nov 30).
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INCOMPLETE DATE: If date is not complete (say Jun 2010). It cannot be paid.
AMOUNT IN WORDS AND FIGURES DIFFERS (Sec 18):
Such cheque can be paid for amount written in words. Amount written in figures shall be
ignored.
If amount in words is written and in figures not given, it is incomplete cheque and cannot be
paid.
DIFFERENT HANDWRITINGS / INKS / SCRIPTS :A cheque drawn in different handwritings or in
different inks or different script would be paid.
FORGED CHEQUE: A forged cheque (where signatures of the drawer are forged) is not a
mandate of the drawer and in no circumstances it can be paid. If paid bank would be liable.
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RIGHTS OF HOLDER
a) Holder can obtain a duplicate of the lost Instrument (Section 45-A)
b) Holder can cross the cheque if not already crossed, convert a general crossing to a
special crossing, endorse and can negotiate If !tie negotiation is not restricted
c} Holder can sue in his own name In relation to the instrument
d} Holder can complete an Inchoate Instrument
e} Holder can give proper discharge to the person making the payment
RIGHTS OF HOLDER IN DUE COURSE
Every prior party to a negotiable Instrument is liable thereon to a holder in due course
until the Instrument IS duly satisfied (Sec. 36).
If a bill is drawn payable to the drawer's order In a fictitious name, the acceptor IS not
relieved from liability to any holder in due course, provided endorsement and the
drawer's signatures are in the same handwriting (Sec. 42).
If a bill of exchange or promissory note IS negotiated to a holder in due course, the other
parties to the Instrument cannot escape liability on the ground that the delivery of the
instrument was conditional or for a special purpose only (Sec. 46)
INCHOATE INSTRUMENT: As per Section 20, it is incomplete instrument in which one or the
other particulars are not given (but it bears signatures of the drawer). It can be completed
by the Holder. These are, otherwise, valid instruments, but cannot be paid till completed. A
cheque date June 2012, is incomplete. It can be paid only when date is completed.
NEGOTIATION It means transfer of an instrument from one person to another to make the
transferee the holder thereof.
METHOD OF NEGOTIATION : BEARER-
Negotiation is completed by delivery only in case of bearer instruments (Sec 47).
ORDER: It is completed by endorsement followed by delivery by the same person (Sec 48) in
case of order instrument.
If endorser dies after endorsement but before delivery, the negotiation can be completed by
legal heirs, with fresh endorsement and then delivery.
ENDORSEMENT :As per Sec 15, endorsement means signing on the face or backside of an
instrument (or on a separate paper, called allonge) for the purpose of negotiation i.e.
transfer of cheque to next person. Person transferring the instrument is called endorser. He
can be drawer, payee or an existing endorsee. The person to whom it is transferred is called
an endorsee.
BLANK ENDORSEMENT:
(Sec 16-1) : Signed without writing any instruction above the signature (as to whom to
pay).Such cheque becomes payable to bearer u/s 54.
Blank endorsement can be converted into full by writing name of a person, to whom to pay,
above the signatures.
ENDORSEMENT IN FULL : Where endorser writes the name of person to whom to pay above
signatures. Instruments becomes payable to endorsee. Such endorsement followed by an
endorsement in blank, makes the instrument payable to bearer.
RESTRICTED ENDORSEMENT (Sec 50):
Where endorser restricts further negotiation (pay to ….. only). In this case, the endorsee can
obtain payment but cannot endorse further.
When endorser's signatures are forged. Title does not pass to any person on the basis of
such endorsement and it remains with the payee or last endorsee. A person getting a
cheque after such endorsement, does not become holder as he gets no title to the cheque.
Paying bank is protected (u/s 85-1) on payment on the basis of forged endorsement if it is
regular.
ENDORSEMENT BY MINOR: Minor can endorse u/s 26. But he is not liable.
CROSSING OF CHEQUES
Crossing means putting two parallel lines across the face of a cheque or demand draft, with
or without words.
Parallel lines can be on any part or in any manner on the face, not necessarily transverse
lines.
BoE & PN : Crossing is applicable for cheques and demand drafts only. Promissory notes or
bill of exchange cannot be crossed.
WHO CAN CROSS :
Crossing can be done by drawer, holder payee or last endorsee or the bank (special crossing
by bank). A general crossing can also be converted into a special crossing by them.
DIRECTION: Crossing is direction of drawer to the paying bank that payment be made to the
payee through his bank account and not across the counter (i.e. in cash).
Payment to payee's bank, can be made in cash, through clearing or by way of transfer.
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NOT NEGOTIABLE CROSSING - (Sec 130) : It does not restrict transferability (i.e. endorsement
is possible). But it takes away the important element of negotiation i.e. receipt of defect free
title by the transferee. This means that the transferee can not become holder in due course.
He is only a holder and not a holder in due course.
This crossing is direction to the collecting bank.
Paying bank has to pay such cheques in normal course, to get protection (Sec 128).
ACCOUNT PAYEE CROSSING: It is not defined and it is a banking practices. Such cheques
cannot be endorsed and these can be credited to account of the payee only.
CANCELLATION OF CROSSING: Crossing can be cancelled by drawer only under his full
signatures by writing the words crossing cancelled. It case of joint E/S account, this
instruction can be cancelled by any one, irrespective of who draw the cheque.
PROTECTION TO PAYING BANK: Paying bank gets protection on payment of crossed cheques
u/s 128 by ensuring that the payment is made in due course.
COLLECTION OF CHEQUE :Banks collect cheques as agents for their customers.
CONVERSION: In the process of collection, if they collect a cheque for a customer, of which
the customer is not true owner, it is called conversion. Conversion is an offence and
punishable.
PROTECTION AGAINST CONVERSION: U/s 131 for cheque and u/s 131A for demand draft,
banks gets protection against conversion, when they collect cheques subject to fulfillment of
the conditions that :
(a) cheques are collected for customers (as agents) in properly introduced accounts,
(b) cheques are crossed (generally or specially) before presentation to the paying bank and
(c) cheques are collected in good faith and without negligence.
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PAYMENT OF CHEQUE
OBLIGATION OF BANKS: U/s 31 of NI Act, the banks are under statutory obligation to honour
cheques issued by the customer where:
(a) there are sufficient funds (in the same account on which cheque is drawn). If bank makes
payment by creating overdraft without customer consent, it is recoverable from the
customer, if customer has not objected to payment of cheque.
(b) funds are meant for payment of the cheque and
(c) there is proper demand to make the payment i.e. within business hours.
(d) signatures are as per record (if cheque is paid for signatures different from record, but
otherwise genuine, customer cannot ask for refund).
On payment in due course, bank will be discharged from obligation.
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WHEN PAYMENT NOT TO BE MADE: Payment should not be made in case of:
(a) death, insolvency, insanity of customer OR insolvency of partner or firm OR liquidation of
company
(b) stop payment of cheque
(c) receipt of garnishee/attachment order
(d) post dated or mutilated or stale cheque.
(e) Insufficient balance
(f) Different signatures
PAYMENT IN DUE COURSE :Banks get protection, if a payment is in due course. As per Sec 10,
a payment would be considered in due course if:
(a) Payment is as per apparent tenor of instrument.
(b) Payment is in good faith and without negligence
(c) Payment is to person in possession of instrument
(d) Payment under circumstances which do not afford a reasonable ground for believing that
he is not entitled to receive payment of the amount mentioned therein
(e) Payment must be made in money only.
DISHONOUR OF CHEQUE :If a cheque is dishonoured, the drawer is liable for legal action by
holder, u/s 138-147 of NI Act (wef 01.04.89) where:
1. Cheque is issued to discharge a liability (for gift cheque not liable).
2. Cheque presented within validity period (max restricted to 6 months/ 3 months from 1 st
April 2012)
3. Dishonour is due to insufficiency of funds or even for stop payment or closure of account.
a) The cheque should have been issued for discharge of lawful liability .Cheque should be returned with
the reason 'insufficient balance' but due to different judgments of Supreme Court reasons like Refer
to drawer, A/c closed, Exceeds arrangement, Payment stopped by drawer and effects not clear are
treated equal to insufficient balance.
b) The payee or holder in due course should give notice to drawer within 30 days of return of , cheque
with the reason 'insufficient balance' and demanding payment within 15 days of his receiving
information of dishonour.
c) The drawer can make payment within 15 days of the receipt of notice and only if he fails to do so
prosecution could take place.
d) The complaint is to be made within one month of the cause of action arising i.e, expiry of notice
period.
e) Summary Proceedings: Fine upto Rs, 5000 or imprisonment upto 1 year or both.
f) Regular Proceedings: Punishment is fine upto double the amount of cheque or imprisonment upto 2
years or both.
MATERIAL ALTERATION :An alteration that changes the basic direction of the drawer and is
not authenticated by him, is called material alteration which include:
1. Change in amount, name of payee or date
2. Mutilation of cheque
3. Cancellation of crossing or converting special crossing into general crossing.
4. Converting order into bearer.
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CONDITION FOR DEPOSIT: Banks cannot keep deposit, as a pre-condition for allotment of
locker. But deposit equal to locker rent for 3 years and other charges (say breaking open
charges) can be taken.
PRECAUTION: Banks to ensure every day that all lockers operated during day time, are
locked.
NON-OPERATIONS OF LOCKERS: If locker is not operated for 1 year in case of High risk
customers (KYC definition) and 3 years in case of medium risk customer, notice to be sent for
operating the locker or surrender of locker. If no satisfactory reply, another notice for
breaking-open to be sent. If still no satisfactory reply, locker to be broken open in the
presence of 2 independent witnesses, one of which should be a bank officer.
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IF KEY REPORTED LOST : In case of either or survivor joint lockers, if one locker holder
reports loss of key and the other comes to operate, only joint operation to be permitted.
LOCKER IS LEFT UNLOCKED: Bank to prepare inventory of articles in the presence of 2
independent witnesses, keep the articles in safe custody and inform the customer.
NOMINATION : The provisions are given in the nomination Section. If there is no nomination,
articles to be delivered on the basis of WILL to the executor. If there is no will, the articles
will be delivered to legal heirs on the basis of indemnity bond or if need be, on the basis of
letter of administration (succession certificate is not applicable).
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(b) loan is due/irregular and lawful (lien is available even for a time barred loan, where
limitation has expired).
(c) Reasonable period notice is to be given to the borrower. Sale of security without notice,
is illegal.
(d) the loan and security is in the same name and same capacity.
Example:
1. Loan in name of A and security in name of A
2. Loan in name of A and security in name of Guarantor who has given guarantee for A (but
after issue of notice to guarantor)
3. Loan in name of A and B or loan in name of a partnership firm in which A is partner and
security in name of A
WHERE NOT AVAILABLE : Lien is not available, where the goods or securities:
(a) are held inconsistent with the right, or
(b) held by bank in trust or
(c) held by bank as an agent, or
(d) held for a specific purpose, or
(e) owned by more than one persons, say loan in name of A and security in name of A & B or
security in name of ABC firm where A is a partner or
(f) held in safe custody or
(g) left in possession of the bank by mistake.
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NEGATIVE LIEN : It is an undertaking given by the borrower (owner of assets) for not selling
assets or securities and for not creating any charge on these assets, without permission from
the creditor / bank.
If the borrower sells goods, the bank cannot file suit, as through negative lien, no legally
enforceable charge is created. It is of moral value only.
If lien is created by a company, it does not require registration of charge with RoC.
RIGHT OF SET-OFF :Set off is right of the bank to combine a loan account and a deposit
account, for settlement / adjustment of the loan account.
It is not defined in any Act.
Loan can be recovered by using right of set-off, if following conditions are satisfied:
1. Loan is due i.e. irregular (even time barred loan where limitation has expired can be
recovered).
2. Notice before recovery from deposit account
3. The deposit and loan should be in the same name and same capacity
4. Deposit of guarantor can be used for recovery of loan in the name of the borrower (but
after serving a recall notice on the guarantor).
5. On a term deposit which has not matured, right is available but it can be exercised only
when FDR matures.
6. Right can be exercised even where garnishee order or attachment order has been
received.
Garnishee Order is an attachment order of a court, issued u/s 60 of CPC 1908 (Order XXI and
Rule 46).
1. The order is issued on bank as Garnishee (garnishee means debtor of judgement debtor).
(Judgement debtor means the person declared debtor by a court).
2. It is issued in two stages (1st stage - order NISI and 2nd stage - order Absolute, which is a
payment order)
3. The order is applicable where relationship between bank and customer is that of Debtor &
Creditor (i.e. it is a deposit account and not a loan account or a locker account or a safe
deposit of articles account).
ACTION BY BANK ON RECIEPT OF Garnishee Order:
1. Stop payment, if balance is less than amount of order or amount is not mentioned.
2. Use right of set off, if some loan is due / irregular
ACCOUNTS WHERE APPLICABLE: SB, CA, RD/FD (matured and yet to mature, both), CC/OD
having credit balance.
WHERE NOT APPLICABLE: CC/OD with debit balance. Also not applicable on unused limit).
AMOUNT ON WHICH APPLICABLE: Amount available with the bank as Garnishee (i.e. deposit
account) at the time of receipt of order. Not applicable on amount received later on.
ATTACHMENT ORDER :Attachment Order is attachment order of Govt. authority for recovery
of Govt. dues. It is issued as per authority available under various Law including u/s 226 of
Income Tax Act 1961.
1. The order is issued on bank having deposit in the name of person who is liable to pay tax
(called assessee).
2. It is issued as a payment order.
3. The order is applicable where relationship between bank and customer is that of Debtor &
Creditor (i.e. it is a deposit account and not a loan account or a locker account or a safe
deposit of articles account).
ACTION BY BANK:
1. Stop payment, if balance is less than amount of order.
2. Use of right of set off, if some loan is due / irregular
ACCOUNTS WHERE APPLICABLE: SB, CA, RD/FD (matured and yet to mature, both), CC/OD
having credit balance.
WHERE NOT APPLICABLE: CC/OD with debit balance. Also not applicable on unused limit).
AMOUNT ON WHICH APPLICABLE: Amount available with the bank at the time of receipt of
order and also the amount received later on.
Nomination is available for
(a) all types of Deposit accounts - whether domestic or foreign currency,
(b) safe custody of article accounts in single name and
(c) all types of locker accounts.
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LEGAL PROVISIONS:
Nomination provisions are as per Section 45-ZA&ZB of Banking Regulation Act, for deposits,
Sec 45-ZC&ZD for safe deposit of articles
and Sec ZE &ZF for locker accounts.
COMPULSORY NOMINATION: Nomination is compulsory for single name accounts. If
customer does not want nomination, he has to give in writing.
NAME OF NOMINEE: If customer wants name of nominee to be written on FDR or pass book,
banks to follow his instruction.
STATUS OF NOMINEE: A trustee for legal heirs.
OTHER IMPORTANT POINTS ABOUT NOMINATION:
1. Nomination can be for individual accounts only such as single name, joint name or
proprietorship accounts. It is not available for firms, companies, trusts, societies etc.
2.Who can be nominee: Only an individual can be a nominee. He can be Resident or Non-
resident, minor or even an insolvent person. (where nominee is a minor, the account holder
to disclose the name of person, who is to be obtain payment on behalf of the minor, in case
of customer's death)
3.Nomination can be made any time from opening of account to closure of account. It can
be cancelled and changed any time and any no. of times.
4. NO. OF NOMINEES: There can be one nominee in case of (a) a deposit account, (b) safe
deposit of article accounts, (c) locker accounts in single name or joint either or survivor
lockers.
But for joint operation locker account, each holder can have his own nominee. As per IBA,
max no. of nominees in joint lockers can be 2.
5. PAYMENT TO NOMINEE: On death of account holder bank to deal with only the nominee
and no one else (such as legal heirs) in any circumstances. However, in case of Court Orders,
paymet to be made as per court order.
If nominee does not come for 6 months for deposit accounts and 3 months, in other cases,
bank is to contact the nominee.
6. In case of FDR, if renewal is within same account, previous nomination continues.
7. JOINT ACCOUNTS - In case of joint deposit account and joint locker accounts nomination
to be made by all persons.
8. In case of jointly operated locker accounts, in case of death of any of locker holders, the
contents shall be delivered to the survivor locker holders and the nominee of the deceased
locker holder.
9. In case of jointly operated joint deposit accounts, the payment shall be made to survivor
and legal heirs of the deceased account holder. If all account holders die, the payment can
be made to nominee.
10. Nomination cannot be accepted in Joint safe deposit of article accounts.
11. Payment of FDR can be made to nominee. But he cannot give discharge for raising loan
against FDR.
KNOW YOUR CUSTOMER (KYC) :KYC guidelines have been issued by RBI u/s 35-A of B R Act.
In addition, the banks also have to comply with the provisions of Prevention of Money
Laundering Act 2002.
OBJECTIVE OF KYC: Preventing use of banks by criminals for money laundering purposes.
PRECAUTIONS: Banks to take precautions before opening and after opening of accounts.
1. Before opening the account, the banks are required to do proper verification through
introduction, proof of identity and proof of address of the customers.
2. Introduction can be taken from existing customer with 6 months' satisfactorily conducted
account or from persons known to the bank.
3. Documents for customer identity include passport, PAN card, Voter I-Card, driving license,
Identity card to bank's satisfaction, letter from recognized public authority.
4. Documents for proof of address include telephone bill, electricity bill (even in the name of
relative with whom living), bank a/c statement, letter from recognized public authority,
ration card, letter from employer.
5. Relaxation for small depositors: Simplified criteria of identification and introduction to be
followed where the balance shall not exceed Rs.50000 and total credit in a year does not
exceed Rs.1 lac. In these cases the certification of address and photograph by the introducer
is enough. However, if the amount of total credit exceed Rs.80000 or balance exceeds
Rs.40000, notice to be sent to the customer.
6. Monitoring of transactions : Transactions are to be monitored on the basis of customer
risk categorisation. The risk categories can be
(1) Low risk customers
(2) Medium risk customers
(3) High risk customers.
7. Risk review of customers : Risk review should be done periodically not less than once in 6
months. Change of risk category can be considered in not less than 5 years in case of low risk
customers and not less 2 years in case of medium / high risk customers.
8. Record of transactions: Banks to prepare a record of cash transactions of Rs.10 lac and
above.
DOCUMENTATION
DOCUMENTS WITH 2 OR MORE DATES:
1. Such documents are valid.
2. Date of document will be the latest date on the document for the purpose of calculation
of due date or limitation or for filing charge with RoC.
(Example - Document bears two dates Jan 12 and Jan 14, 2010. Date of document is Jan 14,
2010)
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Savings Deposit Account can be opened for eligible person / persons and certain
organisation / agencies [as advised by RBI from time to time].These include
1.An Individual
2.An Individual with other person
3.An employee
4.A guardian on behalf of minor
5.Minor
6.HUF if not engaged in business
7.By institutions/ organisations as per the directives issued by RBI & IBA.
Cheque book facility is available for Savings Bank Account. The total number of
withdrawals /debits should not exceed 50 per half year .The debits include all types of
cheques , transfers and cash or in any other manner. In case the number of debits exceed
the limit , then incidental / service charges will be levied .
For SB accounts of individuals 50 cheque leaves will be free in a year.
The SB account will earn 4.00% interest .The interest will be allowed on daily product basis .
Interest will be calculated for six months period from March to August and September to
February and will be credited to the account on or before 30th September and 31st March
every half year.
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WHO IS A CUSTOMER ?
A customer for the purpose of this policy on KYC/AML is defined as :
(i) a person or an entity that maintains an account and/or has a business relationship with
the Bank
(ii) one on whose behalf the account is maintained (i.e. The beneficial owner)
(iii) beneficiaries of transactions conducted by professional intermediaries, such as chartered
accountants, solicitors, stock brokers etc. Permitted under the law, and
(iv) any person or entity connected with w financial transaction which can pose significant
reputational or other risks to the Bank.
BANK's OBLIGATIONS: Bank has 2 types of obligations towards the customer which include:
(a) obligation to make payment of cheque issued by customer (Sec 31 of NI Act).
(b) obligation to maintain secrecy of customer account (even when it is closed) due to
implied contract and also u/s 13 of Banking Companies (Acquisition and Transfer of
Undertakings) Act 1970 / 1980.
DUTIES OF BANK
(a) Duty of Secrecy: Recognized in Sec 13 of Banking Co's. (Acquisitions & Transfer of
Undertakings) Act; 1970. Banks to maintain secrecy as per Implied Contract.
(b) Duty to Honour Cheque Sec 31 of NI Act
(c) Duty to Supply Periodical Statement of Account
(d) Duty to Collect Payment
RIGHTS OF BANK
(a) Right of General Lien, Set-Off, Appropriation.
(b) Right to act according to the mandate given by the customer.
Under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002
banks can exercise the right of private sale.
DISCLOSURE OF INFORMATION:
Customer information, if disclosed and customer suffers loss, bank is liable.
Information can be disclosed in following circumstances:
(a) with consent of customer (example customer requests for writing name of nominee on
FDR. Bank shall comply)
(b) in public interest and in the interest of the bank
(c) practice between banks (i.e. exchange of customer information which should be general
and not specific and should be provided with disclaimer clause)
(d) provisions of law.
DISCLOSURE UNDER PROVISIONS OF LAW:
(1) Banker's Book Evidence Act 1891 : Court may order inspection / take copies of entries in
bank's books.
U/s 4, a certified copy of an entry in a banker's book is received as prima facie evidence.
(2) Code of Civil Procedure (CPC): Civil court can issue summon to bank to produce
documents.
(3) Criminal Procedure Code 1973: Court may, by warrant, authorise a police official to
conduct search and take possession of stolen property, counterfeit currency notes, forged
documents (cheques). U/s 102, a Police Officer can seize a stolen property (including money
lying in bank a/c).
(4) Companies Act 1956 : U/s 235/237, Central Govt. may authorise an Inspector to call for
any information, books, documents, relevant to his investigation in case of a company.
(5) Income Tax Act 1961 : U/s 131 of Income Tax Act, bank officer can be examined on oath
and can be told to produce books of account and other documents concerning the
transactions of a customer.
Further, u/s 133 providing (general information) enquiries can be made for cash transactions
of Rs.1 lac and above
TERMINATION OF RELATIONSHIP
The relationship terminates :
(a) when the customer closes the account after giving suitable notice wherever required
(b) when bank closes the account after due notice of reasonable period, which is compulsory
and failing which, the banker may be held accountable for damage, if any, due to dishonour
of cheques;
(c) with knowledge of the death, insanity and insolvency of the customer
(d) on receipt of garnishee order and attachment order, where balance in the account is less
than amount of order.
MINOR's ACCOUNT
In India, in all cases (including court appointed guardian), minor is a person with less than 18
years of age.
As per Sec 11 Indian Contract Act, a minor is not competent to contract. Suit cannot be filed
on the basis of a contract with a minor as it is illegal contract from the very beginning (called
void ab initio).
PROPERTY OF MINOR : His guardian has the authority to deal with his property (including
bank account), for minor's benefit.
TYPE OF GUARDIANS :
Natural guardian, OR
Testamentary guardian (appointed by will of the father/mother) OR
Legal guardian (appointed by the court).
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3. On attaining majority account to be operated by the account holder (who has become
major) and not by the guardian. No cheque signed by the guardian to be paid, irrespective of
date.
ACCOUNT BY MOTHER :
During life time of father, mother can open the account without consent of father, as per
Supreme Court judgement. Father not to intervene.
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TYPES OF COMPANIES :
1. Private Company : It is a company whose Articles of Association restrict (a) making of
public issue (b) transfer of shares (c) no. of members
2. Public Company : It is a company which is not a private company.
3. Govt. company : It is a company, whose at least 51% share holding is held by Govt.
(b) Articles of Association-AoA (i.e. internal rules of the company) prepared by shareholders.
(c) Certificate of incorporation-CoI (Birth certificate of company) issued by Registrar of
Companies.
(d) Certificate of commencement of business CCB (required by Public Companies only and
not by private companies) issued by Registrar of Companies.
(e) Resolution passed by Board of Directors in a meeting (Section 292), which authorises its
official to deal with the banks.
BORROWING POWERS:
1. Company's borrowing powers arise from Memorandum of Association. Hence
shareholders have unlimited borrowing powers.
2. Board's borrowing powers are stated in the Articles of Association prepared by
shareholders. Where it is not mentioned, the powers are equal to paid up capital and
reserves of the Company.
3. Where Board wants to borrow beyond powers mentioned in AoA, it has to seek
authorization from shareholders (u/s Sec 293-d-i) by way of resolution in annual general
meeting.
4. Co. can raise loans for activities stated in object clause of MoA. Any borrowing outside
objects, is ultra-vires. Loan for such activity is not recoverable from the company.
BANK ACCOUNTS OF COMPANIES
1. To open bank account, MoA, AoA, Certificate of incorporation (CoI), Certificate of
commencement of business (CCB) (only for public company), Board Resolution are required.
2. No introduction is required as CoI is enough introduction.
3. Account opening Form (AOF) signing and account operation is by Authorised persons (AP),
who is to provide photographs as per KYC guidelines.
4. On death of AP, cheques dated prior to death, to be paid.
5. Authorised person cannot appoint agent.
6. Stop payment can be made by AP and payment of a stopped cheque can also be allowed
by any AP.
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PARTNERSHIP FIRMS
Partnerships are regulated by Indian Partnership Act 1932.
1. Partnership is a contract between 2 or more persons, to share profits from business to be
conducted by all or any of them, for all (Sec 4). This agreement can be in writing (called
Partnership Deed) or an oral agreement.
2. Partnership is not a separate legal entity and the collective name of partners is called firm.
Hence 2 firms having all common partners, are one firm.
NO. OF PARTNERS:
3. As per Sec 11, Companies Act 1956, maximum no. of partners can be 10 for banking
business and 20, for other business. No. of partners beyond this, makes the firm, an illegal
association and firm is dissolved.
WHO CAN BE AND WHO CANNOT BE PARTNERS?
4. Only a person competent to contract, can become a partner. Hence, minor, insolvent and
insane cannot become partner.
5. HUF cannot become partner as per Supreme Court judgement, as HUF cannot be created
through an agreement and HUF cannot make itself liable for actions of 3rd persons.
6. A company and a firm can become partner in another firm. If a firm becomes partner in
another firm, the no. of partners in both the firms should not be more than 10 or 20.
AUTHORITY OF PARTNERS:
7. Partners are principals & agents of each other. Authority of partners is called implied
authority. All actions of a partner in ordinary course of business are actions of all partners
for which all are liable.
8. There are restriction on use of implied authority by a partner u/s 19. All partners have to
join in case of:
(a) opening of bank account,
(b) Sale, purchase, mortgage, lease of firm's immovable property,
(c) Contracting liability (such as giving guarantee unless giving guarantee is the business of
the firm)
(d) Appointment of an agent (i.e. giving power of attorney or mandate to operate the
account)
(e) filing or withdrawing a suit or compromising a claim or referring a matter for arbitration.
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Registration of a firm with Registrar of Firms is not compulsory (Sec 69). But a registered firm
has the advantage that it can file suit for recovery of its debts. An unregistered firm cannot
do so. But banks can file suit on both type of firms.
BANK ACCOUNT:
1. To open bank account, copy of p/ship deed or p/ship letter required.
2. All partners including sleeping or dormant, are to sign AOF. (Minor not to sign)
3. Operations of account shall be by all partners jointly. But the partners can give authority
to one or more partners or agent to operate the account.
4. Any partner can stop payment of operations or stop payment of cheque. Restoration of
operations is possible with consent of all partners only. Payment of cheque (which is
stopped from payment) can be allowed by any partner authorised to operate the bank
account.
5. Cheque signed by the agent appointed by all partners and dated till date of agent's death,
would be paid, if agent dies.
6. On death, insolvency, insanity of a partner, operations are stopped. In that case, cheques
drawn by any partner or agent, shall not be paid, irrespective of date of cheque.
7. If it is loan account, recall notice will be sent to surviving partners and legal heirs of the
deceased partner for adjustment of account. Bank can also decide to continue the loan by
sanction of loan in favour of remaining partners.
8. If there is credit balance and the surviving partners want to close down the business of
the firm and need bank account for that purpose, operations on the basis of fresh mandate
from them can be allowed.
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JOINT ACCOUNTS
1. These are opened to facilitate operations and are governed u/s 45 of Indian Contract Act
1872 (Devolution of Joint Rights).
2. The balance in these account is joint property of the account holders irrespective of style
of operations and can be disposed off as per instructions of joint account holders only.
3. No. of account holders can be at discretion of banks.
4. Operations can be
(a) joint operations (if nothing is stated) or
(b) either or survivor and
(c) former or survivor (as per mandate given by all).
5. Garnishee order and right of set off is not applicable on a joint account, if the order is
name of a single person. But attachment order is applicable on pro-rata basis.
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Names can be added, deleted or substituted any time and on any no. of times subject to the
condition that at least one of the original account holders, should continuously remain
account holder from opening of account till its closure.
(X and Y want to add name of A and B. It can be done. Later on all the four wants to delete
name of X and Y both, it cannot be allowed).
Settlement of claims in HUF Accounts – Death of Karta In the event of death of a Karta, HUF
account may be settled as under : a) Obtaining affidavit cum indemnity from surviving
members and legal heirs with two guarantors confirming their acceptance to one of the
members as a new karta. Banks shall allow the new Karta to continue to operate the existing
account on the basis of such documents, in HUF accounts. b) Similar procedure to be
followed in cases where account is to be closed and balance in the account to be paid to the
new Karta.
The settlement of claims in respect of missing persons would be governed by the provisions
of Section 107 / 108 of the Indian Evidence Act, 1872. Section 107 deals with presumption of
continuance and Section 108 deals with presumption of death. As per the provisions of
Section 108 of the Indian Evidence Act, presumption of death can be raised only after a lapse
of seven years from the date of his/her being reported missing. As such, the nominee / legal
heirs have to raise an express presumption of death of the subscriber under Section 107/108
of the Indian Evidence Act before a competent court. If the court presumes that he/she is
dead, then the claim in respect of a missing person can be settled on the basis of the same.
Considering the legal opinion and taking into account the facts and circumstances of each
case, Bank will settle the claim in respect of missing persons on the basis of each case. In
addition to the documents required under the Death Claim Policy as per threshold limits
of claim, Claimant/s will submit FIR and the non-traceable report issued by Police
Authorities and letter of indemnity.
TRUST ACCOUNT
1. Individual Trust is regulated by the Trust Deed.
2. Trustee can be a single trustee or more than one trustees.
3. Authority to open the bank account and operate the bank account, to be used by the
Trustee/s, as per provisions of Trust Deed.
4. Trustee/s cannot delegate the powers given to them i.e. they cannot appoint an agent or
give mandate.
5. If a trustee dies, account operations will continue by other authorised or next authorised
trustee. Cheques signed by deceased trustee but dated up to date of his death, shall be paid.
6. Loan can be allowed to a trust for the objective of trust, only if the Trust Deed specifically
provides for such loans.
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HUF ACCOUNTS
1. Hindu Undivided Family (HUF) is not defined. It is a practice under Hindu Succession Act.
2. HUF deals with joint business owned by members of a family called co-parceners (each
having equal share). They have a common ancestor.
3. A person becomes coparcener due to birth or adoption by the family. The senior most
coparcener is called Karta or Manager. Female can also become Karta.
4. If minor is the senior most coparcener, he becomes Karta and his functions are discharged
by his/her guardian.
5. In case of death of Karta, next senior most becomes Karta.
6. If Karta goes abroad or on a pilgrimage, he continues to be Karta, unless he relinquishes
his right of Karta.
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INOPERATIVE ACCOUNTS
1. The savings /current account to be treated as inoperative / dormant if there are no
customer generated transactions for over a period of two years.
2. Banks to make an annual review of accounts in which there are no operations for more
than one year.
3. If on an enquiry with the customer, the reply given by the account holder is satisfactory,
banks can continue classifying the same as an operative account for one more year
4. For classifying an account as 'inoperative', debit as well as credit transactions induced at
the instance of customers as well as third party should be considered. If bank is crediting
UNCLAIMED DEPOSITS : Except for drafts, cash orders, RTC/Gift cheques all other accounts
in in-operative (others) category remaining in-operative for period of 10 years or more, are
to be transferred to In-operative (10 years and over) on 1st day of December each year.
Pursuant to the amendment of the Banking Regulation Act, 1949, section 26A has
been inserted in that Act, empowering Reserve Bank to establish The Depositor
Education and Awareness Fund (the Fund). Under the provisions of this section
the amount to the credit of any account in India with any bank which has not been
operated upon for a period of ten years or any deposit or any amount remaining
unclaimed for more than ten years shall be credited to the Fund, within a period of
three months from the expiry of the said period of ten years. The Fund shall be
utilized for promotion of depositors’ interest and for such other purposes which may
be necessary for the promotion of depositors’ interests as specified by RBI from time
to time. The depositor would, however, be entitled to claim from the bank her deposit
or any other unclaimed amount or operate her account after the expiry of ten years,
even after such amount has been transferred to the Fund. The bank would be liable
to pay the amount to the depositor/claimant and claim refund of such amount from
the Fund.
DEPOSIT INSURANCE
1. Deposit Insurance is compulsory for all banks in India (except Primary agricultural
societies).
2. Each depositor in a bank is insured to max extent of Rs.1 lac for principal and interest held
in same right same capacity (account of A& B are separate from account of B & A) on date of
liquidation/cancellation of bank's licence or date of amalgamation /merger / reconstruction.
3.Separate insurance cover up to Rs.1 lac each is available for separate banks.
4. Premium - 10P per Rs.100, per annum. Payable 5P on half-yearly basis in advance within 2
months of beginning of the half year.
5. Balance for premium payment, to be the balance on the last day of the previous half year
(e.g. for Apr-Oct HY, balance would be as on last day of March).
6.Banks to submit return on DI-01 while paying the premium.
3.Minimum contribution: Rs.500 and maximum Rs.1,50,000 p.a. The investments can be
made in multiples of Rs. 5, either as a whole sum, or in installments (not exceeding 12 in a
year, though more than one deposit can be made in a month).
4. Period: Minimum tenure15 years. It can be extended in blocks of 5 years each for any
number of blocks in blocks of 5 years each for any number of blocks.
5. Interest and deposit qualify for income tax rebates.
6.Interest on the minimum balance between 5th and last day of the month.
7. Withdrawal after 6th year allowed subject to max 50% of the balance at the end of 4 th
preceding financial year.
8. Loan : Allowed after 3rd year of opening of account upto 5th financial year .
9. Nomination in favour of one or more persons allowed.
PENSION PAYMENTS
1. The banks are making payment of pension to the pensioners on the authority letter or
pension payment order (PPO) or relative papers received by their branches from the
treasury through the link branch.
2. Type of account : Normally single named account. Joint account with spouse (having
authorization for family pension in PPO) could be opened including in E/S or F/S operation.
3. Credit of account : Account to be credited 3-4 days before close of the month (to be paid
in advance for the following month). However, for March, it is to be credited on 1st working
day of April.
4. PoA: Pension account is not to be operated by an attorney.
5. Income tax is to be deducted at source from the pension payment and deposited in
Govt.'s account, as per Income Tax Rules.
6. Life certificate will be obtained from the pensioner once a year in the month of
November.
7. Non-employment certificate: To be submitted in Nov each year.
8. Commutation: It can be done within one year of retirement. Commuted portion is
restored after 15 years from date of payment of commuted amount.
10. In case of death, pre-mature payment can be made to legal heirs at SB rate from date of
death to date of payment.
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OFFICIAL LANGUAGE
1. Public Sector Banks follow Official Language Act 1963 and Official Language Rules 1976
while using Hindi as official language.
2. Progress of use of Hindi is monitored by RBI (DBOD)
3. States/UTs are classified into 3 categories for the purpose of Official Language Policy
Region-A : HP, Haryana, Rajasthan, MP, UP, Bihar, Uttarakhand, Jharkhand, Chhatisgarh and
UT of Delhi, Andaman/Nicobar.
Region-B : Maharashtra, Gujarat, Punjab and UT Chandigarh
Region-C : All other States and UTs.
4. Official language implementation committee : At HQs and all branches. Committee to
meet once in a quarter to review.
5.Hindi divas - To be observed on Sept 14.
6. Target for correspondence in Hindi: (by A Region - 100% for A and B and 65% for C. By B
Region - 90% for A and B and 55% for C. By C Region - 55% each in A, B and C Region).
Reply : 100%
5. Maintained in the form of : Cash in hand or with banks including balance in CRR account
above the required CRR level, gold and investment in approved securities.
6. It is maintained as % of NDTL on a daily basis on NDTL on last Friday of 2nd preceding
fortnight.
7. Interest : As per investment made in different securities.
8. Penalty : Penal intt. for the day on which not maintained at 3% p.a. above bank rate. For
next day 5%.
9. Return to RBI : Form VIII (20th of every month)
Under the MSF, scheduled commercial banks could borrow overnight up to one per
cent of their respective NDTL below the prescribed SLR, at a rate determined with a
spread of 100 basis points above the repo rate.
MONETARY AGGREGATES
M 0- (weekly report): Currency in circulation + bankers' deposits with RBI + other deposits
with RBI (including primary dealers' balance)
M 1 - (called Narrow money) - (fortnightly) : currency with public + current deposits with
banking system + 15% of demand liabilities portion of saving deposits with banking system +
other deposits with RBI.
M 2 - fortnightly report : M 1 + time liabilities portion (i.e. remaining 85%) of saving deposits
with banking system + certificates of deposits issued by banks + term deposits (excluding
FCNR-B deposits) with a contractual maturity of up to and including one year with banking
system
M 3 - (Called Broad money) - fortnightly report: M 2 + term deposits (excluding FCNR-B)
with a contractual maturity of over one year with the banking system + call borrowings from
non-depository financial corporations by the banking system.
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LIQUIDITY AGGREGATES
L I : M 3 + deposits with post office saving banks (excluding NSCs)
L 2 : L 1 + term deposits with financial/ refinancing institutions + term borrowing by FIs +
certificate of deposits issued by FIs and
L 3 : L 2 + public deposits of NBFCs
UNIVERSAL BANKING
Universal banking (Khan Committee) means to undertake all kinds of activity of banking or
development financing activity, subject to compliance of statutory and other requirements
prescribed by RBI, Govt. and related legal Acts.
Activities include low risk activities (like acceptance of deposits and investing in securities),
medium risk activities (like granting of home loans), high risk activities (like credit cards,
forex and insurance, project financing).
Objective - To help offer world class financial services to the clients by using information
technology and cross selling with a view to (a) reduce per customer cost and (b) increase per
customer revenue, (c) take benefit of economies of scale and (d) compete with international
banks by expanding business beyond the boundaries of the countries.
CROSS SELLING
Cross selling is a marketing tool where efforts are made to sell to the customers, more than
one product. It leads to per customer (a) reduction in operational cost and (b) increase in
business and profits.
SECURITISATION
1. Securitisation is the process by which the selected loans of a bank are purchased by a
trust or company called Special Purpose Vehicle. (say, SBI sells a part of its housing finance
loans to the SPV).
2. The SPV in turn, issues marketable paper securities (called Pass Through Certificates which
is something like debentures) against the backing of such assets and sells the same to
prospective investors.
3. The major advantage or objective of securitisation is (a) recycling of funds (b)
concentration risk management.
FACTORING
1. Factoring is an arrangement under which a FACTOR company purchases a seller firm's
short term domestic receivables/book debts arising on account of credit sale to a large firm.
2. The seller firm is paid around 80% of the book debt amount immediately by the FACTOR.
The balance amount is released later on.
3. On due date, the FACTOR recovers the amount of book debt from the buyer firm. The
factor's revenue is interest and collection charges.
4. Functions of a FACTOR include
(a) financing the seller firm by purchasing its book debts
(b) keeping record of book debts and their follow-up and
(c) collect the payment on due date.
5. In case of default by the buyer firm, if the loss is borne by the factor itself, it is called
without recourse factoring. But if the loss is recovered from the seller firm, it is called with
recourse factoring.
FORFAITING
Forfaiting is on the pattern of factoring. In forfaiting there are long term and medium export
receivables (deferred payment exports) while in factoring there are short terms receivables.
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MONEY LAUNDERING
1. Money laundering means acquiring, owning, possessing or transferring any proceeds (of
money) of crime or knowingly entering into any transaction related to proceeds of the crime
either directly or indirectly or concealing or aiding in the concealment of the proceeds or
gains of crime, within or outside India.
2. It is a process for conversion of money obtained illegally to appear to have originated from
legitimate sources.
3. Indian Parliament passed `The Prevention of Money Laundering Act 2002' during
December 2002.
4. The Offences are cognizable/non-bailable.
5. Financial Intelligence Unit-India (FIU-India) is the authority to track money laundering.
6. Punishment would be rigorous imprisonment for not less than 3 years but up to 7 years
and fine up to Rs.5 lac.
7. Under provisions of the Act, the banks are required to send CTR (on monthly basis within
15 days) and STR (within 7 days when occasion arises).
CERTIFICATE OF DEPOSIT
1. Who can issue: Scheduled commercial banks (except RRBs) and All India Financial
Institutions within their `Umbrella limit'.
2. CRR/SLR: Applicable on the issue price in case of banks
3. Investors: Individuals (other than minors), corporations, companies, trusts, funds,
associations etc
4. Maturity: Min: 7 days Max : 12 Months (in case of FIs minimum 1 year and maximum 3
years).
5. Amount: Min: Rs.1 lac, beyond which in multiple of Rs.1 lac
COMMERCIAL PAPER
1. Who can issue: Financial Institutions, Primary dealers & reputed companies
2. CRR/SLR: Not applicable
3. Investors: Individuals (other than minors), corporations, companies, trusts, funds,
associations etc
4. Maturity: Min: 7 days Max : 12 Months
5. Amount: Min: Rs.5 lac, beyond which in multiple of Rs.5 lac
6. Issue of commercial paper by a company : 4 conditions are to be satisfied
(a) Net worth Rs.4 cr,
(b) sanctioned working capital,
(c) their loan accounts in standard category and
(d) credit rating of P2 from CRISIL or equivalent from others.
FAIR PRACTICES CODE (wef Apr 01, 2003)
1. Purpose - To spell out obligation of lenders towards borrowers.
2. Obligations of banks include:
(a) Contents of Loan application form
(b) Time period for disposal of loan application
(c) Assessment of limits
(d) Terms and conditions of the loan
(e) reasons for rejection.
practices for banks to follow when banks are dealing with individual customers. It provides
protection to the customers and explains how banks are expected to deal with the
customers for their day-to-day operations.
OMBUDSMAN
Objective of OMBUDSMAN
To settle customer grievances, preferably through mutual consent.
1. Scheme announced by RBI u/s 35A of Banking Regulation Act wef June 1995 (revised in
June2002 & Jan 01, 2006)
2. Applicable to all banks including RRB/Coop Banks through out India including in J&K State.
3.RBI appoints its own Chief General Manager / General Manager, as Ombudsman for 3
years at a time. Scheme expenses are funded by RBI.
4.Scope - Complaints relating to deficiency in service in deposit, ancillary/ advances area
including fair practice code & credit card. Loans related complaints relate to non-observance
of RBI directives, delay in sanction or disbursement, time schedules.
5. Complaints can be made in paper format or in electronic format (eMail).
6. Role of Ombudsman is similar to an Arbitrator.
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Internal Ombudsman :
The complaints received by Bank shall be examined as per its internal grievance
redressal mechanism. In case the bank decides to reject a complaint and/or decides
to provide only partial relief to the complainant, it should forward such cases to IO
for further examination.
Replies to complaints on receipt of IO comments shall be addressed by bank
mentioning explicitly that the complaint has also been examined by the IO and
complainant can approach the Banking Ombudsman with his case.
IOs are independent authority placed at apex position in the internal grievance
redressal machinery of the banks. The references made by banks to IOs (ie. the
rejected and partially accepted complaints) for examination should, therefore,
emanate primarily from the highest level of bank's internal grievance redressal
machinery only, which has operational role in grievance redressal, i.e. Principal
Nodal officer (PNO)/ Nodal Officer, as the case may be.
Cases to be examined by IO are those listed in clause 8 of Banking Ombudsman
Scheme. The other grievances can also be dealt with by him after they have been
examined by Bank's internal grievance redressal mechanism.
While awarding compensation, IOs would be guided by the compensation policy of
respective bank and extant regulatory guidelines.
Question Answer
15th Digit-The last digit will be a check code which will be used for detection of
errors.
2
What if the dealer migrated with wrong PAN as the status of firm was changed from
proprietorship to partnership?
New registration would be required as partnership firm would have new PAN.
3 A taxable person’s business is in many states. All supplies are below 10 Lakhs. He
makes an Inter State supply from one state. Is he liable for registration?
He is liable to register if the aggregate turnover (all India) is more than 20 lacs (Rs. 10
lacs in Special Category States) or if he is engaged in inter-State supplies.
4 Can we use provisional GSTIN or do we get new GSTIN? Can we start using
provisional GSTIN till new one is issued?
Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes,
provisional GSTIN can be used till final GSTIN is issued. PID & final GSTIN would be
same.
5 Whether trader of country liquor is required to migrate to GST from VAT as liquor is
out of GST law?
If the person is involved in 100% supply of goods which are not liable for GST, then no
registration is required.
6 Whether civil contractor doing projects in various states requires separate
registration for all states or a single registration at state of head office will suffice?
A supplier of service will have to register at the location from where he is supplying
services.
7 Whether aggregate turnover includes turnover of supplies on which tax is payable
by the recipient under reverse charge?
Outward supplies on which tax is paid on reverse charge basis by the recipient will be
included in the aggregate turnover of the supplier.
8 Is an advocate providing interstate supply chargeable under Reverse Charge liable
for registration?
Exemption from registration has been provided to such suppliers who are making only
those supplies on which recipient is liable to discharge GST under RCM.
9 When is registration in other state required? Will giving service from Nasik to other
state require registration in other state?
If services are being provided from Nasik then registration is required to be taken only
in Maharashtra and IGST to be paid on inter-state supplies.
10 I have migrated under GST but want to register as ISD. Whether I can apply now &
what is the procedure?
A separate & new registration is required for ISD.
11. I have enrolled in GST but I forgot to enter SAC codes. What should I do? The status
is migrated.
The same can be filled while filing FORM REG-26 for converting provisional ID to final
registration.
12 I have ST number on individual name and have migrated to GST.I wish to transfer
this on my proprietorship firm.
This conversion may be done while filling FORM REG-26 for converting provisional ID
to final registration.
13 Please tell if rental income up to 20 lacs attracts GST or attracts any other charge?
GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special
category States). For computing aggregate supplies turnover of all supplies made by
you would be added.
14 If someone trades only 0% GST items (grains, pulses) then is it necessary to register
for GST, if the turnover exceeds ₹20 lacs?
A person dealing with 100% exempted supply is not liable to register irrespective of
turnover.
15 Is it correct that person dealing exclusively in NIL rated or exempt goods/ services
liable to register if turnover > 20/10 Lakh?
There is no liability of registration if the person is dealing with 100% exempt supplies.
16 If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay
tax from 1st supply I make post registration?
Yes, you would be treated as a normal taxable person.
17 Whether a separate GSTIN would be allotted to a registered person for deducting
TDS (he has PAN and TAN as well)?
Separate registration as tax deductor is required.
18 Is separate registration required for trading and manufacturing by same entity in
one state?
There will be only one registration per State for all activities. But, you have the option
to be registered as a separate business vertical.
19 I am registered in TN and getting the service from unregistered dealer of AP, should
I take registration in AP to discharge GST under RCM?
Any person who makes make inter-state taxable supply is required to take registration.
Therefore in this case AP dealer shall take registration and pay tax.
20 Is there any concept of area based exemption under GST?
There will be no area based exemptions in GST.
21 If a company in Maharashtra holds only one event in Delhi, will they have to
register in Delhi? Will paying IGST from Maharashtra suffice?
Only if you provide any supply from Delhi you need to take registration in Delhi. Else,
registration at Mumbai is sufficient (and pay IGST on supplies made from Mumbai to
Delhi)
22 How long can I wait to register in GST ?
An unregistered person has 30 days to complete its registration formalities from its
date of liability to obtain registration.
23 What If I am not liable to register under GST but I was registered under Service tax ?
You can apply for cancellation of Provisional ID on or before 31st July 2017.
24 When turnover of agents will be added to that of the principal for registration?
No.
25 If I am not an existing taxpayer and wish to newly register under GST, when can I do
so?
You would be able to apply for new registration at the GST Portal gst.gov.in
26 If I buy raw material from supplier unregistered in GST, do I have to pay GST in RCM
36 I am a service provider with turnover of Rs. 50 lakhs in one state only. Am I eligible
for the composition scheme?
Service providers, except restaurants/caterers, are not eligible for composition
scheme.
37 I am an ice cream manufacturer with No. The following three classes of persons,
sales in one state only. Can I avail the namely
option of composition? - Ice cream and other edible ice, whether or
not containing cocoa.
- Pan masala
- All goods, i.e. Tobacco and manufactured
tobacco substitutes are not eligible for benefit
of composition scheme.
38 If I register under the composition scheme, can I opt out of it later? What happens
to my stock if I do so?
Those availing composition can exit and opt for normal tax scheme anytime. They
would be eligible for ITC on stocks available on the date of switchover in terms of
section 18(1)(c ) of CGST Act, 2017.
39 Can I register as a normal taxable person now and avail of the composition scheme
later?
You can opt for composition scheme from the beginning of the next financial year on
submitting the option to avail composition scheme before beginning of the financial
year. It may please be noted that composition scheme cannot be availed from the
middle of a financial year.
40 I have registered as a composition dealer. If my turnover crosses Rs. 75 lakhs, can I
continue in the scheme for the remaining financial year?
No, taxpayer becomes ineligible for composition scheme on the day the turnover
crosses Rs. 75 lakhs.
41 If I was registered earlier but am not required to register under GST, what to do
about provisional ID and accumulated ITC?
Please apply for cancellation of registration under Section 29(1) of the CGST Act, 2017
read with Rule 24(4) of CGST Rules, 2017. You will be required to calculate and pay ITC
availed on goods held in stock on the date of cancellation of registration.
42 I was registered under Central Excise or Service Tax, but could not migrate and
therefore have taken a new registration. Will I be eligible for transitional credit?
In your new registration application, if you have referred to your past registration no.
of Central Excise or Service Tax, you will be eligible for transitional credit under Section
140 of CGST Act, 2017 read with Rule 117 of CGST Rules, 2017.
43 I have migrated and received provisional ID but not GSTIN, how do I supply goods or
services or both?
Provisional ID (PID) will be your GSTIN. You can supply goods or services or both
specifying PID as your GSTIN on Invoice.
44 I have not received ARN or have received ARN but not GSTIN, how do I supply goods
or services or both?
You can supply goods or services or both on bill of supply without mentioning GSTIN
and/or ARN. On receipt of GSTIN, you will need to issue revised invoice mentioning
GSTIN. You are required to reflect this supply in your return and also pay tax thereon.
45 I am a supplier of exempted goods based out of Delhi and procure raw material
from Kerala. My supplier from Kerala insists that I have to be registered in Delhi for
procurement of Inter-State goods. Is he right ?
No, if you are dealing in 100% exempted supplies you are not liable to be registered in
GST. There is no requirement of registration for making inter-state purchases.
46 Is GST registration mandatory for small retailers to buy from dealers/wholesalers?
There is no such requirement under GST law.
47 I have a pending export refund in Service Tax. What will happen?
Refunds under earlier laws will be given under the respective laws only
48 As an exporter, how do I ensure that my working capital is not blocked as refunds?
Appropriate provisions have been made in the law by providing for grant of 90%
refund on provisional basis within 7 days from filing of registration.
49 What will be the impact of GST on coal? Will the clean energy Cess on coal go or will
it stay?
Clean Environmental Cess on coal will be replaced by GST Compensation Cess.
50 Suppose I am in composition scheme in GST. If I purchase goods from unregistered
person, then GST will be paid to Government by me or not?
Yes, you will be liable to pay tax on reverse charge basis for supplies from unregistered
person.
51 What duties will be levied on import of goods?
Customs duty and cess as applicable + IGST+ GST compensation cess. IGST and GST
compensation cess shall be paid after adding all customs duty and customs cess to the
value of imports.
52 Present Procedures have Service Tax on Nepal, But no Goods Tax on Nepal. But,
With GST, what tax will apply?
The export procedure for Nepal would be same as that to other Countries.
53 How would the sale and purchase of goods to and from SEZ will be treated? Will it
be export / input?
Supply to SEZs is zero rated supplies and supplies by SEZs to DTA are treated as
imports.
54 When goods are being imported from SEZ who will pay IGST?
Such supply is treated as import and present procedure of payment of duty continues
with the variation that IGST is levied in place of CVD.
55 Who will pay IGST when goods are procured from SEZ? Today importer is paying
both BCD and CVD.
Such supply is treated as import and present procedure of payment continues with the
variation that IGST is levied in place of CVD.
56 Is SGST of Rajasthan charged by supplier on purchase from Rajasthan can be utilize
for payment of SGST in Madhya Pradesh?
SGST of one State cannot be utilized for discharging of output tax liability of another
State.
57 How one can use SGST credit for the payment of IGST on another state?
SGST Credit can be used for payment of IGST liability under the same GSTIN only.
58 Can one State CGST be used to pay another state CGST?
The CGST and SGST Credit for a State can be utilized for payment of their respective
CGST/SGST liabilities within that State for the same GSTIN only.
59 In case of service supplied, should the credit be given to the state where it is billed
or the state it is rendered?
Tax will be collected in the State from which the supply is made. The supplier will
collect IGST and the recipient will take IGST credit.
60 Company is engaged in manufacturing of cement & power. Which rule to be
referred for reversal of credit related to power business?
Detailed rules for reversal of ITC when the supplier is providing exempted and non-
exempted supplies have been provided in ITC Rules.
61 How will the credit / debit note from unregistered supplier be reported to GSTN
and ITC claimed in the same?
Like invoice, credit/debit notes on behalf of unregistered person will be given by
registered person only. Further, GSTR2 provides for reporting of same by the recipient.
62 A shop sells taxable & exempt products to the same person (B2C), is it required to
issue tax invoice and bill of supply separately?
In such a case the person can issue one tax invoice for the taxable invoice and also
declare exempted supply in the same invoice.
64 All expenses like freight / transport / packing which are charged in Sales Invoice are
taxable in GST? How to charge in bill?
All expenses will have to be included in the value and invoice needs to be issued
accordingly.
65 Can we move construction material to builders on delivery challan and issue tax
invoice post completion of activity?
If the goods are meant to be supplied in the course of construction an invoice is
necessary. If the goods are tools which are to be used for construction then delivery
challan should be issued.
66 How to treat following transaction in GST (i) Delivered supply shortages in Transit.
(ii) Customer gets less quantity and pays less.
The supplier may issue credit note to the customers.
67 Should we issue Self Invoice for GST liability discharge on RCM or GST can be
discharge through expenses booking voucher?
For RCM liabilities tax invoice has to be issued on self.
68 What would be done on tax paid on advance receipt if advance has to be refunded
in any circumstance
Advance refunded can be adjusted in return.
69 Do registered dealers have to upload sale details of unregistered dealers also in
GST?
Generally not. But required in case of inter-State supplies having invoice value of more
than Rs 2.50 Lakhs.
70 How to incorporate two supplies in return for Pharma with same HSN code of four
digits but having different tax rates?
Returns provide for furnishing rate wise details.
71 Should we discharge GST liability for all reverse charge having small amounts of
Transaction or any amount limit is there?
It has been decided that Rs. 5000/- per day exemption will be given in respect of
supplies received from unregistered person. For supplies above this amount, a
monthly consolidated bill can be raised.
72 What is treatment of promotional item given free to end consumers by FMCG
companies?
Tax will be charged only on the total consideration charged for such supply.
73 Under supply from unregistered dealer the purchaser have to pay GST on RCM
basis.so whether stipend paid to intern will also come under RCM?
Stipend paid to interns will be employer-employee transactions. Hence, not liable for
GST.
74 Salary by partnership firm to Partners as per Income Tax Act liable to GST?
105 Whether IGST would be levied twice on high seas sales? First on high seas sales and
second on custom clearance. IGST paid on 1 available as ITC?
IGST shall be levied only once on imports.
106 Will KrishiMandi Fee (imposed in U.P.) be waived off in GST?
GST does not concern such fee so GST does not affect it.
107 Is E-Way Bill applicable from 1st July 2017
The present system for E-way Bill in States to continue, till the E-Way Bill procedures
are finalized.
108 Is there a sunset clause for Anti-Profiteering law?
Yes, the sunset clause for Anti-profiteering Authority is of two years.
109 Which documents should be used in case of inter-state supply of goods until e-way
bill rules are notified?
The documents specified under Rule 48 of the CGST Rules, 2017 may please be
referred. Triplicate copy of invoices for supply of goods and duplicate copy of invoice
for supply of services may be used.
110 If I use my credit card to pay utility bills, will I end up paying GST twice; once for the
service and second time for the credit card bill?
No, GST is not leviable on the entire credit card bill; it is charged only on the
fee/commission charged by the credit card company.
111 We currently transport material on delivery challan and make a single bill at the end
of the month. Can the same be done under GST?
If on every instance you are making a supply then an invoice needs to be issued. For
any other movement of goods other than supply (as specified in Rule 55 of CGST Rules,
2017), a delivery challan may be issued.
112 Will service charge, as charged by some restaurants, be treated as consideration for
a supply and hence considered liable for tax?
There is no distinction between goods or services under GST. Service charge like any
other supply will be leviable to GST. It is also clarified that service charge is not a
statutory levy. It is not levied by the Government.
113 What to do with stock lying with me on 1.07.2017. Do I need to charge GST?
Yes, you need to charge GST but you can use transition credit, if available on the said
goods.
114 I am a small manufacturer who supplies cycle parts to two manufacturing units in
the same area. For every supply, I generate an invoice and take 500 Rs. flat for
cartage and loading charges. What tax rate to be charged on the cartage and
loading expenses?
This will be a composite supply where the principal supply (the goods) cannot be
The goods/sectors that will be out of the GST ambit include alcohol and
specified petroleum products i.e. petroleum crude, high speed diesel, motor
spirit, aviation turbine fuel and natural gas. Petroleum products will be inducted
into GST at a later date. Alcohol will continue to attract state excise duty and
VAT. Tobacco and tobacco based products will attract both excise duty and
GST. Taxes such as stamp duty, toll tax, road tax, electricity duty etc. will not
bepart of GST.
What are the contents of a tax invoice to be issued under GST regime?
123
PENALITIES:
Banks not to make cash payments of FOR plus Interest of Rs 20.000 and above, If bank pays cash, penalty is
equal to sum of cash so paid. (Sec. 271 E). NO imprisonment
Failure to furnish AIR: Penalty of Rs, 100 for each day during which the failure continues (Sec. 271 FA. IT Act)
Failure to Deposit Tax with Central Govt. UIS 276 (B): imprisonment from 3 months to 7 years. '
TDS: Failure to deduct TDS - Tax + 18% interest + Penalty not exceeding tax amount
TDS: Delay In deposit of TDS deducted: 18%p,a',lnterest from the date the tax was deductible and actually paid.
.
PAN I TAN: Failure to comply with provision of PAN /TAN: Rs.10,000
TDS PROVISIONS
Legal Provisions: Section 194 of Income Tax
Act
Type of interest: On Term Deposits excluding
RD
Amount: Where Interest paid/payable is above Rs 10,000 (wef 1-6-2007) in financial year
Tax Rates: Resldents-l0% + surcharge (10.25% ) .. Corporate -20% (No surcharge) NRO (No surcharge)
Minor Account: To be clubbed with guardian
Joint Account: Deduction in the name of 1st I account
holder
NRI Account: TDS applicable only on NRO account
TDS Certificate: TDS certificate to be Issued on Form No 16-A within 1 month from end of
month during which deduction made, or within 30 days from date of close of financial year
Exemption from Deduction: Declaration on form NO 15-G For Senior Citizen ( 60 years and
above) the declaration IS on Form No. 15-H.
Submission: To Income Tax Deptt. within 7 days of the following month and within two month
If deduction is made on last day of the accounting year
Payments to Contractors: Where amt of single payment exceeds Rs 30,000 or total amount
exceeds Rs 75.000 during financial year
Rent payments: Where amount exceeds Rs 1,80,000 In a financial year
Professional Fee: Where payment exceeds Rs 30,000 In a financial year
Penalty: Interest @ 1.5% pm Penalty equal to amount of tax, Imprlsonment-3 mts to 7 yrs
INSURANCE BUSINESS
Insurance business can be:
(a) Bancassurance (selling policies of other companies for commission as corporate agent -
called without risk)
(b) underwriting (risk based).
Licence from IRDA required for both. RBI permission not required for Bancassurance.
Underwriting business: (with risk insurance business).:
1. Business can be done through a separate subsidiary company as a joint venture.
2. Maximum investment of the bank can be 50% of the capital of the company.
3. Permission to be obtained from RBI, if following parameters are complied with.
(a) Net worth: 500 cr
(b) Profits: 3 years
(c) Net NPAs: Reasonable
(d) Capital adequacy ratio: 10%
(e) Performance of subsidiaries: Satisfactory
In the 2013-14 budget , Bank can be agent for various insurance companies .
Bottom of Form
balance sheet. It can go up to 125% on any particular day during a fortnight period.
(b) Lending: On a fortnightly basis, maximum 25% of capital fund of latest audited balance
sheet. It can go up to 50% on any particular day during a fortnight period.
SHORT SELLING: Short Sale is the sale of securities which a bank does not own i.e. a bank
sells to another bank, a govt. security (say treasury bill or dated securities) which the selling
bank does not own presently, with the understanding to deliver the security on a fixed future
date. The facility is to enhance the liquidity in the G-sec markets and to provide participants
with a tool to express two-way view on interest rate.
Book building is the process to assess demand for a particular public issue at within a range
of prices, based on which the issue is priced and sold to the investors. The book runner (lead
manager) collects orders from various investors through other participating members.
Thereafter he decided the yields to be offered based on the orders received and the yields
quoted for them.
DERIVATIVES PRODUCTS
DERIVATIVE:
A derivative is a financial contract that derives its value from another financial
product/commodity (say spot rate) called underlying (that may be a stock, stock index, a
foreign currency, a commodity). Forward contract in forex, a simple form of a derivative.
OPTION: It is contract that provides a right but does not impose any obligation to buy or sell
a financial instrument, say a share or security. It can be exercised by the owner. Options offer
the buyers, profits from favourable movement of prices say of shares or foreign exchange.
VARIANTS OF OPTIONS: There are two variants of options i.e. (a) EUROPEAN OPTION (where
the holder can exercise his right on the expiry date) and
(b) AMERICAN OPTION (where the holder can exercise the right, anytime between purchase
date and the expiry date).
COMPONENTS: Options have 2 components i.e. call option and put option. Owner's liability
is restricted to the premium he is to pay.
(a) CALL OPTION : Owner (buyer), has the right to purchase and the seller has the obligation
to sell, a specified no. of instruments (say shares) at a specified rate during the time prior to
expiry date.
(b) PUT OPTION : Owner or the buyer has the right to sell and the seller has the obligation
to buy during a particular period.
IN THE MONEY UNDER AN OPTION : Where exercising the option provides gain to the buyer,
it is called in the money. It happens when the strike price is below the spot price, in case of a
call option OR the strike price is above the spot price, in case of a put option.
AT THE MONEY: Where exercising the option provides no gain or loss to the buyer, it is called
at the money.
OUT OF THE MONEY: Where exercising the option results into loss to the buyer, it is called
out of the money. It is better to let the option expire.
FUTURES:
The futures are the contracts between sellers and buyers under which the sellers (termed
'short') have to deliver, a pre-fixed quantity, at a pre-fixed time in future, at a pre-fixed price,
to the buyers (known as 'long').
The main features of a futures contract are that these are traded in organised exchanges,
regulated by institutions such as SEBI, they need only margin payment on a daily basis.
Futures contract are made primarily for hedging, speculation, price determination and
allocation of resources.
FORWARDS:
The forward on the other hand is a contract that is traded off-the-stock exchange, is self
regulatory and has certain flexibility unlike future which are traded at stock exchange only,
do not have flexibility of quantity and quality of commodity to be delivered and these are
regulated by SEBI, RBI or other agencies.
SWAPS :
It stands for simultaneous sale of foreign currency in spot and purchase of foreign currency
forward OR purchase of foreign currency in spot and sale of foreign currency forward. In
other words, it is exchange of foreign currency flows taking place at different times.
ASSETS CLASSIFICATION
INITIATION OF NPA SYSTEM The process of prudent guidelines on NPA was initiated by RBI in
the year 1992-93, on recommendations of Narasimham Committee.
WHEN ACCOUNT BECOMES NPA DUE TO PROBLEM IN RECOVERY / REPAYMENT :
1. Term Loan : interest and/or instalment of principal remain overdue for a period of more
than 90 days (Due date of instalment payment was Dec 12, 2009 which borrower failed to
pay. Account becomes irregular from Dec 13 and NPA after 90 days (i.e. 19+31+28+12) on
Mar 13, 2010.
2. Bills account: Bill remains overdue for a period of more than 90 days (Due date of bill was
Dec 12, 2009. The drawee failed to pay. Bill becomes overdue on Dec 13 and NPA after 90
days (i.e. 19+31+28+12) on Mar 13, 2010.
3. Other loans : Any amount to be received remains overdue for a period of more than 90
days
4. Cash credit / Over draft : The account remains out of order for a period of more than 90
days. (Account became out of order as balance exceeded the sanctioned limit wef Dec 12,
2009. Account becomes NPA after 90 days (i.e. 20+31+28+11) on Mar 12, 2010.
5. Out of order is an account
(a) where the balance is more than sanctioned limit or drawing power (Balance exceeded
the limit on Dec 12, 2009. Account became out of order on Dec 12, 2009). OR
(b) balance is within limit or drawing power but
(i) where as on date of balance sheet, there is no credit in the account for 90 days or
(ii) credit is less than interest debited or
(iii) where stock report has not been received for 3 months or more.
Further, if the sanction of limit is not renewed on due date, the account becomes sub-
standard after 6 months (Date of sanction - Jan 10, 2008. Due date of renewal - Jan 09, 2009.
If limit not renewed for 6 months, account becomes NPA on Jul 10, 2009).
6. Special mention account (SMA): During period of irregularity up to 90 days, before
becoming NPA, the account is called SMA, which is part of Standard account.
GROUP DEFINITION
STANDARD Accounts which are in order
SUB Accounts which have been classified as NPAs for a period not exceeding 12
STANDARD months
DOUBTFUL Sub standard accounts, which have remained NPAs for a period exceeding 12
months
LOSS ASSETS Accounts which have become unrealizable, where losses have been
identified by the bank / internal / external auditor / RBI Inspectors.
SMA Special mentioned assets: RBI has instructed banks to identify a/cs which are
overdue/out of order but not NPA & maintain a special watch.
CATEGORY PROVISION REQUIREMENTS
STANDARD Direct Agri & SME All other loans & Commercial Real Teaser Rate –
ASSETS sectors Advances Estate Housing Loan
0.25% 0.40% 0.75% 2%
Residential)
1%
( Commercial)
SUB- Secured Sub-standard Unsecured Sub-standard : Where the value of
STANDARD security is not more than 10% right from the
ASSETS beginning i.e. ab-initio
15% of outstanding 25% of outstanding dues*
dues *20% for Infrastructure Loans with escrow
arrangement
DOUBTFUL D1 D2 D3
ASSETS First 12 months Next 24 months Over 36 months
RVS Shortfall in RVS Shortfall in 100% Uniformly
Security Security
25% 100% 40% 100%
LOSS ASSETS The entire assets should be written off. If permitted to remain in the books
for any reason, 100% of the outstanding should be provided for.
15. DRT pending case: Banks can make use of SARFAESI Act for sale of security for such
pending cases as per Supreme Court judgement in Transcore vs Union of India).
13. Implementation on approval : Decision binding on all creditors where 75% by value and
60% in number, agree. Provision shall be made for this in the inter-creditor agreement.
1. DEPOSITS
One of the important functions of the Bank is to accept deposits from the public for the
purpose of lending.
DEMAND DEPOSITS
It means a deposit received by the Bank, which is withdrawable on demand. (Current
and Savings Account Deposits are Demand Deposits)
1. "Savings Deposits" means a form of demand deposit which is subject to restrictions
as to the number of withdrawals permitted by the Bank during a specified period.
2. "Current Account" means a form of demand deposit where from withdrawals are
allowed any number of times depending upon the balance in the account or up to a
particular agreed amount and will also include other deposit accounts which are neither
Savings Deposit nor Term Deposit like margin deposits where no interest is payable.
3. Overdue Term Deposits : Term Deposits on maturity if not renewed or encashed,
will be treated as Overdue Term Deposit and it will be classified as Demand Deposits.
TIME DEPOSITS :
"Term Deposit" means a deposit received by the Bank for a fixed period generally
withdrawable only after the expiry of the fixed period and include deposits such as
Fixed Deposits, Samruddhi Deposits, Recurring Deposits, Loan linked Recurring
Deposits / insurance linked R.D., Dena Freedom Deposit, and Dena Savifix.
Minimum period of 7 days and for a maximum period of 10 years. However, as per
mandate of the customer, Term Deposit can be renewed on the date of maturity for
the period mentioned in the mandate at the rate prevalent on the date of maturity.
the savings account is insufficient for withdrawal or to honour a cheque, the requisite
amount will be automatically transferred from the fixed deposit account to Savings Account
in units of Rs. 5,000/-( Card rate of interest applicable for the period the deposit remained in
Fixed Deposit would be credited in the Savings Account)
4. Dena Recurring Deposit Scheme enables the depositor to save in fixed monthly
installments. One can choose different maturity plans depending on one's saving goals
desired.
5. Dena Premium Savings Account Scheme
Target Clientele: Women in the age group of 18 years and above, including Salaried
Employees [Govt/PSU/Private Sector/MNCs], Doctors, Advocates,
Entrepreneurs,Women with independent source of income,Housewives,Students
Any New saving account opened by women either singly or jointly.
First account holder should belong to the target group.
Initial Deposit
• Zero Balance
• No Daily Minimum Balance Requirement,
• Quarterly Average Balance (QAB) of Rs. 2500/- or above maintained in Rural/ Semi
Urban
• QAB of Rs. 5,000/-or above is maintained in Urban/ Metro
Platinum RuPay Card, Free- Personalized Cheque book (50 leaves) per annum,
FREE Internet / Mobile Bkg/ Monthly A/c Statement NEFT/ RTGS through Internet
Bkg/Passbook / Utility Bill Payments
Auto Sweep in / out (Savifix Facility)
Linked family Account :Two Zero Balance Family accounts with zero balance facility
only.
*Family- Spouse & Children
With an objective to enhance our Low Cost Deposit clientele base and to increase CASA
Deposits, a new Saving Bank Account Scheme named as “Corporate Salary Account” has
been designed. The targeted clientele for the scheme are employees working in Central /
State Government/ PSUs/ Reputed Public Limited Companies/ MNCs/ Reputed Educational
Institutions (Govt. recognized/ aided Schools/ Colleges/ Universities/ Research Institutes
who have more disposable income and capable of maintaining large balance in Savings Bank
Account.
The main feature of the scheme is availability of an overdraft upto two months net salary of
the account holder which shall enable them to meet their urgent social
obligation/requirement such as medical/educational expenses etc.
The salient features are as follows:
Eligibility The permanent employee of Central / State Government/ PSUs/ Reputed
Public Limited Companies/ MNCs/ Reputed Educational Institutions (Govt.
recognized/ aided Schools/ Colleges/ Universities/ Research Institutes and
all existing account holders working for above offices or Companies, upon
their request, are eligible under the Scheme.
Minimum The account can be opened and maintained at Zero Balance. The account
Balance holder will be allowed to maintain at zero balance as long as he/she
associated with that organization. In case of Retirement, switch over to
other organization the Account will be treated as Regular Savings Bank
Account wherein he/she will have to maintain the required minimum
balance. (minimum balance charges)
Interest As per the extant Rates for Saving bank A/c
offered
ATM cum Free
Debit Card
Internet Free
Banking
CBS Free, within the bank (InterSOL Transactions)
Transactions
Cheque Book Free 3 Cheque Books of 20 leaves(per annum)
RTGS/NEFT Free
Pass book Available
Facility
Transactions at Account holder can withdraw upto maximum of Rs 20,000/- per day
ATM through ATM & Rs 50,000/- through Gold Debit Card.
There are no restrictions on number of withdrawals from Dena Bank ATM
as per existing Policy of the Bank. Withdrawals from other bank’s ATM will
attract applicable charges from time to time.
Add on facilities other Deposit products
Online Tax/ Utility Bill Payment Available
SMS Alerts on Transaction Free as per extant guidelines
Overdraft Facility Limit of Overdraft: Upto Two months’ Net Salary
Rate of Interest: Applicable to temporary overdraft facility/
clean loan
Documents : As per overdraft facility
Review of facility: Every year
Retail Loan Facility Available, as per extant guidelines
The other terms and Conditions of the eligibility for overdraft are as follow:
1) The conduct of the account is to the satisfaction of Sanctioning Authority and free from
any adverse CIBIL Report.
2) The account should be at least 3 months old.
3) The account holder should have minimum 6 months of completed service and/or he
should be a permanent employee. However, considering business potential, Zonal
Manager can waive these conditions.
4) An undertaking to be obtained from employer that salary of the employee will not be
shifted to other bank without NOC from our Bank. However NOC may be given on
recovering entire dues payable to our Bank.
5) The latest salary certificate duly attested by the Employer to be obtained.
6) The end use of the overdraft is to meet the contingencies need/ requirement of the
account holder. The request letter to be obtained from the account holder and to be kept
on record.
It will also boost our Retail Banking Products
8. Premium Current Account Scheme
The above facility is subject to a maximum of 10 DDs / MTs / Pay Orders/ Outstation
cheques per month.
If the account holder maintains more than Rs. one lac balance in his account then the
concessions will be increased proportionately in multiples of Rs. One Lac.
2. If the Minimum balance / Monthly average balance is not maintained penalty will be
charged
The Scheme is optional.
As per the guidelines of this scheme, the concessions are offered on all service charges
to customers if quarterly average balance in their current is in excess of Rs. 2.50 lacs and
50% concessions if the quarterly average balance is more than Rs.1.25 lac but less than
Rs.2.50 lacs, for Metro and Urban Branches.
Similarly, 100% concessions are offered on all service charges if quarterly average
balance in their current is in excess of Rs. 1 lacs and 50% concessions if the quarterly
average balance is more than Rs.50000/- but less than Rs. 1 lac, for Semi-urban and
Rural Branches.
Rs.
Rs. 2.50 1.25lacsand Rs. 0.50 lac and
QUARTERLY AVERAGE Rs. 1 lac and
lacsand above but above but less
BALANCE above
above less than than Rs.1lac
Rs.2.50 lacs
Intersol Charges 100 % Free 50 % Free 100 % Free 50 % Free
Cheque Book 100 % Free 50 % Free 100 % Free 50 % Free
Cheque Return Charges 100 % Free 50 % Free 100 % Free 50 % Free
Collection of outstation
100 % Free 50 % Free 100 % Free 50 % Free
cheque
Cash Handling 100 % Free 50 % Free 100 % Free 50 % Free
Folio Charges 100%Free 100%Free
Commission on
100 % Free 50 % Free 100 % Free 50 % Free
DD/MT/PO
ATM-cum-Debit card 100%Free 100%Free
Standing Instruction 100 % Free 50 % Free 100 % Free 50 % Free
Stop Payment Charges 100 % Free 50 % Free 100 % Free 50 % Free
NEFT/RTGS 100%Free 100%Free
C. Facilities provided:
a. Sweep in and sweep out facility: Automatic transfer of balance from Current
Account in excess of Rs. 200,000/- to Fixed Deposit, in multiples of Rs. 25000/- and
re-transfer of funds from the Fixed Deposit to Current Account in multiples of Rs.
25000/- only in “First in First out” basis.
b. EITHER
Free Demand Drafts up to an aggregate amount of Rs. 2 lac per month
OR
Free collection of Outstation cheques up to Rs. 1 Lac per month on the centers where we
have branches. Actual postage & out of pocket expenses shall be borne by the account
holder. Where we do not have a branch, only our commission will be waived. The
account holder has to bear the commission of the agent bank in addition to postage &
out of pocket expenses.
c. The above facility is subject to a maximum of 20 DDs or Outstation cheques per month
as per month as per the option chosen by the customer at the time of opening the
account or the system will choose the first transaction done by the customer as the
option by default
d. Free Debit card e. Free Internet Banking f. Free RTGS/NEFT g. TDS will be
deducted as per extant guidelines.
b. The maximum period of term deposit (for the amount in excess of Rs. 2 lac
transferred from Current Account) would be 181 days.
E. Conditions:
a. Monthly average balance of Rs.2 lac is to be maintained for one full calendar month.
b. A minimum balance of Rs.5000/- has to be maintained in the account at any point of
time.
c. Card rate will be applicable for units converted to term deposits if the aggragate
amount of adeposit so converted to term deposit is less than Rs. 1 crores per day.
d. Bulk deposit rate on term deposit to be announced by the Treasury Department every
day would be applicable for units converted to term deposits if the aggregate amount of
deposit so converted to term deposit is Rs.1 crore and above per day.
F. Penalty for not maintaining the Minimum balance / Monthly average balance
13.Dena Recurring Deposit Scheme :The scheme enables the depositor to save in fixed
monthly installments with different maturity plans depending on the need of the
customer.By depositing a little amount every month, the depositor gets a tidy lump-sum
amount of principal plus interest at the end of the chosen period. Minimum monthly
installment amount: Rs.50/- and in multiples of Rs. 5/- thereafter.As the old adage goes
"little drops of water, makes a mighty ocean". This scheme is ideally suited for young salaried
people to inculcate a regular and compulsory saving habit.
14. Dena Freedom Deposit Scheme :Dena Freedom Deposit Scheme, is offered with
cheque book facility to enable the customers to withdraw upto 90% of the initial deposit
amount as overdraft.This Deposit scheme ensures that the money of the deposit is neither
blocked nor are depositors stuck with time consuming paperwork.Minimum Deposit : Rs.
10,000/-, which is automatically renewed in multiples of Rs.1,000/-. Deposit Period: 1 - 5
years, compounded interest payable on maturity on the deposit amount.
Rate of Interest: Card rate.
15. Dena Fixed Deposit Scheme :Dena Fixed Deposit Scheme allows the customer to
choose the intervals of receiving their interest. They can choose yearly, half-yearly, quarterly
or even monthly interest payments according to their needs of income.Duration : The
deposit is accepted under this scheme for a minimum period of 7 days to a maximum period
of 10 years.
Rate of Interest: Card rate of interest applicable.
16.Dena Maha Tax Bachat Yojana : A Deposit scheme to avail Income Tax benefit u/s
80C: Any Individual or a Hindu Undivided Family [HUF] can invest a minimum amount of Rs
100/- or multiples thereof, to avail Income tax benefit u/s 80C of the Income Tax Act subject
to a maximum of Rs 1,50,000/- in a financial year.
Rate of Interest :Card rate of interest applicable for deposits of 5 years and above.
Interest Payment: Option available to receive interest either at the time of maturity with
Quarterly Compounding [cumulative] OR at Monthly / Quarterly / Half-yearly / Yearly rests
[non- cumulative].
Period of Deposit: Fixed maturity period of 5 years. Premature withdrawal is not permitted
Deduction under section 80C: In case of joint holder type deposit, the deduction from
income under section 80C of the Act shall be available only to the first holder of the deposit.
Nomination Facility: Available, except in the case of term deposit held by or on behalf of
minor.
Permanent Account Number [PAN]: PAN is mandatory to invest in this scheme.
Rate of Interest Card Rate (similar to the Domestic Term deposits for a
period of 7 years and above).
Initial Deposit Amount This will depend on maturity value selected and rate of
interest applicable at the time of purchase.
Premature withdrawal Available
On line creation of Term Deposits :Term Deposit online can be opened by the Individual customers
who have registered for Internet Banking by logging through their Internet Banking user id and
password. The following types of deposits can be opened online
a. Cumulative Plan – Samrudhi Deposit Scheme ( SDR )
b. Non Cumulative Plan – Fixed Deposit Scheme ( FDR )
Deposit will be opened as per the existing details available with the Bank i.e. Name, constitution
for the logged in customer.System will not process the request, if account is Dormant / Inactive /
Frozen or if there is no sufficient available balance in the account. In respect of FDR, periodic
interest earned on the deposit and the deposit amount ( on maturity ) will be automatically
credited to the account from which the deposit is funded. The maturity value of the deposit will be
credited to the same account from which the is funded for cumulative deposit.Customer has to
deposit contact the account maintaining branch in person for Nominations / any updations in the
personal data.Date of Birth & PAN is mandatory and TDS will be deducted as per IT guidelines.
Depositor should submit form 15-G / 15-H to the branch where the deposit is maintained to avoid
deduction of TDS on the interest amount earned on the deposit. In case Form 15-G / 15-H is not
submitted, the maturity value will be reduced to the extent of TDS applicable on the deposit as per
extant guidelines . Depositor should print / save cyber receipt generated after opening the deposit
for record purposes. Customer has to contact the account maintaining branch in person along with
the cyber receipt for premature closure of the deposit.There is no need for the customer to visit
the branch either for creation or closure of the term deposit.it is convenient and easy to use with
24 * 7 availability.For creation of Term Deposits on line, users have to select Requests
----------Submit Requests------------FD Account Opening--------and fill up the relevant details and
submit. After successful creation, Cyber Receipt, with all the details about the term deposit, will
be generated which can be printed / retained by the customer for record purposes.
Have you gone out of India for : Have you to come to India for
Have you gone out of India for : Have you to come to India for:
Yes No Yes No
CITIZEN OF
INDIA FOREIGN
resident CITIZEN
OTHER
THAN
NEPAL OR Person of Non
BHUTAN Person of Indian Origin (he
Indian Origin is not NRI, he is
(PIO) (see next foreign national)
diagram)
For any of following purposes:
Employment outside India or
Carrying out business/
vocation outside India or comes to India for any purposes other than :
Any other circumstances which 1. Employment in India
indicate his intention to stay 2. Carrying out business/ vocation In India
outside India for uncertain period 3. Any other circumstances which indicate his
intention to stay in India for uncertain period
exchange rates.
Salient features:• The amount held is repatriable (Principal as well as Interest).• It can be opened
in Dena Bank in Seven currencies viz. US Dollars, Pound Sterling, Euro, Australian Dollar, Canadian
Dollar, Singapore Dollar and Hong Kong Dollar.• The interest earned in this account is not subject
to Income Tax and amount held is exempted from Gift tax/ Wealth tax.• This is maintained as a
term deposit for not less than 1 year and not exceeding 5 years.• Nomination facility is
available.• Joint account with NRIs is permitted.
• A loan against deposit is permitted.• A loan to depositor in foreign currency is permitted.
• Resident can operate the account under Letter of Authority or Power of Attorney.
1. Dena Debit cum ATM Card (Named / Unnamed , Rupay / VISA / EMV Card)
2. ATM withdrawal / Shop Purchases / Net purchases by Dena Debit Cards
3. Dena I-Connect (Dena Bank Internet / Net Banking services),
4. Utility Bill Payment by Dena Bank Net Banking
5. Online Term Deposit (FDR / SDR) Generation by Dena Bank Net Banking
6. Online Remittances by online NEFT / RTGS (by Dena Bank Net Banking)
7. Viewing 26AS (TDS statements) and e-Filing IT Return (by Dena Bank Net
Banking login )
8. Online purchases by Dena Bank Net Banking (through BillDesk )
9. Dena Alert Services by SMS
10. Dena Garima (CBS Project) , Anywhere Banking (Intersol transaction possible)
11. Dena RTGS/NEFT Facility
12. Dena Phone Banking
13. Dena NECS / ECS
14. Mobile Banking, Dena M-Connect, IMPS(Immediate Payment Service), USSD
(Unstructured suplimentary Service Data), SMS Based
15. Dena Miss call facility to know Balance and Mini-statement of max 5 operative
accounts at FREE of cost
16. Dena Bank app on Mobile services (ATM/E-lobby/Branch Locator, IMPS etc.).
17. Online Complaint Management on Dena Bank website (Branch uses CITRIX
CLIENT MANAGEMENT WEB SOFTWARE for updating complaints & Grievance
redressal)
18. Tracking AADHAR Seeding in Account (on Dena Bank website)
19. Online Request for AADHAR and LPG Seeding & track seeding status (on Dena
Bank website)
20. Dena e-Trade (Online Trading in shares)
21. Dena e-Tax Pay (e-Payment of Both Direct Taxes and Indirect Taxes like Customs
Duty, Excise Duty & Service Taxes)
22. E-payment to Govt Treasury Depts., Virtual Treasuries.
23. Prepaid Cards (Dena International Travel Cards / Gift Cards
24. Dena Demat Services / ASBA (Application supported by blocked application)
25. Online Donations / FREE Utility payments by VISA Bill Pay (by VISA Debit Cards)
26. Treasury Operation (Online Card Rates for current Date) (on Dena Bank website)
27. Bancassurance in Branches (Corporate agents for Life Insurance Corp LIFE and
United India Insurance Policies NON-LIFE)
28. Distribution of Mutual Funds (In branches) ( see list of Mutual Funds in
www.denabank.com )
29. PPF Account Opening and maintainance in 88 authorised branches ( see list of
authorized branches in www.denabank.com )
The customer of any of our Core banking (CBS) branches can contact any CBS branch
for a printed Application form. Alternately they may also download the application form
from Bank website: www.denabank.com . After branch receives the Dena I Connect
filled in form the entry is made in “BDTM” menu option in Finacle. After Day end
process the Internet Banking Cell in Data Center issues PIN Mailers (Sign-on and
for Sign-On Password and Transaction Password). These PIN Mailers have to be
issued to customer with acknowledgement.
*Personal and Corporate Login Option available
With a view to increase the customer registrations base for Internet Banking and Mobile
Banking applications, Information Technology Department, HO has developed an
application link which is hosted on Bank website i.e. www.denabank.com. Using the
link customer can apply for Internet Banking, Mobile Banking or both facilities.
To complete registration, customer needs to input his account details viz. Customer-ID,
Current / Savings Bank Account No, Registered Mobile No, Date-of-birth, Registered
email-id, Registered ID-Proof (PAN / Adhaar No), Facility Type (Internet Banking /
Mobile Banking / Both). On filling the account details, customer will get
acknowledgement regarding receipt of registration request.
Customer registrations are processed centrally within a time span for T+2 days at Data
Centre.
On completion of processing of registration requests, customer gets confirmation
about activation of the facility through SMS.
To use Internet Banking facility, customer can set his own Sign on and Transaction
Passwords using Debit card details in the Internet Banking Application link (First
Time Login).
In case the customer does not have Debit card, he needs to visit the branch. Branch
officials shall generate & print the Sign-on and Transaction Passwords and deliver it to
customer after obtaining acknowledgement.
MOBILE BANKING
Dena Bank's offers Dena MConnect the convenient and secure way to conduct banking
transaction in your account using your mobile handset. A new revamped mobile
banking application is now available on smartphone versions i.e. Android, Windows and
iOS. The new mobile banking application is Simple, Attractive and User friendly. We are
confident that everyone would find the application is easy to use. New Mobile App can
be downloaded from application stores (Google Play (Android), AppStore (iOS) & Store
(Windows)).
1. Balance Inquiry
2. Mini Statement
3. Fixed Deposit account inquiry
4. Fund transfer
a. Self-linked accounts
b. Third party fund transfer
c. IMPS through MMID (instant 24 X 7 fund transfer)
d. IMPS through Account number and IFSC Code (instant 24 X 7 fund transfer)
5. Beneficiary addition, deletion and inquiry.
6. Locate ATM and Branches
7. Change password and MPIN
8. Generate, retrieve and cancel MMID
9. Utility Bill payment, mobile/DTH recharge facility will be provided shortly.
In the case of Mobile Banking, the MPIN will be generated from Project Office and
despatched to the base branch. The customer will have to collect the same from the
branch.
Registration facility through Bank web site improves convenience and there is no
requirement for the customer to visit the branch. However, for Mobile Banking
application, customer needs to visit branch for collecting the MPIN.
BHIM: Bharat Interface for Money (BHIM) is an app that lets you make simple, easy and
quick payment transactions using Unified Payments Interface (UPI). You can make instant
bank-to-bank payments and Pay and collect money using just Mobile number or Virtual
Payment Address (VPA) *99# : *99# (BHIM without Internet), is an interoperable
infrastructure, comprising banks & telecom operators, using USSD technology to provide
banking services through a common platform. USSD technology, till now was used primarily
in the field of telecommunication, a user can access banking services by just pressing *99#
from his/her mobile phones. This service works across all GSM mobile handsets
UPI Features:
• Account Management – you can add your multiple bank accounts in a single app
• Beneficiary management – manage beneficiary using Aadhaar, VPA, MMID and IFSC &
Account No.
• Pay and Collect request
• Balance Inquiry
• Instant fund transfer
• Incident/Dispute can be raised in the App
• Instant UPIN generation/reset and account activation
• Pending Approval for collect request
• Works on single click 2 factor authentication
Transaction Limitations:
• The maximum limit per bank/Mobile is Rs. 1.0 Lakh per day.
• Maximum no of transactions allowed in a day are 20.
Benefits of the UPI:
UPI is built on top of the IMPS, immediate, 24x7, through the year, unlike NEFT or RTGS
UPI allows you to pay/receive directly from/to your Bank Account without revealing your
Account details& IFSC.
UPI can also be used for online shopping; recharges- enter your UPI VPA and get an alert on
your mobile device to authenticate the transaction using UPIN.
To provide seamless mobile digital payments facility to customers, Bank has made
operational “Dena Bank One Click Payment facility” in association with Reliance
JioMoney.
Customers will have ease of making digital payments like bill pay, IRCTC Railway
Ticket booking, DTH & Mobile recharge, Merchant Payments while shopping directly
from their Dena Bank Operative Accounts.
Making direct payments from Jio-Money Wallet account is first of its kind using
secure token authentication between the Bank and the JioMoney platform, ensuring
the highest level of security and safety of customer account details.
The users are not required to load the JioMoney wallet and therefore the specified
monthly limit of INR 20,000 for pre-paid wallets is not applicable.
Salient features:
How it works:
Download the JioMoney Wallet App from GooglePay Store (Android) to set user
profile, password and MPIN for using JioMoney App.
After installation of the JioMoney app, customer can link his Dena Bank account
through Debit Card validation. Once registration process completes, customer will be
able to make the payments/purchases directly from his Dena Bank Account.
ELIGIBILITY:
• The merchant should have a current account with a branch of the bank
with a satisfactory account operation.
• The merchant should be in retail/over the counter trade and shall not
be in the Visa/MasterCard negative list for malpractices.
• The merchant shall have a fixed landline connection for PSTN based
Terminal otherwise they will have to apply for GPRS based machine
landline connection)
The Dena Bank Gift Card comes packed with a host of features:
Freedom of choice - A prepaid, non-reloadable card with three year validity which is
widely accepted across merchant outlets and online portals for shopping, dining,
online transactions at over 10 lakh stores and/or websites across India accepting
Visa cards
Flexible Amount - Flexibility of loading any amount ranging from Rs. 500 to Rs.
50,000 as per your requirement
Ideal Choice for Corporate Gifting – Reward& Recognition for your employees,
incentive for clients etc as per your requirements to strengthen your relationship
i. Agriculture
ii. Micro, Small and Medium Enterprises
iv. Education
v. Housing
viii. Others
The details of eligible activities under the above categories are specified
in Chapter III.
III.
(i) The targets and sub-targets set under priority sector lending for all scheduled
commercial banks operating in India are furnished below:
## Additionally, domestic banks are directed to ensure that the overall lending
to non-corporate farmers does not fall below the system-wide average of the
last three years achievement. All efforts should be maintained to reach the
level of 13.5 percent direct lending to the beneficiaries who earlier constituted
the direct agriculture sector. The applicable system wide average figure for
computing achievement under priority sector lending will be notified every
year. For FY 20162016-17
-17, the applicable system wide average figure is
11.70
11.70 percent.
2015-16 32
2016-17 34
2017-18 36
2018-19 38
2019-20 40
The additional priority sector lending target of 2 percent of ANBC each year
from 2016-17 to 2019-20 has to be achieved by lending to sectors other than
exports. The sub targets for these banks, if to be made applicable post 2020,
would be decided in due course.
The outstanding deposits under RIDF and other funds with NABARD, NHB,
SIDBI and MUDRA Ltd. in lieu of non-achievement of priority sector lending
targets/sub-targets will form part of ANBC. Advances extended in India against
the incremental FCNR (B)/NRE deposits, qualifying for exemption from
CRR/SLR requirements
ANBC III+IV-V-VI
It has been observed that some banks are subtracting prudential write off at
Corporate/Head Office level while reporting Bank Credit as above. In such
cases it must be ensured that bank credit to priority sector and all other sub-
sectors so written off should also be subtracted category -wise from priority
sector and sub-target achievement.
All types of loans, investments or any other items which are treated as eligible
for classification under priority sector target/sub-target achievement should
also form part of Adjusted Net Bank Credit.
CHAPTER - III
3. Agriculture
The lending to agriculture sector has been defined to include (i) Farm Credit (which
will include short-term crop loans and medium/long-term credit to farmers) (ii)
Agriculture Infrastructure and (iii) Ancillary Activities. A list of eligible activities under
the three sub-categories is indicated below:
Loans to Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e.
groups of individual Small and Marginal farmers directly engaged in
Agriculture and Allied Activities, provided banks maintain disaggregated data
of such loans.
4.1. Limits for investment in plant and machinery/ equipment: The limits for
investment in plant and machinery/equipment for manufacturing / service enterprise,
as notified by Ministry of Micro, Small and Medium Enterprises, vide S.O.1642(E)
dated September 9, 2006 are as under:-
Manufacturing Sector
Medium Enterprises More than five crore rupees but does not
Service Sector
Bank loans to Micro, Small and Medium Enterprises, for both manufacturing
and service sectors are eligible to be classified under the priority sector as per
the following norms:
Bank loans up to ₹ 5 crore per unit to Micro and Small Enterprises and ₹ 10
crore to Medium Enterprises engaged in providing or rendering of services
and defined in terms of investment in equipment under MSMED Act, 2006.
(i) Factoring transactions on ‘with recourse’ basis by banks which carry out
the business of factoring departmentally, wherever the ‘assignor’ is a Micro,
Small or Medium Enterprise, subject to the corresponding limits for
investment in plant and machinery/ equipment and other extant guidelines for
priority sector classification. Such outstanding factoring portfolios may be
classified by banks under MSME category on the reporting dates.
All loans to units in the KVI sector will be eligible for classification under the
sub-target of 7.5 percent prescribed for Micro Enterprises under priority
sector.
(i) Loans to entities involved in assisting the decentralised sector in the supply
of inputs to and marketing of outputs of 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 19 of these Master Directions.
(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) Overdrafts extended by banks after April 8, 2015 upto ₹5,000/- under
Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts provided the borrower’s
household annual income does not exceed ₹ 100,000/- for rural areas and ₹
1,60,000/- for non-rural areas. These overdrafts will qualify as achievement of
the target for lending to Micro Enterprises.
(vi) Outstanding deposits with SIDBI and MUDRA Ltd. on account of priority
sector shortfall.
4.7. 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.
5. Export Credit
The Export Credit extended as per the details below will be classified as priority
sector.
6. Education
7. Housing
other centres under priority sector or take benefit of exemption from ANBC,
but not both.
7.3 Bank loans to any governmental agency for construction of dwelling units
or for slum clearance and rehabilitation of slum dwellers subject to a ceiling of
₹ 10 lakh per dwelling unit.
₹10
7.4 The loans sanctioned by banks for housing projects exclusively for the
purpose of construction of houses for economically weaker sections and low
income groups, the total cost of which does not exceed ₹10 lakh per dwelling
unit. For the purpose of identifying the economically weaker sections and low
income groups, the family income limit of ₹2 lakh per annum, irrespective of
the location, is prescribed.
7.5 Bank loans to Housing Finance Companies (HFCs), approved by NHB for
their refinance, for on-lending for the purpose of
purchase/construction/reconstruction of individual dwelling units or for slum
clearance and rehabilitation of slum dwellers, subject to an aggregate loan
limit of ₹10 lakh per borrower.
The eligibility under priority sector loans to HFCs is restricted to five percent
of the individual bank’s total priority sector lending, on an ongoing basis. The
maturity of bank loans should be co-terminus with average maturity of loans
extended by HFCs. Banks should maintain necessary borrower-wise details of
the underlying portfolio.
8. Social infrastructure
8.1. Bank loans up to a limit of ₹5 crore per borrower for building social
infrastructure for activities namely schools, health care facilities, drinking
water facilities and sanitation facilities including construction/ refurbishment
of household toilets and household level water improvements in Tier II to Tier
VI centres.
8.2. Bank credit to Micro Finance Institutions (MFIs) extended for on-lending to
individuals and also to members of SHGs/JLGs for water and sanitation
facilities will be eligible for categorization as priority sector under ‘Social
Infrastructure’, subject to the criteria laid down in paragraph 19 of these
Master Directions.
9. Renewable Energy
Bank loans up to a limit of ₹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 ₹10 lakh per borrower.
10. Others
10.1. Loans not exceeding ₹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 ₹1,00,000/- and for
non-rural areas it does not exceed ₹1,60,000/-.
Priority sector loans to the following borrowers will be considered under Weaker
Sections category:-
No. Category
(viii) Distressed persons other than farmers, with loan amount not
exceeding ₹1 lakh per borrower to prepay their debt to non-
institutional lenders
CHAPTER IV
MISCELLANEOUS
(a) the securitised assets are originated by banks and financial institutions and
are eligible to be classified as priority sector advances prior to securitisation
and fulfil the Reserve Bank of India guidelines on securitisation.
(b) the all inclusive interest charged to the ultimate borrower by the originating
entity should not exceed the Base Rate of the investing bank plus 8 percent
per annum.
(a) the assets are originated by banks and financial institutions which are
eligible to be classified as priority sector advances prior to the purchase and
fulfil the Reserve Bank of India guidelines on outright purchase/assignment.
(b) the eligible loan assets so purchased should not be disposed of other than
by way of repayment.
(c) the all inclusive interest charged to the ultimate borrower by the originating
entity should not exceed the Base Rate of the purchasing bank plus 8 percent
per annum.
(ii) When the banks undertake outright purchase of loan assets from banks/
financial institutions to be classified under priority sector, they must report the
nominal amount actually disbursed to end priority sector borrowers and not
the premium embedded amount paid to the sellers.
With regard to the underlying assets of the IBPC transactions being eligible for
categorization under ‘Export Credit’ as per Para 8, the IBPC bought by banks,
on a risk sharing basis, may be classified from purchasing bank’s perspective
for priority sector categorization. However, in such a scenario, the issuing
bank shall certify that the underlying asset is ‘Export Credit’, in addition to the
due diligence required to be undertaken by the issuing and the purchasing
bank as per the guidelines in this regard.
(a) Bank credit to MFIs extended for on-lending to individuals and also to
members of SHGs / JLGs will be eligible for categorisation as priority sector
advance under respective categories viz., Agriculture, Micro, Small and
Medium Enterprises, Social Infrastructure [mentioned in paragraph 11(11.2)]
and Others, provided not less than 85 percent of total assets of MFI (other than
cash, balances with banks and financial institutions, government securities
and money market instruments) are in the nature of “qualifying assets”. In
addition, aggregate amount of loan, extended for income generating activity,
should be not less than 50 percent of the total loans given by MFIs.
(b) A “qualifying asset” shall mean a loan disbursed by MFI, which satisfies the
following criteria:
(ii) Loan does not exceed ₹60,000/- in the first cycle and ₹100,000/- in the
subsequent cycles.
(iv) Tenure of loan is not less than 24 months when loan amount
exceeds ₹ 30,000/- with right to borrower of prepayment without penalty.
₹30,000/-
(c) Further, the banks have to ensure that MFIs comply with the following caps
on margin and interest rate as also other ‘pricing guidelines’, to be eligible to
classify these loans as priority sector loans.
(i) Margin cap: The margin cap should not exceed 10 percent for MFIs having
loan portfolio exceeding ₹100 crore and 12 percent for others. The interest
cost is to be calculated on average fortnightly balances of outstanding
borrowings and interest income is to be calculated on average fortnightly
balances of outstanding loan portfolio of qualifying assets.
(ii) Interest cap on individual loans: With effect from April 1, 2014, interest rate
on individual loans will be the average Base Rate of five largest commercial
banks by assets multiplied by 2.75 per annum or cost of funds plus margin
cap, whichever is less. The average of the Base Rate shall be advised by
Reserve Bank of India.
(iii) Only three components are to be included in pricing of loans viz., (a) a
processing fee not exceeding 1 percent of the gross loan amount, (b) the
interest charge and (c) the insurance premium.
(iv) The processing fee is not to be included in the margin cap or the interest
cap.
(v) Only the actual cost of insurance i.e. actual cost of group insurance for life,
health and livestock for borrower and spouse can be recovered; administrative
charges may be recovered as per IRDA guidelines.
(d) The banks should obtain from MFI, at the end of each quarter, a Chartered
Accountant’s Certificate stating, inter-alia, that the criteria on (i) qualifying
assets, (ii) the aggregate amount of loan, extended for income generation
activity, and (iii) pricing guidelines are followed.
Development Fund (RIDF) established with NABARD and other Funds with
NABARD/NHB/SIDBI/ MUDRA Ltd. , as decided by the Reserve Bank from time
to time. The achievement will be arrived at the end of financial year based on
the average of priority sector target /sub-target achievement as at the end of
each quarter.
Banks should comply with the following common guidelines for all categories
of advances under the priority sector.
The rates of interest on bank loans will be as per directives issued by our
Department of Banking Regulation from time to time.
Priority Sector Lending –Targets and Classification- Bank loans to MFIs for on-
lending - Qualifying asset - Revised loan limit
2. “Tenure of loan is not less than 24 months when loan amount exceeds ₹
30,000/- with right to borrower of prepayment without penalty.”
No Dues Certificate
No Dues Certificate from the individual borrowers (including SHGs & JLGs) in Rural & Semi-
Urban Areas for all type of loans including Government Sponsored Schemes, irrespective of
the amount involved unless the Government Sponsored Scheme itself provides for obtention
of No Dues Certificate is to be dispensed with. Service Area Approach will continue to be
applicable for Government sponsored schemes
MARGIN NORMS FOR AGRICULTURE
(a) Margin norms for agricultural loans :
Particulars Norms
(i) Crop loans
Crop loans pto Rs 100000/- No margin
Crop loans above Rs. one lakh 15-25% depending upon the purpose & quantum of loan
(ii) Term loans
Term loans upto Rs 100000/- No margin
Term loans above Rs. one lakh 15-25% depending upon the purpose & quantum of loan
N.B : In case of agril. loans extended under Govt.sponosred programmes viz., SGSY, SJSRY
etc., existing norms applicable to respective schemes will continue till further instructions.
The amount of subsidy available in such cases will be taken to Subsidy Reserve Fund Account
guarantee
Investment Upto Rs. 100,000/- : Hyp. of assets
Credit Where
moveable Over Rs.100,000/- i) Hyp. of assets & ii) Mortgage of land* / charge over
assets are land or third party guarantee
created :
*Mortgage of land at bank's discretion. Where there are genuine difficulties in the creation
of mortgage / charge on lands wherever required, banks could take third party guarantee or
such other security as considered appropriate.
xix. Rajiv Rinn Yojana (RRY)- Interest Subsidy Scheme for housing for Economically
Weaker Section (EWS) and Lower Income Group (LIG)
xx. Dairy Plus Scheme for financing village level milk cooperative societies
xxi. Tie up arrangement with Finolex Plasson Industries Pvt.Ltd for financing Micro
Irrigation Systems & other equipment
xxii. Tie up arrangement with M/S Jain Irrigation System for financing farm
implements
xxiii. Dairy Entrepreneurship Development Scheme (DEDS)
xxiv. Revised Dena General Credit Card Scheme
Govt.sponsored Programmes
Funding Pattern: NRLM is a Centrally Sponsored Scheme and the financing of the
programme would be shared between the Centre and the States in the ratio of 75:25 (90:10
in case of North Eastern States including Sikkim; completely from the Centre in case of UTs).
The Central allocation earmarked for the States would broadly be distributed in relation to
the incidence of poverty in the States.Key
States.Key difference from SGSY:
2.1 NRLM is promoting a major shift from purely ‘allocation based’ strategy to a ‘demand
driven’ strategy wherein states have the flexibility to develop their own plans for capacity
building of women SHGs and Federations, infrastructure and marketing, and policy for
financial assistance for the SHGs.
2.2 NRLM will identify the target group of poor through a ‘participatory identification of the
poor’ process instead of using the BPL list as was done in SGSY. This will ensure that the
voiceless, poorest of poor are not ignored. In fact under NRLM, the first preference is given
to the poorest of poor households.
2.3 NRLM will promote the formation of women SHGs on the basis of affinity and not on the
basis of a common activity, as it used to be under SGSY. It is definitely possible that members
who come together on the basis of affinity could be having a common activity.
2.4 Unlike SGSY, the NRLM has taken a saturation approach and will ensure all the poor in a
village are covered and a woman from each poor family is motivated to join the SHG.
2.6 NRLM will provide continuous hand-holding support to SHGs, and their federations. This
was missing in SGSY. Under NRLM this support will be provided to a great extent by
capacitating the SHG federations and by building a cadre of community professionals from
among the poor women. The federations and the community professionals will be imparted
the necessary skills by the mission.
2.7 The objective of NRLM is to ensure that SHG s are enabled to access repeat finance from
Banks, till they attain sustainable livelihoods and decent living standards. This was missing in
SGSY, where the emphasis was on one time support.
3.1 Women SHGs under NRLM consist of 10-15 persons. In case of special SHGs i.e. groups
in the difficult areas, groups with disabled persons, and groups formed in remote tribal
areas, this number may be a minimum of 5 persons.
3.2 NRLM will promote affinity based women Self –help groups.
3.3 Only for groups to be formed with Persons with disabilities, and other special categories
like elders, transgenders, NRLM will have both men and women in the self-help groups.
3.4 SHG is an informal group and registration under any Societies Act, State cooperative Act
or a partnership firm is not mandatory vide Circular RPCD. No. Plan BC.13/PL-09.22/90-
91 dated July 24th, 1991.
1991. However Federations of SHGs formed at village level, cluster level,
and at higher levels are to be registered under appropriate acts prevailing in their States.
4 Revolving Fund (RF): NRLM would provide a Revolving Fund (RF) support to SHGs in
existence for a minimum period of 3/6 months and follow the norms of good SHGs, i.e they
follow ‘Panchasutra’ – regular meetings, regular savings, regular internal lending, regular
recoveries and maintenance of proper books of accounts. Only such SHGs that have not
received any RF earlier will be provided with RF, as corpus, with a minimum of Rs. 10,000
and up to a maximum of Rs. 15,000 per SHG. The purpose of RF is to strengthen their
institutional and financial management capacity and build a good credit history within the
group.
5. Capital Subsidy has been discontinued under NRLM:No Capital Subsidy will be sanctioned
to any SHG from the date of implementation of NRLM.
6. Community Investment support Fund (CIF) : CIF will be provided to the SHGs in the
intensive blocks, routed through the Village level/ Cluster level Federations, to be
maintained in perpetuity by the Federations. The CIF will be used, by the Federations, to
advance loans to the SHGs and/or to undertake the common/collective socio-economic
activities.
i. In 150 identified districts, banks will lend to all the women SHGs @7% upto an
aggregated loan amount of Rs 3,00,000/- . The SHGs will also get additional interest
subvention of 3% on prompt payment, reducing the effective rate of interest to 4%.
ii. In the remaining districts also, NRLM compliant women SHGs will be registered with
SRLMs. These SHGs are eligible for interest subvention to the extent of difference
between the lending rates and 7% for the loan upto Rs. 3 lakhs, subjected to the
norms prescribed by the respective SRLMs. This part of the scheme will be
operationalized by SRLMs.
8. Role of banks –
8.1 Opening of Savings accounts: The role of banks would commence with opening of
accounts for all the Women SHGs, SHGs with members of Disability and the Federations of
the SHGs. The ‘Know Your Customer’ (KYC) norms as specified from time to time by Reserve
Bank of India are applicable for identification of the customers.
Loan amount: Emphasis is laid on the multiple doses of assistance under NRLM. This would
mean assisting an SHG over a period of time, through repeat doses of credit, to enable them
to access higher amounts of credit for taking up sustainable livelihoods and improve on the
quality of life. The amount of various doses of credit should be as follows:
First dose: 4-8 times to the proposed corpus during the year or Rs. 50, 000 whichever
is higher.
Second dose: 5-10 times of existing corpus and proposed saving during the next
twelve months or Rs. 1 lakhs, whichever is higher.
Third dose: Minimum of Rs. 2 lakhs, based on the Micro credit plan prepared by the
SHGs and appraised by the Federations/Support agency and the previous credit
history
Fourth dose onwards: Loan amount can be between Rs. 5-10 lakhs for fourth dose
and/or higher in subsequent doses. The loan amount will be based on the Micro
Credit Plans of the SHGs and their members.
The loans may be used for meeting social needs, high cost debt swapping and taking up
sustainable livelihoods by the individual members within the SHGs or to finance any viable
common activity started by the SHGs.(Corpus is inclusive of revolving funds, if any, received
by that SHG, its own savings and funds from other sources in case of promotion by other
institutes/NGOs.)
8.3.1 SHGs can avail either Term loan or a CCL loan or both based on the need. In case of
need, additional loan can be sanctioned even though the previous loan is outstanding.
Third dose will be sanctioned based on the micro credit plans, the repayment has to
be either monthly/quarterly /half yearly based on the cash flow and it has to be
between 2 to 5 Years.
8.4. Security and Margin:No collateral and no margin will be charged upto Rs. 10.00 lakhs
limit to the SHGs. No lien should be marked against savings bank account of SHGs and no
deposits should be insisted while sanctioning loans.
8.5. Dealing with Defaulters:8.5.1 It is desirable that wilful defaulters should not be financed
under NRLM. In case wilful defaulters are members of a group, they might be allowed to
benefit from the thrift and credit activities of the group including the corpus built up with
the assistance of Revolving Fund. But at the stage of assistance for economic activities, the
wilful defaulters should not have the benefit of further assistance until the outstanding loans
are repaid. Wilful defaulters of the group should not get benefits under the NRLM Scheme
and the group may be financed excluding such defaulters while documenting the loan.
8.5.2 Further, non-wilful defaulters should not be debarred from receiving the loan. In case
of defaulters due to genuine reasons, Banks may follow the norms suggested for
restructuring the account with revised repayment schedule.
Project Cost (PC): The Maximum unit Project Cost for a group enterprise is Rs 10,00,000 (Rs
Ten Lakhs)
Loan: Project Cost less the beneficiary contribution (as specified by bank) would be made
available as loan amount to the group enterprise by the bank.
The beneficiaries desirous of seeking financial assistance for setting up an enterprise can
submit an application of intent to the concerned ULB officials on a plain paper with basic
details viz: Name, Age, Contact details, Address, Aadhaar details (if any), amount of loan
required, bank account number (if available), type of enterprise/ activity, category etc.
The intent could also be sent by mail /post to the ULB office. The ULB shall accept such
intents throughout the year. The ULB will issue an acknowledgement to the beneficiary with
a unique registration number, which may be used as a reference number for tracking the
status of application.
Banks may also identify beneficiaries as per the eligibility criterion and receive the intent
letter. The applications received directly by the banks will be referred to the ULB. The
applications in this case will also form a part of the waiting list.
An additional 3 percent interest subvention will be provided to all Women SHGs (WSHGs)
who repay their loan in time.
The Chief Executive Officer (CEO)/ Municipal Commissioner of ULB will constitute the Task
Force and will be The Chairman of the Task force.
The identified manual scavengers, one from each family, would be eligible for receiving Cash
Assistance of Rs. 40,000 immediately after identification. The beneficiary would be allowed
to withdraw the amount in monthly installments of maximum of Rs. 7,000. He/she would
also be eligible for Capital Subsidy, Interest Subsidy and Training with stipend at the rates
prescribed under the scheme. The dependents of manual scavengers would not be eligible
for initial Cash Assistance.
Loan upto a maximum cost of Rs. 10 lakhs will be admissible under the scheme, and Rs. 15
lakh in case of sanitation related projects like Vaccum Loader, Suction Machine with Vehicle,
Garbage Disposal Vehicle, Pay & Use Toilets etc., which are extremely relevant for the target
group, with high success rate and income.
The moratorium period to start the repayment of loan will be two years. The period of
repayment of loan, including moratorium period will be five years for projects upto Rs.
5,00,000 and 7 years for projects above Rs. 5,00,000. The SCAs would distribute the funds
within a period of three months after receiving the application from the eligible
beneficiaries.
The rate of interest chargeable from the beneficiaries will be as follows:-
(a) For projects upto Rs. 25,000/- - 5% per annum (4% per annum for women beneficiaries)
Retail banking Scenario: Due to change in economic scenario the focus of lending is
increasingly getting shifted from Industrial and commercial advancers to a diversified
portfolio of advance to retail, MSME & Agriculture. Retail Banking is one of the principal
growth engines for the banks in India and retail advances have been widely as the
driver of the Credit acceleration.
Banks today are concentrating on retail lending due to mainly due to the following
advantages:
Before giving loan to any individual the first and foremost is to check out PAN details,
KYC norms, CIBIL for credit reports, Genuineness of Salary and other relevant issues of
papers like ITR, Pre-Sanction visit report, on confirming of sanctioning of loan Credit
Rating, Charging of all service charges with Service tax as applicable as per HO Circulars,
documentation with proper stamping, Execution of Documents, sanction letter duly
signed by borrower, proper execution of Documents , registration of charge on assets
created out of Bank finance with appropriate authorities as per Terms & Conditions of
sanction, Compliance of Terms and condition of sanction, Disbursement made
Invariably through RTGS / NEFT, On disbursement details of all loan be entered in
CIBIL, CERSAI for Housing, Registration / Mortgage at sub-registrar office on immovable
properties, Vehicle with RTO along with blank form 29 & form 30 to be signed by
borrower, In RC book the name of bank to appear, Insurance cover to be taken from
United India Insurance Company Limited, Post Sanction for end use of funds financed,
Monitoring of accounts, these are general guidelines /procedures to be followed while
sanctioning the proposals.
Purpose of Loan
To meet genuine credit requirements for personal purpose like Marriage, Medical
Expenses, Family function, Festivals Educational expenses, Unforeseen Expenses etc.
Eligibility for Loan- For Whom?
Permanent employees having completed 2 years of service in Central/ State
Govt./ PSU/ reputed Public Limited companies/ MNCs/ reputed Educational
Institutions (Govt. recognised / aided schools/ Colleges / Universities/ Research
Institutes).
Age – 24 years to 55 years.
Minimum Gross Monthly Income –Rs.15000/-
Minimum Take Home: 40% of Gross
Minimum Loan amount– Rs.15000/-
Purpose of Loan: Demand loan to meet any genuine credit requirement for personal
expense.
Pensioners of State/ Central Govt./ PSUs/ our own ex-staff members/ VRS optees
whose pension accounts are being maintained with the branch.
Age – Loan repayment must be before the applicant attains the age of 75 years.
Minimum Take Home Pension should not be less than 60% of monthly pension.
Loan Recovery Period and Loan Limit:
Category of
Age Loan limit
Borrower
Age of the pensioner on loan maturity not 12 months pension or Rs 3.00 lacs
Borrower is a pensioner exceeding 73 years whichever is lower.
and nominee for pension
eligible for family pension Age of the pensioner on loan maturity is 6 months pension or Rs 1.50 lacs
is alive. not exceeding 80 years whichever is lower.
Borrower is a pensioner
and nominee for Age of the pensioner on loan maturity is
6 months pension or Rs 1.50 lacs
pension eligible for beyond 73 years but not exceeding 80
whichever is lower.
family pension is not years
alive.
Age of the pensioner on loan maturity not 6 months pension or Rs 1.50 lacs
Family Pensioner Only
exceeding 73 years whichever is lower.
Maximum - Rs.1,50,000/-
Margin – Nil
Upfront fee– nil
Security – Nil
Repayment – 36 EMIs
Purpose of Loan
For financing new Two-wheelers.
For financing new and old Cars.
Eligible Income:
Loan Amount:
•Upto Rs. 50 lakhs for purchase of a new two wheeler.
•Upto Rs. 200 lakhs for purchase of a new car.
Margin:
For New Vehicles : 15 % .
In case of Corporate Salary Arrangement, 10% of on road price for new car.
In case of Old Car 20% (up to 3 year old).
Cost Price = Base Price of Vehicle + RTO + Ins.
Security:
1. Hypothecation of Vehicle purchased. 2. Hypothecation charge in RC Book.
Loan Repayment Period:
Maximum up to 84 months for new vehicle.
2nd hand four-wheeler (up to 3 year old)- Maximum up to 36 months.
Purpose of Loan
For purchase of TV, Fridge, Washing Machine, PCs, Furniture, Music System,
Cooking Range etc.
Also, for purchase of Health and Gym related products and all other consumer
products which are not specifically mentioned here.
Minimum Gross Annual Income :Rs.75000/-
Minimum Take Home: 60% of Gross Income
Limit of Loan:
Gross Income between Rs.75000/- to Rs.150000/- :- Rs.50000/-
Gross Income above Rs.150000/- :- Rs.100000/-
Margin : 20% of Cost Price.
Upfront / Processing Fees
For loan up to Rs.25,000/- = Rs.250/-
For loan more than Rs.25,000/- = Rs.500/-
Security
Hypothecation of goods purchased out of Bank’s Loan.
Loan Repayment Period : Up to 3 years (36 EMI s)
5. DENA NIWAS
Purpose of Loan
3. Purchase of old house up to 50 years old, provided the remaining life of the house /
building is more than repayment period of the loan as per certificate of panel valuer /
architect.
4. Furnishing / Interiors.
5. Repairs/ renovation & Upgradation including furniture & fixture, cost of POP work,
retiling, fittings, etc. provided the age of the house/building should not be more than 40
years and the remaining life of the building (even after repairs/ renovation) should be at
least 25 years as per certificate of panel valuer / architect.
6. Purchase of plot, subject to the condition that:
Construction of house should be completed within 18 months from date of first
disbursement, and
A maximum of 75% of the loan amount can be utilized for purchase of plot.
If the borrower fails to construct house within stipulated period, interest @ one
year MCLR +8.30% to be charged considering it as a commercial loan from the
date of first disbursement.
7. Cost of Rooftop Solar PV can be considered for financing along with housing loan for
construction of house, purchase of house / flat or repairs / renovation & Upgradation.
(HO circular No. 325/07/2014 dated 11.12.2014).
Treatment of Subsidy received for installation of Solar Water Heating Unit if any:
NABARD gives subsidy for installation of solar water heating system. The Subsidy
amount received from NABARD is to be kept in subsidy reserve account during
lock in period. After lock in period the subsidy amount is to be credited to
Housing Loan Account. Interest during lock in period is to be charged on net of
subsidy loan amount.
Eligibility:
Any major individual, including NRI, having regular source of income is eligible.
Income of spouse and children may be considered for repayment capacity
provided they are taken as co-borrowers, though they may not be co-owner.
In case of farmers, the age of the applicant on loan maturity should be up to 70
years.
In case housing loan is assessed considering pension of the applicant, family
member eligible for family pension / legal heirs to be made co-borrower/s.
If, at the time of sanctioning loan, apparently it is known that the borrower is
suffering from any major ailment, his legal heirs shall be made co-borrowers /
guarantors. To comply this condition, a medical checkup report not older than 3 months
should be kept on record. In such cases, the borrower should be insisted for obtaining
insurance policy under Dena Gruh Swami Insurance policy / Dena UNI home care policy.
The maximum loan amount should not normally exceed Rs 10 lacs. Such loans
exceeding the above ceiling amount will require prior administrative clearance
from the ZO-CAC.
Maximum loan amount will be lowest of loan amount assessed on the basis of following
or ceiling as mentioned above:
Permissible EMI/ NMI ratio
Maximum permissible LTV ratio
Loan amount applied for
Margin:
Purpose of Loan
To provide financial support to deserving/meritorious students for pursuing
higher education in India and Abroad.
No deserving student should be denied an opportunity to pursue higher
education for want of financial support.
Study Abroad:
Graduation : For job oriented professional / technical courses offered by
reputed universities
Post Graduation : MCA, MBA, MS etc.
Courses conducted by CIMA-London, CPA in USA etc.
Limit of Loan:
A)For students admitted to full time courses conducted by IIT / IIM /ISB only: Full
course fee without any upper loan ceiling and without co-borrower, subject to margin
may be financed.
For Students admitted to Full time courses conducted by “A” rated Institutions
and Bank’s approved Educational Institutions:
Need based finance to meet the expenses to be worked out taking in to account margins
stipulated subject to the following ceilings:
Studies in India Maximum up to Rs 15 lakhs
Studies Abroad Maximum up to Rs 25 lakhs
B) For Students admitted to Full time courses conducted by other institutions (Other
than IIT / IIM / ISB / “A” rated Institutions and Bank’s approved Educational
Institutions) :
Need based finance to meet the expenses to be worked out taking in to account
margins stipulated subject to the following ceilings:
Studies in India Maximum up to Rs 10 lakhs
Studies Abroad Maximum up to Rs 20 lakhs
Margin:
Upto Rs.4 lac : NIL
Above Rs.4 lac:
In India - 5%
Abroad -15%
Repayment Schedule:
10 years for loans upto Rs. 7.5 lakhs
15 years for loans above Rs. 7.5 lakhs
Collateral Security
For studies in India -
Upto Rs.7.5 Lacs Parents to be joint borrower (s).
All loans up to Rs.7.50 lacs are covered under Credit
Guarantee Scheme managed and operated by National Credit
Guarantee Trust Company Ltd (NCGTC).
> Rs. 7.5 Lacs Parents to be joint borrower(s). Tangible collateral security
of suitable value acceptable to bank, along with the
assignment of future income of the student for payment of
instalments. Security need not necessarily be belonging to
the joint borrower. However, the loan should be guaranteed
by the person in whose name such security exists.
7. DENA RENT:
General purpose loan upto Rs 500 Lacs for all categories of individuals against security
of immovable property.( Term Loan and Overdraft)
Limit of Loan:
Minimum : Rs.2.00 lac.
Maximum : Rs.500.00 lac.
Sanction limit : 50% GMI for all.
MPBF = 50% GMI
EMI Factor
Margin: 50% of realisable market value of the property.
Valuation Report should not be more than 3 months old.
Repayment Period:
Security: Equitable Mortgage of property against which Mortgage facility has been
extended.
Cash credit facility upto Rs 500 lacs for commodity traders , dealers, stockists against
stock and book debts.
Limit of Loan
Minimum : Rs.2.50 lacs
Maximum : Rs.500.00 lacs
A specially designed loan facility for Medical Practioners to take their profession to next
level. The loan is available for :
1. Setting up clinic, expansion/ renovation/ modernisation of existing clinic, X-Ray
lab, pathological lab, etc
2. Purchasing medical equipments
3. Purchasing computer & other essential equipments for clinic
Minimum qualification :
MBBS/ BDS
Registered with respective Council
Over 25 Years of age at the time of disbursement
Not over 65 years at the time of loan maturity
Maximum loan : Rs.200.00 lac
Quantum of loan 1. The loan amount will be linked to the value of gold jewellery /
gold coin / gold (other than bullion) to be pledged.
2. Minimum Rs 10000/- & Maximum Rs 5.00 lacs
Maximum quantum of finance as Rs.1 crore stands revised as per
Circular No 16/01/2012-13 Dtd 12/04/2012.
Margin to be maintained @ 30% of the value of the Gold / jewellery / gold coin / gold
(other than bullion)
Repayment for loan Up to 24 months, to be repaid in EMIs or quarterly/ half-yearly/
annual installments or on lump sum basis, as may be agreed upon by the borrower/s.
Disbursement : The loan amount would be transferred to the S.B. Account of the
borrower and the borrower may be allowed to draw the loan amount by way of either
issuing cheques to the suplier or withdrawing money in cash.
Rate of Interest Upto Rs. 3 lacs : 12% (fixed)
Above Rs.3 lacs & upto Rs.5 lacs : BR+3.30%
Circular No 16/01/2012-13 Dtd 12/04/2012 introduced Overdraft facility under Dena
Gold Loan Scheme to individuals(other than farmers). Overdraft under the scheme may
be extended for any purpose other than speculative purposes.
Scheme Code under Finacle System is DLR27
Age: Minimum 21 Yrs at the time of Commencement of loan and 65 Yrs at the time of
Maturity of loan
Loan Limit: Rs. 2.00 Lacs to Rs. 100.00 lacs
Margin: 25%
Earlier: Indra
Awas yojna
Slum Affordable Affordable Subsidy for
Rehabilitation housing for Housing for beneficiary
with weaker weaker led
participation section in section Individual
of Slum partnership through house
developers with Public Credit Linked construction
Private subsidy
Sectors scheme
Eligibility EWS: EWS: EWS: EWS: As decided by
Economically Economically Economically Economically Panchayat
weaker weaker weaker weaker
section section section section
LIG, MIG If individual
apply as a
Group/
Society only
Maximum 1 lac 1.5 Lac Interest 1.5 lacs 1,20,000/-
support Subvention Others
per family 1,30,000/- NE
States, Hilly
States
Bank will get Rs. 3000/- as process fee for loan upto 6 lac.in case of EWS& LIG ( Govt. Will
pay to Bank,Not to be recovered from customer)
Bank will get Rs. 2000/- as process fee for loan upto 12 lac. In case of MIG-I & II( Govt. Will
pay to Bank,Not to be recovered from customer)
For Loan above 6 lacs , Bank may recover Process fee on amount >6 Lac from customer.
Smart City project must have 15% area earmarked for PMAY housing.
Discretionary List
Discretionary List shall comprise of following sector / activities in manufacturing:
1. Registered NBFCs
2. Chits/Chit Funds & Credit/Thrift Cooperative Societies
3. Film Industry
4. T V Serials
5. Entertainment & Amusement Parks
6. Jelly Filed Telecom Cables
7. Sugar Mills under co-operative sector
8. Share/Stock Brokers and Market Makers
(Gems & Jewellary sector is removed from Discretionary List. However, in view of current
scenario, discretionary power for sanctioning credit facilities to Gems & Jewellary sector will
be vested with FGMO-CAC & above.)
Exemption from Discretionary List Guidelines:
a) Proposal under Priority Sector is kept out of purview of discretionary list and respective
authority may consider credit proposal on merits.
b) If facility is secured by 100% liquid security viz. TDR, NSC, surrender value of LIP etc. In
such case, clearance from higher authority is not required.
Source : Loan Policy 2013-14 –page no.24-25
MSMED SECTOR
TEV Study for MSME Accounts : Techno Economic Viability to be conducted in case of SME
projects having Term loan limit of Rs.10 Crs. and above for new projects and Rs. 15 crs and
above for expansion / diversification from TEV agencies as per loan policy.
Issue of Acknowledgement of Loan Applications
Branches / Regional Offices to give manual acknowledgement immediately on receipt of
MSME loan applications till the system of online submission and central registration of loan
application is put in place. Each branch may affix a running serial number on the main
application form as well as the corresponding portion for acknowledgement. (refer Circular
No.383/11/2011-12 dated 21.02.2012)
Disposal of Applications : All loan applications from MSME for a credit limit or enhancement
in existing credit limit up to Rs. 5 lacs should be disposed of within 10 days and for credit
limit up to Rs.. 25 lacs within 15 days, for credit limit upto Rs. 100 lacs within 21 days & for
credit limits above Rs. 100 lacs within 30 days from the date of receipt provided the loan
application is complete in all respects and is accompanied by documents as per 'check list'
provided.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Eligible account:
(a) loan up to Rs.100 lac (RRBs up to Rs.50 lac),
(b) no collateral security or 3rd party guarantee
(c) Any Credit facility with ROI 4% above Base Rate not eligible for coverage.
Composite all-in Guarantee Fee as % of sanctioned credit facility:
Micro Enterprises:
Other loans:
Claim payment : On acceptance of claim 75% amount to be paid within 30 days (for
delay interest at bank rate to be paid) and balance on conclusion of recovery
proceedings or 3 years from date of decree, whichever is earlier.
Recovery after receipt of claim : After cost of recovery, amount to be shared pro-rata in
the ratio of claim payment. If sharing of recovery is delayed beyond 30 days, bank to pay
interest at bank rate + 4%
Minority Communities
The following communities have been notified as minority communities by the Government
ofIndia, Ministry of Welfare:
(a) Sikhs
(b) Muslims
(c) Christians
(d) Zoroastrians
(e) Buddhists
(f) Jains
Financial inclusion
Financial inclusion may be defined as the process of ensuring access to financial services and
timely and adequate credit where needed by vulnerable groups such as weaker sections and
low income groups at an affordable cost (The Committee on Financial Inclusion, Chairman:
Dr. C. Rangarajan).
1.2 Financial Inclusion, broadly defined, refers to universal access to a wide range of financial
services at a reasonable cost. These include not only banking products but also other
financial services such as insurance and equity products (The Committee on Financial Sector
Reforms, Chairman: Dr.Raghuram G. Rajan).
The essence of financial inclusion is to ensure delivery of financial services which include -
bank accounts for savings and transactional purposes, low cost credit for productive,
personal and other purposes, financial advisory services, insurance facilities (life and non-
life) etc.
Why Financial Inclusion ?
Financial inclusion broadens the resource base of the financial system by developing a
culture of savings among large segment of rural population and plays its own role in the
process of economic development. Further, by bringing low income groups within the
perimeter of formal banking sector; financial inclusion protects their financial wealth and
other resources in exigent circumstances. Financial inclusion also mitigates the exploitation
of vulnerable sections by the usurious money lenders by facilitating easy access to formal
credit.
Pradhan Mantri Jan Dhan Yojana
Pradhan Mantri Jan Dhan Yojana (Prime Minister Scheme for People's Wealth) is an
ambitious 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 September 2014,
3.02 crore accounts were opened, with around 1500 crore (US$250 million) 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 Rs1 lakh accident, they
will be given life insurance cover of Rs 30,000.
3. Six months of opening of the bank account, holders can avail Rs 5,000 loan 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
E PRODUCTS
Contents
E- PRODUCTS.................................................................................................................................................... 2
Dena Bak IT Products/Services/Facilities.................................................................................................... 2
PAYMENT AND SETTLEMENT SYSTEMS 3
Dena I-Connect( Internet Banking) 11
On line creation of Term Deposits : 11
Mobile Banking 12
Dena Alert Services : 13
App on mobile devices 14
Money Transfer Service Scheme 14
Dena ATM Services 15
What is “Verified By Visa”? 18
Demat Services-DENA LAXMI DEMAT 20
E PAYMENT OF TAXES 22
DENA e TRADE (On Line Trading in shares) 22
Application Supported by Blocked Amount (ASBA) 22
Prepaid Cards 24
Notice Board to Customers 25
ECS – Debit:
ECS Debit is a scheme under which an account
holder with a bank can authorize an ECS user to
recover an amount at a prescribed frequency by
raising a debit in his account. The ECS user has to
collect an authorization that is called ECS
mandate for raising such debits. These
mandates have to be endorsed by the bank
branch maintaining the account. Electronic, bulk
transfers (many to one transfer), value in T+3.
Dates to be fixed in advance for bulk debits. Only
after the cycle is complete, finality of the
settlement could be known.
TXN From To
MON – FRI
NEFT 07:00 hours 19:00 hours
SAT(1st & 3rd )
Dena Bank Debit cum ATM Card offers an easy and convenient way to do all
transactions within a fraction of seconds. Presently 1432 * ATMs all across India .*as of
Dec 2014.
Debit card. Card verification value (CVV2) enabled cards (printed on back side of
card) can be used for purchase of goods on internet including e-ticketing..
3.Dena Platinum Debit Card- RuPay
This card can be used on Dena Bank & member Bank’s ATMs and POS Terminals
in India. Dena Debit cum ATM card has name of the customer embossed on the
Debit card. Card verification value (CVV2) enabled cards (printed on back side of
card) can be used for purchase of goods on internet including e-ticketing.
Charges
Please click here to go to the Service charges section to view latest charges
applicable.
Eligibility criteria :
Activation offer
Offers at merchants: Café Coffee Day [Buy one get one cappuccino free]
Usage offers:
o Café coffee Day · 15% off on minimum billing of Rs. 300 & Above
· Lounge access- RuPay Platinum offers provides access to the participating lounge 2 times
per Calendar qtr. per Card in any of the 27 participating airport lounges. A nominal
transaction of Rs 2(non-refundable) per access will be charged to the card.
4.Dena RuPay KCC Debit cum ATM card for DKCC holder
This card can be used on Dena Bank & member Bank’s ATMs and can be used at
POS Terminals in India.. Card has name of the customer embossed on the Debit
card.
Up to Rs. Up to Rs.
Dena ATM Card 20,000/- per Not Applicable 1,00,000/- per
day day
Up to Rs. Up to Rs.
Up to Rs. 25000/-
Dena Insta Card 20,000/- per 1,00,000/- per
day per day day
Up to Rs. Up to Rs.
Dena Debit cum ATM Up to Rs. 25000/-
20,000/- per 1,00,000/- per
Card
day per day day
Up to Rs. Up to Rs.
Dena International Up to Rs. 1,50,000/-
50,000/- per 1,00,000/- per
Gold Debit Card
day per day day
Note: Multiple accounts can be linked at different branches of Dena Bank to a single
ATM / Insta / Debit cum ATM Card and Gold Card. The Account number of Debit cum
ATM Card issuing branches will be the Primary account number and account at other
Cards issuing branches link to the same card will be the Secondary account. Only
primary account will be linked for POS and VbV transactions.
Dena Bank has entered into a strategic tie up with WEIZMANN FOREX Ltd. agent of
Service is a boon to the NRIs & their families in India as well as visiting foreign tourist &
foreign students who are studying in India.
CBDT clarified that disclosing overseas bank accounts in Income Tax Return by NRIs- Not
Mandatory.
01 As per Financial Literacy Camps guidelines of RBI of July 2017, FLCs and rural branches
of banks
are eligible for funding support from the Financial Inclusion Fund for the financial literacy
camps to
the extent of 60% of the expenditure of the camp subject to a maximum of ____ per camp.
a Rs.5000 b Rs.10000 c Rs.15000 d Rs.20000
02 As per Financial Literacy Camps guidelines of RBI of July 2017,funding for handheld
projectors and speakers would be provided from FIF to the extent of 50% of the cost incurred
on purchase of hand held projector and portable speaker (both put together) subject to a
maximum of ____ per rural branch / FLC on a reimbursement basis.
a Rs.5000 b Rs.10000 c Rs.15000 d Rs.20000
03 For ascertaining the investment in plant and machinery for classification of an enterprises
as Micro, Small and Medium, which of the following documents could
be relied upon:
a A copy of the invoice of the purchase of plant and machinery
b Gross block for investment in plant and machinery as shown in the audited accounts
c A certificate issued by a Chartered Accountant regarding purchase price of plant and
machinery.
d any of the above
04 For the investment in plant and machinery for the purpose of classification of an enterprise
as Micro, Small or Medium, which of the following is to be taken into account
a book value (purchase value minus depreciation) or the purchase value of the plant and
machinery, whichever is higher
b book value (purchase value minus depreciation)
c the purchase value of the plant and machinery
d book value (purchase value minus depreciation) or the purchase value of the plant and
machinery, whichever is lower
05 The limits for investment by foreign portfolio investors (FPIs) in Central Government
Securities and State Development Loans (SDLs) has been increased from Rs.2580 billion to:
a Rs.2680 billion
b Rs.2751 billion
c Rs.2781 billion
d Rs.2865 billion
06 An unauthorized electronic bank transaction has taken place by a 3rd party in the saving
bank account of Mr. Z. After receipt of bank notification about the transaction, the customer
notifies the bank within 2 days. Who will bear the loss of this transaction?
a bank concerned
b customer concerned
c bank and customer in the ratio of 50:50
d bank up to Rs.25000 and beyond that customer
08 In cases where due to unauthorized electronic bank transaction, the loss is due to
negligence by a customer, such as sharing the payment credentials. Who will bear the
loss:
a bank will bear the entire loss until he reports the unauthorised transaction to the bank
b loss occurring after the reporting of the unauthorised transaction shall be borne by the
customer
c all loss will be born by the customer
d until report to bank, customer and loss occurring after reporting by customer, bank.
09 In cases where the responsibility for the unauthorised electronic banking transaction lies
neither with the bank nor with the customer, but lies elsewhere in the system and when there
is a delay of 4 to 7 working days after receiving the communication from the bank, on the
part of the customer in notifying the bank of such a transaction, the per transaction liability of
the customer shall be limited to Rs._____ in case of a saving bank account?
a Rs.5000 b Rs.10000 c Rs.25000 d no liability
10 In cases where the responsibility for the unauthorised electronic banking transaction lies
neither with the bank nor with the customer, but lies elsewhere in the system and when there
is a delay of 4 to 7 working days after receiving the communication from the bank, on the
part of the customer in notifying the bank of such a transaction, the per transaction liability of
the customer shall be limited to Rs._____ in case of a basic saving bank deposit account?
a Rs.5000 b Rs.10000 c Rs.25000 d no liability
11 In cases where the responsibility for the unauthorised electronic banking transaction lies
neither with the bank nor with the customer, but lies elsewhere in the system and when there
is a delay of 4 to 7 working days after receiving the communication from the bank, on the
part of the customer in notifying the bank of such a transaction, the per transaction liability of
the customer shall be limited to Rs._____ in case of a cash credit account with limit of Rs.40
lac.
a Rs.5000 b Rs.10000 c Rs.25000 d no liability
12 On being notified by the customer, the bank shall credit (shadow reversal) the amount
involved in the unauthorised electronic transaction to the customer’s account within ____
days from the date of such notification by the customer (without waiting for settlement of
insurance claim, if any).
a 7 calendar days b 10 calendar days c 7 working days d 10 working days
13 Banks are to ensure that a complaint is resolved and liability of the customer, if any,
established within such time, as may be specified in the bank’s Board approved policy, but
not exceeding ____ days from the date of receipt of the complaint,
a 90 days b 60 days c 30 days d 10 days
14 In the account of Raja, your saving bank account holder, a cheque in which, the amount in
words indicated as Rupees five lac and in figures as Rs.5000 is presented for payment. How
would you make the payment of amount ?:
a the amount in words shall be paid
b the amount in figures shall be paid
c In words or figures whichever less shall be paid
d It is safe to return the cheque
15 A cheque issued by a director of a Limited Company is presented for payment after death
of the director which the bank pays. The company observed that the deceased director had
issued cheque to benefit himself. It raises the claim on the plea that bank cannot pay such
cheque after death of the director:
a Bank cannot pay the cheque as the drawer expired
b Bank can pay the cheque as the company is still a legally competent person to contract
and the director signed as agent of the company
c Bank should contact the Co. because loss will be of the company in case of dispute
d b and c
17 Renewal of a term deposit can be considered by banks from date of maturity in case the
request is received after maturity but the overdue period should not exceed
a 7 days b 10 days c 14 days d 30 days
18 As per RBI guidelines, the banks should impose ‘partial freezing’ on KYC non-compliant
accounts in a phased manner.Partial freezing after the first 6months period, includes:
a transactions at the discretion of the bank
b only credits to be permitted
c only debits to be permitted
d no debit and no credit to be permitted
19 In order to ensure that a coloured photo copy or scanned coloured image of the cheque is
not used, which of the following features is included in the cheque under CTS 2010
standards?
a ultra-violet ink
b intaglio
c void pantograph
d UV enabled scanning
20 What is the minimum value of stock of gold coins, bullion and foreign securities, which
RBI has to maintain at any point of time, against issue of currency?
a Rs.200 cr b Rs.215 cr c Rs.115 cr d Rs.500 cr e Rs.1000 cr
21 As per Income–tax (22nd Amendment) Rules, 2015 (Rule 114B), w.e.f. 1.1.2016, quoting
of permanent account number (PAN) is mandatory for depositing cash _____ with a bank, on
any one day:
a above Rs.10000 b above Rs.20000 c above Rs.25000 d above Rs.50000
23 For a dishonoured cheque, the punishment provided under Section 138 of the Negotiable
Instruments Act to the drawer is in respect of the following:
a the cheque has been delivered as a gift by the drawer
b the cheque has been issued but the signatures do not tally
c the cheque has been presented with in the period stipulated by the drawer in the cheque
d the cheque has been dishonoured due to insufficiency of balance
e c and d above
24 Awards of Ombudsman that are not implemented by the bank for ___ are required to be
placed by a bank before ____ for examining the reasons for non-implementation and
initiating necessary remedial action :
a three months, CMD
b three months, Customer Service Committee of Board
c 2 months, Customer Service Committee of Board
d 6 months, Board of Directors
25 Hari had a saving bank account and a cheque issued by him is presented in clearing.
Meanwhile a garnishee order is received. If the cheque is to be returned, what should be the
reason:
a exceeds arrangement as garnishee order received
b exceeds arrangement
c garnishee order received, refer to drawer
d payment cannot be allowed.
e a or b
26 A has a current account with the bank and expires. The claim is settled in favour of his
heirs after six months. The legal heirs also claim interest. What would you do:
a Pay interest at SB interest rate
b Will not pay any interest, as the
balance was in current account.
c Pay FD rate for the relevant period
interest rate
d a or c whichever lower
27 The clearing house managing banks extending clearing related overdraft to member banks
can charge rate of interest on such overdraft which is related to which of the following?
a bank rate
28 As per extant guidelines, which among the following can sign the notice for possession
under SARFAESI Act 2002, on behalf of the bank?
a Any official of the bank
b Any officer of the bank
c Any manager of the bank
d Any Law Officer of the bank
e An officer in Scale IV or above or approved by Board of the Bank
29 As per RBI guidelines, the banks should impose ‘partial freezing’ on KYC non-compliant
accounts in a phased manner. Partial freezing during the first 6 months period, includes:
a transactions at the discretion of the bank
b only credits to be permitted
c only debits to be permitted
d no debit and no credit to be permitted
30 Aggrieved party on the award of Ombudsman, can make application for review to
appellate authority ____ within 30 days of the date of receipt of award
a Governor RBI
b Dy. Governor RBI
c Chairman IBA
d Judge of Distt. Court
31 In case of crop loss, under Relief Measure, for all restructuring cases, the moratorium
period should be minimum ___:
a 3 months b 6 months c 12 months d 24 months
Answers
01 a 02 a 03 d 04 c 05 b 06 a 07 d 08 d 09 b 10 a 11 c 12 d 13 a 14 a 15 b 16 c 17c
18 d 19 c 20 c 21 d 22 d 23 d 24 b 25 c 26 a 27 d 28 e 29 b 30 b 31 c