TRAINING REPORT

ON
BANKER – CUSTOMER RELATIONSHIP THOUGH
PRODUCTS & SERVICES OFFERED
AT
PUNJAB & SIND BANK
Submitted to

I.K GUJRAL PUNJAB TECHNICAL UNIVERSITY

KAPURTHALLA

In partial fulfillment of the requirement for the

award of degree of
Master of Business Administration (MBA)

Submitted by Supervisor
Maninder kaur Kartika
1827188 (Asst. professor)
 TRAINING REPORT
ON
BANKER – CUSTOMER RELATIONSHIP THOUGH
PRODUCTS & SERVICES OFFERED
AT
PUNJAB & SIND BANK

Submitted to

ST.SOLDIER MANAGEMENT AND TECHNICAL INSTITUTE

JALANDHAR

In partial fulfillment of the requirement for the

award of degree of
Master of Business Administration (MBA)

Submitted by Supervisor
Maninder kaur Kartik
1827188 (Asst.professor)
 CERTIFICATE

This is to certify that, MS. MANINKWIN KAUR, student of MBA has worked on the
dissertation titled “Banker-Customer relationship though products & services offered
with their work with special reference Punjab & Sind Bank ”. She has successfully
completed his dissertation work in partial fulfillment for the degree of M.COM. This
dissertation is the record of the student’s own efforts under our supervision & guideline

Place:

St. Soldier Management and Technical institute

 STUDENT DECLARATION

I, “Maninder kaur”, hereby declare that I have undergone my summer training at “Punjab
& Sind Bank” from June 2019 to June 2019.I have completed a research project tilted
“Training and Development” under the guidance of “Asst. professor Kartika” .

Further I hereby confirm that the work presented herein is genuine and original and has
not been published elsewhere.

Maninder kaur
 FACULTY DECLARATION

I hereby declare that the student “Ms. Maninder Kaur” of M.com 3rd has undergone his
summer training under my periodic guidance on the project titled “Banker-customer
relationship though products & services offered ”

Further I hereby declare that the student was periodically in touch with me during his
training period and the work done by student is genuine & original .

(Signature of supervisor )
 ACKNOWLEDGEMENT

Through the acknowledgement, I express my sincere gratitude towards professors

who help in the preparation of this report. I am student of M.Com . on the completion of
my industrial training at “Sonalika International Tractors Limited” I would like to present
this report of mine.

I am thankful to “Sonalika International Tractors Limited”, who gave me the permission

of training at their company and all staff members for their friendly and frank behaviour
and co-operation and also to all those industrious who helped directly or indirectly
training programmed.

Finally I would like to thank Asst Prof. Kartik under which I have prepared this report.

Maninder Kaur
 PROJECT REPORT
ON
BANKER – CUSTOMER
RELATIONSHIP
THROUGH
PRODUCTS & SERVICES OFFERED
 TABLE OF CONTENT

 Introduction
 Overview of Bank
 Background
 Position of the bank
 Vision & Mission
 Products of PSB
 Branch Network
 Objectives of Project Undertaken
 Rights As a Customer of Bank
 Common Practices followed by Bank
 PSB- Areas of Banker - Customer Relationship
 Operative Accounts
 Locker’s Facility
 Government Schemes
 Term Deposits
 Loans & Advances
 ATM/Debit Card Services
 Digital Services
 Online Payment Services
 Additional Services
 Finding & Recommendation
 Bibliography
 INTRODUCTON

Banker Customer Relationship, is just a special contract where a person entrusts valuable
items with another person with an intention that such items shall be retrieved on demand
from the keeper by the person who so entrust.

Thus the banker is the one who is entrusted with the above mentioned valuable items,
while the person who entrust the items with a view to retrieving it on demands is called
the customer.

In my project, I have attempted to study the Banker – Customer Relationship through the
products and services offered by Punjab & Sind Bank.
 OVERVIEW
OF
PUNJAB & SIND BANK
 INTRODUCTION TO PSB

Punjab & Sind Bank is a government-owned bank (79.62%), with headquarters in New
Delhi. Of its 1554 branches spread throughout India, 623 branches are in Punjab state.
Net NPA is 6.93% for the year ending 2017-18. The bank's operating profit for the year
ending 2017-18 is Rs. 1144.71 crores. Total business of the bank was Rs. 1,71,464.95
crores for the year ending 2017-18. The net worth of the bank as on 31.03.18 is Rs.
4733.96 crore.

HISTORY

On 24 June 1908, Bhai Vir Singh, Sir Sunder Singh Majitha, and Sardar Tarlochan Singh
established Punjab & Sind Bank.

On 15 April 1980 Punjab & Sind Bank was among six banks that the Government of
India nationalised in the second wave of nationalisations. (The first wave had been in
1969 when the government nationalised the top 14 banks.)

In the 1960s Punjab & Sind Bank established a branch in London. In 1991 Bank of
Baroda acquired Punjab & Sind Bank's London branch at the behest of the Reserve Bank
of India following Punjab & Sind's involvement in the Sethia fraud in 1987.

Since 2004 Punjab & Sind has shown growth of over 40% year on year, and its recent
IPO was oversubscribed by more than 50 times. Recently the bank crossed a mark of Rs.
1 lac crore in business.

Sutlej Gramin Bank was a Regional Rural Bank sponsored by Punjab & Sind Bank.
OVERVIEW OF PSB

Punjab & Sind Bank is a government-owned bank, with headquarters in New Delhi. Of
its 1554 branches spread throughout India, 623 branches are in Punjab state. Net NPA is
6.93% for the year ending 2017-18. The bank's operating profit for the year ending 2017-
18 is Rs. 1144.71 crores.

Customer service: 1800 419 8300

Headquarters: Delhi
Founder: Vir Singh
Founded: 24 June 1908
Owner: Government of India
Operating Profit: Rs. 1144.71 Crores
No. of Branches: 1554

FINANCIAL PERFORMANCE
PUNJAB & SIND BANK. (PSB) - FINANCIAL QUARTERLY

FIGURES IN RS MAR- DEC- SEP- JUN- MAR-

CRORE 2019 2018 2018 2018 2018
REVENUE 2018.20 2155.69 2199.99 2184.79 1966.30
OTHER INCOME 286.17 181.44 209.42 151.25 155.75
TOTAL INCOME 2304.37 2337.13 2409.41 2336.04 2122.05
EXPENDITURE 311.73 481.35 464.20 453.84 501.58
OPERATING 2218.88 2184.80 2255.01 2192.95 1959.01
PROFIT
INTEREST 1588.51 1621.70 1594.70 1474.06 1492.92
PBDT 28.94 8.95 -133.99 -219.19 48.14
DEPRECIATION 0.00 0.00 0.00 0.00 0.00
PBT -29.63 31.29 -243.22 -617.21 -476.48
TAX 28.94 8.95 -133.99 -219.19 48.14
NET PROFIT -58.57 22.34 -109.23 -398.02 -524.62
EPS (RS) -1.04 0.40 -1.93 -7.05 -12.87
VISION & MISSION STATEMENT

CORPORATE VISION

To emerge as a techno savvy vibrant Public Sector Bank with Pan India presence aspiring
to meet expectations of all stake holders.

CORPORATE MISSION

 To provide excellent customer service through innovative products and services for
different segments of customers using state of the art technology.

 To dedicate ourselves whole heartedly for "Sarva Jana Hitai Sarva Jana Sukhai".

 To put in place the effective Risk Management and Internal Control System.

 To strive to achieve excellence in Customer Service.

 To achieve the highest standards of transparency and accountability in the conduct of

banking system.

 To adopt professional approach in effectively managing financial as well as non-

financial risks.

 To maximize profitability and profits of the bank with due compliance of prudential
guidelines.
PRODUCTS OF PSB
 Debit Card
 ATM
 Internet Banking
 Mobile Banking
 SMS Banking
 BHIM
 UPI
 POS Machine
 AADHAR PAY
 BHARAT QR

BRANCH NETWORK

Punjab & Sind Bank is a government-owned bank (79.62%), with headquarters in

New Delhi. Of its 1531 branches spread throughout India, 623 branches are in Punjab
state. Net NPA is 6.93% for the year ending 2017-18.
STATES NO. OF BRANCHES
Andhra Pradesh 07
Arunachal Pradesh 01
Assam 14
Bihar 17
Chandigarh 27
Chattisgarh 16
Delhi 120
Goa 01
Gujarat 20
Haryana 103
Himachal Pradesh 28
Jammu & Kashmir 17
Jharkhand 16
Karnataka 13
Kerala 04
Madhya Pradesh 40
Maharashtra 36
Manipur 04
Meghalaya 01
Mizoram 01
Nagaland 02
Orissa 18
Pondicherry 01
Punjab 636
Rajasthan 51
Sikkim 01
Tamil Nadu 15
Telangana 08
Tripura 02
Uttar Pradesh 230
Uttarakhand 43
West Bengal 38
TOTAL 1531
OBJECTIVES OF PROJECT UNDERTAKEN

 To study and analyse the Banker – Customer Relationship through products and services
offered by Punjab & Sind Bank to its customers and schemes there under.

 To study and analyse actual functioning of Banker- Customer Relationship in the H-Block,
Connaught Circus, New Delhi Branch.

 To find out the effectiveness of such schemes in the Branch.

 To find out the deficiencies and adequacies in the Banker- Customer Relationship through
so offered products and services.

COLLECTION OF DATA

The data can be collected from primary and secondary sources. The basic premises of any
study is primary data. Convenient sample that was representative of the target market was
chosen. Statistical data can be classified in two categories:

 Primary Sources
 Secondary Sources

Primary Data: The Primary data is collected from the past records, its customer base
and from the existing employees.

Secondary Sources: The main sources of Secondary data are combination of

information from the internet and from the bank’s website psb.india.co.
YOUR RIGHTS AS A CUSTOMER OF OUR BANK

As our valued customer, you enjoy the following rights from our Branches network
throughout the country.

TIME SCHEDULE

Receipt of Cash 10-15 Minutes

Encashment of Cheques 10-15 Minutes
Issue of Cheque-Book/DDs/POs 15-20 Minutes
Opening of an Account 15-20 Minutes
Payment of DDs/Pos 10-20 Minutes
Payment/Renewal of FDRs 20-25 Minutes
Retirement of Bills 20-30 Minutes
Updation of Pass Book/ Issue of Account Statement 05-10 Minutes
Statement of Account to be issued regularly On every 5th of the Month.
Collection of Cheques Local 2-4 days
Outstation 10-14 days

Common Practices Followed By Bank and its Branches for Customer’s

Convenience

 branches Display of business hours.

 Attend to all customers present in the banking hall at the close of business hours
and rendering of courteous service.

 Provide separate 'Enquiry' or 'May I Help You' at large Branches.

 Offer nomination facility to all deposit accounts (i.e. account opened in individual
capacity) and all safe deposit hirers (i.e. individual hirers).

 Display interest rates for various deposit schemes from time to time.
 Notify change in interest rates on advances.
 Display of Service Charges on issue of Demand Drafts, Pay Orders, Duplicate
Drafts, Cancellation of Drafts, Collection of Documents, etc.

 Display Time - Norms for various Banking Transactions.

 Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank
of India (RBI) from time to time.

 Display of availability of Locker facility at the Branch.

 Display of Tax Collection facility at the Branch.
 Accord immediate credit in respect of outstation and local cheques upto a
specified limit subject to certain conditions, as advised by RBI from time to time.

 Provide complaint/suggestion box in the Branch premises.

 Display address of Zonal & Head Offices, as well as Nodal Officer dealing with
customer grievances/complaints.

 Name and address of the concerned banking ombudsman.

 Corruption free service to all customers.
 We have extended business hours in our fully computerized in Delhi.
 PUNJAB AND SIND BANK

AREAS OF CUSTOMER BANKER

RELATIONSHIP
Where Services is the WAY OF LIFE…….

Punjab & Sind Bank has an array of services to fulfil various needs of the
customers. The innovative products and services of the bank are listed
below:
 OPERATIVS
ACCOUNTS

OPERATIVE ACCOUNTS

 Saving Account
 PSB Premier Saving Account
 Current Account
 PSB Premier Current Account

(I) Small Accounts/Saving Account

A ‘Small Account' means a savings account in which: -

(i) The aggregate of all credits in a financial year does not exceed rupees one lakh;
(ii)The aggregate of all withdrawals and transfers in a month does not exceed rupees ten
thousand;
(iii) The balance at any point of time does not exceed rupees fifty thousand.

A ‘small account’ shall be opened on the basis of a self-attested photograph and affixation
of signature or thumb print. Such accounts may be opened and operated subject to the
following conditions:
(a) The designated officer of the bank, while opening the small account, certifies under
his signature that the person opening the account has affixed her/his signature or thumb
print, as the case may be, in her/his presence;
(b) Small account shall be opened only at Core Banking Solution (CBS) linked branches
or in a branch where it is possible to manually monitor and ensure that foreign
remittances are not credited to the account.
(c) Small account shall remain operational initially for a period of twelve months, and
thereafter for a further period of twelve months if the holder of such an account provides
evidence before the banking.
(d) Small account shall be monitored and when there is suspicion of money laundering or
financing of terrorism activity or other high risk scenarios, the identity of the customer
shall be established through the production of “Officially valid Documents (OVD)” and
(e) Foreign remittance shall not be allowed to be credited into a small account unless the
identity of the customer is fully established through the production of “officially valid
documents”.
(f) In respect of ‘Small Accounts’, the prescribed limits/conditions shall not be breached
and compliance therewith shall be strictly monitored. If any customer desires to have
operations beyond the stipulated limits, the same shall be allowed only after complying
with requirements for opening a normal account including completion of CDD/KYC
procedures detailed in Sections 16/17 and provisions of Section 67 of the Master
Direction which include quoting of PAN/Form 60 while opening an account with a bank,
NBFC, etc. If any account is rendered ineligible for being classified as a small account
due to credits/balance in the account exceeding the permissible limits, withdrawals may
be allowed within the limit prescribed for small accounts where the limits thereof have
not been breached.
(g) BSBD Accounts (PMJDY accounts are akin to BSBDAs), which are not KYC
compliant accounts are to be treated as ‘Small Accounts’ and are subjected to the
limitations applicable to such accounts. Hence, for allowing normal operations in such
accounts, the procedures explained at (ii) above are to be complied with. If any account is
rendered ineligible for being classified as a small account due to credits/balance in the
account exceeding the permissible limits, withdrawals may be allowed within the limit
prescribed for small accounts where the limits thereof have not been breached.

Basic Savings Bank Deposit Account Facilities:

It offers following minimum common facilities to all their customers:

(i) The ‘Basic Savings Bank Deposit Account’ should be considered a normal banking
service available to all.

(ii)This account shall not have the requirement of any minimum balance.

(iii) The services available in the account will include deposit and withdrawal of cash at
bank branch as well as ATMs; receipt/credit of money through electronic payment
channels or by means of deposit/collection of cheques drawn by Central/State
Government agencies and departments;
(iv) While there will be no limit on the number of deposits that can be made in a month,
account holders will be allowed a maximum of four withdrawals in a month, including
ATM withdrawals;

(v) Facility of ATM card or ATM-cum-Debit Card;

The above facilities will be provided without any charges. Further, no charge will be
levied for non-operation/activation of in-operative ‘Basic Savings Bank Deposit
Account’.

Saving Bank Account

These accounts are designed to help the individuals (personal customers) to inculcate
habit of saving money and to meet their future requirement of money. The amount can be
deposited / withdrawn from these accounts by way of cheques / withdrawal slips. The
withdrawals are restricted to 50 entries each half-year in the S.B. Account.
 Saving Bank accounts are very popular. These accounts can be opened by eligible
person(s) and certain organization(s) / agencies as approved by the Reserve Bank
of India (RBI).
 As required by law, while opening this account, we satisfy ourselves about the
identity, including verification of address, of a person(s) seeking to open an
account and to assist in protecting our prospective customer(s) and ourselves
against fraud and other misuses of the banking system.
 We are required to obtain two recent photographs of the person(s) opening the
account, as per R.B.I. directives.
 We are required to obtain Aadhaar and Permanent Account Number (PAN) or
alternatively obtain declaration in Form No. 60 or 61 as per the Income Tax Act
(vide Section 139 A) from the person(s) opening the account.
 We provide to the prospective customers details of the documents required for
identification of the person(s) opening the account.

Minimum Balance in Account

(i) For all branches other than rural Where cheque Book is not issued Rs. 500/-
Where cheque Book is issued Rs. 1000/-
(ii) Rural Branches:- Rs.500/- irrespective of whether cheque book is issued or not
-
 (II) PSB Premier Saving Accounts

With a view to make the Savings Deposit Scheme of the Bank more customer friendly,
increase Bank's market share (quantitatively and qualitatively) in low cost deposit by
attracting new constituents and also to add competitive edge to our Savings Deposit
product, Bank has launched a Scheme named PS B–Premier Savings Bank Accounts. It
has a host of benefits for the customers.
The accounts are to be opened with minimum amount of Rs.50,000/- or more in the Rural
& Semi – Urban Branches and Rs.2,00,000/- or more in the Urban & Metro Branches and
should continue to maintain minimum balance of Rs.50,000/- or more in the Rural &
Semi – Urban Branches and Rs.2,00,000/- or more in the Urban & Metro Branches.
By maintaining minimum balance of Rs.50,000/- or more in the Rural & Semi – Urban
Branches and Rs.2,00,000/- or more in the Urban & Metro Branches by the account
holder in these accounts, Bank will give them following services free of cost: -
 Free ATM Cards.
 Statement of A/C without any charge.
 Waiver of Inward Cheque Returning Charges.
 Waiver of Cash Handling Charges on cash deposit up to Rs.3.lacs.
 Waiver of Locker Rent of Small Locker for one year.
 Cheque Book with name of the customer duly printed on the Cheque Book.

(III) Current Account

(i) Current Accounts can be opened by individuals, partnership firms, private and public
limited companies, HUFs /specified associates, trusts, etc.
(ii) As required by law, while opening this account, we satisfy ourselves about the
identity, including verification of address, of a person(s) seeking to open an account
to assist in protecting the right of customer(s) and ourselves against fraud and other
misuses of the banking system.
(iii Where the prospective customer provides documents of identity and address as
) required under the customer acceptance policy, upto the satisfaction of the Bank.
(iv You are required to give Aadhaar and Permanent Account Number (PAN) or
) alternatively obtain declaration in Form No. 60 or 61 as per the Income Tax Act (vide
Section 139A) from the person(s) opening the account (i.e. including partners of
Registered/Unregistered partnership as also Registered / Incorporated bodies /
companies).
 (v) We provide to our prospective customers details of the documents required for
identification & address of the person(s) opening the account .
(vi Minimum balance as stipulated from time to time is required to be maintained and no
) interest is paid on credit balances kept in current account.
(vi Services charges are levied for:
i) Ledger folio used
Cheque Books issued
Non-maintenance of minimum balance.
Return of cheques etc.
Other facilities as required by the Current Account Customer.
(vi For opening special types of current accounts like for Executors Administrators,
ii) Trustees, Liquidators, etc., the Branch Manager may be contacted who will help in
opening these type of accounts.
(ix As per RBI directives, the applicant (i.e. account opener) should declare in the
) account opening form or separately that he is not enjoying any Credit facility with
any Bank and if he does enjoy any facility/facilities he should declare full particulars
therefore indicating the name of the Bank and name of the Branch, wherefrom he has
availed these facilities.
(x) MSME certificate of incorporation certificate is not necessary for opening of current
account for Micro enterprises.

(IV) PSB Premier Current Account

Bank has been concentrating its efforts to increase the low cost deposits and to increase
the low cost deposit, there is need to attract the new customers / clients, with a new
product which suits their requirement / demand. Consequently there has been value
addition in the existing current account. It has been named PSB Premier current Accounts
with a host of benefits for the customers.
These accounts have to be opened with minimum amount of Rs.1,50,000/- or more in the
Rural & Semi – Urban Branches and with Rs.4,00,000/- or more in the Urban & Metro
Branches and should maintain minimum balance of Rs.1,50,000/- or more &
Rs.4,00,000/- or more respectively.
By maintaining minimum balance of Rs.1,50,000/- or more in the Rural & Semi – Urban
Branches and Rs.4,00,000/- or more in the Urban & Metro Branches in the accounts,
Bank will give them following incentives: -
 Free ATM Cards.
 Statement of A/C without any charge.
 Waiver of Inward Cheque Returning Charges.
 Waiver of Cash Handling Charges.
 Waiver of Locker Rent of Small Locker for one year.
 Cheque Book with name of the customer duly printed on the Cheque Book.
 Waiver of ledger folio charges.

LOCKER’S FACILITY

The Bank provides Locker facilities to its customers with the following
details on types of Lockers available vis-à-vis rent of specified branches
(Amount in Rupees)
Sr. No Size of Locker Category of Branches
Rural/Semi-Urban Urban Metro
1 Small 1000 Per Year 1000 Per Year 1250 Per Year
2 Medium 2000 Per Year 2400 Per Year 3000 Per Year
3 Large 5000 Per Year 6000 Per Year 6000 Per Year
4 Extra Large 8000 Per Year 8000 Per Year 8000 Per Year

(50% Concession in locker rent charges to existing staff as well as Ex-

staff members of Punjab & Sind Bank).

The facility of Safe Deposit Lockers is an ancillary service offered by our Bank. The
Branches offering this facility will indicate/display this information at a prominent place.
The major aspects governing the services are:
 A locker may be hired by an individual (not minor) firms, limited companies,
specified associations and societies etc. except blind persons.
 Nomination facility is available to individual hirer of Safe Deposit locker.
 Loss of key should be immediately informed to the Branch and customer will be
charged for break-opening of the Locker. Lockers are available in different sizes.
 Lockers are rented out for a minimum period of one year as per bank's policy. In
case of overdue rent, the Bank will charge penalty as decided from time to time.
 With standing instruction, the rent may be paid from the deposit account of the
hirer.
 We will issue locker only to properly introduced persons.
 We reserve our right to break open the locker if the rent is not paid inspite of
giving notices as per the Bank rules and recover charges thereof.

GOVERNMENT SCHEMES

GOVERNMENT SCHEME

 Pension Account
 Public Provident Fund
 Senior Citizen
 Sukanya Samriddhi
 National Pension Scheme

(I) Central Pension Processing Center (CPPC)

With a view to provide better and accurate service to our pensioners, Punjab and Sind
Bank has centralized the payment of pension at CPPC. The CPPC is located at A-25, First
Floor, Community Centre, Jawala Heri, Paschim Vihar, New Delhi-110063
CPPC processes all the calculations related to pension as per PPO'S issued by Govt.
authorities. Any changes in respect of pension parameters like Basic Pension, DA rates,
Revisions are also done by CPPC. The CPPC credits pension directly into pensioners
accounts once all formalities and obtaining of required papers such as life
certificate/undertaking etc. are complete.
We are striving for timely and accurate payment of pension to all categories of pensioners
as well as redressal of grievances of the pensioners. For redressal of Pensioners
grievances, they can contact us via. Email at cppc[at]psb[dot]co[dot]in or our landline
No. 011-25281210
 Currently our CPPC is disbursing pension to Central Civil, Telecom and Postal
Pensioners.
Process of Pension Calculation
The net pension of the pensioners is arrived at by adding the following
 Basic Pension
 Dearness Relief amount
 Medical Allowance
 Additional Basic, if applicable
 Other Allowances, if any
And deducting the following
 Commutation amount
 Excess Pension Paid, if any
Medical Allowance of Rs.300/- is eligible for the pensioners belonging to Central Civil,
Defence, Railway, Telecom, etc. categories for those who are not under CGHS scheme :

(II) Public Provident Fund

The Bank is opening accounts and accepting deposits in Public Provident Fund
Scheme and Senior citizen Scheme saving Schemes through our fifty branches which
have been authorized by Ministry of Finance to accept subscriptions under PPF Scheme
1968 and SCSS 2004.
The Scheme offers an investment avenue with decent returns coupled with income tax
benefits as below -
 Deposits upto Rs 1,50,000/- Lac qualify under Section-80C of I.T. Act
 Interest earned is completely free from Income Tax.
 The interest rates are notified by Government of India from time to time.
 Easy liquidity by provisions of loan and withdrawal.
The Salient features of the Scheme are as follows:
Eligibility
Individuals in their own name as well as on behalf of a minor can open the account. The
Non Residents Indians are not eligible to open account under PPF Scheme. The account
can be opened in any one of the authorized branches of Punjab & Sind Bank. Those
having General Provident Fund or Employee's Provident Fund can also open a Public
Provident Fund.
Investment Limits
Any amount in multiple of Rs 100/- with a minimum Rs 500/- and maximum of Rs
1,50,000/-in a year in all the accounts taken together. A year for the purpose of Scheme
means a financial Year. The subscriber should not deposit more than Rs.1,50,000 per
annum as the excess amount will neither earn any interest nor will be eligible for rebate
under Income Tax Act.

Duration of Scheme
Original duration is 15 years. Thereafter, on application by the subscriber, it can be
extended for 1 or more blocks of 5 years each.

Rate of Interest
Interest will be paid on 31st March every year. Interest is calculated on the minimum
balance between 5th day and end of the month. The interest rate are notified by
Government of India from time to time.

Loans and Withdrawals

Loans and withdrawals are permitted depending upon the age of the account and balances
as on the specified dates.

Tax Benefits
Income Tax benefits are available under Sec 8OC of IT Act. Interest Income is totally
exempt from Income Tax.

Nomination
Nomination facility is available in the name of one or more persons. The shares of
nominees may also be defined by the subscriber.

Transfer of Account
The account can be transferred to other branches/ other banks or Post Offices and vice
versa upon request by the subscriber. The service is free of charges.
Instrument Rate of Interest w.e.f. 01.01.2018 Compounding
to 31.03.2018 Frequency

5 Year Senior Citizen Saving 8.30% Quarterly paid

Scheme (SCSS)
Public Provident Fund Scheme 7.60% Annually
(PPF)
 Sukanya Samriddhi Account 8.10% Annually
Scheme (SSA)

(III) Senior Citizen Scheme

All persons of 60 years and above are eligible for the following special treatment at PSB.
(For proof of age - School leaving certificate, LIC policy, Voter identity card, Passport or
Birth Certificate issued by a competent authority be given/submitted.)
Separate line / queue for Senior Citizens in front of every counter, is provided by
branches.
Seating arrangements are provided to all the customers including Senior Citizens /
Pensioners and Physically Challenged Persons at all the Branches / Offices of the Bank.
The senior citizen can open Fixed Deposit Account jointly with other person below the
age of 60 years but the first name should be of senior citizen. The scheme is applicable
for fresh deposit or renewal of deposit.
Rate of Interest
 It has also been decided to give additional benefit to Senior Citizens over and
above card rates only on term deposits of any amount as under:-
"The Senior Citizen shall be given as additional rate of 0.50% on any amount over and
above the mentioned rates for deposits with maturity period 180 days and above for fresh
and renewed deposits."
 Ex -staff Members are eligible for 1% extra rate of interest, however, please note
that if the Ex-Staff Member is also a Senior Citizen, he will also be eligible for additional
interest applicable to Senior Citizen shown as above
Committee at Branch Level.
The above said additional benefit given to Senior Citizens has been changed from time to
time by HO risk Management Department.

Other Special Facilities

In addition to above, the following additional facilities is also given to Senior citizen:
 No Service Charges are levied for not maintaining minimum balance in the
Savings Bank Accounts.
 3 Demand Draft upto Rs. 5000/- each are issued at par per calendar month.
 3 instruments upto Rs.3000/- each are collected at par per calendar month. Only
out of Pocket expenses are recovered for offering this facility.
 (IV) Sukanya Samriddhi
The salient features of the scheme are as follows:
 Account can be opened in the name of a girl child till she attains age of 10 years.
 Only one account can be opened in the name of a girl child.
 Account can be opened in authorized branches of the bank only.
 Birth Certificate of the girl child in whose name the accounts is opened must be
submitted.
 Account can be opened with a minimum of Rs. 1000/- and thereafter any amount
is multiple of Rs. 100/- can be deposited. A minimum of Rs. 1000/- must be deposited in
a financial year.
 Interest as may be notified by the Government from time to time will be
calculated on yearly compounded basis and credited to the account.
 Maximum Rs. 1,50,000/- can be deposited in a financial year.
 One withdrawal shall be allowed on attaining the age of 18 years of account
holder to meet education/Marriage expenses at the rate of 50% of the balance at the credit
of preceding financial year.
 The account can be transferred anywhere in India from one bank to another.
 The account shall mature on completion of 21 years form the date of opening of
account.

(V) National Pension Scheme

 NPS is a voluntary defined contribution retirement saving scheme
 Yields market based returns
 NPS is regulated by PFRDA
 Pension funds are invested by PFRDA
 Bank's designated branches i.e. Point of Presence-Service Provider (POP-SPs)
accept the application form and get the subscriber(s) registered with Central Record
keeping Agency (CRA) for generation of the Permanent Retirement Account Number
(PRAN). 931 branches authorized as pop-sp
 NPS services: collection , filling and submission of subscription forms, The
PRAN will be quoted in all future transactions.
 NPS is available for corporates and individuals through corporate model and all
citizen model respectively
 Two types of account available for both models
  Tier i : Pension Account
 Tier ii : Investment Account

 Investment option
 Active choice(manual intervention required)
 Auto choice(predefined investment)
 Contribution
 Tier i: Min Rs 500 at the time of opening account, Min Rs 6000 contribution per
financial year.
 Tier ii: initial contribution is Rs.1000, minimum a/c balance 2000 per financial
year.
 Tax benefit
 Tax is exempted of 1.5 lakh under 80cce
 Additional saving of 50000 under tier i is exempted under 80ccd

Term Deposits

PSB Term Deposits

 PSB Recurring Deposit Account

PSB Fixed Deposit
PSB Tax Saver

(I) Recurring Deposit Scheme

Who can open an account ?
 An individual who is not insolvent or insane, can open an account singly or
jointly.
 Such accounts can be opened by Individuals (singly or jointly), a firm,company,
club, Association , Institution, Govt. or Semi Govt. Body, Co-operative societies,
religious and charitable institutions etc.
 Minimum deposit in the Account - Minimum of Rs. 10/-
 Maximum deposit in the Account - Maximum of any amount per month.
 Minimum and Maximum tenure:
 Minimum tenure - Minimum period 6 months.
 Maximum tenure - Maximum 10 years.
 Rate of Interest- As per rate applicable to fixed Deposit for the respective
maturity period.
 Periodicity of Interest-The interest is compounded at quarterly intervals but paid
along with principal at the time of maturity of deposit.

Maturity Term Deposits Less than Rs.1 Cr (% p.a.)

7 - 14 Days 4.00
15 - 30 Days 4.10
31 - 45 Days 5.10
46 - 90 Days 5.60
91 - 150 Days 6.10
151-179Days 6.10
180 - 269 Days 6.60
270 – 364 Days 6.85
1 Year -2Year 7.10
Above 2 Years - <3Years 7.00
3 Years – 5Years 7.00
>5 Years – 10 Years 7.00

(II) PSB Fixed Deposit

Who can open an account?
 An individual who is not insolvent or insane, can open an account single handedly
or jointly.
 Such account can be opened in the name of individuals (singly or jointly, Minors
(through their guardians) firms, corporate bodies, trusts, Regd. Associations, Joint Hindu
family firms and public undertakings.
 Nomination facility is available for depositors
Senior Citizens
The Senior Citizens shall be given an additional rate of 0.50% on any amount over and
above the mentioned rates for deposits with maturity period 180 days & above for fresh
and renewed deposits.
Staff / Ex-staff members
Ex -staff Members are eligible for 1% extra rate of interest, however, please note that if
the Ex-Staff Member is also a Senior Citizen, he will also be eligible for additional
interest applicable to Senior Citizen. shown as above.

Punjab and Sind Bank FD Interest Rates, Jul 2019

Punjab and Sind FD rates
TENURE FD Rates Senior Citizen FD Rates

7 days to 14 days 4.00% 4.00%

15 days to 30 days 4.00% 4.00%

31 days to 45 days 4.00% 4.00%
46 days to 90 days 5.50% 5.50%
91 days to 120 days 5.75% 5.75%

121 days to 150 days 6.00% 6.00%

151 days to 179 days 5.85% 5.85%

180 days to 269 days 6.40% 6.90%

270 days to 364 days 6.40% 6.90%

1 year to 2 years 7.00% 7.50%
2 years 1 day to 2 years 364 6.80% 7.30%
days
3 years to 10 years 6.55% 7.05%

The above rates are applicable for deposits of below Rs. 1 crore

Various Fixed Deposit Schemes of the Bank

Fixed Deposit Scheme Ordinary

Under this scheme any sum can be placed for any fixed period ranging from 15 days to
120 months and the interest accrued can be withdrawn at the quarterly intervals.
Minimum period of 7 days also permissible (conditions apply)

Saving With Smile Deposit Scheme

It is a reinvestment plan deposit scheme, under which compound interest is paid.
The interest is compounded at quarterly intervals but paid along with principal at the time
of maturity of deposit.
Any amount of deposit shall be accepted under this scheme for a minimum period of 36
months and a maximum period of 120 months.

Short Term Deposit Scheme

It is a reinvestment deposit scheme under which the depositor can place the funds for
short period and still can reap the benefits of compound interest.
Any amount of deposit shall be accepted under this scheme for a minimum period of 6
months and a maximum period of 36 months.

Capital Gain Deposit Scheme

This is a scheme under which the tax payers can avail of benefits of exemption from
Capital gains, only if the amount of Capital gains or the net consideration is deposited in
Public Sector Banks on or before their due date of filling the income tax return. (Subject
to conditions as contained in relevant provisions of Income Tax Act 1961,) as amended
from time to time.
Please note that the additional interest rate benefit for Senior Citizens /Staff / Ex Staff is
not applicable under Capital Gain Scheme.

Harhi Savni (Rabi Kharif) Jama Yojna

Harhi savni (Rabi Kharif) Jama Yojna is a unique scheme offered by Punjab & Sind Bank
to its farmer friends.
The scheme is specially designed to help the farmers to invest their surplus funds at the
time of each harvesting.
The scheme also provides flexibility in depositing the instalments with minimum of
Rs.1000/-- and in multiples thereof to any amount.
The deposit of instalments is correlated with the harvesting of Hari (Rabi) / Savni
(Kharif) crops and is required to be deposited each year before 30th June and 31st
December every year.

(III) PSB Tax Saver Scheme

Bank has formulated Fixed Deposit Scheme for Tax Saving under Section 80 C (2) of the
Income Tax Act, 1961.
Salient features of the scheme
An Individual or a Hindu Undivided Family can invest in the Fixed Deposit of our Bank
under the scheme.
Account can be opened in a Single or a Joint Name.
Under the joint account deposit receipt may be issued to two adults or jointly to an adult
and a minor, and may be payable to either of the holders or the survivors.
In case of Joint Name the tax benefit under section 80 C will be available only to the first
holder of the deposit.
The investment in Fixed Deposit under the scheme along with investments in other
Saving Schemes, will be subject to the overall ceiling of Rs. 1.5 lac for the purpose of tax
benefit under Section 80 C.
The minimum amount to be invested under the scheme is Rs. 100/- or multiples thereof.
As per the scheme the Fixed Deposit so placed cannot be pledged with any other agency
or offered as a security for any purpose.
The 'lock in' period for such Fixed Deposit shall be five years. Fixed Deposit cannot
be encashed before the expiry of 5 years.
The interest on the Fixed Deposit shall be liable to tax either on Accrual or on Receipt
basis, depending upon the method of accounting followed by the investor.
The scheme provides Nomination Facility, which can be effected at the time of the
deposit or at any time before maturity.
In the event of death of the holder of a Fixed Deposit in respect of which a nomination is
in force, the nominee shall be entitled to encash the Fixed Deposit at any time before or
after the maturity of the Fixed Deposit. In case of pre-matured payment the interest will
be paid according to the period the deposit actually run without penalty at the rates
applicable under normal fixed deposit scheme.
The fixed deposit may be transferred from one branch to any other branch of the Bank on
the request of the holder(s).
If a fixed deposit receipt is lost, stolen, destroyed, mutilated or defaced, the person
entitled thereof may apply for the issue of a duplicate receipt. A statement showing
particulars, such as number, amount and date of the receipt and the circumstances
explaining such loss, theft, destruction, mutilation or defacement, shall accompany every
such application. On satisfaction a duplicate receipt shall be issued to the applicant on
furnishing an 'Indemnity Bond' in prescribed form with one or more approved sureties or
with a Bank Guarantee.
Provided that where the face value or the aggregate face value of the certificate or
certificates lost, stolen, destroyed, mutilated or defaced is five hundred rupees or less, a
duplicate receipt or receipts may be issued on the applicant furnishing an 'Indemnity
Bond' in prescribed form without any such surety or guarantee.
Provided further that where such application is made with respect to a receipt mutilated
or defaced, or whatever face value, a duplicate receipt may be issued without any such
indemnity bond, surety or guarantee, if the receipt mutilated or defaced is surrendered
and the receipt is capable of being identified as the one originally issued.
Please note that the duplicate receipt issued shall be treated as equivalent to the original
receipt for all the purposes of this scheme except that it shall not be encashable at a
branch other than the branch at which such original receipt is issued without verification.

LOANS
&
ADVANCES

LOANS AND ADVANCES

What is a Loan ?
A loan is money, property or other material goods given to another party in exchange for
future repayment of the loan value amount, along with interest or other finance charges. A
loan may be for a specific, one-time amount or can be available as an open-ended line of
credit up to a specified limit or ceiling amount.
Loan
Loans can come from individuals, corporations, financial institutions and governments.
They offer a way to grow the overall money supply in an economy, as well as open up
competition and expand business operations. The interest and fees from loans are a
primary source of revenue for many financial institutions, such as banks, as well as some
retailers through the use of credit facilities.
How a Loan Works?
The terms of a loan are agreed to by each party in the transaction before any money or
property changes hands. If the lender requires collateral, this requirement will be outlined
in the loan documents. Most loans also have provisions regarding the maximum amount
of interest, as well as other covenants such as the length of time before repayment is
required.
Two Types of Loan Available from Bank:
 Demand Loan
 Term Loan

What Is Demand Loan ?

This loan type is often referred to as a call loan, or money at call. It is a loan with the
least amount of restrictions on the part of the lender, and also the borrower. It is also one
of the more risky loans for the borrower to undertake if she or she does not have a good
relationship with the lender. However, this almost never happens because for the most
part, lenders do not give out demand loans unless they have a good working relationship
and history with the borrower. One good example of a demand loan is a bank overdraft.
These loans have an open repayment plan with low interest, which is great for the
borrower, but they also provide the lender with the opportunity to repossess the loan and
demand payment on the spot, which is not so great for the borrower! However, since
these loans are usually given out to businesses or persons that have a long and good
history with the lender, this almost never happens.

Advantages of a Demand Loan

The advantages of acquiring one of these loans apply more to businesses (small or large)
that need loans for short periods of time every now and again to start up a new venture
within their company. Sometimes it takes a bit of time for something new to start making
money, and a demand loan can help out during this period. Since the loan has no
repayment plan, the company is free to take and pay back as much as they want before
they are ready to pay off the loan. Another advantage to this type of loan is that a person
or business can even have more than one demand loan at a time, provided that they have
a good loan payback history with the lender of course. Demand loans are also one of the
easiest loans to qualify for, and it is also easy to request an increase on an existing loan.
The biggest advantage of this loan would have to be the low interest rate. No one likes to
pay high amounts of interest, and it seems to take forever to pay off a loan of any amount
when the interest is high.

What is Term Loan?

A term loan is a monetary loan that is repaid in regular payments over a set period of
time. Term loans usually last between one and ten years, but may last as long as 30 years
in some cases. A term loan usually involves an unfixed interest rate that will add
additional balance to be repaid.
Term loans can be given on an individual basis, but are often used for small
business loans. The ability to repay over a long period of time is attractive for new or
expanding enterprises, as the assumption is that they will increase their profit over time.
Term loans are a good way of quickly increasing capital in order to raise a business’
supply capabilities or range. For instance, some new companies may use a term loan to
buy company vehicles or rent more space for their operations.

Types of Term Loans

Term loans come in several varieties, usually reflecting the lifespan of the loan.
 A short-term loan, usually offered to firms that don't qualify for a line of credit,
generally runs less than a year, though it can also refer to a loan of up to 18
months or so.
 An intermediate-term loan generally runs more than one – but less than three –
years and is paid in monthly instalments from a company’s cash flow.
 A long-term loan runs for three to 25 years, uses company assets as collateral and
requires monthly or quarterly payments from profits or cash flow. The loan limits
other financial commitments the company may take on, including other debts,
dividends or principals’ salaries and can require an amount of profit set aside for
loan repayment.

Features of Term Loans:

1. Security:
Term loans are secured loans. Assets which are financed through term loans serve as

primary security and the other assets of the company serve as collateral security.

2. Obligation:

Interest payment and repayment of principal on term loans is obligatory on the part of the

borrower. Whether the firm is earning a profit or not, term loans are generally repayable

over a period of 5 to 10 years in instalments.

3. Interest:

Term loans carry a fixed rate of interest but this rate is negotiated between the borrowers

and lenders at the time of dispersing of loan.

4. Maturity:

As it is a source of medium-term financing, its maturity period lies between 5 to 10 years

and repayment is made in instalments.

5. Restrictive Covenants:

Besides asset security, the lender of the term loans imposes other restrictive covenants to

themselves. Lenders ask the borrowers to maintain a minimum asset base, not to raise

additional loans or to repay existing loans, etc.

6. Convertibility:

Term loans may be converted into equity at the option and according to the terms and

conditions laid down by the financial institutions.

Important Loan Schemes Of The Bank

 PSB Apna Ghar

 PSB Apna Vahan

 PSB Gold Loan

 PSB Contractor Plus

 PSB Sukhmoney for Senior Citizen

 PSB Doctor’s Loan

 PSB Excellence Education Loan

 PSB Mortgage

 PSB Vyapar

 PSB Kisan Home Loan

 PSB SB OD

 PSB Personal Loan

  PSB Commercial Vehicle Loan

PSB Apna Ghar

To augment the growth in Home finance by way of approving the builder’s / developers
project, guidelines on PSB Housing loan- Tie up with builders.

 The main purpose of PSB Apna Ghar is to augment the growth in Housing
Finance by way of approving the up-coming, viable Housing Projects in Urban
and Metro areas.
 The project approval would facilitate the fast delivery of Credit.
 The persons or the builders or developers should be or not be a borrower of the
bank can apply for the loan.
 The builders should be selected on the basis of its credentials, market reputation
and past performance in previous projects.
 Maximum 25% units in an approved project can be financed.

PSB Apna Vahan

 The main purpose of PSB Apna Vahan is to augment the growth in Vehicle
finance by the way of approving their loan.
 The terms of PSB Auto Loan Scheme were subsequently amended from time to
time in the view of competitive market conditions.
 The main purpose of PSB Apna Vahan is purchase of New and Old Four- Wheeler
Vehicles and New Two- Wheeler Vehicles.
 The old vehicles should not be older than 5 years subject to repayment period.
 The individual as well as business concerns are eligible to take loan.
 For New and Old Vehicles in case of Individuals and Proprietorship concerns no
Maximum Ceiling on amount of loan.
 Repayment for new Four- Wheeler Vehicle is maximum 84 months and for Two
Wheeler Vehicle is 36 months.
 For Old Vehicles repayment should be done in 60 months – 84 months.
PSB Gold Loan

 In this scheme, bank provide Loans to individuals for productive like

agriculture/allied activities, micro & small enterprises etc.) and consumption
purposes against the security of Gold jewellery/Ornaments and Gold Coins.
 Scheme code of Demand Loan is DEJEW, For Term loan it is TLJEW and for
Overdraft it is ODJEW.

Procedure for Gold Loan:

 The branch should be authorised by Zonal Manager for making advance under
the PSB Gold Loan
 The purpose should be mentioned in the application.
 Branch Manager should ensure that borrower is fully KYC compliant and
genuine credential as a borrower.
 Gold Coins as a Security should not be more than 50 grams.
 If the Gold is of purity less than 22 carat, it should be translated into 22 carat
and valued proportionality.
 Repayment period should not be more than 12 months except in case of
agriculture where repayment can be made in 24 months.
 Branches to ensure that Loan to Value (LTV) ratio should not exceed 75% of
value of security during currency of loan.
 The purpose of PSB Gold Loan is funding agricultural / allied activities ,
micro and small enterprises, for investment in business other bonafide
requirement of business.
 The credit facility will be granted to fully KYC compliant customers,
including staff members and ex-staff and their family members.
 Quantum of Finance at minimum is Rs. 1000/- and at maximum its limit is Rs.
25 lakhs.

PSB Contractor Plus

 To place ourselves competitively in the market and to meet extensive

credit demands of the contractors under MSME Categories the bank has
introduced a tailor made product to suit exclusively to the needs of the
credit requirement of the contractors.
 It provide the facility of Overdraft (CTROD), Term Loan (CTRTL) and
Flexi Term Loan (CTRFL).
 It can be provided for the following purpose :-
 Working Capital: Fund based and Non-fund Based facilities limits to
meet day to day requirement/material/labour payment/ statutory payment.

Term Loan: For purchase of Plant & Machinery/Equipment/Transport

Vehicles to be used for the execution of Contract work.

Bank Gurantee: For bidding of tenders, mobilization of Advance money,

performance of the contract, gurantee in favour of central/State Govt. & its
various deparment.

 The Quantum of finance minimum limit is Rs. 10 lakh and maximum limit
is Rs. 2000 lakh.

PSB-Sukhmoney Scheme for Senior Citizen

I. The main purpose to design this is to help Senior Citizens to sustain their
lifestyle and also help them to maintain their monthly expenditure without
being dependent on anyone.
II. It is a Social Security Scheme designed to benefit the Senior Citizens post
retirement.
III. The loan can be used for following purposes:-
 Meeting genuine needs.
 Up gradation, renovation and extension of residential property.
 For Insurance of residential property.
 For medical emergency expenditure for maintenance of family.
 For Supplementary Pension and other income.
 Repayment of an existing loan taken for the residential property to be
mortgaged.
 The borrower should be a Senior Citizen of India above 60 years of
Age.
 The residential property should be in his/her single name or jointly
with her Spouse.
 The residential property should be self-occupied.
 The residual life of the property should be more than the period of
loan.

PSB Doctor’s Loan

I. The main purpose of PSB Doctor’s Special Loan is setting up, acquiring construction,
expansion, renovation of clinics, hospitals, clinical labs, nursing homes etc.
II. Medical practitioners registered with statutory bodies like, MCI, DCI, CCIM, CCH
etc. and having minimum qualification MBBS/BDS/BPT/ BAMS or equivalent
professional degree holders are eligible for taking loan from the bank.

PSB Excellence Education Loan

I. An education loan is a sum of money borrowed to finance college or other school-

related expenses. Payments are often deferred while students are in school and for a six-
month grace period after graduation.
II. Education loans are issued for the purpose of attending an academic institution and
pursuing an academic degree. Education loans can be obtained from the government or
through private-sector lending sources.

 Students who have secured admission in regular full time Degree / Diploma
courses of all the IIMS, IITS and ISB Hyderabad are eligible to take loan.

 Quantum of loan is as per the fee structure of the respective institute plus personal
monthly expenses max upto Rs 5000 per month and project expenses, books etc.

 Co-borrowers in Education Loan is Parents or Guardians.

 No collateral security is required.

PSB Mortgage

I. This is an all purpose credit facility i.e. to meet legitimate need based expenses viz-
marriage /medical /educational expenses / repairs / renovation / extension to the residence
/ commercial property/ purchase of consumer durables or any unforeseen expenses, and
also for investment in business, to meet credit needs of trade, commercial activities, other
bonafide requirements of business/ profession.
II. Business Concerns (MSME) & Salaried Individuals who are income tax assesses are
eligible to apply for the loan.
III. In case of Partnership firms, Proprietary firms, Companies (Private/Public Ltd.),
HUFs, Trusts, Societies, NRIs (subject to compliance of guidelines of Bank & RBI) are
eligible.
IV. Age limit of the Borrower is Min 18 yrs., Max 65 yrs. and owning residential/
commercial property.
V. Credit facility against agricultural property is strictly not permitted. Credit facility
shall not be permitted against security of immovable property wherein Educational/
Religious Institutions are located. Vacant land may preferably be not taken as security
under the scheme.
VI. Quantum of finance is Minimum: Rs 5 lacs, Maximum Rs.500 lacs.

PSB Vyapar

I. The main purpose of PSB Vyapar loan is for the working capital/any business purpose
requirements of the business concern and also, for the construction of shop in the pre-
owned land or for purchase of ready built shop/ commercial space for business.
II. The following persons or parties are eligible for the loan:-

 Retail Traders/Wholesale Traders

 Contractors
 Professional and self employed
 Micro, Small & Medium Enterprises Service/ Manufacturing concerns
 (Borrowers satisfactorily engaged in trading/ business activity for a period atleast
1 year prior to seeking credit under the scheme and having earned cash profit
during the period )

 Newly Established Entity /Venture are also eligible for credit facilities under the
scheme based on merits and on a case to case basis.

 Credit facility against agricultural property is strictly not permitted. Credit facility
shall not be permitted against security of immovable property wherein
Educational/ Religious Institutions are located. Vacant land may preferably be not
taken as security under the scheme.
III. Quantum of finance is Minimum: Rs 5 lacs. And Maximum: Rs 500 lacs.

PSB Kisan Home Loan

I. For purchase/ construction/ repair/ renovation/ upgradation of house situated in rural

and semi urban areas only.
II. Housing Loan under the scheme would be extended only through Rural & Semi
Urban Branches of the Bank.
III. Loan Eligibility based on the Income of the Borrower:-
  The net income or surplus after payment of loan instalments and all other
deductions/liabilities should not be less than 40% of the gross income.
 Income of spouse, son(s) and daughter(s)-in-law of the borrower may also be
considered to arrive at the maximum permissible amount of loan.
 Income to be arrived based on Income Tax Return/ Income Certificate issued by
the Tehsildar/ Mandal Revenue Officer/ District Revenue Authorities/ Patwari or
any competent authority taking into account extent of land holdings owned by the
party, type of crops cultivated, average market price of the crop, cost of
cultivation of the crop etc.
IV. Borrower should be in age group between 21 and 60 years.

V. Quantum of Finance Maximum Loan upto Rs. 20 Lac, subject to following sub-
ceilings:-
a) Loan for purchase of plot not to exceed 20% of the loan sanctioned.
b) Loan for repair / renovation of house, not to exceed Rs.2 lacs.

PSB SB OD

I. To provide Overdraft to the customer to enable him/her to meet the urgent Social
Obligation/requirement such as medical/education expenses etc.
II. Eligible for the Loan if:-

 The permanent employee working with Central / State Government /

PSUs/Reputed Public Limited Companies/All Corporate borrowers of our Bank/
MNCs/ Reputed Educational Institutions (Govt. recognized/ aided
Schools/Colleges/ Universities/Research Institutes) / employee of those schools,
colleges having school account with us/ PSB Staff.

 All existing account holders working with above offices or companies, upon their
request, are eligible under the scheme.

 The account should be at least three months old, salary being credited in the
account atleast for last 3 months.

 The account holder should have minimum 1 year of completed service and/or he
should be permanent employee.
III. The account can be opened and maintained at Zero Balance. The account holder will
be allowed to maintain the A/c even at zero balance as long as he/she is 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).
IV.Interest rate offered for credit balance as per the extent rates for Savings bank account.
V. Passbook Facility is available.
VI. Overdraft Facility

 Limit of Overdraft: Up to Two months "Net Salary."

 Documents: As applicable to Clean overdraft facility.
 Documentation Charges: Actual stamp paper charges.
 Repayment: Next salary (ies) within a period of 6 months.
 Review of facility: Every year.

PSB Personal Loan

I. The money that you borrow from a bank or other financial organization
for your personal, rather than business use.
II. Any genuine personal credit requirement, Undertaking to be obtained from the
applicant that the funds sanctioned by the Bank under the above Scheme would not be
utilized for any speculative purpose.
III. Eligibility for Personal Loan for Salaried Class

 To Govt./PSU employees.
 To Confirmed/Permanent/Regular Employees of other institutions.
 Pension Class: Pensioners having their pension account with our Bank.
IV. Age limit Minimum : 21 years
Maximum:
 For Salaried Class (Govt. /PSU): 60 years
 For Salaried Class (Private) : 65 years
 For Pensioners : Upto 70 years

PSB Commercial Vehicle Loan

 PSB Commercial loan is augment for purchase of New Commercial Vehicles like,
Buses, Trucks, Tankers, Tempos, Taxi, Four/ Three wheelers, and any other
 vehicles of mass transportation subject to the condition that the vehicle is
approved by the competent authority for commercial purposes.

 Eligibility:-

 Individuals, proprietorship/partnership firm/ Limited company, trust, society,

associations owning and operating or proposing to own and operate transport
vehicles for carrying passengers or goods on hire.

 The borrower (s) either hold the necessary driving license or engage driver (s)
possessing valid license to operate the type of vehicle for which credit is sought.
 The borrower (s) should have been granted a permit by an appropriate authority to
ply vehicle(s) for passengers or goods traffic for hire.

 The primary security against the loan is Hypothecation of the vehicle to be

purchased.

ATM/Debit Card Services

VI. ATM/Debit Card Services
 (1)RuPay Prepaid Cards

Eligibility Criteria for Applying for PSB Rupay Prepaid Cards

 The holder of Savings Bank/ Current/ Over Draft accounts in their individual
capacity is eligible for issue of Card.
 The account should be strictly KYC compliant.
 In case of joint accounts, only such accounts are eligible which are to be operated
singly, in the name of the first account holder and with the consent of the other account
holder/s.

Features
 A domestic Card used in India and to be issued as Non-Personalized Card only.
 Reload option Available
 Minimum Rs. 1,000/-, Maximum amount not to exceed Rs. 10,000/- at any time.
 Maximum per transaction limit per Card per day is restricted to Rs.10,000/-
(including ATM, POS & E-com).
 Low risk as there is no access to the Primary Account of the account holder.
 Can be used at ATMs of any Bank, displaying the logo of RuPay
 The card can also be used in POS terminals in India displaying RuPay Logo and
online as well.
 The Card is valid up to the last working day of the month and the year indicated
on the Card.
 Maximum validity period of the card is seven (7) years.

(2) Debit Cards

All the Branches can issue Debit Cards to Customers whether ATM is attached with the
branch or not.
 All Customers including Minor and illiterate are eligible for applying Debit
Cards.
 Savings accounts with cheque book facility/ Current accounts/ Over Draft
accounts in individual capacity are eligible for issue of Card.
 In case of joint accounts, Debit Cards are issued to single.
 Customer operating the account.
 Accounts operated by joint signature or account of a minor or an account in which
a minor is a joint account holder are also eligible.
 Existing ATM Debit Card holder can also apply for Rupay Debit card, their
existing card in that account, if any, would be blocked at the time of issue of Rupay Card.
 Only one card can be issued to a particular account.

Types of Cards:
PSB issues both Non - Personalized and Personalized cards to the customers
Non Personalized Cards
Non personalized cards are issued immediately. The customer needs to apply for the card
and request for activation through the Branch. These cards come along with the welcome
kit.
Personalized Cards
ATM cum Debit cards are issued with card holder’s name embossed on the face of card in
the active state. PINs & Cards are issued separately & are dispatched to the branches on
different dates & through different courier.

Features
 Banks’ ATMs for withdrawing cash.
 POS and E-commerce channels for making merchant and online payments.

The following facilities are provided at our ATMs

 Cash Withdrawal/Balance enquiry/ Mini statement/ PIN Change in ATMs
 Aadhaar seeding through ATM
 OD facility for PMJDY customers through ATM
 Mobile Banking registration through ATMs
 Daily ATM cash withdrawal limits of Rs.25000/- per day.
 A separate daily limit of Rs. 1, 00,000/- is available for POS + e-commerce
transactions.

Types of Debit Card

(i) RuPay Classic Debit Card

This card can be issued to all Customers under any category of account types Savings,
Overdraft, Current.

(ii) RuPay PMJDY Card

RuPay PMJDY Card is issued for Customer under Financial Inclusion under prestigious
Prime Minister Jan Dhan Yojana (PMJDY) scheme. This is a Debit Card of classic
variant. This card is issued only to Customers under Financial Inclusion scheme.

(iii) RuPay KISAN Credit Card (KCC)

The Kisan Credit Card (KCC) is an effective instrument for making agricultural credit
available to the farmers of country. This facility is applicable for Cash Credit accounts
(CC) only and the credit limit depends upon the quantity of land a particular customer is
having.

(iv) RuPay PUNGRAIN Arhtia Card

Pungrain RuPay Card is another variant of RuPay Debit Card and shall have all the
features of RuPay Debit card which shall be issued to Arhtias in Punjab State registered
under Punjab Grain Co-operation (PUNGRAIN). These Cards are issued on CC &
CA accounts only.

(v) RuPay PUNGRAIN Miller Card

 Pungrain RuPay Miller Card is also of RuPay variant having similar features like
Pungrain Arhtia Card, however issued to Millers in Punjab State registered under
Punjab Grain Co-operation (PUNGRAIN). These Cards are issued on CC & CA
accounts only.

(vi) RuPay MUDRA Card

Micro Units Development and Refinance Agency (MUDRA) has been launched as a
new financial institution with the objective of extending credit to the millions of small/
micro units which are outside the banking fold. This MUDRA has designed a credit
product called “MUDRA Card” which will provide credit to borrower in the form of cash
credit/ overdraft, which can be operated through RuPay Mudra Debit Card. This Card is
issued for MUDRA scheme only.

(vii) Master Debit Cards

Bank introduced Master Debit Card in classic variant, an international co-brand of
MasterCard in January 2014. This Debit Card can be used in ATM & POS network
anywhere around the world. This card can be issued to all Customers under any category
of account types Savings, Current.

Salient Features
These Debit Cards can be used on any Banks’ ATMs for withdrawing cash and used at
POS and E-commerce channels for making merchant and online payments. Cardholder
can avail below facilities using Debit Cards:
 Cash Withdrawal/Bal enquiry/ Mini statement/ PIN Change in ATMs
 Direct Tax payment through ATM
 Aadhaar seeding through ATM
 OD facility for PMJDY customers through ATM
 Mobile Banking registration through ATM
 POS transactions at merchant establishments for purchases
 Online bill payments and ticket bookings (e-commerce)

Facilities Available on use of RuPay or Master Debit Card

 These cards have a daily ATM cash withdrawal limits of Rs.25000/- per day.
 A separate daily limit of Rs. 1, 00,000/- is available for POS + e-commerce
transactions.
 DIGITAL
SERVICES

VII. DIGITAL SERVICES

(I) SMS Banking

Registered Retail users of PsbOnline can bank with Punjab & Sind Bank by sending text
messages (SMS) in predefined formats (given in below table). Please note that users need
to subscribe for SMS Banking before using this feature. Users can subscribe for SMS
Banking in one of following two ways:
 If you are applying for PsbOnline first time, opt for "SMS Banking" service
while submitting PsbOnline application Form R-I.
 If you are already registered for PsbOnline then submit "SMS Banking
Registration" request by login into your PsbOnline account. This request is available
under "Requests" menu.
Obtaining SMS Banking Password
Once users are subscribed for SMS Banking, they can generate (set) their SMS Banking
Password under "Preferences" menu after login into PsbOnline. This SMS Banking
Password is required while sending text message.
Users can do following using SMS Banking:

Sr.N SMS Banking Format of Sending Text Message

o. Feature
1. Get account balance PBAL Account-Number SMS-Banking-Password (e.g.
PBAL 00001000001011 1234)
2. Get last 3 PTXN Account-Number SMS-Banking-Password (e.g.
transactions PTXN 00001000001011 1234)
3. Cheque status inquiry PCHQ Cheque-Number Account-Number SMS-Banking-
Password
(e.g. PCHQ 350161 09291000000021 1234)
4. Change your SMS PPWD New-Password Old-Password
 Password (e.g. PPWD 5678 1234)

Send text message to 9773056161 & 8082656161.

Card Block Facility Through SMS Banking

For blocking your Debit Card by simple sending an SMS. All you need to type the
following text and send an SMS to 9223815844 from your registered mobile number -
LOST <space> last 4 digits of your card number
eg: LOST 1234
(or)
LOST <space> your 14 digits account number
eg: LOST 123456789XXXXX
You will receive an acknowledgement on your registered mobile number confirming you
the status of the request. Please note that this service is available only for PSB
cardholders who have registered their mobile number with the Bank. Kindly
register/update your mobile number with the Bank for more services and SMS alerts.
Email address for Card Blocking: operations[at]fss[dot]co[dot]in
(II) RTGS/NEFT

The Bank offers its customers instant transfer of funds to other banks (Inter Bank). This
is made possible through Real Time Gross Settlement (RTGS) System, which is an
online system set up, operated and maintained by Reserve Bank of India to enable funds
settlement on real-time basis across banks in the country.
The RTGS service window for customer's transactions is available from 9.00 hours to
16.30 hours.
Days Customer Interbank
Transaction Transaction

Regular days including Saturdays, except Second 09:00 hours to 09:00 hours to
and Fourth Saturdays of the Month 16:30 hours 19:45 hours

Minimum / maximum amount stipulation for RTGS transactions

The RTGS system is primarily for large value transactions. The minimum amount to be
remitted through RTGS is Rs.2 lakh. There is no upper ceiling for RTGS transactions.
At present this facility is available at the following branches whose IFSC codes are also
mentioned alongside.

RBI has introduced this funds transfer systems called RBI-NEFT System.
This is an Inter-bank electronic funds transfer system to facilitate an efficient, secure,
economical, reliable and expeditious transfer of funds and clearing in the Banking sector
in India.
The account holders with the branch can use the NEFT facility which is available
between all the Cities and the designated branches of Banks in India.
NEFT settlement takes place in every half hour, 23 times a day during the week days
including Saturdays, except Second and Fourth Saturdays of the Month (NEFT Batches
start at 8.00 am, 8.30 am, 9.00 am, 9.30 am, 10.00 am, 10.30 am, 11.00 am, 11.30 am,
12.00 noon, 12.30pm, 1.00 pm, 1.30 pm, 2.00 pm, 2.30 pm, 3.00 pm, 3.30 pm, 4.00 pm,
4.30 pm, 5.00 pm, 5.30 pm, 6.00 pm, 6.30 pm and 7.00 pm)
 No Minimum or Maximum amount stipulation for NEFT transactions
 At present this facility is available at the following branches whose IFSC codes
are also mentioned alongside.

(III) Mobile Banking

Mobile Banking Services - PSB mPay

PSB mPay is a user-friendly, safe, and easy to use mobile banking application which
provides various services to the customers of Punjab and Sind Bank. It comes with the
following features
 Balance inquiry
 Mini statement
 Immediate payment service(IMPS)
 Intra- bank fund transfer
 Inter- bank fund transfer (through NEFT)
 Cheque status
 Stop cheque
 ATM/ branch locator
 Bill payment facility
 Mobile recharge
 Temple donation
 DTH recharge
Fund Transfer Limit through Mobile App is Rs 25,000 per Transaction and Rs
50,000 per day.

(IV) Point of Sale

A point of sale terminal (POS terminal) is an electronic device used to process card
payments at retail locations. Its major participants are as under:
 Acquiring Bank: The Bank which has installed the POS terminal at the merchant
location.
 Card Network: RuPay/Visa/MasterCard, etc. (Transaction routing and settling
agency)
 Customer: Card Holder
 Issuing Bank: The Bank which has issued the Card to the customer.

Type of Transactions:
 ON-US Transaction: Where the issuing and acquiring bank are the same entity.
 OFF-US Transaction: Where the issuing and acquiring bank are different
entities.

(V) Bharat QR Code

National Payment Corporation of India (NPCI) has also launched its own QR code
solution names Bharat QR Code. MasterCard and Visa to have a common Quick
Response (QR) code-based payments solution to help shops across India accept
electronic payments without a card swipe machine.
QR code or Quick Response code is a two-dimensional machine-readable code that is
made up of black and white squares. These can be read by the camera of a smartphone.
As part of a multi-pronged push towards a cashless society, the Indian government has
collaborated with RuPay, Mastercard and Visa, the three mobile payment providers in
India, to adopt a standard Quick Response (QR) code called as ‘Bharat QR’.
Bharat QR Code functionality is similar to transaction process through POS Terminals.
The merchants who are not interested to maintain the POS terminal and pay the rent, but
want to make available similar payment option to their customers for payment of the
Goods and services through their Mobile App. can avail Bharat QR Code facility.
Salient Features:
 No Rentals
 No maintenance Cost
 No Installation Cost
 Immediate installation of Bharat QR Code functionality without any cost.
 Helpdesk/email for resolving the issue same as POS
 No hidden Cost
 The transaction proceeds will be credited to Merchant account on the next
working day.
 MDR same as of POS.

(VI) Unified Payment Interface

BHIM PSB is a Unified Payment Interface App launched by Punjab and Sind Bank.

Unified payment Interface (UPI) is a single interface across all payment systems
developed by National Payment Corporation of India (NPCI). It is a platform where
customer can link any bank account maintained with different banks under single UPI
Application, by using his registered mobile number and transact through these accounts
24*7 in a hassle free manner.
UPI allows users to transfer money between any two parties via smart phone through a
payment identifier like Virtual Payment Address (VPA) without mentioning the details
of your Bank account.

The different modes for transferring funds using BHIM PSB are:
 Payment through Virtual Payment Address (VPA)
 Payment through Account Number and IFSC
 Payment through Mobile Number and MMID
 Payment through Aadhaar Number
 Payment through Aadhaar Number and IIN
 Collect / Pull money through Virtual Payment Address
 Payment through UPI QR Code
 Payment through Bharat QR Code
To avail UPI facility, User need to create a virtual Payment Address (VPA) by entering
the word/character/name/number of his choice. VPA format of PSB is name@psb. One
virtual address can be linked to multiple Bank accounts. Also one account may have
multiple virtual address. You only have to select your primary account which will be
default account to receive payments for particular Virtual payment address.
User may also create multiple VPA post login into the APP.
 After VPA creation, next step is to link your bank account with VPA and generate your
UPI PIN of 6 digit by validating your debit card details. User can add any bank account
where his mobile number is registered.
Once linked, just quote your VPA instead of account number and IFSC to make or receive
payments.
User may also collect money by sending collect request to other user using his/her VPA.
UPI QR Code and Bharat QR Code functionality is also available in the App. User can
just Scan QR Code generated by any UPI App OR Bharat QR Code and Pay the money.
User may also generate their own UPI QR code to receive payments.

Features of BHIM PSB

 BHIM PSB App use two factor authentication. At the time of registration your
device binding shall be done at server level.
 All PSB as well as Non PSB customer can use BHIM PSB App to send, receive or
make payments to anyone.
 User can add multiple bank accounts under BHIM PSB Application.
 User can transfer money using Virtual Payment Address (VPA) to any bank
account.
 User can add the beneficiaries just by entering his account detail or VPA
 Fund transfers are instant, 24*7, 365 days and absolutely free of cost and take
place in a completely safe and secure manner.
 User can also check the balance of their linked accounts
 User can make merchant payment by just entering UPI PIN.
 User can also make payment through UPI QR Code and Bharat QR Code by Scan
and Pay option.
 User can collect payment by sharing UPI QR Code generated through BHIM PSB
App.
 User can also block VPA and report SPAM too.
So download BHIM PSB App and avail seamless fund transfer facility through any bank
account.

(VII) Bharat Bill Payment System

Bharat Bill Payment System (BPPS) eases the payment of bills and improves the
security & speed of bill pay. The service is available in multiple payment modes, online
and through a network of agents. An instant confirmation is generated for the bill
 payments. The BBPS will transform the society from cash to electronic payment system,
making it less dependent on cash .Currently you can pay bill for Utility (Gas, electricity,
water, DTH) and Telecom billers.

(VIII) Retail Internet Banking

Retail banking, also known as consumer banking, is the provision of services by

a bank to the general public, rather than to companies, corporations or other banks, which
are often described as wholesale banking. Banking services which are regarded as retail
include provision of savings and transactional accounts, mortgages, personal loans, debit
cards, and credit cards. Retail banking is also distinguished from investment
banking or commercial banking. It may also refer to a division or department of a bank
which deals with individual customers.
In the U.S., the term commercial bank is used for a normal bank to distinguish it from
an investment bank. After the Great Depression, the Glass–Steagall Actrestricted normal
banks to banking activities, and investment banks were limited to engaging capital
market activities. That distinction was repealed in the 1990s. Commercial bank can also
refer to a bank or a division of a bank that deals mostly with deposits and loans from
corporations or large businesses, as opposed to individual members of the public.

(IX) Corporate Internet Banking

Corporate banking is the tailor-made financial services that financial institutions offer to
corporations in the context of corporate financing and raise capital.It is a specialized
division of a commercial bank that offers various banking solutions, such as credit
management, asset management, cash management, and underwriting to large
corporations as well as to small and medium-sized enterprises (SMEs).

Commercial banks focus on business banking as it is one of their major sources of profit
and assign specialized finance professionals, able to assist corporations to meet their
business objectives. Unlike what many people think, business banking is completely
different than investment banking; however, the terms are often used interchangeably.

(X) Aadhaar Pay

 Customer does not require a smart phone/Debit/Credit Card

 Only Merchant has to have Smart phone, STQC certified biometric device for
using the Aadhaar Pay App.
 Cashless transaction using Aadhaar number.
 No transaction fee for both merchant and customer.
 Service available for 24x7 hours
 Per Transaction limit is Rs.2000/-.

Online Services
VIII. Online Payment

(I) Payment of Excise and Service Tax

Punjab & Sind Bank offers on-line facility for Service Tax and Excise Duty Payment.
The facility can be availed by customer of Punjab & Sind Bank having Internet Banking
facility. The customers must be registered with Department of Central Excise and
Customs.
Using this facility, the customers can make payments at any time of the day. The cut off
time is till 12.00 midnight on normal working days, The payments made after the cut-off
time will be accounted as next working day's receipts.

(II) Online Direct Tax Payment

Punjab & Sind Bank's Internet Banking Service (PsbOnline) facilitates you to make
online payment of Direct Taxes. You can make online payment of following type of
Direct Taxes:
 Income tax & Corporation Tax.
 Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth
Tax, Expenditure Tax /Other direct taxes & Gift tax.
 Banking Cash Transaction Tax and Fringe Benefits Tax.
 Tax Deducted at Source / Tax Collected at Source (TDS/TCS) from corporates or
non-corporates.

(III) Online CST/DVAT Payment

Punjab & Sind Bank facilitate you to make payment of On Line CST/DVAT
 Central Sales Tax - CST
 Delhi Values Added Tax (DVAT)
For Login Id (TIN/Dealers) Details Please contact to Sales Tax Department or
Visit www.dvat.gov.in
(IV) Donations through Debit Cards for PMNRF

Dear Card holder,

Government of India, on Prime Minister's National Relief Fund (PMNRF) has facilitated
donations online through Debit cards to render immediate relief to families of those killed
in natural calamities like floods, cyclones and earthquakes etc. and to victims of the
major accidents and riots.

(V) Debit Freeze Account

Dear Account holder,

Punjab & Sind Bank is happy to announce you the launch of service to debit freeze your
account by simple sending an SMS. To debit freeze your Account, all you need is to type
the following text and send an SMS to 8828837411 from your registered mobile number -
BLOCK <space> your 14 digits account number
eg: BLOCK 123456789XXXXX
You will receive an acknowledgement on your registered mobile number confirming you
the status of the request. Please note that this service is available only for PSB account
holders who have registered their mobile number with the Bank. Kindly register/update
your mobile number with the Bank for more services and SMS alerts.
Additional Services
IX. Additional Services

(I) Non-Fund based Product and Services

Punjab & Sind Bank offers non fund based products to our clients as follows:-

• Letter of Credit
We offer import as well as domestic Letter of Credit facility to our clients for
procurement of goods on DA/DP basis as per their needs at very competitive rates.
Considering our international correspondent relationship arrangements, our clients enjoy
market acceptability and comfort in business deals.
• LC Advising / Confirming Services
In case of Letters of Credit received by our clients, we offer LC advising as well as LC
confirmation services under our correspondent relationships with domestic as well as
international banks.
• Bank Guarantee
We offer Bank Guarantee facility to our clients guaranteeing their performance / financial
obligations in the domestic as well as international market.
 Letter of Comfort for availing the Buyers Credit (FBG)
We issue Letter of Comfort to enable our clients to avail Buyers Credit from Overseas
bank/ FIs for procurement of Goods or Fixed assets.
• Co-acceptance facilities
Sometimes in business deals on credit basis, buyers are required to offer adequate
comforts to the sellers such as bank guarantee or co-acceptance of bills by the bankers.
We can offers co-acceptance of bills facility to the top rated clients.
• Solvency Certificate
We provide Solvency Certificate to our clients in case it is required for providing to
Government authorities, other corporate in business deals / bids etc.
• Credit Reports
We provide Credit Reports on our clients to other banks/FIs and we also obtain Credit
information required by our clients on their counter parties, through our correspondent
relationship.

(II) Base Rate & BPLR

Interest rates applicable for domestic credit (Commercial & Institutional Advances)
Base Rate & BPLR::
Rate (per annum) w.e.f. 21/04/2018
Base Rate 9.70%
BPLR 14.00%

(III) Debt Restructuring

 Debt Restructuring Mechanism for Small and Medium Enterprises (SMEs)
For improving flow of Credit to Small and Medium Enterprises, a debt restructuring
mechanism for units in SME sector is implemented by the Bank which are as under:
Definition of SMEs
SMEs as defined in RPCD Circular No. RPCD.PLFNS.BC. 31/ 06.02.31/ 2005-06 dated
August 19, 2005, is reproduced below :
"At present, a small scale industrial unit is an undertaking in which investment in
plant and machinery, does not exceed Rs.1 crore, except in respect of certain
specified items under hosiery, hand tools, drugs and pharmaceuticals, stationery
items and sports goods, where this investment limit has been enhanced to Rs. 5
crore. A comprehensive legislation which would enable the paradigm shift from
small scale industry to small and medium enterprises is under consideration of
Parliament. Pending enactment of the above legislation, current SSI/ tiny industries
definition may continue. Units with investment in plant and machinery in excess of
SSI limit and up to Rs. 10 crore may be treated as Medium Enterprises (ME)."

Eligibility criteria
These guidelines would be applicable to the following entities, which are viable or
potentially viable :
 All non-corporate SMEs irrespective of the level of dues to bank.
 All corporate SMEs, which are enjoying banking facilities from a single bank,
irrespective of the level of dues to the bank.
 All corporate SMEs, which have funded and non-funded outstanding up to Rs.10
crore under multiple/ consortium banking arrangement (for outstanding of Rs.10 crore
and above, guidelines are being issued separately).
Accounts involving willful default, fraud and malfeasance will not be eligible for
restructuring under these guidelines.
Accounts classified by bank as "Loss Assets" will not be eligible for restructuring.
In respect of BIFR cases bank should ensure completion of all formalities in seeking
approval from BIFR before implementing the package.
Viability criteria
The units to be considered for restructuring should be viable or becoming viable in 7
years and the repayment period for restructured debt not exceeding 10 years. For
establishing viability Technical Viability Study has to be undertaken by an In House
Group.

D Procedure
 The restructuring would follow on receipt of a request to that effect from the
borrowing units.
 In case of eligible SMEs which are under consortium/multiple banking
arrangements, if our bank has the maximum outstanding, it has to work out the
restructuring package, along with the bank having the second largest share.
 The above guidelines will be implemented with prospective effect.
The decision with regard to restructuring/rescheduling will be taken by the competent
authority of the bank and will be final.

Data Analysis & Interpretation

 Finding & Recommendation

Findings:
 The awareness of the products and services on offer is not much to the customers
which leads to a constraint in enhancing Banker – Customer Relationship.

 There is a huge scope of small consumer loans keeping in view a large number of
employees of so many commercial establishments working in the India.

 Most of the staff has been found in rendering services in a very personal manner
which was very hearting to note.

Recommendation:

 Banker – Customer Relationship could be enhanced through more of interaction

with customers in regards to their needs and there by satisfying it by offering the
relevant products or services.

 Although a very large number of pamphlets etc. with details about the products &
Services offered have been printed & distributed but still it has to be seen that
they reach customers both existing and prospective and hit in right way to their
minds.

 Professional training should be rendered to the staff to successfully establish a

healthy Banker – Customer Relationship and environment within the Bank for the
good health of the branch as well as the entire Banking Sector.
 Bibliography

 www.google.co.in

 https://en.wikipedia.org./wiki/Punjab_%26_Sind_Bank

 www.psbindia.com

 www.cright.psb.com

 https://intranet.psb.co.in

 Various Circulars/Circulatory Letters/ Guidelines issued by various

departments of PSB.