Study Material 2018 Czc-Bhopal

ALL INDIA ORIENTAL BANK OFFICERS’ ASSOCIATION
(AFFILIATED TO AIBOA)
Central Office : C/O Oriental Bank of Commerce
Corporate Office: Plot No. 5, Sector – 32,
Institutional Area, Gurgaon -112 001
_____________________________________________________________
BHOPAL/2018/ 17-04-2018
Dear Comrades,
Study Material – Promotion Test 2018
We are pleased to present the Study Material prepared by Central Zone Committee (Bhopal) for
the upcoming test and interview. It is indeed a splendid team work exhibited by members of Central
Zone Committee, Bhopal, in the preparation of this miniature presentation in the shape of booklet, for
promotion to higher grade. We have found that the contents included in the booklet finds a wide
coverage of latest/ current as well as basic banking know how. This finest presentation in booklet form
is going to help the candidates in updating their knowledge as well as for facing the written
exam/interview for promotions with confidence.
We look forward to the best use of this booklet in your hand so that the purpose of the Association is
fulfilled and your progress remains unhindered. Although they have taken due care while compiling this
booklet, members are advised to refer the different guidelines issued from time to time.
While we congratulate the Central Zone Team for their relentless efforts, we wish the aspiring
candidates all the success.
With best wishes,
Yours comradely,
R.L. Grovar D.K. Pauddar S. S. Shishodia
Chairman President General Secretary
Our beloved institute OBC Zindabad

Workers unity Zindabad
INDEX
Sl. Page
TOPIC
No. No.
1 OBC at a Glance 3
2 Important Banking Indicators 4
3 Important point from Bank’s Circulars 5
4 Gist of Loan Policy 25
5 Retail Credit Products 47
6 Deposit Products (SB/CA/TD) 73
7 IT Products 89
8 Recovery & NPA Norms 130
9 Priority Sector 156
10 CGTMSE/CERSAI/ CIBIL ETC. 162
11 MSME Credit Products 179
12 Some Important Points / Questions 204
All India Oriental Bank Officers’ Association (Study Material for Promotion– 2018) (updated till 31.03.2018) 2
OBC AT A GLANCE
Our Bank's
1. VISION STATEMENT
“TO BE A CUSTOMER FRIENDLY PREMIER BANK COMMITTED TO

ENHANCING STAKEHOLDER VALUE”
2. MISSION STATEMENT
• Provide quality, innovative services with state-of-the-art technology in line with

customer expectations.
• Enhance employees’ professional skills and strengthen cohesiveness.
• Create wealth for customers and other stakeholders.
Managing Director & CEO Shri Mukesh Kumar Jain

Executive Director Shri Himanshu Joshi
Chief Vigilance Officer Shri S.K.Goyal
Foundation Day 19th February

Nationalized on 15 April 1980
Share holding (Central Govt.) as on Dec,17 58.38%
FPIs/NRIs 8.49%
Banks/Financial Institutions and insurance Cos.
Mutual Funds/UTI & Trusts 15.25%
Others 7.58%
10.30%
Merger of Global Trust Bank 14.08.2004
No of Branches as on Dec, 2017 2381
No of ATMs as on Dec, 2017 2630
PRESS RELEASE HIGHLIGHTS OF FINANCIAL RESULTS FOR QUARTER ENDED 31st

DECEMBER’17
(Rs in Crore)
Parameters 31-Dec-2017 31-Dec-2016 % Growth (Y-o-
Y)
Business Mix 3,78,839 3,59,103 5.50%
Total Deposits 2,16,327 2,10,657 2.69%
Total Advances 1,62,512 1,48,446 9.48%
Retail Term Deposits (less 95,631 90,065 6.18%
than Rs 1.00 Crore)
Retail Advances 24,302 18,387 32.17%
• Advance has grown by 9.48% on Y-o-Y basis while credit risk weighted asset have aϖ
negative growth of 3.04% during the same period due to credit optimized growth.
• Capital Adequacy of the Bank under BASEL III stood at: 10.37% (Tier I: 7.56%, Tier II:ϖ
2.81%) & CET 1 stood at 5.56% for the Q3 (FY’17-18).
• Government of India had announced on 24.01.2018 that Bank shall be infused with Capital
of Rs 3571 crores.
• CASA (%) improved by 55 bps to 29.29% Q3 (FY’17-18) from 28.74% Q2 (FY’17-18).
• Cost of Deposit improved by 78 bps during Nine months (FY’17-18) to 5.70% compared to
6.48% for the Nine Months (FY’16-17).
• Cost to Income improved by 357 bps during Nine Months (FY’17-18) to 41.85% comparedϖ
to 45.42% for Nine Months (FY’16-17).
• Non Interest Income during Nine months (FY’17-18) increased to Rs 2262.95 Crore
compared to Rs 2174.54 Crore for the Nine Months (FY’16-17).
• Operating Profit for the quarter stood at Rs 742.82 Crore.
• Net Loss for the Q3 (FY’17-18) stood at Rs 1985.42 Crore due to higher provisioning.
• Net Interest Margin (NIM) for the quarter stood at 1.95%.
• Gross NPA for the quarter stood at 16.95% & Net NPA at 9.52%.
• Total Recovery and up gradation during Nine months (FY’17-18) increased to Rs 2333 Crore
compared to Rs 1557 Crore for the Nine Months (FY’16-17).
• Provision Coverage Ratio improved to 62.09% during Q3 (FY’17-18) in comparison to
59.75% Q2 (FY’17-18) and 49.44% Q3 (FY’16-17) respectively.
• Total Delivery Channels of the Bank (as on 31.12.2017) stood at 5011 (2381 Branches and
2630 ATMs).
• Increase in usage of ADC (Alternate Delivery Channels) from 60.53% Q2 (FY’17-18) to
61.75% Q3 (FY’17-18).
NEW INITIATIVES:
• Housing Loans with repayment period upto 40 years

• Car Loans with extended repayment period of 10 years.
• On Boarding on TReDS Platform - Bill Discounting at Competitive pricing to MSME Customers
• Bharat Bill Payment System – Access through Internet Banking Account
• Oriental GST Support for Exporters and other Customized MSME Schemes
Important Banking Indicators

Our Base Rate 09.45% (w.e.f 03/10/2017)
Our P L R 14.75 % (w.e.f.14/05/2012)
Bank Rate 06.25% (w.e.f. 02/08/2017)
Repo Rate 06.00% (w.e.f. 02.08.2017)
Reverse Repo Rate 05.75% (w.e.f.02/08/2017)
CRR 04.00% (w.e.f. 09/02/2013)
SLR 19.50% (w.e.f. 14/10/2017)
Marginal Standing Facility 06.25% (w.e.f 02/08/2017)
Marginal Cost of Funds Based Lending Rates
MCLR (OBC) w.e.f. w.e.f w.e.f w.e.f

11.08.2017 11.09.2017 11.12.2017 12.03.2018
Overnight 8.10% 8.10% 8.10% 8.10%
MCLR
1 Month MCLR 8.20% 8.20% 8.15% 8.20%
3 Month MCLR 8.25% 8.25% 8.20% 8.30%
6 Month MCLR 8.35% 8.30% 8.30% 8.45%
1 Year MCLR 8.45% 8.40% 8.35% 8.50%
IMPORTANT POINTS FROM BANK'S CIRCULARS
(FOR PERIOD 2017-18)
• Cir No. CS&P/60/2017-18/773 – Opening of Separtate Account or Escrow AC as

per provision of RERA (The Real Estate (Regulation & development AC, 2016) -
The RERA bill was passed by Rajya Sabha on 10-03-2016 and by Lok Sabha on 15-03-2016.
The Act was published y Ministry of Law & Justice, Govt. Of India thorugh Gazetter
Notification dated 26-03-2016. ACT has been implemented wef 01-05-2017. The Act makes
it mandatory for all commercial and residential real estate projects, where the land is over
500 sq.mtrs or eight apartments, to register with RERA. One of the provision in the ACT is
thatg, the promoter/ developer has to maintain a Separtate Account with a Scheduled Bank
for every project wherein 70% of the money received from the buyers shall be deposited.
Such furnds can only be used for construction and landcost. For this purpose our bank
formulated a scheme CA123 with the features (1) No minimum balance (2)No cheque book,
ATM, I-Bank facility.
• Circular No. IBD/ 19/17-18/231 Date: 27.06.2017 - REG: ADDITIONAL CAPITAL

PROVISION FOR UNHEDGED FOREIGN CURRENCY EXPOSURE OF BORROWERS -
As per RBI directives, banks are required to calculate incremental provisioning and capital on
quarterly basis based on the estimated losses on account of un-hedged Forex Exposure
(UFCE) of borrower clients as explained in the Bank’s Policy on unhedged Foreign Currency
Exposure.
• Cir No. Ho. AGriBusiness & FI 49:2017-18:674 dt. 20-11-2017 – Oriental Scheme
for Financing Agri land purchase - Eligibility amended - (a) Small and marginal
farmers i.e. those whoe would own max. Of 2 hectare land including the land to be
purchaswed. (b) Share cropers/ tenant farmers cultivating upto 2 hectare. (c) The total land
holding of the borrower after the purchase of the land under the scheme shoudl not exceed
2 hectatare or equivalent. Margin – (a) upto 1.00 lac – NIL (b)over 1.00 lac – 15% (MSME
Cluster Head/CMO Classic can reduce the margin upto 10%) (Note – where advance
subhsidy is available, the same should be treated as margin and no further margin money
should be stipulated unless subsidy falls short of requisite margin. MIS Code – Scheme
TL751; Free Code 10 – AG51. Refinance – NABARD would refinance 90-100% to banks for
the loan disbursed
• Cir No. HO/DBD/2017-18/16/889 dated 20-01-2018 – Guidelines for protecting

Cards & PINs against misuse -
1. As per PCI-DSS guidelines, the card numbers need to be secured & appropriately masked
in all documents/ communications. Accordingly, Digits 7-12 of the card number should be
masked in all your documents such as registers, chargeback forms, emails etc. For eg.
Card No. 4591810000000000 shall only be mentioned as 459181xxxxxx0000.
Concurrently, Account No. should also be mentioned with such Card No. for easy
customer identification.
2. Cards and PINs received at branches should be handed over to the respective customers
immediately after delivery at branches by contacting them.
3. Debit Card should not be made active till it is delivered to respective customers.
4. Cards not delivered by the courier due to change of address or any other reason etc.
shall be returned by the courier to respective branches.
5. On receipt of such undelivered/returned cards at branches, the branches must
immediately HOTLIST such cards in IDEAS software and also write or stamp "HOT-
LISTED" on the envelope. Such cards remain in the custody of the branch until delivered
to respective customers as per above procedure.
6. Respective branches must send written communication to respective customers and call
them for informing them about the receipt of the card and requesting them to collect the
same from the branch.
7. In the above case, customers has to collect the PINs from their branches and have to
use the same within 90 days from the date of Issue, after which it shall be hot-listed for
security reasons, as per Bank's rules.
8. Customers should be educated and encouraged to use their Cards more often and
change their PIN regularly, as Cards shall be Hot-listed if not used for one year at a
stretch by customer.
9. Branches must make sincere efforts to deliver cards to respective customer at the
earliest. In any case, there should not be any card lying undelivered to customer beyond
90 days from the issuance date of the card.
10. Branches must maintain proper record of cards 'Delivered' and "Not Delivered" to
customer. Details of such "Not delivered" card lying at branch must be submitted by
respective branches to their Cluster Monitoring Office (BB/ Classic) for further advice &
actions.
11. The ATM and the ATM site must be physically examined carefully on daily basis by the
Branch incumbent or by designated officials to ensure that no devices for card or cash
trapping are glued or taped to the card reader or cash dispenser and no 'extra' cameras
beyond the basic ATM security camera is mounted.
• Cir No. HO/LCC/2017-18/46/734 dated 08-12-2017 – Guidelines for protecting

Cards & PINs against misuse – Bank Guarantees issued in favour of President of
India – The field functionaries are to ensure that in respect of the BG’s (issued in favour of
President of India) – the correspondence is invariably addressed to the concerned Govt.
Departments and not to the office of the President of India. Any non compliance in this
regard shall be viewed seriously and appropriate action shall be taken.
• Cir No. HO/BB/116/2017-18/898 dated 25-01-2018 – AC opening through
Document Management System (DMS) – In order to further strengthen the overall
process of scanning, exporting the AOF/KYC doc. By BOs & AC opening process by CASA
Back Office has been development as part of Document Management System (DMS) which
is work flow system using Omni Scan& Omni Flow application Software Modules.
• Cir No. HO/DBD/17/2017-18/896 dt 24-01-2018 – Launch of : “Bharat Bill Pay System”
- The Bharat Bill Payments' system is a Reserve Bank of India (RBI) conceptualized system
driven by National Payments Corporation of India (NPCI). It is a one-stop payment platform
for all bills providing an interoperable and accessible "Anytime Anywhere" bill payment
service to all customers across India with certainty, reliability and safety of transactions.
Our Bank has been granted In-principle approval under 'Payment and Settlement Act 2007'
to operate as BBPOU (Bharat Bill Payment Operating Unit) vide RBI Letter no.
DPSS.CO.AD.No.3013/02.27.004/2015-16 dated June'2016. The key features of Bharat
BiliPay are enumerated as under:-
Interoperable Bharat BillPay will be an integrated platform connecting banks I and non-banks in bills
aggregation business, Billers, payment service providers and retail bill outlets
Accessible Facilitate seamless payment of bills through any channel: Digital and physical
Cost-effective Most cost-effective for entire ecosystem - Flat fee charge vs current ad valorem
Integration BBPOUs will have to connect only to BBPCU (NPCI) to get access to all the billers. Utility
companies just need to connect to maximum two BBPOUs to enable all customers to pay
bills
Complaint Standardised system to handle customer grievances for both ON-US and OFF-US
Management transactions
Dispute Facilitate BBPOU's to raise and resolve disputes relating to transactions that have passed
Management through the BBP system.
Clearing & Multiple Clearing & Guaranteed Settlements between different parties, standardised TAT.
Settlement
Standardisation Standardisation of processes for entire Bharat BillPay ecosystem.
Brand Connect Single and trusted brand connect and Bharat BillPay Assurance.
Our bank is also a participant as BBPOU and currently providing Bill payment services for its
customers who are enabled for Internet Banking.
• Cir No. HO/cS&P/25/2017-18/287 date 10-07-2017 – Service Charges – (1) Grace

period for levying minimum balance charges (2) Cash Handling charges on the
basis of currency p[ieces tendered -
Type of chargesd Revised Guidelines
Non-maintenance of minimum In case of newly opened account (SB & CA), the charges
balance shall be calculated and levied for non-maintenance ' of
average minimum balance, folio charges etc., from 1sl
day of the next calendar month instead of same month
in which the account is activated (i.e. debit allowed) in
the system
Cash handling charges in addition to amount of Rs. One Lac, the charges will
also be calculated on the basis of number of currency
notes irrespective of denomination deposited by the
customer. As such revised criteria for levying
handling charges are as below:- Upto Rs.1.00 lac
or max. 1000 number of currency notes of different
denominations- Free (per day)
Amount above Rs.1.00 lac or above 1000 number of

currency notes of different denominations taken
together shall be charged @10 paisa per piece. The
said charges will be effective from 16th August
2017. Kindly display notice at prominent place for
customer awareness
• Cir No. HO:AB&FI:52 -2017-18:679 date 20-11-2017 – Corrigendum-Modification/ Revised

Guidelines of Credit Guarantee Scheme for Micro and Small Enterprises- CGTMSE
Category Maximum extent of Guarantee where credit facility is
Above Rs. 50 Lakh upto Rs. 200 Lakh
Micro Enterprises 50% of amount in default subject to a maximum of Rs.100 Lakh.
Women entrepreneurs/ Units located in North East
Region (incl. Sikkim) other than credit facility upto
5 lakh to micro enterprises
All other category of borrowers
• Cir No. HO:AB & FI:08:2017-18:167 02, June, 2017– CGTMSE- Major Guidelines and
Work flow in new organizational setup
Sl Nature of Work Action Required
no.
1 Request for lodgement of Immediately inform to CGTMSE cell on prescribed format i.e. Annexure-I by CMH Classic /MSME cluster head
fresh application on CGTMSE after sanction and before disbursement of loan
portal
2 Payment of DAN amount for The fees shall be paid immediately after generation of DAN to ensure coverage by CMO classic and MSME -
coverage of account cluster. On receipt of the Demand Advice, the requisite guarantee fee as indicated in the Demand Advice is to be
remitted in current account No. 00161131000779 at sol id 1237 which has been opened at B/O sector-32 Gurgaon
for the purpose, by the CMO classic and Cluster MSME to CGTMSE Cell within stipulated time limit.
3 Request for payment of As per extant guideline of CGTMSE, a single payment for ASF/AGF is being made by CGTMSE cell HO to CGTMSE
annual ASF/AGF on demand. Trust "in advance" basis. A current account No. 00161131000779 at sol ID: 1237 has been opened at B/O: Sector-
32, Gurgaon for the purpose. Every year , all the CMO MSME and CMO classic have to remit the consolidated
entry of ASF/AGF for the cluster/branches falling under their jurisdiction in the above mentioned account as
per the demand raised for guarantee covered accounts by CGTMSE.
4 Request for marking of NPA Within 15 days of classification of loan as NPA by CMH Classic /MSME cluster head.
on CGTMSE portal within time
limit.
5 Request for up gradation of Within 15 days of up gradation of loan as NPA by CMH Classic /MSME cluster head.
NPA accounts in the CGTMSE
portal.
6 Waiver of legal action for loan The initiation of legal proceedings as a precondition for invoking of guarantees can be waived for credit facilities
sanctioned upto ?50,000/- upto ? 50,000/- sanctioned on or after 01.01.2013, where the filing of legal proceedings shall be waived
by competent authority. The RRL Cluster & CMO Classic shall recommend for claim lodgment after the waiver of
legal action by the competent authority in such cases.
7 Request for initiation of legallassic/ Recovery & Law cluster shall ensure initiation of legal action as per the policy, as lodgemment of claim can be
action done only after legal
8 Request for lodgment of claim MH classic/ Recovery & Law cluster shall submit the document to CGTMSE Cell HO, immediately after initiation of legal
with in time limit of the action for lodgement of claim (after lock- in period, if applicable)
account.
9 Request for review/ Renewal The CMH classic/ MSME cluster shall send request for renewal at least 15 days before expiry of limit to CGTMSE
of applications in the CGTMSE cell HO.
portal.
10 Request for settlement of In cases where claim has been settled by CGTMSE, the proposal from the borrower is received for settlement for
CGTMSE loan account after his dues and settlement is approved by the respective competent authority, the information is to be submitted to
receiving of claim installment. CGTMSE cell head Office for lodging the same in the portal and remitting the amount to CGTMSE trust.
11 Request for closure of The CMH classic/ MSME cluster/RRL cluster shall send request for closure of accounts to CGTMSE Cell Head
guarantee office for online marking closure of account immediately after closure of account.
12 Subrogation of rights and Under Credit Guarantee Scheme, whereby every amount recovered and due to be paid to the Trust shall be paid
recoveries on account of without delay, and if any amount due to the Trust remains unpaid beyond a period of 30 days from the date on
claims Paid which it was first recovered, interest shall be payable to the Trust by the bank at the rate of 4% above Bank Rate,
for the period for which payment remains outstanding after expiry of the said period of 30 days.
Annual audited Certificate relating to recoveries made post settlement of claims by CGTMSE Remittance made to
trust submitted to CGTMSE Cell head office by CMO classic and CMO Recovery and law for further audit from
central auditor and submit to CGTMSE trust
13 Declaration &Undertaking CMO classic and RRL Cluster have to send the application of lodgment of claim duly signed by Cluster Head/CMO
(D&U) classic Head (Annexure-III) well in time to CGTMSE cell Head office to enable them for lodging the same at the
CGTMSE portal with in time limit
• Cir No. CIRCULAR NO. HO/ RMD/31/2017-18/ 355 DATE: 01.08.2017 –

COMMERCIAL CIBIL - Commercial (Other than Individual) CIBIL report only provides the
details of the credit facilities availed by the borrower from various member Banks/ FIs
registered with CIBIL. Presently, the Commercial CIBIL report does not provide any score or
rank in its report and overall report needs to scrutinized by the field functionaries.
The TransUnion CIBIL has launched CIBIL MSME Rank (CMR)– a credit risk rank for MSMEs.
CMR is developed specifically for MSMEs which are classified based on aggregate exposure
between 10 lakh to 10 Cr
CMR provides a ranking to the MSME based on its credit history data on a scale of 1 to 10,
CMR-1 being the least risky MSME and CMR-10 being the most risky MSME
Our Bank has subscribed for inclusion of CIBIL MSME Rank (CMR) in Commercial CIBIL
report for MSME borrower w.e.f. 01.08.2017. The CMR has been included as additional
feature/information in existing Commercial CIBIL report
The MSME borrower for the purpose of CMR represents borrower availing credit facility from
Bank(s)/ FI(s) aggregate between 10 lakh to 10 Crore. The CMR grade shall be delivered in
the Commercial CIBIL report of applicable borrowers only
Upon extraction of Commercial CIBIL report for MSME borrower (as defined above) w.e.f.
01.08.2017 by our Bank, in addition to existing information, the Commercial CIBIL report will
also include CMR grade (CMR-1 to CMR-10) of the borrower alongwith brief rationale for the
same
To begin with, the CIBIL MSME Rank shall be used as indicative measure only and have not
been linked as threshold for entry level or as determining factor for delegated power/
sanctioning authority of a credit proposal
However, in case of CMR-7 to CMR-10, the Sanctioning Authority shall endeavour to obtain
additional collateral security and Personal Guarantee for such credit proposals
The CIBIL MSME Rank will help the Bank for adjudging the conduct of account of the
existing/ prospective borrower across banking system. However, the Bank’s existing
guidelines in regard to scrutiny of the Commercial CIBIL report shall remain unchanged
All other Bank’s policy in regard to CIC report (CIBIL) shall continue as per existing norms
The Credit Appraising Officials at all levels are advised to record/ incorporate and analyze
the CIBIL MSME Rank grade as part of appraisal note alongwith brief rational enumerated in
the report
• Cir No. CIRCULAR NO. HO/ i&c/2017-18/ DATE: 18.01.2018 - IMPERSONATION

and UNAUTHORISED use of CITI Brand - (1) CITIBANK N.A. has informed that some
third parties are involved in suspected fraud/impersonation and unauthorized use of CRTs
Brand and name for carrying out financial services. (2) It has also been informed that some
accounts have been opened in our bank also using brand name of CITI and doing financial
services to public which are unauthorized (3) In view of above, all the branches/CMOs are
advised to take note of the above and ensure that no account exists using CITI brand
pertaining to financial services and report to Inspection and Control Department. Corporate
Office, Gurugram at Email insp@obc.co.in if any instance is detected.
• Cir No. CS&P/69/17-18/895 date 25-01-2018 – Requirement Company Seal and

PAN for opening an account- (1) "Banks should not seek the common seal in their
account opening form, since it is not a mandatory requirement. Even in those cases, where
the Memorandum of Association and Articles of Association of the company require affixing
of Common Seal, the company shall be allowed to provide the same voluntarily and the
account opening form of the Banks shall not have any such requirement for providing the
company seal" (2) Further, the field functionaries are advised to adhere the recent
Prevention of Money Laundering Second Amendment Rules with regards to obtaining of PAN
at the time of account opening and strictly follow the same.
• Cir No. RMD/ciso/21/17-18/247 date 01-07-2017 – CYBER SECURITY-PETYA

RANSOMWARE - HOW TO AVOID RANSOMWARE ATTACKS
1. Ensure that PC is equipped with Anti-Virus software and is updated with latest
definitions.
2. Don't open attachments in unsolicited e-mails, even if they come from people in your
contact list.
3. Create regular backup of your files (word, excel, pdf files etc) to limit the impact of data
or system loss.
4. Never click on a URL contained in an unsolicited e-mail. In cases of genuine URLs close
out the e-mail and go to the organization's website directly through browser.
5. Keep the operating system third party applications (MS office, browsers, browser
Plugins) up-to-date with the latest patches.
6. Disable remote Desktop Connections, if any
7. Scan the USB drive before its usage
8. Ensure the usage of authorised software's only
9. Disable macros in the Microsoft office documents
10. When visiting a Web site, type the address (URL) directly into the Web browser rather
than clicking a link within an email. Fraudsters often forge
STEPS TO BE TAKEN IF SYSTEM IS FOUND INFECTED
1. Isolate the system by disconnecting from Network.
2. Run Antivirus software
3. Preserve the Data even if it is encrypted.
4. Report the incident to ciso(S)obc.co.in and at isa(a>obc.co.in or nearest Cyber Crime
Cell.
• Cir No.HO/AB&FI/27/2017-18/date 19-08-2017 – Direct Benefit Transfer (DBT) and

Bankers right to set off - The Reserve Bank of India through a communication to IBA has
asked the Banks to forgo right to setoff against deposit accounts opened under DBT (Direct
Benefit Transfer) where subsidies/relief is provided by the government under various
welfare Direct Benefit Transfer schemes. In this regard IBA called a meeting of select Public
and Private sector Banks on 23rd May 2017. In the meeting following consensus was
emerged among the bankers
> Banks are not agreeable to forgo their right to set off as a general rule.
> Banks will consider forgoing their right to set off in specific instances where the
relief/assistance is linked to natural calamities such as flood, cyclone, earthquake etc.
and are as a one-time measure based on the notifications issued by the Central/State
Government.
> Banks are not agreeable to extend the concession to all cases of distribution of
Government subsidy including subsidy routed through DBT, on a regular basis.
> Banks also don't have any specific policy under which banks consider ceding their legal
right to set off.
• Cir No.HO/BB/GBC/103/17-18 date 11-12-2017 – Submission of Digital Life Certificates (

PLC ) through Jeevan Pramaan facility - Ministry of Finance (DFS) vide their letter
No.8/8/2012-BOIII Dt. 06tn of December,2017 informed that Banks are insisting Pensioners
to visit the bank personally for furnishing Life Certificates even when their pension accounts
are linked to Aadhaar Number. Therefore, they have directed that the pensioners may
submit Life Certificate either through the conventional method or availing the DLC
methodology which is a voluntary decision of Pensioner and not to put any inconvenience in
this regard. It may also be ensured that there is no discrimination against those pensioners
who choose to submit the Life Certificate through the conventional means. To further
promote adoption of DLC, Banks may facilitate pensioners who voluntarily offer to have their
Life Certificate submitted online through the Jeevan Pramaan facility and provide necessary
assistance for linking Aadhaar Number with their pension accounts.
• Cir No.HO AB & Fl : 6 3 :2017-18 date 10-01-2018 - Differential Rate of Interest

Scheme - scopes and Coverage – (a) The scheme will be operative in the entire
country.
1.1 Target: Banks should lend under the scheme minimum of 1% of their gross advances as
at the end of previous year.
1.2 In order to ensure that the weaker sections in the rural areas derive maximum benefit
under the scheme and bulk of the advances are not preempted by urban/metropolitan
areas, the banks operating the scheme will ensure that not less than 2/3rd of their
advances under this scheme are routed through their rural and semi-urban branches.
Correspondingly not more than 1/3rd of their credit under the scheme may go from their
urban and metropolitan branch.
1.3 To ensure that person belonging to Scheduled Castes and Scheduled Tribes get their due
share of benefits under the scheme, not less than 2/5th (40%) of the bank credit under
the scheme should flow to eligible borrowers belonging to Scheduled Castes and
Scheduled Tribes.
(b) Eligibility Criteria: The categories of persons enumerated in following para 4 will be
eligible to the benefits of the scheme even if they have not tangible security of any worth
to offer or cannot produce security/guarantee of a well to do party, provided they satisfy
the criteria laid down below:
1. Family income: The ceiling of family income of the borrower under DRI Scheme is Rs.
18000/- per annum in rural areas and Rs. 24000/- per annum in urban and semi-urban areas.
2. He does not own any land or the size of his holding does not exceed one acre in the case of
irrigated land and 2.5 acres in the case of un-irrigated land.
3. Members of Scheduled Castes and Scheduled Tribes are eligible for the loan irrespective of
their land holdings, provided they satisfy the other criteria.
4. He can be helped to rise above his present economic level through a productive endeavor with
assistance from banks, the productive endeavor being such as would become economically
viable within a period of say 3 years.
5. He does not incur liability to two sources of finance at the same time.
6. He works largely on his own and with such help as other members of his family or some joint
partners may give to him and does not employ paid employees on a regular basis.
Explanatory Note:
It is not intended that a borrower should be required to produce documentary evidence to establish
his eligibility under the scheme. It is expected that the officials of the bank at the branch level
would be conversant with the economic and other circumstances of the borrower. They may make
such local enquiries as may be required in each case before sanctioning the loan, bearing in mind
the conditions mentioned in the paragraph.
(C) Terms and conditions of loan: The terms and conditions of loan under the scheme will be as
follows:-
1. Amount of loan will depend on the particular scheme proposed to be financed and should be
adequate to enable the borrower to finance his requirements without having to borrow funds
from another source. It is expected that normally, the maximum amount under the scheme
may not exceed Rs. 15000/- and for housing loan Rs.20000/- per beneficiary.
2. The loan will be admissible in accordance with the specific requirement of the borrower.
3. Requirements of margin money not be insisted upon as the category of borrowers belong to
the weakest strata of society and may not always be in a position to furnish margin money.
4. Rate of interest will be uniformly fixed at 4 percent per annum.
5. Term loan : For the acquisition of fixed assets repayment shall not exceed 5 years, including a
grace period not exceeding two years on the repayment of principal. The repayment schedule
will be worked out in each case having regard to the nature of the activity of the borrower and
the economics of the scheme. In assessing the surplus for the payment of interest and
principal, due allowance should be made for the sustenance requirements of the borrower
himself.
6. The assets purchased with the loan may be hypothecated to the bank. In addition, in
appropriate cases of loans to a homogeneous group of borrowers, group guarantees may be
accepted.
7. The cost of insurance of the assets charged to the banks, if considered necessary, should be
borne by the bank.
8. The banks may consider some suitable initial moratorium in repayment, if so warranted.
9. For installation of Solar Home Lighting system
Institutions: Following institutions will be eligible for credit under the scheme.
Orphanage and Women's Homes where saleable goods are made and for which no adequate and
dependable source of finance e.g. endowments or regular charities, exist.
Institutions for physically handicapped persons pursing a gainful occupation where some durable
equipment and/or continuous supply of raw material is useful.
Note 1: Institutions, for physically handicapped persons, orphanages and women's Homes will be
exempted from income criteria. However, it should be ensured that these institutions utilize he
funds for productive purposes only and not for meeting their normal administrative and
establishment expenses. It is also necessary to verify from independent sources about the
genuineness of these institutions.
Note 2: The term physically handicapped persons, includes mentally retarded persons' also.
Note 3: The maximum amount of borrowers for such institutions will be so calculated that the
assistance per beneficiary does not exceed the ceiling fixed for individuals under the scheme.
Leprosy Affected Persons -general loans for employment Generation
• Cir No.HO/RMD/84/2017-18 date 19-12-2017 – DUE DILIGENCE ETC UPDATED

GUIDELINES -
DUE DILIGENCE –
Format
Observation on Tax Registration/ Tax payments by the borrower such as PAN/ GSTIN/ TAN / Service Tax/
VAT/ Excise Duty registrations (as applicable).
Credentials & antecedents of borrower(s)/ Promoters / Guarantors/ Group company have been
verified from at least two persons.
However following shall be exempted for market reference:
• Central/ State Govt. Departments/ Undertakings / Establishments i.e. Mandi Boards,
Improvement Trusts, Municipal Corporations and Universities etc
• Listed Companies.
In Case of Company/LLP: Audited Financial Statements submitted to the bank have been
compared/verified with the last available financial statement filed with ROC / BSE or NSE (In case of
Listed companies)
Following particular has been incorporated in revised Due Diligence format:
CERSAI search
CREDIT INFORMATION REPORTS BY BANKS

♦ In instances where such CIR as per IBA prescribed format is not provided within 15 days (from the date of
letter sent through registered / speed post) by other Bank(s)/FI(s), the Branch/ Cluster shall obtain SA
Certified statement of account maintained with other Bank/FIs for last 6 months to ensure that the existing
credit facilities are classified as standard regular with them.
• In case information is shared as per exchange of information guidelines under JLA/Consortium/ Multiple
Banking Arrangements, CIR as per IBA guidelines shall not be insisted.
Note: CIR as per IBA guidelines shall be used for all cases other than Transfer/Takeover of Borrowal Account
VERIFICATION & AUTHENTICATION OF THE DOCUMENTS SUBMITTED BY THE BORROWER/

APPLICANTS.
In cases where the borrower is a company/LLP, the financial statements should be verified by the
Branch/C/usfer officials with the Registrar of Companies (ROC) records (through website:
www.mca.gov.in)
The Income Tax Return {\TR-submitted online) of the borrower/ Sole Proprietor/Partner/Promoter Director
/Directors/ Guarantors, in case of all credit proposals includina retail credit proposals, shall be verified bv
j generating the Income Tax Return (ITR) in the presence of the Bank's authorized official. The name of the
authorized Bank official and details of the place and date where Income Tax Return (ITR) was generated shall
be kept on record.
Deleted Revised Format (d1)
Certificate in reference to the Loan Documentation that all documents have been verified from the relevant
sources as per Banks' Guidelines' (Merged with Due Diligence Format)
DUE DILIGENCE (SOP) TO BE EXERCISED BEFORE DISBURSEMENT OF TERM LOAN

SANCTIONED TO BORROWERS FOR PURCHASE OF CAPITAL GOODS INCLUDING CAPITAL
EQUIPMENT AND PLANT & MACHINERY)
Particulars Mode of undertaking Due diligence
Whether the supplier is in the The same may be verified from the following:
same / similar line of Business Type of business operated by suppliers,
and deals with the same /
similar types of goods / Company website,
equipments for which the Term
Market enquires,
Loan is sanctioned
Competitors, etc.
A report from an independent aqencv like Dun & Bradstreet (D&B)
be obtained to ascertain whether the supplier deals in the
goods/machinery that
is being procur
Applicability: Borrower availing credit facility of above 10.00
Crore
A report from an independent agency like Dun & Bradstreet (D&B) be
obtained to ascertain whether the supplier deals in the
goods/machinery that is being procured
GUIDELINES ON CREDIT INFORMATION REPORTS OF THE BORROWERS PROVIDED BY THE

CREDIT INFORMATION COMPANIES (CICs) VIZ TRASUNION CIBIL: SCRUTINY SUMMARY
REPORT OF CONSUMER/ COMMERCIAL CREDIT INFORMATION REPORT (CIR)
Tarns Union CIBIL has revised its CIBIL commercial report with additional features. All the information which
is to be reported in scrutiny summary report is now readily available in revised report. In view of the above
and to avoid duplicity of work, scrutiny summary report is dispensed with.
MANDATORY OBTENTION OF AUDITED FINANCIAL STATEMENT OF THE BORROWER(s)

Mandatory obtention of Financial Statements is required as per following:
Category Statutory Criteria© Exposure Criteria Financial Paper
Requirement
Corporate Borrower (As
per Companies Act) As per Companies Act Irrespective of Audited Financial
Exposure Statement
Non- Corporate Borrower Irrespective of
Not falling under exempted Exposure Audited Financial
category for Tax Audit as per Statement
Income Tax act.

Falling under exempted
category for Tax Audit as per Above 20.00 Lacs CA Certified Financial
Income Tax act.
Statement
Upto 20.00 Lacs Self-Certified Financial
Statement
• In Case of Business: Turnover/Gross Receipts not exceeding 2.00 Crore p.a. subject to Profits assumed
at 8.00% or higher (6.00% or higher if in Digital Mode*)
• In case of Professionals: Gross receipts in profession not exceeding 50.00 Lac p.a. subject to Profits
assumed 50.00% or higher of Gross receipts/sales.
• In Case of Transporters: Profits assumed at 7500/- per Vehicle per month. (Not owning more than 10
Goods vehicles).
• Cir No.HO/DBD/15/2017-18/882 date 20-01-2018 – ESTABLISHING OF "ELECTRONIC

FRAUD RISK MANAGEMENT (eFRM) CELL" - The eFRM cell shall be nodal office for handling,
investigating, compensating and reporting for the unauthorized/ fraudulent electronic
transaction. The said cell shall also handle the Card Fraud Risk Management system for
establishing robust and dynamic fraud risk detection and prevention mechanism
This team shall henceforth handle all matters related to reported unauthorized/ fraudulent
transactions through use of any of the e-channels of the Bank such as Debit Cards, Internet
Banking, Mobile Banking, UPI, Banks Wallets etc.
1. The said team shall be responsible for follow-up & coordination with all concerned parties,
investigation, taking approvals from competent authority for denying or accepting any case,
carrying out necessary accounting for such transactions, insurance claims and ensuring
closure of each reported case in time-bound manner.
2. The eFRM cell shall henceforth serve as the back-office and single point of contact for our
offices/ other Banks/ regulatory authorities for disputed fraudulent transactions through e-
channels.
3. The customer shall report such fraudulent transactions & follow-up with their parent branch
only. Such complaints shall be escalated to eFRM cell (e-channels) at Head Office by branch
through their respective CMOs in coordination with Digital Banking cluster offices.
4. All concerned are advised to report disputed e-channels related fraudulent transactions to
above team only henceforth for an early action and resolution.
5. The contact details of eFRM Cell are given below:- Email-id - dbd.frm(Q)obc.co.in
• Cir No.HO/RMD/35/2017-18/362 date 04-08-2017 – ELIGIBLE EXTERNAL
RATING AGENCIES - ADDITION OF INFOMERICS VALUATION AND RATING PVT.
LTD (INFOMERICS) - Accordingly the branches may advise the borrowers to get
themselves rated from any of the following domestic credit rating agencies for the purposes
of risk weighting their claims for capital adequacy purposes
1. CARE LIMITED 2. CRISIL LIMITED 3. INDIA RATINGS AND RESEARCH PRIVATE
LIMITED 4. ICRA 5. BRICKWORK RATING INDIA PRIVATE LIMITED 6. SMERA RATINGS
LIMITED 7. INFOMERICS VALUATION AND RATING PRIVATE LIMITED
• Cir No.HO/ RMD/46/2017-18 date 19-08-2017 - BANK’S SCHEME FOR
FINANCING AGAINST FUTURE RENTAL / LEASE RENTAL DISCOUNTING (LRD) OF
PROPERTIES
PARTICULAR BANK'S POLICY NORMS (REVISED)
• The applicant (including landlord of Bank's premises) shall utilize funds for undertaking any lawful business
Purpose
activity, which includes: Expansion of existing activity. Financing of any new lawful business activity except
speculative activity. Augmentation of long term resources for working capital management/ acquisitions /
refinance of fixed assets/ meet contingencies or liquidity crunch of existing business activity. To meet any kind
of financial contingencies for lawful activities. Repayment of dues of existing borrowing taken for economic
activity.
All property owners/ builders who have let out their property or part of the property under a written lease deed/
Eligibility
sub lease deed/ Rent Deed to the following: Public Sector Undertakings/ Govt. / Semi Govt. & reputed
corporate, Institutions, Insurance Companies and Multinational Companies. Reputed Private Schools/ Colleges
(Approved by/ affiliated to State Board/ Universities/ other Govt. Body). Reputed Private Hospitals/ Nursing
Homes. Franchises/ Dealers/ Distributors of Reputed Corporate. Residential Accommodations on lease basis to
reputed organizations. Financing against Future Rentals is not to be permitted in case property owners have let
out their
roperty to their allied/sister concerns. However in exceptional cases, HLCC-ED/ CAC/ MCB may consider such cases
within their respective Delegated Powers.
In addition to the above, the finance under the scheme may be granted for purchase of already leased out (under a
written lease deed/ sub lease deed/ Rent Deed) property. However, in such case, an undertaking/ Letter of
Intent from the Lessees shall be obtained that they intend to continue in the leased premises/property as per
existing terms of Lease deed (already executed between existing lessor and lessee). Further, all other
compliances on the part of lessee as stated in this policy guidelines shall be complied with.
Tenor of Loan Advances upto Rs.10.00 Crore: (MSME Vertical borrowers) • Remaining period of lease deed or 144 months
whichever is earlier.
Advances above 10.00 Crore: (Mid/ Large Corporate Vertical borrowers)
Remaining period of lease deed or 144 months whichever is earlier.
However, in case of reputed corporate (i.e. Lessors having External Credit rating of BBB- or better availing Loan
under Bank's LRD scheme above ^10.00 Crore) with multiple lease deed or reasonable surety of continuity of
lease rent or renewal of lease deed on mutual agreed terms & condition or considering the demand of premises
for rent which will ensure easy replacement of lessee, the tenor of the facility may be granted to a maximum of
144 months, irrespective of the underlying remaining period of lease.
urther, in cases where the loan period is proposed above 10 years, the analysis of lessee shall be undertaken as
under: a)Where number of Lessee is upto 5: In such cases, the External Rating (if available), Financials with
adequate cash flows of all the lessees shall be analyzed and recorded in the process note. b)Where number of
Lessee exceeds 5: In such cases, the analysis of lessee (exceeding
25% of monthly lease rental) shall be undertaken factoring External Rating (if available), Financials with
adequate cash flows of these lessees shall be analyzed and recorded in the process note.
Further, the delegated authority for such cases shall be HLCC-ED/CAC/MCB only, within their respective
delegated authority.
) Advances to Landlord of Bank's premises (irrespective of Loan Amount)
In cases where loan has been sought by the landlords of Bank's premises and where lease deed is renewable on
the mutually agreed terms and conditions, the tenor of loan shall be maximum of 144 months including
unexpired lease period subject to the condition that the lessor shall undertake, that in case of non-renewal of
lease due to any reason whatsoever after the expiry of existing lease, to agree for conversion of balance
outstanding into loan against immovable property and all the terms and conditions of that scheme including the
prevailing rate of interest shall be applicable in the account.
Facility •Term Loan
Overdraft.(in exceptional cases, HLCC-ED/ CAC/MCB may consider sanction of the Loan against Future Rental in
the form of Overdraft on Drawing Power (DP) Reducing basis.)
he Overdraft Limit shall be adjusted within a maximum period of 144 months or the residual lease period, whichever
is earlier (as prescribed for Term Loan option), by reducing Drawing Power (DP) and the DP will be
reduced/regulated on a monthly basis (on the due date of receipt of monthly rental, as per lease agreement) by
taking into account the interest to be levied and lease rent recoverable.
here the rent is receivable by the borrower on quarterly basis, the Drawing Power in Overdraft facility shall be
reduced on quarterly basis and at the beginning of the period.
he entire sanctioned Overdraft limit should be fully adjusted within a maximum period of 144 months or the residual
lease period, whichever is earlier.
• Cir No.HO/ acct/6/2017-18/ 246 date 28-06-2017 - Implementation of Goods &

Service Tax (GST) Act in the Bank - Definitions
CGST stands for Central Goods and Service Tax and SGST stands for State Goods and
Service Tax both shall be on Intra - State supplies of goods or services in India.
IGST stands for Integrated Goods and Service Tax shall be on Inter State supplies of goods
or services in India- levied and collected by the Centre. (IGST shall be sum of CSGT and
SGST).
1. Center and States will levy CGST and SGST on the same tax base.
2. CGST will replace all central indirect taxes ( Excise duty and Service Tax) on domestic
goods/services excepting excise duty on tobacco products, motor fuels, and luxury goods
3. SGST is likely to replace the following state taxes: sales tax/VAT; entertainment taxes;
entry tax; luxury tax; purchase tax; taxes on lottery, betting and gambling; cesses and
surcharges
4. IGST to be levied on inter-state supply
5. IGST will be levied on imports
Destination Based Consumption Tax
GST is a destination based consumption tax. Destination based consumption tax means
that state and central taxes levied at different stages of the supply chain will be totally
shifted to the final destination, consumers, and the destination state will get the full
SGST paid by its residents
A. Rate of GST :
At present service tax rate on Banking and Financial Services is 15% (i.e. Service Tax @ 14%
plus 0.50% Krishi Kalyan Cess and 0.50% Swatch Bharat Cess). Under GST regime, GST rate
on Banking & Financial Services will be 18%. No Cess yet been proposed by the Central / State
Government till now.
This rate of 18% will consist of either Central Goods & Service Tax (CGST) @ 9% plus State
Goods & Service Tax (SGST) @ 9% or Inter State Goods & Service Tax (IGST) @ 18%
Note:- In case of Union Territories, the SGST is known as UGST i.e. Union Territory Goods &
Service Tax.
Incidence deciding charging of SGST and CGST or IGST will depend upon the state of the
branch and state of the customer receiving services. Logic of the same is given as under:
If the state of the branch providing service and state code mentioned in GSTIN of the customer
(B2B customer) or state of communication address (B2C customer) is same then the SGST
(@9%) and CGST (@9%) will be charged.
If the state of the branch providing service and state code mentioned in GSTIN of the customer
(B2B customer) or state of communication address (B2C customer) is different, then IGST
(@18%) will be charged.
• Cir No.HO/ rmd/95/ 836 date 06-01-2018 - INCORPORATION OF

UNCONDITIONALLY CANCELABLE CLAUSE (UCC) IN SANCTION TERMS &
CONDITIONS IN ALL BORROWAL ACCOUNTS. - In compliance to CRMC directions
all field functionaries are advised to endeavor to incorporate the Unconditional
Cancellability Clause (UCC) in terms & conditions as under:
1. For the fresh accounts the Unconditional Cancellability Clause (UCC) shall be
incorporated at the time of sanction.
2. For the existing borrowal accounts, the Unconditional Cancellability Clause (UCC)
shall be incorporated at the time of the renewal of the accounts.
A. If the UCC is accepted by the borrower, the Bank shall take into effect for not
allocating capital for these accounts for unavailed/undrawn portion of limits.
B. The format for cancellation of unavailed limit is attached as Annexure I.
• Cir No.HO/ACCT/18/17-18/694 date 29-11-2017 – Income Tax guidelines regarding

incurring expenditure in cash – "Expenditure in respect of which a payment or aggregate of
payments made to a person in a day, otherwise than by an account payee cheque drawn on
a bank or account payee bank draft or use of electronic clearing system through a bank
account, exceeds ten thousand rupees, no deduction shall be allowed in respect of such
expenditure."
Accordingly, branches/offices are advised to ensure that no cash payment exceeding Rs.
10,000/- (Rs. Ten Thousand) is made in respect of any expenditure attracting
abovementioned provisions under the Income Tax Act.
• Cir No.HO/ HO/ l&C/ 8 /2017-187 254 date 03-07-2017 – LEGAL AUDIT OF TITLE
DOCUMENTS OF MORTGAGED PROPERTY IN LARGE VALUE LOAN ACCOUNTS HAVING
OVERALL CREDIT EXPOSURE OF Rs.5.00 CRORE & ABOVE - RBI vide circular no. RBI/2012-
13/524.DBS.FrMC.BC.No.07/23.04.0.001/2012-13 dated 07.06.2013 has directed that Banks
should subject the Title Deeds and other documents in respect of all credit exposures of ?
5.00 Crore and above to periodic Legal audit and re-verification of title deeds with relevant
authorities as a part of regular audit exercise till the loan is fully repaid. Accordingly,
instructions for action to taken by the field functionaries were advised vide our circular No.
HO/ l&C/ 43 /2016-17/ 912 dated December 23, 2016 and all the field functionaries were
advised to get legal audit completed in all the remaining accounts and rectify the
irregularities pointed out in the legal audit reports without any delay.
• Cir No. HO/CS&P/35/2017-18/440/ dated 04-09-2017 – LLP (Limited Liability
Partnership) - KYC documents for opening of Current & Term-deposit accounts - KYC
documents required to open account of Limited Liability Partnership as under :-
a) Certificate of Registration issued by Ministry of Corporate affairs
b) Copy of LLP agreement.
c) PAN of LLP
d) KYC Documents of the Beneficial Owner (i.e. partners) along with Designated Identification
Number (DIN) allotted by MCA to them
The brief comparison between Registered Partnership Firm and LLP is detailed as below :-
Creation It's created by mutual understanding of It's created by law i.e., under LLP Act, 2008.
partners
Registration Optional Compulsory
Liability It has no separate legal entity. Partners are It has separate legal entity. The liability of partners will
collectively referred to as 'firm'. be limited to their agreed contribution in the LLP.
Assets Partnership firm can purchase assets in the LLP can purchase assets in its name.
name of partners only.
Legal Only registered partnership firm can sue. LLP can also sue and be sued.
Name No such requirement 'LLP' has to be suffixed.
Designated Partner No such requirement Every partner of LLP must have a valid DIN
Identification Number
Voting Right No such right Each partner has one vote
Governing Law The Indian Partnership Act, 1932 and various The Limited Liability Partnership Act, 2008 and various
rules made there under rules made there under
Annual Account and Not required AA and AR to be filed with the ROC Annually.
Annual Return
Audit As per Income Tax Act only. As per LLP Act 2008, audit is compulsory except if
turnover is less than Rs 40 lakh and for professional Rs
25 lakh. Income Tax Audit also as applicable
Members Minimum 2 and maximum 10 for banking and Minimum 2 and maximum has no limit
20 for others
• Cir No. HO/INSU (TPP)28/2017-18/803/ dated 30-12-2017 –REVISED ORIENTAL BANK

MEDICALIM POLICY 2017 w.e.f. 1st Jan 2018 – The main features of the products
are outlined here below:
a. Improved coverage in Ten Slabs up to 10 Lacs. Sum insured of these floating policies
covering family of proposer and/or dependent members ranges from Rs 1 lacs to Rs
10 lacs.
b. Family definition has been increased to Maximum of five (Self+Spouse+Three
Dependent Children).
c. Maximum entry age 79 years for all members with lifelong renewals allowed.
d. Single premium charged based on the age of the proposed accountholder.
e. Organ donor benefit, when insured person is the recipient (Covers Inpatient Medical
Hospitalisation expenses).
f. Increase in day care procedures upto 116.
g. Free Look period available.
h. Migration facility to other Retail Products of Oriental also available.
i. Income Tax benefits under Section 80D of the IT act.
OBC-ORIENTAL MEDICLAIM POLICY
PARTICULARS DESCRIPTION
Sum Insured Options Ranging from Rs. 1 Lac to Rs. 10 Lacs, at an interval of Rs. 1 Lac each
Policy Tenure 1 year
Who can be covered Self, Spouse, 3 Dependent Children (1+1+3)
Pre acceptance medical check up Not Required
a Criterion
Age Bands 3 bands: 0-40 , 41-60 and 64 and above

Minimum Entry - Proposer 18 yrs
Minimum Entry - Dependent Children 91 days
Maximum Entry Age - Self & Spouse
79 years (Age will be completed age as on the date of commencement of the policy.)
26 years (in case of Male child)
Maximum Entry - Dependent Children
Female child can be covered until she gets
married.
Renewal Age Lifelong
Benefits under the Policy in Brief*
Pre-Hospitalization Upto 30 days
Post-Hospitalization Upto 60 days
Room Rent
1% and 2% of Sum Insured per day for Normal and ICU
Organ Donor Benefit-When Insured is Covers in-patient Hospitalisation Medical the recipient 1 expenses
AYUSH treatment (Ayurveda, Yoga & Covers in-patient treatment in a Government hospital or in any institute recognised by Govt,
Naturopathy, Unani, Siddha and Homeopathy) and/or accredited by Quality Council of India of National Accreditation Board on Health OR in :
i. Teaching hospitals of AYUSH colleges recognised by Central Council of Indian
medicine (CCIM) and Central Council of Homeopathy (CCH)
ii. AYUSH hospitals having registration with Government authority under appropriate Act in
the State / UT and complies with the following as
minimum criteria
a. has at least 15 inpatient beds
b. has minimum 5 qualified and registered AYUSH doctors
c. has qualified paramedical staff under its employment round the clock.
d. has dedicated AYUSH therapy sections
e. maintains daily records of patients and makes these accessible to the Insurance
company's authorized personnel.
Domiciliary Hospitalization Benefit
Upto 10% of Sum Insured, Maximum Rs.25000/-during the Policy period.
Daily Hospital Cash Allowance - only in respect Rs.200 per day of hospitalization, maximum compensation being Rs.1000 during the policy
of the insured Account holder period, subject to claim admissibility.
Ambulance
Re mbursement upto maximum Rs.1000 in any Policy period, subject to claim admissibility.
Day Care Procedures 116 named procedures
Funeral Expenses
Lump sum payment of Rs.1000 per Insured person in case of death of the insured person,
subject to claim admissibility.
Grace Period for Renewal
Within 30 days for renewal of policy, subject to conditions
Cashless Facility Provided at network hospitals
Free Look Period
❖ This policy provides for a free look period. The free look period shall be applicable at
the inception of the fresh policy and the insured is allowed a period of 15 days from the
date of receipt of the policy to review the terms and conditions of the policy and to return
the same if not acceptable.
❖ If the Insured has not made any claim during the free look period, and exercises this
option, the Insured shall be entitled to

a. refund of the premium paid less any expenses incurred by the Insurer on
medical examination of the Insured
Persons and the stamp duty charges or
b. where the risk has already commenced and the option of return of the policy is
exercised by the Insured, a deduction towards the proportionate risk premium for period
on cover or
c. where only a part of the risk has commenced, such proportionate risk
premium commensurate with the risk covered during such period.
❖ Premium on cancellation shall be refunded within 15 days from the date of receipt of
request for Free look cancellation.
• CiR No. HO/Udbhav/11/2017-18/872 dated 17-01-2018 – REVISED GUIDELINES

REGARDING DEALING OF SISTER/ALLIED CONCERN OF LARGE CORPORATE/
MID CORPORATE BORROWERS
a. The borrower as well as the sister/ allied concerns of the borrower shall be dealt by the
Vertical (i.e., at the Branch Office/ Cluster Office level as well as at the Head
Office) of the largest borrower by exposure in the Group.
b. The group whose largest borrower has exposure above 50 Crore shall be dealt by Large
Corporate Vertical whereas the group whose largest borrower has exposure above 10 Crore
and upto 50 Crore shall be dealt by Mid Corporate Vertical.
c. Besides, the group whose largest borrower has exposure upto 10 Crore shall continue to be
dealt by MSME Vertical.
d. However, Loan against Deposit and one time Bills Purchased under Letter of Credit (BPLC)
shall not be considered while computing the exposure of the borrower for determining the
Vertical of the Borrower.
e. The Large Corporate Borrowers as well as the sister/ allied concerns of Large Corporate
Borrowers shall be dealt by the Large Corporate Branches at the field level and Large
Corporate Vertical at Head Office.
f. Similarly, Mid Corporate Borrowers as well as sister/allied concern of Mid Corporate
Borrowers shall be dealt by the Mid Corporate Branches at the field level and Mid Corporate
Vertical at Head Office.
g. In case of centres, where Large Corporate Branches are not located, Mid Corporate
Branches shall deal with Large Corporate Borrowers and their sister/allied concerns.
h. Further, in case of centres where Large/ Mid Corporate Branches are not located, Large/Mid
Corporate Borrowers as well as their sister concerns shall be dealt by Cluster Office (MSME).
i. In case sister/ allied concerns of Large/ Mid Corporate Borrowers are being dealt by the
Branch Offices at different centres, the Vertical Head (Large Corporate/ Mid Corporate
Business) shall permit the dealing of sister/ allied concerns of Large/ Mid Corporate
Borrowers by Large Corporate Branch /Mid Corporate Branch/ Cluster Office (MSME)/ Classic
Branches, as the case may be, located at that centre on case to case basis under intimation
to respective Vertical Head.
j. In case of centres like National Capital Region (NCR), Mumbai etc., sister/ allied concerns of
Large/ Mid Corporate Borrowers shall be preferably dealt by one Large/ Mid Corporate
Branch. However, Vertical Head (Large Corporate/ Mid Corporate Business) may allow
dealing of sister/ allied concerns of Large/ Mid Corporate Borrowers by different Branch
Offices on case to case basis.
k. In order to ensure effective monitoring of assets managed by various Business Verticals,
assets under Large Corporate and Mid Corporate Vertical shall also be reported in addition to
Vertical wise business.
l. The 'Group Id' shall be used for identifying assets under various Business Verticals i.e.,
Large Corporate Business, Mid Corporate Business, MSME, and Classic Branches.
m. The functionaries at field level as well as Head Office shall ensure that the files are handed
over to the respective Offices/Verticals as per the revised guidelines on 'Dealing of Sister/
Allied Concern of Mid Corporate/Large Corporate Borrowers' by January 30, 2018.
• CiR No. HO/msmE/24/2017-18/327 dated 19-07-2017

Amendments/Modifications in MSME Plus Scheme
Changes/Amendments
External Credit Risk Rating: For Fresh/Existinq/Green Field borrower accounts under MSME
Schemes havinq limits above 5.00Crore to 10.00 Crore-
Not mandatory for exposure upto Rs. 10.00 Cr. However, if the account is externally rated and rating is
upto A, the sanctioning authority may give concession in ROI of 0.25%. Beyond Rs. 10.00 Cr external
rating is must and shall be obtained before disbursement. The external rating should be within investment
grade and this clause shall invariably be stipulated in the sanction letter
For Fresh/Existing/Green Field borrower accounts under MSME schemes having Limit up to ? 10.00 Crore-
Note:-Delegated powers in relation to External rating shall prevail as per RMD circular from time to time
Endeavour should be made to get the account SME external rated and if the rating is up to MSE 4, the
sanctioning authority may give further concession in ROI of 0.25%.(NSIC also bear rating fee to the
extent of 75% for SME Ratings from SMERA in case of MSME customers).
Note 2: Delegated powers in relation to External rating shall prevail as per RMD circular from time to
time.
Note 2: Delegated powers in relation to External rating shall prevail as per RMD circular from time to time
Acceptable financial Ratio as per last audited Balance Sheet, latest available SA certified
Provisional Balance sheet (for existing & New Borrowers, in case of first year of operation).
However, if financial ratios remains below the benchmark as stipulated in the scheme after
obtaining latest ABS after sanction, applicable ROI as per conventional loan policy is to be
charged ab-initio. Besides, all other type of concession permitted under the scheme shall
also be withdrawn ab-initio.
Current Ratio/Adjusted Current Ratio: 1.17:1 (for working capital limits up to f

5.00crore)
1.25:1 (for working capital limits above f 5.00crore)
Current Ratio/Adjusted Current Ratio if collateral is more than 100%:
• 1.10:1 (for working capital limits up to f 5.00crore)
• 1.17:1 (for working capital limits above f 5.00crore)
Debt Equity Ratio/ Adjusted DE ratio:- Upto 3:1

Leverage Ratio/ Adjusted Leverage Ratio:-Upto 4:1
Financial Ratios viz Current Ratio/ Adjusted Current Ratio, Debt Equity Ratio/ Adjusted DE
ratio, Leverage ratio/Adjusted Leverage ratio are applicable for Working Capital Limits and
DSCR is applicable for Term Loan.
Internal Credit Risk Rating should be minimum OBC5 for last two years (in case of existing
borrower). For new borrowers rating should be OBC4 (in Take over case also under General
area/Restricted area of lending) and OBCGF4 in case of Greenfield projects.
Process Fee/ Upfront Fee:
Concession of 50% will continue in subsequent years also if the account is eligible to be covered
under the scheme
Reckoning Collateral Security:
• Actual residual value of primary security in the form of Land & Building (as per the latest
valuation report) mortgaged with the Bank over 150% of the total loan amount can be
reckoned for Collateral
• CiR No. HO/msme/43/2017-18/3 dated 02-01-2018 – Rating all Business Loans upto
10.00 lacs - "All the business loan accounts up to Rs. 10.00 Lacs shall be rated for a period
of three years irrespective of schemes and the Credit Risk Rating shall be done at the time
of renewal.
• CiR No. HO/msmE/57/2017-18/890 dated 29-01-2018 – INCREMENTAL CREDIT EXPOSURE
(FRESH/ ENHANCEMENT/ADHOC/OVERLIMIT) FOR BORROWERS AVAILING AGGREGATE
CREDIT EXPOSURE OF ABOVE f 5.00 CRORE TO BE CONSIDERED ONLY FOR BORROWERS
HAVING EXTERNAL CREDIT RATING OF A & ABOVE - WITH IMMEDIATE EFFECT – (1) The
Bank shall not grant any incremental exposure to Externally Unrated borrowal
account having aggregate exposure above Rs. 5.00 Crore (2) The above threshold
linked to external rating shall be applicable for all category of advances (other than
exempted categories), irrespective of Area of Lending and coverage under Schematic
Lending of the Bank. (3) The exempted categories shall include exposure to: [ a.
Government of India and State Government; b. Exposures where the principal and interest
are fully guaranteed by the Central/ State Government.c. Reserve Bank of India (incl. Food
Credit), d. Rural Infrastructure Development Fund (RIDF) deposits placed with
NABARD.e.Exposures secured by Eligible Financial Collateral/ Credit Risk Mitigation (CRM)
viz Bank's Own Deposit, Government under standardised approach for credit risk capital
computation. f. Negotiation of Inland Bills under L/C subject to compliance of minimum
regulatory CRAR of LC issuing bank.] Renewal of Credit facilities at existing/ reduced
level: Renewal of credit facilities at existing//reduced level can be granted by respective
sanctioning authority, irrespective of External Rating.
• CiR No. HO/CS&P/21/2017-18/277 dated 07-07-2017 – Amendment in KYC/AML
Policy- Opening of CASA account by Resident Individual as per name spelt in Aadhaar Card /
Acknowledgement Receipt - Keeping in view the fact that Aadhaar is most widely
available document as well as the same is most authenticated document as such,
the Board of Directors, during the meeting held on 29th June 2017 vide Agenda
item no. A-48, has approved that "name spelt on Aadhaar Card /
Acknowledgement Receipt (except in the states of Assam and Meghalaya) be taken as
correct name for opening the account
• CiR No. HO/BB/40/2017-18/279 dated 07-07-2017 – OPENING OF CURRENT

ACCOUNTS BY BANKS (Self Regulatory Mechanism for accounts having an
exposure of Rs. 5 Crore & above from the Banking Industry) The Branch / CASA
Back Offices prior to opening a current account should ascertain through CRILC whether the
customer is availing facility from any bank and the following guidelines be followed for
accounts having exposure of Rs. 5 Crores and above from the Banking industry:
a) In case the account is reported better than SMA-1 category, the current account opening
bank to request the lead bank (as per CRILC) on the designated email id for
NOC/Permission. If such NOC/Permission not received from the lead bank within 15 days
from the date of request, the bank may open the current account without waiting further for
the NOC / permission and thereafter advise the lead bank.
b) In case the account is reported under SMA-1 category & above the current account
opening bank should mandatorily obtain prior NOC/ Permission from the lead bank.
c) If lender bank at any point of time after opening of the account objects to the same,
especially indicating irregularity in accounts, the current account holding bank (non-lender)
needs to close such accounts by providing due notice (30 days) to the account holder/
borrower and remit the closure proceeds to the lead bank. Necessary steps to be taken
without delay to close the account
• CiR No. HO/CS&P/56/2017-18/726 dated 11-12-2017 – OPENING OF CURRENT

ACCOUNTS BY - Restriction on opening the account of Partnership Firm where HUF is one
of the Partner - It is to clarify that Partnership is defined in section 4 of the Indian
Partnership Act, 1932 as, "relationship between persons who have agreed to share the
profits of business carried on by all or any of them acting for all." Hence to constitute
partnership, the partners should be a person. Since, HUF is not a "person", but only group
of persons belonging to the same family and carrying on the family business, hence HUF
cannot be a partner in a Partnership firm
In view of above, the revised guidelines are as under: -
1) No fresh accounts / Cust-ld of Partnership firm with HUF as one of the partner are to be
opened.
2) In case of activation of Dormant account, the account shall be activated after getting
revised Partnership Deed without HUF as one of the partner.
3) In case of existing accounts / Cust-ld, the operation in the accounts shall continue,
However, the branches shall make efforts to update customer for submission of revised
Partnership Deed i.e. without HUF as one of the partner.
• CiR No. HO/AB&FI/69/2017-18/893 dated 23-01-2018 - Introduction of payout cap
on claim settlement - It has now been decided by CGTMSE to introduce a cap on total claim
settlement (i.e. settlement of 1st and 2nd installment of claim), based on the fee and
recovery (post settlement of claim) remitted by the Bank. Claims will be settled to the extent
of two times of the fee including recovery (post settlement of claim) remitted during the
previous financial year. Any claim lodged / received exceeding two times of the total fee
including recovery (post settlement of claim) remitted by Bank will be suspended till such
time the position is remedied i.e. payout is brought well within the payout cap limit.
• CiR No. HO/AB&FI/26/2017-18/406 dated 16-08-2017 – PMEGP - updation of TDR
details of Margin Money Subsidy on online e-portal - As per PMEGP guidelines the bank has
to transfer the margin money subsidy within 48 hours into the TDR account of the
beneficiaries. These TDR details are to be uploaded on online e-portal.
Action Point for Classic Branches
• The branch shall claim the Margin Money Subsidy after sanction and disbursement of
credit facility.
• The branch shall transfer the margin money subsidy within 48 hours into the TDR (Term
Deposit Receipt) account of the beneficiaries.
• The branch shall update TDR details of Margin Money Subsidy on online PMEGP e-portal
Action Point for Udhbav Branches
• The branch shall claim the Margin Money Subsidy after sanction and disbursement of
credit facility by MSME Cluster
• The branch shall transfer the margin money subsidy within 48 hours into the TDR
account of the beneficiaries.
• The branch shall update TDR details of Margin Money Subsidy on. Online PMEGP e-portal
Action Point for MSME Clusters
• MSME Clusters shall ensure that the branch has claimed the Margin Money Subsidy after
sanction / disbursement of credit facility, kept the margin money in TDR account of
beneficiary and updated the TDR details of Margin Money Subsidy on online PMEGP e-portal.
• CiR No. HO/INSU (TPP)/25/2017-18/785 dated 26-12-2017 – Personal Accident
Insurance Cover of Rupees Ten Lacs under Oriental Pratham Account Scheme - Bank has
decided to provide Free Personal Accidental Insurance Cover of Rs 10 Lacs (Death/Total
Permanent Disablement) for account holders of Oriental Pratham Account Scheme through
The Oriental Insurance Company Ltd. as detailed in Circular No. HO/CRG/136/2017-18/752
dated 15 12.2017.
• CiR No. HO/ BB-GBC / 52 /2017-18/344 dated 28-07-2017 - Premature closure
of Public Provident Fund (PPF) accounts- clarifications - i) The requirement of
payment of a fee of Rs. 50/ for each year of default along with arrear subscription of Rs.
500 for each year, prescribed under para 7 (2) of the PPF scheme is for regularizing a
discontinued account, and is not applicable for the purpose of closing the account
prematurely. Hence, the subscriber is not required to deposit either the fee of Rs. 50 for
each year of default or arrears of subscription for closing the account prematurely; and
ii) If a PPF account that has already completed 15 years and has subsequently been
extended under the provision of para 9 (3A) of the PPF scheme is closed prematurely before
the completion of the current 5-year block period, the reduction in interest rate by 1
percentage point shall be applicable from the date of the commencement of the current 5-
year block period and not from the date of initial opening of the account.
• CiR No. HO/ RMD / 79 /2017-18/697 dated 28-07-2017 – GUIDELINES ON

FAIR PRACTICES CODE FOR LENDERS: COPY OF LOAN
AGREEMENT TO BE FURNISHED TO BORROWERS - "The Bank will furnish a copy of
the loan agreement alonqwith a copy of all enclosures quoted in the loan agreement to all
the borrowers at the time of sanction/disbursement of loan at borrower cost"
• POLICY GUIDELINES FOR SANCTIONING OF CREDIT FACILITIES TO

PARTNERSHIP FIRMS-COMPULSORY REGISTRATION OF THE PARTNERSHIP
FIRMS
1. The credit facilities should be considered to only those partnership firms that are
registered with the Registrar of Firms.
2. In case of any change in the Partnership Firm (like change of principal place of business,
change in the name of the firm, addition or retirement of partner, dissolution of the firm,
minor partner attains the age of majority, insolvency or death of a partner etc.), the
changes should be informed to the Bank. The Branches/Cluster shall follow up with the
borrower and ensure that the changes in the Partnership Firm are registered with the
Registrar of Firms and the same shall be kept on Bank’s record
3. However, credit facility against Bank’s own deposit may consider to those partnership
firms also that are not registered with the Registrar of Firms. In such cases, all guidelines
regarding loan against Bank’s own deposit shall be followed with
4. Further, if the partnership firm applies for the registration of partnership firm with
Registrar of Firms and provides acknowledgement slip / proof of application for registration
of partnership firm, respective sanctioning authority can sanction new facility to such
unregistered partnership firm.
5. While considering any credit facilities to partnership firm, Partnership Deed should be
carefully scrutinized. The Partners’ authority should be ascertained regarding opening and
operation of the account, power to draw the cheques, power to overdraw the account etc.
• CiR No.HO/ RES.REC. & LAW/ Circular/06/2017-18/351/dated 27-07-2017 -

Review / Amendment in Recovery Policy of the Bank
Chapter- 6. SARFAESI Act, 2002 Chapter- 6. SARFAESI Act, 2002
FIXATION OF UPSET PRICE (RESERVE PRICE) UNDER FIXATION OF UPSET PRICE (RESERVE PRICE) UNDER
SARFAESI ACT, 2002: SARFAESI ACT, 2002:
Page no 103 If the Authorized Officer at RRL cluster feels that the auction under
If the Authorized Officer still feels that the auction will not SARFAESI Act 2002 will not be successful at the set reserve price, even
be successful at this price, with his recommendations based after two unsuccessful auctions, he/she may recommend based on
on cogent reasons, the RLCC-RH may lower down the cogent reasons to the HO RRL through their respective CMH, RRL for
reserve price upto the range of 20% of the Realisable Value, reduction of reserve price not exceeding 20% of the Realisable
so that the auction is made successful at the first attempt. Value, so that the recommended proposal is approved by HLCCGM in
If this also does not materialize, HLCC-ED can allow total order to make the auction successful.
reduction not exceeding 30% of the Realisable value on Hence, we propose HLCC GM at corporate office can allow total
the recommendations of the RLCC-RH. reduction not exceeding 20% of the Realisable Value on the
CAC at Head office can allow total reduction not exceeding recommendations of the CMH RRL.
40% of the Realisable Value Further, HLCC-ED can allow total reduction not exceeding 30% of the
Realisable Value on the recommendations of the CMH RRL.
CAC at Head office can allow total reduction not exceeding 40% of the
Realisable Value.
• CiR No. HO/ RMD / 72 /2017-18/633 dated 10-11-2017 - Under the revised list, the existing
area of categorization of various industries/ sector (where there is a change in area of categorization)
have been indicated in Bracket
Thrust Area (T) General Area (G) Specified Area (S) Neqative Area (N)
Food Processing, NBFCs (other than specified in S NBFC-ND-SI & MFI (excl. AFC, HFC, Infra (Power) (G)
Cement & Cement Products, Specified Area), IFC) Infra
Petroleum, CRE-RH-Affordable Housing, CRE (excl. CRE-RH-AH) (G) (Communication)(S)
Retail Credit (Schematic) Infra (Transport), (T) Iron & Steel (Upto ?25.00 Crore) Iron & Steel (S) (Above Rs.25.00
Agriculture and Agro based Infra (Water Sanitation), Textile (excl. Technical Textile©) and Crore)
industry (Other than those in Schools imparting education Jute Gems & Jewellery(S).
specified area). upto 12th Standard and falling Infra (Social & Commercial) (T)
MSME (Mfg & Service) - under priority, Educational Institutions,
Priority Sector* Technical Textile, (S)
Infra (Hotels) (T),
*MSME borrowers covered under Tea/Coffee, (S)
All Engineering (incl. Electronics &
Priority Sector, irrespective of Construction Contractor (Upto Electrical Equipment (T))Construction
line of activity. 50.00 Crore), (S) Contractor (Above Rs.50.00 Crore),
Chemicals & Petro- Automobile & Auto Ancillary,
Paper & Paper product,
Chemicals (T), Sugar, Edible / Vanapati Oil,
Drugs & Pharma, Metal & metal products,
Leather & Leather Wood & Wood products,
Products, Mining & Quarrying,
Glass & Glassware, Rubber & Rubber products,
Fertilizers, Entertainment & Media(including
Tobacco & Tobacco Film Financing),
products (S), Capital Market,
Trading (other than covered Ship-Breaking, S Aviation,

under priority BPO/Call Centre, IT Companies/
Software.
sector), irrespective of line of
activity.
Other Industries/ sectors
(Other than Thrust &
Specified)
• CiR No. HO/ CS&P / 66 /2017-18/857 dated 10-01-2018 - REVISION IN INTEREST RATES
ON SAVINGS DEPOSITS W.E.F. 11.01.2018 - It has been decided to revise the rate of interest on
all savings accounts, i.e., domestic and ordinary Non-Resident savings deposits as well as savings
deposits under Non-Resident (External) Accounts Scheme w.e.f. 11.01.2018 as under:-
Deposit Amount Rate of Interest (p.a.)
Deposits up to 25 Lakh 3.50%
Deposits (above 25 Lakh) 4.00%
Further, it has been decided to credit interest on savings deposit on quarterly basis w.e.f. 01.04.2018
in place of monthly basis as being done now.
• CiR No. HO/ CS&P / 32 /2017-18/397 dated 19-08-2017 – Service Charges- Revision in
SMS charges - Revised charges applicable w.e.f. 30th Sept' 2017 - Rs.15/- in all operative
accounts excluding Basic Saving Deposit on quarterly basis.
• CiR No. HO/ RMD /60 /2017-18/517 dated 27-09-2017 - The guidelines on vetting of
the documents before disbursements are as under
Particulars Documents to be vetted by
Limit upto Rs.1 Crore Local Legal Counsel on the Bank’s panel
Limit above Rs.1 Crore & upto 5 Crore Legal Retainer irrespective of sanctioning authority
Limit above Rs.5 Crore Law Officer of the Bank irrespective of the sanctioning authority
The following credit facilities shall be exempted from the purview of Legal Vetting of
Documents:
A. Loans to staff members (under Staff or General Loans Schemes) which are not secured by immovable
property (ies).
B. Loan against self-Deposit to an individual.
C. Loan against Third Party Deposit to an individual where the Deposit Receipt is also in the name of an
individual.
D. Loan to individuals against Shares/Bonds /Debentures /Mutual funds, NSC, LIC Policy and other
Government securities.
E. Purchase of Government cheques, Pay orders, bank draft issued by Scheduled Commercial Banks.
F. Occasional cheques purchase and withdrawal against un-cleared instruments/cheques in case of non-
borrowal accounts. (In case of borrowal accounts, Occasional cheques purchase and withdrawal against
uncleared instruments/cheques is done within Over Limit and no documentation is done in case of Over
Limit.)
G. Credit facilities upto ` 10.00 Lacs sanctioned under Government Sponsored Schemes.
H. Oriental Green Card (OGC) upto 10.00 Lac
PROFESSIONAL FEE PAYABLE TO LEGAL COUNSEL AND LEGAL RETAINER
Loan Limits upto 10.00 Lac - Consolidated fee of 500/- per account per instance of vetting
Loan Limits above 10.00 Lakh to 1.00 crore - Consolidated fee of ` 1000/- per account per instance
of vetting
Loan Limits above 1.00 crore to 5.00 crore - Consolidated fee of ` 1500/- per account per instance of
vetting
• CiR No. HO/ RMD /57 /2017-18/504 dated 22-09-2017 – REVISION IN
GUIDELINES FOR CONDUCTING UNIT VISIT / SECURITY VISIT FINANCED OR TO BE FINANCED BY
THE BANK –
1. In case of Consortium, the arrangement shall be as per decision of the consortium.
2. In case of multiple financing and banks have an agreed arrangement for visits, the same
shall be followed.
3. Periodicity of unit visit for all borrowal accounts having Fund Based limits and Non-Fund
Based limits (where fixed assets / current assets are charged as prime security) shall be
once in three months for Standard A/c and at least once in a month for Special Mention
Accounts
4. However, in case of Multiple Banking and Consortium, periodicity of the unit visit shall
be in line with the lead bank / as decided by the members / consortium.
5. Further, in case of Multiple Banking and Consortium, unit visit made by the member
banks shall be accepted. The same may be recorded in the place of unit visit report or
copy of the unit visit report of the member bank may be obtained.
6. However, unit visit by our bank must be conducted at least once in a year.
• CiR No. HO/ MSME /21 /2017-18/235 dated 29-04-2017 – Modifications /

amendments under “Loan against Warehouse Receipts (WHR)” scheme -
1. The finance under the scheme “ Loan against Warehouse Receipt” shall be exempted
from Stock Verification (Stock Audit) by independent Chartered Accountants (CA).
2. Allowing finance against WHR for all Agri-commodities which are issued by two major
Collateral Manager in different States viz.
M/s National Collateral Management Services Limited (NCMSL)
M/s National Bulk Handling Corporation (NBHC)
GIST OF LOAN POLICY

ABBREVATION USED
The key abbreviations used in this policy documents be construed / referred as:
BG- Bank Guarantee
BI – Branch Incumbent
BPLR – Benchmark Prime Lending Rate
BR – Base Rate
CAC – Credit Approval Committee
CB - Classic Branches,
CH- Cluster Head,
CIC- Credit Information Company
CRMC- Credit Risk Management Committee
CMO – Cluster Monitoring Office
CMH – Cluster Monitoring Head
CMLCC- Cluster Monitoring Level Credit Committee
CMLCC-HCB- Cluster Monitoring Level Credit Committee headed by Head of Classic
Branches.
CRE- Commercial Real Estate
CRE-RH- Commercial Real Estate-Residential Housing
ED- Executive Director
FB –Fund Based
FI- Financial Institutions
GM – General Manager
HLCC- Head Office Level Credit Committee.
LC- Letter of Credit
LCB – Large Corporate Branches
MCB – Mid Corporate Branches/ Management Committee of Board (as applicable)
MCLR – Marginal Cost of Lending Rate,
MD & CEO – Managing Director and Chief Executive Officer
MSME – Micro, Small and Medium Enterprises
NBG – New Business Group
NFB- Non Fund Based
NOC – No Objection Certificate
PMDO – Pooled Municipal Debt Obligation
PSUs – Public Sector Undertakings
RAG – Retail Asset Group.
RBI – Reserve Bank of India
RM- Relationship Manager
RoI – Rate of Interest.
SMCF – Structured Mezannine Credit Facility
Implementation of Udbhav Structure

There are three pillars of „Project Udbhav‟ namely
1) Business Process & Operating Model,
2) Organization Structure and
3) Branch Transformation.
With the roll out of „Project Udbhav‟ and to have a customer centric approach with healthy portfolio
of advances , all the Branches have been categorized into 5 categories namely: (1) Large Corporate
Branch, (2) Mid Corporate Branch, (3) Udbhav Branch (mapped with Cluster Office), (4) Classic
Branch & (5) Classic Mid Corporate Branch.
Large Corporate Branches (LCBs): Large Corporate Branches shall cater to Large Corporate
Borrowers i.e., borrowers availing credit facilities above Rs.50 Crore. There are presently 5 LCBs
i.e., New Delhi, Mumbai, Chennai, Hyderabad and Kolkata.
Mid Corporate Branches (MCBs): Mid Corporate Branches shall cater to Mid Corporate
Borrowers i.e., borrowers availing credit facilities above Rs.10 Crore and upto Rs.50 Crore.
Presently, 44 branches have been designated as Mid Corporate Branches with 5 branches being
classified as Classic Mid Corporate Branches.
Udbhav Branches: The Branches that have been mapped (attached) to the Cluster Offices have
been classified as „Udbhav Branches‟. The Udbhav Branches shall carry out transactional banking
and customer acquisition (assets and liabilities) through walk-in customers and referrals.
Classic Branches: The branches that are either located at far flung places or have small business
volumes shall function as „Classic Branches‟. The „Classic Branches‟ shall carry out the processing,
sanctioning and monitoring of the credit facilities in addition to Recovery & Resolution in Non-
Performing accounts (NPA).
 Under Udbhav Structure, the Cluster Offices and Udbhav Branches shall function on the „Hub and
Spoke paradigm‟.
The Cluster Office-RAG shall be responsible for processing, sanctioning, collection and
monitoring of the credit facilities, to Individual Borrower under various Retail Credit Schemes.
The Cluster Office-MSME shall be responsible for processing, sanctioning, collection and
monitoring of the credit facilities, to MSME borrower i.e. borrowers availing credit facilities upto
Rs.10 Crore.
Cluster Office-Resolution, Recovery & Law shall have dedicated teams for ensure early
resolution in the NPA.
 Besides above, in order to ensure business development, effective monitoring and strengthening
of the Compliance function under Udbhav Structure, the Cluster Monitoring Offices has been
introduced. The Cluster Monitoring Offices (CMOs) shall act as extended arms of the Head Office
in their respective geographies. However, no processing and sanctioning of the credit facilities shall
take place in the CMO (except CMO-CB, which can exercise the delegated authority for sanction).
Intensive and Focused Marketing

 Mobilization of fresh / quality credit proposals through specialized Branches/ Cluster / Verticals i.e.
Large Corporate Branches / Mid-corporate Branches/ MSME Cluster / RAG Cluster / CRG for
securing new business connections and high quality loan assets.
 Tapping the potential in Rural & Semi-urban Branches for securing new business connections,
high quality loan assets and marketing of RAM advances.
 New and innovative product development for capitalizing on business opportunities.
 Designing customer-friendly and flexible loan products/ special credit schemes and offering
package of financial services.
Exposure shall include Credit exposure (Funded and Non-Funded Credit Limits) and investment
exposure (including underwriting and similar commitments). The sanctioned limits or outstanding,
whichever are higher, shall be reckoned for arriving at the exposure limit. However, in the case of
fully drawn term loans, where there is no scope for re-drawl of any portion of the sanctioned limit,
banks may reckon the outstanding as the exposure.
 Further, as per Bank‟s Forward Contract Policy circulated vide Circular No. IBD/37/2016-17/259
dated 02.07.2016, it is stated that for the sake of simplicity, 5% of the Forward Contract limit
shall be taken as credit exposure while considering credit facility in favour of the borrower.
 Exposure under Working capital Limit: The sanctioned limits or outstanding, whichever are
higher, shall be reckoned for arriving at the exposure limits in case of Working Capital Limits.
 Exposure under Term Loan: In case of partly drawn term loans, the exposure shall be taken as
outstanding + undrawn portion. In case of fully drawn term loans, where there is no scope for re-
drawl of any portion of the sanctioned limit, outstanding shall be reckoned as the Credit Exposure.
 Exposure under NPA: In case of borrowal accounts classified as Non-Performing Assets (NPA),
the outstanding balance of Fund Based and Non Fund Based facilities shall be treated as
„Exposure‟. However, in case of NPA accounts that have been either restructured or where
operations have been allowed, the normal definition of Exposure shall continue.
 Exclusion from exposure:

Loans and advances (both funded and non-funded facilities) granted against the security (Primary
Security) of a bank‟s own term deposits are not reckoned for computing the exposure to the extent
that the bank has a specific lien on such deposits.
Credit facility where validity of sanction has lapsed and require re-validation of sanction shall not
be treated as exposure till re-validation of sanction by the competent authority.
Unsecured Exposure
As per RBI Master Circular on Guarantees and Co-acceptances circulated vide RBI/2015-
16/76/DBR. No. Dir. BC.11 /13.03.00/2015-16 dated 01.07.2015, the „Unsecured Exposure‟ is
defined as an exposure where the realizable value of the security, as assessed by the Bank
/Approved Valuers / RBI Inspecting Officers, is not more than 10%, ab-initio, of the outstanding
exposure. Security‟ will mean tangible security properly charged to the Bank and will not include
intangible securities like guarantees, comfort letters etc. The rights, licenses, authorizations, etc.
charged to the Bank as collateral in respect of projects(including infrastructure projects) financed by
the Bank should not be reckoned as tangible security. Such advances shall be reckoned as
unsecured.
Long Term and Short Term Exposure (for the purpose of Capital Adequacy)
As per RBI Master Circular on Basel III Capital Regulations circulated vide RBI/2015-
16/58/DBR.No.BP.BC.1/21.06.201/2015-16 dated 01.07.2015, the credit facility having contractual
maturity less than or equal to one year is to be treated as Short Term Exposure. Similarly, the credit
facility having contractual maturity of more than one year shall be treated as Long Term Exposure.
However, the Cash credit exposures tend to be generally rolled over and also tend to be drawn
on an average for a major portion of the sanctioned limits. Hence, even though a cash credit
exposure may be sanctioned for period of one year or less, these exposures should be reckoned as
long term exposures.
Micro, Small & Medium Enterprises
The definition of Micro, Small and Medium Enterprises as per MSMED act, 2006 and RBI guidelines
shall be as follows:
Classification Manufacturing Service Enterprises

Enterprises
Basis of Categorization (investment in plant & (investment in equipment)
machinery)
Micro Enterprises Does not exceed Rs.25 Lakhs Does not exceed Rs.10 Lakhs
Small Enterprises More than Rs. 25 Lakhs but More than Rs.10 Lakhs but does
does not exceed Rs. 5 Crore not exceed Rs. 2 Crore
Medium Enterprises More than Rs.5 Crore but More than Rs.2 Crore but does
does not exceed Rs.10 Crore not exceed Rs.5 Crore
Granting loans and advances to Directors or relatives of Directors

i. Unless sanctioned by the Board of Directors/Management Committee, banks should not grant
loans and advances aggregating Rupees twenty five lakhs and above to
a) directors (including the Chairman/Managing Director) of other banks*;
b) any firm in which any of the directors of other banks* is interested as a partner or guarantor;
and
c) Any company in which any of the directors of other banks* holds substantial interest or is
interested as a director or as a guarantor.
ii. The restrictions as contained in Section 20 of Banking Regulation Act, 1949 would apply to grant
of loans and advances to spouse and minor / dependent children of the Directors of banks.
However, banks may grant loan or advance to or on behalf of spouses of their Directors in cases
where the spouse has his / her own independent source of income arising out of his / her
employment or profession and the facility so granted is based on standard procedures and norms
for assessing the creditworthiness of the borrower. Such facility should be extended on commercial
terms. All such credit proposals for Rs.25 Lakhs and above should be sanctioned by the Board of
Directors / Management Committee of the Board. The proposals for less than Rs.25 Lakhs may be
sanctioned by the appropriate authority in terms of the powers delegated to them.
iii. Loans and advances aggregating Rs.25 Lakhs and above is to be also sanctioned by the Board of
Directors/ Management Committee of the Board in the following cases:
a) any relative other than spouse (spouse as specified in Para 5.2.1 (ii)) and minor/ dependent
children of the Chairman/ Managing Directors or other Directors of the Bank;
b) any relative other than spouse (spouse as specified in Para 5.2.1 (ii)) and minor/ dependent
children of the Chairman/Managing Director or other directors of other banks*;
c) any firm in which any of the relatives other than spouse and minor / dependent children as
mentioned in (a) & (b) above is interested as a partner or guarantor; and
d) any company in which any of the relatives other than spouse (spouse as specified in Para 5.2.1
(ii)) and minor / dependent children as mentioned in (a) & (b) above hold substantial interest or is
interested as a director or as a guarantor.
* including directors of Scheduled Co-operative Banks, Directors of Subsidiaries/ Trustees of Mutual
Funds/Venture Capital Funds.
iv. The proposals for credit facilities of an amount less than Rs.25 Lakhs to these borrowers may be
sanctioned by the appropriate authority under powers vested in such authority, but the matter
should be reported to the Board of Directors for information.
v. The Chairman/Managing Director or other director who is directly or indirectly concerned or
interested in any proposal should disclose the nature of his/her interest to the Board when any such
proposal is discussed. He/she should not be present in the meeting unless his/her presence is
required by the other directors for the purpose of eliciting information and the director so required
to be present shall not vote on any such proposal.
vi. The above norms relating to grant of loans and advances will equally apply to awarding of
contracts.
vii. The scope of the term „relative‟ will be as under:

Spouse
Father
Mother (including step mother)
Son (including step son)
Son‟s wife
Daughter (including step daughter)
Daughter‟s husband
Brother (including step brother)
Brother‟s wife
Sister (including step sister)
Sister‟s husband
Brother (including step-brother) of the spouse
Sister (including step sister) of the spouse
The term „loans and advances‟ will not include loans or advances against -
Government securities
Life insurance policies

Fixed or other deposits
Stocks and shares
Temporary overdrafts for small amounts, i.e. upto Rupees twenty five thousand
Casual purchase of cheques up to Rupees five thousand at a time
Housing loans, car advances, etc. granted to an employee of the bank under any scheme
applicable generally to employees.
ix. In order to ensure compliance of the above regulatory restriction in regard to granting loans &
advances/ award of contracts to Directors or relatives of Directors (our Bank or other Bank as
specified above), the field functionaries shall ensure to obtain the following:
1) Every borrower should furnish a declaration to the bank to the effect that:
a) (where the borrower is an individual) he is not a director or specified near relation of a director
of a banking company;
b) (where the borrower is a partnership firm) none of the partners is a director or specified near
relation of a director of a banking company; and
c) (Where the borrower is a joint stock company) none of its directors, is a director or specified
near relation of a director of a banking company.
2) The declaration should also give details of the relationship of the borrower to the director of the
bank (if any).
3) The terms of sanction should stipulate a condition that in case where it transpires that the
borrower has given a false declaration, the Bank shall immediately/ forthwith recall the credit facility
granted to such borrower.
Grant of Loans & Advances to Officers and Relatives of Senior Officers (Scale IV and
above) of the Bank
(i) Loans & advances to officers of the Bank

No officer or any Committee comprising, inter alia, an officer as member, shall, while exercising
powers of sanction of any credit facility, sanction any credit facility to his/her relative. Credit
facilities sanctioned to senior officers of the bank should be reported to the Board for information.
(ii) Loans and advances and award of contracts to relatives of senior officers of the
Bank
Proposals for credit facilities including the following to the relatives of senior officers of the bank
sanctioned by the appropriate authority should be reported to the Board.
a) any firm in which any of the relatives of any senior officer of the financing bank holds substantial
interest, or is interested as a partner or guarantor; or
b) any company in which any of the relatives of any senior officer of the financing bank holds
substantial interest, or is interested as a director or as a guarantor,
(iii) The above norms relating to grant of credit facility will equally apply to the
awarding of contracts.
(iv) In the case of Consortium/Multiple/Joint Lending arrangements, the above norms relating to
grant of credit facilities to relatives of senior officers of the bank will apply to the relatives of senior
officers of all the participating banks.
(v) The scope of the term „relative‟ is the same as mentioned at paragraph 5.2.1(vii).
(vi) The term „Senior Officer‟ will refer to:
a) any officer in senior management level in Grade IV and above in a nationalized bank,
b) any officer in equivalent scale
in the State Bank of India and associate banks, and
in any banking company incorporated in India.
(vii) The term „loans and advances‟ will not include loans or advances against:
Government securities
Life insurance policies
Fixed or other deposits
Temporary overdrafts for small amounts, i.e. upto Rupees twenty five thousand, and
Casual purchase of cheques up to Rupees five thousand at a time.
Credit facility will also not include loans and advances such as housing loans, car advances,
consumption loans, etc. granted to an officer of the bank under any scheme applicable generally to
officers.
(viii) The Delegated Powers for sanction of the credit facilities to the relatives of the Staff members
shall be as per Bank‟s policy on Delegated Powers for Loans & Advances.
Restrictions on Advances against Sensitive Commodities under Selective Credit Control
(SCC)
Commodities covered under Selective Credit Control
i. The commodities, generally treated as sensitive commodities are the following:
a) food grains i.e. cereals and pulses,
b) selected major oil seeds indigenously grown, viz. groundnut, rapeseed/mustard, cottonseed,
linseed and castor seed, oils thereof, vanaspati and all imported oils and vegetable oils,
c) raw cotton and kapas,
d) sugar/gur/khandsari,
e) Cotton textiles which include cotton yarn, man-made fibres and yarn and fabrics made out of
man-made fibres and partly out of cotton yarn and partly out of man-made fibres.
Banks are free to fix prudential margins on advances against these sensitive commodities. However,
in case of advance against Levy Sugar, a minimum margin of 10% will apply.
ii. Valuation of sugar stocks to be done as per RBI guidelines.
Loans and Advances against Shares, Debentures and Bonds

Bank shall strictly observe regulatory restrictions on grant of loans and advances against shares,
debentures and bonds alongwith the Master Circular on 'Exposure Norms' dated July 1, 2015. The
restrictions, inter alia, on loans and advances against shares, debentures and bonds, are:
No loans to be granted against partly paid shares.
No loans to be granted to partnership/proprietorship concerns against the primary security of
shares and debentures.
Finance against Indian Depository Receipts (IDRs)
Bank shall not grant any loan/advance for subscription to IDRs. Further, Bank shall not grant any
loan/advance against security/collateral of IDRs issued in India.
Advances against Fixed Deposit Receipts (FDRs) issued by other banks
Bank shall desist from sanctioning advances against FDRs, or other term deposits of other banks.
Loans against Certificate of Deposits (CDs)
Bank cannot grant loans against CDs and is also not-permitted to buy-back its own CDs before
maturity except CDs held by mutual funds. While granting such loans to the mutual funds, banks
should keep in view the provisions of paragraph 44(2) of the SEBI (Mutual Funds) Regulations,
1996. Further, such finance if extended to equity-oriented mutual funds will form part of banks‟
capital market exposure, as hitherto.
Loans and advances to Micro and Small Enterprises (MSE)
In view of Ministry of Finance guidelines and to support the MSEs borrowers through working
capital finance, the Bank vide Circular No. HO/MSME/10/2017-18/81 dated 29.04.2017 has
increased the MPBF for MSE borrowers availing working capital limits of up to `5 Crore from the
banking system, as under:
a) Where the annual turnover of the MSE borrower constitutes more than 75% of non-digital
transaction, the MPBF shall be 25% of the annual turnover.
b) Where the annual turnover of the MSE borrower constitutes a minimum of 25% of digital
transaction, the MPBF shall be 30% of the annual turnover.
The detailed methodology of working capital finance to MSE borrower stands circulated vide Circular
No. HO/MSME/10/2017-18/81 dated 29.04.2017
Restriction on Financing to HUF
The Bank shall not extend credit facilities to Partnership entities where HUF is a partner.
Honourable Supreme Court in its judgement on Ram Laxman Sugar Mills v CIT 66 ITR 613 (SC)
has said that "an HUF is undoubtedly a person within the meaning of the Income Tax Act. It is
however not a juristic person for all purposes and cannot enter into an agreement of partnership
with another undivided family or individual."
The Honourable Supreme Court has also stated as under:
HUF is neither a natural person nor a legal person (incorporated body) except for the purpose of
income tax assessment (as defined in section 2(32) of the IT Act.
HUF not being a person cannot enter into an agreement of partnership.
If a „Karta‟ or any other member of the HUF joins a partnership, he can do so only as individual.
All other guidelines of financing to HUF entities circulated vide HO/RMD/78/2015-16/969 dated
09.03.2016 shall be duly complied with.
Restriction on Financing to Unregistered Partnership Firms
Partnership is the relation amongst persons, who have agreed to share the profits of a business
carried on by all or any of them acting for all. Such persons are collectively called firm.
As per Indian Partnership Act 1932, the registration of a partnership firm with Registrar of Firms
is not compulsory. However, an unregistered firm stands in disadvantage legally which will affect
the firm‟s position while effecting recovery of its dues, with the help of law.
The partnership firms are regulated by Indian Partnership Act 1932. The Indian Partnership Act
states that no suit to enforce a right from a contract can be instituted in any court by or on behalf
of a firm against any third party unless the firm is registered.
In view of above, the Bank vide Circular No. HO/RMD/91/2013-14/1063 dated 15.02.2014 has
circulated guidelines for Compulsory Registration of the Partnership Firms.
Sanctioning of credit facilities to Partnership Firms
The credit facilities should be considered to only those partnership firms that are registered with
the Registrar of Firms. While considering any credit facilities to partnership firm, Partnership Deed
should be carefully scrutinized. The Partners‟ authority should be ascertained regarding opening
and operation of the account, power to draw the cheques, power to overdraw the account etc.
In case of any change in the Partnership Firm (like change of principal place of business, change
in the name of the firm, addition or retirement of partner, dissolution of the firm, minor partner
attains the age of majority, insolvency or death of a partner etc.), the changes should be informed
to the Bank. The Branches/Cluster shall follow up with the borrower and ensure that the changes in
the Partnership Firm are registered with the Registrar of Firms and the same shall be kept on
Bank‟s record.
Existing Exposure to Unregistered Partnership Firms
In cases where the Bank has existing exposure to unregistered Partnership Firms (originally
sanctioned before 15.02.2014), the Branches/Cluster shall identify all the unregistered partnership
firms and pursue the borrower to get itself registered with the Registrar of Firms in a time bound
manner, failing which advances shall be recalled.
Collateral free loans for Micro and Small Enterprises

Bank may extend collateral-free loans upto Rs.10 Lakhs to all units of the Micro and Small
enterprises (both manufacturing and service enterprises) defined under MSMED act, 2006. Bank can
also take cover for collateral free credit facilities under Credit Guarantee Scheme (CGS) of Credit
Guarantee Fund Trust for Micro and Small Enterprises.
Bank has already waived the condition of obtaining collateral security for credit limits up to
Rs.200.00 Lakh sanctioned to Micro & Small Enterprises and cover the same under CGTSME
Scheme.
Threshold Internal Credit Risk Rating for New Borrowers & Additional Exposure to
Existing Borrowers
The threshold internal Credit Risk Rating for New Borrowers and additional Exposure (including
Adhoc) to Existing Borrowers is as under:
Particular Threshold Rating
Thrust and General areas of Lending OBC 1 to OBC 6
Restricted areas of Lending OBC 1 to OBC 5
Education Loan (upto Rs.7.50 Lakh) OBC 1 to OBC 10
Take over accounts (General & Thrust) OBC 1 to OBC 5
Take over accounts (Restricted) OBC 1 to OBC 3
NBFC (All category) OBC 1 to OBC 5
Inter-Bank participation with risk sharing OBC 1 to OBC 5
Sub-Ordinate / Mezzanine Debt facility for Infrastructure OBC 1 to OBC 3
and Core Industries
Partial Credit Enhancement to Corporate Bonds OBC 1 to OBC 3
Corporate Loan OBC 1 to OBC 7
Unsecured Short term loan to Corporate OBC 1 to OBC 5
Bridge Loan to companies (other than NBFC) OBC 1 to OBC 3
Against Public Issue of Equity as also against the expected
proceeds of Non-Convertible Debentures, External
Commercial Borrowings, Global Depository Receipts and/or
funds in the nature of Foreign Direct Investments.
Line of Credit (The facility shall be permitted only to PSUs OBC 1 and OBC 2
and blue chip companies falling under the powers of HLCC-
ED / CAC / MCB. However, CAC / MCB shall be authorized
to permit relaxation in credit rating on case to case basis.)
Any Schematic lending or Sector Specific policy As per Scheme / Specified
Policy
Note: In case the same is not defined in the policy the entry level shall
continue to be governed as per above stated Bank’s policy guidelines.
For Thrust & General area of Lending:

Branch Incumbents / Cluster Head / CMLCC-HCB can consider sanction of the credit proposals
(New, enhancement, additional, adhoc facilities) of the borrowers having Internal Credit Risk Rating
upto OBC 6 (i.e., OBC 1 to OBC 6).
 The credit proposals of the borrowers having Internal Credit Risk Rating below OBC 6 (i.e., OBC 7
to 10) shall be considered by next higher sanctioning authority.
 However, HLCC-GM/HLCC-ED/CAC/MCB can consider the credit proposals irrespective of the
Internal Credit Risk Rating of the Borrower
The respective sanctioning authority as per normal Delegated Powers can review/renew the
borrowal accounts within their Delegated Powers irrespective of the Internal Credit Risk Rating of
the Borrower.
For Restricted area of Lending:

 Branch Incumbents / Cluster Head / CMLCC-HCB can consider sanction of the credit proposals
(New, enhancement, additional, adhoc facilities) of the borrowers having Internal Credit Risk Rating
upto OBC 5 (i.e., OBC 1 to OBC 5).
 The credit proposals of the borrowers having Internal Credit Risk Rating below OBC 5 (i.e., OBC 6
to 10) shall be considered by next higher sanctioning authority.
Internal Credit Risk Rating of the Borrower.
 The respective sanctioning authority as per normal Delegated Powers can review/renew the
borrowal accounts within their Delegated Powers irrespective of the Internal Credit Risk Rating of
the Borrower.
For Takeover Account:

 The entry level for takeover accounts has been kept stringent as compared to other cases. For
takeover cases falling under Thrust & General area of lending is OBC-5 and Restricted Area is OBC-
3. No relaxation is permitted in the entry level rating for takeover of borrowal accounts as per
extant policy guidelines. However, CAC shall be the competent authority to grant any deviation from
the said policy guidelines.
Threshold External Credit Risk Rating for New Borrowers & Additional Exposure to
Existing Borrowers
The threshold External Credit Risk Rating for New Borrowers and additional Exposure (including
Adhoc) to Existing Borrowers is as under:
Type of Credit Proposal Threshold External
Rating
Thrust and General Areas of Lending New: BB+ & better
Existing : B & better
Restricted areas of Lending
Take over accounts (General & Thrust) BBB- & better
Take over accounts (Restricted)
NBFC (All category) BBB & better
Inter-Bank participation with risk sharing BBB/A3 & better
Sub-Ordinate/Mezzanine Debt facility for Infrastructure AA & better
and Core Industries
Partial Credit Enhancement to Corporate Bonds A & better
Corporate Loan B & better
Unsecured Short term loan to Corporate A & better
Line of Credit to PSUs and blue chip companies A & better
Any Schematic lending or Sector Specific policy As per Scheme / Specified
Policy
Note:
 In case the same is not defined in the policy the entry level shall continue to be
governed as per above stated Bank‟s policy guidelines.
 Renewal/ Review can be done, irrespective of External Rating BI-CB/Cluster Head/
CMLCC-HCB shall have no powers to sanction incremental exposure to borrower having
External Credit Risk Rating of C and D.
 For the purpose of determining entry level rating only, the Unrated Account shall be
treated at par with BBB.
New Borrowers (including Takeover)

The entry level External Credit Risk Rating of the new borrower for takeover proposals is BBB-
and for other than takeover proposals is BB+. For the purpose of determining entry level rating
only, the Unrated Account shall be treated at par with BBB.
 The credit proposals of the new borrower having External Credit Risk Rating below the Entry Level
Rating shall be considered by next higher sanctioning authority not below HLCC-GM.

External Credit Risk Rating of the Borrower.
Existing Borrowers (Additional/ Enhancement of Credit Facilities)
The Branch Incumbents/ Cluster Head and CMLCC-HCB, as per normal Delegated Powers, can
consider additional/enhancement of Credit Facilities within their Delegated Powers for the borrowers
having the External Credit Risk Rating B & better, i.e., for borrowers having External Credit Rating
of C and D, Branch Incumbents/ Cluster Head and CMLCC-HCB shall have no powers to sanction
additional/ enhancement credit facilities. For the purpose of determining entry level rating only, the
Unrated Account shall be treated at par with BBB.
 However, HLCC-GM /HLCC-ED / CAC / MCB can consider additional/enhancement of credit
facilities to the borrowers irrespective of the External Credit Risk Rating within their respective
Delegated Powers.
Review/Renewal of Credit Facilities

The respective sanctioning authority as per normal Delegated Powers can review/renew the
borrowal accounts within their Delegated Powers irrespective of the External Credit Risk Rating of
the Borrower.
Any Schematic lending or Sector Specific policy
The threshold External Credit Risk Rating for New Borrowers and additional Exposure (including
Adhoc) to Existing Borrowers under schematic lending/ Sector Specific policy shall continue to be
governed by respective specific guidelines.
The restriction of entry level rating for lending to restricted industries/Sector shall not apply to:
Trading activities undertaken in respect of the list of restricted industries.
Micro & Small Enterprises/ other activities falling under Priority Sector undertaken in respect
of the list of restricted industries
Finance to Gems, Diamonds and Jewellery Sector
The following activities shall be classified under the Gems, Diamonds and Jewellery sector:
Manufacture of jewellery & related articles (of precious metal* and gemstones other than
diamond) and minting of coins.
Diamond cutting and polishing
*Precious metal shall include Platinum, Gold and Silver.
 Manufacture of imitation Jewellery and Gold/Silver plated Jewellery shall not be considered under
Gems, Diamonds and Jewellery Sector. The restrictions imposed on Gems, Diamonds and Jewellery
Sector shall, however, continue to be applicable on all types of borrowers (manufacturing as well as
trading of diamonds, gems & Jewellery).
 In view of the current slowdown in the gems and Jewellery sector, all fresh/additional/
enhancement proposals for finance to gems and Jewellery sector shall be as under:
The respective sanctioning authority can consider credit proposals (fresh/additional/
enhancement) upto Rs.5 Crore within their respective Delegated Powers subject to availability of
100% collateral coverage.
The proposals (fresh/additional/ enhancement) for finance to gems and jewellery sector above
Rs.5 Crore shall be considered at Head Office. However, renewal of credit limits at existing level
may be considered by the respective sanctioning authority as per Delegated power chart.
Conflict Diamonds :
Conflict diamonds are diamonds that originate from areas controlled by forces or factions opposed
to legitimate and internationally recognized governments, and are used to fund
military action in opposition to those governments, or in contravention of the decisions of the
Security Council.
Financing to Hindu Undivided Family (HUF) entities
HUF is governed by Hindu Law and every coparcener of Joint Hindu Family, whether adult or minor
or unborn child in the womb has got right in HUF property. The rights of the minor in the HUF
property cannot be put to stake for the purpose other than the family benefits or benefits of
minors.
The guidelines on financing to Hindu Undivided Family (HUF) entities are as follows:
a) Credit Facilities
Branch Incumbents shall have no powers with respect to financing of Hindu Undivided Family
(HUF) entities. The credit facilities to Hindu Undivided Families can be considered by Cluster Heads/
CMLCC-HCB/ Credit Committees at Head Office.
The Delegated Powers with respect to accepting assets of Hindu Undivided Family as security in
third party borrowal account shall vest with HLCC-ED/CAC/MCB. Branch Incumbents /Cluster Heads/
CMLCC-HCB shall have no powers with respect to accepting assets of HUF as security in in third
party borrowal account.
b) Loan against Deposit

The respective sanctioning authority can consider Loan against Deposit to HUF entities where the
Deposit is in the name of HUF within their Delegated Powers. The same shall be treated as SELF
deposit for the purpose of Delegated Powers, RoI and Margin.
The respective sanctioning authority can consider Loan against Deposit to the Proprietorship Firm
where proprietor of the firm is HUF and the Deposit is in the name of HUF and vice-versa within
their Delegated Powers. The same shall be treated as SELF deposit for the purpose of Delegated
Powers, Rate of Interest and Margin.
Cluster Heads/ CMLCC-HCB/ Credit Committees at Head Office shall have power to grant loan
against Deposit if the Deposit receipt is in the name of the Karta and the advance is sought by HUF.
The same shall be treated as Third Party deposit for the purpose of Delegated Powers, Rate of
Interest and Margin.
Branch Incumbent shall have no powers to grant loan against Deposit if the Deposit receipt is in
the name of Karta and the advance is sought by HUF.
In cases where Deposit receipt is in the name of HUF and the advance is sought by Karta in
individual capacity, such cases shall be considered by HLCC-ED/CAC/MCB within their respective
Delegated Powers. The same shall be treated as Third Party deposit for the purpose of Delegated
Powers, Rate of Interest and Margin
Branch Incumbent/ Cluster Heads/ CMLCC-HCB shall have no Delegated Powers in cases where
Deposit receipt is in the name of HUF and the advance is sought by Karta in individual capacity.
CREDIT FACILITIES -FUND BASED AND NON FUND BASED

Term Loans – Some important points.
a) Promoter's contribution of at least 20% in the total equity is normally expected.
b) The other basic parameters would be The Net Debt Service Coverage Ratio, i.e. exclusive of
interest payable, which shall normally not go below 2. On a gross basis average DSCR shall not be
below 1.5. In case of highly capital intensive/infrastructure projects, DSCR of less than 1.5:1 (up to
1.2:1) may be considered on case to case basis.
c) As regards margin and/or security, this will depend on Debt Equity ratio which should not
normally be above 2:1 i.e. debt should not be more than 2 times the equity contribution. However,
in case of capital intensive industries, the same may be considered up to the level of 3:1.
d) These parameters are indicative in nature and shall be applied depending upon the nature of a
particular project.
e) In case a term loan is prepaid by the borrower from ‘not out of own sources’, one time pre-
payment charges of 2% on the total outstanding balance shall be levied. Similarly, in
case a Working Capital Loan is prepaid by the borrower for shifting to other Bank / FI, Onetime pre-
payment charges of 1% of the total sanctioned limit shall be charged
f) The overall Term Loan component of the Bank‟s Credit Portfolio (Excepting Term Loans covered
under Agriculture, SME & Exports) shall be controlled so as not to normally exceed 60% of the
Bank‟s total fund based advances)
g) Chartered Accountants certificate for end use of funds shall be obtained in all cases of Bank‟s
exposure of Rs.5.00 Crore and above.
h) Obtain a Certificate from Chartered Engineer, confirming the progress of civil work and
installation of plant and machinery is in accordance with the project report in all cases of Bank‟s
exposure of Rs.5.00 Crore and above to less than Rs.50.00 Crore
i) Certificate from Lender's Independent Engineer (LIE) confirming the progress of civil work and
installation of plant and machineries is in accordance with the project report shall be obtained. This
certificate should be obtained for verification of creation of assets invariably in all projects involving
technical expertise where bank is having exposure of Rs.50.00 Crore and above.
j) The maturity profile of Term Loan (inclusive of gestation period) shall be as under:
S.N. Nature of Term Loan Maturity Profile for Asset Liability
Management
1 Short Term Loan Below 3 years
2 Medium Term Loan 3 years and above but below 5years
3 Long Term Loan 5 years and above but upto 7years
4 Term Loan for Infrastructure Over 7 years
Applicability of TEV Study :

Techno-Economic Viability (TEV) Study report shall be required in the following cases:
All new industrial projects, diversification projects.
Restructuring and accounts under CDR/Joint Lenders‟ Forum (JLF). In Consortium accounts
where we are a member bank, the TEV/Viability Study obtained by the Lead Bank shall be
accepted.
Non-industrial Projects i.e., Real Estate, Hotels, Hospitals, Educational Institutes, etc.
Infrastructure projects.
The applicability of TEV Study in terms of project cost is as under:
Project Cost TEV Policy Guidelines
Upto No TEV Study is required, provided the sanctioning authority gets detailed
Rs.10 Crore financial appraisal of the project done and is satisfied on the viability of the
project.
However, considering the technology involved and other related risks, if the
sanctioning authority feels in specific cases that TEV study is required, the same
may be stipulated.
Over TEV study is required to be carried out by any one of the following:
Rs.10 Crore a) Bank‟s internal TEV cell.
to b) Consultant empanelled by the Bank.
Rs.300 Crore c) By other banks/ Financial Institution/ Financial Agency provided that exposure
taken by our Bank should be less than or equivalent to the exposure taken by
that Bank/ Financial Institution/ Financial Agency.
Over The TEV study shall be done by an external agency.

Rs.300 Crore
Note:
i) The above guidelines are for carrying out TEV study in respect of new/ existing borrowers
(diversification projects). In case of rehabilitation proposals (Restructuring and CDR accounts)
viability study is mandatory.
ii) In case of expansion, incremental cost of project is to be considered for conducting / waiving
TEV study.
Issuance of Guarantees having maturity beyond Ten Years :

The Board of Directors of the Bank in the meeting dated 23.06.2009 has approved the policy for
issuance of bank guarantees for a period longer than ten years. The modalities/ operating
guidelines are as under:
i. BGs for periods beyond 10 years and upto 15 years shall be approved on case to case basis for
projects with duration of more than 10 years. Maximum guarantee period shall be restricted to 15
years.
ii. The Branches shall not allow issuance of Bank Guarantee having maturity beyond 10 years unless
otherwise permitted by the competent authority. The Cluster Head/CMO-CB shall be the competent
authority for permitting issuance of such bank guarantees on case to case basis for proposals falling
under their power / CMO-CB (in case of Classic Branch).
iii. The cases falling under Head Office powers shall be permitted by the competent authority at
Head Office.
iv. Such guarantees shall be reported to Risk Management Department for placing the same to
Asset Liability Committee (ALCO) to consider the impact of very long duration guarantees on Asset
Liability Management of the Bank.
v. The BG shall have a specific clause to the effect that the Bank‟s liability under such BG would
decrease with the progress of the projects and the format thereof would be got vetted by legal
retainer.
Issuance of Bank Guarantees With Automatic Renewal Clause

Keeping in view the request of the borrowers for issuance of bank guarantees with automatic
renewal clause, the Board of Directors in the meeting held on 31.03.2007 approved that the Bank
can issue bank guarantees with Automatic renewal clause in case of guarantees issued in favour of
the Government Departments who insist on such a clause.
However, the Branches shall have no delegated authority to allow issuance of bank guarantees
on behalf of customers with automatic renewal clause.
The delegated authority to permit issuance of bank guarantees on behalf of customers with
automatic renewal clause is vested with respective Cluster Heads/ CMH-CB/ Vertical Head at HO
and need not to be routed through respective credit committee.
Applicability of Joint Lending Arrangement (JLA)

New Borrowers
The following category of borrowers seeking credit facilities (both fund based and non-fund
based) from more than one Public Sector Bank shall be financed by the Bank mandatorily under
Joint Lending Arrangement (JLA):
1. Borrowers availing aggregate credit limits (both fund based and non-fund based) of Rs.150 Crore
and above.
2. All non-investment grade borrowers (External Credit Rating below BBB or
equivalent), irrespective of the amount of exposure.
 Existing Borrowers of Our Bank
In case any existing borrower of our Bank is availing credit facilities (both fund based and non-
fund based) under Multiple Banking Arrangement, where the aggregate credit limits (FB+NFB) of
the borrower are Rs.150 Crore & above or the External Credit Rating of the borrower is BB &
below or equivalent, irrespective of the amount of exposure, all efforts shall be made to
ensure that such exposures are brought under JLA in a time bound manner.
In cases where our Bank has extended the highest credit, a meeting of all financing banks shall
be convened to adopt the leader of JLA and established JLA in a time bound manner.
Further, in case the borrowal accounts enjoying credit limits below Rs.150 Crore from more than
one bank and are having External Credit Rating of AAA/AA/A/BBB or equivalent, the bank
will be free to enter into a JLA.
Existing Borrowers of our Bank seeking enhancement in credit facilities
In case any existing borrower of our Bank is availing credit facilities from more than one bank,
where the aggregate credit limits (FB+NFB) of the borrower is below Rs.150 Crore and are having
External Credit Rating of AAA/AA/A/BBB or equivalent, where further enhancement would
take the aggregate limits to above Rs.150 Crore, the Bank shall consider all the credit facilities to
such borrowers jointly by the concerned financing banks under JLA.
 Existing Consortium Arrangements
The borrowers of our Bank who are already having formal consortium arrangement with limits
below the defined threshold limit shall continue under such consortium arrangement.
The lead bank in a syndicate should not reduce or downsell its share for a minimum
period of two years without the consent of other co-lenders.
Sub-Committee under Joint Lending Arrangement (JLA)
• A Sub-committee, comprising at least two member banks having a combined exposure of
not less than 50% of the total exposure should be formed, for deciding all matters relating
to appraisal, sharing of income and monitoring of the accounts, at the time of initial
creation/ formation of the JLA.
• Issues referred to the Sub-committee must be decided upon in maximum 30 days (at Sub-
committee level 10 days, and at a higher level 20 days).
• The Sub-committee shall be authorized to issue No Objection Certificate (NOC) on behalf of
the JLA for any purpose.
• Wherever our Bank is acting as Lead Bank or is having 2nd highest exposure under JLA, the
Bank shall preferably be the member of Sub-committee constituted for the JLA.
Minimum share of the Bank as member Bank under JLA
For WC exposure (FB+NFB) below Rs. 1000 Crore
To ensure meaningful participation, it shall be our Bank‟s endeavour to have a minimum share of
10% of the exposure based on merits of the case.
 For WC exposure (FB+NFB) of Rs. 1000 Crore & above
It shall be endeavour of our Bank to have a minimum share of 10% or Rs.100 Crore, whichever is
higher subject to merit of the case.
In case our Bank has extended term loan to the borrower under JLA, the Bank shall also
participate in the working capital finance on pro-rata basis.
In case our Bank or any other member bank of the JLA are not willing to participate in Working
Capital finance, other banks may also provide working capital finance, subject to compliance with
other conditions contained in these guidelines.
To that extent, the working capital JLAs can be distinct and separate from term lending
syndication / arrangement.
Loan Applications for lending to MSE Sector
The time frame for disposal of loan applications of MSE borrowers in line with BCSBI-Code of
Bank‟s Commitment to Micro and Small Enterprises (MSE) is as under:
SIZE OF LIMIT TIME NORMS FOR DISPOSAL

Loans upto Rs.5 Lakhs Within two weeks of receipt of loan application provided it
is complete in all respects and duly accompanied by a check
list.
Loans above Rs.5 Lakhs Within three weeks of receipt of duly completed loan
and upto Rs.25 Lakhs application provided it is complete in all respects and duly
accompanied by a check list.
Loans above Rs.25 Lakhs Within four weeks of receipt of duly completed loan
and upto Rs.1 Crore application provided it is complete in all respects and duly
Loans above Rs.1 Crore Within six weeks of receipt of duly completed loan
application provided it is complete in all respects and duly
Loan Applications relating to other than MSE borrowers
The time frame for disposal of loan applications of other than MSE borrowers in line with the BCSBI-
Code of Bank‟s Commitment to Customers is as under:
Credit Limits upto Rs.20 Lakhs to other than MSE borrowers
Proposal for Export and Non Export Credit
Sanction of fresh/enhancements 30 days
Renewal of existing credit limits 21 days
(*)Sanction of adhoc credit facilities 7 days
(*) Sanction of adhoc credit facilities shall be subject to guidelines issued from time to time
Credit Limits above Rs.20 Lakhs to other than MSE borrowers
Proposal for Export Credit Non-Export Credit
Sanction of fresh/enhancements 30 days 45 days
Renewal of existing credit limits 21 days 30 days
(*)Sanction of adhoc credit 7 days 15 days
facilities
(*) Sanction of adhoc credit facilities shall be subject to guidelines issued from time to time.
The Branches/Clusters should ensure that the loan application provided to the prospective
borrowers includes check-list of papers /documents required for appraisal of the proposal.
The Loan applications received by the Branches/Clusters should be acknowledged on the day of
receiving the application at the Branch/Cluster after ensuring that the loan application is complete
in all respects and is accompanied with papers /documents required for appraisal of the proposal as
per check-list.
Rejection of Loan Proposals
The loan applications pertaining to SC/ST, MSME, Education Loan and Exports borrowers cannot be
rejected by the sanctioning authority under whose powers the same falls. In such cases, the
delegated authority to decline/ reject such credit proposal shall be:
Sanctioning Authority Delegated Authority for Decline /

Rejection
Udbhav Branches CMH(Branch Business)
Classic Branches CMH(Classic Business)
Cluster CMH (Respective Cluster (MSME/RAG)
Head Office Respective Sanctioning Authority
In addition to the above, the Branches shall not reject any credit proposal because of any deviation/
relaxation sought by the prospective borrower from the extant guidelines. The respective Cluster
Head/CMLCC-HCB shall deal with such request for deviation/ relaxation (as the case may be) as per
Bank‟s policy and may consider/ decline/ reject credit proposals based on the merit of the case.
Sanction of Loan Proposals Declined By Higher Authorities
• If a higher authority has declined a proposal (including NBG), the lower delegatee cannot
exercise his Delegated powers in that particular case without the permission of the higher
authority in writing.
• Proposals(including NBG) rejected/declined by higher authorities should not be entertained
at lower levels even if such sanctions fall within lower level functionary‟s Delegated powers,
without permission of the higher authority (which has declined the proposal) in writing.
NBG:
The cut-off limit for ‘Expression of Interest’ approval from New Business Group (NBG) shall be
above Rs. 50.00 Crore in case of borrowers dealing in Thrust and General area of Lending.
However, the cut-off limit for ‘Expression of Interest’ approval from New Business Group (NBG)
shall be above Rs. 10.00 Crore in case of borrowers dealing in Restricted area of Lending.
Sr. No Cut-Off Limit NBG Authority

1 New Borrower Upto Rs. 50.00 Cr No NBG required
Above Rs. 50.00 Cr NBG at HO headed by MD & CEO/ED
2 New Borrower New borrower whose group concern(s) is dealing with the Bank for last
whose group three years with satisfactory performance of all the group concerns
concern is and atleast one such group concern (existing) is enjoying minimum
dealing with exposure of ` 10.00 Crore & above are exempted from the purview of
Bank New Business Group (NBG) approval.
3
Existing All existing Borrowers seeking additional facilities are exempted from
Borrowers the purview of NBG approval.
The validity of the ‘Expression of Interest’ approval granted by NBG shall be three months from the
date of approval
CATEGORIES OF ADVANCES EXEMPTED FROM NBG
The following categories of advances are exempted from New Business Group (NBG) approval:
Exposures secured by 100% cash margin.
All existing Borrowers seeking additional facilities.
New/ existing borrowers seeking finance for Schools (imparting education upto 12th
Standard) and falling under priority, shall be exempted from the purview of NBG for Loan
upto ` 50.00 Crore.
Exposures to Public Sector Undertakings both Central and State Government.
New borrower whose group concern(s) is dealing with the Bank for last three years with
satisfactory performance of all the group concerns and atleast one such group concern
(existing) enjoying minimum exposure of Rs. 10.00 Crore & above.
In case of existing borrower falling under restricted industries/activity for NBG approval
where additional exposure proposed to be taken by the Bank as a part of JLF Corrective
Action Plan package, Administrative approval shall not be required to be obtained from NBG
at Head Office.
The adhoc facilities are exempted from the purview of ‘Expression of Interest’ approval.
Further, in case of existing borrower falling under restricted industries/activity where additional
exposure proposed to be taken by the Bank as a part of JLF Corrective Action Plan package,
Administrative approval shall not be required to be obtained from NBG at Head Office.
Closure of Current Accounts of our borrowers who are having Current Accounts
with other banks
• In case, it comes to notice that our borrower is maintaining a current account with some
other bank outside the borrowing arrangement, the matter should be taken up with the
borrower for closure of the current account.
• Simultaneously, the matter should be brought to the notice of the concerned bank and the
said bank should be asked to close the current account within a period of 15 days failing
which the matter shall be reported to RBI in consultation with the concerned Cluster
Monitoring Office/ Head Office. (Reference: HO/CAD/81/2014-15/721 dated 06.12.2014)
Closure of Current Accounts of our borrowers who are having Current Accounts
with other banks
• In case request is received from other banks for closure of current accounts of our
customers who are enjoying credit facilities from other banks, the matter should be taken up
with the borrower immediately for closure of the account.
• The branches/clusters are advised to act promptly as delay in action in such matters could
be perceived as abetting to siphoning off of funds and is liable for penalty under Banking
Regulation Act, 1949.
Loan Appraisal Format for Processing of Credit Proposal
Standardized Loan Appraisal Formats:
Sl. Loan Applicability

No. Appraisal
Format
1 LF-82 For borrower with aggregate exposure of above Rs.10.00 Crore (excluding
Retail/ Agriculture/ Schematic lending with specific format of appraisal),
irrespective of sanctioning authority.
2 LF-82A For borrower with aggregate exposure of above Rs.1.00 Crore to upto
Rs.10.00 Crore (excluding Retail/ Agriculture/ Schematic lending with
specific format of appraisal), irrespective of sanctioning authority. (Circular
reference: HO/ RMD/137/2016-17/1169 dated 08.03.2017)
3 LF-81 To be used for credit proposals with aggregate credit facilities (FB+NFB)
above Rs.10.00 Lakhs to upto Rs.1.00 Crore (excluding Retail/ Agriculture/
Schematic lending with specific format of appraisal), irrespective of
sanctioning authority. (Circular reference: HO/ RMD/136/2016-17/1161
dated 06.03.2017)
4 LF-2 Loan application cum appraisal/ sanction form for all retail schemes. The
said format shall also be applicable for Oriental Uttam Vypari uptoRs.10.00
Lakhs (Old Format of LF-2)
5 LF-3 Loan application cum appraisal/ sanction form for all Agriculture loans.
6 LF-5 Loan application cum appraisal / sanction form for OGC loans.
7 LF-83 Annual Review of clean overdraft facility to staff under the bank scheme.
8 OBLS Format for OBLS to be used for cases falling under Branch/ Cluster/ CMO
level.
9 Mudra- Appraisal-cum-Process note for MSME loan upto Rs.50000/-
Sishu
10 LF-71 Format for limited/short review for extension in validity of sanction at
existing level with existing Terms & Conditions.
The detailed guidelines on loan appraisal format shall continue to be governed by guidelines
circulated by Parent Vertical, from time to time.
System of Assessment of Working Capital Credit Limits
Turnover Method (Upto Rs.5.00Crore)

The working capital limits of the borrowers with working capital limits up to Rs.5.00 Crore in
case of MSME units/other units is computed on the basis of 20% of their realistic projected
turnover subject to the condition that a minimum margin of 5% of turnover shall be brought
in by the promoters/borrowers as their own contribution
Where the margin contribution of the borrower is less than the minimum 5% prescribed, the
working capital limits shall be assessed correspondingly lower in proportion to (1:4) the ratio
of the margin being brought in by the borrower.
Where the margin contribution of the borrower is less than the minimum 5% prescribed, the
working capital limits shall be assessed correspondingly lower in proportion to (1:4) the ratio
of the margin being brought in by the borrower.
In case, the margin available is higher than the minimum required margin, the same shall be
accordingly taken into consideration (deducted) for arriving at MPBF.
Wherever the nature of business activity so warrants, the Bank may apply traditional
method of lending (based on holding levels of Inventory, Receivables and Creditors) and
sanction need-based limits, including activities of fast moving consumer goods, where the
turnover is very fast and limits assessed on turnover method may be very large in relation to
actual requirement. In such cases, the limits be fixed on the basis of average stock,
receivables and creditors held by the borrower. This system may also be applied in case of
Software & Technology units for limits upto Rs.2.00 Crore.
However, in no case the concept of chargeable security laid down for calculation of Drawing
Power (DP) on monthly basis be diluted.
MPBF System (Above Rs.5.00 Crore)
The MPBF system (As per Bank‟s Advances manual) shall continue to be followed for all
borrowers with working capital limit above Rs. 5.00 Crore.
For calculating MPBF, the DALC should be considered as a part of MPBF.
The buyer‟s credit being availed by the borrower should be factored while assessing working
capital limits (FB/NFB). The buyer credit should be monitored to ensure that the period of buyer‟s
credit is in line with credit period of Letter of Credit.
As regards BG, the same should be included in MPBF calculation if BG is issued for working capital
purpose only.
The above MPBF assessment will be valid where the bank is a Sole banker as well as under
Multiple Banking Arrangements.
In cases where the working capital limits are under consortium/Joint Lending arrangement, the
lead bank‟s practice for assessment of the same shall be followed. In cases where our Bank is the
Lead Bank, the MPBF system or the system agreed to by all the Member Banks on the basis of
consensus shall be applicable
Cash Budget System
The cash budget system envisages providing of working capital by the bank based on the peak
deficit projected as per the cash flow statement. The detailed methodology of MPBF under Cash
Budget System is enumerated in Bank‟s Advances manual.
This is applied to certain seasonal industries such as tea & sugar and to specific industry such as
Information technology and software (for limits above Rs.2.00 Crore).
Besides, sanctioning authority may apply the cash budget system where they feel this system is
more appropriate as in case of construction contractors
Benchmark Financial Ratios

The financial strength of the borrower client should be adequate in relation to the project
size/volume of operations proposed to be undertaken and risks involved therein.
Industry-wise benchmarks for financial ratios such as Current and Debt Equity Ratio, Profitability
Ratios and Debt Service Coverage Ratio can be arrived at after detailed study of each industry
based on size, location, etc.
The benchmark Current Ratio in case of working capital limits upto Rs.5.00 Crore shall be 1.17
& for working capital limits beyond Rs.5.00 Crore shall be 1.33 and for sugar industry 1:1 during the
peak season.
The benchmark Debt Equity Ratio (DER) shall be up to 2:1. However, in respect of SME,
capital-intensive industries/ Infrastructure projects the same may be considered up to 3:1 on case
to case basis.
Total outside Liabilities to Adjusted Net worth Ratio (Leverage Ratio) shall be less than
4:1. However, in respect of SME, capital-intensive industries/ Infrastructure projects & trading
concerns (where creditors are generally very high) relaxation in Leverage Ratio upto 6:1 may be
considered on case to case basis.
The relaxation in Current ratio, debt equity ratio and leverage ratio is not to be permitted on a
general basis but on case to case basis justified on the basis of:
• Capital intensive nature of the project where the capital investment is substantial and own
contribution would work out higher in case debt equity ratio of 2:1 and leverage ratio of 4:1
is considered. Finance requirements for Infrastructure projects are huge and pro-rata
owner‟s contribution on the basis of debt equity ratio of 2:1 and Leverage ratio of 4:1 is
difficult to be brought in considering the amount involved. To mitigate this risk,
infrastructure projects have built in mitigates, such as escrow accounts besides tighter
monitoring. In such cases, relaxation in Debt equity ratio upto 3:1 and Leverage ratio upto
6:1 is justified on a case to case basis based on all relevant factors.
• While calculating debt equity ratio / leverage ratio unsecured loans may be taken as
quasi-capital provided they are long term in nature. However, these relaxations will be
subject to obtention of undertaking that the level of such unsecured loans shall
remain at the projected level during the currency of bank finance.
• Subordinated debt/ mezzanine debt may also be considered as part of quasi capital keeping
in view their nature. These types of debts should be subordinated to all other creditors.
Debt Service Coverage Ratio
•In case of term loans, Net Debt Service Coverage Ratio, i.e. exclusive of interest payable,
this shall normally not go below 2. Minimum Average Gross DSCR of 1.5:1 will be considered
as reasonable requirement for new as well as existing connection.
• In case of highly capital intensive projects/ infrastructure projects, DSCR up to 1.2:1 may be
considered on case to case basis. This is In view of the long gestation period and time
required in generation of cash flows in case of capital intensive units and infrastructure
projects, the relaxation shall take care of specific cases where the same is warranted.
• Similarly, risk factor is relatively lower where repayments are assured by way of annuity
payments from the Government Department / lease rentals. In such cases, DSCR upto 1.3:1
may be considered.
• Besides, in many large construction contracts/ real estate projects repayment is projected
through other avenues such as advance/lease payments. In such cases cash flows from
such sources may also be taken into consideration while calculating DSCR.
Relaxation in Benchmark Ratios (other than takeover accounts)
Financial Ratio Relaxed Benchmarks by respective Sanctioning Authority
Current Ratio • Upto 1.10:1: (Working Capital limits upto 5.00 Crore)
• Upto 1.17:1: (Working Capital limits above 5.00 Crore)
• The sanctioning authority may take a view and satisfy them while
accepting a lower current ratio and the reasons may be suitably
recorded.
• While taking a final view on the current ratio and/or projected
level of current ratio, the sanctioning authority may examine
various options to improve the ratio such as exploring possibility
of injection of additional funds and / or ploughing back of profits,
stipulations for not declaring dividend / non withdrawal of profits,
reduction in the level of non-current assets and liquidation of
investments outside business, if any, within a reasonable time.
Debt Equity Ratio • 3:1(other than SME, capital intensive industries ,infrastructure
projects)
• 4:1 (in respect of SME, capital intensive industries ,infrastructure
projects)
Leverage Ratio • 5:1(other than SME, capital intensive industries, infrastructure

projects and trading concerns)
• 6:1 (in respect of SME, capital intensive industries, infrastructure
projects and trading concerns)
DSCR • CMLCC-HCB shall be delegated authority for permitting relaxation
in credit proposals falling under the delegated power of BI-Classic
Branch.
• Cluster Head/ CMLCC-HCB/Credit Committees at Head Office may
permit relaxation in credit proposals falling with respective
delegated power.
The relaxation in Benchmark Ratios as approved in the Loan Policy shall be subject to the following
conditions:
Evaluation of risk litigant available to the Bank in cases where relaxation is being permitted
shall be done and recorded in the process note.
Relaxation as above shall be considered selectively and on case to case basis for borrowal
accounts with internal credit risk rating of OBC 1 to 6 by the sanctioning authority and
cogent reasons thereof shall be recorded in the process note.
Relaxation shall not be considered in benchmark ratios in OBC 7 and below rated accounts
without prior approval of the next higher sanctioning authority. However, HLCC-ED/
CAC/MCB shall be the competent authority to consider relaxation in Benchmark Ratio for
such cases falling within their respective Delegated Powers.
For relaxation beyond the above mentioned relaxation in the ratios, prior approval shall be
obtained from the next higher sanctioning authority before permitting the relaxation.
However, cases falling under the delegated power of sanctioning authority at Head Office,
further relaxation may be permitted by the respective sanctioning authority on case to case
basis.
For renewal of accounts, where the current ratio is below the benchmark levels, the
sanctioning authority shall explore all possibilities of improving the current ratio to the
benchmark levels by injection of additional funds and / or sloughing back of profits,
stipulations for not declaring dividend / non withdrawal of profits, reduction in the level of
non-current assets and liquidation of investments outside business, if any, within a
reasonable time.
For Takeover Proposals, relaxation in the benchmark financial ratios shall be permitted
on case to case basis at HO by HLCC-ED/CAC/MCB only. For credit proposals falling under
the powers of Cluster Head/CMLCC-HCB/HLCC-GM, the relaxation in benchmark financial
ratios shall be permitted by HLCC–ED. However, for credit proposals falling under the
powers of HLCC-ED/CAC/MCB, the respective sanctioning authority can consider relaxation
in benchmark financial ratios.
Impotent points for NEC and Valuation of property :

The Bank vide Circular No: HO/RMD/25 /2009-10 /761 dated 25.01.2010 has stated that in
cases of proposals involving Rs.50.00 Lakh and above, two independent opinion /NEC should
be obtained from Bank‟s empanelled advocate
In context of Valuation of the Property (ies) charged and / or to be charged to the Bank as
primary and / or collateral security, Where the realizable value of any of the properties is
Rs.5.00 Crore & above as per first valuation report, the second valuation of such
property shall be got done. Further, the second valuation shall be got done from
another valuer appointed competent authority as stated under Bank‟s valuation policy
The validity of valuation report starts from the date of valuation report and maximum
validity period of a valuation report shall be 2.5 years from the date of valuation
report. Accordingly, it shall be ensured that all the property (ies) mortgaged to the Bank
shall be revalued once in 2.5 years as per Bank‟s Valuation Policy.
Credit facilities exempted from the purview of Legal Vetting of documents
The following credit facilities shall be exempted from the purview of Legal Vetting of Documents:
1) Loans to staff members (under Staff or General Loans Schemes) which are not secured by
immovable property (ies).
2) Loan against self-Deposit to an individual.
3) Loan against Third Party Deposit to an individual where the Deposit Receipt is also in the name
of an individual.
4) Loan to individuals against Shares/Bonds /Debentures /Mutual funds, NSC, LIC Policy and other
Government securities.
5) Purchase of Government cheques, Pay orders, bank draft issued by Scheduled Commercial
Banks.
6) Occasional cheques purchase and withdrawal against un-cleared instruments/cheques in case of
non-borrowal accounts. (In case of borrowal accounts, Occasional cheques purchase and
withdrawal against un-cleared instruments/cheques is done within Over Limit and no documentation
is done in case of Over Limit.)
7) Credit facilities up to Rs.10.00 Lakhs sanctioned under Government Sponsored Schemes.
8) Oriental Green Card (OGC) up to Rs. 10.00 Lakhs.
9) Credit facilities covered under Mudra Scheme
Credit facilities up to Rs. 10.00 Lakhs sanctioned under Retail Credit Schemes which are not
secured by immovable property (ies).
Authority for carrying out Vetting of Loan Documents
The guidelines on vetting of the documents before disbursements are as under:
Limits up to Rs. 1.00 Crore Local Legal Counsel on the Bank‟s panel
Limits above Rs. 1.00 Crore Legal Retainer irrespective of sanctioning authority
& up to Rs. 5.00 Crore
Limits above Rs. 5.00 Crore Law Officer of the Bank irrespective of the
Borrower belonging to MCB/LCB sanctioning authority
vertical at HO.
In case Law Officer is not in office (on leave/on tour etc.), designated alternate Law Officer
shall vet the loan documents. Resolution & Recovery Department at Head Office will designate
alternate Law Officer. Similarly, in case the Legal Retainer is not available, the Loan
documents shall be vetted by other Legal Retainer.
 In case of Adhoc facilities, the vetting of documents in case of Adhoc facilities shall be
done by the authority (Law Officer/Legal Retainer/Local Legal Counsel) in whose powers
vetting of regular sanction falls.
Vetting of documents in Specific Sectors:
The vetting of the documents of all the credit proposals (fresh/ additional/ enhancement)
pertaining to Commercial Real Estate, Hotels, Lease Rentals and Trusts / Societies shall be
done as under:
Limits up to Rs.5.00 Crore Legal Retainer irrespective of sanctioning
authority
Limits above Rs.5.00 Crore Law Officer of the Bank irrespective of the
sanctioning authority
Vetting in case of Takeover Accounts

In case of takeover accounts, since the original documents are with the existing banker, the legal
opinion shall be obtained on the basis of photocopies of the chain of property documents at the
time of release of the credit facilities.
 After receipt of original documents, the vetting in case of all credit facilities (except Vehicle,
Education and Personal Loan up to Rs. 10.00 Lakhs) shall be done as follows:
Limits up to Rs. 1.00 Crore Legal Retainer irrespective of sanctioning
authority
Vetting in case of Agricultural Land

• Agricultural Land mortgaged in agricultural advance
• The guidelines on vetting of the documents before disbursements are as under:
Limits up to Rs. 1.00 Crore Local Legal Counsel on the Bank‟s panel
Limits above Rs.1 Crore & up to Rs. 5.00 Legal Retainer irrespective of sanctioning
Crore authority
• Agricultural Land mortgaged in Non-agricultural advance
• The vetting of the documents of all the credit proposals where agricultural land has been
mortgaged for non-agricultural purposes shall be obtained from the Law Officer irrespective
of the loan amount sanctioned.
RETAIL CREDIT PRODUCTS
Various Retail Loan Schemes
1. Oriental Home Loan Scheme (Housing Loan – HL)
2. Oriental Education Loan Scheme (Education Loan – EL)
3. Oriental Vehicle Loan Scheme (Vehicle Loan – VL)
4. Oriental Mortgage Loan Scheme (OMLS)
5. Oriental Personal Loan Scheme
a. Personal Loan Schemes
i. Govt./ PSU Employees (OPLS - Govt.)
ii. Corporate Employees (OPLS – Corp.)
iii. Pensioners (OPLS – Pension)
iv. Personal & Vehicle loan for existing large & Mid-Corp customers
v. Personal Loan Scheme for Doctors- Architects-Chartered Accountants
vi. Oriental PL for GLPP dated 20.11.2017
b. Customized Schemes
i. For BSNL employees (MoU extended till 05.04.2018)
ii. For Central Govt. Employees (Retail Circular dated 15.09.2016)
iii. For employees of Maruti Udyog Ltd. (Retail Cir Dt 15.09.2016)
iv. For employees of Delhi Metro Rail Corporation Ltd. (Retail Cir Dt 15.09.2016)
v. For employees of DAV Public School (Retail Circular dated 24.05.2016)
vi. For employees of Military Forces/ Paramilitary Forces (Retail Cir Dt 03.10.2016)
vii. Tata Housing Company Ltd. (Retail Cir Dt 08.11.2016)
viii. For employees of DRDO (Retail Cir Dt 28.04.2017)
ix. Tie up with Mahindra & Mahindra, for all Vehicles Goods and Passengers (extended
upto 30.06.2017) Ref-Retail-323- 18.07.2017
x. PL-HL-VL through Bank Bazar (Retail Circular dated 09.11.2016)
xi. Customized Personal Loan Scheme for HMSI-Retail 23/17-18/325 dt 19.07.17 &
amended vide Retail-457 dated 12.09.2017
6. Financing against Govt. Securities
7. Oriental loan against gold ornaments
8. Oriental Earnest Money Finance Scheme
9. Oriental Reverse Mortgage Scheme
10. Loan against bank’s own deposits
11. Loan Against Future Rentals for Individuals (29.05.2017)
Various forms, annexure and documents required for Retail Loans:-

The documents/ Annexure mentioned below are indicative only, please refer to extant Credit Policy/
Retail Loan scheme and be guided accordingly
Documents to be submitted by the Borrower
KYC Documents (Individuals)
Identity proof/ Residence and Age Proof –Passport/Driving License/Pan card/Voter’s ID card/Aadhar card
issued by UIDAI-OVD as per extant KYC guidelines
Operative Account of the applicant(s):- CC/OD/CA or SB should be opened
Photographs:- Recent Passport size colored photograph of applicant, co-applicant & guarantor
Mandatory Aadhar/ Mobile Number:- (RMD122 dt 17.05.2017):- Aadhar Number and mobile number of
borrower/ guarantor is mandatory for sanction of fresh/ enhancement/ review/ renewal of proposal under following
categories
Individual Borrower(s)
Proprietor/Partners/Promoter Directors in case of Proprietorship, Partnership and Limited Liability
Partnership Firms/Companies
Individual Trustee/member/Constituent in case of Trust, Society, AOP
Individual Guarantor(s) irrespective of the constitution of the Borrower
(In case of existing customers of above categories, efforts shall be made to obtain/ update Aadhar/Mobile)
If, No Aadhar Number:-Obtain Aadhar Akd Slip > within 60 days obtain Aadhar
If, no mobile number:- Cluster Head / CMLCC-HCB / HLCC-GM / HLCC-ED / CAC / MCB can consider the credit
where Mobile Number is not available, within their respective Delegated powers. Classic branch shall seek
permission from the CMLCC-HCB.
Retail Loan application form and Annexure
Loan application Form -LF2 (Retail 1098 dated 16.02.17: Use of New Application Form - LF-2 (Annexure-1) for
all retail loan scheme for Individuals only (except loan against deposit, govt. securities/LIC & Gold Loan-
LF4 has been discontinued)
ECS debit authority.
Names of Legal heirs of borrower(s) and guarantor (s) on Affidavit duly notarized.
In case of loan falls under PMMY obtain Anx A and Anx B (for Shishu) and Loan application as prescribed by MUDRA
for PMMY loans up to 10 lakh be obtained.
Income Proof
For Salaried: Salary certificate issued by the employer / Income Tax return/Form 16/Statement of Bank Account
(at-least 6 months)
For Pensioners:- Copy of PPO, Bank statement (at least 6 months)
For Agriculturist: Record of land holding & cropping pattern or any other proof of income.
For all other individuals: Last 2 /3yrs. Income Tax Return & computation sheet / Bank A/C statement.
Property documents/Other Documents
Title clearance report from advocate and valuation report from architect on Bank's panel (all documents/papers
suggested by advocate and valuer will be required)
For acquiring premises/ land and construction on ownership basis for running the business- Letter of Allotment/
Agreement to sell, construction plan duly approved by the competent authority, necessary approvals from statutory
bodies, estimate of cost of construction/ renovation from Architect.
Details of Immovable Collateral Securities Offered along with proof of ownership with complete chain of Title deeds,
latest House Tax Receipt, Income Tax and Other Statutory dues clearance certificates, wherever required.
Appropriate documents like Memorandum of deposit of title deed/Mortgage deed for creating charge over the
property in favour of our Bank depending upon the nature of charge, wherever applicable.
Specific Documents
New Vehicle 2nd Hand Car
Quotation from authorized dealer for vehicle to be Particulars of vehicle to be purchased and copy of
purchased. Registration Certificate of vehicle (Original to be
produced at the time of disbursement.
(Loan Doc -35/5.1) waived in vehicle Loan Agreement to Sell between Seller and Purchaser
Account. In order to mitigate the risk, the Prescribed Transfer Form duly executed by the Seller for
contents of the POA be taken in the form of onward submission to RTO
undertaking/affidavit from the obligants along
with form no 29 and form no 30 of RTO.(enclosed
with the circular)
A copy of letter addressed to the Dealer indicating Copy of receipt of up-to-date deposit of Road tax/other
Bank’s Finance and directing him to send receipts and taxes. Latest quotation of the vehicle from authorized
issue Invoice in the joint names. dealer
Comprehensive Insurance Policy of the Vehicle. Comprehensive Insurance Policy of the Vehicle.
Joint Registration Certificate of the Vehicle. Joint Registration Certificate of the Vehicle.
Copy of Bill of the Vehicle duly authenticated Copy of Bill of the Vehicle duly authenticated
Liquid Securities CDR/FDR, NSCs/ Insurance Policies etc.
Documents/ Proof of ownership of offered movable collateral security like FDR/NSC/LIP etc.
LTR-1 (application)
Forms/ Documents during processing and after Post Sanction
Key Facts Statement, Pre/Post Sanction-Check List, CIBIL check list-Due diligence etc
Processing is done as per Schematic Process Note or as per LF81-82 as the case may be.
Processing should be done through OLS wherever the provision of processing of particular scheme is available in the
software.
Various Loan Documents
General Term Loan Agreement DOC-5 Home Loan agreement DOC-48
Agreement of Guarantee DOC-11 Acquiring premises or DOC – 6 shall also be
(wherever required) construction of building obtained.
Common Agreement (in all cases) DOC-38 Education Loan Agreement DOC-30
Cash Credit/ OD/ Clean OD DOC-4
Demand Promissory Note DOC-19 Please refer to document chart and scheme wise circular for
details & obtain appropriate documents
Internal Rating
Internal Credit Risk Rating is mandatory except in case of Staff/ 100% secured loans against liquid securities &
loans under Shishu category(PMMY)
IMaCS Rating As per IMaCs rating models, Rating should be under acceptable grade.
(N.B. for cases above 5 crore* external rating (except exempted category) also required in addition to internal
rating as per extant guidelines*)
Acceptable CIBIL Score and Credit History

CIBIL is mandatory in all cases (except Staff Loans and loans against liquid securities-refer to RMD guidelines)
CIBIL-i scan (commercial) now required where new CA (Other than in individual capacity) is opened.
Consumer Segment TU (-1, 3 to5 and 567& above), PL (-1 and 651 & Above) acceptable
Credit History in case of commercial as well as consumer segment. Default on account of credit card only can be
accepted by the respective sanctioning authority. Other default and less than benchmark refer to next higher
authority. For details refer to extant guidelines.
1. ORIENTAL HOME LOAN SCHEME

Master circular HO/Retail/978 dated 26.02.2018
Purpose 1. Purchase of land and construction of a house thereon.
2. Construction of house, where in the plot/land already owned by the applicant.
3. To buy built up / semi built up house or flat.
4. To extend/improve/repair, the existing house or flat.
5. To buy a flat under construction or proposed to be constructed
6. For Home furnishing, furniture / fixtures embedded to structure or otherwise.
7. To take over of housing loan from other Banks/ financial institutes.
Eligibility Individuals or group of specified individuals (co-borrowers) having an assured source of
Criteria regular income viz. salaried / self-employed persons, professionals, businessmen,
farmers etc.(including Staff, NRIs & PIOs)
Age Criteria Minimum Age: 18 years as on date of application
Particulars Maximum Repayment Age
For salaried (with pension ) & other Up to 75 years {Wherever repayment period is granted
individuals up-to 75 years, possibility be explored to add co-borrower
as per home loan scheme. Ref HO/Retail/32/17-18/636,
13.11.17}
For salaried (non pensionable) Up to 60 year or superannuation, which is earlier
Maximum • Housing Loan- No upper ceiling (*conditions apply). The maximum permissible Bank finance
Loan limit can be calculated on the basis of income of individual as well as joint borrower, as the case may
be.
Components a) Purchase price of plot/house. e) Purchase price & installation charges of Rooftop
of finance b) Construction cost of the house. Solar PVs and Non-Solar Lighting, wiring and
c) Conversion charges for conversion of other such fittings.
the house/flat / plot from leasehold to f) Premium of Group Secure Scheme (GSS)
freehold. g) GST paid to the Builders; Ref HO/Retail/32/17-
d) Cost of furnishing, repair, renovation & 18/636, 13.11.17
additional construction
Component Stamp duty, Registration and other Documentation Charges where cost of
for LTV ratio house/dwelling unit does not exceed Rs10.00 Lakh can be considered for LTV ratio/
only Project cost for finance.
Margin Loan Amount Margin LTV ROI Intt Table
Code
≤ 30.00 Lakh ≥ 20% ≤ 80% 1 YEAR MCLR MT633

≥ 10% to < 20% > 80% to ≤ 1 YEAR MCLR+0.10%
90%
> Rs 30.00 Lakh ≥ 25% 1 YEAR MCLR
≤ 75% MT633
to Rs 75.00 ≥ 20% to < 25% 1 YEAR MCLR+0.10%
≥ 75% to <
Lakh 80%
> Rs 75.00 ≥ 25% 1 YEAR MCLR
≤ 75% MT633
Lakh
Net Take Home Gross Annual income minus all existing deductions including IT deduction & Proposed loan
Income installment) with details as under:
Gross Annual Income Net Take Home Relaxation by Under RLCC

Up to Rs 5 lakh 50% 5%
> Rs 5 Lakh to Rs 10 Lakh 40% 5%
> Rs 10 Lakh 30% 5%
Primary / Primary- Equitable/ Registered Mortgage of financed property/property proposed to be
Collateral furnished
Security Collateral- Nil
Rate of Interest Refer to Margin Criteria @ 1 Year MCLR OR 1 YEAR MCLR+0.10 (WHERE
above MARGIN IS LOWER)*
For 3rd house onwards 1 YEAR MCLR + 0.50% (Treated as CRE-exposure)
Interest switch -
During the currency of housing loan, if borrower feels that the current prevailing card rate of
over option to
Home loan is in favour as compared to interest actually applied in his account, he can use the
existing switchover option by paying one time charge of 0.50% of outstanding amount, subject to
borrowers maximum Rs. 50000/- {N.B. borrower can exercise this option any number of times. There is no
charge if no change in spread Retail-867 dated 14.12.16, i.e. if we change BR+1% with
MCRL+% no charge, but if we change 1yMCLR+1% with 1yMCLR there will be charge as stated
above}
Income MPBF be arrived at by taking into consideration average income of past 2 years. The 2 ITRs
should not be filed in the same financial year.
Where no ITR Under Housing For All max. 10 lakh; in other cases max. 5 lakh. As per I.Tax rules, for
filed annual income up to Rs. 2.50 lakh, filing of ITR is not mandatory. Obtain duly
notorized self declared affidavit of income from the applicant.
Co-borrower 1. For income purpose- only Spouse, Son/Sons, Daughter(s), Daughter in law,
Parents*
2. Owners of property-Owners of the property can be co-borrower irrespective of
Relationship
3. Income of parents can be considered sub to 75/60 age criteria.
4. Owner is co-borrower irrespective of age (if income is not taken into account for
MPBF)
5. Clubbing of income of joint owner of the property, irrespective of relationship is
permitted for calculation of MPBF.
6. Partnership/proprietorship income can also be considered for MPBF calculation in
case the firm is exclusively owned by the applicant. The firm shall be the
guarantor in Home Loan. * Ref HO/Retail/32/17-
18/636, 13.11.17
Process fee* 0.50% of the loan amount, subject to maximum of Rs 20000/- plus service tax, if any.
Monsoon From 01.07.17 to 30.09.17 (HO/Retail/207-16.06.17) 75% of Process Fee waived
Bonanza during Monsoon Bonanza (HL and CAR new/old individual and Car non-individual
also)
Festival 100% waiver during 21.09.17 to 31.12.17 under Festival Bonanza Scheme (ref.
Bonanza Retail-482, 19.09.17).
Other Charges Prepayment Penalty / documentation charges- NIL
Repayment Repayment irrespective of age of Maximum 40 Years {480 months}
Period dwelling unit (including moratorium Ref HO/Retail/32/17-18/636, 13.11.17
period)
For Home Furnishing Loan Maximum 120 months
For Home Loan –Up to 360 months, including the moratorium period of 18 months subject
to age of dwelling unit as under:
Moratorium Maximum 18 months from date of first disbursement. (it means that the installment shall
Period commence not later than 18 months whether construction (if the case may be) completed or not.
During moratorium period interest shall be payable on “as and when due basis” but it can also be
capitalized also.
EMI Fixation After the moratorium period is over, the account must be rephased & fresh EMI should be fixed as per the
outstanding amount as on that date and not on the full sanctioned amount. With every subsequent
disbursement the account must be rephased and fresh EMI should be fixed as per the outstanding amount on
the disbursement date for the remaining period.
Construction It is different from moratorium period and allowed as under (1) In case of construction by
Period borrower on own plot/ plot to be purchased and construction thereon:- 24 months from the date
of first disbursement (2) Construction Period for Govt. / Builder Flats-48 months (3)
Construction Period for other than Govt. / builder flats (self construction)-24 months
HL to the 'Permitted; However, in case of smaller projects having upto 20 units only and director already owns a house
Director in the in his/her name, then the director is not permitted to avail Home Loan in the same project. Ref
builder firm HO/Retail/32/17-18/636, 13.11.17
Interest Subvention (Home Loans)

Some builders offer 24 to 36 months EMI holiday period to the buyers of the flats, in such cases-
For Builders The maximum permissible moratorium period will be 24/36 months as per the
Project Builder plan of that project or upto the date of possession of flat whichever is
approved by earlier.
the Bank Note: In case, the possession is not offered after 24/36 months as per
offering such
terms of the Builder-buyer agreement, then EMI will start and has to be
interest
Subvention
paid by the borrower.
Margin: Loan amount upto 30 lacs: 5% upfront booking amount and 5% at
{Ref: the time of possession will be collected from the borrower.  Loan amount
Retail/866- above 30 lacs and upto 75 lacs: 10% upfront booking amount from Borrowers
14.12.2016} and 10% at the time of possession will be collected from the borrower.  Loan
amount above 75 lacs: 10% upfront booking amount and 15% at the time of
possession will be collected from the borrower.
The interest for the construction period shall be borne by the Builder and will be
deducted upfront of payment made to builder.  The payment to the builder is to
be made after deducting the interest for the remaining period of moratorium. 
Amount deducted shall be credited back to the borrowers loan account.
Second home loans, takeover of home loan accounts, loan to NRI’s facility is available as per the
detailed scheme. In case of 2nd HL, the repayment of 2nd HL shall be as per repayment eligibility for the
2nd HL (i.e. not linked with the repayment schedule of the 1st loan)
In case of Takeover of HL-The account to be taken over should be classified as standard Regular by the previous
banks/FIs and amortization chart provided by the previous banks/rls should be tallied with the account statement.
There should not be any rephasement / reschedulement in the account in the last 3 years. Note: condition of
Certificate’ from Fls/Banks waived.
HO/Retail/239 dated.28.06.17:-Clarification regarding Takeover Norms in HLs- Cluster Head shall have authority
hitherto enjoyed by RLCC-RH (DGM) pertaining to all other delegated lending powers. The deviation authority for
cases of RAG shall be HLCC-GM(Retail). Please refer to the cir for details.
Clarification:- (i) All compulsory/ statutory deductions such as PF/ Income Tax/ Existing EMIs etc are to be
considered for arriving at net take home. (ii) All other deductions which are voluntary/optional in nature such as
Additional PF/ PPF/ Premium of insurance policies etc shall not be considered for calculation of Net Take Home in
Housing Loan
2. HOME FURNISHING LOAN
Purpose Change of flooring Remodeling of bathrooms/kitchen POP work Wood work i.e.
wardrobes / wooden cabinets /doors / windows / grills / gates/ plastering of
walls/all repairs/Removal of structural defects/electric works Painting/polishing
of house
Max Loan Home furnishing Loan –
Amount Maximum Rs.15 Lakh (if carpet area is ≤ 1500 Sq. Ft.);
Rs. 25 Lakh (if carpet area is more than 1500 Sq. Ft.)<> (restricted to 30% value of
existing house)
ROI & Margin 1 Year MCLR & Margin is 25%
Assessment (i) Margin Criteria, Maximum 75% of the cost of furnishing
(MPBF)
(ii) Maximum 30% of value of the existing House
(ii) Assess HL eligibility on Net Take Home Criteria as in case of HL without considering
EMI of existing HL (if any). Eligible Home Furnishing Loan shall be Difference
between this eligibility and already sanctioned HL
(iv) Max. Home Furnishing Loan shall be lowest of (i), (ii), (iii) and (iv)
Repayment & Maximum Repayment period 120 months and maximum moratorium period 6 months.
moratorium
3. Oriental Top Up Loan Scheme (For existing HL borrowers) HO Retail 678 dated 10.11.2016
Purpose Any legitimate purpose, Nature of facility Term Loan, PS/NPS –as per usage of funds
Eligible Existing Standard Regular HL borrowers, subject to
1. The HL should have run satisfactorily for 24 months (ex. Moratorium)
2. Account must be Standard Regular at the time of Sanction of top up loan
3. Construction of house completed and mortgage is created.
4. No documentation formalities is pending
5. In the name of existing borrowers only and no new borrower to be added
6. Top-up loan to staff not permitted(Retail/224-22.06.17)
Amount of Loan Minimum 2.00 lakh and Maximum 50.00 lakh
MPBF 1. 75% of present RV of the property less(-) present outstanding of HL
2. Net Take Home 40%
Security Extension of charge over already mortgaged property in HL account.
Rate of Interest Top up loan Rate of Interest Scheme Code Intt Table Code FC-10
code
≤ 25 Lakh 1yMCLR+0.50 % TL-677 ML050 CL-28
> 25 Lakh 1yMCLR+1.00 % TL-677 ML100 CL-28
Age Minimum 20 years; Maximum (salaried without pension 60, all other 70)
Process Fee 0.50% subject to max. Rs. 10000/- +Service Tax
Other No pre-payment penalty. Penal interest 2% on overdue amount.
Repayment Maximum 15 years; Rating Model-ImaCS (per); Deviation Authority-HLCC (ED)
Step Down EMIs as in case of HL permitted. (Retail/224-22.06.17)
Takeover of Top- Top up HL along with HL/Home furnishing/Rep-reno loans which is running standard
up Home Loan regular for past 24 months or more in existing Bank/Fis-may be taken over on merits by
RAG Clusters/ Branches within their delegated powers. (Retail/224-22.06.17)
Top up loan in Permitted immediately after takeover of HL, subject to existing HL was standard regular
freshly taken for more than or equal to 24 months in the existing Bank/FI. (Retail/224-22.06.17)
over HL
4. ORIENTAL CAR/VEHICLE LOAN SCHEME FOR GENERAL PUBLIC
References:-Ho/Retail/977 dated 26.02.2018 (Master Circular)
Purpose • For purchase of all variants of new two & four wheeler (non-commercial use – to be
registered as private vehicle)
• For purchase of Second Hand Cars- To be used as private vehicle only.
Income Criteria For two Wheelers –Rs10,000/- per month gross income
For Four Wheelers:Rs30,000/- per month gross income (Retail/216 dt 19.06.17)
Eligible Persons a) Individuals: Self + Spouse, Father, Mother, Brother, Son, Daughter-in-law & unmarried
daughter can be co-applicant. {Loan can be taken in the name of family member even if
she/he does not have any income as a co-borrower. Retail/1012 dated 12.01.17}
1) Salaried Individuals (Gross Salary < 50000 pm) confirmed / minimum 1 year of
service. The length of previous employer’s service(s) may also be taken into
consideration for the criterion of 1 year service. Note if PM Gross Salary is Rs.
50000 or more, 6 months condition instead of 1 year condition.
2) Professionals (including doctors) : Minimum 1 Year Service (Retail/216 dt
19.06.17)
b) Business entities: - In case of new Business Entity, Firm, Company where there partner,
prop., director is already engaged in some other business –condition of minimum 2 years
waived. In other existing cases the condition of 2 years established business. ITR must
have been filed for at least 2 years in all cases.
c) Agriculturist based on their land holding and repayment capacity.
d) Non-Resident Indians- Jointly with Resident Indians (close relative)
e) HUFs
Maximum Maximum loan for Two Wheelers - Rs 10.00 Lac & Four Wheelers- Rs 100.00 Lakh
Loan Ceiling
Reimbursement 1. Reimbursement of finance for new four wheelers purchased out of own funds from the
of finance authorized Car dealer.
2. The reimbursement shall be within 3 months of purchase.
3. The loan shall be treated as financing for new vehicle.
Security Hypothecation of New 2-wheeler / 4-wheeler purchased out of Bank Finance. The
hypothecation charge shall be registered in the books of RTO.
Collateral For Two wheelers The borrower has to furnish one personal guarantee acceptable to
the Bank in case Gross Monthly income (per month) is less than Rs
30000/-.
For Four wheelers The borrower has to furnish one personal guarantee acceptable to
the Bank in case Gross Monthly income (per month) is less than Rs
40000/-.
Margin 15% on on-road cost
Components Show room price + one time road tax + Registration Charges & First year’s insurance cost
of finance
Net Take Home In case of subject to Net Take home criteria as under
criteria Individuals: Gross income <= Rs. 50000/- pm 40%
Gross income > Rs. 50000/- pm 30%
In case of Business Cash generations to satisfy the No Net Take Home
Entities repayment of the proposed loan Criteria
Co-borrower Spouse, Brother, Parents, Son, unmarried daughter, Daughter-in-law (Income of
co-borrower may be/ may not be) (in Case of NRIs refer to circular Retail126-
dated 17.05.2017)
Repayment For 2 Wheelers: Max. 84 EMI’s
Period For 4 Wheelers:- (if loan is upto 25 Lakh) Max 100 months, for Loan > 25 L- 120
months.
subject to following:
a) For Salaried (Non Pensionable) – Up to 65 years or superannuation
whichever is earlier.
b) For Salaried (With Pension) – Up to 70 years having regular source of
income.
c) For Others i.e. Business Class/ Professionals / Agriculturists etc. – No age-bar
The changes are applicable for customized schemes also (Cir Retail35/17-18/729
dated 12.12.2017)
Rate of Tenure Rate of Interest Intt Table *Additional concession of
Interest Code 0.25% in rate of interest
(Floating) For male borrower 1Y-MCLR ML050 for captive/ loyal
+0.50% customers (For definition
For female 1Y-MCLR ML040 see retail cir. Dt.
borrower +0.40% 20.03.15).
For Business 1Y-MCLR ML050
Entities +0.50%
Process fee* (i) If the customer directly approaching the branch-0.50% of loan amount subject to
minimum of Rs 500/- & maximum Rs 7000/- plus ST N.B.
(ii) If the Lead is generated through car dealers- 1% of loan amount subject to minimum
of Rs 500/- & maximum Rs 7000/- plus ST,
(iii) For Staff including retired NIL
Monsoon From 01.07.17 to 30.09.17 (HO/Retail/207-16.06.17) 75% of Process Fee waived
Bonanza during Monsoon Bonanza ((HL and CAR new/old individual and Car non-individual
also)
Festival 100% waiver during 21.09.17 to 31.12.17 under Festival Bonanza Scheme (ref.
Bonanza Retail-482, 19.09.17).
Other Charges Prepayment Penalty / Documentation charges/Foreclosure/Inspection Charges – NIL
Free Code PV01 for 4-wheeler and PV03 for 2-wheelers. Scheme Code TL651
Confirmation of HO/I&C/796 dated 28.11.2016 confirm registration of all Hypothecated Vehicles by sending SMS to
Registration 7738299899 type VAHAN<space>Registration number (Also HO/Retail/84 01.05.2015)
Takeover Cluster head is empowered to takeover new car loans sanctioned by other banks.
Retail/68/1235 27.02.17
Concession or HLCC-GM- (i) upto 5% in NTH criteria, (ii) Min. service condition for IT professionals, (iii)
waivement confirmed employee condition for salaried person etc for details refer to Retail/68/1235
authority 27.02.17
Payout to dealer Cluster head is empowered to pay payout of service charges to dealers. Retail/68/1235
27.02.17
5. Financing of Second Hand Cars

Amount Rs 25.00 lakh
Margin 25%
Rate of Interest 1 YEAR MCLR + 3.50% {ML350, PV02, TL652} REPAYMENT MAX 5 YEARS
Age of vehicle & Age of Vehicle Repayment Period
repayment If car is older than 3 yrs & up to 4 yrs. 36 Months
period
If car is older than 2 yrs & up to 3 yrs. 48 Months
If car is up to 2 yrs old 60 Months
Collateral One third party personal guarantee acceptable to the Bank. Minimum valuation of old car should
security be Rs. 5.00 lakhs
Process fee 0.50% of loan amount subject to minimum of Rs 500/- & maximumRs7000/- plus ST.
Check Points Only for personal use, Invoice authenticity by dealers, Driving license, repaying capacity
Disbursement Payment to sub-dealer should not be made and made only to the dealer. Further as per
of loan amount HO/Retail8/2016-17/188 dated 09.06.2016 payment to dealers be made through RTGS/NEFT
only and not by way of Demand Draft.
6. ORIENTAL EDUCATION LOAN SCHEME (STUDIES IN INDIA & ABROAD)

Reference :- Circular No. HO:Retail:01:2017-18:64 Date: 25.04.2017
Purpose The scheme aims at providing financial support to meritorious students for pursuing higher
studies in India & abroad with affordable terms & conditions.
Eligibility for Student who is an Indian national, meritorious student and has secured admission in an
loan institute recognized by a statutory body or by the Bank (through entrance test/merit based
selection process).
Eligible Studies in India – Courses leading to diploma/degree conducted by Colleges / Universities
courses approved / accredited by Government of India/State Government/UGC / Government
/AICTE /AIBMS / ICMR or any other statutory councils of India, including Graduation /
Post-graduation courses /Professional courses/ Courses like I.C.W.A., C.A., C.F.A, etc.&
Courses conducted by IIM,IIT,IISG,XLRI,NIFT,NID etc./ All Regular courses
conducted by Institutions categorized as A, B and others.
Studies Abroad- Graduation (professional/technical courses)/ Post Graduation (Courses like
MCA, MBA, MS etc.) offered by reputed universities& courses conducted by CIMA London,
CPA in USA etc. Diploma & Certification courses not permissible.
Regular Degree/diploma courses like Aeronautical, pilot training, Shipping etc. approved
by DGCA/shipping.
Second loan Second Education Loan is permissible for pursuing higher education
Components Fee payable to college/ school/ hostel, Examination/ Library/ Laboratory fee/Purchase of
of finance books/ equipments/ instruments / Travel expenses (Passage money for studies abroad,
College Bus fare in case of study in India)/ Purchase of computers/Insurance premium/Any
other expense required to complete the course.
Loan Category A Category B Other Institutions
Amount Rs 25.00 Lakh Without Collateral Rs 10.00 Lakh Without Actual as per fee
Security Collateral Security structure of Institution
In case higher loan limit is requested (from the above mentioned limit) for category A & B
institutions, 100% tangible security with value equivalent to loan amount is required.
Margin Category A Category B Other Institutions

NIL NIL <= 4 lakh NIL
> 4.00 5% (India); 15% (Abroad)
lakh
Interest During the currency of education loan, if borrower feels that the current prevailing card rate
switch over of Education loan is in favour as compared to interest actually applied in his account, he can
option to use the switchover option.{N.B.- This option can be used only once during the currency of
existing the loan & if there is no change in spread, no switch over charge is levied but if spread is
borrowers changed charge 0.50% of outstanding- Retail/57/867/14.12.16}
Process fee Loans for study in India: - NIL

Loans for study abroad: - Up to 4 lakh NIL. Above 4 Lakh 1% of loan amount to be
recovered up front, subject to minimum of Rs 10000+ Ser tax if any.
However, the fee would be refunded to the student by way of credit to the loan account on
availment of loan in borrower’s loan account. (excluding Service Tax if paid to government)
Rate of Institutions Rate of Interest
interest For Category A 1 Year MCLR {TL647 EL17
MCLNY}
For Category B 1 YEAR MCLR+0.50% {TL647 EL17
ML050 }
All others 1 YMCLR +1.75% (TL641 and TL642)
(Not covered under CGSFEL and covered by
Collateral Security)
For cases covered under CGSFEL 1 YMCLR +2.00% (TL641 and TL642)
(up to 7.50 Lakh only extended without
Collateral and T.P. Guarantee)
Special Rates:
1. Simple interest during moratorium period and thereafter the interest shall be
compounded.
2. Concession of 1% in rate of interest is allowed for moratorium period (study + grace
period), if the monthly interest is serviced regularly (monthly basis) during the
moratorium period.
3. 0.50% concession on rate of interest will be applicable to women beneficiaries, SC/ST
& disabled students. However, the 0.50% concession will be available for only one
characteristic.
Note: The rate of interest shall not fall below 1 Year MCLR in any case
Process fee Loans for study in India: - NIL
Loans for study abroad: - Up to 4 lakh NIL. Above 4 Lakh 1% of loan amount to be
recovered up front, subject to minimum of Rs 10000+ Ser tax if any.
However, the fee would be refunded to the student by way of credit to the loan account on
availment of loan in borrower’s loan account. (excluding Service Tax if paid to government)
Security A) For category A & B institutions
Institutions Loan Limit Collateral Security
For Category A institutions Up to Rs 25.00 Lakh NIL
Cat A (ISB-Hyd Campus) Up to Rs 30.00 Lakh NIL (Retail-
200;14.06.17)
For Category B institutions Up to Rs10.00 Lakh NIL
Note: In case higher loan limit is requested (apart from the above mentioned limit) for
category A & B institutions, 100% tangible security with value equivalent to full loan amount is
required.
B) For Other Institutions
• *Loan up toRs 4.00 lakh: No collateral security but co-obligation of parents /
guardian. In case of married person, co-obligator can be either spouse or the
Parent(s) / Parent(s)-in-law.
• *Loan aboveRs4.00 lakh & up toRs7.50 lakh: Collateral in the form of one
satisfactory third party guarantee, co-obligation of parents / guardian. In case of
married person, co-obligator can be spouse or the Parent(s) / Parent(s)-in-law.
• Loan aboveRs7.50 lakh: Mortgage of immovable property or any tangible security
having value equivalent to 100% of loan amount. Co-obligation of parents / guardian.
In case of married person, co-obligator can be spouse or the Parent(s) / Parent(s)-in-
law.
Assignment of future income in all cases.

*HO/Retail/09/16-17/192 dated 10.06.16:- (Credit Guarantee Fund Scheme for
Education Loans) All Education Loans up-to Rs. 7.50 Lakh (India and Abroad) sanctioned
from the date of this circular shall be covered under CGFSEL, hence no personal guarantee or
collateral security shall be obtained in such cases. AGF 0.50% of outstanding amount to be
borne by the Bank. Max ROI for eligible cases 1 year MCLR+2%.
Co- (For A Class Institutions): No parent/spouse co-obligation required in case of IIM-Ahmedabad,

obligation Bangalore, Calcutta, Indore, Kozikode, Lucknow, ISB-HYD campus, HLRI; for all other Class A
and Class B and Other category the existing norms of co-borrower shall remain same. HO-
Retail-200-14.06.2017
Credit Education loans for Cat ‘A’ institutions upto any amount, may be sanctioned on merit,
Rating irrespective of any credit rating. (Retail 925 dt 09.02.2018). SRM Chennai loans for MBBS/MD
upto 35 lakhs; BDS/MDS upto 25 lakhs & Paramedical Courses upto 7.50 lakhs may be
sanctioned, irrespective of any credit rating.
For Category B- upto 10 lakhs, irrespective of any credit rating on merits
For all other categories- upto 7.50 lakhs, irrespective of any credit rating.
Repayment 15 years irrespective of loan limit; i.e. Moratorium Period (Course Pd +Grace Pd) + Max. 15
Years
Cluster head is empowered to extend moratorium period 2 to 3 times (6 months at a time) due
to underemployment or unemployment of the student during life cycle of the loan. Simple
interest to be charged during moratorium period. {Retail 1132-27.02.17}
Cluster head is empowered to permit telescoping-stepped up installment repayment.{Retail
1132-27.02.17}
Insurance It is mandatory to arrange for life insurance policy on the students availing Education Loan
Place of (1) Cat “A” and “B” –Education Loan can be sanctioned/appraised/disbursed at
Disbursemen i) Place of domicile, or
t ii) Present place of posting of borrower/ co-borrower, or
iii) Branch nearby the institution of the borrower
(2) Other Institutions:-Preferably at place of domicile & same district

Takeover of Permitted subject to conditions –refer master circular supra
education
loans
Co-obligation In case of student is Orphan, Cluster Head is empowered to waive the co borrower condition
after obtaining 2 references about the conduct/ integrity of the student {Retail 1132-27.02.17}
In case of married person, co-obligation of spouse or parents or parents-in-law. Parental co-
obligation can be substituted by PG-cluster head empowered. {Retail 1132-27.02.17}
Education Loan facilities for Working Professionals for Part Time Courses and vocational courses are also
available.
List of loaning documents to be obtained before disbursement:- DOC-30 Education Loan Agreement, DOC11
Agreement of Guarantee (if required), DOC-38 Common Agreement, Affidavit/ undertaking as per Bank’s
Format, PDC, Receipts of fees duly verified by the student. Legal Heir Affidavit etc.
Appointment of DSA for sourcing Home Loan-Approved Builders/Developers will be paid for every lead
forwarded to the bank which gets converted into business as under
(a) Monthly disbursement up to 5 crore- 0.25% of loan amount (excluding GST & other taxes, if any)
(b) Monthly disbursement > 5 crore-0.30% of loan amount ( excluding GST & other taxes, if any)
(c) Max. Ceiling of Rs. 1.25 lakh per proposal.
(d) Minimum ticket size of loan should be 25 lakh at Metro/ Urban centers and 15 lakh at S. Urban centers
(e) Minimum lead 100 lakh for first payout
(f) Minimum repayment period 10 years
(g) No commission for Home Furnishing Loan.
For policy on other professional and ex-staff DSA refer to HO/Retail/930 dated 13.02.2018
7. Oriental Mortgage Loan Scheme

Reference Circular HO:Retail:67:2015-16:981 dated 08.03.2016; HO:Retail:36:2017-18:730 dated 12.12.2017;
Master circular HO: Retail: 45 :2017-18: 854 Date: 09.01.2018
HO: Retail: 53 :2017-18: 926 Date: 09.02.2018
Purpose TL/OD facility for specified purpose (i.e. investment in business/ personal expenses) against
Security of immovable property. Real Estate Business, speculative purpose Not eligible.
Eligibility 1. All Individuals & Joint owners who are income tax assesses for at least last two consecutive
years.
2. Individual with agriculture & allied activities
3. Staff members are also eligible
4. Company/firm jointly with their Directors/ partners are eligible
5. NRIs jointly with resident Indian are eligible
Type of Facility OTHER INDIVIDUALs and BUSINESS Salaried Employees
ENTITY
1. Term Loan or 1. Either TERM LOAN or
2. Overdraft 2. Overdraft Facility
Combo not permitted cir 730 dt 12.12.17
Income Last 2 ITRs On the basis of Latest Salary slip ( in case of vast
(Two IT returns not to be filed in same variation- average of last12 months’ salary)
financial year)
Assessment of Businessmen and other individuals Salaried Person (with pension option)
loan limit (1) 60% of RV of property (overall (1) 60% of RV of property (overall maximum
maximum limit) limit)
(2) 4 times of avg.net annual income of (2) 36 Months of gross income of salaried
last 2 years person
Whichever is less
MPBF shall be assessed on the basis of last Whichever is less
two years average income
Period of Loan Individuals and Salaried
a. Term Loan : Maximum up to 120 months repayable on EMI basis
b. Overdraft Limit: 120 months subject to annual review with progressively reducing limit on
monthly installment basis so as to liquidate the facility within the maximum period of 10
years.
(The Loan/Overdraft limit will be repayable up to maximum age of 75 years of Guarantor).

Security Mortgage or Registered Mortgage of the self occupied property (Residential/Industrial
L&B/Commercial standing in name of individuals/ joint owners/close relatives who will also
stand co-borrower/ guarantor (viz-spouse/parents/sons/unmarried daughters/daughters-in-
law/company/firm
Note in case of let out properties Higher Authorities are empowered to sanction the loan.
Properties let out to our Bank shall be considered as self occupied.
Loan against Agriculture Land/ Plot of land not permitted
In case minimum construction as per local laws has been done in case of non agriculture
land- property can be accepted.
Property for which clear title deed is available but construction is not as per approved map
plan, in such cases Loan can be granted against such property by taking the
realizable value of land only for calculation of MPBF
Clubbing of income and names of the borrower/ guarantor on the basis of ownership of property/
income of the obligants
Property in the Income of the following can be clubbed Loan in the name of
name of
Individual * Self, Spouse, Parents, Son(s), Individual + close relative in whose name income
Daughter(s), Daughter-in-law and is clubbed
unmarried daughters (max. 4 persons)
Joint Names Joint Owners and Income of close Joint Owners and close Relatives whose income
Relatives mentioned at above * has been clubbed
Partners Partner(s), Other partner(s) (whose Partner(s) & other partners in the
name is not in the property). individual capacity only.
Income of the firm can also be clubbed If the income of the firm has been clubbed, loan
which is not divided in partners. will be in the name of partners and firm will be
co-borrower
Firm Firm Firm:-No loan to individuals if property in the
name of the firm, only proprietor can avail loan
in individual name if property stands in the name
of the Firm
Director Director (income of company can also be Director (Ind. Capacity). If income of Company-
considered) Loan will be in the name of the company and
Director will be Co-borrower/Guarantor
Company Company Company
Classification of As per RBI/ bank norms of priority sector classification Loans not covered under priority sector
advances be classified as per business activity of the borrower
Exclusive Party shall undertake to deal exclusively with the Bank
dealing clause
Group Exposure Group Exposure norms applicable
Norms
Staff Cases Place of posting of the staff S. Authority
Staff posted at Corporate Office/RIs/HRDIs/Head of Vertical Head (Retail Credit) (General
Clusters/CMOs/Head of Classic Branches Manager)
All officers and workman posted at Head of Retail Cluster
branches/clusters/cluster monitoring offices/ CASA
back offices
All officers and workman posted at Classic Head of classic branches
Branches/Offices
Margin 40% of realizable value of property
Extension of Respective sanctioning authority is empowered to consider the extension of charge
charge within his/her delegated power
1.Property already mortgaged in any other loan – keep 150% VTL (value to loan ratio)
minimum for existing loan (o/s in case of term loan & sanctioned limit is case of overdraft) and
over and above limit, loan under OMLS can be considered up-to 60% of remaining value of
property
{The property can be kept as security in the account of owner or close relatives (viz.
spouse, parents, son(s), unmarried daughter(s) & daughter(s)-in –law or business concern
100% owned by the owner / such close relatives }
2.Property already charged in OMLS- Property value in excess of 200% of the limit (O/S in
case of term loan & sanctioned limit in case of overdraft) can be extended to cover other
facility(ies)
Repayment Age 1.For salaried (non-pensionable)- up to the age of superannuation
2. For salaried (with pension) & other Individuals- up to the age of 75 years
Note:- The same age criteria applicable for co-borrower, if his/ her income is considered for
calculation of eligibility, otherwise no age criteria for co-borrower
Net Take home Where monthly income is up to 50000/- 40 %
criteria Where monthly income is > 50000/- 30 %
Interest rate TL 1 YEAR MCLR + 2.25%; OD- 1 YEAR MCLR + 2.75%
Interest table For TL : BG 225, for OD : BG 225
code
Free code 10 OM 01
Scheme Code For TL : TL701, for OD : OD501 (non reducing), OD 507-monthly reducing, OD 508
Quarterly reducing
Process Fee 0.50% of Term loan; 0.10% of OD limit (to be charged at the time of annual review/renewal)
(NIL for Bank staff) Note:- Only for individual/ Joint Borrowers (Fresh-TL/OD)-100% waiver
during 21.09.17 to 31.12.17 under Festival Bonanza Scheme (ref. Retail-482,
19.09.17). However in case of renewal of OD; Process Fee at normal rate is to be charged.
Penal Interest 2% over & above normal rate of interest, on irregular portion/ amount and for the period of
irregularity due to any reason
Rating All accounts under OMLS are to be rated as per the approved specific internal credit risk rating
model (currently IMACs) applicable for Personal loan to individual’s scheme. In case of
Overdraft Limit rating to be done on annual basis at the time of review of limit. For
consideration of the loan under the scheme, the rating should fall within the investment grade
as per Loan Policy of the Bank
Servicing of 1.OD limit : Interest to be served as & when charged & principal to be reduced on
Interest /EMI monthly/quarterly basis so as to liquidate the facility within the repayment period.
2.Term loan : In equated monthly installment
Prepayment One time charges of 1 % of total O/S, in case of shifting of account to other bank.
penalty/ As RBI guidelines, the prepayment penalty under Retail term loan sanctioned on floating rate
foreclosure of interest to individual borrowers has been waived off. But not applicable to a) Loan facility
charges other than Term loan b) credit facilities sanctioned in favour of persons other than individuals.
Documentation NIL Loan Amount- Min Rs. 5.00 lakh Max amount- Not prescribed
fee
Insurance Insurance cover for mortgaged property obtained as per agreed bank clause
Inspection Inspection carried out as per bank norms on annual basis or at irregular intervals in case of
need.
For personal purpose – no inspection charges
For business purpose – charges levied as per loan policy or guided by RMD circular
Pre Sanction The pre-sanction visit shall invariably be conducted by the Branch official and the visiting
Visit official shall verify/certify that the property is self occupied by the borrower as well as his own
assessment on value of the property, besides other verification as per bank’s norms. This will
be part of the loan proposal. <> In case of Salaried Person, their Employment Certificate,
Salary Certificate & Form 16 shall be verified as well as ensure that the Signatory on it are
authorized Persons signing on behalf of the Organization.
OD in existing All existing overdraft accounts which may not be renewed / converted under new will
accounts continue on existing terms and shall be renewed at same level under the existing scheme
only. However, any fresh advance / enhancement shall be sanctioned as per revised scheme.
The possibility shall be explored for covering all the existing overdraft accounts on new terms
of the scheme.
Enhancement of I. Enhancement of overdraft limit can be considered after 3 years of sanction by the respective
Limit sanctioning authority as per his/her discretionary power on the basis of fresh assessment of
eligibility & security coverage (Fresh Valuation is must in case of enhancement)
II. The existing outstanding amount in overdraft limit shall be adjusted out of
revised/enhanced limit through transfer entry.
III. Before considering the enhancement proposal it must be ensured that the existing
overdraft limit under OMLS is running standard regular.
Enhancement of 1. Enhancement of overdraft limit can be considered after 3 years of sanction by
OD Limit the respective sanctioning authority as per their discretionary power on the
basis of fresh assessment of eligibility & security coverage (Fresh Valuation is
must in case of enhancement)
2. II. The existing outstanding amount in overdraft limit shall be adjusted out of
revised/enhanced limit through transfer entry.
3. Before considering the enhancement proposal it must be ensured that the
existing overdraft limit under OMLS is running standard regular.
4.
Fresh TL I. Fresh term loan can be considered after 3 years of sanction by the respective
sanctioning authority as per their discretionary power on the basis of fresh
assessment of eligibility & security coverage (Fresh Valuation be done)
II. New term loan account be opened.
III. Before considering the fresh proposal it must be ensured that the existing
term loan under OMLS is running standard regular.
Enhancement Enhancement in term loan and OD limit can be considered before 3 years of
of Term sanction if following condition are fulfilled:
Loan/OD MPBF eligibility was there at the time of initial sanction which can be extracted
before the from the initial process note and borrower requested for lesser amount at that
period of 3 time. Example: The borrower had availed a term loan of Rs. 4.00 lacs whereas
years his eligibility was Rs. 15.00 lacs. Now after 1 year, the borrower request for a
term loan of 11.00 lacs. As such the same can be considered as he was eligible
for Rs. 15.00 lacs at the time of original sanction.
8. ORIENTAL SCHEME FOR FINANCING AGAINST GOVT. SECURITIES/LICs ETC

1. Indian Nationals 18 years and above
Eligibility
2. Firms/companies provided the offered securities are in the name of those firms/companies.
Purpose To meet personal expenses/business expenditure except speculative/prohibited purposes.
1. Overdraft limit (renewable every year)
Type of Facility
2. Demand Loan (repayable in 36 months)
Amount of Loan Rs. 50.00 Lakh (maximum)
Govt. securities, PSU Bonds, Securities/Relief Bonds issued by RBI/ICICI/IDBI, NSCs, LIC
Security
Policies of LIC of India or any other such security transferable/assignable to the Bank.
1. 10% surrender value of insurance Policy
Margin
2. 25% of the face/accrued value of the security in other cases.
Rate of interest
1 YEAR MCLR + 2.00% p.a. with monthly rest
(floating)
Penal interest @ 2% p.a. over and above the normal lending interest rate shall be charged on
Penal Interest
irregular portion & for the period of irregularity.
Process/ upfront Rs.10/- per certificate with a minimum of Rs. 50/ + Service tax, if any. However, postal
fee charges, if any, shall also be recovered from the borrower.
Disbursement Through account of the borrower
9. Oriental Loan against Deposits
Reference HO/RMD/02/15-16/16 dated 06.04.2015
Purpose To meet personal expenses / business expenditure except speculative / prohibited purposes.
1. All Indian Nationals of 18 years and above.
Eligibility 2. Firms/companies.
3. Advance against deposits to Trust/Society /HUF/Club/Associations of Persons etc.
1. Overdraft limit (renewable every year)
Type of Facility
2. Demand Loan
As per delegated powers with the various authorities. (HLCC-ED, MCB and CAC has full
Amount of Loan
powers).
Pledge of duly discharged unencumbered deposit receipt issued by our bank only (Only
Security
parent branch).
S.No. Details of deposit On Face Value On accrued value
1. Advance against Self Deposits < 6 5% 10%
M residual period
MARGIN 2. Advance against Self Deposits 6 M 10% 10%
and more residual period
3. Advance against Third Party 15% 15%
Deposits
S.No. Details of deposit On Face Value On accrued value
1. Advance against Self Deposits < 6 1.5 % over the app 1.5 % over the app
M residual period ROI on deposit ROI on deposit
Rate of interest
2 Advance against Self Deposits 6 M 1.5 % over the app 1.5 % over the app
and more residual period ROI on deposit ROI on deposit
3. Advance against Third Party 2.0 % over the app 2.0 % over the app
Deposits ROI on deposit ROI on deposit
Penal interest shall be charged equal to clean overdraft rate of interest for the period of
Penal Interest
irregularity, in case the account is irregularly overdrawn.
RLCC-NIL. HLCC ED concession in ROI-up to 0.50% (Against Self Deposit) & up
Deviation
to 1.00% ROI relaxation. 3rd Party deposit. (latest circulars to be referred to)
Against Self Deposit and against 3rd Pary Deposit 50% concession in spread over the
Staff Cases BR/MCLR, subject to minimum BR/MCLR (in case of 3rd party deposit) {wef 01.04.2016
MCLR is applicable instead of BR}
Process/ upfront
NIL
fee
Disbursement Through account of the respective borrower
Description of Deposit
Self Term Deposit The deposit stand either in the name(s) of the borrower himself/borrowers themselves, or in
the names of the borrower jointly with another person
Third party Term The deposits do not stand either in the name(s) of the borrower himself/borrowers
Deposit themselves, or in the names of the borrower jointly with another person
Other Bank Deposits No Loan shall be granted against the deposit of Other Banks.
Res S. Authority can consider the loan against deposit to the Prop. Firm where proprietor is
HUF an HUF & Deposit is in the name of HUF and vice-versa. Same shall be treated as self
deposit for the purpose of delegated powers, ROI and Margin criteria.
10. ORIENTAL EARNEST MONEY SCHEME

Purpose To finance Earnest Money Deposit for applicants desirous of purchasing flats / plots under
scheme by State Housing Boards / Urban Development Authority (SHB/UDA).
Eligibility Any person or group of persons, singly or jointly having capacity at least to repay the Earnest
Money Loan.
Loan amount 100% of Earnest Money Deposit subject to maximum of Rs. 10.00 Lakh
Margin Nil
Rate of Interest 1 Year MCLR
Upfront interest (fixed for scheme period) to be recovered for the period of scheme.
Upfront Fee / NIL
Other charges
Security a) Lien on Earnest Money Deposit with SHB/UDA.
b) The lien of our Bank shall be got noted with the authority. After the draw, Earnest Money
Refund order of unsuccessful applicants shall be sent by the authority directly to the Bank
instead of the applicant.
c) Upfront Interest amount equivalent to period of draw (as declared at the time of launch
of scheme by the development authorities, normally 180 days) be deposited by the
borrower with the bank prior to release of loan and shall be kept under bank lien.
Safeguards:
a) A rubber stamp shall be affixed on face of the application form showing that application
money has been financed by them.
b) Get the Earnest Money Finance column ticked in the form and fill in the detail of bank in
the next column.
Repayment i) In case of non-allotment: Earnest Money Loan shall be adjusted out of the proceeds
of refund from SHB / UDA along-with interest and other charges.
ii) In case of allotment: If borrower requests for servicing balance installments payable
for purchase of plot/ flat, it may be considered subject to repaying capacity and eligibility
criteria as per Housing loan policy.
iii) In case of non-liquidation of Earnest Money loan due to delay in draw by
authority: Matter to be suitably taken up with relevant / appropriate SHB/UDAs as the
case may be.
Disbursement Entire Earnest Money Deposit (including margin) shall be paid directly to State Housing
Board/Urban Development Authority along-with application on behalf of borrower.
Documentation Loan application
i) Letter of undertaking from borrower (Annexure-A).
ii) Application-cum-Authority Letter from the borrower (Annexure-B).
iii) DP Note / Agreement to loan
iv) Other documents to be obtained:
a. Photocopy of Application
b. Two crossed Post Dated Cheques favoring Oriental Bank of Commerce
c. Identity & Residence Proof (such as Ration Card / Pan No./ Passport / Voter Card)
to comply KYC norms
11. ORIENTAL REVERSE MORTGAGE LOAN SCHEME

For receiving lifelong annuity (on monthly basis), to be used for sustenance or to supplement
Purpose
the cash flow stream of senior citizens in order to address their financial needs.
No. of borrowers Single or jointly with spouse in case of a living spouse
Minimum age of first
60 Years
borrower
Age of spouse 60 years and above
The residence (house/ flat) should be self acquired, self owned
Eligibility and self occupied.
Borrower(s) should have a clear and transferable title to the
Residence property in their names.
Residual life of property should be at least 30 years.
In case loan is sanctioned in the joint name of the borrower(s),
they must stay together in the mortgaged property.
Loan quantum Maximum Rs. 100.00 Lakh. The loan amount will be released on monthly annuity basis only.
AGE-GROUP MARGINS
FOR AGE GROUP 60 TO 70 40%
Margin
FOR AGE GROUP 70 TO 80 30%
FOR AGE GROUP ABOVE 80 25%
Loan period/ The tenor of the loan shall be up to 20 years or survival of any of the spouse whichever is
nature of earlier; thereafter periodic annuity payment will not be made.
payment THE LOAN SHALL BE EXTENDED AS REGULAR MONTHLY ANNUITY PAYMENTS DURING THE LOAN PERIOD
RATE OF
12.75% with monthly rest on Fixed Rate basis
INTEREST
PREPAYMENT PENALTY/ DOCUMENTATION & INSPECTION CHARGES-NIL
PROCESS FEE & 0.50% of total Loan amount or half of the first monthly annuity payable to borrower, whichever
OTHER is less, subject to maximum of Rs. 12,500/- only
EXPENSES 1. The legal fee/ charges stamp duty, registration charges, valuation charges, document stamp
charges, & insurance premium of property etc shall be borne by the borrower(s).
2. In the eventuality of non-payment of above said expenses, bank will recover these expenses
on pro-rata basis on the monthly annuity payable to borrower(s) within a period of up to 24
months.
SECURITY Equitable or Registered mortgage of un-encumbered residential property, in favour of the bank.
Oriental Personal Loan (TL) Schemes for,

12. Government Employees 13. Centre/State/PSUs and Pensioners & 14. OPLS for Corporate Employee
Scheme (12) OPLS Govt Employees (13) OPLS Govt (14) OPLS Corporate Emp.
(pensioners)
Eligible Person Employees of Centre/State Pensioners of Centre/State Permanent employee of
Govt/PSU and Govt Added Govt; Family Pensioners Corporate and other reputed
schools/Colleges also eligible ; Defense non-government organizations
/ institutions including college /
Pensioners; Ex-OBC staff
schools etc.
Purpose Any legitimate purpose, not To meet personal expenses Any legitimate purpose, not
speculative; including repayment including medical, bon voyage, speculative; including
of existing Personal Loan from family-liability/expenses. repayment of existing Personal
their existing Bank (not be excluding speculative purpose) Loan from their existing Bank
treated as takeover- Retail-1009 (not be treated as takeover-
date 11.01.2017) Retail-1009 date 11.01.2017)
Repayment period 60 months (Subject to remaining 60 EMIs subject to upper 60 months (Subject to
service) age ceiling remaining service)
Upper age ceiling Up to date of retirement Pensioners 75 Yrs, Family Up to date of retirement
Pensioners 70 Yrs
Experience/Length of Permanent and confirmed Pensioners/Family Permanent employee with
service employees Pensioners of Centre/State minimum 3 years service
Govt / Defense services
Scheme OPLS Govt. Employees OPLS Govt. (pensioners) OPLS Corporate employees
Salary Account of With OBC Pension Account with OBC Salary account with OBC
employee
Net Monthly income Minimum Rs. 10000 NA Minimum Rs. 10000
Margin NIL NIL NIL
ROI 1 YEAR MCLR+2.25% 1 YEAR MCLR+1.75% 1 YEAR MCLR+3.25%
Scheme (14) OPLS Govt Employees (15) OPLS Govt (16) OPLS Corporate Emp.
(pensioners)
Personal Guarantee Where gross salary is > 1 lakh Guarantee of spouse or (if One PG-Preferably of fellow
pm (& CIBIL TU and PL both not) any other family employee
scores are > 750) no PG member or third party
required. In other cases,
guarantee
One PG-Preferably of fellow
employee
Amendment (PG) For net Monthly Salary 1.00 lakh Not Applicable For net Monthly Salary 1.00
HO/Retail/199 dated and above and CIBIL Score 750 lakh and above and CIBIL
14.06.17 and above (Both TU and PL) no Score 750 and above (Both TU
PG required, sub to certain and PL) no PG required, sub to
conditions. Applicable for all certain conditions. Applicable
Customized schemes also. for all Customized schemes
also.
MPBF Criteria 15 Times of Gross Salary (Max (i) Defence Pensioners:-20 15 Times of Net Take Home
10 lakh) X Net Monthly Pension – Salary (Max 5 lakh)
(revised vide circular number Max 10 Lakh;

Retail/1013 dated (ii) Defence Family
12.03.2018) Pensioners, 20 X Net
Monthly Pension –Max 5
Lakh;
(iii) Other Pensioners
including other Family
Pensioners:- 18 X Net
Monthly Pension –Max 5
Lakh
Net Take Home 30% of Gross M Salary 50% of Gross M. Pension 30% of Gross M. Salary
Criteria
Undertaking etc Duly Stamped and notarized Undertaking/authority letter Duly Stamped and notarized
undertaking cum authority letter from pensioner addressed to undertaking cum authority
from employee addressed to the the employer/treasury will be letter from employee
employer stating that in case of obtained that in case addressed to the employer
any eventuality, his terminal pensioner wants to shift stating that in case of any
benefits to be released in favour his/her pension account to eventuality, his terminal
of OBC, for crediting in the salary another bank, NOC of the bank benefits to be released in
account maintained with the from Bank is to be obtained. favour of OBC, for crediting in
branch the salary account maintained
with the branch
Whether Staff eligible Not Applicable Yes, Staff pensioners are Not Applicable
eligible
Interest Table Code BL225 BL175 BL325

Free Code CL14 for Staff ST08 CL02 CL13
Scheme Code TL677 TL677 TL677
Process Fee 0.50% (minimum 500/-) 0.50% (minimum 500/-) 0.50% (minimum 500/-)
IMaCS Rating Personal Loan module Personal Loan module Personal Loan module
Inspection Charges NIL NIL NIL

Documentation Fee
Prepayment Penalty
CIBIL As per general guidelines As per general guidelines As per general guidelines
Classification Non Priority Sector Non Priority Sector Non Priority Sector
Fresh Proposals (From OBC) After 3 years of
satisfactory repayment record of
previous loan. Close first loan
with the proceeds of fresh loan.
(If existing PL from other bank)-
Fresh PL can be considered on
the basis of his/ her eligibility
without the condition of
liquidating the existing loan.
Penal Interest 2% on overdue amount 2% on overdue amount 2% on overdue amount
Loan application and LF2, LF4, Pre/Post Sanction, IMaCS, PDC/ECS/NACH, Due Diligence, CIBIL, CIBIL Check List, Check
other papers List for Retail Loans, Legal heir affidavit, Key Facts Statements. KYC-opening of operative account,
Undertakings, Salary Slip, Form 16/ ITRs, Process note and Sanction Letter, copy of PPO in case of
pensioners etc.
PPO PPO maintained with HO (Central Govt. Pensioners) and with Branch (State Govt. Pensioners).
Note:- Maintaining PPO with Bank is waived in case original PPO is maintained with
Employer/Treasury subject to – (i) Undertaking/authority letter from pensioner addressed to the
employer/treasury will be obtained that in case pensioner wants to shift his/her pension account to
another bank, NOC of the bank from Bank is to be obtained. (ii) The undertaking cum authority letter
shall be acknowledged from the employer/treasury and the same shall be kept in the record.
Corporate Employees Cluster Head is empowered to sanction loans up to 5.00 lakh of the employees of approved 2140
companies (HO: Retail: 201:15.06.17) not maintaining their salary account with the Bank.
Loan Documents Term Loan agreement-DOC5, Guarantor-DOC11, Common Loan agreement-DOC 38 etc
For employees/ (S. Authority) may sanction, if Gross Not applicable (S.Auth*) may sanction, if
pensioners not Salary >50000 PM. Borrower to submit Gross Salary >50000 PM.
maintaining salary NACH/ECS Borrower to submit
account with OBC NACH/ECS
Circulars HO:Retail: 58 :2014-15: 996 Date: Circular No. HO:Retail: HO:Retail:57:2014-15:997
23.03.2015, 44:2017-18: 853 Date: Date: 23.03.2015,
HO:Retail:66:2015-16:980 Date: 09.01.2018 HO/Retail/644 dated
10.03.2016 as amended from time to 09.11.2015 as amended
time HO/Retail/1013 dt 12.03.2018 from time to time
15. Oriental Personal Loan Scheme for Doctors, Architects and Chartered Accountants
Reference:-HO/Retail/72 dated 28.04.2017
Purpose 1. To meet personal/ family expenses, like marriage/education/family functions.
2. For purchase of consumer durables, gold / gold ornaments.
3. To meet expenditure on med cal treatment of self and/or dependent at
Hospitals/Nursing Homes registered with local Govt, bodies.
4. To meet travel expenses of legitimate travel by himself & family to cover travel cost,
hotel stay, and other travel related expenses.
5. Any other legitimate purpose excluding for speculation purpose.
Facility/ Term Loan , Non Priority Sector
Classification
Eligibility 1. Doctors, Architects and Chartered Accountants holding a qualified degree in their
Respective fields.
2. Minimum 3 years of working experience Note: Doctor must be holding
minimum Post Graduate Degree
Amount of Loan 1. 2 times of Average annual income of last two years to the maximum of Rs. 25 lacs.
2. The net take home salary: should not be less than 40% of gross income after
deducting the EMI of the proposed loan.
3. A stamped undertaking from the borrower shall be obtained that in no case the net
take home salary shall be less than 40% of gross income.
Minimum-Maximum Minimum Loan Amount: Rs. 5.00 lacs
Loan Amount Maximum Loan Amount: Rs. 25.00 lacs
Security One personal guarantee preferably of the spouse or any other individual acceptable to the
Bank having sufficient Net Worth. Note: Guarantee of spouse shall be accepted only
when he/she is working/professional
Margin NIL
Rate of Interest 1yMCLR+2.75%; Interest Table code ML275; FC10 CL29
Penal Interest 2% on overdue/ irregular amount.
Process Fee 0.50 % of subject to Minimum Rs. 500 plus G.S.T.
Other Charges Pre-payment NIL, Inspection Charges NIL,
Repayment 84 Months
Deviation No deviation allowed
16. Oriental Personal Loan Scheme for GLPP HO/Retail/33/2017-18/658 dated 20.11.2017
Particulars Terms & Conditions
Purpose For purchase of life insurance cover under group protection plan for home loan borrower
(s) only to safeguard their family's future from the housing loan liability.
Borrower Same as Home loan
Nature of Facility Term Loan
Classification Non-Priority Sector
Loan Amount As per premium amount
Computation of The loan limit shall be arrived as under:
Eligible Loan Limit a) Gross Income of borrower & co-borrower(s) (jointly)
b) Less: Their existing deductions including tax liability
c) Less: EMI/ repayments of other loans including loans which are
under moratorium period, to be factored according to repayment
schedule.
d) Less: The EMI of proposed personal loan
e) The residual income (take home) of borrower & co-borrower (s)
(jointly) shall not be less than 30% of their gross income
mentioned above at a)
Security NIL
Margin NIL
Rate of interest
Rate of Interest Table Scheme Free code 10
Interest Code Code
MCLR+0.50% ML050 TL677 CL32
Staff Not permitted

Penal Interest 2% penal interest over the normal lending interest rates on the overdue amount for
irregular period.
Pre-payment No prepayment penalty to be charged
Penalty
Process/ upfront 0.50% of loan amount subject to minimum of Rs. 500/- plus service tax, if any
fee
Rating Model The IMaCs rating model used for personal loans is used under the said scheme.
Disbursement The loan shall be released directly in favour of insurance company.
Repayment Up to 84 EMIs or repayment period of Home Loan whichever is less.
B.I. (Branch not mapped with Cluster Head/CMLCC/HLCC-GM/HLCC—
Cluster) ED/CAC/MCB
Discretionary Power Scale-I Scale-Ill
Scale-ll Scale-IV 10
Scale-Ill AGM 15
17. FINANCING AGAINST GOVT. SECURITIES/LICs ETC. SCHEME

Circular No. HO: Retail: 43 :2017-18: 852 Date: 09.01.2018
Particulars Terms & Conditions
Eligibility Individuals, Firm, Companies etc. provided securities are in the name of the firm, company
Purpose To meet personal expenses/business expenditure except speculative/prohibited
purposes
Type of Facility (1) OD to be renewed annually, (2) DL Max 36 months or date of maturity of the assigned
security, whichever earlier.
Classification Priority or Non-Priority on the basis of end use and extant PS guidelines.
Loan Amount Max. 50 lakhs, however on case to case basis higher amount can also be considered.
Security Assignment of Govt. securities, PSU Bonds, Securities/Relief Bonds issued by
RBI/ICICI/IDBI, NSCs, LIC Policies of LIC of India or any other such security
transferable/assignable to the Bank.
Margin (i) 10% on surrender value of LIC Policy (surrender value certificate to be
obtained on annual basis in the month of April every year)
(ii) 25% of the face/accrued value of the security in other cases.
Rate of interest
Rate of Interest Table Free code 10 Scheme Code
Interest Code
MCLR+2% ML200 CL04 DL801, DL803
Penal Interest Penal interest @ 2% p.a. over and above the normal lending interest rate shall
be charged on irregular portion & for the period of irregularity.
Process/ upfront Rs.10/ per certificate with a minimum of Rs.50/ +Service tax, if any. However,
fee postal charges, if any, shall also be recovered from the borrower.
Disbursement Through account of the borrower
Discretionary Classic Br(S-I-5lakh, II-10 lakh, III-15 lakh….), Cluster Head/CMH and
Powers higher offices (S-III-40 lakh, S-IV-50 lakh….) for details please refer to
the circular
Assessment/ DP As the securities in the present scheme offered are having different rate of
interest/maturity date (i.e. some security may be having maturity of 7 ½ year
or some may be maturing within 5 years etc. with different rate of interest,
therefore DP shall be calculated prior to release of an advance:-
Type of security Face value Date of Rate of interest Accrued Margin Maturity date Drawing
issue value Power
NSC 10000 01.04.01 9% 11800 25% 01.04.07 8850/-
RBI Relief Bond 100000 01.04.02 8% 108000 25% 01.04.07 81000/-
ICICI Bond 20000 01.04.00 9% 22700 25% 01.10.03 17025/-
LIC 200000 01.06.99 Prem. 6000/- p.a. 15000/- (S.V.) 10% 01.06.14 13500/-
NSC 10000 01.04.01 9% 11800 25% 01.04.07 8850/-
TOTAL (MPBF) 129225/-
Other important Unencumbered portion on the securities should not be utilized in any other
conditions facility/ies. In no case facilities to be extended against the Govt. Securities
issued under section 80 CC – of Income Tax Act like NSS, annuity plan of ICICI
– Prudential Life Insurance & LIC etc. which are not transferable/assignable.
Interest to be recovered ‘as and when due’.
Securities with restrictive clauses – should not be accepted/ considered as
security for Overdraft/Fixed loan facility.
Some of the Retail Customized Schemes

1. FOR CENTRAL GOVERNMENT EMPLOYEES (Personal Loan)
Reference- HO: Retail/35/2016-17/510: dated 15.09.2016
2. SCHEME FOR CENTRAL GOVERNMENT EMPLOYEES (HL and Home Furnishing Loan)
3 & 4: RETAIL CREDIT SCHEME (2-wheeler Loan/ Car Loan ) FOR CENTRAL GOVERNMENT EMPLOYEES
(3) 2-wheeler Loan (4) Car Loan
Eligible Minimum Gross pay Rs. 10,000 / per, Minimum Gross pay Rs. 10,000 / per month with
Person Month with 1 year of confirmed service 1
in year of confirmed service in Central Government
Central Government
Repayment With pension option - 70 years With pension option - 67 years
Without Pension - 60 Years or age of Without Pension - 60 Years or age of
Superannuation, whichever earlier. superannuation, whichever earlier.
Loan can be considered in the name of Loan can be considered in the name of family
family member even he/she has no
member even he/she has no income. In that
income. In that case income of employee case income of employee shall be considered for
shall be considered for arriving at MPBF & arriving at MPBF & he/she will stands as co-
he/she will stands as co borrower.* borrower.*
(*Family includes father, mother, son,
daughter, spouse)
(*Family includes father, mother, son,
daughter, spouse)
Purpose Purchase of Scooter/M-cycle/Moped Purchase of motor Car (new / used)
etc.
Maximum Max. Rs. 10 lakh Max. Rs. 100 L for New Cars & Rs. 25 L for old
Ceiling cars
Maximum • Margin Criteria New Car 15% on Road,
Permissible Old Car 20% (TV) or 30% (N-TV)
Loan Amount • Gross Income Criteria:- 30x Gross
Monthly Income or Pension
--same--
• Net Take Home Criteria:- 40% (if
monthly Gross Income up to 50000/-),
30% (if monthly gross income is <
50000/- pm)
Repayment Maximum 84 months New Car- Max. 84 months
Old Car
Age of > 3 Y to > 2 Y to 3 Up to 2 Y
vehicle 4Y Y
Max. 36 48 Months 60 Months
Repayment Months
Pd
Rate of 1 Year MCLR 1 Year MCLR + 0.25%
interest
Process Fee NIL NIL
Required KYC documents (PAN Card, ADHAAR ADHAAR Card or ADHAAR acknowledgement is
Documents Card is mandatory) mandatory
Self attested Identity Card or letter KYC documents as per bank norms; Appointment
from letter/Employment Certificate
the employer certifying the Self attested Identity Card or letter from the
designation, employer certifying the designation and department
department of his posting, date of of his posting. Latest salary Slip; Form-16/ITR
joining
and date of retirement. Latest salary
Slip;
Form-16/ITR
All others terms and condition as per Oriental Car/Vehicle Loan Scheme Circular No. HO:Retail:59:2014-
15:1007 Date: 24.03 2015 and amendment thereafter shall remain the same
5.Oriental Salute Vehicle Loan Scheme for Military forces and Paramilitary Forces
(Customized)
Ref:-HO/Retail/39/2016-17/565 dated 03.10.2016
Rep. Period Up to 84 EMIs
Age a. For Salaried with pension up to 67 years.
b. For salaried without pension up to 60 years or superannuation whichever earlier
Rate of Interest 1Y MCLR
Process Fee NIL
Other Conditions As per the normal terms and conditions of the vehicle loan scheme of the Bank
6 Oriental Salute Home Loan & Home Furnishing Loan Scheme for Military forces and
Paramilitary Forces (Customized)
Process Fee NIL
Other Conditions As per the normal T&C of Home Loan scheme
7 Customized Retail Loan Scheme for Employees of Honda Motorcycle and Scooter
India (P) Ltd (HMSI)
Personal Loan
Eligibility Permanent and regular employee of HMSI; Net Monthly Income (min.) 15000/- p.m.;
MPBF Net Take Home-30%
15 times Net Salary; subject to maximum 10 lakh.
Others ROI- 1yMCLR+1.70%, Margin – NIL, Rep period Max 60 months or upto remaining
service. Process Fee/Pre-Payment/Inspection Charges-NIL
Vehicle Loan
RoI- 1yMCLR+0.25%; P Fee-NIL, Other conditions- as per General Public Scheme
Home Loan
Process Fee-NIL; Other conditions as per General Public Scheme
Loan against NSCs to Staff Cir HO/Per/46/70/89/279 15.07.1989

Retail/17-18/923 dated 09.02.2018
Interest Rate- compounding monthly
Rate on loan –same as being provided on NSCs
Margin- Minimum 10%
STEP Down EMIs for Housing Loans with illustration

In case of Home Loans, in case of multiple borrowers step down EMIs is fixed. The logic behind Step down EMIs
is that the repayment age may be different of each joint borrower. For example if business man/ Professional and
salaried with pension are allowed 70 years, Salaried without pension is allowed 60 years & they become jointly
eligible to raise a HL then what should be the maximum repayment period and what should be the EMIs.
Illustration:- There are 3 applicants, namely Mahesh, Rekha and Prakash aged 55.3, 50.0 and 29.7 years
respectively. Let us assume that maximum repayment age of Mahesh is 70, of Rekha 60 years and that of Prakash
70 years & moratorium period is 12 months. Hence the residual repayment period is 165 months, 108 months and
348 months respectively for EMIs. Let us assume 40% margin criteria & ROI @9.70% they are eligible for 763636,
969827 & 750290 respectively. Let us assume the maximum eligible amount on the basis of margin criteria is Rs.
16.00 Lakh.
So the proportionate reduced loan amount shall be Rs. 491924, 624750 & 483326 respectively and EMI for each
obligiant shall be as under:-
(1) Rs. 5411 (165 months), (2) Rs. 8696 (108months) and (3) Rs. 4161 (348 months).
It implies that for first 108 months all the there will repay EMIs (5412+8696+4162=18270),
Thereafter Mrs. Rekha will be ineligible and
For remaining (165-108=57 months) period Mr. Mahesh and Prakash shall repay EMIs (5412+4162=9574) and
thereafter for remaining period (348-165=183 months) only Prakash will repay EMIs of Rs. 4162. Accordingly STEP
down EMIs would be as under
(1) Rs. 18270 for first 108 months (2) Rs. 9574 for next 57 months (3) Rs. 4162 for remaining 183
months
Suppose Loan applied for 17.00 lakh & MPBF on margin basis is Rs. 16.00 lakh
Assessment of eligible loan amount on the basis of Net income (Amt. in Rs.)
Particulars Applicant-I Applicant -II Applicant- TOTAL
III
Name Mahesh Rekha Prakash
Age in years 55 Y & 3 M 50 Y & 0 M 29 Y & 7 M
Repayment period for proposed loan (in months) 165 108 348 Max 348
Gross Annual Income 312000 420000 241200 973200
Monthly Gross income 26000 35000 20100 81100
Monthly net take home % (criteria) 40 40 40 40
Minimum Net take home required 10400 14000 8040 32440
Monthly Net take home 15600 21000 12060 48660
Monthly deductions (Before deduction of proposed 7200 7500 5600 20300
Loan EMI)
Funds available for loan repayment (EMI) 8400 13500 6460 28360
Rate of interest 9.70 9.70 9.70 9.70
EMI per lac at 9.70% for different repayment Pds 1100 1392 861
MPBF as per Net Take Home Criteria 763636 969827 750290 24,83,753
Loan recommended(Lowest of 16 lakh, 17 lakh and 24.83 lakh) Rs. 1600000 only
Final recommendations (Proportionately) 491924 624750 483326 16,00,000
EMI for total amount 5411 8696 4161
Rep-Period in months (as available to each obligants) 165 108 348
Step Down repayment period (for EMIs) in months 108 57 183
Step Down EMIs in Rupees 18270 9574 4162
N.B.:-ROI, Margin Criteria and maximum age criteria in this example are symbolic only and may vary from time to
time. Please be guided by the latest circulars and relevant policy guidelines for any commercial decision.
Miscellaneous Retail Loan Schemes

(1) HIGHER EDUCATION AND SKILL DEVELOPMENT GUARANTEE SCHEME FOR PURSUING HIGHER
EDUCATION IN DELHI-(HO/Retail/64/15-16/918 dated 23.02.16)- for students who wish to pursue diploma or
degree level courses or specified skill development courses in Delhi and have done their class X and class XII from
Delhi
Padho Pardesh – Scheme of Interst Subsidy by MoMA on Educational Loans for

Overseas Studies for Students of Minority Communities Circular No. HO:Retail:58:2015-
16:838 Date: 27.01.2016
i) For study abroad under education loans availed under education loan scheme of IBA by the
students of minority community pursuing PG Diploma, Masters, M. Phil, Ph. D. etc. from
universities abroad.
ii) Total income of parents not more than 6 lakhs
iii) Loan sanctioned & disbursed upto 01.04.2013
iv) Subsidy is to be calculated for loan upto 20 lakh only. (entire interest amount during
moratorium period shall be subsidized)
v) Interest subsidy will be available for moratorium period (Study +Grace period) of education
loan.
Ministry of Housing and Urban Affairs

Government of India
The Mission, in order to expand institutional credit flow to the housing needs of urban poor will implement
credit linked subsidy component as a demand side intervention.
Interest subsidy will be credited upfront to the loan account of beneficiaries through Primary Lending
Institutions resulting in reduced effective housing loan and Equated Monthly Installment (EMI). The
Net Present Value (NPV) of the interest subsidy will be calculated at a discount rate of 9 %.
Credit Linked Subsidy Scheme for EWS/LIG/MIG
Parameters EWS LIG MIG-I MIG-II

Implementation Period From 2017 initial for one year
Eligible person Female head or Female head with male head. Female head or Female head with male
If no adult female, than only in the name of head. If no adult female, than only in the
male head name of male head
Coverage All Statutory Towns or towns notified All Statutory Towns or towns notified
subsequently by GoI subsequently by GoI
Gross Annual Income ≤3.00 lakh > 3.00 lakh to 6.00 > 6 lakh to 12 lakh > 12 lakh to 18 lakh
lakh
Interest Subsidy Rate 6.5% 6.5% 4% 3%
Discounted @ 9% 9% 9% 9%
Maximum Loan (eligible 6.00 Lakh 6.00 Lakh 9.00 lakhs 12 lakh
for Subsidy)
Additional loan by Can be given without subsidy Can be given without subsidy
Bank/FI
Carpet Area (Max.) 30 Sq. Mtrs. 60 Sq. Mtrs 90 Sq. Mtrs. 110 Sq. Mtrs
Maximum Tenure for 20 years or Loan tenure (whichever lower) 20 years or Loan tenure (whichever lower)
subsidy calculation
Condition For new construction or for addition of rooms, Interest subsidy on housing loan for
kitchen, toilets to existing dwellings units acquisition/ construction of houses
(including re-purchase).
Condition The beneficiary family should not own a pucca The beneficiary family should not own a
house either in his/her name or in the name of pucca house either in his/her name or in
any member of his/her family in any part of the name of any member of his/her family
India in any part of India
Beneficiary Family means Self-spouse and unmarried children Self-spouse and unmarried children
Nodal Agency Housing and Urban Development Housing and Urban Development
Corporation (HUDCO) and National Corporation (HUDCO) and National
Housing Bank (NHB) Housing Bank (NHB)
Preference Preference to Manual Scavengers, Widows/ Preference to Manual Scavengers, Widows/
Women, SC/ST/OBC, Minorities, Persons with Women, SC/ST/OBC, Minorities, Persons
disabilities and Transgender with disabilities and Transgender
Gist of important circulars/ guidelines for Retail Loans

HO/Retail/1024 dt 15.03.2018: Home Loans for properties under bank possession- need not to obtain fresh
NEC and valuation
HO/Retail/38/738 dated 13.09.17: Appointment of DSA for sourcing of Home Loan leads
HO/Retail/37/731 dated 12.09.17: Policy on takeover of Home Loan accounts.
HO/Retail/04/83 dated 29.04.17:- Modification in HL Scheme: Value of property to be considered in case of
sale/purchase during Tripartite Agreement Period- A. Basic Sale Price, B. Value of agreement to sale between
original allottee & buyer of the property in resale and , C. R.V.
HO/Retail/65/1133 dated 27.02.17:- Documentation in case of non-mortgaged based loans under RAG
through Bigbazar.com or through, internet or through any other electronic media:- Cluster Head (RAG) & in his
absence 2nd man at RAG shall be responsible for such documentation (But if customer visits the branch, BM and in
his absence 2nd man shall get the documents executed).
HO/RAG/59/16-17/945 dated 30.12.2016:- Discontinuation of CRISMAC for opening of Retail Loans w.e.f.
01.01.17 (new Retail accounts to be opened only through OLS)
HO/Retail/60/998 dated 10.01.2017:- Home Loan Leads from BANKBAZAR.COM –Bank has entered into
agreement with the BANKBAZAR.COM for Home Loan, VL and Personal Loan. Live from 19.12.2016 for 34 centres
under 9 CMOs (Also refer Retail 677 dated 09.11.16)
Due diligence enquiry of borrowers has to be undertaken meticulously at the time of sanction of housing loan to
new borrowers as well as takeover of account from other banks in line with aforesaid circulars. Format as
“Annexure 1” for due diligence of new borrowal accounts as well as accounts to be taken over from other banks
(CIRCULAR NO. HO/RT/14/2013-14/331 Dt. 30.06.2013)
HO/Retail/45/16-17/678 dated 10.11.2016- Launch of Oriental Top Up loan for existing HL borrowers.
HO/I&C/37/796 datedd 28.11.2016:- confirmation of registration of vehicle hypothecated to Bank by sending
SMS to 7738299899 by typing <VAHAN> SPACE<Vehicle Reg. no> and done
HO/Retail/49/16-17/820 dated 02.12.2016- Guidelines on NACH process.
HO/Retail/50/16-17/844 dated 07.12.2016- PL scheme to HL borrower stands discontinued.
No inspection charges shall be levied under any Retail Credit Scheme, if facility is availed for personal purpose.
However, in case credit facility is availed for business purpose under the schemes OBLS, OMLS, Loan to Traders etc.
inspection charges as per Loan policy or guided by RMD Deptt. shall be levied (Circular No. HO:Retail:47:2014-
15:979 Date:17.03.2015)
Banks should provide a clear, concise, one page key fact statement/fact sheet to all individual borrowers at
every stage of the loan processing as well as in case of any change in any terms and conditions. (Circular No.
HO:Retail:01:2015-16:14 Date: 01.04.2015)
1. In all Retail Loans, where mortgage by deposit of title Deed of Immovable Property is a part of sanction of
credit facility to the borrower, the branch shall ensure to register the property with Central Registry within 30
days of creation of the mortgage / charge. (Circular No. HO:Retail:31:2013-14:833 Date: 14.12.2013)
2. In case of Home Loan proposals involving Rs.. 50.00 Lakh and above, 2 independent legal opinions from
retainers / counsels be obtained. (Circular No. HO:Retail:01:2014-15:02 Date: 01.04.2014)
3. Time norms for Retail Credit Schemes, HL- 7 days; Car Loan 24 Hours for existing clients and 3 days for
new customers (Circular No. HO: Retail:22:2015-16:315 Date: 16.07.2015)
Prior to sanctioning and disbursal of any credit facility under Retail Scheme, the borrower must have an operative
account (SB/CA/ CC/ OD) with the bank or should open one. (Circular No. HO:Retail:45:2014-15:924 Date:
21.02.2015) {This condition is waived in case of salaried borrower maintaining their salary account with other Bank –
Retail/857-13.12.16}
Loyal/ Captive Customer-(Circular No. HO:Retail:51:2014-15:986 Date: 20.03.2015 ) – Concession of

0.25% in rate of interest for Loyal / Captive customers under Vehicle Loan scheme –Definition of Loyal Customers is
as under-
Individual customers Captive / loyal customers who are having annual average balance in their/family
members* saving account ` 1.00 Lakh or in current account ` 5.00 Lakh (Minimum
dealing must be 12 months) Family Members- Spouse, parents, Son, Daughter in law &
Unmarried Daughter
Firm /Companies Firms/ Companies, Directors, Partners or Proprietor of firms/ companies availing working
capital limits from our Bank and having Credit Rating up to “4” at the time of last
renewal. (Minimum dealing must be 12 months). Note: Above criteria shall be applicable
to customers availing working capital limits under OBLS / OMLS also.
Existing standard Home Having regular repayment or customers who have already adjusted the accounts with
Loan Borrowers regular repayment (minimum 24 months).
Collateral in the shape of In case party is offering collateral security in shape of term deposit up to 75% of loan
Term Deposit amount.
Group of applicants In case of loan proposal is received from group of Applicants (minimum 5). The
employees will give cross guarantee.
The powers for granting such concession to loyal / captive customers have been delegated to { Please refer to
HO/RMD/122/2016-17/1017 Annexure B (Booklet) dated 12.01.2017 on revised delegated powers}.The
annual average balance of past 1 year (prior to date of sanction of vehicle loan) be taken into account for
considering an applicant as loyal / captive customer. Such proof be kept with loan documents.
Other circulars (Retail Loans)
HO-RETAIL-33/15-16/493 dated 24.09.2015:- Addition of mobile number in all Retail Loan accounts-
Invariably in all fresh cases and in existing case to be updated.
HO-RETAIL-49-758 dated 24.12.2015 and HO/Mkt/39/2015-16/695 dated 02.12.15: (as amended from
time to time) Launch of ORIENTAL PREMIUM SALARY ACCOUNT AND ORIENTAL SALUTE SALARY ACCOUNT-for
permanent employees (Govt or Pvt) having minimum 1 year of service (i) Oriental Premium Salary Account SB233-in
built OD523 after 3 months up to 3 lakh –min. Gross Monthly salary ≥ 35000/-(ii) Oriental Salute Salary account –
SB233-in built OD523 after 3 months up to 3 lakh
Vidya Laxmi Portal Online Education Loan Application Portal ( HO: Retail:48:2015-16:715 Date :
10.12.2015 & HO/Retail/63/912 dated 23.02.2016)- Bank receives online education loan applications under
the Pradhanmantri Vidya Laxmi Portal –(link available on obc web obcindia.co.in )
HO/Retail/01/16-17/03 dated 01.04.16:- Monitoring of online applications:-Branches shall check the
status of online applications on daily basis through web link- https://obcindia.co.in/obcnew/admin/admn_login.aspx.
and immediately contact the respective applicant Branches can access the applications using user id as bo_solid
and password as obc123
Please refer to CIRCULAR No. HO/ RMD/35/2015-16/410 dated 29.08.2015 for REVISED SCHEME FOR FINANCING
AGAINST FUTURE RENTAL OF PROPERTIES
DEPOSIT PRODUCTS OF OUR BANK
Acceptance of deposits and maintenance of deposit accounts is the core activity in any bank. The
very basic legal interpretation of the word 'banking" as defined in Section 6 of Banking Regulation
Act, 1949 means accepting deposits of money, for the purpose of lending or investment, from the
public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise.
Thus, deposits are the major resource of a bank and the main objective of a bank is to mobilize
adequate deposits. In fact, depositors are the major stakeholders of the Banking System. The
depositors and their interests form the key area of the regulatory framework for banking in India
and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is
empowered to issue directives / advices on interest rates on deposits and other aspects regarding
conduct of deposit accounts from time to time. With liberalization in the financial system and
deregulation of interest rates, banks are now free to formulate deposit products within the broad
guidelines issued by RBI.
Types of Deposit Accounts: -

The deposit products can be categorized broadly into the following types. Definition of
major deposit schemes is as under: -
i) “Demand deposits” means a deposit received by the Bank which is withdrawable on

demand;
ii) “Savings deposits” means a form of demand deposit which is subject to restrictions as to the
number of withdrawals as also the amounts of withdrawals permitted by the Bank during any
specified period;
iii) “Current Account” means a form of demand deposit wherefrom 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;
iv) “Term deposit” means a deposit received by the Bank for a fixed period withdrawable only
after the expiry of the said fixed period and include deposits such as Progressive (Recurring) /
Fixed Deposits / Cumulative Deposits etc.
While these are the main categories of types of accounts, there are many sub types under each
head. Also, there are many deposit schemes under each of the above deposit types with different
terms and conditions to attract different types of customers.
Document Management System (DMS)

In order to further strengthen the overall process of scanning, exporting the AOF / KYC documents
by branches, Account Opening Process by CASA Back Office has been development as part of
Document Management System (DMS) which is a workflow system using Omni Scan and Omni Flow
Applications Software Modules.
Document Digitization is the process of scanning documents and segregating them into records. It
enables user to scan documents in bulk, and add scanned documents with some values into fields
that have to be stored in the database.
Omnidocs is a Unified repository for all document and folders across the Bank including electronic
files, paper images, and physical documents. Documents can be saved in a unified repository and
can be retrieved through various search methods across the organization .
Advantage of DMS
• Unified repository for all document
• Online availability of documents
• Reduction in TAT
• Hassel Free Working
VARIOUS DEPOSIT SCHEMES
SAVINGS BANK DEPOSIT SCHEMES (बचत खाते)

# SCHEME (योजना) SALIENT FEATURES (मु य ब द)ु SCHEM
E CODE
1. Savings Bank Only for Bank’s Staff members. All facilities free and no charge to SB 202
(Staff) be levied.
2. Savings Smart Threshold Limit .25000/- Minimum sweep in .5000/-Minimum SB-211
Save-flexi
Deposit (For sweep out .2000/- No Minimum Balance required to be
Staff) maintained.
3. Smart Pay • For salaried persons whose salary is credited in this account. SB 204
Salary Accounts • Zero balance Account.
• No charges for non-maintenance of minimum balance. Also
available for Wipro salary scheme(Previous SB 213)
4. NRO Saving • NRI / PIO. In Indian Rupees. Local Funds/Funds from abroad. SB 205
Bank A/Cs • Any resident going abroad for gainful employment , his
domestic account will be converted into NRO a/c. If he/she
does not have any domestic a/c, he/she can open a NRO
a/c.
• Joint Account with Residents/Non-Residents permitted.
• Joint a/c Non- Repatriable except to the extent of USD
1000,000 per financial year including sale proceeds of
5. NRE Saving immovable
NRI / PIO. property
Funds from abroad. SB 206
Bank A/Cs • In Indian Rupees
• Any resident going abroad for gainful employment can open
NRE account
• Joint a/c with Non Residents /Residents (with some
conditions) permitted. P.A. Holder can operate the account
• Freely Repatrible
6. RFC Saving Any returning NRI who has stayed abroad can open RFC a/c. SB 207
Bank A/C In Foreign Currency- USD, GBP and Euro.
Joint a/c permitted.
Freely Repatriable.
7. Saving Bank Tax Saver Scheme. Exemption from Capital Gains Tax u/s 54, SB 208
Capital Gains 54B, 54D, 54F and 54G of Income Tax Act, 1961 allowed.
Scheme Option to open Account ‘A’ or ‘B’. Interest or withdrawal from
Account ‘A’ for Account ‘B’ can be made through Account ‘A’ only.
SB ‘B’ for TD Introduction of the depositor need not be insisted upon.
Joint account not permitted.
Cheque Book facility not allowed.
Withdrawal of Interest does not require permission from IT
authority like the withdrawal of Principal amount.
Special Account Opening Form to be obtained in duplicate.
The forms as obtained during the course of operation of account
/ withdrawals /closure of accounts to be submitted to the IT
authority within 7 days of the close of the month.
SAVINGS BANK DEPOSIT SCHEMES (बचत खाते)
# SCHEME (योजना) SALIENT FEATURES (मु य ब द)ु SCHEM
E CODE
8. OBC Unnati No NEFT/RTGS charges if transactions initiated via i-Bank SB 219
Deposit Fifty Cheque leaves free per year
Scheme In case of non-maintenance of minimum balance, the charges
shall be levied on the basis monthly average balance
Concession on Locker Rent on deposit of advance rental
ECS Dr/ Cr Free, I. Banking Facility Free, Mobile & SMS Free
{Note –Insurance facility attached with the accounts
stands withdrawn after 31.03.2016} Minimum Balance
requirement, Metro/U . 2500, SU/R . 1000 (with or
without Cheque book)
Demat Account: No Annual Maintenance Charges for first year
9. SB Pension Only for Government Pensioners SB 220
Account (Govt)
Minimum Balance Rural / Semi- Urban / Metro
Urban
Without Cheque Book . 20/- . 20/-
With Cheque Book . 250/- .250/-
No charges for non-maintenance of minimum balance
No Service Charges for Collection / Discount of Pension Cheques 2
Remittances aggregating to .10000/- p.m. free of charge
ORIENTAL PREMIUM ORIENTAL SALUTE SALARY

SALARY ACCOUNT (SB A/C ACCOUNT (SB A/C SCHEME
SCHEME FOR PREMIUM FOR DEFENCE PERSONNEL )
SALARIED Class {Ref- HO/CRG/ 65 /2017 -
{ HO/CRG/03/2017 - 18/136 dated 22.05.17}
18/25 dated 05.04.2017}
Scheme Code 10. SB-232 11. SB-233
Minimum Monthly Gross Salary . 35000/- (reduced from Any amount
.50,000 w.e.f. 03.06.16)
Min/Avg. Balance Requirements NIL
Online NEFT Free

ATM Card & issuance fee Visa Gold/RuPay Platinum
Issuance Charges : Free for salute salary, Free (on minimum monthly txns on
POS/E-commerce for Premium Salary account)
Annual Fee Charges
First Year Charges: Free
Second Year onwards the AMC shall be waived only if annual
transactions on POS/e- Commerce exceeds ` 60000/- otherwise
normal AMC charges as per the card variant type.
Net Banking, Free/ NIL
Mobile Banking,
SMS & Mail Alerts ,
DEMAT annual charges
Process Fee on OD NIL
Offer Coupons over NET Banking Free Coupons
:
Overdraft facility Overdraft facility with extended limit upto 3 times of gross salary
(as per pay slip) or 5 times Net Salary credited in account (Average
of last 3 months to be taken) whichever is lower. Available for
tenure of 12 months
ROI- @ 1 Year MCLR+2.50 %
Max overdraft amount shall be limited to . 3.00 lacs
Eligibility: Permanent Employee /Min 1 year of continuous service .
Net take home salary should not be less than 40% after calculating
the interest accrued.
Minimum CIBIL Score Minimum CIBIL trans Union score shall be TU-567,PL- 651 (Any
deviation from the above mentioned score rests with next higher
authority
SB to OD transfer When OD is sanctioned, the SB 232 account be transferred to OD-
522 through ACXFRSOL menu & SB 233 to OD 523. For existing SB
204 account holder, opening of fresh SB 232 not required
Discretionary Powers for BM Scale II & Above: . 3.00 Lac
sanction of overdraft facility: (BM Scale I-NIL)
Deviation from above : GM (Retail Asset Group) is empowered to consider the deviation
Insurance Free Accidental Death or Permanent Disability Insurance cover of
Rs. 10.00 lacs to be provided to all account holders, initially for 1st
year.
2nd year Free only if Qtly Avg. balance 25000, Loan/OD availed from
bank is not classified as NPA. The Saving a/c is not dormant.
Note:- Savings Schemes which have been discontinued/merged- SB201, SB203,

SB209 (merged with SB 211), SB 213 (Merged with SB 204), SB 217, SB 221
(merged with SB 204), SB 225, SB 226, SB 227 & SB 230
12. Saving Smart Average Quarterly Credit Balance .25,000/- SB

Save Flexi 211
Fixed Deposit Balance above .25000/- will automatically be converted into
Term Deposit.
Auto sweep Unit- .5000/-. Reverse sweep unit- .2000/-.
50% concession in NEFT/RTGS Charges.
Speed Clearing Charges – Free. Free ECS debit and credit.
Instant credit of O/s cheque up-to .25000/-
No Charges for Cheque Books. At par collection of Govt.
Cheques.
Revised Flexi Period (HO Circular HO/C S&P/41/ 2015-16/691,

Dated 01/12/2015 is as under:
Individual Non-Individual
SB Flexi 91 days to 59 91 days to 179 days

Period Months, Default Default period 91 days
period 91 days
13 Basic Saving The new name for Basic Banking (No Frill) Account Scheme (SB- SB
Bank Deposit 212) is “Basic Savings Bank Deposit Account” (Basic SB Deposit)- 212
Account HO/CS&P/56/2012-13/661/21-12-2012) HO/CS&P/13
Initial deposit A nominal amount of . 10/- for opening of an Account under the
‘Scheme.
Minimum Balance No Minimum Balance prescribed and as such no charges for non
maintenance of Minimum Balance
Cheque Book One Free of Cost Cheque Book of 25 Leaves during a Calendar
Facility Year
Cheque Cheques drawn in favour of the account holder shall be collected in
Collection such Accounts, if any
ATM Card Free ATM Card facility shall also be provided.
Number of No restriction on number of credits in the account NO
Credits RESTRICTIONS IN MAXIMUM BALANCE AND TOTAL CREDITS IN
THE ACCOUNT
Withdrawals A maximum of 6 withdrawals (including ATM and Transfers) per
month are permitted, free of any charges,. For additional
withdrawals during a month (i.e. over and above the 6, free of
cost), Charges of . 5/- per withdrawal should be levied.
Note –In BSBDA account the restrictions of 6 withdrawals/

transactions taking place through our Micro ATM is removed,
hence withdrawal through Micro ATM above 6 will not be charged
wef 01.03.2016 (micro ATM –Hand Held devices used by BCA)
Other free Standing Instructions for transfer of funds within the same branch,
Services No Incidental Charges for activating the inoperative account.
Other Services ECS, NEFT, Issuance of DD etc, are available and applicable
service charges are levied as per bank’s schedule of the Charges.
Internet Banking facility is permitted
14. SB Small Account can be opened with relaxed KYC norms SB
Account The person who intends to open the account has to produce a 222
self-attested photograph and to affix a signature or thumb print,
as the case may be on the form for opening the account in the
presence of a designated officer of the Bank. Balances should not
exceed .50000/- in all their accounts taken together. Total
credits not exceeding .1 lakh in a year and the aggregate
withdrawals and transfers in a month not exceeding .10,000/-.
Initial Deposit Amount: .10/- ; Minimum Balance: NIL; Maximum

Balance in the account/s: .50,000/- ; Maximum amount per
transaction- . 10,000/- ; No Cheque book facility is available. One
ATM card free of charge for the first year. Foreign Remittance not
permitted.
15 ORIENTAL Age-10 to 18 years on attaining majority i.e. 18 years the account SB
YUVA will be converted in normal saving account after completing 234
ACCOUNT necessary requirement.
ओ रयंटल यव
ु ा खाता
Minimum account opening balance NIL
Average Quarterly Balance –No specific requirement
Daily withdrawal limit- . 10000 per day through ATM
Spends at POS-Maximum . 10000 per day
Mobile Banking-Enabled (view only)
Specifications of ATM Card-Specially designed Classic RUPAY”
cards.
Annual ATM Card Charges-Completely waived off
Maximum Balance . 1.00 lacs
Maximum Total Credits in a year- . 5.00 lacs
SMS Alerts –Available
DD-Free for Educational Institutions and entrance exams for
account holder.
I-Banking –for viewing only
Pass Book-Will be provided for
RD Facility-RD with minimum . 100 @ ROI prevailing in the Bank
with NIL standing instruction charges.
ROI-as per prevalent rate of interest
16 Oriental Purpose:- For Central Government Employees and their families SB243
Saparivaar Customers of following category are also eligible under the scheme
Account 1. Lecturers of colleges run by state governments.
2. Doctors employed with state governments.
(ओ रएंटल सप रवार
3. Employees of LIC of India and other PSU General Insurance
खाता) companies.
4. Employees of Maharatna CPSEs(7),Navratna CPSEs(17) and Miniratna
Category-1 CPSEs(57) list enclosed as per Annexure I.
Family:- Self, Spouse,Children,Father,Mother (Employee will be Mukhiya

and other members Sadasya, there could be more than one mukhiya as
well)
Minimum Balance:-NIL
Insurance:-Free Accidental Death or Permanent Disability Insurance
cover of Rs 10.00 lacs to be provided to employees of Central
government & other departments mentioned(not valid for family
members), initially for first year.
Second year onwards, insurance to be renewed subject to following
conditions:
1. Average quarterly balance in Savings Account not to fall below Rs
25000/- in any of the quarter otherwise insurance premium to be
recovered from customer.
2. No loan/OD, availed from our Bank, is classified as NPA.
3. Saving Account is not Dormant.
Cheque Book:-Free Cheque Book upto 25leaves per annum
ATM:-VISA Classic/Gold/RuPay Platinum card to be issued as requested
by the customer
ATM Charges:- Issuance Charges: Free. Annual Charges: Free for first
year. Applicable second year onwards as per Bank norms
Demat Charges:-AMC charges (Annual Maintenance Charges) for
DEMAT accounts are NIL
Locker Rent :-
Locker rent at 10% and 20% concessional rate on Deposit of 2 years and
3 Yr advance rental respectively.
Other Features:-
Free Amount transfer through Net Banking. Free Mobile Banking. Free
Monthly E Statement. Free Missed Call Banking/SMS Banking.
Reference:-Circular NO. HO/CRG/ 95 /2016-17/789 dated
28.11.2016
17 ORIENTAL Min/Avg. Balance Requirements : Nil
PREMIUM Online NEFT : Free
SALARY ATM Card : Gold Card
ACCOUNT (SB Issuance Charges : Free
Annual Fee Charges : Free (On Min. monthly transaction on POS/ E-
A/C SCHEME
Commerce)
FOR PREMIUM Free Net Banking, Mobile Banking, SMS & Mail Alerts ,Demat Trading
SALARIED Complete Waiver on Process Fee for Retail Loans
CLASS) – SB Offer Coupons over NET Banking : Free Coupons
232 AND OD Overdraft facility : Overdraft facility with extended limit upto 3 times
522 of gross salary (as per pay slip) or 5 times Net Salary credited in account
(Avg of last 3 months to be taken) whichever is lower. Available for
For Gross Salary
tenure of 12 months at 12.20 %(BR+2.5%)Max overdraft amount shall
>Rs. 25000 be limited to `300000/- Eligibility: Permanent Employee /Minimum one
(ओ रएंटल year of continuous service . Net take home salary should not be less than
40% after calculating the interest accrued. Minimum CIBIL trans Union
ी मयम सैलर score shall be TU-567,PL- 651 (Any deviation from the above mentioned
अकाउं ट ) score rests with next higher authority
Discretionary Powers for sanction of overdraft facility:
BM Scale II : Rs. 2.00 Lac
BM Scale III & above : Rs. 3.00 Lac
Deviation from above : GM (Retail Asset Group) shall be the
competent authority for permitting any deviation
18 ORIENTAL Min/Avg. Balance Requirements : Nil

SALUTE Online NEFT : Free
SALARY ATM Card : Gold Card
ACCOUNT (SB Issuance Charges : Free
Annual Fee Charges : Free (On Min. monthly transaction on POS/ E-
A/C SCHEME
Commerce)
FOR DEFENCE Free Net Banking, Mobile Banking, SMS & Mail Alerts ,Demat Trading
PERSONNEL) – Complete Waiver on Process Fee for Retail Loans
SB 233 AND OD Offer Coupons over NET Banking : Free Coupons
523 Overdraft facility : Overdraft facility with extended limit upto 3 times
(ओ रएंटल सैलर of gross salary (as per pay slip) or 5 times Net Salary credited in account
(Avg of last 3 months to be taken) whichever is lower. Available for
स$युट अकाउं ट ) tenure of 12 months at 12.20 %(BR+2.5%)Max overdraft amount shall
be limited to `300000/- Eligibility: Permanent Employee /Minimum one
year of continuous service . Net take home salary should not be less than
40% after calculating the interest accrued. Minimum CIBIL trans Union
score shall be TU-567,PL- 651 (Any deviation from the above mentioned
score rests with next higher authority
Discretionary Powers for sanction of overdraft facility:
BM Scale II : Rs. 2.00 Lac
BM Scale III & above : Rs. 3.00 Lac
Deviation from above : GM (Retail Asset Group) shall be the
competent authority for permitting any deviation
19 ORIENTAL Eligibility Criteria : Female Resident Indian above 18 yr of Age

STREE SHAKTI Rate of Interest : Rate of Interest
SAVINGS Min. Monthly Average Balance (MAB): Rs. 25,000/-
ACCOUNT Non Maintenance Penalty : Rs. 200/ Month + Applicable Taxes
(SB244 ) Cheque Book Charges: Free upto 50 leafs/ year
Debit Card Type : Rupay Platinum International/ VISA Gold
(ओ रएंटल %&ी st nd
Card Annual Fee : 1 Year- Free , 2 Year onwards- As per Bank
शि)त अकाउं ट ) Charges
Daily ATM withdrawal Limit : Rupay Platinum International Card- Rs.
1,00,000/-
Visa Gold Card: Rs. 50,000/-
Daily Shopping Limit (POS/ E-Commerce): Rupay Platinum
International Card- Rs. 1,00,000/-
Visa Gold Card : Rs. 50,000/-
Insurance : Rs. 10.00 lacs Personal Accidental
st nd
DEMAT AMC : 1 Year- Free, 2 Year onwards- As per Bank Charges
Locker Rent : Locker rent at 25% concessional rate on Deposit
of 2 years advance rental
Recurring Deposit Facility: Customer can also open RD
account linked to her SB account in name of Self or Child
Concession on Loans: 50% Rebate in Processing Fee (Two
Wheeler Loan/ Auto Loan/ Gold Loan/ Personal Loan/ Home
Loan) 0.10% concession in ROI on Vehicle Loan (as per
Retail Credit Scheme)
Lounge Access : 2 free lounge access at domestic airports
per quarter for Rupay Platinum International Card holders only.
(This scheme is floated by Rupay & it is applicable as theirT&C)
20 ORIENTAL Eligibility Criteria : Resident Indian above 18 years of Age

PRATHAM Rate of Interest : As per prevailing ROI
ACCOUNT Min. Quarterly Average Balance (MAB): Rs. 1,00,000/- per quarter
(SCHEME CODE (Calendar Year)
Non Maintenance Penalty : Freebies to be withdrawn if AQB not
SB 245)
maintained (Next Quarter)
ओ रएंटल थम Debit Card Type : Rupay Platinum International/ VISA Gold
DD/ PO Issuance Fee : Nil upto 5 lacs per month
अकाउं ट – SB 245 Daily ATM withdrawal Limit : Rs. 1,00,000/- for Rupay
Platinum International/ Visa Gold
Daily Shopping Limit (POS/ E-Commerce) : Rs. 2,00,000/- for
Rupay Platinum International/ Visa Gold
No of Free Self-cash transactions at Base Branch: Unlimited
RTGS/ NEFT/ IMPS : At Branch : -As per Bank Charges
Online : - Free
Locker Fee : 25% Concession
Insurance : 10.00 lacs Personal Accidental Insurance
Lounge Access: Two free lounge access at domestic airports per
quarter for Rupay Platinum International Card holders only. (This scheme
is floated by Rupay & it is applicable as per their T&C)
ATM Card Issuance Fee : Nil
ATM Card Annual Fee : Nil
Chq Book Charges : Nil
SMS Alert Charges : Nil
Statement Charges : Nil
Duplicate Passbook Chrg:Nil
Physical Statement : Nil
Retail Loan Processing : Nil
DMAT AMC : Nil
21 New Saving The accounts opened in terms of this proviso i.e., using OTP based e-
Scheme (SB- KYC, are subject to the following conditions:-
246) based on A specific consent from the customer for authentication through OTP and
e-KYC through declaration shall be obtained from him/her to the effect that no other
account has been opened nor will be opened using OTP based e-KYC
OTP
either with the same or with any other Bank/financial institution.
The Reserve
Who can open?: Adult individuals- singly or jointly (for low risk
Bank of India
category customers only)
vide circular
Requirements for opening of account: Aadhaar number, PAN / Form
RBI/2016-17/176
60 and Mobile number.
.DBR.AMLBC.No. Account opened using OTP based e-KYC shall not be allowed for more
18 / 14.01.001 than one year within which Customer Due Diligence (CDD) procedure is
/2016-17 dated to be completed.
8,Dec'2016 has If the CDD procedure is not completed within a year then :-
made a) In respect of deposit accounts, the same shall be closed
amendment to Immediately.
Master Direction b) In respect of borrowal accounts, no further debits shall be allowed
on KYC and Minimum Balance : Nil
Loan Facility : Only term loan can be sanctioned. The aqqreqate
directed the Bank
amount of term loan sanctioned shall not exceed Rupees Sixty thousand
to provide an in a year
option of One Maximum amount : The aggregate balance of all the deposit accounts
Time Pin (OTP) of the customer shall not exceed Rs. One Lac. The aggregate of all
credits in a financial year, in all the deposit taken together, shall not
based e-KYC
exceed Rupees Two lac.
process for on- ATM : One ATM Card free of charge for the first year
boarding of Cheque Book : No cheque book facility
customers. Withdrawals or transfer Limit : No limits
नई बचत खाता Other Conditions :
1) Consent cum declaration form should be obtained,
योजना – SB 246 2) All other conditions as applicable to existing SB 222
(OTP के ,वारा KYC
)
22 UTTAR Confirmed employees of UHBVNL
HARYANA No Minimum Salary Requirement
BIJLI VITRAN No Minimum/ Average Balance Requirements
NIGAM Free NEFT/ RTGS
No DD & Cheque Book Charges
LIMITED
Unlimited ATM withdrawals Free
(UHBVNL) Free ATM cum Debit Card: RuPay Platinum/ VISA Gold
EMPLOYEES- Nil ATM cum Debit Card Issuance Charges & AMC Charges
ORIENTAL Free l-Banking, Mobile Banking, SMS & Mail Alerts, Demat
SALARY Account
ACCOUNT Accidental Insurance of ? 31.00 lakhs (Death only).
(REGULAR 20% Concession in locker rent if paid in advance for 3 years
EMPLOYEES) – (subject to availability)
SB 247 Complete Waiver on Process Fee for Retail Loans
Overdraft & Personal Loan facility upto Rs. 10.00 Lakhs
23 UTTAR Contractual Employees of UHBVNL, till the period of contract (renewal of
HARYANA contracts included).
BIJLI VITRAN No Minimum Salary Requirement
NIGAM No Minimum/ Average Balance Requirements
Free NEFT7 RTGS
LIMITED
No DD & Cheque Book Charges
(UHBVNL) Unlimited ATM withdrawals Free
EMPLOYEES- Free ATM cum Debit Card: RuPay Platinum/ VISA Gold
ORIENTAL Nil ATM cum Debit Card Issuance Charges & AMC Charges
SALARY Free l-Banking, Mobile Banking, SMS & Mail Alerts, Demat
ACCOUNT Account
(CONTRACTUAL Accidental Insurance of? 10.00 lakh (Death only).
EMPLOYEES) –
SB 248
24 Premium This scheme shall be by invitation only & existing customers fulfilling
Saving Account all the above criteria shall be eligible for conversion of their existing
Scheme ‘Our saving account to this newly launched scheme & no fresh accounts
Best shall be opened in this scheme.
Eligibility Criteria
Customer’- SB
I. Individual Resident Indian > 18 years of age & < 70 years of age.
249 II. Minimum Average Quarterly Balance (AQB) of Rs.1.00 lac for a
minimum period of 1 year.
ी मयम से-वंग III. Associated with the bank for a period of not less than 3 years.
अकाउं ट %क/म “ IV. Minimum 5 transactions (both Cr & Dr) in a month.
Card Type : Personalized Visa Signature Debit Card with ‘Our
Our Best Best Customer” embossed/printed on the card.
Customer” – DD/ PO Issuance Fee : Nil upto 5 lacs per month
SB -249 Daily ATM withdrawal Limit : Rs. 1,00,000/-
Daily Shopping Limit (POS/ E-Commerce) : Rs. 1,00,000/-
No of Free Self-cash transactions at Base Branch: Unlimited
RTGS/ NEFT/ IMPS : Online : - Free
ATM Card Issuance / Annual Fee : Nil
Chq Book Charges : Nil
SMS Alert Charges : Nil
Duplicate Passbook Chrg:Nil
Physical Statement : Nil
DMAT AMC : Nil
Cheque Book / Passbook : Personalized with “OUR BEST
CUSTOMER “ printed on the cover
RetailLoan Processing Fee : Nil
Insurance : Rs. 10 Lac (Death + total Permanent Disability)
Locker Rent : 25 % concession on Annual Charges.
Current Account
SN SCHEME SALIENT FEATURES SCHEME
CODE
1 Current Minimum Balance Rural/SU Urban/Metro CA 101
Account With Cheque Book .2000/- . 5000/-
(General)
2. NRE A/C can be opened by NRI / PIO. In Indian Rupees. Minimum Balance CA 102
Current .1000/-, Funds from abroad. Any resident going abroad for gainful
Account
employment can open NRE account. Joint a/c with Residents / Non-
Residents permitted. P.A. Holder can operate the account. Freely
Repatriable
3. NRO A/C can be opened by NRI / PIO. In Indian Rupees. Minimum Balance CA103
Current .1000/-
Account
Local Funds/Funds from abroad. Any resident going abroad for gainful
employment, his domestic account will be converted into NRO a/c.
If he/she does not have any domestic a/c, he/she can open a NRO a/c.
Joint a/c with Residents/Non-Residents permitted. Non-Repatriable
except to the extent of USD 1000000 per financial year including sale
proceeds of immovable property.
4. EEFC CA In Foreign Currency. USD, GBP, Euro, Canadian $ and Australian $. CA 104
Funds from abroad. Any type of remittances coming from abroad can
be kept in EEFC A/C. Freely Repatriable.
5. Imprest Branches maintaining Current A/Cs of Extension Counters, Lead Bank CA 105
Account Offices, STCs, Spl. Collection Centres, Stationery Godowns, Central
Cash Centres, Currency Chests, Satellite Offices, Assets Recovery Cells,
Inspectorates, Service Branches, MICR Centre.
6. Banker’s Current A/Cs of Banks maintained with the Branches CA 106
CA
7. CA Margin Margin Money kept in C/As against issue of L/Cs, Guarantees, etc CA 107
Money
8. Domestic Residents In Foreign Currency. Freely Repatriable CA 108
RFC
Scheme
9. Current Flexi Fixed Deposit Average Quarterly Credit Balance .2,00,000/- CA 109
Account
Although normal Cheque Books can be used for cash (self) withdrawal /
Premium
transfer transactions under ABB, but for clearing transactions at
Gold - FFD
upcountry locations, Multi city Cheque Books are issued.
No Charges for Cheque Books (Local or Multi city)
Maximum Limit for Cash Transactions-ABB (Receipts & Payments
combined) – .1 Lac, No Charges for Cash Transactions up to
.50,000/- ,Above .50,000/- - Irrespective of location - .0.75 per
thousand or part thereof for full amount with a minimum of .25/-
Non Cash Transactions - No Charges for transactions up to .25,000/-

Above .25,000/- Same Station – Free, Upcountry Locations - .0.50
per thousand for the full amount of transaction with a min. of .50/- &
max. .5000/-
Flexi Deposit Period-Circular no. CS&P/691 dated 01.12.2015
Individual Non-Individual
Current Account 45 days to 1 Year, 46 days to 90 days
Flexi Period Default period 45 Default period 46
days days
10 Current Exemption from Capital Gains Tax u/s 54, 54B, 54D, 54F and 54G CA 111
Account of Income Tax Act, 1961 allowed. Option to open Account ‘A’ or
Capital ‘B’.
Gains Interest or withdrawal from Account ‘B’ can be made through
Scheme Account ‘A’ only. Introduction of the depositor need not be insisted
Account ‘A’ upon.
for SB/CA Joint account not permitted. Cheque Book facility not allowed.
Account ‘B’ Withdrawal of Interest does not require permission from IT
for TD authority like the withdrawal of Principal amount. Special Account
Opening Form to be obtained in duplicate. The forms as obtained
during the course of operation of account / withdrawals /closure of
accounts to be submitted to the IT authority within 7 days of the
close of the month.
11 Dividend A/Cs opened by the Companies to pay Dividend. CA 112

Warrant CA
12 Pragati CA Minimum Balance Rural / Semi- Urban / Metro CA 113
Scheme Urban
With Cheque Book .5000/- . 10000/-
st
Waiver of 100% ABB Charges during the 1 year.
Waiver of Demat A/C maintenance charges for one year.
Additional Benefits :(For A/Cs maintaining average daily CA balance of
. 5 Lac or more)
Free Draft Issuance Facility, Free RTGS Facility up to .5 Lacs.
(However, mandatory RBI charges plus applicable service tax shall be
recoverable).
{Note –Insurance facility attached with the accounts stands
withdrawn after 31.03.2016}
13 E-TAX AC A/C opened by our Branches/Offices for online remittance of TDS CA 117
Deducted
14 Merchant Average Quarterly Balance - .25000/-. CA 121
Current
Non Maintenance of Min Qtr Balance - .1000/- per quarter.
Account
Cheque Book Charges – FREE.
(POS Cash Deposit – Per Day Free Deposit (Home Branch)
Machine to Free upto 3 times monthly amount swiped at OBC bank POS
be terminal or .3.00lakh whichever is lower.
provided
Non Home Branch – Free up to .1.00Lakh
by Bank at
Free Demand Draft – 2 drafts per quarter up to .5.00lakh per
concession
al charges) instrument
50% waiver on process fee on Retail Loan for Prop, Partner,
Director.
Waiver on AMC charges on DMAT account for Prop, Partner,
Director.
20% rebate on locker rent if rent is paid in advance for 3 years.
Payment Gateway solution from M/S PayU Payments Pvt Ltd (IBIBO
Group company) for quick receipts of payments from customers.
Waiver of One time setup fee of .10000/- and Annual Maintenance
fee of .2500/-.
TERM DEPOSITS
# SCHEME AMOUNT PERIOD SPECIAL FEATURES SCHEME
CODE
1. Fixed Minimum 07 days to Interest Payable Quarterly TD 301, (Qty. Liq.)
Deposit .100/- 120 months TD 302, (Without
Liq.)
TD 308,
iff.Intt.Rate
TD 311
FDR-Banks
TD 312 Govt Spon
Subsidy
2. Cumulative Multiples of 6 months to Quarterly Compounding TD 303
Deposit .100/- 120 months Lump Sum payment on TD 309
In multiples maturity Diff. Intt. Rate
of 3 months TD 310 Court
Claim
3. Call Deposit At Call Issued in favour of TD 304
beneficiaries on account of
applicants
Zero Interest
4. Monthly Amount is 12 months Interest is paid on Monthly TD 305
Income accepted so to 120 basis.
Deposit that Monthly months Principal paid on maturity.
Income is in
multiples of
.10/-
5. Suvidha Minimum 12 months Quarterly Compounding TD 306
Deposit .2000/- to 120 Partial withdrawal in
months multiples of units of
In Multiples
.1000/- allowed.
of .1000/-
Remaining units
continue to earn interest
at Contracted Rate.
6. Capital Gains Exemption from Capital Gains Tax u/s 54, 54B, 54D, 54F TD 313-FDR
Scheme and 54G of Income Tax Act, 1961 allowed. TD 314-CDR
1988 Interest or withdrawal from Account ‘B’ can be made
Account ‘A’ through Account ‘A’ only
for SB/CA Introduction of the depositor need not be insisted upon.
Account ‘B’ Joint account not permitted.
for TD Withdrawal of Interest does not require permission from
IT authority like the withdrawal of Principal amount.
The amount withdrawn should be utilized within 60 days
or it should be re-deposited back into the account.
Special Account Opening Form to be obtained in
duplicate. The forms as obtained during the course of
operation of account / withdrawals /closure of accounts
to be submitted to the IT authority within 7 days.
All branches except rural branches are authorized to
accept deposits.
Nomination facility is available
7. NRE In Indian 1 to 10 years A/C can be opened by NRI/ TD 321-FDR
Rupees. PIO. TD 325-CDR
Funds from Any resident going abroad
abroad. for gainful employment can
open NRE account. Joint a/c
with Residents not permitted
(conditional). Joint a/c with
Non-Residents /Residents
(with conditions) permitted.
Freely Repatriable.
Exempted from all taxes.
8. NRO In Indian As applicable A/C can be opened by NRI/ TD 322/323-FDR
Rupees. to domestic PIO.
Funds Local/ TD Any resident going abroad TD 324-CDR
from abroad. for gainful employment, his
domestic account will be
converted into NRO a/c. If
he/she does not have any
domestic a/c, he/she can
elect to open a NRO a/c.
Joint a/c with
Residents/Non-Residents
permitted.
Non-repatriable except to
the extent of USD 125000
per financial year including
sale proceeds of immovable
property.
No Tax exemptions.
9. FCNR (B) Funds from Minimum 12 A/C can be opened in TD TD 331-FDR
abroad. months only by NRI/ PIO. Any TD 332-CDR
In Foreign Maximum 5 resident going abroad for
Currency years gainful employment can
USD, GBP, open FCNR (B) account.
Euro, Joint a/c with Non
Canadian $ Residents/ Residents (close
and relative) permitted.
Australian $ Freely Repatriable.
& Japanese Exempted from all taxes.
yen.
10. RFC Funds from Minimum 12 Any returning NRI who has TD 333-FDR
abroad.In months stayed abroad can open RFC TD 334-CDR
oreign Maximum 5 a/c.
Currency.US rears Joint a/c permitted/Freely
D, GBP, Repatriable.
Euro,
Canadian $
and
Australian $.
11. Progressive Multiples of 6 months to Quarterly Compounding PD 315
Deposit .10/- 120 months Amount is deposited in
(PD) (In multiples monthly Instalments.
of 3 M) Lump Sum Payment on
maturity.
12 OBC Adhaar Core 12 months Quarterly Compounding
(VPD) monthly to 120 Amount of monthly
instalment in months Instalment may vary up to 5 PD 316
Multiples of times of the Core Amount or
.10/- .50,000/- whichever is less.
Maximum Lump Sum Payment on
.50,000/- maturity.
Loan facility – 95% of
Accrued value.
(Note Standing Instructions
are avail-able, however max
2 times deposit in a month
allowed if SI given other only
1 time)
13 Flexi Fixed Operative Min. avg. Auto Reverse Penalty / Period of TD376/382 - FDR
Accounts quarterly Sweep Sweep qtr for FFD
Deposit
balance Unit Unit min.bal.
. . . .
SB Smart 25,000/- 5000/- 2000/- 150/- 90
TD 379 – FDR
Save-SB days –
211 5 years
CA 200,000/- 25,000/- 25,000/- 1000/- 45
Premium day to 1
Gold/-CA Year
109
Other important circulars/ guidelines
Contact Point Verification (CPV)

Circular No. HO/CS&P/15/2017-18/214 19thJune 2017: New Mobile application for Contact Point Verification,
Bank has introduced new mobile application for field staff to capture image, Geo-location & other information of
the proprietorship concern (Activity/Address) while opening account of Prop Firms. Can be downloaded from
17.06.2017. CPV can be used, in lieu of one Official Valid Constitutional documents of the Proprietorship
Concern.
Renewal of Term Deposit Accounts
Circular No. HO/CS&P/03/2017-18/ 39 12.04.2017: Restriction on Branches for issuance either fresh or renewal
of back dated Term Deposits
Guidelines on PAN/ Form60
HO/CS&P/12/17-18/178 dated 05.06.2017: Exemption (RBI) has been granted to Government, Consular Office
for submitting documents like PAN/ Form-60 under I.Tax rule 114-B
Circular No. HO/CS&P/04/2017-18/ 41 13.04.2017: Furnish PAN or Form 60 by 30.06.2017 {CBDT rule 114 B and
114 C}
Threshold Limit Guidelines
Circular No. HO/CS&P/01/2017-18/ 33 07.04.2017: Revision in Threshold limit for customer’s
account- Different powers for different constitution and location of the parent branch. Branches can fix
maximum upto 10 times of Threshold limit and beyond this limit they have to seek permission from their
concerned CMO(BB/Classic).
Aadhar Guidelines
Circular No. HO/CS&P/59/2016-17/ 1103 17.02.2017: Aadhar is mandatory for resident SB accounts
(except Assam & Meghalaya). Obtain consent of the customer for seeding Aadhaar Number with DBT flag Y, if
seeded without consent put DBT flag N. If no Aadhar, open account on the basis of UIDAI aadhar acknowledge
slip- but CASA back office ensure obtaining Aadhar in 60 days in such cases.
Type of Account Opening Forms

Circular No. HO/CS&P/70/2016-17/ 1222 30.03.2017: Branches to use Form OF-1A and OF-5B while
opening account of non-individuals w.e.f. 15.04.2017. Also obtain OF-1B from the beneficial owner, wherever
required for their customer ID generation.
Circular No. HO/CS&P/58/2016-17/ 1070 1st Feb 2017: (For Individuals)
Customer Identification Form (OF-1A revised- The revised Form OF-1A, consist of two pages which
includes customer details as well as Form 60. &
Account Opening Form (OF-1B revised) consists of five pages which includes customer request for type of
account, customer specimen signature, and mode of operation, nomination & undertaking from customer. The
last two pages of OF-1B are not to be scanned for CASA back office), These two pages are detachable and are to
be handed over to customer for his awareness as the same also includes the acknowledgement of nomination.
HO/CS&P/571 dated 16.10.2015:- Any KYC compliant customer who has already been allotted a Cust. Id can
request for opening of any other deposit account by simply filling OF 1C (Existing Individual Customers)
and OF 5C (Existing Non Individual Customers). There is no need to comply with KYC norms again, in
cases where there is no change in the constitution/ source of income/ address of the customer.
Circular No. HO/CS&P/24/2017-17/288 dt 10.07.2017: New Modified Unnati (SB 219) Saving Scheme
updated with additional features i.e. Demat Account: No Annual Maintenance Charges for first year
Registration of E-Mail ID of the Customer, guidelines
HO/ADC/08/2016-17/590 dated 07.10.2016:- Registration of E-Mail ID of the customer while opening of
new accounts in FINACLE- Mandatory clause of obtaining E Mail ID in case of Salary accounts (SB204, SB211),
CA (Individuals and Prop Firms) & E Mail ID of the beneficial Owners in case of non individual customers (SB204,
SB211, SB232, CA-Individuals) have been dispensed with. However E Mail ID is mandatory in SB-232
(Salary Premium Account)
Interest Frequency and Rate in SB accounts

HO/CS&P/10 dated 02.04.2016:- With effect from 01.04.2016 bank has decided to credit the interest in SB
accounts on monthly basis (in the first week of the succeeding month).
Cash Withdrawal / Acceptance Restrictions-Guidelines
HO/CS&P/07/2017-18/ 105 dated 08.05.2017; Branches should accept initial deposit where accounts opened
through WKITAC. In case account is not opened later on due to some reason, remit the deposit through Banker’s
cheque or DD (charges waived) only.
HO/CS&P/1130 dated 07.03.2014 - Cash withdrawal at Non-Base branch, only customer himself/ herself can
withdraw upto 1.00 lacs in a day. Regional Head (2nd man in the absence of RH) can permit upto 5 lacs
withdrawals (beyond 1 lac) to valued customers.
HO/CS&P/986 dated 23.01.2014:- 50 Branches of the Bank have been authorised to open PPF account and
Senior Citizen Saving Scheme 2004 accounts.
Flexi Deposit Guidelines
HO/CS&P/9/17-18/172 dated 31.05.2017: Exclusion of interest in available effective balance.
LLP (LIMITED LIABILITY PARTNERSHIP) Accounts

HO/CS&P/35/17-18/440 dated 04.09.2017: KYC documents for opening of Current and Term Deposit Accounts:
1. Certificate of Registration issued by Ministry of Corporate affairs. 2. Copy of LLP Agreement. 3. PAN of LLP 4.
KYC documents of the Beneficial Owner along with Designated Identification Number (DIN) allotted by MCA
Miscellaneous
HO/CS&P/31/17-18/392 dated 16.08.2017: A new menu in finacle 2CHECK has been introduced for 2nd checking
for the field functionaries
HO/CS&P/16/17-18/215 dated 19.06.2017: Launch of Campaign From 01.08.2017 to 30.09.2017-Total 106
awards have been prescribed for the performers.
HO/CS&P/16/17-18/215 dated 19.06.2017: (IBA) Bank should not seek common seal of the Company on their
AOF.
HO/CS&P/23/17-18/282 dated 07.07.2017: It is related to Service charges where Competent Authority has the
authority for allowing concessions in Non-Credit related service chargesi.e. Cash Handling Charges, Draft
Issuance charges, etc.
HO/CS&P/25/17-18/287 dated 10.07.2017: 1. In case of newly opened account (SB & CA), the average minimum
balance charges would be calculated and levied from the 1st day of the next calendar month instead of same
month in which the account is activated. 2. Now the cash handling charges would be charged on the basis of
currency pieces tendered.
HO/CS&P/26/17-18/340 dated 27.07.2017: Speed Clearing Charges in case of Collection of Outstation Cheques
has been waived for all types of account.
HO/CS&P/32/17-18/397 dated 19.07.2017: Revision in SMS Charges i.e. Rs. 15 in all operative accounts
excluding Basic Saving Deposit on quarterly basis.
IT PRODUCTS OF OUR BANK
TECHNOLOGY:
Our Bank was the first Nationalised bank which achieved 100% CBS (Core Banking
Solutions).
Network Infrastructure: All the branches are connected through BSNL’s Leased & ISDN Lines.
All the branches are connected to IT Cluster (Aggregate point) through 64 Kbps/2Mbps/lease/ISDN
line for data transfer. IT Cluster (Aggregate point) is further connected to Data Center Mumbai and
DRS New Delhi through 2Mbps Data Circuit. It is a three-tier network with 2 core locations, 34
aggregate locations and more than 2300 access points. The Bank has deployed about 150 VSATs to
connect the rural & semi-urban branches where the leased line is not technically viable. The
maintenance of the network has been assigned to M/s. Network Solutions (P) Ltd.
Bank has setup 3 way DR set-up with Primary Data Centre at Vashi Mumbai, Nearline site (NLS) at
Mumbai and DR Site at New Delhi. This will ensure continuity of CBS operation through DR set-up
in case of any eventuality leading to partial/complete disaster at Primary Data Centre. The Primary
Data Centre (PDC) and DR Site (DRS) is connected through one E-3 link and four E-1 links. PDC
and Near Line Site (NLS) are connected through dark fiber whereas Near Line Site (NLS) and DRS is
connected through E-3 links.
Security of I.T Infrastructure: Bank has achieved ISO 27001 certification for implementation
of Information Security Management System at Primary Data Centre, Mumbai, Disaster Recovery
Site, New Delhi, Near Line Site, Mumbai and Processes at Dept. of Information Technology, HO &
CBS Cell, HO. State of the art IT Security infrastructure including Firewalls, IDS, IPS, ASA are
installed at PDC and IPsec3 DES encryption protocol is being used for encrypting the data flowing
between Data centre and branches. Security Operations Centre (SOC) setup at PDC monitors and
logs all security events on 24x7 basis. Bank’s Internet Banking portal runs on Extended Validation
(EV) SSL, which is ranked as highest standard today.
31.03. 31.03.1 31.03.16 31.03.201 31.12.201 31.03.2018

CATEGORY
14 5 7 7
On site 2290 2334
1754 2110 2196 2296
ATMs
Offsite ATMs 361 372 368 323 315 296
Mobile 2 2
13 6 2 2
ATM’s
Total ATM’s 2128 2488 2566 2621 2630 2632
2389 branches +
2251 Br 2351 Br 2376 2381 234 Clusters
+2488 +2566 Br+2621 Br+2630 converted into
Total Outlets 4254
ATM’s= ATM’s= ATM’s= ATM’s= Banking Outlets+
4739 4947 4997 5011 2632 ATMs=5255
POS 8123
1659 1911 2447 3220
Terminal
IT PRODUCTS & SERVICES Fig in Lakh
Product 31.03.13 31.03.14 31.03.15 31.03.16 31.03.17 31.12.2017

ATM Card 99.39 112.087
39.09 49.71 74.77 89.15
Base
I banking
5.57 6.67 8.18 13.68 20.01 26.24
Customers
Mobile
Banking 0.35 0.55 0.81 1.18 2.94 8.68
Customers
DIGITAL Vs BRANCH TRANSACTION % Age

Product 31.03.15 31.03.16 31.03.17 31.12.2017
Digital Banking 50.6 54.41 54.51 61.75
Branch Channel 49.4 45.59 45.49 38.25
TOTAL 100.00 100.00 100.00 100.00
Mail Facility: All the branches and offices of the bank are provided with email facility. The
denomination of the mail id is same across the bank and is as given below:
Branch Mail ID: bmxxxx@obc.co.in where xxxx -> is SOL ID of the branch
Further, email ids have been assigned to different departments in the Head Office and Cluster
Offices. Any mail to or from the branch is routed through respective regional offices where Mail
Server has been installed.
NEW IT INITIATIVES
LAUNCH OF VIRTUAL ACCOUNT NUMBER SYSTEM (VANS) (Virtual A/c No. System
account number Series Viz.AAA00123456789, A1100123456789 or A1A00123456789)
Linked To Actual (Bank Accounts)
To ease the process of reconciliation of Inward cash/NEFT/RTGS/ clearing movements/I MPS of

large corporate entities/Institutions/Education Institute etc. Bank has launched Virtual Account
Number, which is a separate account number but it is linked with their ‘Real Bank Account” . It
employs a model wherein physical ledger accounts are replaced, by "Virtual bank accounts". These
virtual bank accounts are under the control and management of the customer concerned.
This collection and reconciliation of bank accounts were expensive and burdensome for both the
banks as well as the corporate as they needed to reconcile thousands of payment transactions
credited to their collection bank accounts on daily basis and for most of these transactions
information on who paid against which invoice was not available. This tedious reconciliation raised
the need for a contemporary Product/Solution that can be offered as value addition to our
corporate customers.
NOMENCLATURE OF VIRTUAL ACCOUNTS
To cater to the varied corporate/institutional customers the first letter of virtual account will be
alphabet (that can preferably be related to the group of corporate/institutions) and rest will be
digits.
For eg: Let us presume that we need to give Virtual Accounts to ABC School for collection of
student fees. Then the nomenclature of virtual accounts given to the ABC school system shall be
"ABCXXXXXXXXXXX or A12XXXXXXXXXXX".
Benefits of Virtual Accounting System (VAS):
Virtual Accounts are a mechanism to improve straight thorough reconciliation of receivables for
corporate clients; its main benefits are as listed below:
1. Administration costs fall because virtual accounts can be used to identify remitters
automatically and are not dependent on the quality of remitter details provided in the
payment reference field, eliminating the costs of hiring personnel to reconcile receivables
manually.
2. Reporting quality improves because virtual accounts speed up operations turnover with
transactions captured and displayed on statements in real time.
3. Credit control is stronger because virtual accounts enable timely and accurate reconciliation
of collection information, thereby delivering a clearer individual and overall credit picture of
customer accounts.
SCOPE OF VIRTUAL ACCOUNTING SYSTEM

Virtual Accounts are potentially beneficial to any corporate that uses physical bank account
structures for its financial administration. The benefits of VAS can be found especially in sectors
where large reconciliations are carried out like:
• For Fee Collection procedure in Big Educational institutions.
• Corporate having different subsidiaries.
• Corporate having recurring monthly remittances from their vendors/clients.
• Exam fees for entrance/qualifying examinations.
• Mid-sized companies with a lot of online sales having various vendors.
• Big billers.
The VANS functionality provides for an opportunity to all the branches & clusters to market the
same to Education institutes and Corporate Customer for collection of the payments by distributing
virtual account number to their payors. The Virtual account number provides for easy reconciliation
of the payment
Presently our bank is not charging any fees for extending virtual accounting facility to our corporate
customers
ELECTRONIC FRAUD RISK MANAGEMENT (eFRM) CELL

Circular No. HO/DBD/15/2017-18/882 dated 20th Jan 2018
In recent times, there has been an exponential growth in issuance as well as usage of digital
products across the Banking industry; such as Debit Cards, Internet Banking, Mobile Banking, UPI,
Wallets etc.. Further, special focus is also being accorded by Government for moving from Cash-
based to less-cash economy which requires moving from cash-based transactions to digital modes
of transactions.
However, alongwith growth of the said channels, the risk involved in these electronic transactions
and e-channel frauds being reported, have also increased. Please note that earlier such cyber
frauds being reported, were very less and were usually investigated & managed on case-to-case
basis either by Department of IT and/ or Digital Banking Department.
With increase in such cases being reported off-late & said recent RBI guidelines, a dedicated team
was need of the hour, to address these matters in a focused & time-bound manner for closing these
cases promptly, keeping in view requirement of prompt customer service for such claims/
complaints and complying to concerned timelines as per said RBI circular.
In this regard, the Policy on "Compensation Policy- Electronic Channels for Unauthorized/
Fraudulent Electronic Transactions" has been approved by Board .
As approved in the policy, a "e-Fraud Risk Management Cell", (eFRM Cell) has been established at
Digital Banking Department, Corporate Office for handling the unauthorized/ fraudulent transaction
reported by the customers/ branches for electronic transactions.
The eFRM cell shall be nodal office for handling, investigating, compensating and reporting for the
unauthorized/ fraudulent electronic transaction. The said cell shall also handle the Card Fraud Risk
Management system for establishing robust and dynamic fraud risk detection and prevention
mechanism.
This team shall henceforth handle all matters related to reported unauthorized/ fraudulent
transactions through use of any of the e-channels of the Bank such as Debit Cards, Internet
Banking, Mobile Banking, UPI, Banks Wallets etc.
• The said team shall be responsible for follow-up & coordination with all concerned parties,
investigation, taking approvals from competent authority for denying or accepting any case,
carrying out necessary accounting for such transactions, insurance claims and ensuring
closure of each reported case in time-bound manner.
• The eFRM cell shall henceforth serve as the back-office and single point of contact for our
offices/ other Banks/ regulatory authorities for disputed fraudulent transactions through e-
channels.
• The customer shall report such fraudulent transactions & follow-up with their parent branch
only. Such complaints shall be escalated to eFRM cell (e-channels) at Head Office by branch
through their respective CMOs in coordination with Digital Banking cluster offices.
CARD CONTROL FUNCTIONALITY IN INTERNET BANKING &

MOBILE BANKING PLATFORMS
With advent of increased digital awareness and recent thrust from the government, it has lead to
ubiquity of bouquet of product i. e. Debit/Credit Card, Internet banking, Mobile Banking, UPI,
Mobile Wallet etc among the users. These products offer great amount of speed & convenience to
the customers, because of which they are getting popular among masses. Customers can now
check their balances, do fund transfer from their accounts in fraction of seconds. He needn't to visit
his branch to get most of the services bank offered. This way he is able to save his valuable time
and energy.
Our bank is offering all the above products/ channels to its customers. Each product is used based
upon its utility for customers and usage of these products is increasing consistently. The Debit
Cards & their usage is the highest amongst the digital products. Its widespread issuance & usage
confirms its acceptance among users and can be used for cash withdrawals as well as for cashless
transactions.
However, alongwith convenience, there is inherent risk and security of card & card based
transactions needs to be ensured. Although purchase of products using cards is easy, but in case
the card falls into the wrong hand, the personal accounts become vulnerable. It is observed that
with increase in number of cards issued, the case of attempted card frauds have also increased
proportionally. The fraudsters attempt to clone cards or disguise as bank officials to obtain card
credentials.
Bank has already implemented second factor authentication like OTP for ecommerce and Pin for
ATM/ POS transactions to prevent card based frauds. However, fraudsters use various means to
attempt to defraud customers of their money. We can describe few of such frauds briefly as below:
1. Vishing: Vishing is a combination of Voice and Phishing that uses Voice Over Internet Protocol
(VOIP) technology, wherein, fraudsters attempt to collect your personal data, pretending to be
calling on behalf of your bank or credit card company.
2. Phishing: Phishing is an act of attempting to acquire information such as user names,

passwords, and credit card details by disguised entities with malicious intent. It can be in the form
of an email, SMS, website screen or pop-up that appears to be from your bank or card issuer.
Please note that we never will never ask for any confidential data like login credentials, password,
One Time Password (OTP), CW or PIN.
3. Skimming: Skimming is the act of illegally copying data from the magnetic stripe of a credit,
debit or ATM card. The card number and/or details are procured using basic methods such as
photocopying receipts or more advanced methods such as using a small electronic device
4. called skimmer to swipe and store hundreds of such credit card numbers. Skimming can be
done at restaurants, bars, gas stations and retail counters where the physical use of card is done.
CARD CONTROL FUNCTIONALITY
In order to promote usage of Cards in safe environment, Bank's have been devising various new
services & products. For example, to avoid card skimming, banks have been migrating from
magnetic stripe cards to chip based cards as per RBI guidelines. Further, with the ATM machine
migration to Chip based acceptance shall further strengthen the security measures.
Further, to provide the customer a risk mitigation tool at their disposal, the Card control system has
been implemented which can be availed by the customers by registering for Internet Banking and
Mobile Banking platform, in turn directly using their Debit Cards.
The ease of access and security is paramount along with the approach for strengthening the
existing platform of the Bank i.e. Debit Cards, Internet Banking and Mobile Banking by creating a
connected architecture for all the digital platforms. Hence. Card control functionality is a step
towards unification of channel access and creating mobile first approach.
The Card Control solution provides self-service options to customers for managing usage & security
of their Cards, which give the customers great sense of security so that they can keep on using
cards without any fear or keep the card in suspended mode for transactions or specific types of
transactions. The Card related value added services offered by card control solution provide
additional utility as well as security assurance to card holders.
CARD CONTROL FUNCTIONALITY (BENEFITS)
Card control application is a product which offers great value in terms of security and convenience
to its users. We can underline the benefits of the application as:
> Block/ Unblock your Debit card: User can block and unblock his card, based on his need.
For example, user can keep his card blocked, when he is not using it and unblock when he needs to
use it.
> Set Card Limits Cardholder has the flexibility to set his own daily transaction limits for ATM,
POS & E- commerce transaction usage.
> Customizing Transactions:
I. Depending on your requirement, cardholder can also enable/disable his card for specific type
of transactions- ATM and/ or POS or E-commerce. For Example, if he does not wish to use
card for purchases, he can disable POS transactions by setting the POS limit to zero.
II. User can increase/ decrease card limit as per the requirement upto the maximum
permissible amount as per card category.
III. User can themselves activate / deactivate their Debit Cards for International transactions.
IV. In case of multiple cards, customer can choose to activate or deactivate its services for
specific cards.
The Card control functionality offered through the Internet and Mobile Banking
channels shall be as under:
I. Card hot-listing (Once the card is hot-listed, the same can be converted to normal through
branch only after 24 hours. In case the customer wants to undertake temporary blocking,
then customer should use limit profile wherein limit can be marked as "No Limit" or
"Deactivate" all the channels usage.)
II. Green PIN (Generation of ATM PIN)
III. Limit profile maintenance (Increase or Decrease limits for ATM, POS & ECOM)
IV. Activate or Deactivate ATM or POS/ ECOM
V. International Card activation/ Deactivation (EMV Chip Cards only)
Launch of "Bharat BillPay" System

Circular No HO/DBD/17/2017-180 dated 24th Jan'2018
The Bharat Bill Payments system (BBPS) is a Reserve Bank of India (RBI) conceptualized system
driven by National Payments Corporation of India (NPCI). It is a one-stop payment platform for all
bills providing an interoperable and accessible "Anytime Anywhere" bill payment service to all
customers across India with certainty, reliability and safety of transactions.
Bharat BillPay has multiple modes of payment and provides instant confirmation of payment via an
SMS or receipt. Bharat BillPay offers myriad bill collection categories like electricity, telecom, DTH,
gas, water bills etc. through a single window. In future biller categories may be expanded to include
insurance premium, mutual funds, school fees, institution fees, credit cards, local taxes, invoice
payments, etc.
Bharat Bill Payment System (BBPS) is an integrated bill payment system in India that offers
interoperable and accessible bill payment service to customers through a network of agents,
enabling multiple payment modes, and providing instant confirmation of payment. The National
Payments Corporation of India (NPCI) functions as the authorized Bharat Bill Payment Central Unit
(BBPCU). It is responsible for setting business standards, rules and procedures for technical and
business requirements for all the participants. It provides uniform platform across all platform to
customer while meeting necessary requirement of biller to fetch the bill and make payment.
The key features of Bharat BillPay are enumerated as
Interoperable Bharat BillPay will be an integrated platform connecting banks and non-
banks in bills aggregation business, Billers, payment service providers and
retail bill outlets.
Accessible Facilitate seamless payment of bills through any channel: Digital and
physical.
Cost-effective Most cost-effective for entire ecosystem - Flat fee charge vs current ad
valorem.
Integration BBPOUs will have to connect only to BBPCU (NPCI) to get access to all the
billers. Utility companies just need to connect to maximum two BBPOUs to
enable all customers to pay bills.
Complaint Standardised system to handle customer grievances for both ON-US and
Management OFF-US transactions.
Dispute Facilitate BBPOU's to raise and resolve disputes relating to transactions that
Management have passed through the BBP system.
Clearing & Multiple Clearing & Guaranteed Settlements between different parties,
Settlement standardised TAT.
Standardisatio Standardisation of processes for entire Bharat BillPay ecosystem.

n
Brand Connect Single and trusted brand connect and Bharat BillPay Assurance.
II. Bharat Bill Payment System (BBPS)

Our bank is also a participant as BBPOU and currently providing Bill payment services for its
customers who are enabled for Internet Banking.
We are currently providing Bharat BillPay service at two platforms (through Internet
Banking) and the Bharat BillPay services shall be also extended to the Mobile Banking channel
I. Pre Login at corporate website: At our corporate website we have provided a link "
Oriental Bill Pay" under which user can go and avail the services of Bharat Bill Pay
https://bbps.obcindia.co.in/Quickpay.aspx.
II. Post Login Retail Internet Banking: Customer can see the facility under 'Payment'
tab after login in Retail banking account.
The following functionality is being offered in Bharat BillPay payment options:

> BBPS Quick BillPay ('Adhoc payment' and 'Bill fetch & payment')
> BBPS Transaction Status Raise/ View complaint status
LAUNCH OF 'ORIENTAL BHARAT QR' (PAYOR) MOBILE APPLICATION
Circular No : HO/DBD/12/2017 -18/02 Date: 02.01.2018
The new payment offering is being made through QR based payment option wherein the user can
use their smartphones to scan merchant QR codes and make payment through designated mobile
applications. In the same line, BHIM Oriental Pay (UPI) application of our Bank offers QR based
payments by scanning UPI QR, which is interoperable.
The 'Bharat QR' code specifications for making payments through consumers debit cards were
developed wherein the common parameters by all three network providers for standardization of
the approach were finalized by Visa and accepted by Mastercard and NPCI.
The Bharat QR or common QR codes are not interoperable among networks but provides
for standard specification by which consumers can scan the Bharat QR code at Merchant outlets
and make the payment to the Merchants. This process is same as consumer presents the Card to
the Merchant which Merchant swipes/ dip in the EDC/ POS machine wherein based on Card network
type the transaction is routed to NPCI (RuPay), Visa or MasterCard for onward debit to the
customer account through their
Banks after successful validation of available amount and PIN.
QR Based Payments (Bharat QR) Overview
The approach is same as CNP (Card Not Present) as in eCommerce transaction combined with C2C
(card to Card transfer) functionality i.e. Merchant QR is read as 16 digit card PAN (Primary Account
Number in context of Network i.e. Visa/ RuPay/ MasterCard) based on which transaction is routed
by debit to the linked card in the customer end application.
COMMENCEMENT OF INTERNATIONAL E-COMMERCE TRANSACTIONS WITHOUT

SECOND FACTOR AUTHENTICATION (ECI 7) ON VISA CARDS ISSUED BY OUR BANK
Circular No. HO/DBD/19/2017-18/ 96T dated 21stFeb'2018
The current trend of increasing online shopping on websites like Google, Facebook, Amazon,
AliExpress, iTunes, Uber etc. has resulted in customers attempting international (cross border)
ecommerce transactions through Debit/ Credit Cards even without moving outside the country
boundaries i.e. the rupee denominated transactions attempted by them are in fact international
ecommerce transactions since the country of operation for the merchant is outside India.
2FA (Two Factor Authorization) / VBV (Verified by Visa) is a domestic (India) mandate and over
80% of international ecommerce merchants do not participate in 2FA / VBV.This is leading to
rejection of debit card transactions attempted by customers on international ecommerce sites at
Bank's Switch (Euronet) since banks switches mandatorily check for 2FA / VBV for ecommerce
transactions, which leads to customer complaints/ dissatisfaction and impacts usage of card by
customers as they are forced to avail the Debit/ Credit Card facility from other Banks to undertake
such transactions.
In view of the above, it has been decided to permit the usage of bank's Debit Cards (which are
active for international usage) on major international e-commerce merchants.The international e-
commerce transactions without 2nd Factor Authorization (ECI7) through VISA Debit Cards have
initially been activated for Top 50 merchants.
RuPay Insurance Coverage Program 2017-18 (DBD 22.05.2017)
• RuPay Card Scheme is a domestic network set-up by NPCI to provide secured, robust, scalable,
simple, transparent, inclusive, user friendly and affordable solutions to entities eligible to issue card in
India.
• Our Bank is issuing two types of RuPay Cards viz. RuPay Classic (Non-Premium Cards) and RuPay
Platinum (Premium Cards). The Non Premium Cards include RuPay Domestic, RuPay Mudra, RuPay
Jan Dhan, RuPay Pungrain & RuPay Kisan and Premium Cards include RuPay Platinum (Domestic) &
RuPay Premium (International).
• As a value added service, NPCI has been offering insurance cover of Rs.1 Lakh for Non-Premium
Cards and Rs.2 Lakh for RuPay Premium Cards (Accidental Death or Permanent Total Disablement
only) to eligible RuPay Cardholders.
BHIM AADHAAR OBC (BHIM AADHAAR PAY)
Our new app which is name as BHIM AADHAAR OBC is now available on Google Play
Store. The new app is a cloud based app developed by M/S TCS, having following features;
A. Migration of merchants already on boarded on BHIM Aadhaar Pay
1. The Merchants can download the Application with keyword “BHIM AADHAAR OBC”.
Merchant need to download the new app from Google play store and install the same to
start using it. The existing finger print scanner and its driver need not be reinstalled again.
2. Merchants who have on boarded on our existing BHIM Aadhaar Pay app are migrated to
new platform.
3. The list of merchants migrated to new platform for respective DBD Cluster, is enclosed.
4. An SMS is being sent by us to individual merchants informing them to migrate on new app
along with link to new app available on Google Play store ( as the old app will be
discontinued by Bank after some time).
B. Compatibility and Requirement
1. Android mobile (OS v 4.4 - Kitkat and above) which supports finger print scanners.
2. Data Connection on your mobile
C. New Features of New App
1. Transaction Limit – Rs. 2000/- per transaction, Rs. 10000/- per day per customer, Rs.
100000/- per month per customer.
2. Introduction of MPIN – In earlier version merchant had to authenticate himself using

finger print for every LOGIN to app. Now this dependency has been removed and merchant
can login using MPIN every time.
3. Mobile Device dependency – In earlier version, if merchant change his mobile then he
has to boarding process again. This dependency is removed and in the new app merchant
can onboard on multiple mobile devices.
4. SMS – Transaction details will be sent through SMS to both merchant and customer.
Merchant will get SMS for successful Registration, Block/Unblock of merchant, OTP for
device authentication etc.
5. Transaction Log – Merchant can view transaction log.
6. Available on Google Play Store – i.e NO need to get required software from Bank’s
Team. Only finger print scanner need to be collected from Bank.
NEW CORPORATE I-BANKING FORM' & FINACLE REQUEST MENU 'CORPIB' I.

BACKGROUND
The new version of the Internet Banking platform (FEBA- Finacle E-Banking) was launched in
13th July'2015 wherein the Master Circular on Internet Banking has been issued by Department
of Information Technology vide Circular no. HO/DIT/FEBA/23/2017-18/794 dated 26.12.2017.
The Internet Banking is being offered in two versions:

1) Retail Internet Banking: For individuals and proprietor (with max. transaction limits upto
~25.00 Lac per day along with transactional level checks).
2) Corporate Internet Banking: For corporate, bodies etc. including individuals/ proprietor
requiring maker/ checker based authentication.
User Registration for Corporate Internet Banking

In case of Corporate Net Banking user creation, the customers are required to apply through
the branch by completing the Corporate I-Banking application form, list of users to be created,
User rights/ access, transaction type, transaction limits, Board resolution/ mandate etc., as
applicable. Based on the customer application, the User profiles are created along with the User
IDs, rights/ access, transaction type, transaction limits etc.
However, the present Corporate Internet Banking form is lengthy, lacking tabular information
capturing capability and usage of narratives which increases the subjective aspects of the
Corporate I-Banking Form thereby increasing the inconvenience for the customers for
completing the Corporate I-Banking Form.
MISS CALL AND SMS BANKING

Bank has launched SMS Banking for its customers. Any Customer of Bank having Mobile
phone irrespective of the Mobile Service Provider viz. Airtel, MTNL, Vodaphone, VSNL, Idea,
Reliance etc., can avail this service. These services are of two types i.e. Push Based Alerts
and Pull Based Alerts. Charges for SMS alert is Rs. 15/- in all operative accounts excluding Basic
Saving Deposit on quarterly Basis w.e.f 30th Sept 2017
Missed call service from registered mobile no. to 91-8067205757 and 91-8067205767 for
Balance Enquiry and Mini Statement respectively.
Push Based Services

These services facilitate automatic transmission of SMS to the customer's chosen mobile
number for various transactions in his account .
Events of SMS Alert
No. Name of Events Frequency Remarks

l Card based transactions (ATM) Real Time SMS is sent irrespective of amount whenever
transactions are done through ATM.
2 Instrument based or cash Real Time For Credit>= Rs. 10,000 and debit>= Rs5000, SMS is
transactions sent.
3 Minor to Major Monthly SMS is sent on three occasions (monthly) i.e. three
months prior to the minor attaining the 18 years of
age.
4 DBT / DBTL related Real Time Whenever customer receives DBT/DBTL related credit
messages either through APBS (Aadhaar Payment Bridge
System) or directly in their account, SMS is sent.
5 Opening of accounts Real Time SMS is sent if an account is opened with an amount
(excluding Flexi) with amount >= Rs. 1 crore.
6 Promotional messages On demand By respective departments
7 RTGS/NEFT transactions for value Real Time SMS is sent to the concerned branch /Cluster head
o f R s . 5 crores and above and second man at branch/Cluster erstwhile, for
customer accounts procuring RTGS/NEFT for value of
Rs 5 Crore and above.
8 Modification in mobile number Real time ATM DC option in Finacle is run by COPEC to upload
through ATM's requests of SMS registration / mobile number change
initiated by customer through ATM. SMS alert is sent
to customer once this change updated in system.
9 Missed Call alert service for balance Real Time On each missed call by the registered mobile user to 91-
inquiry and mini statement 8067205757 and 91-8067205767 for balance inquiry
and mini statement respectively limited to 3
SMS/day/user.
10 Registration for mobile Real Time M-pin is sent through SMS for registration in mobile
Banking/MPin regeneration
banking
11 Mobile banking - Login OTP Real Time An OTP is sent while registration of application and
first time login in mobile banking for IOS and
Android Operating System
12 Transactions through IMPS Real Time SMS is sent irrespective of amount whenever
transactions are done through IMPS
13 CCA/OD Accounts Real Time SMS is sent to respective customers of CCA/OD
accounts during following occasions:
• Irregular conduct / overdue repayment in account
• If account becomes SMA
• If account becomes NPA
14 Deposit Maturity Real Time2 days before maturity of deposit accounts, a reminder is
sent through SMS.
15 Loan EMI Notice Real Time SMS is sent to respective customers for Loan EMI
notice during following occasions:
• 2 days before the end month, a reminder is
sent through SMS.
• Reminder to customer for paying EMI, if not
paid (sent after 2, 9,16, 23 days of EMI due date)
16 Awareness SMS for Home/Education Real Time SMS to be sent to the borrowers, availing fresh Term
Loan borrowers Loan under Home Loan and Education Loan Schemes,
conveying the loan covenants to the borrower one
month before the commencement of first
instalment.
17 Terms deposit accounts Real time SMS is sent whenever term deposit accounts are
marked and released from lien.
18 Dormant / Inoperative Account Monthly An alert message is sent in advance from 21st to 23rd
month before an account becomes dormant /
inoperative.
19 Borrower / promoter prior to expiry Monthly SMS alert is sent to the borrower / promoter on the
of limit on monthly basis for registered mobile number prior to the expiry of limit
submitting the complete renewal on monthly basis for submitting the complete renewal
papers papers starting from last three months i.e. on 9th,
10th and 11th month.
20 Welcome message on account opening Real Time Intimation to customer on activation of account
opened through WKITAC or QAC menu when KYC is
completed by CASA back office and account is
unfreezed
21 Registration of SMS alerts Real Time Welcome message to customer on registering for SMS
Alerts through DCREQ or WKITAC
22 On every NEFT and RTGS through Real time Outward for each transaction and inward as per the
Branch / Net Banking / Mobile limit set in Finacle for credit/debit entry (i.e. for
Banking credit>= ?10,000 and debit >= ^5000).
23 Occasional Messages Occasionally Bank wishes the registered customers through SMS
on different occasions like Deepawali, New Year, etc.
24 Rejection of Cheque Real Time Once the presented cheque by the customer is
rejected, SMS is sent.
25 Cheque Book Issue Real Time On every cheque book issue, Bank sends the SMS.
26 Inward Cheque presented for Real Time The moment inward cheque is entered for clearing,
clearing after the transaction is entered in system and before
its posting onto the system, the SMS is sent.
27 Outward Cheque Real Time The moment outward cheque is entered for clearing,
presented for clearing after its posting onto the system, the SMS is sent.
28 Return of Cheque Real Time Once the presented cheque by the customer is
returned, SMS is sent.
29 Stop payment of cheques Real Time SMS is sent whenever the request for the stop
payment of cheques is received.
30 Aadhaar activation and deactivation Real Time Whenever seeding and deactivation of Aadhaar no.
from customer's account is done, SMS is sent.
31 Internet Banking : Addition of Real Time For making third party transfer, Beneficiary need to
Beneficiary register first for making the transaction and an OTP is
sent for the self confirmation.
After successful registration, Bank sends the
confirmation SMS.
32 Internet Banking Login Real Time As second factor authentication for merchant based
through different system of IP transactions and user id validation in case IP address
address different from last 3 used of the machine is different from last 3 used IPs, an
IPs OTP is sent.
33 Internet Banking: password Reset Real Time Whenever password is reset through Bank or by using
forgot password option in net Banking, SMS is sent.
34 Internet Banking Edit image/phrase ofReal Time There is an option for the change in image/phrase of
the profile the respective profile in net Banking and an OTP is
sent for the same.
35 Internet Banking : Self User Real Time Customers can opt for the self user creation in net
Creation Banking and an OTP is sent for the same.
36 Internet Banking Online user ID Real Time Customers can retrieve User ID in net Banking and
retrieval the SMS is sent for the same.
37 Internet Banking Register/change Real Time Customer can register or change their email id and
email ID OTP is sent for the same
38 Internet Banking : User Id change Real Time Customers can opt for e statement of the account
and OTP is sent for the same
Alert
39 Internet Banking Registration Real Time Customer can register for Mobile Banking through
for Mobile Banking Internet banking and OTP is sen"db for the same
40 Internet Banking While setting the Real Time An OTP is sent while setting the limits for fund
limits for fund transfer transfer (intra and interbank) in Internet Banking.
41 Internet Banking While setting theReal Time An OTP is sent while setting the limits for maximum
limits for maximum permissible permissible transactions (i.e. no. of transactions
transactions permitted per day) and also for beneficiary (i.e. no. of
transactions permitted per beneficiary).
42 Internet Banking While limiting the Real Time There is an option for limiting the number of
number of beneficiaries that can be beneficiaries that can be added per day and Bank
added per day sends the OTP for the same.
43 Internet Banking : Within Bank Real Time While doing within Bank (Intrabank) Fund Transfer /
Fund Transfer / NEFT / RTGS NEFT / RTGS using internet banking, an OTP is sent
for verification.
44 Online Shopping Real Time While doing online shopping, an OTP is sent for
verification.
45 Addition .Deletion and Modification ofReal Time Whenever the mobile no. is registered, deregistered
mobile no. from account or modified, SMS is sent.
46 Security Alert Messages With some Bank sends SMS to the registered customers for not
time interval sharing their confidential information with anyone to
alert them against frauds.
47 Cash Withdrawal and Debit Real Time SMS is sent for each cash withdrawal and debit
Transfers entry in Finacle transfer entry in Finacle for amount >=5000.
SMS is also sent in case of modification / deletion in
transaction for amount >=5000.
48 Letter of Credit Real Time SMS is sent for inland as well as foreign bill before 2
working days from the due date of Letter of Credit to
the registered mobile no. of the customer.
SMS would also be sent on marking of Lien on due date
of Letter of Credit.
49 Grant of OD through ATM Real Time Intimation to customer for acceptance/non-
acceptance of request made through ATM for grant of
OD
50 Letter of Thanks Real Time If Account is opened with Residence Document Type
as Declaration and communication address is
different from permanent.
On Day 4 - Intimation to customer if Letter
of Thanks is not acknowledged.
On Day 7 - Intimation to customer
regarding deactivation of account, if Letter
of Thanks is returned or not
acknowledged.
Otherwise, Customer will be intimated for activation
of account.
51 Term Loan Account Real Time Welcome Message for newly opened Term Loan
account
52 New Overdraft Account Real Time Welcome Message for newly Opened OverDraft
Account
53 Closure of quality CASA accounts Real Time Information to CMO on closure of quality CASA
accounts with Balance >=1 Lac
54 UPI debit transactions and reversal Real Time SMS alert for all UPI debit transactions and reversal
transactions. transactions irrespective of transaction amount
55 UPI-PIN setting Real Time An OTP is sent when user set its UPIN
PULL BASED SERVICE
For availing various facilities which include:
• Account balance for one/multiple accounts ,if any
• Mini Statements
• Blocking of ATM Cards
• Stop payment of Cheques
By sending the SMS from registered mobile number to 9915622622 as under :-
• For Account Balance ACBAL<space><14-digit a/c no>
• For Mini Statement : STM<space><14-digit a/c no>
• For Stop Payment of Cheques : STOP <space><14-digit a/c no><space> <cheque number>
• For Blocking ATM : Block<space><14-digit a/c no><space><last 4 digits of card no.>
Document Management System (DMS):
Document Digitization module of DMS system was successfully made Live for the 15 departments at
the Corporate office for uploading and storing of documents in digitized forms at a central
repository. UAT for another 15 departments of Head Office (Phase-II) is in progress and after
successful completion users from these departments will be given access to Live environment for
uploading documents.
UAT for Account Opening Process of DMS (DMS-AOP for RI customers) is continuing simultaneously
from CASA Back office, Delhi w.e.f. 04th Aug’ 2017. The process of data pushing to CKYC for
generation of KYC Identification Numbers will also be tested in parallel. Once implemented, it will
significantly improve the TAT for account opening and also procedure of CKYC will be automated
resulting in high accuracy.
Mobile Based Application Contact Point Verification (CPV) for Proprietorship

Accounts
New mobile application (Oriental CPV) has been developed and launched by the Bank w.e.f. 19th
June 2017 and necessary guidelines alongwith Job Card circulated vide circular number
HO/CS&P/16/2017-18/215 dated 19.06.17 for doing Contact Point Verification in case of
Proprietorship accounts.
The purpose of Contact Point Verification is to verify activity and business address of Proprietorship
concern where proprietor have submitted only one Officialy Valid Document (OVD) while opening
account. The visiting official from branch will be in a position to establish activity, address of the
prospective customer by capturing details (i.e. KYC documents, images of place of business as well
as geo-location). On submission of the details captured by visiting official, the CPV format (PDF) will
be emailed to the concerned branch. Detailed circular is available on OBCWEB HO/CS&P/28/2017-
18/357 dated 03.08.2017. The application is available on Google Play Store and IOS App Store.
OTP based Saving Account

Reserve Bank of India has advised all the Banks to provide an option for One Time Pin (OTP) based
e-KYC process for on-boarding of customers. Our bank is shortly going to launch a new Saving
Scheme which will have Aadhaar authentication through OTP. Restrictions-
•The aggregate balance of all the deposit accounts of the customer shall not exceeds `1.00 lac.
•The aggregate of all credits in a financial year, in all the deposit taken together, shall not exceed
`2.00 lac.
•As regard to borrowal accounts, only term loans shall be sanctioned. The aggregate amount of
term loans sanctioned shall not exceed `60,000 in a year.
•These accounts will be operative only for 12 months within which customer have to complete KYC
formalities else account shall be closed.
BNA as CASH Recycler

Bunch Note Acceptors deployed by the Bank have been converted into Cash Recyclers to dispense
cash as well as accept deposit with the following features:
1. The cash deposited by the customers is recycled and dispensed to customers.

2. Customers can deposit cash in SB/CA/CC/OD accounts only. Instant credit is given in
customer account.
3. Customers can deposit maximum amount of 4.00 Lakh in a single transaction, if PAN is
updated in customer’s account.
Our Bank is presently offering following types of ATM cards to our customers:
Card Variant BIN (First Abbrevia Initial Card Limit (In, interna Eliaible Scheme Code Issuance Fee &
thousands) may be where it AMC
enhanced as per Card
Control Circular
6 diait of tions tional can be issued
card) used accepta
while bility
lodaina
request in
DCREQ
Cash POS Comm Issuan AMC
WDR e rce ce Fee
CLASSIC 435708 VI 25k 25k 25k YES CA101,CA102,CA109, NIL 1st year
CA110,CA113,CC404, free of
OD501,OD510,OD51 charges
1,S6201,S8202,S820 and
Rs.100/,
3,S6204,S8205,S820 + GST
6,SB209/SB210,SB21 from 2nd
1,SB213,SB214, year
SB215,SB217,SB219, onwards
SB220,SB221,SB223,
SB226,SB227,SB225,
SB243
VISA GOLD 459181 G 50k 50k 50k YES CA101,CA102,CA109, 100+GS 150+GST
CA110,CA113,OD501, T
OD510,SB201,SB202,
SB203,SB204,SB205,
SB206,SB209,SB210,
SB211,SB213,SB214,
SB215,SB217,
SB219,SB220,SB221,
SB223,SB226,SB227,
SB225,SB233,OD523,
SB243
RUPAY 652246 PI 25k* 25k* 25k* YES SB204,SB211,SB219, NIL **1st
PLATINUM SB232,SB205,SB206, year free
INT. (OBC SB220,SB202,SB233, of
PREMIUM) OD501, OD510, charges
and
Rs.150/,
+GST
from 2nd
year
onwards
RUPAY 508726 RP 100K 100K 100K NO SB226,SB227/SB211, 150+GS 500+GST
PLATINUM SB202,CA110/CA109, T
(Discontinue OD510,SB232,OD522
d) ,SB243,
RUPAY 607085 RD 25k 25k 25k NO CA101,CA102,CA109, NIL NIL
DOMESTIC CA110,CA113,OD501,
GD510,SB201,SB202,
SB203,SB204,SB205,
SB206,SB209,SB210,
SB211,SB213,SB214,
SB215,SB217,SB219,
SB220/SB221/SB223,
SB226/SB227,SB225,
SB230
RUPAY 508831 RM 20K 20K 20K NO OD505 NIL NIL
MUDRA
RUPAY 607041 JD 25k 25k 2500/- NO SB212,SB216,SB222, NIL NIL
JANDHAN SB224,SB228,
56219,56204,58230,
00521
RUPAY 6071114 OPTION 25k 25k 25k NO CA101,CA113,CC401, NIL NIL
PUNGRAIN ,8 CC402,OD501
RUPAY 607009 RK 25k 25k 25K NO CC404,OD511 NIL NIL
KISAN
• **RUPAY PLATINUM INT. OBC PREMIUM CARD) (652246): Both issuance & AMC charges are nil
for SB 232 & SB 211.
• *RUPAY PLATINUM INT. (OBC PREMIUM) (652246): If this card is issued in Scheme Code
SB232, then the limit will be Rs. 1.00 Lacs each for Cash Wdr, POS & E-Commerce
• Rupay Domestic Card (607085) issued in SB234 (Yuva) is having limits of Rs. 10000/- each for
Cash Wdr, POS & E-Commerce
• Issuance fee & AMC charges given in this table are referred from HO Circular no.
HO/CS&P/48/2016,17/951 dated 31st Dec 2016.
• How to identify CHIP Card:, If 7th & 8th digit of any card is "50 or 51", then it is a CHIP Card,
all other are Magstrip Card.
• Branch can iodge request for Conversion of card usage from Domestic to International or vice
versa through IDEAS Menu -INTERNATIONAL DOMESTIC CARD USAGE CONVERSION) ->
for CHIP Card of these 3 BINs - 435708, 459181 & 652246. For further details please refer
Circular no. HO/ADC/COPEC/201-17/064/878 dated 16.12.2016 .
As per the card control Circular the Maximum Limit & International Activation for various card variant is
as under :
Card Product Card Variant Name Maximum International

Bin Code Limit Activation*
607009 50 RuPay KISAN EMV 25000.00 NA
607041 50 RuPay PMJDY EMV** 25000.00 NA
459181 91 VISA GOLD 500000.00 Allowed
435708 50 VISA EMV 100000.00 Allowed
435708 97 VISA MAGSTRIPE 50000.00 NA
459181 90 VISA GOLD 500000.00 Allowed
459181 51 VISA GOLD PREMIUM 500000.00 Allowed
504580 90 Visually ATM 25000.00 NA
508726 50 Rupay Platinum EMV 200000.00 NA
508726 91 Rupay Platinum Magstripe 100000.00 NA
508726 51 Rupay Platinum SALUTE EMV 200000.00 NA
508831 50 RuPay MUDRA EMV*** 10000.00 NA
508831 90 RuPay MUDRA MAGSTRIPE*** 10000.00 NA
607041 91 RuPay PMJDY Magstripe** 25000.00 NA
607085 91 RuPay DEBIT Magstripe 50000.00 NA
607085 50 RuPay CLASSIC EMV 50000.00 NA
607085 51 RUPAY YUVA EMV 10000.00 NA
607114 90 RuPay PUNGRAIN Magstripe 25000.00 NA
607114 50 RuPay PUNGRAIN EMV 25000.00 NA
607114 51 RuPay PUNGRAIN EMV 25000.00 NA
652246 50 Oriental RuPay Premium Card EMV 500000.00 Allowed
607009 90 RuPay KISAN Magstripe 25000.00 NA
607009 75 RuPay KISAN EMV 25000.00 NA
607041 90 RuPay PMJDY Magstripe** 25000.00 NA
607041 75 RuPay PMJDY EMV** 25000.00 NA
607085 75 Rupay classic EMV 50000.00 NA
607085 90 RuPay Classic Magstripe 50000.00 NA
435708 75 VISA EMV 100000.00 Allowed
ANNUAL FEE ON ATM CARD AND ATM CUM DEBIT CARD :

Revised service charges applicable for use of other Bank’s terminal are detailed as under
( Circular: HO/CS&P/48/2016-17/951 DT 31.12.2016.)
ITEM EXISTING REVISED
VISA RUPAY VISA VISA Gold RUPAY RUPAY

Platinum
1 ATM /Debit Card issue Free Free No Rs.100/- Free Rs.150/-
charges Change Registratio one time
n fee,
2 Annual Fees for 1st year free Free SAME Registratio Same Annual
primary Card of charges and n fee-
Rs..100/- plus fee(Same) , Rs.500
Service Tax Annual Fee instead
frm 2nd year -Rs.150 of Rs.750
onwards
3 Add on Card N.A N.A Same Issuance Issuance Issuance
(As Charges –Free, -Rs.150/-
Applicab Rs.100/- AMC , AMC -
le) ,AMC Same Rs.500
charges
Rs.150/-
4 Debit Card NA Rs.200/-
Replacement Charges
5 Duplicate NA Rs.50/- (for request through branch).

PIN/Regeneration of Nil (if done through Green Pin at ATMs)
PIN through Branch
6 International Transactional Charges

6.1 Balance Enquiry at ATMs NA 15/- Rs.25/- plus ST
6.2 ATM cash withdrawal transactions Rs.80/-USA and Rs.120/- other All Countries (Rs.50/- min +
countries 3% of Txn. amt.) + ST
6.3 Point of Sale(PoS) /e-Com Txns Not prescribed 3% of transaction amount plus
ST
7 Enhanced withdrawal Limit Not prescribed Rs.500 (For a period upto 6
months) & multiples thereof.
8 ATM card/KIT returned by courier Not prescribed Rs.50

due to wrong address
9 Charges for issuance of ADD on Not prescribed Rs.50 (In addition to charges
card mentioned in Point 1 & 2)
10 Transaction declined due to Not prescribed Rs.10

insufficient Balance
For use of Bank’s own ATMs
located in Metro and Non-Metro
Areas:-
• Cash Withdrawal Free for all type of Transactions No Change
• Balance Inquiry for all locations.
11 • PIN Change
• Mini Statement
For use of other Bank’s ATMs Metro areas Non Metro Existing charges on account of
located in Metro and Non- free upto Areas free usage of other bank ATM shall
Metro Areas Max.3 Tran upto Max 5 be applicable to staff also
/Mth Tran /Mth
• Cash Withdrawal
` 20/- Per ` 20/- Per
• Balance Inquiry Transaction Transaction
` 9/- Per ` 9/- Per

• PIN Change Transaction Transaction
12
` 9/- Per ` 9/- Per
• Mini Statement Transaction Transaction
`. 9/- Per `. 9/- Per

Transaction Transaction
*GST Extra
** Metro Centre: Delhi, Mumbai, Navi Mumbai and Thane, Kolkata, Chennai, Bengaluru, Hyderabad,
Gurgaon, Noida, Ghaziabad, Faridabad, Howrah, North and South 24 Paraganas
In terms of HO Circular HO/ADC/12/2015-16/860 Dated 2/02/2016 – Charges were levied on the

staff members also on using the other Bank’s ATMs for more than 3 transactions in a month.
Charges for Aadhaar Enabled Payment System (AEPS)

Transaction Type Transaction description Charges
AEPS ON-US/ Authentication ON-US/ Authentication Nil
Balance Enquiry Rs.5/- per successful transaction
Cash Deposit 1% of fund flow, subject to minimum
Rs.6/- with a maximum cap of Rs.20/-
AEPS OFF-US per successful transaction
Cash Withdrawal 1% of fund flow, subject to minimum
Rs.6/- with a maximum cap of Rs.20/-
per successful transaction
% of fund flow, subject to minimum
Fund Transfer Rs.6/- with a maximum cap of Rs.20/-
per successful transaction
eKYC eKYC Nil
Demographic Authentication Demographic Authentication Nil
Charges for Cash withdrawal transactions on Micro ATM using Card

+ PIN
Cash Withdrawal Amount Per Transaction Charges
(Excluding Service & other
applicable Taxes)
On- Us Any
Off- Us Upto Rs.2,000/- Rs.2/-
(Inter Bank) Rs.2,000/- to Rs.5,000/- Rs.5/-
Rs.5,000/- to Rs.10,000/- Rs.15/-
GREEN PIN – FOR ATM Password Reset
In order to reduce the latency period in delivery of PINs in a cost effective manner and to
contribute towards environment to have minimal carbon footprint as a Green Initiative, the concept
of generation of Electronic PIN using OTP through SMS (GREEN-PIN) has been implemented
for safeguarding the interest of the customers with an aim to minimize customer grievances.
Process Flow – Secure SMS based Electronic PIN & Re-PIN generation
(i) When cardholder visits to OBC ATM and selects option {PIN Management} from the
ATM main menu. Then, new screen prompts two options viz.
(a) {PIN Change} for all cardholders as per present scenario and
(b) {Green PIN} for cardholders whose mobile number is registered with the Bank.
(ii) If cardholder selects {Green-PIN} then, two more options shall be prompted viz.
(a) {OTP Generation} - for generation of One Time Password (OTP)
(b) {OTP Validation} - for validation of already received One Time Password
(OTP).
(iii) If customer selects {OTP Generation} then, 6 digit OTP shall be sent to the registered
mobile number of the cardholder. At present, validity period of OTP has been fixed as 5
minutes only.
(iv) On receipt of OTP, cardholder shall enter the OTP for validation. Now, cardholder shall
be prompted to enter new PIN and to re-enter the same for confirmation.
(v) On completion of PIN entry, new PIN shall be updated in the system after successful
validation of OTP and a confirmation message shall be displayed on the screen.
(vi) In case of delay in receipt of OTP or delays otherwise, cardholder can try other option to
validate the already delivered OTP i.e. {OTP Validation} as per point no. (ii) (b).
New Value Added Services through ATMs wef 19.02.2015

(Circular No. HO/DIT/ATM/ 36 /2014-15/ 922 19.02.15) :-
1. For DTH recharge/ top-up

a) Bank’s customer shall use his/ her card on any of the Bank’s ATMs and select option “Other
services” from the Main menu.
b) Customer shall select ‘DTH recharge’ facility.
c) Customer shall enter Serial number of operator’s name displayed on screen to select his/ her
DTH operator and shall enter his/ her DTH Subscription number, which is to be recharged and
again re-enter the option for confirmation.
d) Customer shall enter the Amount of which DTH is to be recharged (min Rs.200/- and max Rs.
10,000/-).
e) Customer shall enter ATM PIN and thereafter transaction shall get completed.
2. For Prepaid mobile recharge/ top-up

a. Bank’s customer shall use his/ her card on any of the Bank’s ATMs and select option “Other
services” from the Main menu.
b. Customer shall select ‘Prepaid Mobile recharge’ facility.
c. Customer shall enter Serial number of operator’s name displayed on screen to select his/ her
Prepaid Mobile operator and shall enter Mobile number of selected operator, which is to be
recharged and again re-enter the option for confirmation.
e. Customer shall enter amount of which mobile is to be topped up (min Rs.10/- and max Rs.
10,000/-).
f. Customer shall enter ATM PIN and thereafter transaction shall be completed.
3. Separate Limit for E-commerce transactions through Debit Card

Presently, the limit for E-commerce transactions is included in the POS limit only. For eg. if any
cardholder is having a VISA Classic Debit card i.e. Card with ATM+POS functionality enabled, the
daily limit for ATM transactions is `25000/- and limit for POS/ ECommerce transaction is `25000/-.
In this regard, as per current industry scenario, Banks are providing separate e-Commerce limit for
allowing more spread to customers for shopping in a single day.
INTERNET BANKING SERVICES
Internet Banking enables a customer to perform basic banking transactions through Internet from
anywhere in the globe. Customers should use Internet Explorer version 5.0 or later version for
accessing I-Banking. Bank has launched new I-Banking, FEBA- Finacle E-banking Application.
Key Features of New Internet Banking Platform (FEBA)
• Scheduled and Recurring payment of NEFT and RTGS

• Bulk NEFT Payment for Corporate Users
• Online password reset by Retail Users
• Online retail user creation and online User ID Retrieval
• Account statement in PDF Format.
• Virtual keyboard, Calendar option, Dashboard Widgets, Personalized Dashboard
• Setting of Transaction limit by Users themselves for various transaction types.( MaxLimit of
all transaction through I-Banking is ` 25 Lac per Day)
• Setting of default Account which shall be used for online payments.
• Online User Id, Self Limit, Transaction Editing facility.
Our Bank is offering two types of Internet Banking:

Retail Internet Banking Corporate Internet Banking
(https://www.obconline.co.in): For (https://www.obconline.co.in/corp): For
individual customers. The customer can opt for institutional Customers/ Big Corporates. This has
either Enquiry only facility or Transaction features like Mass upload of Salary, Online RTGS
facility. It can be offered to any & NEFT, Online trade finance requests – request
Saving/Current/CC/OD account holders. Only for LC opening, BG issue, Bill lodgment etc,
Query based facilities shall be provided to jointly Feature of Maker/Checker, Feature of Role
operated accounts. Transaction facility shall not definition, Feature of adjusting/defining various
be provided for such accounts limits by corporate administrator itself etc.
Activation of I Banking (Retail Internet Banking) :

Through Branch Customer submits application at branch for activation of I-Banking &
then request is to be entered through DCREQ menu option in Finacle
and verified by DCREQAU option .
Customer Internet Banking Login Created and the user id & Password
is provided by the branch to activate the I-Banking.
Online User Id Creation Create Your Own Login in 5 simple steps. Go to
www.obconline.co.in
Select “Self User Creation”
Enter Account number and PAN/ Date of Birth
Enter OTP received on Registered Mobile number
Enter your Debit Card Details (Debit Card Number, CVV and
expiry date) and Debit Card PIN for validation
Create User ID and password of your choice
Customer Internet Banking Login Created and the services shall be
activated within 24 hours
For activation of Corporate I-Banking, Customer has to submit the application in prescribed format
along with authority and powers, and send the same to COPEC, Gurgaon for issuance of Corporate
I-Banking.
LOGIN TO INTERNET BANKING FAVORITES

Go to www.obconline.co.in The favorite menu for routine operation
Select ‘Retail User Login’ like:
Enter ‘Used ID’ and Submit (Check Read
Disclaimer box) Operative Accounts
Enter Login Password Self/ Linked Account Transfers
Select Default Login page: Manage Beneficiary for Payments
• DASHBOARD Initiate NEFT
• ACCOUNT SUMMARY Change Password
• PERSONAL SETTINGS Set Limits
Tax Credits (View Form 26AS)
ONLINE USER ID RETRIVAL ONLINE USER ID BLOCKING

Now you can retrieve the user ID without Now you can Block the user ID without
visiting the branch visiting the branch
Customer with Registered Mobile number Customer with Registered Mobile number can
can avail this facility avail this facility
Enter Account number Enter Account number
Enter Date of Birth or PAN number as per Enter Date of Birth or PAN number as per
Bank records Bank records
Enter OTP received on Registered Mobile Enter OTP received on Registered Mobile
Number Number
Enter Debit Card details and PIN for Enter Debit Card details and PIN for Validation
Validation along with Linked account along with Linked account number
number User ID Blocked
User ID retrieved Tax Payments
TRANSACTION MANAGEMENT Tax Deducted at Source
Register and Manage beneficiaries. Direct Tax Duplicate Challan Receipt
Create transaction templates for your Login to e-Filling
frequent transactions Tax Payment Inquiry
Set Limits for transactions on your own -------------------------------------------------------------
Schedule payments for one time or -
Recurring payment via NEFT/ RTGS/ Account Related Services
Intra Bank transfers View all operative Deposit and Loan
IMPS-Immediate Payment services for accounts
24*7 payments upto ` 50,000/-. View transactions
Setting default account for payments Mini Statement
Account statement in PDF format View or Stop issued cheques.
Request a new Cheque book.
e-Services Personal Profile

Aadhaar Registration Security Settings (Change Password/
Mobile Banking Registration Change Image or Phrase)
View your Demat Account Other Settings
Link/ De-link ASBA (Application View Personal Details
supported by Block Amount) Set Preferences
Update User ID
Bank has Launched IMPS facility in Internet Banking for instant Inter Bank Fund Transfer and
Credit to Beneficiary Account round the clock on all days.
Following modes of IMPS Transaction are available :
• IMPS using IFSC ( P2A)
• Quick IMPS using MMID ( P2P)
• IMPS Using UID (P2U)
Maximum transaction limit under IMPS is `50,000/- per day.
Some of the facilities in I-Banking are:
Accounts Related Operations Online Balance Inquiry
View transactions
Statement of Account–For a given period, Cheque Status Inquiry
Clearing Instruments Inquiry,
Stop Payment of Cheques etc.
Fund Transfer Operations Fund Transfer Through IMPS on 24x7 basis (Any Bank)
Funds Transfer to own accounts,
Intra Bank Fund Transfer (to other a/c in our Bank),
Inter Bank Fund Transfer (To a/c of other banks through NEFT/RTGS)
Payments: External Payments like LIC of India for Premium Payments, IRCTC
for Railway Reservation, DB (Intt) Stock Brokers Ltd and Sharekhan
for Funds Transfer Facility for Shares Purchases, Payment of
Telephone / Mobile / Electricity bills etc.
Payment of Direct Taxes (E-tax facility) and Indirect Taxes (Central
Excise Tax and Service Tax). Online view of Tax Credit Statement
(Form 26AS)
Functionality To Open Online Open Online FDR/CDRs using “Requests >> e-FDR/e-CDR” Option
FDR/CDR (e-FDR/e-CDR) since October 2012
The facility to create online e-FDRs/ e-CDRs using Retail Net-
Banking facility has been activated only for customers where
mode of Operation of the Account is “Self”, “Either or Survivor”
or “Former Or Survivor”.
Customers are able to open online FDRs / CDRs with the
following scheme codes
1. CDR (Cumulative) – TD303
2. FDR without Liquidation (Fixed Deposit) – TD302
3. NRE CDR – TD325
4. NRO TDR – TD324
5. NRO FDR – Non Liquidation – TD323
Other Facilities Online Share Trading in Collaboration with IDBI Bank.
Subscribing to an issue (IPO/Right issue) through ASBA
The customer can make can make online payment for VAT and
Central Sales Tax for Govt. of Maharashtra.
Payment of Loan Installments.
PPF ACCOUNT Functionalities provided for PPF accounts are:
FUNCTIONALITY THROGH 1. PPF account linking
I-BANKING 2. View Account Details
3. View Nominee Details
4. View/Download Account Statement
Functionalities to be introduced shortly:
1. Online Funds Transfer to PPF account
2. Online PPF Account opening
De-centralizing the processing of Re-Issue requests for Retail Net Banking Password to respective
ADC Cluster Office level
• Queries on status of existing Retail I-Banking users.
• Re-setting of passwords (login and/ or transactional) and sending them through
• SMS to registered mobile number of customer.
• Enabling/ disabling Retail I-Banking users.
COMMON REPORTED ISSUES & ITS RESOLUTION
Sr.No. Problem Issues Resolution

1 Inserting correct ATM Pin but Delete cache & history
the system is prompting as - Check Expiry date for mat as YY/MM
Wrong PIN
2 Unable to Login inspite user Error as backend file for the New User Creation file is
creation being successful “You required to be downloaded and uploaded to Finacle for
don’t have any accounts linked bulk creation. (Ideally to be active in 2 working days)
with User ID”
3 System is going to blank page - Browser compatibility Issue
in any one of the creation page
4 System doesn’t allow to Set The customer ID is the User ID and the same can be
User ID for Login modified under ‘Personal Setting’
5 Message prompts “Wrong - In case of wrong login credentials the message
password and max. attempts” will be prompted for wrong password
- User can attempt for a maximum 5 times after
which the User ID will be disabled
Customer is then required to raise the password reissue
request with the branch
6 RSA image and Phrase The User ID is invalid…as a security measure this
‘Welcome’ message is not flashed on web page
7 The Issue reported in Point 2 - The issue can also be escalated by customer as that
alternate problem they are unable to login and error message flash ‘User
ID blocked’. The resolution is to help customer right
user ID
8 Customers tend to change user The information can be accessed in the Custom User ID
Id in Custom User ID and forget tab in the admin portal for issue resolution
9 Message prompts “User ID - Login Password Disabled
already disabled, please contact - Invalid User ID
bank administrator”
10 Troubleshoot Invalid User ID -Common error is that Customers are giving space in
issues between user id
- You can check User ID through Cust ID after obtaining
a/c credentials in Admin portal
11 System is going to blank page - Please check browser compatilibity
while login
12 System doesn’t allow to Set The customer ID is the User ID and the same can be
User ID for Login modified under ‘Personal Setting’
Mobile banking App (OBC M-Pay)
Card Services – mPAY : Debit Card PIN can be Reset and Card can be hot listed using Mobile
Banking App Online Reset MPIN – mPAY : Mobile Banking M-Pin can be regenerated online using
Debit Card credentials Sign-Up Mobile Banking : This is one of the major new initiative of the Bank
using which customer can self-register for Mobile Banking using Debit Card and Account Details
• Launch of functionality in Internet Banking to make instant Inter Bank fund transfer and
credit to the beneficiary account round the clock 24*7*365 days using IMPS (Immediate
Payment Services) P2U (Person to UID using Aadhaar number.)
• Launch of functionality of online registration of Atal Pension Yojana (APY) in Internet
Banking platform.
• Launch of PPF subscription and online PPF Account opening in Internet Banking platform
• Oriental Unified Pay ‘Unified Payment Interface’ (UPI), mobile based android application
which powers multiple bank accounts (of participating banks) using Virtual Payment Account
(VPA) and several other banking services features like fund transfer (P2P), QR based
payments, etc
• Launch of Aadhaar Payment Bridge (Credit) services as sponsor Bank which allows our Bank
to make bulk transactions towards distribution of subsidies, dividends, interest, salary,
pension etc using Aadhaar number.
Advantages of Mobile Banking
1. 24*7*365 service because Settlement Agent National Payments Corporation of India (NPCI).
2. Instant Fund Transfer (Fund Transfer Option within Bank & IMPS for outside Bank including
Merchant payments).
3. Safe, Secure, Convenient & Time Saving.
4. Anytime, anywhere service (Remittances within India only. No Forex transactions).
5. Instant confirmation to sender & receiver.
6. Security enforced through mandatory entry of MPIN for each & every transaction whether
Financial or Non Financial in Application Based Mobile Banking. In USSD Mobile Banking, MPIN is
required for Financial Transactions only.
7. Totally Secure. No Information stored in Mobile. No store only forward. Encrypted messages are
forwarded.
How to start with OBC Mobile Banking (OBCmPAY) or USSD
Customers can register for Mobile Banking by submitting form at Branch or register through their
Internet Banking login or using Debit Card at ATM Machine.
1st Step Registration for obc mpay.

Through Branch : Registration can be done through OBC Branch where customer has
his/her account by filling up the mobile banking registration form which shall then be entered
through MOBNKRQ option. COPEC’s mobile banking division will download the next day and
process the same
or
Through any OBC ATM (Insert card Main Menu Other Requests -> Mobile Banking
Registration Enter Mobile no. on which obc mpay desired Confirm Mobile No.
Select account type if prompted for Enter Pin.
Now also through any Bank ATM -> Pls. refer Circular No. HO/DIT/ATM/3/2016-
17/35 dated 25/05/2016 “Launch of Inter Bank Mobile Banking registration through
ATMs.”
or
Through Netbanking Log into OBC Netbanking also known as FEBA and select Register for
Mobile Banking provided under Favourites on Main Page or e services in Main Menu and the user
will be prompted to select account no. and mobile no. from dropdown for the purpose of Mobile
Banking. OTP will be generated & Customer to enter Transaction Password & OTP. Complete the
process by pressing Register button. Please refer to Circular No. HO/DIT/FEBA/2/2016-
17/106 dated 7th May 2016.
Upon successful registration either through branch or through OBC ATM or through Netbanking,
the customer receives 2 sms, one communicating Application Password (APIN) & Mobile Banking
Password (MPIN) and the other sms will be the mobile banking application to be downloaded for
application based mobile banking.
Note : Sim on which Mobile Banking is to be registered should be in primary slot (Slot
No. 1) if dual/multiple sim handset. It may not be mandatory but at times
issues do occur is sim is not in primary slot.
There are 2 types of Mobile Banking which are as follows:
(1) Mobile Banking through USSD. Common Platform provided to all Banks by NPCI.
Features:
(1) Very simple and WITHOUT INTERNET facility & Smartphone’s.
(2) Runs on very cheap mobile handsets.
(3) Does not require internet (GPRS).
(4) Bank does not charge anything. However the telcos charge a flat rate of Rs.1.50 for each
option irrespective of Bank as NUUP is implemented through NPCI and not individual banks &
this is deducted from SMS balance.
(5) No need to download any application. Customer can start mobile banking immediately after
registration.
Mobile Banking is accessed through NUUP (National Unified Unstructured

Supplementary Services Data Platform) (USSD) by:
(1) Registration either through Branch or any OBC ATM or Netbanking and then
by dialing *99*53# from the mobile (Direct Menu Code (53) for OBC (Circular No.
HO/ADC/8/2015-16/732 dated 15th. Dec. 2015
OR
by dialling *99#. Welcome to NUUP will be displayed & instead of APIN it will ask for first 4
letters of Bank’s IFSC code i.e. ORBC or Bank’s s 3 digit short Code i.e. OBC. If mobile
Banking has been registered for other banks also through the same mobile no., then
by dialing *99# and putting the first 4 letters of that Bank’s IFSC or the 3 letter short
code of that bank, mobile banking services of that bank can also be accessed.
Other Banks have also started providing access to USSD through respective nos. apart from
NUUP. OBC provides USSD mobile banking thru NUUP only. NUUP is presently
accessed on GSM platforms only. It runs even on cheapest mobile handsets with bare
minimum features. Presently OBC does not charge anything for either Application Based or NUUP
Based Mobile Banking. However, operators are charging for NUUP @ 1.50/- per outgoing sms
Check with your mobile operator.
Presently, through NUUP i.e. *99*53# Menu options available are :

Balance Enquiry (MPIN Not Required for this option in USSD Mobile Banking).
1. Mini Statement (MPIN Not Required for this option in USSD Mobile Banking).
2. Send Money Using MMID (Enter your MPIN, Beneficiary’s Mobile No. Beneficiary’s 7 digit
MMID & amount for Fund Transfer). For this particular option, Beneficiary needs to be
registered with his / her bank’s Mobile Banking)
3. Send Money Using IFSC (Enter your MPIN, Beneficiary’s Account No. Beneficiary’s IFSC Code
& amount for Fund Transfer). For this particular option Beneficiary needs not to be
registered with his / her bank’s Mobile Banking)
4. Fund Transfer- Aadhaar (To be enabled in our Bank later on).
5. Know MMID - 7 digit MMID of self can be known through this option.
6. Change MPIN - First time MPIN is to be changed compulsorily. Later on, it can be changed
as and when desired.
7. Generate OTP - For generation of One Time Password to be used in Merchant Transactions
(P2M Pull).
Presently, maximum fund transfer / payment limit per day for NUUP based
mobile banking service is `5,000/-
Instead of going into the Menu, one can also dial the following :
For Balance Enquiry Dial *99*53*1#

For Mini Statement Dial *99*53*2#
For Instant Money Transfer Dial *99*53*3# or *99*53*4#
NPCI has allotted 53 as direct code of OBC. For some other banks, it is as follows :
(2) Application Based ( i.e. non USSD ): Initially bank vide circular no HO/DIT/40/2009-
10/822 dated 20.02.2010 launched Mobile Banking facility for its customers.
• Account Balance Inquiry
• Mini Account Statement
• Intra Bank Funds Transfer (Within OBC both Mobile to Mobile and Mobile to beneficiary A/c )
• Inter Bank Fund Transfer through NEFT, IMPS P2A & P2P
• Merchant Payments through IMPS P2M
• ATM & Branch Locator
• Cheque Status Inquiry and Stop Payment
Now vide circular ,no. HO/DIT/MBK/27/2016-17/ 914 dated 22 December 2016, bank had launched
new mobile banking app, having additional features.
1. Authentication of every login by inward OTP (instead of silent SMS being sent earlier by the
pervious App). This will save cost of SMS to the customer for every login, which was borne
by the customer.
2. Access of all operative accounts of the customer (having teh same Customer ID and same
Mobile Number as registered for SMS Alerts)
3. IMPS Outward Transactions based on Aadhaar Number of the beneficiary (IMPS P2U)
4. Online NEFT based on straight through processing.
5. Login Password to be set by the customer himself/herself on first login.
ELIGIBILITY & PREREQUSITE :
1. Customer having operative account ( Saving , Current or Overdraft)

2. Mode of operation – Self, Either or Survivor, any One or Survivor
3. Mobile Number registered for SMS Alerts in all accounts of the Customer ID.
4. Android or Apple Smartphone (Android version preferably 4.4 and above, iOS 6.0 and
above)
For availing this Mobile Banking, customer can register for Mobile Banking by submitting form at
Branch or register through their Internet Banking login or using Debit Card at ATM
Machine.(Already Explained )
After registration, Mobile banking users need to activate / download the mobile banking application
onto their mobiles. Following options are available
App based Mobile Banking

(a) Android /Apple or any other proprietary based handsets can download /install
application from their Play Store by tapping on the icons displayed on their
mobiles :
In the search button type obc mpay like this and tap with your
finger.
Note : There is space between obc and mpay
For accessing Play Store / Store you may need to have a gmail account.
(b) Using GPRS (General Packet Radio Service which is also known as Mobile
Internet) . If internet runs on the handset then using the URL
https://mobile.fssnet.co.in/MPAYPORTAL or the app. link obtained on handset i.e. 2nd. SMS
during registration
(c) If there is no Play Store /Market / Store available on handset and there is also
no GPRS, then the application can be downloaded on any PC / Laptop or other
device as detailed in point (b) above and the same can be transferred to mobile
using Data Cable or memory card reader.
Menus & functionalities of obc mpay (Application Based)
After installation of OBC Mobile Banking (obc mpay), the obc mpay icon will appear on mobile
screen
Download the OBC-mPAY application through Play store and install the same on your mobile.
Following Screens will appear.
After providing Mobile Number, OTP will be sent on this mobile number and then proceed with new
creation of new Login Password.
Issues normally faced in Mobile Banking :

(1) Registered through Branch / ATM but Pins not received
Normally this situation occurs when a person has already registered for mobile banking with a
mobile no. for a particular account and now he/she has changed the mobile no. and is attempting
to register with the same account with new mobile no. while the registration is still available with
the old mobile no. The old mobile no. needs to be deregistered first only then new mobile no. can
be registered with the same account.
OR
There could be a vice versa situation that a particular mobile no. is already registered with an
account and now the customer is trying to register another account with the same mobile no.
In both the above cases, the ground rule i.e. Within 1 Bank, 1 Mobile can be registered with
1 Account No. at a particular point of time gets violated and Pins will not be received.
Pls. check with Mobile Banking Cell at COPEC – VOIP 1232 or email id mbank@obc.co.in
(2) Customer has registered for SMS alerts and has not registered for Mobile Banking but
downloaded the app obc mpay and is unable to use the same.
SMS Alerts and mobile banking are separate platforms and each require separate registrations
even if the mobile no. and account no. are same for SMS Alerts registration and Mobile
Banking Registration.
(3) Customer has bought SMS pack but has reported that while using Mobile Banking – NUUP i.e.
*99#, the SMS balance gets reduced everytime by Rs. 1.50/- from main balance and not SMS
pack.
USSD is different from normal sms. It is coded whereas normal sms are uncoded as such, it will
not go from sms pack but gets deducted from main sms balance as per agreement between
NPCI & telcos.
SMS ALERTS
The Bank’s SMS Alert Services are capable of enabling customers and for those Alerts as selected
by them. Any Customer of Bank having Mobile phone irrespective of the Mobile Service Provider viz.
Airtel, MTNL, Vodaphone, VSNL, Idea, Reliance etc., can avail this service.
Transaction type Credit/ Minimum Amount for which SMS alert is

Debit sent
1 Transactions using ATM or Debit Card Debit No minimum amount, alert to be sent for all
transactions
2 Other transactions (Non-Card based) Debit 5000/-
3 Other transactions Credit 10000/
Charges for SMS Alerts/Internet Banking

S.No Item Existing Revised
A SMS Alert/Missed Call Rs.15/- per Quarter, all SMSM Rs.25/- per half year
Banking Facilities alerts free except following
security alerts (charges, actual
cost of alerts) :- (1) Instruments
based or cash transaction (2)
Cheque book issue (3) Cheque
presenting for clearing (4) Cheque
bounce
B Internet Banking Free No Change
MISSED CALL SERVICE & MINISTATEMENT
• Balance enquiry ACBAL to 9915622622

• Statement on SMS STM to 9915622622
• Cheque Stop facility STOP<space>14 digit a/c no.<space><Cheque number> to
9915622622
• ATM Card Hot listing BLOCK<space>14 digit a/c no.<space>Last 4 digit card number to
9915622622
• BALANCE ENQUIRY THROUGH MISS CALL - “Now you can get balance of your 3 last
transacted A/cs by giving a miss call only at +918067205757. This facility is available 3
times a day.”
Unified Payment Interface – (UPI)

What is Unified Payments Interface (UPI)?
Unified Payments Interface (UPI) is a next generation online payment solution which will leverage
trends such as increasing smartphone adoption and deepen penetration of mobile data. UPI will
empower users to perform instant push and pull transactions seamlessly which will transform the way
people make payments today.
Why is it unique?
• Single click 2-Factor Authentication for subsequent transactions
• 'Virtual address' as a payment identifier for sending to & collecting money from
• Bill splitting with friends
• Best answer to Cash on Delivery hassle, running to nearest ATM or rendering exact amount
• Merchant Payment with Single App or In-App Payments
• Schedule, PUSH and PULL Payments for various purposes
• Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments
• Donations, Collections, Disbursements Scalable
UPI - Benefits
Benefits for banks:
• Single click 2-Factor Authentication for subsequent transactions
• Universal app for transaction
• Leveraging existing infrastructure
• Security (on other bank app, it uses the NPCI library to securely capture credentials)
• Payment basis Single / Unique Identifier
• Enable seamless merchant transactions
Benefits for end Customers:
• Round-the-clock Availability
• Single app for accessing different bank accounts
• Use of Virtual ID is more secure, no credential sharing
• Faster checkout
• No time-out scenario
Benefits for merchants:
• Seamless fund collection from customers - single identifiers
• No risk of storing customer's virtual address like in cards
• Suitable for e-com & m-com
• Resolves the COD collection problem
• Single click 2FA facility to the customer - seamless Pull
• In-App Payments (IAP)
Minimum Requirements
• Should use the mobile number which is registered for Mobile Banking
• Android Based Smartphone
• Should have a Debit Card issued in the account for setting M-PIN
• Data connection on Mobile phone
• DownloadOBCPSP.apk(From OBC eCirculars Download Section)
OTHER IT PRODUCTS
Real Time Gross Settlement (RTGS)
RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to
another on a “real time” and on “gross” basis. RTGS is a Systemically Important Payment (SIP).This
is the fastest possible money transfer system through the banking channel. Settlement in “real
time” means payment transaction is not subjected to any waiting period. The transactions are
settled as soon as they are processed. “Gross settlement” means the transaction is settled on one
to one basis without bunching with any other transaction. RTGS is used for both customer
transactions and Inter Bank Transactions. The Operating session for RTGS Transactions at Branches
is given hereunder:
If the transaction fails or gets rejected for any reason, the amount will be credited back to the
account from which the transaction was made. All RTGS transactions are irrevocable once the
account is debited and the Bank executes transaction. Any revocation, after the payment order is
executed by the bank, shall not be binding on the Bank in the RTGS system.
RTGS Timings : w.e.f 1/09/2015:
Transaction Type Timings
Customer Transaction (R41) Monday to Saturday – 08:00 hrs to 16:15 hrs (Except
II & IV Saturday)
Inter-Bank Transaction (R42) Monday to Saturday – 08:00 hrs to 19.30 hrs (Except
II & IV Saturday)
This cut-off time is for the messages to reach at RBI end.
Transaction Amount:
Minimum Remittance Amount Maximum Remittance Amount
The minimum amount to be remitted through There is no upper ceiling for RTGS.
RTGS is ` 2.00 lacs
There is no limit on the number of transactions per day per Customer.
Charges:
Transaction Amount Transaction Charges
For Outgoing Transactions from ` 2.00 to 5.00 lacs `25/- + Service Tax per transaction
For Outgoing Transactions above ` 5.00 Lacs, `50/- + Service Tax per transaction
Al Inward transactions are free
National Electronic Fund Transfer (NEFT)
National Electronic Funds Transfer (NEFT) system is a nationwide funds transfer system to facilitate
transfer of funds from any bank branch to any other bank branch. RBI intends that high value
transactions should be routed through RTGS and small amount transactions should be routed
through NEFT. NEFT is only for fund transfer on behalf of the customers. NEFT works on deferred
net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes
place at a particular point of time. All transactions are held up till that time. Any transaction initiated
after a designated settlement time would have to wait till the next designated settlement time.
Transaction Amount: No minimum & maximum ceiling for transaction amount.

For Indo-Nepal remittance amount upto `50,000/- can be remitted (Cash/Transfer). A person can
send fund maximum 12 times in a year. NEFT transaction upto `50000/- is allowed against cash.
NEFT Batch Timings : w.e.f 11/07/2017:
Transaction Type Timings

N06 Messages Monday to Saturday – 08:00 hrs to 18:45 hrs (Except II & IV
Saturday)
Twenty Three Half hourly settlements are carried out during the day
by RBI
The messages sent before the above batch timings shall be included in the respective settlements
otherwise they shall be included in the next batch/day.
Charges:
Transaction Amount Transaction Charges

For Outgoing Transactions upto ` 2000.00 NIL
For Outgoing Transactions from ` 2000.00 to 1.00 `10/- + Service Tax per transaction
Lacs
For Outgoing Transactions above ` 1.00 Lacs to 2.00 `15/- + Service Tax per transaction
Lac
For Outgoing Transactions above ` 2.00 Lacs `25/- + Service Tax per transaction
Al Inward transactions are free
Electronic Clearing System (ECS): It is a mode of electronic funds transfer from one bank
account to another bank account using the services of a Clearing House. This is normally for bulk
transfers from one account to many accounts or vice-versa. This can be used both for making
payments like distribution of dividend, interest, salary, pension, etc. by institutions or for collection
of amounts for purposes such as payments to utility companies like telephone, electricity, or
charges such as house tax, water tax, etc or for loan installments of financial institutions/banks or
regular investments of persons. It eliminates delays due to postal / clearing as the amount gets
directly credited to the respective customers account.
There are two types of ECS called ECS (Credit) and ECS (Debit). ECS (Credit) is used for
affording credit to a large number of beneficiaries by raising a single debit to an account, such as
dividend, interest or salary payment. ECS (Debit) is used for raising debits to a number of accounts
of consumers/ account holders for crediting a particular institution. Customers are required to fill up
the prescribed form (No. E-1) indicating choices of periodicity of such payment and expected
number of credit and aggregate amount. Detailed procedure is given in Clearing Operations
Chapter. Bank has also become part of NACH (National Automated Clearing House)-Debit services
as destination Bank (Cir DIT/27/14-15/628 dt. 04.11.2014.)
Immediate Payment System (IMPS)
IMPS is the fast, secure & 24*7 fund transfer mechanism controlled by National Payment
Corporation of India (NPCI ). In order to cater the need of our customers who are willing to use this
facility through Branch Outlets, a separate module has been enabled in Finacle. With this new
facility, any customer can make instant Inter Bank Fund Transfer and credit the funds to
beneficiary’s account during the branch business hours.
The salient features of the new functionalities are given below:

Name of the Menu in FINACLE IMPS
Fund Transfer IMPS enables Inter Bank Fund Transfer of fund
instantly on real time basis.
Maker/Checker Enabled
Types of Transactions supported 1) Transfer transactions.
2) Cash transactions for WALK-IN customers.
Limit of amount per transfer transaction. Minimum : Rs. 100/=
Maximum : Rs. 2,00,000/=
Limit of amount In case Cash (walk-in KYC Minimum : Rs. 100/=
documents required )* Maximum : Rs. 49999/=
Reports All transactional reports can be used.
However, MISREP>IMPLREP>IMPRPT is available
to download the IMPS at branch transactions.
Charges : IMPS FUND TRANSFER
Inwards Nil
Outwards Transaction Upto Rs.1000/- Free
In case customer use net banking/mobile/ATM then Transaction above Rs.1000/- Rs.5 + GS.T.
no charges applicable
Various types of IMPS transactions offered by NPCI are as below :-
a) IMPS P2A (Person to Account) - Funds Transfer on the basis of beneficiary's account
number and IFSC Code
b) IMPS P2P (Person to Person) - Funds Transfer on the basis of beneficiary's mobile
number and MMID (Mobile Money Identifier). MMID is a seven digit number provided to
account-holder by its Bank. Combination of mobile number and MMID is uniquely linked to
customer's account number.
c) IMPS P2U (Person to Unique ID)- Funds Transfer on the basis of beneficiary's Aadhaar
Number
Our Bank is presently offering IMPS through various channels as below :-
Internet Banking Mobile Banking Bank's ATM Branch Module

Machine
IMPS P2A Yes Yes No Yes
IMPS P2P Yes Yes Yes Yes
IMPS P2U Yes Yes Yes Yes
Limits allowed for IMPS Transactions

Following types of limits are allowed for IMPS Transactions for outward transactions:-
Amount in ?
Channel-wise (Applicable on Per Per Daily Limit Monthly
Account) Transaction Transaction Limit
Minimum Maximum
Internet Banking 10 50000 100000 3000000
ATM 10 10000 10000 300000
Branch Module 10 200000 1000000 3000000
Mobile Banking 10 50000 100000 3000000
IMPS transactions from / to NRE and NRO Accounts is presently not allowed.
Point of Sales Terminal (POS)
Point of Sales (POS) terminals are deployed/installed at Merchant Establishments (ME) i.e. shops,
petrol pumps etc. For making any payment, debit card is swapped on these terminals and the
amount is entered, the transaction is processed and the customer’s primary account linked with the
Proton card is debited online.
ADVANTAGE
1. Cash handling is better with POS.
2. Online transaction and direct Credit to the account.
3.Customer willing to pay through Card and if the merchant don’t have the facility then it’s a
discouragement for customer.
4. Encouragement for customers to spend more as no physical cash is involved
As of 31/03/2018 bank has installed 8123 POS terminals across country .
ASBA - APPLICATION SUPPORTED BY BLOCKED AMOUNT
ASBA is an application for subscribing to an issue (IPO/Right issue) and the new initiative of SEBI
for the welfare of Investors, containing an authorization to block the application money in a bank
account maintained with Self Certified Syndicate Bank (SCSB). SCSB is a bank which offers the
facility of applying through the ASBA process. ASBA is gaining importance day by day and the
customers are demanding this facility. It is beneficial to both the customers as well as the Bank
because the amount remains in the bank account of the customer till allotment is finalized and
actual amount equal to allotted shares is only debited instead of total application amount. It helps
the Bank not only to retain existing customers but also to attract new customers.
NOTE : ALL THE BRANCHES ARE AUTHORISED FOR ASBA
Bank is using Maitri ASBA Software ver 1.0.0.1 by BESTFIT
CTS : Cheque Truncation System :
Cheque Truncation System (CTS) is a image based Clearing System (ICS), started by RBI in 2008,
for faster clearing of cheques. In CTS cheque images and Magnetic Ink Character Recognition
(MICR) data are captured at the collecting bank branch and transmitted electronically. Truncation
means, stopping the flow of the physical cheques issued by a drawer to the drawee branch.
Cheque truncation is the conversion of a physical cheque into a substitute electronic form for
transmission to the paying bank. Cheque truncation eliminates cumbersome physical presentation
of the cheque and saves time and processing costs.
In CTS, operations are divided into 3 grids i.e. Northern, Western & Southern Grid. In CTS local
clearing is abandoned and grid level authentication of the instruments is taking place.
Salient Features of the CTS Instrument :
1 . Bank/Branch Address along with IFSC code printed on the top of the cheque.
2. Standardized date Format.
3. Void Pantograph is embossed on left hand side of the cheque leaf.
4. Printer name along with printing” CTS 2010”
5. Rupee symbol” ` “ instead of bilingual format.
6. “Please sign above” is mentioned on cheque leaf on the right hand side bottom.
In CTS it is the responsibility of the Collecting Banker to check the authenticity of the
instrument, as the same is stored at the collecting banker End.
It is also the responsibility of the collecting banker to verify the instrument under the UV
LAMP.
No Cutting is allowed in the instrument except the date, which needs to be re- authenticated
by full signature.
Signature at the instrument needs to be placed on the proper defined place i.e. right bottom
corner of the instrument.
NACH : National Automated Clearing House
National Payments Corporation of India (NPCI) has implemented “National Automated Clearing
House (NACH)” for Banks, Financial Institutions, Corporates and Government a web based solution
to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in
nature. NACH System can be used for making bulk transactions towards distribution of subsidies,
dividends, interest, salary, pension etc. and also for bulk transactions towards collection of
payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance
premium etc
National Automated Clearing House (NACH) is a centralised system, launched with an aim to
consolidate multiple ECS systems running across the country and provides a framework for the
harmonization of standard & practices and removes local barriers/inhibitors. NACH system will
provide a national footprint and is expected to cover the entire core banking enabled bank branches
spread across the geography of the country irrespective of the location of the bank branch
With the implementation of NACH system, NPCI intends to provide a single set of rules (operating
and business), open standards and best industry practices for electronic transactions which are
common across all the Participants, Service Providers and Users etc. NACH system also supports
Financial Inclusion measures initiated by Government, Government Agencies and Banks by
providing support to Aadhaar based transactions.
The NACH system facilitates the member banks to design their own products and also addresses
specific needs of the banks & corporate including a refined Mandate Management System (MMS)
and an online Dispute Management System (DMS) coupled with strong information exchange and
customised MIS capabilities.
The NACH system provides a robust, secure and scalable platform to the participants with both
transaction and file based transaction processing capabilities. It has best in class security features,
cost efficiency & payment performance (STP) coupled with multi-level data validation facility
accessible to all participants across the country.
Any Branch Banking (ABB)
ABB enables the customers to access his account from any of our Branches from any where in
India. Customer can deposit cash / cheque across all the CBS branches and can operate his/ her
account from any of CBS branch. Both Normal and Multicity Cheque books can be used for
conducting ABB transactions. Such cheques are payable at any of our branches. It is not only
convenient for the customers but also saves on time and transaction cost.
Services Offered under ABB:

Cash Deposit at any of the CBS branch.
Cash Withdrawal to SELF/Third Party at any of the CBS branch.
Balance and Statement inquiry to SELF at any of the CBS branch.
Instant Funds Transfer between CBS branches.
Cheques Collection/Payment at any of the CBS branch.
Closure/Renewal of Term Deposit Account at any of the CBS Branch
Cash Withdrawal / Cash Deposit:

i. Maximum limit for Cash Withdrawal txns. - `1.00 lac per day per account. (This limit can be
relaxed upto 25 lacs by RH/CMH-BB/CMH-CB and further upto 50 lacs by GM-BB/GM-CB per
day/per customer once in a month. HO/CS&P/16/16-17/278-04.07.2016)
ii. For cash withdrawal under ABB, any type of cheque (multi-city or normal) is accepted. Cash
withdrawal using Withdrawal slip is not permitted.
iii. In case of third party cash withdrawals, maximum permissible limit is fixed for a single
occasion/ single day at `25000/- only in SB and Current accounts. Also KYC document should
be obtained.
iv. No minimum / maximum limit for cash deposit.
Transfer Transactions:
a. No minimum/maximum limit for fund transfer.
b. One account (either debit or credit) should be of transaction initiating SOL.
c. Any type of Cheque (normal or multi city) accepted.
v. Exception - in case of no account of transaction initiating SOL, txn upto `1.00 lac per day per
account may be permitted by Branch Incumbent or Second Man. (This limit can be relaxed
upto 25 lacs by RH/CMH-BB/CMH-CB and further upto 50 lacs by GM-BB/GM-CB per day/per
customer once in a month. HO/CS&P/16/16-17/278-04.07.2016)*
Clearing Transactions:
a. In outward clearing, any branch can collect cheque for credit to any account belonging to any
CBS branch.
b. In case of inward clearing, only Multi city cheques are accepted other than in the case of
speed clearing where normal cheques are also accepted.
Anywhere Banking Branch (ABB) Charges
RBI vide letter no DBOD.No.Dir.BC.26/13/13.03/2013-14 dated July 1, 2013 has advised

banks not to discriminate against their own customers on the basis of one branch being
designated as the “home branch” where charges are not levied for products/services and
other branches being referred to as the ‘non-home’ branches where charges are levied for
same products/services. In order to ensure that the bank’s customers are treated fairly and
reasonably without any discrimination banks should follow a uniform, fair and transparent
pricing policy. If a particular service is provided free at home branch, the same should be
available free at non home branches also. There should be no discrimination as regards
intersol charges between similar transactions done by customers at home branch and those
done at non-home branches.
It has been approved by the bank that no ABB charges shall be levied for deposit of cash (subject
to compliance of all rules for deposit of cash) by customers at non base branch for credit to
Progressive Deposit/ Variable Progressive Deposit (OBC Aadhar) and Loan accounts.
ABB transactions at third branch (other than the Drawee and Payee’s branch) for transfer entries
are permitted only up to Rs 1.00 Lac. Issuance of Demand Draft/Pay Order / NEFT/RTGS under
anywhere banking (other than drawee branch) is permitted only up to Rs 1.00 Lac per Demand
Draft (subject branch manager's/2nd man discretion)Relaxation as above*.
OBC eTaxes
The Bank is providing this facility through which direct taxes and indirect taxes can be deposited
by the customers online through the net banking services from the comfort of their office or
home. The challan will be generated online and the same should be preserved for future reference
and records.
Procedure for e-payment for Direct Taxes:

1. To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS 281,
ITNS 282 OR ITNS 283, as applicable.
2. Enter its PAN/TAN as applicable. There will be an online check on the validity of the
PAN/TAN entered.
3. If PAN/TAN is valid the taxpayer will be allowed to fill up other challan details like accounting
head under which payment is made, name & address of TAN and also select the Bank
through which payment is to be made, etc.
4. On submission of data entered a confirmation screen will be displayed. If the taxpayer
confirms the data entered in the challan, it will be directed to the net banking site of the
bank.
5. The tax payer will login to the net-banking site with the user-id/password provided by the
bank for net-banking purpose and enter payment details at the Bank site.
6. On successful payment a challan counterfoil will be displayed containing CIN, payment
details and Bank name through which e-payment has been made.
Online Tax Accounting System (OLTAS)

OLTAS is a service provided by the bank for acceptance of Income Tax and other direct taxes on
behalf of Government. The customers including Corporates, Individuals, Proprietorship concerns,
Partnership firms, Trusts, Club, Society, etc. can pay their tax liability through bank’s OLTAS
window available through select branches across the country.
LAUNCH OF DBTL (DIRECT BENEFIT TRANSFER FOR LPG) SERVICES
Presently Direct Benefit Transfer for LPG consumers is implemented through Aadhar seeding in
Bank accounts and onward registration of Aadhar numbers with Consumer numbers at OMC portal.
Now, National Payments Corporation of India (NPCI) has implemented “Direct Benefit transfer for
LPG” for seeding of LPG consumer ID in Bank accounts directly.
A meeting was held in the Prime Minister’s office on 22.10.2014 on issues relating to DBTL. It has
been decided as under:
“Multiple approaches will be used for seeding LPG databases with bank accounts and Aadhaar
numbers. Oil Marketing Companies (OMCs) will collect Aadhaar numbers and Bank account details
at LPG distributors and through drop boxes at other locations. Bankers could also use the Pradhan
Mantri Jan Dhan Yojana methodology and data collected to assist in the seeding process.
Two modes of seeding of bank accounts in LPG database are available in this scheme:
(a) Bank accounts details captured by OMCs (Oil Marketing Companies) and bank account
information (account number + IFSC + name of account holder) will be sent to banks electronically
via NPCI and banks will confirm the veracity of the information as per their records. Thereafter
OMCs can seed that bank account information in the LPG database. (Option 1)
(b) LPG consumer can approach Bank directly. LPG consumer ID will be captured by bank at the
branches against the bank account and the pair of LPG consumer ID details and bank account
information will be then electronically sent back to OMCs by bank.(Option 2)”
FINACLE MENU OPTION

Enter menu “DBTLE” after login into finacle for entry & DBTLV for verification
EXPLICIT CONSENT FOR LINKING OF AADHAAR WITH A/C No. IN

FINACLE -
Now, UIDAI and NPCI have issued revised guideline to Bank regarding Aadhaar
Seeding and updation of Aadhaar numbers on NPCI mapper. In reference to this, we
have made necessary changes in CBS for Aadhaar Seeding. All Aadhaar seeding
request must be accompanied with explicit consent of the customer in the
prescribed format.
FINACLE MENU OPTION : AADHAARE

Enter DBT Flag : Y/T/N. ( There are 3 options )
Y - For DBT and Aadhaar related transactions.

T - For only Aadhaar related transactions (No DBT allowed)
N- Only seeding (No DBT/ transactions are allowed)
Enter IIN (Institute Identification Number) of the previous bank (only if the entered Aadhaar
is already seeded with another bank in NPCI mapper and is provided by the customer in the
consent form.)
Verify the record using Finacle menu AADHAARV
OBC-SBI Co-branded Credit Card

Bank has entered into an MOU with SBI Cards and Payments Services Private Limited (SBICPSL) on
14.09.2011 for issuing Co-branded Credit Cards to our employees and customers.
There will be two types of Credit Cards to be issued (i) SBI-Oriental Bank of Commerce Gold & (ii)
SBI-Oriental Bank of Commerce Platinum
The cards shall be issued in two variants as under 1.Secured 2. Unsecured Secured Cards shall be
issued against the lien marked on the Term Deposit of the customer. Unsecured Cards shall be
issued without any security.
ORIENTAL BANK OF COMMERCE- SBI ORIENTAL BANK OF COMMERCE-

PLATINUM CARD SBI GOLD CARD
ANNUAL FEE ` 2999 ` 499
CREDIT LIMIT UPTO: ` 500000 UPTO: ` 175000
CASH POINTS 2 PER `100 SPENT 1 PER `100 SPENT
INTEREST RATE 3.35% P.M. (2.25%P.M. FOR SECURED 3.35% P.M. (2.5 % P.M. FOR
CARD) SECURED CARD)
Add on Card: An applicant is entitled to apply upto 2 additional cards for his/her spouse, parent,
son/ daughter (above 18 years), brother/sister (above 18 years).
IDRBT – Institute for Development and Research in Banking Technology was
established by the Reserve Bank of India in 1996 as an Autonomous Centre for Development
and Research in Banking Technology.
INFINET – Indian Financial Network
SFMS – Structured Financial Messaging System
Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely
identify the bank-branches in India. This is 11 digit code with first 4 characters representing the
banks code, the next character reserved as control character (Presently 0 appears in the fifth
position) and remaining 6 characters to identify the branch.
National Payments Corporation of India (NPCI) - It is the umbrella organization for
Payment Systems. The IBA Core Group has incorporated the Umbrella Organization as a Section
25 Company. National Financial Switch (NFS) for ATM sharing is being maintained by NPCI.
Electronic Accounting System in Excise and Service Tax (EASIEST) – System initiated
by Central Board of Excise and Customs (CBEC) to receive information and maintain records of
tax paid through banks through online upload of challan details.
INFORMATION SECURITY :
The purpose / objective of the Information Security Policy is to provide the bank with a standard
information security framework to address and manage various security risks to information assets
and quality maintenance.
The main objective of this exercise is to ensure that each and every user of the technology either
from the branches / offices or delivery channels go through appropriate levels of authorization and
authentication to ensure that they are categorized as secured and trusted users.
Business goal of the Information Security Policy is to protect resources and assets from loss.
Resources may include –
• information: including information in transmission such as transactions, circulars, e-mails,
configuration data, etc.
• services: systems, applications
• equipments: computers, networking components
EACH RESOURCE HAS SEVERAL ASSETS THAT REQUIRE PROTECTION:
• confidentiality (secrecy or privacy): preventing disclosure of information to
unauthorized persons
• integrity: preventing corruption, impairment, or modification of information, services, or
equipment
• authenticity: proof that a person or other agent has been correctly identified, or that a
message is received as transmitted
• availability: assurance that information, services, and equipment are working and available
for use
• the state of the system; this includes changes to data and to software
CYBER SECURITY
In view of recent increase in online attacks on financial institutions "Information Systems" the
Reserve Bank of India has asked banks to immediately put in place a Cyber-Security Policy and
advised banks to enhance the resilience of the banking system by improving the current defenses in
addressing cyber risks.
As advised by Reserve Bank of India, Bank has put in place Board approved Cyber Security Policy
vide circular no. HO/RMD/CISO/125/2016-17/1020 dated 11-01-2017. In order to have Cyber Safe
environment across Bank, high level of Information Security/Cyber Security awareness is required
among staff at all levels. Contents of Cyber Security/Information Security
• Importance of Strong Passwords

• Use of HTTPS and Online Security
• Computer Infection
• Caution while using Computer in Public Domain Fraudulent Websites
• Piracy/Unauthorized Software
• Suspicious emails & URL’s
• Protection of Personal data
• Precaution to be taken on Social Media
RBI has also advised banks to educate customers specially those having background from
Rural/Urban and new customers on an ongoing basis. In view of this Head Office vide circular
HO/ADC/9/2015-16/782 dated 04-01-2016, advised the “Introduction of ADC Day in
Branches on 1ST Saturday Of Every Month ”, to educate customers on Bank’s Digital Products
and related Cyber security aspects by organizing camps at Branches and Corporate Customers,
University, Colleges etc whose employee salary accounts are with our Bank.
Common Terminologies
a. Phishing: In the field of computer security, phishing is the criminally fraudulent process of
attempting to acquire sensitive information such as usernames, passwords and credit card
details by masquerading as a trustworthy entity in an electronic communication.
b. Firewall: Firewalls are network devices that control access to organization’s network assets
by monitoring and filtering network traffic or more precisely a device that separates a trusted
network from un-trusted network. Firewalls can be implemented in both hardware and
software, or a combination of both. Firewalls protect sites from exploitation of inherent
vulnerabilities in the TCP/IP protocol suite.
c. VSAT - Very Small Aperture Terminal
d. Hacker: Generally refers to individuals who gain unauthorized access to computer system for
the purpose of stealing & corrupting data.
e. HTTP: The protocol for moving hypertext files across the Internet. Requires a HTTP client
program on one end, and an HTTP server program on the other end. HTTP is most important
protocol used in World Wide Web (WWW)
f. Internet: The vast collection of inter-connected networks that are connected using the
TCP/IP protocols and that evolved from the ARPANET of the late 60's and early 70's. The
Internet connects tens of thousands of independent networks into a vast global internet and is
probably the largest Wide Area Network in the world.
g. Intranet: A private network inside a company or organization that uses the same kinds of
software that you would find on the public Internet, but that is only for internal use.
h. IP (Internet Protocol) Address: A unique number consisting of 4 parts separated by dots,
e.g. 172.28.x.y. Every machine that is on a network has a unique IP address.
i. Network: A group of two or more computer systems linked together.
j. LAN (Local Area Network): A computer network limited to the immediate area, usually the
same building or floor of a building.
k. WAN (Wide Area Network): Any network that covers an area larger than a single building
or campus.
l. Malware: Short for malicious software, software designed specifically to damage or disrupt a
system, such as a virus or a Trojan horse.
m. Spam or Spamming : An inappropriate attempt to use a mailing list or other networked
communications facility as if it was a broadcast medium (which it is not) by sending the same
message to a large number of people who didn't ask for it.
n. Spyware: Software that is secretly installed on a users’ computer and that monitors use of
the computer in some way without the users' knowledge or consent.
o. SSL (Secure Socket Layer): A protocol to enable encrypted, authenticated communications
across the Internet.
p. Virus: A chunk of computer programming code that makes copies of itself without any
conscious human intervention. Some viruses do more than simply replicate themselves, they
might display messages, install other software or files, delete software of files, etc. A virus
requires the presence of some other program to replicate itself. Typically viruses spread by
attaching themselves to programs and in some cases files, for example the file formats for
Microsoft word processor and spreadsheet programs allow the inclusion of programs called
"macros" which can in some cases be a breeding ground for viruses.
q. Worm A worm is a virus that does not infect other programs. It makes copies of itself, and
infects additional computers (typically by making use of network connections) but does not
attach itself to additional programs; however a worm might alter, install, or destroy files and
programs.
r. Ripper Malware:-It is designed to capture cash unit details to determine the number and
types of notes available in the ATM Machine. With this malware banks are targeted rather
than customers.
List of Important URLs of various servers of our bank
Intranet Sites
1. Finacle Live http://172.16.2.60:10200

2. Finacle D R Site http://172.16.64.105:10150
IDEAS(For post issuance of ATM / IBanking
3. http://10.4.4.174:7003/ideasAtms/
facility)
http://172.16.2.61:8080/NetCAST/NC_Index.jsp
4. Net Cast (For Reports)
http://172.16.64.211:8080/NetCAST/NC_Index.jsp
5. OBCweb (E-Circualrs) http://172.16.200.10/obcweb
6. Findart [For Old (Before CBS) Data] http://172.16.2.128/FinDart
7. IMaCS SOFTWARE (Risk Rating) http://172.16.2.118/irs2011_obc/login.aspx
8. HRMS http://172.16.98.27:9090/psp/ps/?cmd=login
9. CrisMac (MIS Server) http://172.16.64.3/OBCMIS/Login.aspx
10. ATM Cell, DIT HO http://172.26.217.217/
11. Proposal Tracking System http://172.16.68.20/pts

12. ASBA (OFFLINE) SERVER http://172.16.10.6/maitri_asba/index.aspx
Bhopal Online Br/Emp/Telephone Directory
13. http://172.28.128.99
(for details of employee & study material)
Internet Sites
14. Oriental Bank of Commerce https://www.obcIndia.co.in
15. OBC Ibanking - Retail https://www.obconline.co.in
16. OBC Ibanking – Corporate https://www.obconline.co.in/corp
Some Important E-Mail IDs:
Head Office
Activities handled Email ID
Department
CBS Help Desk CBS Queries/Issues – General Banking cbsretail@obc.co.in
CBS Help Desk CBS Queries/Issues – Loans & Recovery cbsloans@obc.co.in
CBS Help Desk CBS Queries/Issues – Trade Finance cbsfex@obc.co.in
CBS Help Desk CBS Queries/Issues – Others cbshelpdesk@obc.co.in
Data Centre, Mumbai Technical Issues related to Finacle datacentre@obc.co.in
Internet Banking Cell All Internet Banking related queries/ issues ibank@obc.co.in
ATM Card Operations / Charge back etc coc@obc.co.in
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ATM TXN RESPONSE CODE
RESPONSE RESPONSE
DESCRIPTION DESCRIPTION
CODE CODE
000 Approved with Balance 061 Withdrawal limit would be exceeded
001 Approved –no Balances 062 PIN tries exceeded
050 Unauthorised usage 063 Withdrawal limit already exceeded
051 Expired Card 068 External Decline
052 Invalid Card 070 System error
053 Invalid PIN 071 Contact Card Issuer
054 Database Problem 072 Destination not Available
055 Ineligible Transaction 073 Routing not Available
056 Ineligible Account 074 Message edit error
057 Transaction Not Supported 150 Unauthorised card usage (capture
card)
058 Insufficient Amount with no 151 Expired Card (Capture Card)
Amount 3
059 Insufficient Amount with Amount 162 PIN tries exceeded (capture card)
3
060 Uses Limit exceeded 1XX Any other response code where the
card is captured
RECOVERY / NPA NORMS
Prudential Asset Classification Norms

An asset, including a leased asset, becomes non performing when it ceases to generate income for
the bank, further A non performing asset (NPA) is a loan or an advance where the Asset is either
overdue or out of order as under:-
Overdue (T/L, Bills)
Interest/Principal remains overdue for more than 90 days
Bills purchased or bills discounted remains overdue for more than 90 days
Overdue (Agriculture Advances)
Interest/Principal remains overdue for more than 2 Crop Seasons (Short Duration crops)
Interest/Principal remains overdue for more than 1 Crop Season (Long Duration crops)
In case of interest payment- In case of interest payment bank should classify any account NPA,
only if the interest charged and due is not fully paid within 90 days from the end of the quarter.
Out of Order (CC/OD)
(i) If o/s balance remains in excess of sanctioned limit/DP continuously.
(ii) Where o/s balance is within sanctioned limit/DP but there are not credits
continuously for 90 days as on date of balance sheet or
(iii) Credits are not enough to cover the interest debited during the same period.
Overdue Status: If due amount not paid on due date.
NPA due to non submission of Stock Statement: - A working capital borrowal account will
become NPA if such irregular drawings are permitted in the account for a continuous period of 90
days even though the unit may be working or the borrower's financial position is satisfactory
NPA due to non renewal of working capital limits:- account where the regular/ ad hoc credit
limits have not been reviewed/ renewed within 180 days from the due date/ date of ad hoc sanction
will be treated as NPA
Up-gradation of loan accounts classified as NPAs:- If arrears of interest and principal are paid
by the borrower in the case of loan accounts classified as NPAs, the account should no longer be
treated as non-performing and may be classified as ‘standard’ accounts
RBI/2017-18/129 DBR.No.BP.BC.100/21.04.048/2017-18 February 07, 2018

Relief for MSME Borrowers registered under Goods and Services Tax (GST)
Presently, banks and NBFCs in India generally classify a loan account as Non-Performing Asset (NPA)
based on 90 day and 120 day delinquency norms, respectively. It has been represented to us that
formalization of business through registration under GST had adversely impacted the cash flows of
the smaller entities during the transition phase with consequent difficulties in meeting their
repayment obligations to banks and NBFCs. As a measure of support to these entities in their
transition to a formalized business environment, it has been decided that the exposure of banks and
NBFCs to a borrower classified as micro, small and medium enterprise under the Micro, Small and
Medium Enterprises Development (MSMED) Act, 2006, shall continue to be classified as a standard
asset in the books of banks and NBFCs subject to the following conditions:
(i) The borrower is registered under the GST regime as on January 31, 2018.
(ii) The aggregate exposure, including non-fund based facilities, of banks and NBFCs, to the
borrower does not exceed Rs. 250 million as on January 31, 2018.
(iii) The borrower’s account was standard as on August 31, 2017.
(iv) The amount from the borrower overdue as on September 1, 2017 and payments from the
borrower due between September 1, 2017 and January 31, 2018 are paid not later than 180 days
from their respective original due dates.
(v) A provision of 5% shall be made by the banks/NBFCs against the exposures not classified as NPA
in terms of this circular. The provision in respect of the account may be reversed as and when no
amount is overdue beyond the 90/1201 day norm, as the case may be.
(vi) The additional time is being provided for the purpose of asset classification only and not for
income recognition, i.e., if the interest from the borrower is overdue for more than 90/120 days, the
same shall not be recognized on accrual basis.
Other Guidelines (Asset Classification)

Income recognition policy- Actual v/s Accrual Basis (Exception-Advances against Liquid Securities.
Fee/Commission on renegotiation/ rescheduling)
Reversal of Income:-Entire unrealized Interest and other income as on date of NPA
Appropriation of Recovery-First Other Charges then Interest then Principal
Asset Classification Sub Standard-Doubtful and Loss
Asset Classification borrower wise and not facility wise, Exception-LC /BG bills discounted under
LC (such NFB facilities NPA only if invoked/ devolved)
Advances under consortium arrangements NPA on the basis of Individual Bank’s record of
recovery
Erosion in RV of security –At the time of inspection if value of security remained <50% from the
last assessed value- classify a/c straight way as DF
Erosion in RV of security –if remained <10% of balance outstanding straight way as Loss
Interest if not payable during moratorium period- account not NPA for non serving interest during
M. Period (if it is not due)
The credit facilities backed by guarantee of the Central Government though overdue may be
treated as NPA only when the Government repudiates its guarantee when invoked. This is for
Asset Classification purpose and Provisioning Norms will be as per other FB advances.
For State Government Guaranteed advances the Asset Classification and Provisioning will be on
the basis of 90 days norms
Asset Sub-Classification and Provisioning Norms:-

NPA norms Provisioning Norms
Secured Unsecured Infrastructure
projects
(Unsecured)
Sub Standard NPA <= 1 year 15% 25% 20%
Doubtful
D-I Sub Std > 1 year / DF up to 1 year 25% 100% 100%
D-II Doubtful >1 Yr to 3 years 40% 100% 100%
D-III Doubtful > 3 years 100% 100% 100%
Loss Loss identified by internal/ external 100% 100% 100%
Auditors-RBI
Note:- Where advances are covered by CGTMSE/ECGC etc. there would be no provision
on unsecured portion to the extent of CGTMSE/ECGC coverage available.
Provisioning in Standard/ RSTR Assets

Segment Provision as % of Balance O/s
Direct Advances to Agriculture and Micro & Small under MSME 0.25 %
sector
Advances to Commercial Real Estate 1.00 %
Advances to Commercial Real Estate for Residential Housing 0.75 %
(CRE-RH)
Housing Loans at Teaser Rates (till the teaser rate of interest 2.00%
continues)
All other L&A (Standard) not covered above 0.40%
New restructured accounts wef 01.06.2013 5.00 %
Restructured Advances when upgraded to Standard (for first 2 5.00 %
years from 31.03.2016
Provisioning Coverage Ratio (70% indicated by RBI) Provision on NPA / Gross NPA
The provisioning in respect of existing loans/exposures of banks 5% in cases of standard accounts
to companies having director/s (other than nominee directors of
government/financial institutions brought on board at the time
of distress), whose name/s appear more than once in the list of
wilful defaulters
The Securitization and Reconstruction of Financial Assets &

Enforcement of Security Interest Act 2002
The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Bill
having passed by both the houses of Parliament received the assent of the President on 17th
December, 2002. It came on the Statutes Book as THE SECURITISATION AND RECONSTRUCTION
OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 (54 of 2002) and
was amended time to time.
By virtue of the said Act, Banks/FIs have been empowered to take action against their defaulting
borrower(s) for recovery of their dues by enforcing the secured assets without intervention of the
courts.
The Act also provides for establishment of Asset Reconstruction Companies (ARCs) regulated by RBI
to acquire Assets from Banks & Financial Institutions for reconstruction/ resolution of Non
Performing Assets.
Definition
Securitization:- Means acquisition of financial assets by any Securitization Company or
Reconstruction Company from any originator, whether by raising of funds by such Securitization
Company or Reconstruction Company from qualified institutional buyers by issue of security
receipts representing undivided interest in such financial assets or otherwise.
Reconstruction:- Means acquisition by any Securitization Company or Reconstruction
Company of any right or interest of any bank or financial institution in any financial assistance
for the purpose of realization of such financial assistance.
Enforcement of Security (without the intervention of the Court)-The Bank/ FI's can
issue demand notice to the defaulting borrower and guarantor, calling upon them to discharge
their dues in full within 60 days from the date of the notice. If the borrower fails to comply with
the notice, the Bank may take recourse to one or more of the following measures without
intervention of the court.
Take possession of the security
Sale or lease or assign the right over the security
Manage the same or appoint any person to manage the same
Pre-condition for enforcement under the Act

Account should be classified as NPA:- Sub-standard, Doubtful, Loss (whether Suit Filed or
not, even simultaneous action can be initiated). {Requirement of classification of secured debt
as NPA not applicable to debt securities; and to debenture trustee. Section(13) w.e.f. 01.09.16}
Limitation:- Initiation of action under the Act does not extend the limitation, as such limitation
(preferably for next 12 months) should be alive at the time of initiating action under the Act
Secured Assets only:- Action under the Act can be initiated by the secured creditors against
secured assets only & not against unsecured assets. {The term financial assets expanded to
include beneficial interest in tangible assets given on hire/lease/conditional sale and in
intangible assets or license or assignment of such intangible assets. Section 2(I)(v) w.e.f.
04.11.16}
Outstanding dues:- Balance of Principal and interest thereon should be more than or equal to
Rs. 1.00 lac and amount due is more than 20% of Principal plus Interest.
In case of Joint lending where the secured assets are common:- Bank can initiate
action u/s 13(iv) of the Act, provided the Bank has consent of more than 60% of the creditors in
value of the amount outstanding. If Bank has exclusive charge over any asset, no such consent
is required.
Reference before BIFR:- Shall abate if secured creditors not less than ¾ in value of
outstanding have taken action under section 13(iv). {from 1 December 2016, by an official
notification, Government of India dissolved it and all proceedings to be referred to the National
Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) as per
provisions of Insolvency and Bankruptcy Code.[2]}
Registration of charge with the CERSAI:- section 26D-amendment 2016-The secured
creditor is entitled to proceed under SARFAESI Act only if charges in its favour have been
registered with the CERSAI.{ the charges will be effective from the date of registration with the
Central registry, All types of Mortgages (excluding charge over agriculture land) and
Hypothecation etc have to be registered with the CERSAI.}
Ineligible Accounts (section 31)
The Act is not applicable to certain rights / security interest namely
Lien on goods, money of security;
Pledge of movables
Security interest over Aircraft or Ship / Vessel
Rights of Unpaid seller
Properties not liable to attachment under Code of Civil Procedure.
Security Interest in Agricultural land
Security Interest in Loans below Rs. 1 lakh
Any case in which the amount due is less than 20% of the Principal amount and interest
thereon
Issuance of Notice u/s 13 (ii)
Check Eligibility:- Check eligibility of account for issuance of notice.
Verification of documents:- Verify the documents and particulars of the Security to be
enforced under the Act.
Visit to the Secured Asset:- Before proceeding further a visit of secured assets should be
undertaken to get the first hand information of present status of secured assets.
Issue 60 days’ notice to the borrower and Guarantor(s) u/s 13(ii) :- To be issued to
the borrower and Guarantor on the prescribed formats appended with Recovery Policy of the
Bank.
Demand Notice:- The notice u/s 13(ii) is deemed as demand notice (Recall Notice). Once
action initiated, all subsequent actions shall be taken by the Authorized Officer only on behalf of
the Bank/FI under SARFAESI Act.
Service of notice:- Through Speed Post/ Courier/Hand Delivery. Download AD from the PO
site of Speed Post delivery within 30 days (beyond 30 days such records are not available on
the site of Post Office)
If notice not served:-It may be published in 2 newspapers also.
Reply to objections:- If any objection has been raised by borrower or guarantor u/s 13(3a) ,
it must be replied within 15 days of receipt of the letter.
Issuance of Notice u/s 13(iv)
Possession u/s 13(iv):- After 60 days of issuance of notice u/s 13(ii), issue notice to the
obligants u/s 13(iv) for possession of the secured assets . Possession could be symbolic,
constructive or physical. The notice can be delivered or affixed on the outer door or on some
conspicuous part of the property.
Publication of possession notice:- The possession notice should be published in 2 leading
newspapers of which one should be in vernacular language having sufficient circulation in that
locality., within 7 days from the date of possession.
Filing of CAVEAT:- Section 18C(2013)- Sometimes obligants may approach DRT/Courts for
stay against the actions under the Act and the DRT/Courts may issue Stay Order. As such it is
prudent to file CAVEAT in the DRT & in case of J&K in Distt/High Court. The effect of filing of
Caveat is that the Competent Court/ DRT cannot grant Stay without hearing the Bank/F.I.{Cir-
R&L-11.11.16:- In case of eligible accounts, CAVEAT should be filed in DRT & concerned High
Courts be filed after giving notice u/s 13(ii) & before initiating action u/s 13(iv) of the SARFASIE
Act before initiating sale process.}
Obtain undertaking:- From borrower(s)/ Guarantor(s)/Director(s)/ Partner(s)/Mortgagor(s) as
the case may be for peaceful handover of possession of the secured assets (Such possession is
called constructive possession).
If possession is resisted:- Bank/FI may consider appointment of enforcement agency and
approach to the CMM/DM. As per new amendment (Jan-2013) the CMM/DM may authorize any
officer subordinate to him to take possession of the secured assets & forward the same to the
secured creditors). CMM/DM is required to pass the orders on the basis of affidavit by
Authorized Officer only within 30 days which may be extended max. by another 30
days.(Amendment 2016, Section 14)
Development pursuant to issuance of notice u/s 13(iv)

Appointment of Enforcement agency:-Identification & appointment of enforcement agency
(if so warranted)
Borrower may come forward for settlement :- Obligants may request for settlement of the
account after issuance of notice u/s 13(ii) or u/s 13(iv) of the Act. The request may be
considered on merits and as per Settlement Policy of the Bank. In case any settlement is
approved, obtain TAMSUK Deed (on the prescribed format)
TAMSUK Deed:- The undertaking executed by the obligants will dispense with the need of
issuing fresh notice under SARFAESI Act in case of default of settlement by the borrower
pursuant to issue of notice under the said Act.
Payment of overdues and upgradation of account:- Authorized Officer with the
permission of higher authorities may withdraw the notices and stop further proceedings under
the SARFAESI Act if borrower pays overdues and regularize the account after compliance of
other conditions.
Caution against any stay order from DRT:- A.O. should ensure that there is no adverse
order/ stay from the DRT to stall the proceedings under SARFAESI Act before taking over the
secured assets/ possession of secured assets.
Release of Securities:- In case the obligants request for release of the Property (ies)
mortgaged to the bank after issuance of 60 days notice period the bank may consider the
request of the obligants on merits by accepting cash / draft equivalent to the RV of the security
/ property (ies).
Symbolic, Constructive or Physical Possession:- (Rule 4-8 of the Act) Possession of
moveable asset shall be only physical whereas in case of immovable assets it could be
symbolic(Notice pasted), Constructive (Notice pasted and borrower/mortgagor has given
undertaking for peaceful handover of the possession at later stage) or physical (Actual). As per
SARFAESI Act there is no difference in Symbolic or Physical possession.
Order of taking over the secured Assets:- Where there are multiple secured assets,
following order for taking possession shall be ensured-(1) Residential House, (2) Shops, (3)
Plots, (4) Commercial Properties, (5) Factory Land & Building, (5) Moveable Assets such as –
Stock, Debtors, Plant & Machinery
Panchnama/ Inventory:- while taking over possession of moveable/ immovable assets
Panchnama & Inventory shall be prepared by the A.O. Borrowers shall be informed through
notice the same.
Use of muscle power:- While taking possession, use of muscle power by borrower is a
cognizable offence. (section 32 & CCP 1973 section 173)
Protection and Insurance of assets:- After possession, secured lender has to make suitable
arrangements for protection and insurance of assets
Priority to Secured Creditor:-The Debt due to Secured Creditor shall have Priority over all
other debts and revenues, taxes, cesses & rates payable to Centre/State Govt. Local bodies.
(Amendment Act 2016 Section 26E)
Developments after taking over Possession of the secured Assets
Right to appeal to DRT:- Borrower has right to appeal in the DRT within 45 days from the
date of possession of secured Assets as such A.O. should ensure that there is a minimum gap of
45 days between possession and sale
Delay in disposal by DRT:- In case DRT is not deciding the case beyond 4 months secured
creditor can approach the DRAT to order DRT for early disposal. Borrower has right to appeal
against decision of the DRT but has to deposit (with the tribunal & not with the creditor) 50% of
the amount within 30 days, which can be reduced to 25% by the DRAT. If there is no stay or
injunction from the competent court; the secured creditor goes for valuation of the assets
(fixation of reserve price) from a valuer empanelled under SARFAESI Act by the Bank
Fixation of upset (Reserve ) Price:-The Reserve price be fixed at realizable value by the
valuer on penal under SARFAESI Act. Valuation should not be older than 1 year from the date of
fixing of auction. {After one unsuccessful auction, various authorities can reduce the reserve
price as under:- CMH (Classic and Cluster)-10%; HLCC-GM -20%; HLCC-ED -30%; CAC-40%,
MCB-Full powers-circular RRL-834 dated 05.01.2018}
Information to the borrower/Guar./Mortgagor:- Bank shall inform by writing “Please note

that the Bank shall put your property/ies on auction/sale on the date/s at the Reserve Price as
mentioned above. This is for your information.” {Earlier practice of asking for the suggestions
from the Borrower/Guar./Mortgagor by giving 30 days’ notice has been done away. Amendment
under section 9(i)}
Who could be the valuer:- Valuer approved by the board of the directors of the Bank and is
registered valuer u/s 34AB of the Wealth Tax Act, 1957.
Issuance of 30 days Sale Notice:- A.O. shall issue sale notice to the borrower (annexure
VII) of 30 days for sale of the secured assets on “ as is where is” basis (in case of movable
properties) & on “as is what is” basis (in case of immovable properties).
Issuance of Public Notice:- The sale notice shall also got published in 2 leading newspapers
having sufficient circulation in that locality and one of the newspaper should be in vernacular
language, by the A.O. setting out the terms of the settlement.
Sale of Secured Assets (Rules 6 & 8 of the Act)
Upload of all auction notice on Govt’s site:-As per directions of GoI (MoF) no auction
should take place without auction notice being put on the Government web portal
(tenders.gov.in) for at least 30 days.
Mode of auction:- Secured Assets can be auctioned in any of the following modes, (a)
Tenders from the public, (b) by obtaining quotations, (c) by holding public auction & (d) by
private treaty. However in case of immovable property the mode of auction shall be e-auction
only. {Sale of immovable assets as per Rule 8 & movable assets as per Rule 6}
Auction process:- (Tender or Public Auction) Intending bidder will deposit EMD (Earnest
Money Deposit). Successful bidder shall deposit 25% of sale price (adjusting the EMD already
paid) immediately on acceptance of the offer (or latest by next working day) by the A.O. &
balance 75% shall be deposited within 15 days of confirmation of the sale by the A.O. or A.O.
may extend it maximum upto 3 months with written consent of Bank and the purchaser.
Forfeiture:- If the successful bidder fails to deposit balance amount of 75% of the bid amount
within the prescribed period, the amount deposited shall be forfeited (the amount is not
credited in the borrowal account )
Cancellation of Sale:- If borrower/guarantor/mortgagor pays all dues before publication of
Sale notice (Amendment 2016, Section 13(8)), A.O. can cancel the sale and refund the amount
received from the bidder. {In view of these amendments, the sale notice should not contain the
redemption clause. The right of redemption (get the property released after paying dues of the
Bank) is available at any time before publication of sale notice only and not thereafter. Refer-
Cir-Law/727-15.11.16}
Perishable goods:- Authorized Officer can sell the perishable goods at once being perishable
or subjected to quick decay, or the expenses of keeping such property in custody is likely to
exceed its value.
Post Sale Activities
Issue of Certificate of sale for movable secured assets:- A.O. shall issue Sale Certificate
to the successful bidder after having received the total sale price within the stipulated time
period.
Encumbrance on property:- A.O. may allow the purchaser to deposit money required to
discharge of encumbrance (if any)
Excess amount:- If the amount received after sale of property is more than Bank’s/F.I.’s dues;
the excess amount shall be repaid to the owner of the secured assets.
Shortfall after sale of secured assets:- An application for the recovery of the balance
amount can be moved before the DRT/ the Competent Court in pursuance to section 13(10) of
the Act.
Overriding effect of the Act:- The Act has overriding effect over the provisions of sections 69
& 69A of the Transfer of Property Act.
Registration of Sale-Certificate:- Purchaser will get the Sale Certificate registered with the
office of concerned Sub-Registrar on payment of necessary stamp duty.
Certificate of possession from the purchaser:- Bank/FI should obtain certificate of
possession from the purchaser that he/she has received the physical possession of the
immovable property intact & in good condition, to his/ her entire satisfaction
Miscellaneous
Physical possession after sale of immovable property:- In case if the property has been
sold on the basis of symbolic possession, A.O. is even authorized to take physical possession
and for this may seek assistance from CMM/DM u/s 14 of the Act
Jurisdiction:- No Civil Court shall have jurisdiction to entertain any suit or proceedings in
respect of any matter which a DRT or DRAT is empowered by or under this Act to determine
and no injunction shall be granted by any Court or other authority in respect of any action taken
in pursuance of this Act.
Assets sold by the borrower after notice u/s 13(ii) without consent of the Bank:-
Bank/ FI may immediately file an FIR with the concerned Police Station & also report the matter
to the CMM/DM and/or DRT.
Amendment of section 13(5A, 5B, 5C) vide notification dated 15.01.2013:- The
Secured creditor may bid for purchase of the immovable property for which the sale has been
postponed for want of a bid. The secured creditor may authorize one of his officers to
participate on his behalf in such auctions at any subsequent sale.
Action under Guarantor:- The creditor may proceed against the guarantor and sell the
pledged assets, without exhausting the other remedies available to him, under the Act, 2002
Authorized Officer:- Officers of Scale IV (Chief Manager) and above are authorized officers
under the SARFAESI Act.
Hypothecation:- Hypothecation was not defined earlier under any Act, for the first time it has
been defined u/s 2(n) of the SARFAESI Act, as “Hypothecation means a charge in or upon any
movable property, existing or future, created by a borrower in favour of a secured creditor
without delivery of possession of the movable property to such creditor, as a security for
financial assistance & includes floating charge and crystallization of such charge into fixed
charge on movable property.
Central Registry of Securitization Asset Reconstruction and Security Interest of
India (CERSAI):- CERSAI has been set up with effect from 31.03.2011 as per provisions u/s
20 to 26 of the SARFAESI Act for the purpose of registration of Transaction of Securitization &
Reconstruction of Financial Assets and creation of security interest.
Amendment of section 13 vide notification dated 15.01.2013:- The Secured creditor
may bid for purchase of the immovable property for which the sale has been postponed for
want of a bid. The secured creditor may authorize one of his officers to participate on his behalf
in such auctions at any subsequent sale.
Important Sections and Time Limits (SARFAESI Act-2002)

60 days’ notice before possession 13(ii)
Possession notice of secured Assets 13(iv)
Assistance by Chief Metropolitan Magistrate or Dist. Magistrate intaking 14

possession
Application to DRT against possession notice issued by the bank 17
Appeal against DRT to DRAT by depositing 50% amount 18
Summary of Time Limits in SARFAESI Act 2002
Notice before possession (initial notice/ recall notice) 60 days
Reply to objection by borrower 15 days
Borrower can approach DRT against possession notice without deposit of 45 days
any amount
Appeal to DRAT against decision of DRT by deposit of 50% amount which 30 days
can be reduced to 25%by DRAT
Notice before sale 30 days
Period of balance payment 75%by the buyer of assets 15 days
Debt Recovery Tribunals

Background:- Banks and Financial Institutions have legal recourse to file suits in the civil courts
for recovering their bad debts but with the expansion of bank credit, the size and number of suits
with the civil courts also increased enormously. However the process of civil courts is long drawn
and cumbersome besides being uncertain. Thereby a separate judicial authority for Bank NPAs was
necessitated. In the backdrop of this requirement, Parliament on 24.06.1993 enacted the “Recovery
of Debts Due to Banks and Financial Institutions Act-1993” & the Debt Recovery Tribunals and Debt
Recovery Appellate Tribunals were constituted especially for Bans and Financial Institutions.
Applicability:- Throughout India except J&K.

Eligible Cases:- NPAs of Banks and F.Is. With outstanding of Rs. 10 lakh above are eligible.
Centre Government can reduce the amount to Rs. 1 lakh. Appeal against action under SARFAESI
Act can be made with DRT. DRT also conducts LOKADALATS for cases with dues of >20 lakh.
Constitution:- DRT is headed by one Presiding Officer who is assisted by one Registrar for day to
days administrative functions & one or more recovery officers. P.O. is appointed for a period of 5
years or up to age of 62 whichever earlier.
Jurisdiction:- From the date of constitution of the DRT, no other court has jurisdiction of the
eligible cases of DRT and all existing cases to be transferred to the DRT. DRT may ;
•Appoint a receiver of any property, before or after grant of certificate for recovery of Debts.
•Remove any person from the possession or custody of the property.
•Confer upon the receiver all such powers as the tribunal thinks fit.
•Appoint a Commissioner for preparation of an inventory of the properties of the defendant or for
the sale thereof
Procedure of filing application:- The application u/s 19 or section 31A, or u/s 30(1) of the Act
may be presented as nearly as possible in Form I, Form II and Form III respectively annexed to
these rules.
Place of filing application:- The application shall be filed by the applicant with the Registrar
within whose jurisdiction
The applicant (Bank/F.I.) is functioning,
•The defendants or each of the defendants or any of the defendants resides or carries on business.
•The cause of action, wholly or in part, arises.
Other Features:-
Limitation:- Time barred applications cannot be filed with the DRT and provisions of limitation Act
1963 applies.
Time Limit of disposal of application:- Expeditiously as possible and endeavor shall be made to
dispose of the application finally within 180 days from the date of receipt of the application.
Withdrawal of application:- Banks/F.I.s may, with the permission of the DRT withdraw The
applications (filed with DRT) for the purpose of taking action under SARFAESI Act.
Refund of Fee:- If any application filed before DRT is settled before the final order of DRT is
passed.
Appellate Tribunals:- Any person aggrieved by the order of DRT nay prefer Appeal to the
DRAT (Debt Recovery Appellate Tribunals) having the jurisdiction
Recovery Officer:- Recovery Officer has various powers such as attachment, sale, arrest,
appointment of receivers, powers available under provision of 2nd and 3rd schedules of the Income
Tax Act 1961, Income Tax Rules 1962.
Amendments: Various amendments to DRT Act 1993 have been enacted with effect from
12.08.2016 through the “Enforcement of Security Interest and Recovery of Debts Laws and
Miscellaneous Provisions
(Amendment) Act, 2016” which have been referred as “Amendment 2016” in this booklet.
Important Points at the time of filing claim before DRT
Limitation:- Ensure Limitation is alive as per limitation Act 1963.
Balance:- Ensure correctness of Balance/ Amount claimed in plaint. (it is to be noted that penal
interest is not allowed/ permissible)
Assets:- Prepare schedule of Movable & Immovable Assets for attachment with complete
details and address(es)
Garnishee Order:- Provide complete details of Book Debts of the borrowing company/firm &
request the DRT for its attachment & direct payment to the plaintiff.
Loaning Documents:- Attach copies of all the loaning documents and title deeds with the
plaint.
Inform Action under SARFAESI Act:- Complete details of action, if any, initiated under the
SARFAESI Act be mentioned in the plaint.
DRT Proceedings
Issuance of summons:- On receipt of the application under subsection (1) or (2), the
Tribunal shall issue summons to show cause within 30 days of the service of summons.
Defendant shall, within 30 days present a written statement. (Section 19)
(Amendment 2016) :- Section 19 has been amended by making time frame of 30-Days show
cause notice [Sec.19(4)] followed by filing of Written Statement within 30 days, which can be
extended by 15 days, After written statement, tribunal shall fix hearing for admission or denial of
documents. If admitted by defendants, DRT to direct the defendants to make payment of such
admitted amount in 30 days & issue RC to this effect. For any non compliance of any order, the
person/officer who is in default can be detained in civil prison, as per orders of Presiding officer for
a period up to 3 months.
Decree:- Decree is passed for the entire claim amount or partially.
Issuance of Recovery Certificate:- The Presiding Officer shall issue a certificate under his
signature on the basis of the order of the Tribunal to the Recovery Officer for recovery of the
amount of debt specified in the certificate. (RC, i.e. Recovery Certificate)
Miscellaneous
Stay of RC Proceedings:- As per amendment (2016) to Section 27, Presiding Officer can allow
the Certificate Debtors to deposit the certificate amount within a reasonable time, subject to
depositing down-payment of not less than 25% & the RC proceedings will be stayed till then.
Priority of Debts over other debts and Govt. dues/ Taxes:- Section 31 B vide Amendment
2016, has been introduced, recognizing priority of debt in favour of secured creditor over all other
debts & Govt. dues/taxes etc.
Presiding officers of any other tribunal (CBT etc) can also perform the functions as PO in DRT as
additional charge. [Sec 4 (2)(a)] Similarly Chairperson of any other Appellate tribunal can perform
the function as Chairperson of DRAT (Sec 8)
Modes of Recovery:- on receipt of the copy of the certificate under sub-section 7 of section 19,
proceeds to recover the amount by one or more of following modes-
• Attachment and sale of the moveable or immovable property of the defendants.
• Arrest/ detention in prison of the defendants,
• Appoint a receiver for the management of the property.
Insertion of new section 19A (Amendment 2016):- Filing of recovery applications,
documents and written Statements In electronic form (i.e. e-filing) has been permitted.
Appeal Against order of the Recovery Officer:- Appeal against Order of the Recovery Officer
can be made to the Tribunal within 30 days of date of order. {Section 30 A has been introduced
(Amendment 2016) enabling filing appeal against orders of Recovery Officer, subject to deposit of
50% of the debt.
Appeal to the Appellate Tribunal:- (Section 20(3) Amendment 2016) Appeal should be made
within 30 days from the date on which a copy of order made by the Tribunal is received by him.
{Earlier the period was 45 days}
Deposit of amount of debt due, on filing appeal:- (section 21) DRAT shall not entertain
appeal against the order of the DRT unless such person has deposited with the DRAT 50% of the
amount of debt due from him as determined by the Tribunal which cannot be less than 25%.
(Amendment 2016)
Appeal Against order of the Registrar:- Appeal against order of Registrar of the DRT can be
made at DRAT within 15 days of date of order.
Right to appeal to DRT (against action under SARFAESI Act) :- Borrower has right to appeal
in the DRT within 45 days from the date of possession of secured Assets as such A.O. should
ensure that there is a minimum gap of 45 days between possession and sale. Applicant may be
granted refund of the fees paid to DRT.
Application Fee-DRT
SN Nature of Application Amount of fee payable
Application for recovery of debts due u/s 19(1), 19(2) or counter claim u/s 19(8) of the Act*
Where amount of debt due is Rs. Rs. 12000
10 Lakh
Where amount of debt due is > 10 Rs. 12000 + Rs. 1000 for every 1 lakh Rupees of
Lakh Debt due or part thereof in excess of Rs. 10 lakh
subject to maximum Rs. 1,50,000
Application for review including review application in respect of the counter claim
1 Against an interim order Rs. 125
2 Against the final order 50% of fee payable at rates applicable on (*)
subject to Max. Rs. 15000/-
Other matters
1 Application for interlocutory Rs. 250
orders
2 Appeal against orders of the Recovery For amount < 10 lakhs - Rs. 12000
Officer For 10 lakh and above and < 30 lakh - Rs. 20000
Rs. 30 Lakh and more- Rs. 30000
Lok Adalats
Enactment:- Government of India enacted the Legal Service Authorities Act 1987 on the
recommendations of the committee for implementing Legal Aid Schemes under the chairmanship
of Justice P.N. Bhagwati.
Article 39A of the constitution:- As per this article the State shall secure that the operation of
the legal system promotes justice on the basis of equal opportunity, free legal aid by suitable
legislation or in any other way so that the justice is not denied to any citizen due to poverty or any
other disability. The theme of this article is the basis of constitution of Lok Adalats.
Supervision:- The National Committee and the State Committees supervise the effective Legal Aid
Schemes.
Lok adalats:- Lok Adalats dispose of the disputes in a summary way & through the process of
arbitration & settlement. Functioning of Lok Adalats is entirely voluntary & conciliatory. Awards
passed by the Lok Adalats are enforceable like the decrees of civil court & are binding on the parties
to the dispute. No appeal can be made against the awards passed by Lok Adalat.
Award by Lok Adalat:- The award given by the Lok Adalat is a deemed decree of the court,
which can be executed in case of default by the borrower(s)/Judgment debtor(s) through court of
competent jurisdiction.
Eligibility
General Criteria
A member of SC/ST or
A victim of trafficking in human beings or beggar or
A woman or a child or
A person with disability or
A victim of mass disaster, ethnic violence, caste atrocity, flood, drought & earthquake or
industrial disaster or
An Industrial workman or
In custody, including that of protective home, juvenile home, psychiatric hospital, psychiatric
nursing home or
A Person having annual income less than specified income as prescribed by the State
Governments (for other than Supreme Court cases), this is Rs. 25000 per annum in most of the
states. In case of Supreme Court cases it is Rs. 50000 per annum (subject to change from time
to time)
Eligibility for Bank’s/ Financial Institute’s Loan Cases
All NPA accounts within limitation period (Including SF/ Non-SF cases)
Recovery through Lok Adalat

Obtain Decree:- Lok Adalat shall issue a Decree after consenting both the parties, for the
settlement amount.
Repayment:- The amount of settlement, should preferably be paid in lump sum. In cases where
the borrowers are unable to pay the entire amount in lump sum, 10-20% of the settlement amount
or negotiated amount must be deposited at the time of settlement and balance in 1 to 3 years
(beyond 3 years in exceptional cases on merits).
Default Clause:- There should be a default clause in the negotiated agreement that “If borrower
does not pay due amount regularly, within the repayment period, entire debt will fall due for
repayment and Bank may initiate legal proceedings.”
Powers of representing Officer:- In respect of cases to be settled before Lok Adalat /DRT Lok
Adalat, the GM (Rec. & Law)/ Executive Director/ Managing Director & CEO may delegate powers, if
deemed fit, to COCB / Cluster Head/ Cluster Monitoring Head for taking on the spot decision before
the Lok Adalat. Thereafter, such cases shall be placed before the competent Authority for
ratification of action. (Reference HO/Circular /REC & LAW/ 06/ 2016-17/264 dated 02.07.2016)
Asset Reconstruction Company:-

A company incorporated under Companies Act 1956
Also registered under SARFAESI Act with RBI
For commencement of business the New Worth <=15% of asset acquired or Rs. 100 lakh
(whichever lower)
Minimum Capital Adequacy Ratio 15%
Acquires NPAs of the FI/Banks at a discount rate
Realize these NPAs through Securitization, Reconstruction or Sale of the assets (5-8 years)
Sale of Assets:-
A financial asset may be sold to the SC/RC (securitization company, reconstruction company) by
any Bank/ FI where the asset is
(i) NPA
(ii) A standard asset where
1) The asset is under consortium/ multiple arrangements
2) At least 75% (by value) of the asset is classified as non-performing asset in the books of
other Banks/ Fis &
3) At least 75% (by value) of the Bank/ Fis who are under the consortium/ multiple banking
arrangements agree to the sale of the asset to SC/RC and
(iii) An asset reported as SMA-2 by the bank/ FI to Central Repository for Information on Large
Credit (CRILC)
Wilful Defaulter
Definition: - The unit has defaulted in meeting its payment/ repayment obligations to the lender
Even when it has the capacity to honour the said obligation.
And has diverted the funds for other purposes
And has siphoned off the funds for other purposes
Disposed off or removed fixed assets or immovable property without the knowledge of the
Bank/ lender
Misrepresentation/ falsification of records
Fraudulent transactions by the borrower
Banks/ FIs have to furnish data of wilful default of Rs. 25 lakh and above to the RBI on quarterly
basis
{HO/RRL/993-05.01.2017:- Photographs of wilful defaulting borrowers, including their
Prop/Partner/Directors/Guarantor (excluding non-whole time directors); declared after 30.09.2015,
where total dues are > 1.00 crore only to be published by respective CMO(Cluster/Classic)}
Wilful defaulter shall be debarred from institutional finance from the Bank for floating new ventures
for a period of 5 years from the date of name of wilful defaulter is published by the RBI (Loan
Policy31.05.17 page number 33)
General Settlement Policy of the Bank

Compromise and negotiated settlements in NPA accounts
Various factors contribute degradation of an account to NPAs
Settlement is one of the tools to recover the Bank’s dues and reduce NPAs
Every Bank has its Recovery Policy, like other policies
Through settlement, bank forgoes part of its dues and borrower come forward to adjust the
account.
There are certain guiding principal which are kept in mind while formulating the settlement
policy.
Guiding Principals
Generally Sale price should not be less than the NPV of the RV of the securities.
GoI (MoF) on 03.04.2012 advised all Nationalized Banks to constitute Credit Committees,
accordingly Bank constituted credit committees at HO and RO levels.
Bank has a Board Approved Settlement Policy
Decision of settlement is based on the Net Present Value of Realizable Value of the Security, &
Total Recoverable dues as per Module Interest approach by the respective credit committees
and other factors.
Net Present Value
In Finance, the net present value (NPV) or net present worth (NPW) is defined as the sum of
the Present Value (PVs) of incoming and outgoing cash flows over a Period of time.
Latest amendments: NPVRV

When the settlement is considered within one year from date of last failed auction then NPVRV
for property/ies shall be 85% of the last reserve price of the charged securities (failed auction).
However, valuation should not be more than one year old.
Further, if the settlement is considered after one year of date of failed auction, fresh valuation
be obtained and NPVRV is to be calculated in normal way i.e by discounting realizable value
based on the expected realization period.
Line of compromise
Endeavour to recover maximum possible amount
Liquid securities should be appropriated before approval of the settlement.
No need to transfer the account to PB
No future interest up to 6 months, If account is settled and adjusted from the sale proceeds of
the collateral security –else applicable rate +2% simple rate to be charged on overdue period.
Where settlement is below principal amount, branches shall debit the W.Off amount from DEBT
ETTLEMENT REVERSAL EXPENSES” (XXXX0087260051) and reversing the corresponding entry
in “Debt settlement reversal a/c” through claim from Head Office as detailed in Job Card
circulated by CBS
Fund and Non Fund based facility
In the cases where non-fund based facilities i.e. LC/BG are outstanding; the FB facilities may be
settled as above by the respective sanctioning authority, subject to NFB is/are fully secured.
If the security coverage of NFB facility (ies) is less than 100%, settlement of FB facility shall be
by next higher authority.
Calculation of Recoverable dues under Module Interest Approach
(A) Suit Filed or Non-Suit (B) Decreed NPA (C) Agriculture Loans,
Filed cases-
accounts, including Agr excluding Decreed
Decreed cases cases
Principal O/s as on date of NPA Suit Amount PLUS Principal O/s as on date of NPA PLUS
PLUS
(i) Interest @ 1Y-MCLR p.a. simple (i) Interest as per terms of decree (i) Interest @7% p.a. simple or
or (awarded by court) or
(ii) Contracted rate of interest
(ii) Contracted rate of interest (ii) @ 1Y-MCLR p.a. simple or (iii) 1Y-MCLR p.a. simple
whichever is lower on Principal O/s
after giving due effects of (iii) Contracted rate of interest (Whichever lower) on
recoveries, if any, after the date of (iv) In case of Agri cases 7% p.a.
NPA till the last completed quarter
Principal O/s PLUS
PLUS
Whichever is lowest on Suit Amount
after giving due effects of
recoveries, if any, after the date of
filing suit up to the last completed
quarter
PLUS
Interest reversed at the time of NPA
Interest reversed at the time of NPA Cost as per terms of decree and PLUS
PLUS other misc. charges incurred after
the date of decree LESS
Charges (Legal Charges, charges paid to
Charges (Legal Charges, charges enforcement agents etc.) LESS
paid to enforcement agents etc.)
LESS
Recoveries effected till date from date of
Recoveries effected till date from Recoveries effected till date from NPA
date of NPA date of Suit
In case of settlement in wilful defaulter/ Fraud/ malicious cases liability as per module interest be
calculated @ 1Y-MCLR Rate plus 1% instead of 1Y-MCLR.
Sacrifice/ Relief =Recoverable dues as per module approach less amount offered.
No proposal should be accepted without Minimum 10% upfront amount (For offer amount up to 5
Crore) & Minimum 5% upfront (for offer amount >5crore)
Valuation of Properties:-Guidelines
For Settlement cases SARFAESI action
provisioning initiated
purpose of
Assets
Once in 2 ½ Property/ security shall be valued at the time of settlement For fixation of
years from one Govt. approved valuer on Bank's Panel to arrive reserve price, the
at realistic value for consideration of settlement proposal valuation report
and to arrive at NPVRV. should not be older
However, in all cases where the Realizable value of the than one year from
Property Is Rs 5.00 crores and above as per first valuation the date of fixing of
report, second valuation shall be obtained from another Auction
valuer appointed by COCB / Cluster Monitoring Head, Such
valuation shall be accompanied by independent
assessment by official from COCB/ Cluster Monitoring
Head.
If settlement is within one year of the last failed Auction
under SARFAESI Act. The NPVRV would be 85% of the
NPVRV at the time of failed Auction. However valuation
should not be older than 1 year
If settlement is after 1 year of the last failed Auction, fresh
valuation should be done and fresh NPVRV be calculated
as per system in vogue
Condonation of Delay in repayment & charges /Modification/ Amendment in

T&C of Repayment**
The condonation of delay in repayment of settlement amount and to change/ modify/ amend the
terms and conditions of repayment can be made by the same Competent Authority (which had
originally approved the settlement) provided that total relief including relief in the interest for the
overdue period falls within their power.
For the earlier cases settled by branches/ Regional Offices competent authority shall be COCB/
Cluster Monitoring Head- Rec provided that total relief including relief in the interest for the overdue
period falls within their power.
In case of settlement proposal approved by HLCC-GM, HLCC-ED, CAC, MCB, Board or earlier cases
sanctioned by individual sanctioning authorities, the CMH-Classic –credit committee/ CMH-
Rec/Branch Incharge LCB shall have the power to condone the delay of up to 6 months subject to
payment of interest @1year MCLR as applicable plus 2% penalty for the default period. {For
detailed guidelines refer to circular no HO/RRL/834 dated 05.01.2018}
Visit to mortgaged / charged securities /properties

All properties shall invariably be got visited by the Branch Manager (classic Branches) / Cluster
Head - Recovery for verification and giving his own assessment with regard to the total value
obtained from the approved valuer. His assessment will be based on local market enquiry and input
provided by real estate agents.
Properties having market value of Rs 5.00 crores and above at the time of sanction shall be visited
by COCB / Cluster Monitoring Head, in case the properties are located at the same city or nearby
areas.
Properties which are located far away from Cluster/ RO, the same be got visited by the local Cluster
Head or the official from Cluster Monitoring Office to give their independent assessment over the
market value given by the approved valuer. Property/ security shall be valued at the time of
settlement from one Govt. approved valuer on Bank's Panel to arrive at realistic value for
consideration of settlement proposal and to arrive at NPVRV.
However, in all cases where the realizable value of the property is Rs 5.00 crores and above as per
first valuation report, second valuation shall be obtained from another valuer appointed by COCB /
Cluster
Deviation In Special Circumstances:- The COCB monitoring classic branches and Cluster Head will
recommend the cases with deviation to Head Office with cogent reasons for consideration and
approval of case on merits. In case of Agriculture advances having outstanding up-to Rs 15.00 lakh,
COCB / Cluster Monitoring Head- Rec can settle the cases with deviation with proper justification on
merit basis provided the total relief falls within its powers.
General Settlement: Other terms..

Borrower to convey acceptance of settlement within 7 days of conveying the same.
Upfront amount to be kept in No-lien account till approval of the settlement.
In case of repayment of settlement amount is in installments obtain PDC.
Deposit the amount of recovery/ in no lien account with value date entry.
Upfront amount will be appropriated only after receipt of compromise decree in case of SF
accounts and in case of Decreed accounts after recording of Terms of compromise in competent
court.
Cases settled under Lok-Adalat / DRT-delegation of power by HO to RO-other officials to take
on the spot decision.
Purchase of property by Bank to settle the account (res. or commercial property not
industrial/Agri/Disputed/Tenanted
Tamsuk Deed (Party many not go back from their commitment), Consent Decree
Staff accountability to be examined.
All settlements/ compromise approved by HO are circulated as “Caution List” on H-yearly basis.
Sanction of fresh facilities –(a) Ex-Clients of our Bank, (b) Clients of other Banks on merit and
fulfilling certain conditions by MCB
Settlement in case of wilful default, malfeasance and fraud (Single borrower Exposure up to 250
Cr, Relief Max 4 crore –by CAC, above it by MCB).
In case of wilful default <25 lakh, settlement by respective settlement authority-being a
commercial decision.
Repayment Period and Upfront Amount

Minimum upfront amount of 10% of minimum indicative settlement amount should be recovered
along with the application and balance amount be recovered within a period of six months without
any further incidence of interest.
In case the party fails to deposit within six months interest for the delayed period on overdue
settlement amount be recovered at 1 Year MCLR provided the balance amount will be recovered
within one year from the date of settlement.
In case the settlement amount is not recovered within one year from the date of sanction,
settlement shall automatically stands withdrawn and recovery action will be started as per recovery
policy of the bank.
Powers designated to field functionaries for settlement
The power of settlement proposal is based on the amount of sacrifice / relief, vested with various
functionaries as per Circular No. HO/R&L/06/16-17/264 dated 02.07.2016 and amended vide
circular number RR&L/15/16-17/14.10.16 & HO/RRL/2017-18/14/638 date 09.11.2017
Various settlement Schemes (Comparative in Tabular Form) TABLE-2
(Please refer to detailed circular of R&L Department and RD&PS for AGR scheme)
Parameter General Settlement OTS 10 lakh OTS 1 lakh OTS Agri NPA
Eligible All NPA accounts NPA as on 31.03.2018 NPA as on All individual Direct
NPAs Sub-Standard or prior (Including 31.03.2018 Agriculture NPAs
Doubtful SF/Decreed, Non-SF) or prior
Loss including Suit Filed and (Including
Decreed cases SF/Decreed,
Non-SF)
Minimum Varies from 20% to Whatever At principal O/s or
Settlement Case (i) If NPVRV 90% of Principal maximum that At 85% of principal o/s
amount >=Recoverable Dues :- Min. amount on the basis of can be recovered Principal o/s less
Sett amount is Equal to comparison between Provision made subject
Recoverable due NPVRV and Principal O/s to min 85% of Principal
amount
Case (ii) If NPVRV<
Recoverable Dues, Min. Sett
amount is Equal to NPVRV
Case (iii) If NPVRV=NIL,
Min. sett. Amount is Whatever
max. can be recovered
Security May or may not May or may not No tangible May or may not
(Primary or (Value of Agriculture primary/
Collateral) land, if any, for cases up collateral security
to 3 lakh be treated as (Value of
NIL) Agriculture land,
if any, be treated
as NIL)
Ineligible Wilful default, malfeasance Fraud and Staff related Fraud and Staff As per General Settlement
cases and fraud cases by Head cases (By delegated related cases Policy/ Guidelines
Office higher authorities only)
Wilful default cases up to
25 lakh by respective S.
Authorities
Validity of No such date 30-09-2018 30-09-2018 No such date
the Scheme
Discretionar (Total relief inclusive of Principal + Recorded Interest + Miscellaneous Charges)
y Powers Please refer to table A and B above.
Deviation:- The COCB monitoring classic branches and Cluster Head will recommend the cases with deviation
to Head Office
In case of Agriculture advances having outstanding up to Rs 15.00 lakh, COCB / Cluster Monitoring Head-
Recovery can settle the cases with deviation with proper justification on merits basis provided the total relief
falls within its powers.
Cases In respect of cases to be settled before Lok Adalat /DRT Lok Adalat, the GM (Rec. & Law)/
before Lok Executive Director/ Managing Director & CEO may delegate powers, if deemed fit, to COCB
Adalat /
DRT / Cluster Head/ Cluster Monitoring Head for taking on the spot decision before the Lok
Civil court Adalat only in respect of fraud, staff, willful defaulter and cases falling under the
in special power of HO. Thereafter, such cases shall be placed before the competent Authority for
circumstanc ratification of action.
es
Parameter General Settlement OTS 10 lakh OTS 1 lakh OTS Agri NPA
Format Annexure as given in the Annx IV- Branch One pager Format used for General
Recovery Policy power cases format as Settlement may be used for
Anx V—Other than prescribed with settlement under the scheme
Branch power cases the scheme
Reference:- HO/REC & Law/18/2012-13/450 RRL/11 dt 03.04.17 RRL/12 dt
dated 18.09.2012 as amended RRL/638 dt 09.11.17 03.04.17 Circular No. HO:RD &PS:32
from time to time RRL/834 dt 05.01.18 RRL/834 dt :2014-15:337 dated
RRL/01/35 dt 4.4.18 05.01.18
RRL/01/34
dt 4.4.18
Special OTS -10 lakh Minimum Settlement amount:- The settlement amount be
calculated in a nondiscretionary and non-discriminatory manner as given here-
under(TABLE-1):-
S Value of Security v/s Principal NPA with outstanding (Principal) In the table below P has been used to indicate Principal
Balance
≤1Lac >1 lac to 3 >3 lakh to 5 lakh >5lakh to 10 lakh

lakh
1 NPVRV ≥ Principal 40 % of P. o/s 60 % of P. o/s 80 % of P. o/s 90 % of P. o/s
Amount
2 NPVRV (<100% 30 % of P. o/s 40 % of P. o/s 40 % of P. o/s 40 % of P. o/s
and ≥ 50% ) of
Principal Amount
3 NPVRV < 50% of 20 % of P. o/s 25 % of P. o/s 30 % of P. o/s 30 % of P. o/s
Principal Amount
Note-In case of advances under Agriculture of Principal O/s up-to Rs. 3 lacs, the RV of Primary/Coll. security charged in the account
will exclude the Agricultural Land offered as security. However security available other than agriculture land shall be taken into
consideration for arriving at the NPVRV in OTS 1 lakh and OTS 10 lakh schemes (Cir-RRL834-05.01.18). However security
available other than agriculture land shall be taken into consideration for arriving at the NPVRV
OBC OTS Scheme of NPA & TWO Accounts

Ref:HO/RRL/17/18/13/637 dated 09.11.2017; RRL/790 dt 28.12.17; RRL/834 dt 05.01.18; RRL/03/36 dt 04.04.18
Parameter Guidelines
Applicability
NPA/TWO Accounts as on 31.03.2018 and prior, having principal O/s > 10 Lakhs to 1 Crore
Note: {SF/DRT cases, SARFAESI cases, Earlier Settled but failed cases eligible, Cases filed with State Recovery
Law eligible}* subject to certain conditions
Not eligible: Fraud cases reported to RBI; Staff/Ex-staff cases; Settled cases under repayment; Central/State
Govt. Guaranteed accounts; A/cs under consortium; Cases of quick mortality in Sub-standard category; Loans
against liquid securities; Cases referred to NCLT
Validity of the
Scheme 30.09.2018
Sanctioning Authority Classic Br-Sc II (Br Classic Br – Classic Br – CMO-Classic

and Discretionary office Sett Scale III Scale IV Settlement
Powers Committee) (Br office Sett (Br office Sett committee
committee) committee)
Cases with Principal Cases with Principal Cases with Principal Cases with Principal
O/s+TWO upto 25 O/s+TWO upto 35 O/s+TWO upto 50 O/s+TWO > 50 L to
Lakhs Lakhs Lakhs 100 L & cases
beyond powers of
classic branches
Cluster Office Settlement committee RRL
Principal/TWO ≤ 50 lakhs
CMO RRL Settlement Committee Principal/TWO > 50 L to 100 L
Minimum Indicative Settlement Amount
Sr No/ Minimum At which account should be settled
Category
If RV of property/ securities
RV ≥ RV between <100% RV between <75% to RV between <50%

Compare Principal to 75% of Principal 50% of Principal of Principal
Minimum Principal 85% of Principal 75% of Principal 50% of Principal

Settlement Amount Amount Amount Amount Amount
CGTMSE covered The sett amount will be amount of CGTMSE claim approved amount plus 10% of
account RI as per module approach upto last completed quarter plus 50 % of expenses
and charges.
ECGC claim Such amount be added to principal o/s and then settlement amount is calculated.
amount received Refund the amount to ECGC after recovery under settlement as per norms
Deposit of sett 10% upfront; 40% (including 10% upfront) within 30 days, balance within 3 months
amount (without interest). Beyond 3 months interest aplicable –ref circular for details.
Concession If full amount is paid within 15 days, additional 5% discount on settled amount.
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है िजनको लांघने पर पीसीए मानदं ड भावी हो जाते ह2। इससे ब2को को भा.)र.ब2. के 6दशा:नद; श$ के अंतगत अपनी
.वKतीय ि@थ:त को पन
ु को ब2को यह है । -मलता अवसर एक -लए के लाने पर पटर :जोLखमपण
ू ग:त.व धय$ से
बचने और पज
ूं ी क( रCा पर Nयान क%6Oत करने के -लए ोKसा6हत करता है ता क उनक( बैल%स शीट मजबत
ू हो सक%।
कसी ब2क को पीसीए के अंतगत रखना है या नह ं यह अमक

ु ब2क के वा.षक लेखा) पर PCत-audited) .वKतीय
प)रणाम$ के भा तथा.प है । जाता कया तय पर आधार के मQ
ू यांकन पयवेCी गए कए Rवारा .ब2.)र.:नयामक चाहे तो
वष के दौरान बीच म% भी ि@थ:त क( गंभीरता को दे खते हुए कसी ब2क को पीसीए के तहत रख सकता है या पीसीए क(
दहल ज के @तर का अंतरपव ू क .व@तार है । सकता कर (आ6द 1 से 3 या 2 से 1 जैसे) @थानाTतरण-, चार संकेतक$ के
आधार पर :नवतमान संशो धत पीसीए ावधान इस कार से ह2 -:(2 :ता-लका)
ता-लका2:
Cे3 संकेतक जोLखम दहल ज1- जोLखम दहल ज 2- जोLखम दहल ज3-
.1Tयूनतम पंज
ू ी Tयूनतम :नधा)रत संकेतक से %2.5तक क( संकेतक से >-%2.5 -----------
पया तता का उलंघन सीआरएआर )CRAR) + कमी %4.0तक क( कमी
या सीआरएआर) ) सीसीबीCCB)
1-सीईट अनुपात ( Tयूनतम :नधा)रत संकेतक से %1.625 संकेतक से >1.625-% ## संकेतक से
सीईट )1-CET + (1- तक क( कमी 3.125 कमी क( तक % 3.125 अ धक से %
) सीसीबीCCB) कमी क(
.2प)रसंपिKतय$ क( :नवल एनपीए ≥6.0% परं तु <9.0% ≥9.0% ≥12.0%

गुणवKता )Net NPA) परं तु <12.0%
.3लाभ दता प)रसंपिKतय$ पर लगातार वष 2 लगातार तक वष 3 लगातार तक वष 4

:तफल )ROA) तक नकाराKमक प)र पर. नकाराKमकप)र . :त पर. नकाराKमकप)र पर.
) . :तROA) )ROA) ) . :तROA)
.4उKतोलन (ल वरे ज) टायर 1--लवरे ज ≤4.0% ले कन < 3.5% ---
अनुपात ≥ 3.5% (ल वरे ज, टायर 1-पूंजी
(ल वरे ज, टायर 1-पंज
ू ी के के %28.6से Vयादा है )
%25से Vयादा है )
पीसीए के ावधान$ के अंतगत .व-भTन कार क( कारवाईयां :
जैसे ह कोई ब2क ‘जोLखम दहल ज’ के Cे3 म% वेश करता है तो भा.ब2.)र., पीसीए के
ावधान लागू करते हुए
:नWनानस
ु ार ) कारवाई क( कार दो (3-ता-लका)अ:नवाय और @वेिXछक( आरं भ करता है । अ:नवाय कारवाई,
आव0यक >प से भावी क( जाती है जब क @वेिXछक ावधान$ को .व-भTन पहलओ
ु ं पर पयवेCी संवाद करते हुए
लागू कया जाता है ।
ता-लका3:
.व:नद; श अ:नवाय कारवाई @वेिXछक कारवाई
जोLखम लाभांश .वतरणरोक पर करने े.षत को लाभ /, :नWन से संबिTधत .वशेष पयवेCी संवाद:
दहल ज1- .वदे शी ब2क के संबंध म% वतक Yयि9त मूल/मा-लक/
आना लेकर का पूंजी Rवारा,
जोLखम जोLखम दहल ज 1-म% वLणत सभी अ:नवाय कारवाई के रणनी:त माक;ट जोLखम
दहल ज-2 अ:त)र9त, शासन एच.आर.
घरे लू या .वदे शी शाखा .व@तार पर :तबंध, पूंजी लाभ दता
कवरे ज Cे3 )Regime) के अनुसार उXच ावधान, ऋण संचालन
जोLखम जोLखम दहल ज 2-म% वLणत सभी अ:नवाय कारवाई के जोLखम कोई दस
ू रा
दहल ज3- अ:त)र9त,
बंधन के मुआवजे और :नदे शक$ क( फ(स पर :तबंध,
जैसा लागू हो।
## सी.ई.ट 1-.क( दहल ज 3-के @तर को पार करने पर ब2क को एक(करण )amalgamation), पन
ु :नमाण
)reconstruction) या समापन )winding up) के -लए उपय9
ु त Kयासी माना जाएगा। तथा.प, जमाकताओं के :त
अपने उKतरदा:यKव का :नवहन न कर पाने क( ि@थ:त म% , भा.)र.ब2. Rवारा संभव समाधान [या \बना पीसीए
मे6]9स को संद-भत कए आरं भ कए जा सकते ह2।
भारतीय ब2को के -लए बासेल-III मानक :नWनानस

ु ार ह2 -:(4 ता-लका)
ता-लका 4:
[मांक मापदं ड माच 18- माच 19-
अ Tयूनतम सीईट 1-अनुपात %5.50 5.50%
ब पूंजी सरं Cण बफर म% >प के इि9व6ट सामाTय -(सीसीबी) %1.875 2.50%
स कुल (ब+अ) %7.375 8.00%

द अ:त)र9त ट यर-I पूंजी 1.50% 1.50%
य Tयूनतम ट यर-I अनुपात (द+अ) 7.00% 7.00%
र ट यर-II पूंजी 2.00% 2.00%

ल कुल Tयूनतम पूंजी अनुपात (र+य) 9.00% 9.00%
व कुल Tयूनतम पूंजी अनुपात (ल+ब) %10.875 11.50%
HO/MSME/890 circular Dated 29.01.2018:- (1) Incremental credit exposure (Fresh,

enhancement, Adhoc, Over limit) above 5 crore only for borrowers having ‘External Credit
Rating’ of A (+/-) and above with effect from 29.01.2018. This is in compliance of RBI
guidelines pursuant to PCA norms imposed on the bank. (2) No incremental exposure to
externally unrated borrowers where exposure is >5crore. (3) However renewal at existing
level or reduction can be granted by the sanctioning authority, irrespective of level of
external rating. Following categories are exempted:-
(i) Exposure to State/ Central Government
(ii) Where Principal and Interest is fully guaranteed by the State/Central Government.
(iii) RBI (including Food credit)
(iv) Deposit placed with RIDF-NABARD
(v) Exposures secured by eligible financial collateral/CRMs vide bank’s own deposit, Govt.
under standardized approach for credit risk capital computation.
Negotiation of inland bills under L/C subject to compliance of minimum regulatory CRAR of
LC issuing bank
RATIO ANALYSIS
It is the Process of Computing, determining and presenting the relationship of items and group of
items on the financial statements. Each ratio indicates a particular aspect of the financial and
business performance of the firm.
1. Current Ratio:
The ratio of current assets to current liabilities is called current ratio. This can be obtained by
dividing current assets figure by current liabilities figure i.e. C.A./C.L. This should always be more
than 1. This is possible only when the current assets are more than current liabilities. Ideally the
current ratio should be 1.33:1 or more. This indicates the ability to meet maturing current liabilities
from the proceeds realized out of current assets. As per the credit policy borrowers with working
capital limits up to Rs.5.00 crore assessed as per turnover basis, acceptable current ratio is up to
1.17:1 with compliance of all other conditions. ACID TEST or QUICK RATIO is the ratio between
Quick Current Assets and Current Liabilities. Quick Current Assets is nothing but Total Current
Assets minus Stock. The should be at least equal to 1.
2. Leverage ratio:
Other important financial indicators are the leverage ratio and debt/equity ratio. Leverage ratio is
the ratio of net worth to total outside liabilities. Higher leverage ratio is the symptom of financial
weakness and also indicates over borrowing position. Depending on the type of activity accepted
level of leverage ratio is fixed. In case of trading firms it can be accepted at a little higher level.
Depending on the type of activity accepted level of leverage ratio is fixed.
3. Debt/equity ratio:
The ratio between the net worth and long-term loan is the debt/equity ratio. It is also expressed as
for example 1:3, which means that for 1 equity there are 3 debts. This is very important ratio,
which is looked into while financing a project especially for term finance. For each type of project,
bank and financial institutions fix the accepted level of this ratio. Generally it is fixed at 1:3 ratios
and only in exceptional cases and infrastructure projects where the project cost is very high and
income generation takes a long time, higher ratio is permitted. This means that for any project the
term loan component should not be more than three times the capital. Lower debt/equity ratio of
1:2 or 1:1 should be prescribed for non-industrial projects, trading ventures and for projects, which
are based on new concepts that are not tested. This is because the risk in such projects is very
high. Like DE Ratio and leverage ratio following ratios indicate the strength of business and stake of
promoter vis-à-vis to assets. For lenders, it gives indication of margin on the business for the
assessment of credit facilities: -
Owners’ funds
- The proprietor ratio = -------------------------
Total assets
- The ratio of net worth Net Worth

to fixed assets = ------------------------
Fixed Assets
4. DEBT SERVICE COVERAGE RATIO (DSCR) :

Ability of a concern to service its term liabilities can be gauged from this ratio. This ratio is applied
while appraising all term loan proposals and investment decisions. This ratio is studied when
measures for rehabilitation of sick industrial units are examined and also while fixing/
rescheduling the repayment schedule for term loans. Debt servicing means payment of interest
and installments on term loans. DSCR measures whether interest and installments can be paid out
of internal generation of funds. The ratio is worked out as under:
DSCR = PAT + DEPRECIATION + INTEREST ON TERM LOAN
INTEREST ON TERM LOAN + TERM LOAN INSTALLMENTS
A ratio of 2 would indicate the concern's internal generation of funds would be twice of its
commitments towards term loan obligations and interest thereon. This ratio should be more than
one in order to take care of any eventualities in the profits position of the concern and also to leave
certain surplus with the concern for its normal growth and withdrawal.
Average DSCR is nothing but the net debt service coverage ratio i.e. exclusive interest payable
which shall normally not go below 2. On gross basis average DSCR shall not be below 1.5:1. In case
of highly capital intensive/ infrastructure projects, DSCR of less than 1.5:1 (upto 1.2:1) may be
considered on case to case basis.
5. Debtors Turnover Ratio:

This refers to the borrower / client’s credit policy as a part of its overall financial management.
Outstanding debtors signify that a part of the financial resources of the concern are made available
to outsiders. The larger the amount outstanding there-under, the more the depletion of funds for
the concern.
Debtors Turnover Ratio = Outstanding Debtors x 365
(Number of days) Credit Sales
This shows the average period of credit extended by the concern. Lower figure would indicate that
the concern is extending less credit and consequently more resources are available for its
operations. Generally, the outstanding of 1 to 3 months is reasonable; various factors which
affect this ratio are to be borne in mind.
6. Creditors Turnover Ratio:
This is arrived at as under:
Creditors Turnover Ratio = Outstanding Creditors x 365
(Number of days) Credit Purchases
Large creditors may not be a healthy sign. When a concern is facing financial stringency, there is a
tendency to postpone payment to creditors. Such situations should be distinguished from other
usual situations. In such cases creditors outstanding will be much beyond contracted period. Also
liberal creditors may cost the concern either in the form of inflated prices for purchases or by way
of payment of interest. This can be injurious in the interest of the concern. Branches should note
that there can be fraudulent transactions on the part of the firm through debtors and creditors
undermining the overall interests of the firm. In the name of retaining the customers the firm may
offer longer credit to known/interested parties or agree to pay higher rate of interest or higher
prices to creditors under the guise of enjoying larger credit terms. These kind of dealings can be
observed only if market trends are analysed and purchases and sales portfolios of the concern are
critically examined. The desirable level will be anything between half to two months purchase.
However, depending upon the industry trend, the levels may vary.
7. Break Even Analysis:
Breakeven point (BEP) of a firm refers to that level of sales at which, it recovers all its costs. This is
the point where the unit neither makes profit nor loss. It is important while assessing the
performance or processing a credit proposal to ascertain the level at which the firm breaks even, so
as to know its shock absorbing capacity. Thus, break even analysis is an important tool in the hands
of a credit officer while analysing a credit proposal.
To calculate the BEP, as a first step, the total cost has to be bifurcated into fixed and variable items.
While fixed costs refer to those costs which are incurred regardless of the operation and/or level of
activity of the unit. The examples are rent, taxes, insurance, depreciation, maintenance of building,
machinery, etc. However, the fixed costs also undergo change over a period of time. The variable
costs on the other hand are expenses which vary directly in proportion to level of activity or sales or
production. The variable costs are also known as marginal costs and example in this respect is raw
materials, power & fuel, octroi, consumables etc. While going through the profit and loss account,
based on above classification, the expenses should be analysed and following formula be applied
to ascertain the BEP.
BEP in Quantity = Fixed Costs / (Unit Sale Price - Unit Variable Cost) OR
BEP in Value (Rs.) = Fixed Cost x Sales / (Sales - Variable Cost (VC))
Sales mean Net Sales.
Sales - VC = Contribution
If a unit breaks even at a very high level of activity, there is every possibility of the unit
incurring loss, if any of the variables like fixed cost, variable cost, sales change even
marginally. Therefore, the proposal should be scrutinised very carefully whenever BEP is
reached at a very higher level of activity instead of at a lower level.
8. Fixed Assets Coverage Ratio:

This shows the number of times the value of fixed assets (after providing depreciation)
covers term liabilities.
Fixed Assets Coverage Ratio = Net Fixed Assets/Long/Medium Term Debts
Fixed Asset Coverage Ratio (FACR) should be as per project report at all times subject to minimum
of 1.25:1. However, in case of consortium advances, joint decision taken by the consortium should
be followed.
9. Profitability Ratios:
These ratios indicate the overall profit earning capacity of the firm and very purpose of running the
business as prime motive of the business entity to run it profitably. Increasing trend of the profit
ratio indicates the efficient market skill, good control on expenditure etc. It is a ratio to know the
gross profit earned to total sales, but there is no benchmark norm for Minimum or Maximum
percentage Gross Profit earned. However, it can be determined through the relative
competitiveness of the industry in relation to other similar industries and to know the progress
through successive years.
Gross profit
- Gross profit ratio = ----------------------------------- X 100
Sales
Net profit
- Return on equity = ----------------------------------- X 100
Tangible net worth
Net profit before tax
- Net profit ratio = ----------------------------------- X 100
Net sales
In case of trading firms it can be accepted at a little higher level.
10. RETRUN ON CAPITAL EMPLOYED :

Net Profit before Interest & Tax /( Average Capital Employed) x 100
Average Capital Employed is the average of the equity share capital and long term funds provided
by the owners and the creditors of the firm at the beginning and end of the accounting period.
11. RETRUN ON EQUITY CAPITAL (ROE) :

Net Profit after Taxes / Tangible Net Worth
12. EARNING PER SHARE :

EPS indicates the quantum of net profit of the year that would be ranking for dividend for each
share of the company being held by the equity share holders.
Net profit after Taxes and Preference Dividend/ No. of Equity Shares
13. PRICE EARNING RATIO :

PE Ratio indicates the number of times the Earning Per Share is covered by its market price.
Market Price Per Equity Share/Earning Per Share
14. Tangible Net Worth: Total of Capital and Reserves & Surplus Less Intangible Assets
15. OPERATING PROFIT RATIO : (Operating Profit / Net Sales ) x 100 Higher the ratio higher
the operational efficiency
16. NET PROFIT RATIO : Net Profit / Net Sales x 100 (It measures overall profitability)
17. ASSET TRUNOVER RATIO : Net Sales/Tangible Assets
18. FIXED ASSET TURNOVER RATIO : Net Sales /Fixed Assets
19. CURRENT ASSET TURNOVER RATIO : Net Sales / Current Assets
Other Points to remember:

• Liabilities have Credit balance and Assets have Debit balance
• Current Liabilities are those which have either become due for payment or shall fall due for
payment within the next 12 months from the date of Balance Sheet
• Current Assets are those which are convertible into cash within the next 12 months. These are
also called Working Capital or Gross Working Capital
• Net Worth & Long Term Liabilities are also called Long Term Sources of Funds
• Current Liabilities are known as Short Term Sources of Funds
• Long Term Liabilities & Short Term Liabilities are also called Outside Liabilities
• Current Assets are Short Term Use of Funds
OTHER IMPORTANT RATIOS:
Credit to deposit ratio (CD ratio): This ratio indicates how much of the advances lent by banks
is done through deposits. It is the proportion of loan-assets created by banks from the deposits
received. The higher the ratio, the higher the loan-assets created from deposits. Deposits would be
in the form of current and saving account as well as term deposits. The outcome of this ratio
reflects the ability of the bank to make optimal use of the available resources.
Capital adequacy ratio (CAR): A bank's capital ratio is the ratio of qualifying capital to risk
adjusted (or weighted) assets. The RBI has set the minimum capital adequacy ratio at 9% for all
banks. A ratio below the minimum indicates that the bank is not adequately capitalized to expand
its operations. The ratio ensures that the bank do not expand their business without having
adequate capital.
CAR = Tier I capital + Tier II capital / Risk weighted assets
It must be noted that it would be difficult for an investor to calculate this ratio as banks do not
disclose the details required for calculating the denominator (risk weighted average) of this ratio in
detail. As such, banks provide their CAR from time to time.
Tier I Capital funds include paid-up equity capital, statutory and capital reserves, and perpetual
debt instruments eligible for inclusion in Tier I capital. Tier II capital is the secondary bank capital
which includes items such as undisclosed reserves, general loss reserves, subordinated term debt,
amongst others.
Non-performing asset (NPA) ratio: The net NPA to loans (advances) ratio is used as a measure
of the overall quality of the bank's loan book. An NPA are those assets for which interest is overdue
for more than 90 days (or 3 months).
Net NPAs are calculated by reducing cumulative balance of provisions outstanding at a period end
from gross NPAs. Higher ratio reflects rising bad quality of loans.
NPA ratio = Net non-performing assets / Loans given
NET INTEREST MARGIN (NIM) IS A MEASURE OF THE DIFFERENCE BETWEEN THE INTEREST INCOME GENERATED
BY BANKS OR OTHER FINANCIAL INSTITUTIONS AND THE AMOUNT OF INTEREST PAID OUT TO THEIR LENDERS (FOR
EXAMPLE, DEPOSITS), RELATIVE TO THE AMOUNT OF THEIR (INTEREST-EARNING) ASSETS. NET
INTEREST MARGIN IS ALSO KNOWN AS "NET YIELD ON INTEREST-EARNING ASSETS."
THE FORMULA FOR NET INTEREST MARGIN IS:
NET INTEREST MARGIN = (INTEREST RECEIVED - INTEREST PAID) / AVERAGE INVESTED ASSETS
Provision coverage ratio: The key relationship in analysing asset quality of the bank is between
the cumulative provision balances of the bank as on a particular date to gross NPAs. It is a measure
that indicates the extent to which the bank has provided against the troubled part of its loan
portfolio. A high ratio suggests that additional provisions to be made by the bank in the coming
years would be relatively low (if gross non-performing assets do not rise at a faster clip).
Provision coverage ratio = Cumulative provisions / Gross NPAs
Limitation of Financial Statements:
Gives position as on a particular day of the year.
Does not give past knowledge unless comparison with previous years’ balance sheet
is made. No future prediction possible, though past performance may give some
indications.
Does not give knowledge or indications about market situation and competition
which are ever changing.
Does not show light on management abilities as ability requirement is different from
activity to activity.
To show good healthy picture from the balance sheet, some adjustments are
possible. Property valuation is subjective.
Market valuation and realizable values differ and contain much gap. Human abilities
remain unknown.
Changes in non-financial issues not reflected, such as expert or technical person
leaving the job, but they may change future balance sheet adversely.
Sale-purchase figures are shown in value but not in quantity, so it may be a wrong
picture. For example, sale is not increased but due to rise in price sale figure has
gone up.
PRIORITY SECTOR ADVANCES
Agriculture: Farm Credit
INDIVIDUAL FARMERS CORPORATE FARMERS (Max. 2 crore)
(i) Crop loans to farmers Loans to corporate farmers, farmers' producer
organizations/companies of individual farmers,
(ii) Medium and long-term loans to farmers for partnership firms and co-operatives of farmers
Agri. & Allied activities* directly engaged in Agriculture Activities, viz., dairy,
(iii) Loans to farmers for pre and post-harvest fishery, animal husbandry, poultry, bee-keeping
activities** and sericulture up to an aggregate limit of Rs.2
crore per borrower. This will include:
(iv) Loans to farmers up to Rs.50 lakh against (i) Crop loans to farmers
pledge/hypothecation of agricultural produce (ii) Medium and long-term loans to farmers for
(including warehouse receipts) for a period not agriculture and allied activities
exceeding 12 months.
(v) Loans to distressed farmers indebted to non- (iii) Loans to farmers for pre and post-harvest
institutional lenders. activities
(vi) Loans to farmers under the Kisan Credit Card
Scheme.
(vii) Loans to small and marginal farmers for (iv) Loans up to Rs.50 lakh against
purchase of land for agricultural purposes. pledge/hypothecation of agricultural produce
(including warehouse receipts) for a period not
exceeding 12 months.
Agriculture Infrastructure
i) Loans for construction of storage facilities (warehouses, market yards, Godowns and silos) including cold
storage units/ cold storage chains designed to store agriculture produce/products, irrespective of their
location.
ii) Soil conservation and watershed development.
iii) Plant tissue culture and Agri-Biotechnology, seed production, production of bio-pesticides, bio-fertilizer,
and Vermi-composting.
For the above loans, an aggregate sanctioned limit of Rs.100 crore per borrower from the banking-system,
will apply.
Ancillary Activities
(i) Loans up to Rs. 5 crore to co-operative societies of farmers for disposing of the produce of members.
(ii) Loans for setting up of Agriclinic and Agribusiness Centers.
(iii) Loans for Food and Agro-processing units up to an aggregate sanctioned limit of Rs. 100 crore per
borrower from the banking system.
(iv) Loans to Custom Service Units managed by individuals, institutions or organizations who maintain a fleet
of tractors, bulldozers, well-boring equipment, threshers, combines, etc., and undertake farm work for
farmers on contract basis.
(v) Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-
sized Adivasi Multi-Purpose Societies (LAMPS) for on-lending to agriculture.
(vi) Loans sanctioned by banks to MFIs for on-lending to agriculture
Micro Small & Medium Enterprises (MSME)
Manufacturing Enterprises:-Enterprises engaged in Manufacture or Production, or Processing or Preservation

of goods are defined under Micro, Small or Medium Enterprises further on the basis of investment in P&M
(original cost excluding land & Building and the items specified by the MSMED up to 10 crore}
Service Enterprises:-Enterprises engaged in Providing or Rendering of services & whose investment in

equipment (original cost excluding L&B ad furniture, fittings and other items not directly related to the service
rendered or as may be notified under MSMED Act, 2006 up to 5 crore}
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.
Investment linked definition of MSME:-
MANUFACTURING SERVICE
Original Investment in Plant & Machinery Original Investment in equipment
MICRO <= 25 lakh Bank loan to MICRO <= 10 lakh Bank loan to
25 lakh to MSME (Mfg.) MSME (Ser.)

SMALL SMALL > 10 L to 2 Cr.
5 Crore Shall form Shall form
Part of Part of
MEDIUM > 5 Crore to 10
Crore Priority Priority
MEDIU > 2 Cr. to 5 Cr.
Sector M Sector
(RBI-135 dt
01.03.18)
Additional Activities included as Mirco and Small Service Enterprises

Consultancy services including Management Services
Composite broker services in Risk and Insurance Management
3rd Party administration Services for medical insurance claims of policy holders
Seed grading services, Training cum incubator centre, Education Institutions, Training Institutes
Retail Trade
Practice of Law, i.e. legal services, Trading in medical instruments (Brand New)
Placement and Management consultancy Services and Advertising agency and Training Centers
{as per GoI notification dated 12.06.2009}
Circular Letter: HO/MSME/14/2016-17/1117 Date: 18.02.2017:-Calculation of

Investment in Plant & Machinery for Classifying MSME accounts under Priority
Sector. While calculating the investment in plant and machinery, the original price thereof,
irrespective of whether the plant and machinery are new or second hand shall be considered
and certain costs shall be excluded such as cost of equipment such as tools, jigs, dies, moulds
and spare parts for maintenance and the cost of consumable stores; Installation cost of plant
and machinery; cost incurred on Research and development equipment and pollution control
equipment etc for details please refer to the above mentioned circular.
Priority Sector Targets

Category Domestic SCB and FB with 20 FB with less than Remarks
or more Branches 20 Branches
TOTAL PS SCB -40 % (Mar-16 onward) 40% in a phased Of ANBC or CEO-BSI

FB-40% (Apr-13 toMar-18) manner whichever higher
(Apr-13 toMar-18)
AGRI 18 % (Both for SCB and FB with 20 Of ANBC or CEO-BSI

Not Applicable
or more branches) whichever higher
Of which Small & Marginal Farmers FB with 20 or more
branches Have to
7% by March 16 achieve these targets
8% by March 17 (for FB with in 5 years (2013-18)
20 or branches , w.e.f. FY
2018-19)
Micro ENTP Domestic Banks-7% by Mar-16 and

7.5% by Mar-17
FOR FB with 20 or more Branches Not Applicable

7.5% w.e.f. FY 2018-19
.
WS 10 % NA FB in phased manner
Overall Banks are, directed to ensure that their overall direct lending In this regard, the
direct to non-corporate farmers does not fall below the system- applicable system wide
lending to wide average of the last three years achievement, failing average figure for
computing achievement
non- which they will attract the usual penalties for shortfall. They
(Non-corporate Farmers)
corporate should also continue to maintain all efforts to reach the level
under priority sector
farmers of 13.5 percent direct lending to the beneficiaries who lending for the FY 2016-
earlier constituted the direct agriculture sector. 17 is 11.70 percent (RBI-
01.09.16)
Base Year The targets are of ANBC or Credit Equitant amount of OBE whichever higher as on
March 31st of the previous year
Other PS Targets-I
Category Norms Remarks
Education Loans up to 10 lakh Irrespective of sanctioned limit
Housing Loans Metro –Loans up to 28 lakh (Cost 35 lakh or less)
Others-Loans up to 20 lakh (Cost 25 lakh or less)
HL (Repair & Metro-loans up to 5 lakh
Renovation)
Other-Loans up to 2 lakh
Social Bank loans up to a limit of Rs. 5 Schools, health care facilities, drinking water
Infrastructure crore per borrower for building social facilities & sanitation facilities
infrastructure for activities
Renewable Bank loans up to a limit of Rs. 15 like solar based power generators, biomass
Energy crore to borrowers for purposes based power generators, wind mills, micro-
For individual households, the loan hydel plants and for non-conventional energy
limit will be Rs. 10 lakh per borrower. based public utilities viz. street lighting
systems, and remote village electrification.
Category Norms Remarks
Others Loans up to 50000 to Individuals Income <= 1 lakh in Rural Areas
Income<=1.60 lakh in Other Areas
Loans to distressed persons up to To prepay their debt to non-institutional
1.00 lakh lenders
OD under PMJDY up to Rs. 5000 Income <= 1 lakh in Rural Areas
Income<=1.60 lakh in Other Areas
Loans to State SC/ST Corporations * for the specific purpose of purchase and
supply of inputs and/or the marketing of the
outputs of the beneficiaries of these
organizations
PS lending to certain section are defined under WS and not the WS are defined as PS
Net Bank Bank Credit in India Less Bills Rediscounted with RBI and other approved Financial
Credit Institutions
ANBC NBC PLUS [Bonds/debentures in Non-SLR categories under HTM category+ other
investments eligible to be treated as priority sector +Outstanding Deposits under
RIDF and other eligible funds with NABARD,NHB, SIDBI and MUDRA Ltd. on account
of priority sector shortfall + outstanding PSLCs LESS Eligible amount for exemptions
on issuance of long-term bonds for infrastructure and affordable housing Less Eligible
advances extended in India against the incremental FCNR (B)/NRE deposits,
qualifying for exemption from CRR/SLR requirements.
Weaker Section
SN (PS Loans to following section will be considered as WS finance)
1 Small and Marginal Farmers
2 Artisans, village and cottage industries where individual credit limits do not exceed Rs. 1 lakh
3 Beneficiaries under Government Sponsored Schemes such as National Rural Livelihoods
Mission (NRLM), National Urban Livelihood Mission (NULM) and Self Employment Scheme for
Rehabilitation of Manual Scavengers (SRMS)
4 Scheduled Castes and Scheduled Tribes
5 Beneficiaries of Differential Rate of Interest (DRI) scheme
6 Self Help Groups
7 Distressed farmers indebted to non-institutional lenders
8 Distressed persons other than farmers, with loan amount not exceeding Rs. 1 lakh per
borrower to prepay their debt to non-institutional lenders
9 Individual women beneficiaries up to Rs. 1 lakh per borrower
10 Persons with disabilities
11 Overdrafts up to Rs. 5,000/- under Pradhan Mantri Jan-DhanYojana (PMJDY) accounts,
provided the borrowers’ household annual income does not exceed Rs. 100,000/- for rural
areas and Rs. 1,60,000/- for non-rural areas
12 Minority communities as may be notified by Government of India from time to time {Sikhs
Muslims, Christians, Zoroastrians, Buddhists,Jains}
Other Sectors under Priority Sector:-
Khadi and Village Industries Sector (KVI) :- All loans to units in the KVI sector will be eligible for
classification under the sub-target of 7 percent /7.5 percent prescribed for Micro Enterprises.
Other Finance to MSMEs

(i) Loans to entities involved in assisting the decentralized sector in the supply of inputs to and marketing
of outputs of artisans, village and cottage industries.
(ii) Loans to co-operatives of producers in the decentralized sector viz. artisans, village and cottage
industries.
(iii) Loans sanctioned by banks to MFIs for on-lending to MSME sector as per the conditions specified in
paragraph IX of this circular.
(iv) Credit outstanding under General Credit Cards (including Artisan Credit Card, Laghu Udyami Card,
Swarojgar Credit Card, and Weaver’s Card etc. in existence and catering to the non-farm entrepreneurial
credit needs of individuals).
(v) Outstanding deposits with SIDBI on account of priority sector shortfall
Export Credit
1. Domestic Banks-Incremental export credit over corresponding date of the preceding year, up to 2
percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher,
effective from April 1, 2015 subject to a sanctioned limit of Rs. 25 crore per borrower to units having
turnover of up to Rs. 100 crore.
2. Foreign banks with 20 branches and above
Incremental export credit over corresponding date of the preceding year, up to 2 percent of ANBC or
Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, effective from April 1, 2017
(As per their approved plans, foreign banks with 20 branches and above are allowed to count certain
percentage of export credit limit as priority sector till March 2016).
3. Foreign banks with less than 20 branches

Export credit will be allowed up to 32 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet
Exposure, whichever is higher.
Miscellaneous-PS
Investments by banks in securitized assets
Transfer of Assets through Direct Assignment /Outright purchases
Inter Bank Participation Certificates
Priority Sector Lending Certificates
Bank loans to MFIs for on-lending
Monitoring of Priority Sector Lending targets
To ensure continuous flow of credit to priority sector, there will be more frequent monitoring of priority
sector lending compliance of banks on ‘quarterly’ basis instead of annual basis as of now. The data on
priority sector advances have to be furnished by banks at quarterly and annual intervals as per revised
reporting formats, the guidelines for which will be issued
NOTE:- PRIORITY SECTOR LENDING CERTIFICATE (RBI/2015-16/366 IDD.CO.PLAN.BC.23/04.09.01/2015-16)

APRIL 7, 2016
PSLC HAS BEEN INTRODUCED BY THE GOI TO ENABLE BANKS TO ACHIEVE THE PRIORITY SECTOR LENDING TARGET AND SUB-
TARGETS BY PURCHASE OF THESE INSTRUMENTS IN THE EVENT OF SHORTFALL AND AT THE SAME TIME INCENTIVIZE THE SURPLUS
BANKS; THEREBY ENHANCING LENDING TO THE CATEGORIES UNDER PRIORITY SECTOR. ACCORDINGLY THOSE BANKS WHO HAVE
SURPLUS PS ACHIEVEMENTS MAY SALE THROUGH PSLC TO OTHER BANKS WHO COULD NOT ACHIEVE THE PS TARGETS. THE
PSLCS WILL BE TRADED THROUGH THE CBS PORTAL (E-KUBER) OF RBI. SELLERS/ BUYERS-SCBS/RRBS/LABS/SMALL FINANCE
BANKS.
TYPES OF PSLCS: THERE WOULD BE FOUR KINDS OF PSLCS:–

i) PSLC AGRICULTURE: COUNTING FOR ACHIEVEMENT TOWARDS THE TOTAL AGRICULTURE LENDING TARGET.
ii) PSLC SF/MF: COUNTING FOR ACHIEVEMENT TOWARDS THE SUB-TARGET FOR LENDING TO SMALL AND MARGINAL
FARMERS.
iii) PSLC MICRO ENTERPRISES: COUNTING FOR ACHIEVEMENT TOWARDS THE SUB TARGET FOR LENDING TO MICRO
ENTERPRISES.
iv) PSLC GENERAL: COUNTING FOR ACHIEVEMENT TOWARDS THE OVERALL PRIORITY SECTOR TARGET.
Thus, a bank having shortfall in achievement of any sub-target (e.g. SF/MF, Micro), will have to buy the
specific PSLC to achieve the target. However, if a bank is having shortfall in achievement of the overall target
only, as applicable to it, may buy any of the available PSLCs.
Non-achievement of Priority Sector targets

Scheduled Commercial Banks having any shortfall in lending to priority sector shall be allocated amounts
for contribution to the Rural Infrastructure Development Fund (RIDF) established with NABARD and other
Funds with NABARD/NHB/SIDBI, as decided by the Reserve Bank from time to time.
For the year 2015-16, the shortfall in achieving priority sector target/sub-targets will be assessed based
on the position as on March 31, 2016.
From financial year 2016-17 onwards, 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.
The interest rates on banks’ contribution to RIDF or any other Funds, tenure of deposits, etc. shall be
fixed by Reserve Bank of India from time to time.
The misclassifications reported by the Reserve Bank’s Department of Banking Supervision would be
adjusted/ reduced from the achievement of that year, to which the amount of declassification/
misclassification pertains, for allocation to various funds in subsequent years.
Rate of interest admissible by the RIDF on

Investments by Banks under Rural Infrastructure Development Fund (RIDF)
Shortfall to overall PS lending Targets BR linked slabs
Up to 5% Bank Rate-2%
>5% to <10% Bank Rate-3%
10% & more Bank Rate-4%
Common guidelines for priority sector loans

Rate of interest:-The rates of interest on bank loans will be as per directives issued by our Department of
Banking Regulation from time to time.
Service charges:-No loan related and Adhoc service charges/inspection charges should be levied on
priority sector loans up to Rs. 25,000.
Receipt, Sanction/Rejection/Disbursement Register:- A register/ electronic record should be maintained by
the bank, wherein the date of receipt, sanction/rejection/disbursement with reasons thereof, etc., should
be recorded. The register/electronic record should be made available to all inspecting agencies.
Issue of Acknowledgement of Loan Applications:- Banks should provide acknowledgement for loan
applications received under priority sector loans. Bank Boards should prescribe a time limit within which
the bank communicates its decision in writing to the applicants.
These guidelines are subject to any further instructions that may be issued by the RBI from time to time.
On-lending: Loans sanctioned by banks to eligible intermediaries for onward lending only for creation of
priority sector assets. The average maturity of priority sector assets thus created should be broadly co-
terminus with maturity of the bank loan.
Contingent liabilities/off-balance sheet items do not form part of priority sector target achievement.
However, foreign banks with less than 20 branches have an option to reckon the credit equivalent of off-
balance sheet items, extended to borrowers for eligible priority sector activities, along with priority sector
loans for the purpose of computation of priority sector target achievement. In that case, the credit
equivalent of all off-balance sheet items (both priority sector and non-priority sector excluding interbank)
should be added to the ANBC in the denominator for computation of Priority Sector Lending targets.
Off-balance sheet interbank exposures are excluded for computing Credit Equivalent of Off -Balance
Sheet Exposures for the priority sector targets.
Bank loans above Rs.5 crore per borrower / unit to Micro and Small Enterprises would be taken into
account while assessing the performance of the banks with regard to their achievement of targets
prescribed by the Prime Minister’s Task Force on MSMEs for lending
The term “all inclusive interest” includes interest (effective annual interest), processing fees and service
charges.
Banks should ensure that loans extended under priority sector are for approved purposes and the end use
is continuously monitored. The banks should put in place proper internal controls and systems in this
regard.
CGTMSE/ CERSAI/ CIBIL ETC.
Credit Guarantee Fund Trust for Micro and Small Enterprises { w.e.f. 01.08.2000}
Eligible Enterprises- Ineligible Enterprises

Micro and Small Enterprises as defined under {medium enterprises- loans to educational institutions
MSME Act 2006. & self help groups (SHGs) & Agriculture Advances*}
Retail Trades < 10 lakh & > 100 lakh also not
covered**
Loan limit (FB+NFB) up to 200 lakh, (even in If facility is already covered under any other Guarantee
case of >100 lakh also but max cover Cover such as CGFMI, ECGC etc –it is not eligible for
restricted to100 lakh) CGTMSE credit guarantee
Standard Regular account (at the time of Account is NPA at the time of applying for credit
application) guarantee.
Unit should be in running condition, ROI Rate of Interest is > 14% (including AGF)
<=14% (including AGF)
Explanation- (In case of fresh facilities Borrower had earlier availed facility which was covered
extended to existing borrowers the fresh under CGTMSE and bank/FI invoked Guarantee but did
facility can be covered under CGTMSE sub to not repay portion of dues of the trust.
fulfilling other criteria, If bank relinquishes
collateral in existing accounts, and released MLI means Member Lending Institute
the collateral than can apply for CGTMSE
cover)
3rd Party Guarantee means? Guarantee of Prop in Prop Firm, of Partner(s) in LLP or a
Partnership Firm, of Karta and co-parcners in HUF, of trustee in trust account, of Promoter Director in
Company account shall be deemed as 1st Party Guarantee. All others will be treated as 3rd party
Guarantee
.
Till now, CGTMSE cover was available only for credit facilities extended without
collateral and without PG; but the Trust vide its circular number 142 dated
28.02.2018 has relaxed the norms as under:-
CGTMSE has now introduced a new “Hybrid Security” product allowing guarantee cover for the
portion of credit facility not covered by collateral security. In the partial collateral security model, the
MLIs will be allowed to obtain collateral security for a part of the credit facility, whereas the remaining
part of the credit facility, up to a maximum of Rs.200 lakh, can be covered under Credit Guarantee
Scheme of CGTMSE. CGTMSE will, however, have pari-passu charge on the primary security as well as
on the collateral security provided by the borrower for the credit facility. Guarantee fee will be charged
on the guaranteed amount for the first year and on the proportionate outstanding amount
subsequently resulting in lower guarantee fee charged to MSEs. The above change of allowing partial
collateral security under the ambit of Credit Guarantee Scheme of CGTMSE shall be applicable to fresh
credit facilities sanctioned by MLIs on or after April 01, 2018
**Note- Coverage of Retail Trades-CGTMSE vide its circular number 141 dated
28.02.2018
1. MSE Retail Traders (10 Lakh to 100 lakh per borrower exposure only).
2. Extent of Guarantee 50%
3. Applicable fee i.e. AGF will be charged at the rate of 2% of the guaranteed amount for the first
year and on the outstanding amount for the remaining tenure of the credit facility. Differential
pricing structure depending upon NPA / Claim payout ratio of the MLI will also be applicable on
the AGF as per CGTMSE Circular No.107/2015-16 dated January 28, 2016.
4. Applicable on fresh facilities sanctioned on or after 01.04.2018
Following Sectors/ Activities of Agriculture are also eligible for CGTMSE Cover
Loans to Food and Agro Industries and following activities under Agri-Clinics and Agri
Business Centers (ACABCs) can also be covered under CGTMSE
Maintenance and Repairs of Agricultural Implements & Machinery including Micro Irrigation Systems
Agri Service Centers, Seed Processing Units, Tissue Culture,
Production of Bio-fertilizers, Bio-pesticides, Bio-control agents
Honey and Bee product Processing Units
Feed Processing and Testing Units
Setting up of Information Technology Kiosks in rural areas for access to various agricultural related
portals
Setting up of Cool chain from the farm level onwards
Extent of Guarantee Cover

Category Max extent of Guarantee (of amount in default) where credit facility is
Up to 5 L > 5 L to 50 L > 50 L to 200 L
Micro Enterprises 85% 75% 50% of amount in
Max. Rs. Default Subject to Max. Rs.100
4.25 L Max. Rs. 37.50 L Lakh
Women Enterprises/ 80%
Units in North East Max. Rs. 40.00 L For cases sanctioned on or after
01.04.2018
Region (incl. Sikkim)
75% of amount in default, maximum
All other category of 75% Max. Rs. 37.50 L 150 lakh
Borrowers (CGTSME cir 140 dt 28.02.18)
Tenure for coverage of Credit facilities

Working Capital For a period of 5 years or a block of 5 years, or for such period as may be
Alone specified by the trust in this regard
CGTMSE guarantee cover is renewed guarantee cover beyond 5 years on a
payment of applicable guarantee fee
WC + T L The tenure relating to working capital facility would match the normal
repayment period of term credit.
The guarantee cover will commence from the date of payment of guarantee fee /Annual Guarantee
Fee and shall run through the agreed tenure of the term credit in respect of term credit / composite
credit
AGF for Loans sanctioned before 01.04.2018

Credit limit Women, Micro Enterprises and units in NE Others
Region (incl. Sikkim)
Up to Rs. 5 lakh %0.75+ applicable Risk Premium %1+ applicable Risk Premium
> Rs. 5 lakh to 200 lakh %0.85+ applicable Risk Premium %1+ applicable Risk Premium
Modified AGF-Standard Rate (SR) w.e.f. 01.04.2018

(CGTMSE Circular no. 140 dated 28.02.2018)
Credit Limit Women, Micro Enterprises & Others
units in NE Region (incl. Sikkim)
Up to 5.00 L 1% of limit sanctioned + Risk Premium as per extant guidelines
> 5 L to 50 L 1.35 % of limit sanctioned + Risk 1.50 % of limit sanctioned + Risk
Premium as per extant guidelines Premium as per extant guidelines
> 50 L to 200 L 1.80 + Risk Premium as per extant guidelines of the Trust
Note:-AGF will be charged on the guaranteed amount for the first year and on the outstanding amount
for the remaining tenure of the credit facility.
TL- AGF would be calculated on outstanding amount as on 31st December against each guarantee
account.
WC- AGF would be calculated on maximum (peak) working capital limit availed by the
borrower/enterprise in the previous calendar year. In accounts where original sanctions are prior to
April 01, 2018 and enhancement in the limits is on or after April 01, 2018, the earlier rate structure
would continue to apply even for the enhanced portion.
Payment:- Demand for AGF would be generated by 2nd week of February every year. AGF so
demanded would be paid by the MLIs on or before 15th April each year.
Revival:-If the guaranteed account gets closed due to non-payment of AGF, on the request for revival
of accounts, an additional risk premium of 15% will be charged on the Standard Rate in addition to the
existing differential pricing structure and penal interest, if any.
Eligible limit:- Eligible limit per borrower would continue to be on the guarantee approved amount
and not on the outstanding amount
Annual Service Fee (ASF): ASF @ 0.50% (up to Rs. 5 lakh) & @ 0.75% (above Rs. 5
lakh) sanctioned prior to 01.01.2013 is also payable in addition to the AGF.
Risk Premium on the basis of level of NPA/ Claim Pay-Out ratio of the MLI shall also be charged on the
Standard Rate as under:
Risk premium on NPAs in Guaranteed portfolio Risk premium on Claim Payout Ratio
NPA % Risk Premium Claim payout ratio Risk Premium
0-5% SR 0-5% SR
>5-10% 10% of SR >5-10% 10% of SR
>10%-15% 15% of SR >10%-15% 15% of SR
>15%-20% 20% of SR >15%-20% 20% of SR
>20% 25% of SR >20% 25% of SR
NPA = % &
Claim Pay-Out = %
Illustration: Suppose as on March 31st the NPA as a % of total outstanding guaranteed amount
with the Trust of an MLI was 16% & claim payout ratio of the MLI was 8%. Calculate total AGF on
Rs. 10 lakh.
Standard Rate=1.50%;
Risk Premium on the basis of NPA % : 1.50x20%= 0.30%
Risk Premium on the basis of Claim Payout Ratio: 1.50x10%=0.15%
Accordingly total AGF= 1.50+0.30+0.15; Total = 1.95% and on Rs. 10 lakh it will be Rs. 19500/-.
Applicable GST will be in addition to it.
Additional risk premium of 15% will be charged on the applicable rate to MLIs who exceed the pay-
out threshold limit of 2 times more than thrice in last 5 years. This premium will be applicable for all
guarantee accounts irrespective of the sanction date.(Circular CGTMSE 140 dated 28.02.2018)
Other features
In the event of non-payment of ASF / AGF by 15th April of that year from the date of demand by
CGTMSE) Penalty on account of Non-payment of ASF/AGF in time:- @ 4.00% over Bank Rate, per
annum, or at such rates specified by the Trust
Lodging applications:-latest by the end of next quarter
All the requests of delay in NPA marking may be forwarded to email id npa@cgtmse.in along with the
scanned copy of the request letter duly signed by the officer not below the rank of AGM. CGTMSE will not
entertain any emails without the attachment of the scanned letter for the request of delay in NPA marking
For lodgment of guarantee claims under CGTMSE, the Banks are required to inform the date of
classification of the account as NPA in a particular calendar quarter, by end of subsequent quarter using
the following option in the online system.
Circular no. 112 (CGTMSE) dated 23.02.2016:- Modification in on line "Guarantee Application Form"
by inserting the provision for feeding following three details:
1. Udyog Aadhaar (उRयोग आधार) Number-( although not mandatory)
2. Bank A/c Number-(although not mandatory)
3. IT PAN-Mandatory for Credit Facilities of Rs. 5 lakh and above sanctioned on or after 01.04.16
Cir 134 of CGTMSE (08.12.2017) MLIs will now have to compulsorily provide Aadhar number and/or
UAN whichever is available. In case of proprietorship concern, the Aadhaar number of the proprietor is to
be provided and in case of partnership firm /corporate entities, the Aadhaar number of chief promoter is
to be provided.
CBS System (OBC)

In all accounts covered under CGTMSE, feed Guarantee Cover Code as “CGTSI” in “V” detail in ACM
menu”
Loans sanctioned during a particular quarter for ex. From 01.07.15 to 30.09.15, the application be
submitted latest by the end of next quarter i.e. 31.12.2015 for lodgment of application on e-portal of
CGTMSE
The formula for calculation of project cost & working capital assessed are as under:
Project Cost = Term Credit Sanctioned + Promoter’s Contribution + Subsidy/Equity support
Working Capital Assessed= Working Capital Sanctioned + Promoter’s Contribution +
Subsidy/Equity support
Lock-in-period & earliest and last date of lodgment of Claim:-
1. If loan has been sanctioned before 01.01.2013, the claim can be lodged within 1 year from the
expiry date of lock-in-period or date of NPA (whichever later). The period will be 2 years in
respect of loans sanctioned on or after 01.01.2013.
2. If loan turns NPA on or after 15th March, 2018, the period of lodgment of claim shall be 3 years
calculated as above. (reference –Trust circular no. 145 dated 15.03.2018)
3. Lock-in-period means, 18 months period from the date of start of Guarantee or disbursement of
loan (last disbursement in case of TLs). An illustration:-
Case Date of Date of disbursement Calculation of Expiry date of

payment of of loan) Last Lock-in-period lock in period
AGF disbursement date in
case of TL(
1 30.012013. 15.03201.3 15.03 18+ 2013. 15.09 2014.
months )A(
2 30.01201.3 300.1201.3 30.0118+2013. 30.07 2014.
months )B(
Note-Claim cannot be lodged before 15.09.2014 in case (1) and before 30.07.2017 in case number (2).
Calculation of last date of lodgment of claim shall be made as under:-
Case Date of Date of NPA Last date of Date of NPA Last date of
sanction lodgment of lodgment of
claim claim
1 15.12.2012 ) 31.12.2013C( 15.09.2015 ) 30.09.2014E( 30.09.2015
)A 1+years( )E 1+years(
2 15.01.2013 ) 31.12.2013D( 30.07.2016 ) 30.09.2014F( 30.09.2016
)B 2 +years( )F 2+years(
4. Thereafter, the 'Declaration and undertaking' signed by the officer not below the rank of
Assistant General Manager is presented to the Trust.
5. Upon acceptance of the claim by the trust, 75% of the guaranteed amount, in the form of first
installment, is paid to the member within a period of 30 days. If the Trust delays more than 30
days, then it will also pay interest on the said amount @ Base Rate of the Reserve Bank of India
till the payment is received by the MLI. The following are the conditions for payment of
remaining 25% claim amount (second installment)
6. MLI can claim 2nd installment of the claim after lapse of 3 years from the date of possession of
secured assets under the section 13(iv) of the SARFAESI Act, 2002 or issuance of recovery
certificate by the Tehsildar in respect of loans sanctioned on or after January 01, 2013. No
tangible security is available. PG has been invoked and no other tangible assets are available.
7. The second installment in the loan cases sanctioned before 01 January 2013 will be paid after
the recovery process is completed by the bank. Here, completion of the recovery process means
that (1) all secured assets have been sold under the SARFAESI Act and the recovered amount
has been remitted to the trust. Whereabouts of the debtor is not known. Net Worth of the
guarantor is inadequate, (2) all out efforts for recovery have been exhausted including Lok
Adalat etc. & no tangible asset is available. Net Worth of the obligants is insufficient. (3) No
tangible security is available; the net worth of the obligants is inadequate. (4) No tangible
security is available and/ or debtor is absconding.
8. However claim for release of 2nd installment can be made only after lapse of 3 years from the
date of release of the first claim installment.
9. Recovery made in the loan account, after receipt of the claim amount shall be immediately
remitted to the trust after deducting legitimate expenses (to the extent of the claim amount
received by the Trust). If MLI delays more than 30 days, it will also have to pay the interest to
the trust at the rate of 4% more than the Base Rate of the Reserve Bank of India.
10. According to Circular No. 138 of the Trust dated January 19, 2018, a limit of payment of total
claim amount (first and last installment) has been determined. Trust will not entertain claim
more than the twice of the AGF paid by the MLI plus refund of recoveries to the trust during the
past year.
Other provisions:-
1. The risk weight will be zero on the risk amount covered by the trust and also there will be zero
provision to the extent of guaranteed amount in case of doubtful and loss assets.
2. If MLI wishes to settle an account covered under the Trust’s Guarantee Scheme then the
minimum settlement amount cannot be less than the claim amount received. The amount
collected will be returned to the trust according to the rules.
3. The past track record of the existing borrower should be satisfactory. As per bank's credit
policy, apart from many other parameters, the accounts whose current ratio is at least 1.17: 1 &
the Debt Equity & Leverage Ratios are within the acceptable bench marks, they fall under the
category of satisfactory track records.
4. Circulars and Guidelines related to the Guarantee Scheme are issued from our Bank's 'Rural
Development and Priority Sector' Department.
5. If an entrepreneur does not want to be included in the guarantee scheme of Trust for a loan
facility of more than Rs. 10 lakh (up to Rs. 200 lakh), then he/she can do so by filling an
undertaking.
Credit Guarantee Fund For Micro Units (CGFMU)
Circular No. HO:Agribusiness & FI:52:2016-17:447-29th August, 2016 Credit Guarantee Fund
For Micro Units (CGFMU)- For Micro Loans - with effect from 08.04.2015-"Micro Loan" means any
financial assistance by way of collateral free / third party guarantee free loan/limit (currently Rs. 10 lakh),
extended by the lending institution to the eligible borrower, as per the guidelines prescribed by the Fund.
Under the aegis of Pradhan Mantri MUDRA Yojana, Overdraft facility of Rs.5,000/- sanctioned
under PMJDY accounts shall also be eligible to be covered under Credit guarantee Fund.
Guarantee Cover means maximum cover available per portfolio, based on the amount in default, in
respect of the credit facility extended by the lending institution. The first 5% of the amount in default will
be borne by the eligible lending institution. The amount in default over and above 5% (if applicable) will
be settled by the fund to the extent of 50% on pro-rata basis, subject to the receipt of an Auditors'
certificate confirming eligible claim amount.
Collateral security means the security provided in addition to primary security / personal obligation of
borrower/co-borrower. Primary security would mean all the assets (movable/immovable) owned by the
borrower, including the personal obligation [personal guarantee] of the borrower.
Guarantees:- In the nature of 'First Loss Portfolio Guarantee', wherein first loss to the extent of 5% of
the crystallized portfolio of the Lending Institution, will be borne by the Lending Institution and therefore,
will be excluded for the claim. Out of the balance portion, the 'extent of guarantee' will be to a maximum
extent of 50% of 'Amount in Default' in the portfolio or such other percentage as may be specified by the
Fund from time to time on a pro-rata basis. The guarantee cover will commence from the date of
payment of guarantee fee and shall run through the agreed tenure of the repayment of Micro loan or the
termination date of the portfolio, whichever is earlier, subject to yearly renewal of the guaranteed
portfolio.
Feeding of correct Code:- cases covered under CGFMU to be given correct code in finacle as under.
The coverage shall be obtained centralized at HO from NCGTC. Guarantee Fee shall be debited centrally
by the Credit Guarantee Cell at Corporate Office Gurgaon.
Particulars Code to be Description of code Purpose for which those code to

(ACM>Voption) entered be entered
Guarantee MUDRA Credit Guarantee Scheme For coverage under
Cover Code Pradhan Mantri Mudra Yojna CGFMU(MUDRA)
Free Code 9 MUDRA Pradhan Mantri Mudra Yojna To classify the account under
PMMY
Ref-HO/MSME/19/2016-17/1159 dated 06.03.2017

Risk Based Guarantee Fee components:-
Standard Basic Rate (SBR) of 1.00% of sanctioned amount
Risk Premium on NPAs in guaranteed Risk Premium on Claim Payout Ratio

portfolio
NPA Percentage Risk Premium Claim Payout Ratio Risk Premium
0-2% Nil 0-2% Nil
>2-3% 5% of SBR >2-3% 5% of SBR
>3-6% 10% of SBR >3-6% 10% of SBR
>6-9% 15% of SBR >6-9% 15% of SBR
>9-12% 20% of SBR >9-12% 20% of SBR
>12-15% 25% of SBR >12-15% 25% of SBR
HO/RD&PS/78/2016-17/757 dated 21.11.2016:- Modification in Guarantee Application form with regard to

Credit facilities covered/proposed to be covered under PMMY/MUDRA Guarantee Scheme-Since many of
the MSME upto 10 lakhs are eligible under both Credit Guarantees so to avoid dual CG coverage, MLI (i.e.
Bank or FI) has to confirm to the CGTMSE that the said credit facility has not been covered under MUDRA
Guarantee scheme. If any facility covered under CGFMU (upto 10 lakhs) on enhancement of such credit
facility, can be applied with CGTMSE subject to withdraw from CGFMU (existing plus proposed exposure).
But if any additional facility is sanctioned (above existing 10 lakh covered under CGFMU) the same can be
separately covered under CGTMSE.
Credit Guarantee Fund Scheme for Education Loans

Reference:- HO:Retail:09:2016-17:192 Date: 10.06.2016
Education Loan is main product of Retail Credit portfolio. It is the fulcrum to the human resources
development & empowerment of any country. Education Loan helps in developing long-term relationship
between Bank & customers at their young age.
The Government of India (GOI) through Ministry of Human Resource Development, Department of Higher
Education has notified vide Gazette Notification No. 18-1/2013-U.5(Vol. III) dated September 16, 2015,
the Credit Guarantee Fund Scheme for Education Loans. The Fund and the scheme are managed and
operated by National Credit Guarantee Trustee Company Ltd. (NCGTC), a wholly owned trustee company
of Government of India. Our Bank has entered into an agreement with NCGTC and has been registered
as an MLI (Member Lending Institution) for availing Credit Guarantee Facility under CGFSEL
All Education Loans up to Rs. 7.50 Lakh (India and Abroad) sanctioned from the date of this
circular (i.e. 10.06.2016) shall be covered under CGFSEL, hence no personal guarantee or
collateral security shall be obtained in such cases.
However, in case, the borrower/co-borrowers insist on collateral security in Education Loan

above Rs. 4.00 lakh and up to Rs. 7.50 lakh to avail the benefit of lower Rate of Interest, the
loan can be sanctioned under existing Education Loan Scheme of the Bank but such accounts
shall not be eligible for coverage under CGFSEL and loan account will not be opened with
Free code 10 as EL17.
Salient features of CGFSEL are as under:
1 . Annual Guarantee Fee (AGF) of 0.50% p.a. of the outstanding loan amount as on date of
application of guarantee cover shall be paid upfront to the Fund within 30 days from the date of Credit
Guarantee Demand Advice Note (CGDAN) of guarantee fee. The fee shall be borne by the Bank. All
subsequent AGFs would be calculated on the basis of the outstanding loan amount as at the beginning of
the financial year. However, the Fund reserves the right to charge different guarantee fees in future for
different educational loans depending on their risk rating/risk profile.
2. Lock-in Period:- 12 months from the date of commencement of guarantee cover or end of period of
moratorium of interest, whichever is later.
3. Extent of the Guarantee: - The Fund shall provide guarantee cover to the extent of 75% of the
amount in default. {Amount of default-Balance O/s as on date of NPA or on date of lodgment
of claim whichever lower, including interest}
75 percent of the guaranteed amount will be paid on preferring of eligible claim by the Bank within 30
days subject to the claim being otherwise found in order and complete in all respects.
The balance 25% of the guaranteed amount will be paid after obtaining a certificate from the Bank
that all avenues for recovering the amount have been exhausted.
4. Invocation of Guarantee: - Guarantee can be invoked:

Within a maximum period of one year from date of NPA, if NPA is after lock-in period
Within one year of lock-in period, if NPA is within lock-in period
5. Penal Interest to the Fund: - The Bank shall be liable to refund the claim released by NCGTC
together with penal interest at the rate of 4% above the prevailing Bank Rate, if such a recall is made by
NCGTC in the event of deficiencies having existed in the matter of appraisal / renewal / follow-up /
conduct of the Education Loan or where lodgment of the claim was more than once or where there
existed suppression of any material information on part of the Bank for the settlement of claims. The
Bank shall pay such penal interest, when demanded by the Fund, from the date of the initial release of
the claim by NCGTC to the date of refund of the claim.
6. Subrogation of Rights:-The details of efforts for recovery, realizations and such other information
shall be furnished by the Bank to NCGTC as and when required. NCGTC shall not exercise any
subrogation rights and the responsibility of the dues shall rest with the Bank. In the event of a borrower
owing several distinct and separate debts to the Bank and making payments towards any one or more of
the same, whether the account towards which the payment is made is covered by the guarantee of the
Fund or not, such payments shall, for the purpose of this clause, be deemed to have been appropriated
by the Bank to the debt covered by the guarantee and in respect of which, a claim has been preferred
and paid, irrespective of the manner of appropriation indicated by such borrower or the manner in which
such payments are actually appropriated.
Every amount recovered and due to be paid to NCGTC shall be paid without delay, and if any amount due
to NCGTC remains unpaid beyond a period of 30 days from the date on which it was first recovered,
interest shall be payable to NCGTC by the lending institution at the rate which is 4% over and above the
Bank Rate for the period for which payment remains outstanding after the expiry of the said period of 30
days
7. Appropriation of Recovery:- Where subsequent to the Fund having released a sum to the Bank
towards the amount in default in accordance with the provisions of this scheme, the Bank recovers
money subsequent to the recovery proceedings initiated by it, the same shall be deposited by the Bank
with NCGTC, after adjusting towards the legal costs incurred by it for recovery of the amount. The Fund
shall appropriate the same first towards the pending service fee, penal interest, and other charges due to
the Fund, if any, in respect of the credit facility towards which the amount has been recovered by the
Bank, and the balance, if any, shall be appropriated in such a manner so that losses on account of deficit
in recovery of the credit facility between NCGTC and the Bank are in the proportion of 75% / 25%,
respectively.
8 Scheme Specific Conditions:-

Education Loan eligible under the scheme as on the material date i.e. the date on which the guarantee
fee on the amount covered in respect of eligible borrower becomes payable by the Bank to the Trust
a. There are no overdue in respect of the account and / or the loan has not been classified as a Non-
Performing Asset (NPA) in the books of the Bank, and/or
b. The activity of the borrower for which the credit facility was granted has not ceased; and / or
c. The credit facility has not wholly or partly been utilized for adjustment of any debts deemed bad or
doubtful of recovery, without obtaining a prior consent in this regard from NCGTC.
Education Loan not eligible under the scheme:
a. Any Education Loan in respect of which risks are additionally covered by Government or by any general
insurer or any other person or association of persons carrying on the business of insurance, guarantee or
indemnity, to the extent they are so covered.
b. Any Education Loan, which does not conform to, or is in any way inconsistent with, the provisions of
any law, or with any directives or instructions issued by the Central Government or the Reserve Bank of
India, which may, for the time being, be in force.
9. The Fund may, at its discretion, approve/frame a list of educational institutes and/or their courses,
loans for which the guarantee cover will be available, or the Fund may also notify the categories of
educational institutions/courses for which the guarantee cover shall not be available.
10. Aadhar Number of the Borrower/Co-Borrowers shall be linked with the Education Loan.
Borrower’s/Co-Borrower’s name shall also be registered with an appropriate credit information bureau.
11. If a borrower becomes ineligible for being granted education loan under the Scheme, the liability of
NCGTC in respect of Education Loan granted to him/ her by a Bank under the Scheme shall be limited to
the liability of the borrower to the Bank as on the date on which the borrower becomes so ineligible,
subject, however, to the limits on the liability of NCGTC fixed under this Scheme
12. The maximum rate of interest to be charged by the Bank on Education Loans, eligible under the
scheme, is MCLR plus up to 2%. Presently the slabs are as under:-
For A Category Institutes loans up to 7.50 lakh 1 year MCLR No collateral security
(Scheme TL647, FC10-EL17, INTT Table and third party
MCLNY) guarantee
For B Category Institutes loans up to 7.50 lakh 1 year MCLR+0.50% (Credit Guarantee
(Scheme TL647, FC10-EL17, INTT Table cover to be obtained)
ML050)
For all other institutes loans up to 7.50 lakh 1 year MCLR+2.00%
(Scheme TL641 {india}, TL642 {abroad}, FC10-
EL17, INTT Table ML200)
All other terms & conditions under the Oriental Education Loan Scheme shall remain unchanged & be
complied with.
Credit Guarantee Scheme For Stand Up India (CGSSI)

Reference:- Circular No. HO:Agribusiness & FI:51:2016-17:445 dated 29.08.2016
Our Bank is member of NCGTC for the purpose of "Credit Guarantee Scheme for Stand up India (CGSSI).
Pursuant to Government guidelines bank has approved CGSSI. Salient features of the scheme are as
under:-
The scheme shall be known as the Credit Guarantee Scheme for Stand Up India (CGSSI). ❖It
shall come into force from the date of notification.❖ The objective is to guarantee credit facilities of over
Rs. 10.00 lakh and up-to Rs. 100.00 lakh sanctioned by Bank under 'Stand Up India' Scheme
ELIGIBLE INELIGIBLE
Credit facility is not secured If It is additionally covered to the extent they are so
collaterally and/or third party covered under :-
guarantee A scheme operated/administered by DICGC or RBI, any
Dues have not become bad or general Insurer or any other person or association of
doubtful of recovery. persons carrying on the business of insurance, guarantee
Business/activity of the borrower or indemnity.
has not ceased. Any credit facilities which do not conform to or is in any
Credit facility has not wholly/partly way inconsistent with the provisions of any law or with any
been utilized for adjustment of any directives or instructions issued by the Central Government
debts deemed bad or doubtful of or RBI.
recovery. Any credit facilities granted to any borrower, who has
availed any other composite loan covered under this
scheme, where the lending institution has invoked the
guarantee provided by the trust or by reason of any default
on the part of the borrower in respect of that composite
loan.
Any Credit facilities which are secured collaterally and / or
third party guarantee.
Any credit facilities which are not conforming to the Stand
Up India Scheme.
The lending institution shall collate all its outstanding eligible Stand Up India credit facilities extended
against sanctions effected on or after the date of Gazette notification as at the end of quarter ended
March, June, September and December into a batch and submit the information
Required by NCGTC for giving guarantee cover with regard to Stand Up India Borrowal account.
The lending institution shall ensure, to the extent applicable, linkage of every Stand Up India credit
facility with Aadhaar Number and register the borrower's/co-borrower's name with an appropriate credit
information bureau.
The lending institution shall comply with such directions as may be issued by NCGTC from time to time
The lending institution shall in respect of any Guaranteed account, exercise the same diligence in
recovering the dues.
The time line of availing guarantee coverage is before the expiry of following quarter.
The lending institution shall pay a risk based guarantee fee of the sanctioned amount. Such fee shall be
paid on pro-rata basis for the first and last year and in full for the intervening years on the credit facility
sanctioned (Term Loan and / or Working Capital facility) within 16 days from the end of quarter in which
credit facility sanctioned / credit guarantee taken.
Guarantee Fee Structure:-
Standard Basic Rate (SR) - 0.85% p.a. on the sanctioned amount
Risk Premium On NPAs in Guaranteed Portfolio Risk Premium On Claim Payout Ratio
NPA % Risk Premium Claim Payout % Risk Premium
0-5% SR 0-5% SR
>5-10% 10% of SR >5-10% 10% of SR
>10-15% 15% of SR >10-15% 15% of SR
>15-20% 20% of SR >15-20% 20% of SR
>20% 25% of SR >20% 25% of SR
Guarantee fee with respect to NPA accounts would continue to be paid till lodgment of claim for such
accounts
The guarantee cover will commence from the date of payment of guarantee fee and shall run through the
agreed tenure of the facility.
Invoking Guarantee:-
Lock –in-Period 18 months from the date of commencement of Guarantee cover
Invoking Case-I Case-II
Guarantee If account turned NPA after Lock- If account turned NPA within Lock-in-Period
in-Period
Within max. 2 years from date of Within max. 2 years from end of lock in
NPA period
Conditions The guarantee shall be invoked if credit facility has been recalled and the recovery
proceedings have been initiated under the process of law
The trust shall pay 75% of the guaranteed amount within 30 days. The balance
25% of the guaranteed amount shall be paid on conclusion of recovery
proceedings.
The lending institution shall exercise its right to take over the assets of the
borrower and amount realized, if any, shall first be credited in full before claiming
remaining 25% of the guaranteed amount.
Where guaranteed amount as claim has been released to lending institution
towards amount in default, the lending institution shall recover money subsequent
to the recovery proceedings initiated by it and same shall be deposited by the
lending institution after adjusting towards the legal costs incurred by it for
recovery of the amount
Extent of Guarantee cover
Amount Guarantee cover
Rs. 10 L to 50 L 80% of amount in Default
> Rs. 50 L to 100 L Rs. 40 L+50% of the amount in default above Rs. 50 Lakh
CERSAI
(Central Registry of Securitization Asset Reconstruction and
Security Interest)
The Central Registry of Securitization Asset Reconstruction and Security Interest of

India (CERSAI)
CERSAI was established on 31.03.2011
This is a Government Company licensed under section 25 of the Companies Act 1956 for the purpose
of operating and maintaining the Central Registry under the provisions of the SARFAESI Act, 2002
In terms of the Loan Policy, all the transactions of Equitable Mortgages created on immovable
properties are required to be registered with Central Registry (CERSAI) within 30 days from the date
of creation of the mortgage
Purpose of CERSAI
The records maintained by the Central Registry will be available for search by any lender or any other
person desirous of dealing with the property.
Availability of such records would prevent frauds involving multiple lending against the security of
same property.
Also it will prevent fraudulent sale of property without disclosing the security interest (Charge) over
such property.
OBJECTS
Making security interest over property effective
In the event of default by the borrower the rights of enforcement are available to the secured
creditor.
Provide database of security interest on properties .
Important for potential buyers and lenders.
Provision of search to any person.
Create an environment conducive to the lending.
Credit is the driving force of the economy and establishment of CERSAI is intended to facilitate
growth of the secured credit.
APPLICABILITY
Banks; Financial Institutions, Securitization and reconstruction companies, RRBs, Multi state co-
operative Banks
REGISTRATION
ALL EM (mortgages by deposit of title deeds); transactions (creation, modification or satisfaction of
Security Interest) on or after 31.03.2011 is to be registered with Central Registry within 30 days.
(Registration up to 60 days allowed with penalty)
After amendment to section 23 effective from 15.05.2013 Existing EM charges on or before 31.03.
2011 were also covered.
Registration of assignment of receivables allowed w.e.f. 02.04.2012.
CIRCULAR NO. HO/RMD/73/2015-16/877 DATE: 06.02.2016
FRESH NOTIFICATION FOR REGISTRATION OF OTHER TYPES of SECURITY INTEREST with

CENTRAL REGISTRY (CERSAI) within 30 days of creation of charge
Particulars of creation, modification or satisfaction of following types of security interest shall be filed in
Form I or Form II, as the case may be, and shall be authenticated by a person specified in the Form for
such purpose by use of a valid digital signature.
1. Security Interest In immovable property by mortgage other than mortgage* by deposit of title deeds
2. Security Interest in hypothecation of plant and machinery, stocks, debt including book debt or
receivables, whether existing or future.
3. Security Interest in intangible assets, being knowhow, patent, copyright, trade mark, licence,
franchise or any other business or commercial right of similar nature,
4. Security Interest in any under construction residential or commercial building or a part thereof by an
agreement or instrument other than by mortgage. (on or after 22.01.2016)
5. This is in addition to the Security Interest in immovable property by way of Mortgage by way of
deposit of title deeds. The operational Guidelines shall be issued shortly.
Circular no. HO/RMD/ 81 /2015-16/975 dated 11.03.2016- REVISED OPERATIVE GUIDELINES FOR
REGISTRATION OF SECURITY INTEREST ON CENTRAL REGISTRY (CERSAI)-With reference to the
captioned subject, please note that entry of registration of creation, modification, correction
or satisfaction of security interest shall be verified at the Branches itself -all Branch
incumbents must get their User Ids with Checker Role for verification & link the same with a valid digital
signature.
*Circular no. HO/RMD/ 22 /2017-18/266 dated 06.07.2017- Section 31(i) of the SARFAESI Act
states that “Provisions of this Act not to apply in any security interest created in agriculture land. As
registration of security interest is mandated u/s 23 of SARFAESI Act, therefore in view of section 31(i) of
SARFAESI Act, security interest created in agriculture land are not required to be filed on CERSAI portal.”
CERSAI also offers two types of Public Searches (1) Asset based (2) Debtor based after
paying a nominal fee plus GST. If any property registered with the CERSAI, matches the
input records, it will give the detailed report accordingly. Any person can generate
these reports online on the portal of the CERSAI.
RECOVERY OF CHARGES w.e.f. 01.02.2016

SN Nature of TXN to be registered Form Amount of Fee Payable
Number
1 Creation or Modification of Charge in Form I Creation or modification of charge
favour of secured creditor 1) Up to Rs.5 lac Rs. 50+ST
2) > Rs. 5 lac- Rs. 100+ST
2 Satisfaction/ Correction of Charge Form II Rs. NIL
3 Application for an information ---- Rs. 10+GST
recorded/ maintained in Registry by any
person
Registration on CERSAI after the date of Transaction (EM) [Charges for delay]
1 Condonation of delay up to 30 days. Not exceeding 10 times of the basic fee, as
applicable.
Up to 5 lakh > 5 Lakh
2 Delay 31 days to 40 days Rs. 100+ GST Rs. 200+GST
Delay 41 days to 50 days Rs. 250+GST Rs. 500+GST
Delay 51 days to 60 days Rs. 500+GST Rs. 1000+GST
Circular RMD-72-2015-16-866 dated 03.02.2016
GST w.e.f. 01.07.2017 18% GST will be applicable on all type of transaction carried out on CERSAI
portal
Procedure for Filing the Delay Condonation

1. Application For delay between 31-60 days:- Maker fills the transaction details. 2. System
will pop up condonation form with prefilled values. 3. Maker will enter the reason for delay and
submit. 4. The record will be available for approval by the checker. 5. On approval by the
checker the transaction will get registered on CERSAI with collection of prescribed additional
fees.
2. For delay of more than 60 days:- 1. Maker fills the transaction details. 2. System will pop up
condonation form with prefilled values. 3. Maker will enter the reason for delay and submit. 4.
The record will be available for approval by the checker. 5. On approval by checker the record
will get submitted to the Central Govt. 6. On approval/ rejection of record by Central Govt. the
record will appear in the link “Consolidated List for Action” of checker. 7. The checker will then
be able to authorize the approved record and prescribed additional fee will get deducted from
the institutions account.
3. Correction of Record:- 1. Maker fills the transaction details. 2. System will pop up
condonation form with prefilled values. 3. The record will be available for approval by the
checker. 4. On approval by checker the record will get submitted to the Central Govt. 5. On
approval/ rejection of record by Central Govt. the record will appear in the link “Consolidated
List for Action” of checker. 6. The checker will then be able to authorize the approved record.
No additional fee will be charged for Correction.
Other Guidelines (HO/RMD/860 dtd 30.01.2015)

W.E.F. 10.02.15 option of C/M/S of Security Interest only through CERSAI web site & not through
FINACLE
Mandatory ONLINE search (Twice- at the time of processing of loan application and before
disbursement of the loan)-in case of similar details are found, check additional details to ensure the
correctness
Where EM has been created, no loan be disbursed before registration of S.I. in the CERSAI
Branches to ensure that the S.I. not only entered but also verified and Security Interest ID & Asset
ID (SI-ID, A-ID) have been generated
Branches headed by Scale IV & above to verify the entry within 2 Working days through
DIGITAL signature. Other branches shall get it done through RO within 2 days.
Verification should be completed within 7 days in all cases.
In case charge not done even within 60 days, the same can be done only after seeking necessary
consolation of delay from the Government.
SI-ID and Asset ID should be noted on the respective pages of EM register
For any clarification Branch may contact RMD Corporate Office Gurgaon at 0124 – 4126443 &
0124 – 4126450 VOIP 257 & 261 mail ID cersai@obc.co.in
On takeover of account, Branches shall file satisfaction of charge immediately
& handover the property immediately to avoid delay in creation of charge by the other Bank
In case of consortium cases, the Lead Bank shall do the needful and create provision for the other
Banks/Fis
AMMENDMENTS IN OPERATIVE GUIDELINES FOR REGISTRATION OF SECURITY INTEREST

ON CENTRAL REGISTRY (CERSAI) CIRCULAR NO. HO/RMD/80/2016-17/588 DATE:
07.10.2016
Responsibility of Creation and verification of Security Interest on CERSAI Website

Creation Verification
Udhbhav Branches Where branch is sanctioning Authority Branch Branch
Where Cluster Office is sanctioning Cluster Cluster
Authority
Classic Branches All Classic Branches Branch Branch
Mid-Large Corporate All Mid-Large Corporate Branches Branch Branch
Branches
Wherever security interest (charge) has been created, no loan shall be disbursed without completing
registration of security interest with Central Registry (CERSAI)
The details of registration (Security Interest ID, Asset ID and Date of registration with CERSAI) must
be updated on CRISMAC. Please refer circular no HO/RMD/12/2015-16/164 dated 27.05.2015
Prior to disbursement, branches must enter Security Interest ID obtained from CERSAI website in
SRMEXT menu of Finacle. Guidelines on SRMEXT have been issued vide circular no. HO/RMD/70
/2016-17/538 dated 22.09.2016
For any technical assistance for Central Registry web portal, branch may also contact on helpdesk of
Central Registry on mail id helpdesk@cersai.org.in and telephone numbers 011 – 26176847, 011 –
26176855 or 011 - 26176856
Credit Information Bureau (India) Limited (CIBIL)

Credit Information Bureau (India) Limited (CIBIL) is India's first Composite Credit
Information Bureau, a repository of information, catering to the Credit History of both
Consumers (Individuals) as well as Commercial (Other than Individual) Borrowers. It
was founded in August 2000
CIBIL collects and maintains records of an individual‘s payments pertaining to loans and
credit cards. These records are submitted to CIBIL by banks and other lenders, on a
monthly basis. This information is then used to create Credit Information Reports (CIR)
and credit scores which are provided to lenders in order to help evaluate and approve
loan applications.
CIBIL maintains separate Database for Consumer and Commercial Segments. CIBIL provides
Credit Information Reports (CIRs) as well as Scores for the Consumer Segment whereas in case
of Commercial Segment only Credit Information Reports (CIRs) are provided.
The following are two CIBIL Scores that are provided in case of individual borrowers under Consumer
Segment: (A) CIBIL Trans-Union Score Version 2.0 (B) CIBIL Personal Loan Score
CIBIL Score and interpretation Consumer (Individual) Trans-Union version 02
Score Interpretation Min Acceptable Score
-1 Individual has no trade & is not reported on the bureau. -1
Individual has no trades & has only been enquired upon
Individual has trades on bureau, but all have been closed 24
months prior to enquiry.
Individual has trades but none have been reported in the
last 24 months
1-5 Individual has no trades with performance history greater 3 to 5
than 6 months, hence a risk Index is returned. (respective sanctioning
Higher the index, lower the risk authority can consider
{Refer to annexure 1 of RMD circular no RMD-20/16-17/241 within their delegated
dated 30.06.2016} powers both for TU and
PL)
300- Greater than 6 months of performance history (last 24 567
900 months)
Higher the score, lower the risk
CIBIL Trans-Union Personal Loan or PL Score
Score Interpretation Minimum Acceptable
Score
-1 Borrowers with no eligible trades in the Bureau, only -1
enquired upon
There are no trades for borrower reported in last 24 months
Individual has trades on Bureau but all have been closed 24
months prior to the enquiry
300-900 1 month or more credit history 651
Higher the score, lower the risk
CIBIL MSME RANK: CMR-1 to CMR-10
The TransUnion CIBIL has launched CIBIL MSME Rank (CMR)– a credit risk rank for MSMEs.
CMR is developed specifically for MSMEs which are classified based on aggregate exposure
between Rs. 10 lakh to Rs. 10 Crore.
CMR provides a ranking to the MSME based on its credit history data on a scale of 1 to 10,
CMR-1 being the least risky MSME and CMR-10 being the most risky MSME.
CMR-1 represents ‘Lowest Risk of Default’ & CMR-10 represents ‘Highest Likelihood of Default or
in Default’.
Our Bank has subscribed for inclusion of CIBIL MSME Rank (CMR) in Commercial CIBIL report
for MSME borrower w.e.f. 01.08.2017.
The CMR has been included as additional feature/information in existing Commercial CIBIL
report.
To begin with, the CIBIL MSME Rank shall be used as indicative measure only and have not
been linked as threshold for entry level or as determining factor for delegated power/
sanctioning authority of a credit proposal.
However, in case of CMR-7 to CMR-10, the Sanctioning Authority shall endeavor to obtain
additional collateral security and Personal Guarantee for such credit proposals.
UTILIZATION OF CREDIT INFORMATION REPORTS (CIRs)

Mandatory for Both Fund and Non-Fund based advances
Fresh sanction
Enhancement of existing credit facilities
Review/ Renewal of credit facilities
Any type of Adhoc/additional credit facilities
Exempted Categories from CIBIL check:
All loan proposals of Staff Members under Staff or General Loan schemes.
All fully secured loans against Bank’s Deposit and Liquid Securities.
Overdrawing allowed by way of Over limit for a period not exceeding 30 days
Where required?
CIBIL Consumer CIR plus Score (both TU and PL Scores)
Credit facilities being sanctioned to Individuals.
Sole Proprietor/ Partner/Promoter Director/Directors/Guarantors etc. of the firm/company which is
being sanctioned credit facilities except in case of:
a. Directors on the Board of PSU borrowers who are generally public servants.
b. Nominee Directors
CIBIL Commercial CIR (Credit Information Report)
Credit facilities to other than individual (firms/companies).

The relationship of the promoter shall be further investigated including Sole Prop/Partner/ Prom.
Director/Directors/Guarantors etc. i.e., in their individual capacity, except in case of:
(i). Directors on the Board of PSU borrowers who are generally public servants.
(ii) Nominee Directors on the board of the companies
Dimensions of CIBIL
While scrutinizing the Credit Information Reports (CIRs), the following dimensions should also be
investigated besides cross checking the details provided by the borrower pertaining to dealings with
other banks/institutions, repayment track record, asset classification of loan accounts with other
banks etc in the loan proposal:
Too many Inquiries made by other lenders which can indicate that other lenders may have rejected
credit request.
Credit facilities availed by the borrower from other lenders which can indicate the leverage.
Credit facilities guaranteed by the customer which indicate his commitment level.
Suit filed against the borrower
CIBIL CHARGES
Consumer Segment
1. Consumer CIR along with Combo Score: Rs.61.56 rounded off toRs.62.00+Service Tax(as
applicable)
2. In case of non-availability of any Data / Report (NO MATCH FOUND) for a person under Consumer
Segment:Rs.33.00+Service Tax(as applicable)
Commercial Segment
1. Commercial CIR:Rs.700.00+Service Tax(as applicable)
2. No Charges are to be recovered in case of non-availability of any Data / Report (NO MATCH
FOUND) under Commercial Segment.
Waiver of CIBIL Charges for Priority Sector Loans up toRs.25000.00
No CIBIL Charges shall be recovered for credit facilities up toRs.25000.00 falling under Priority
Sector.
At the Branches, CIBIL Charges recovered from the Applicant / Borrower shall be credited to
Commission Received – CIBIL (A/C No XXXX0043450001) {P&L Code 2635} & at
Head Offce Monthly Charges shall be paid by debiting Charges General – CIBIL (A/C No
XXXX0087870001) {P&L Code 2390}
II
IMPORTANT CIRCULARS: CIBIL
Delegated Powers Please refer to HO/RMD/122/2016-17/1017 Annexure B (Booklet) dated
12.01.2017 on revised delegated powers for details
HO/ RMD/122/2016-17/1017-DATE: 12.01.2017: REVISION IN DELEGATED POWERS FOR LOANS &
ADVANCES
CIRCULAR NO. HO/RMD/97/2016-17/ 819/16 DATE: 02.12.2016: FREE ANNUAL CREDIT
REPORT TO INDIVIDUALS BY CREDIT INFORMATION COMPANIES
CIRCULAR NO. HO/ RMD/31/2017-18/ 355 DATE: 01.08.2017- INCLUSION OF CIBIL MSME
RANK (CMR) IN COMMERCIAL CIBIL REPORT FOR MSME BORROWER
Case Particulars Delegated Powers

1 Where the score is as under The respective sanctioning authority can consider the
TU SCORE: -1, 1-3 or 567 and credit proposals within their Delegated Powers
above
PL SCORE: -1, 651 & above PL
2 PL Score <651 but Respective Sanctioning Authority can consider the CIBIL
TU Score is acceptable score (Where credit history of >6M available}
(other than the credit card
defaults)
3 TU SCORE: < 567 and also Proposal falls under Sanctioning Authority
PL SCORE: < 651
BI/Cluster Head/CMLCC- Res S.A. after obtaining
HCB prior permission from next
higher authority.
(where credit history is > 6 M)
HLCC-GM/HLCC-ED/CAC- Respective S. Authority
MCB
Renewal/Review (without Respective S. Authority
enhancement)
4 Sanction of credit facilities 1. Fresh/ Review/Renewal at existing
where CIBIL reports reflect level/Adhoc/Additional/Enhancement: - respective
defaults sanctioning authority
2. Restructuring of limits (RSTR at existing level
of sanctioned exposure or restructuring with
On account of credit card additional fresh exposure)
transactions only (A) Account is Standard before RSTR:- Refer to Para
16.1, page 125 of Delegated Powers of Loans and
Advances cir dated 11.01.2017
(excluding Wilful default) /
(B) Account is SS before RSTR ref para 5-A.21 page
written off / settled/ Post WO
41 RMD 11.01.2017
Settled
5 SANCTION OF CREDIT Granting of additional/ enhancement / adhoc facilities
FACILITIES WHERE BORROWER’S Next higher authority in respect of proposals falling upto the
ACCOUNT IS CLASSIFIED AS NPA powers of HLCC-GM.
WITH OUR BANK However, HLCC-ED/CAC/MCB may consider within their
Delegated Powers.
(Refer to PARA 5-A.21 page Sanctioning Authority shall examine the viability aspect.
number 41 of RMD circular on
Delegated powers L&A dated
11.01.2017) Restructuring of limits
(Restructuring at existing level of sanctioned exposure or
restructuring with additional fresh exposure)
Next higher authority in respect of proposals falling upto the
powers of HLCC-GM.
However, HLCC-ED/CAC/MCB may consider within their
Delegated Powers.
6 Sanction of Credit Facilities 1. Fresh Exposure-HLCC-ED/CAC/MCB
where borrowers or their 2. Renewal/ Review at existing level: Next higher
associates appear in authority in respect of proposals falling upto the
powers of HLCC-GM. However, HLCC-
defaulter list/ caution list of ED/CAC/MCB may consider within their Delegated
the RBI, IBA, CIC (e.g.CIBIL), Powers.
ECGC, other banks /Financial 3. Granting of additional/
Institutions/ Government etc enhancement/adhoc facilities -HLCC-
ED/CAC/MCB
4. Restructuring of limits (Restructuring at
(Ref-Cir RMD –Delegation of existing level of sanctioned exposure or
powers 11.01.2017) restructuring with additional fresh exposure) -
Next higher authority in respect of proposals
falling upto the powers of HLCC-GM. However,
HLCC-ED/CAC/MCB may consider within their
Delegated Powers.
Abbreviations used by CIBIL for Asset SMA-Special Mentioned Account
Classification SUB-Sub-Standard
DBT-Doubtful
LSS-Loss
CIBIL-i-Scan
Circular number HO/CS&P/21/2016-17/310 dated 14/07/2016 and 322 dated 15/07/2016
CIBIL-I Scan-It is mandatory to generate information of customer for opening current (Other
than Individual Category) account through CIBIL-i-Scan
The login & password for Login to CIBIL-i-Scan is same as it is for existing login to CIBIL
commercial
CIBIL-iScan reports will be extracted by CASA back office where CASA back office are operational
and where CASA back office are not yet rolled out, until then same will be done by branches.
Charge Fee of Rs. 120 plus S. Tax where report is generated from the customer & obtain NOC
from existing FI, if any credit facility is being enjoyed by the customer, as per CIBIL-i-Scan
report. No charge if NIL report is generated. If the details of Bank/FI accounts are same as
mentioned in the current account opening form submitted by the customer, banks shall bear the
fee. Fee to be credited in account Communication Recd- CIBIL-i-Scan XXXX0043450002
without fail.
MSME CREDIT PRODUCTS OF BANK
1. Pradhan Mantri Mudra Yojna:
MUDRA Vision
To be an integrated financial and support services provider par excellence benchmarked with global best
practices and standards for the bottom of the pyramid universe for their comprehensive economic and
social development.
MUDRA Mission
To create an inclusive, sustainable and value based entrepreneurial culture, in collaboration with our
partner institutions in achieving economic success and financial security.
MUDRA :- Stands for The Micro Units Development and Refinance Agency Ltd (MUDRA)
OBJECTIVE:- To give special boost to bank finance on a mission mode. To fund the unfunded and to
bank the unbanked.
MUDRA CARD :- Corporation Bank is the first Bank to issue MUDRA Card under (on 04.07.15)
During 2015-16: - 5436 Crore disbursed against Target of 4011 to 23.43 lakh beneficiaries (PAN INDIA –
all banks).
Target for 2016-17:- (Disbursal) 7203 Crore (30 Lakh beneficiaries)
Composition of disbursal (2015-16):- Shishu - 40%, Kishore - 37%, Tarun - 23%
Reference: CIRCULAR No. HO/MSME/ 08 /2017-18/ 79 dated 29.04.2017
Purpose 1. Non-farm enterprises in Manufacturing, Trading and Services whose
credit needs for income generation up to Rs.10.00 Lakh.(Only MSEs
classified as per MSMED Act 2006)
2. Activities allied to agriculture such as pisciculture, beekeeping,
poultry, livestock rearing, grading, sorting, aggregation agro
industries, dairy, fishery, agriclinic and agribusiness centers, food &
agro-processing etc (excluding crop loans, land improvement
such as canals, irrigation, wells) and services supporting these,
which promote livelihood or are income generating.)
Note:- Instructions for financing allied agricultural activities to be followed as
circulated by Agri Business & FI Department from time to time.
3. Tractors & power tillers- As per MSME circular 1040 dated 20.03.2018
tractors and power tillers, irrespective of project cost, may be included as
eligible loans under PMMY from FY 2017-18 onwards up to Rs. 10 lakh
Eligibility 1. Individual, Proprietorship, Partnership firms, Limited Liability
Partnerships (LLPs), Private / Public Ltd. Cos. Or any other legal forms.
2. MUDRA loan may be extended on cluster basis in addition to existing
individual cases as at present.
Quantum of Up Rs. 10.00 Lacs.
Exposure The Loan shall be named as 'Shishu', 'Kishor' and 'Tarun' under as under:-
Shishu : loans upto Rs. 50,000/-
Kishor : loans above Rs. 50,000/- and upto Rs. 5.00 lakh
Tarun : loans above Rs. 5.00 lakh and upto Rs. 10 lakh
Nature of Facility TL, WC (FB/NFB), Composite Loan i.e. TL&WC

Classification of As per the RBI guidelines, the loans granted to such units will be eligible to
Advance be classified as priority sector advances under Micro and Small Enterprises,
provided they satisfy the provisions of MSMED Act, 2006.
For Agriculture and allied activities to be classified as Agriculture.
Credit Risk Rating Internal Rating is not required up to Rs. 10.00 lakh. (Ref. PMMY-65 dated
28.03.2018)
Acceptable Financial Current Ratio Minimum 1.10:1
Ratio Debt Equity Ratio Max 4:1
Leverage Ratio Max 6:1
DSCR Min 1.50:1
Balance Sheet Self attested Balance sheet / P&L to be obtained. (Subject to tax audit
guidelines)
Tax Audit guidelines Tax audit is exempted from 01.04.2017 (A.Y. 2018-19 and onward) in
Income Tax Act 1961- following cases:
2016 (i) In case of business-Turnover/Gross receipts not exceeding 2 crore
p.a. subject to profit assumed 8% or higher (6% or higher in case of
digital mode)
(ii) In case of professionals-Gross profit not exceeding 50 lakh p.a.
subject profit is assumed 50% or higher of gross receipts/sales.
(iii) In case of transporters-Profit is assumed Rs. 7500/- per vehicle per
month (not owing more than 10 goods vehicles)
Digital mode As per Income Tax guidelines digital modes means turnover or gross
receipts received by an account payee cheque or account payee bank draft
or use of electronic clearing system through a bank account during the
previous year.
Income Tax Returns If the borrower is not filling IT return then there is no requirement of
submission of any type of Income Tax return details. An undertaking from
the borrower shall be obtained and keep on record.
Repayment Period 7 years including moratorium period except agriculture advances.
Validity in case of All the business loan accounts up to ` 10.00 Lacs shall be sanctioned for a
working capital period of three years subject to annual review irrespective of the schemes.
(CIRCULAR No. For business loan accounts up to ` 50,000/- (Rs. Fifty thousand only) review
HO/MSME/27 /2017-18/460
Dated- 11.09.2017)
shall be undertaken by the respective sanctioning authority on a
consolidated basis i.e. all such loans taken together in a statement form as
per the prescribed format enclosed as Annexure-I
2. For business loan accounts more than ` 50,000/- and up to ` 10.00 Lacs
review format and request letter by the customer thereof is enclosed as
annexure- II & III respectively.
Delegated powers MUDRA Fresh/Renewal/Enhancement up to 10 lakh shall be
(refer to circular MCB,CAC,HLCC-ED, HLCC-GM
PMMY/65 dated
CMLCC, HCB/ Cluster Head 10 lakh
28.03.2018)
effective from B.I. (Udbhav/Classic/MCB(Classic)
01.04.2018 B.I. LCB, Mid Corporate(Udbhav), Shall not exercise powers under their
Mid Corp (New) Branches discretion
Group exposure norms for Udbhav At par with classic branches
Branches
In case of irregularities(if any) the delegated powers for
enhancement & power to decline the MUDRA cases will be as
under
Sanctioning Authority to decline the Authority for enhancement
Authority MUDRA proposal
Udbhav Branches CMH (Branch Business) Cluster Head (MSME)
Cluster Head CMH (respective cluster HLCC-GM of respective

MSME/RAG) vertical
Classic Branches CMH (Classic Branches) CMLCC-HCB
MCB (Classic)
CMLCC-HCB HLCC-GM of respective
Respective sanctioning vertical
authority
Head Office Respective sanctioning
authority
Stock Statement Yearly
Primary Security Hypothecation of assets created out of Bank’s Finance.
Collateral Security Guarantee Coverage under CGFMU/ CGTMSE. If account is eligible under
CGTMSE obtain CGTMSE coverage otherwise obtain CGFMU coverage.
However, it shall be ensured that only single guarantee cover is to be
obtained.
Guarantee Cover For obtaining coverage under CGFMU for PMMY loan, it is mandatory to feed
under CGFMU correct “Guarantee Cover Code” and Free Code ‘9’. The account having
incorrect MIS will disqualify the account for guarantee coverage under the
scheme CGFMU.
Correct MIS Code As such, Clusters/ Branches are advised to feed correct MIS of accounts
(refer to circular falling under PMMY. Note that account which shall have Guarantee Cover
PMMY/65 dated Code & Free Code ‘9’ as below shall be extracted from the system at HO
28.03.2018) level and will be sent to NCGTC for coverage. The Guarantee Fee shall be
effective from debited centrally by the Credit Guarantee Cell at Corporate Office, Gurgaon.
01.04.2018 CGTMSE Coverage
Particulars ACM (V Code to be Description of Purpose
option) entered Code
Guarantee Cover CGTSI/ Credit Guarantee For coverage
Code CGTNE Trust for Small under CGTMSE
Industries/ Credit
Guarantee trust
for north east
Free Code 9 N.A.
CGFMU coverage
Particulars ACM (V Code to be Description of Purpose
option) entered Code
Guarantee Cover Code MUDRA CGS PMMY For coverage
under CGFMU
Free Code 9 MUDRA PMMY For classification
under PMMY
For existing accounts: In addition to the above the field functionaries shall
be advised to fill the above details for obtaining CGFMU coverage in all
MUDRA accounts sanctioned on or after 08.04.2015.
AGF Guarantee Fee for PMMY loans under CGFMU having sanctioned limit up to
Rs. 5.00 lakh shall be borne by the Bank itself.
Upto Rs. 50000 (Shishu) 0%
Rs. 50000/- to 200000 10%
Above 2.00 Lakh to 5.00 Lakh 15%
Abover 5.00 Lakh to 10.00 Lakh 25%
Process Fee As per schedule of service charges circulated by RMD Department from time
to time.
Annexure attached Loan Application Form Process Note
with the circular Upto 50000 Anx. A Annexure C
(refer to circular > 0.50 L to 10 L Anx. B (w.e.f. 01.04.18)
PMMY/65 dated (including Auto Taxi/LCV/E Rickshaw )
28.03.2018)
effective from
01.04.2018
Udyog Aadhar Not mandatory. However, field functionaries are advised to explore the
Registration Number possibility for obtaining of Udhyog Adhaar Number.
Disposal of Upto 5 Lakhs 2 weeks
Applications (TAT) Above 5 L to 10 L 3 Weeks
Documentation As per Bank’s advance manual
Disbursement of Term Directly to equipment & other major suppliers, contractors, Architect etc.,
Loan Original Bills, Payment evidences shall be kept on records.
Insurance Insurance cover for the construction (excluding land), equipments, furniture
& fixtures/Current Assets to be obtained under ‘Agreed Bank Clause’.
However, sanctioning authority may consider waiver of insurance
at the specific request of the borrower justifying non insurance like
in perishable items (Fruits, Vegetables, Sweets, Milk & Milk
products etc).
Pre-Post Sanction Format of Pre- Sanction & Post- Sanction Visit report for Mudra/other business
Format loans upto ` 10.00 Lacs is annexed as Annexure- A & B respectively as per
CIRCULAR No. HO/MSME/28 /2017-18/459 Dated- 11.09.2017
OLS module MUDRA module has been created for processing of mudra loans under OLS
(refer to circular PMMY/65 dated 28.03.2018) effective from
01.04.2018
MUDRA CARD under “Issuance of MUDRA Card Under Pradhan Mantri” MUDRA Yojna
PMMY (PMMY)” for loans sanctioned upto Rs.1.00 lakh.
MUDRA card shall be issued to literate Individual & Proprietor only. Joint
account holders are not permitted.
Maximum composite loan shall not exceed Rs.1.00 Lakh.
Overdraft Facility:-
Loan Amount :- 20% of composite loan being Working Capital component
i.e. maximum `20,000/- as OD facility and can be withdrawn by MUDRA
Card.
Cheque Book Issue Facility:- Yes
Aadhaar Seeding Facility:- Yes, in case of individual/proprietorship
concern (Not mandatory)
Term Loan – TL701 (TL GENERAL-EI)
Over Draft – OD505 (OD – MUDRA CARD SCHEME)
The MUDRA card shall be issued in OD505 scheme.
MUDRA Card:-
Maximum limit of MUDRA Card shall be upto `20,000/-.
MUDRA Card shall work as Debit Card and shall be based on RuPay
Platform.
MUDRA Card will work on ATM’s/POS/E-Commerce.
MUDRA Card will be personalized.
The Field functionaries are advised to give wide publicity to “MUDRA Loan
Under PMMY” and issue maximum number of MUDRA Card to the eligible
micro/small entrepreneurs such as Hawkers, Small Vendors, Vegetable
Seller, Rickshaw Pullers etc. engaged in non-farm activity such as
Manufacturing, Trading and Services.
Note: The MUDRA Card (RuPay Debit Card) shall be issued to the
borrowers having composite loan maximum upto Rs. 1.00 lakh and OD Rs.
20,000/- only.
Operational aspect of (Ref. HO/MSME/10 dated 04.04.2018):
transfer of files from 1. Proposal which due for renewal up to 31.03.2018 shall be renewed at
MSME Cluster to Cluster level by 30.04.2018 and thereafter handed over to respective
Branches branch. And all other proposal to be handed over to branch by
15.04.2018.
2. MUDRA leads in OLS will be immediately handed over to the
branches immediately.
3. Documentation and disbursement formalities of cases sanctioned by
cluster till 31.03.2018 (but not disbursed) shall be done at branch
level.
CGFMU
Circular No. HO:Agribusiness & FI:52:2016-17:447:29th August, 2016 Credit Guarantee Fund
For Micro Units (CGFMU)- For Micro Loans under PMMY- with effect from 08.04.2015-“Micro Loan”
means any financial assistance by way of collateral free / third party guarantee free loan/limit (currently
Rs. 10 lakh), extended by the lending institution to the eligible borrower, as per the guidelines prescribed
by the Fund.
Under the aegis of Pradhan Mantri MUDRA Yojana, Overdraft facility of Rs.5,000/- sanctioned
under PMJDY accounts shall also be eligible to be covered under Credit guarantee Fund.
RATE OF INTEREST for MUDRA LOANS (refer to circular PMMY/65 dated 28.03.2018 effective
from 01.04.2018)
Loan Amount Covered under CGTMSE Covered under CGFMU

Up to 2.00 lakh MCLR MCLR
> 2.00 L to 10.00 L MCLR+1% MCLR+2.25%
Circular No. HO:Agribusiness & FI:70:2016-17:627Dt 19.10.16 Pursuant to various observations

on PMMY loans by RBI, certain instructions have been issued. Some of them are –(i) No Collateral
Security/ 3rd Party PG be obtained in MSE loans up to 10 Lakh (ii) CGS (Credit Guarantee Cover) be
obtained in all PMMY accounts (iii) Invoice/ Bills be obtained in all Loans to avoid misutilization/diversion
of funds
2. ORIENTAL BUSINESS LOAN SCHEME (OBLS)

Reference Base circular-Circular no. HO: Retail: 60:2014- 15:1008 dated 25.03.2015.
HO/MSME/ 2 /2016-17/575 dt. 04.10.2016; MSME/17-18/236 dated
28.06.2017
HO/MSME/31/17-18/550 dated 19.10.2017
HO/MSME/33/17-18/572 dated 13.10.2017
PURPOSE To provide hassle free credit to meet working capital requirements / augment long-term
margin /financing of fixed assets related to business activity or for expansion of
business to Traders, Manufacture and Service Enterprises (PS/NPS), Contractors
/Commission agents, and Authorized service centre /Service Sector viz. hotels, guest
houses, Call Centers, Film Industry etc., Loans to Professional & Self employed and
borrowers covered under all Priority Sector Schemes.
PURPOSE 1. For speculative & prohibited by Law purpose.
NOT 2. Advance shall not be granted for real estate/capital market/ investment in or for
COVERED giving loans to associate/group/sister concerns.
3. Loans to Builders/Property dealers/Real estate agents.
TYPE OF a) Overdraft limit for working capital purpose.
FACILITY b) Term Loan/Demand Loan to acquire fixed assets for general business purposes.
c) Non fund based limit for above a) & b) purposes.
ELIGIBILITY 1. Proprietorship, Registered Partnership firms, Private / Public Ltd. Cos.,
LLPs/Societies/Trusts engaged in business activity (Newly established units
are also eligible)
2. Business units established by close relatives* of existing customers with
satisfactory dealings (Newly established units are also eligible)
3. Business Unit should comply with applicable statutory requirements, such as
State/Central Sales Tax Registration Certificate, License under Shops & Commercial
Establishment Act, Registration with Excise Department, trade license etc.
4. The cash generation and repaying capacity of above said business establishment
shall be the primary criteria for considering term loan under the scheme.
PRIMARY Mortgage (Registered or Equitable) of immoveable property(s)/ factory land and
SECURITY building and /or any other property (Land & Building) standing in the name of
individual/joint owners/ promoters, viz. Proprietor/ Partners/Directors/close relatives*,
or business concern 100% owned by the owner / such close relatives who
will also stand as Guarantors.
The loan under the scheme shall be granted against self occupied property by its owner.
In case of let out properties, Clusters, CMLCC-HCB & Credit Committees at Head
Office is empowered to permit for accepting of such property as security.
Clusters/Branches shall not have any power for accepting let out properties.
Valuation of such property shall be on the basis of 11 years rental/lease or
RV, whichever is less.
Properties let out to our bank for premises shall be considered as self occupied.
Note: The Loan against agricultural land / plot of land shall not be granted. However,
in case of non agriculture plot is well bounded and minimum construction has been
done as per the requirement of local bodies/development authorities, it can be
considered as security under OBLS. The property for which clear title deed is available,
but the construction is not as per approved map plan or map is not available, subject
to property situated in approved area, In such cases, Loan can be granted
against such property by taking the realizable value of land only for
calculation of MPBF
Note:- The value of property should be excluding value of P&M, Furn. &
Fixure and sheds etc.
Extension of Cluster HEAD, CMLCC-HCB and Credit Committees at Head Office is
Charge empowered for permitting as under:
1. Property already mortgaged in any existing loan

account of owner can be extended for the loan to be
availed under OBLS. (VTL-150%)
{The property can be kept as security in the account of close relatives (as defined
above) or business concern 100% owned by the owner / such close relatives
who will also stand as Guarantors.)}
B. Property charged in OBLS account may be extended to cover other facility to the
extent of spill over available i.e. property value in excess of 200% of the limit (O/S
in case of term loan & sanctioned limit in case Overdraft- as per present
valuation) can be extended to cover other facility sanctioned to owner.
*Close Spouse, spouse’s parents, Father, Mother(including step mother),
Relatives Son(including step son), son’s wife, daughter (including step daughter),
daughter’s husband, Brother(including step brother), Brother’s wife,
Sister(including step sister), sister’s husband, Brother (including step
brother) of the spouse, Sister (including step sister) of the spouse
LOAN LIMIT Minimum-No limit prescribed, Maximum loan up-to Rs. 75.00 Crore
(including fund and non fund based limits)
ASSESSMENT 1. Working Capital Finance–60% of the RV of the property।
OF LIMIT OR
25% estimated annual non digital sales/income and 30% of digital sales.
Wherever the financial statement are available. However, if the party is not maintaining
proper financial statement, such as Commission Agents, Doctors and professionals etc.
then 4 times of annual income (subject to cash flow/repaying capacity) ,Whichever is
less)
2. Term loan: 60% of the RV of the property Or 75% of the assets to be created out
of term loan. Whichever is less?
Working capital finance and term loan together should not exceed 50% of the realizable
value of the property taken as collateral security.
3. Over-limit/ Adhoc: Can also be considered by respective sanctioning
authorities, subject to ensuring 40% margin on property.
RATE OF a) Normal – MCLR+2.25% on monthly rest, for loans up to 5.00 crore (> 5.00
INTEREST: Crore, RoI linked to category/Rating)
b) Penal interest – 2% over and above normal rate of interest will be charged on
irregular portion / amount and for the period of irregularity due to any reason.
c) Non Fund based facilities:- 25% concession in applicable charges subject to
minimum 15% cash (in existing cases concession applicable at the time of renewal)
Concession Authority Concession
in ROI MCB/CAC Full power
HLCC-ED 1.00%
HLCC-GM 0.50%
PERIOD OF a) Overdraft: {For business loans upto 10 lacs refer to CIRCULAR No.
LOAN HO/MSME/27 /2017-18/460 Dated- 11.09.2017) for > 10 lacs 12 months subject to
annual review.
b) Term Loan/Demand Loan: Maximum up-to 84 months including moratorium
period of maximum 3 months (depending on repayment capacity – Repayable on EMI
basis).
PROCESSIN 1. Working capital- Rs. 100.00 per lakh plus G.S.T..
G CHARGES 2. Term / Demand loan – Upfront fee of 0.50% of the loan amount plus G.S.T., if any.
Cash
50% concession by the respective sanctioning authorities. In case of existing cases,
Handling
concession can be considered before the renewal is due.
Charges
Pre-
(For Non-individual borrowers); If TL is prepaid by takeover 2% on O/s; WC adjusted by
payment
takeover- 1% on limit sanctioned.
charges
Free Code OB01
Process Use revised process note annexed with circular number- HO/MSME/31/17-18/550 dated
Note 19.10.2017 (for cases falling under all powers)
Documentati Limit Charge
on Charges Up to 5 Lakh NIL
> 5 lakh to 1 crore Rs. 2500+GST
> 1 crore Rs. 5000+GST
Rating On IMaCS model irrespective of amount
Pre-
By the Branch Incumbents-Classic / Cluster Officials
Sanction
Sanctioning As per Discretionary Power chart circulated by RMD.
Authority CMLCC-HCB-GM can consider loan amount up to Rs. 10.00 crore for SME
borrowers) within their respective delegated powers.
For others, the above-delegated power is for all business entities including entities
dealing in Gems & Jewellary. The delegated powers for software/IT enterprises/ call
centre/BPO shall be in line with delegated powers for gems and jewellary
EXCLUSIVE 1. The party shall exclusively deal with our Bank for all intent and business purpose. An
DEALING undertaking to this effect shall be obtained and kept on record.
CLAUSE 2. The OD account shall be monitored and ensured that minimum 75% of turnover
is being routed through the account. In case of non compliance, 1% penal
interest shall be charged over and above the normal rate of interest. The compliance
of this clause shall be ensured at the time of annual review/renewal of the account.
3. In case the loan is availed in shape of term loan, the concerned borrower shall also
maintain their operative account with us.
4. If the TL is for augmenting long term margin, the TL will be max. up-to 60% of RV of
the property.
Other 1. Stock statement shall not be insisted. Branch/ Cluster shall ensure end use of funds;
Conditions Party shall submit an undertaking to this effect.
2. Business entities engaged in Agriculture Activity can also avail OBLS.
3. Business entities engaged in Exports can also avail OBLS (but not as export finance)
4. No OBLS for purchase of Gold Bullion to Traders/Dealers in Gold
5. Property (Mortgaged) shall be visited at least once in a year.
6. If later on any defect is found in the property, same should be replaced with
suitable property or the facility should be liquidated within 12 months. If the defect
was not reported by the borrower and is of serious nature, 1% penal interest be
charged.
MSME Schemes ( Base Circular CAD26/15-16/261 Dated 26.06.2015 )

Amendments vide HO/CAD/15/2015-16/54 dated 01.06.2016
OBC MSME PLUS (amended vide MSME-773 15.11.16) &
OBC Doctor PLUS renamed as Oriental Sanjeevani (amended vide MSME-1120 18.02.17)
OBC MSME Vishesh, OBC MSME Tatkal, OBC MSME Contingency DL
OBC MSME Plus & OBC Doctor Plus
Parameter 3.MSME Plus 4.Oriental Sanjeevani

(earlier doctor plus)
Purpose It will replace the existing Scheme Financing Doctor/Paramedical Services-
“Financing MID Corporate Scheme” To set up/ Expansion new Nursing
HO/CAD 187 30.06.12 Home/Clinic/Infrastructure for
Medical
Tourism/Hospitals/Veterinary Hospital/
Path labs/Diagnostic Centre. To purchase
of office furniture/ equipments
including Vehicles, ambulances
and Implants / ambulance etc.
Takeover also permitted subject to
compliance of Takeover norms.
Eligibility Non-Individuals:- Prop, Part., LL P, Non-Individuals and Individuals:-
Pvt. /Pub Ltd Companies MSMEs, Enterprises including Individuals,
Existing & New Proprietorship, and Partnership firms,
{Not Eligible- Individual, NBFC, AoP, LLPs, Private Limited Companies
Real Estate} and Trusts, Societies engaged in
Existing customers can be considered providing
even before renewal of existing limit. medical/pathological/Veterinary/
Existing MSME+ accounts shall diagnostic services to the Society and
become ineligible If Rating falls below 5 with turnover up to 150.00 crore
Experience Conduct of account:- Account should (I) Individual (&Prop Firms):- Promoters
be standard regular for past 2 years in should have requisite qualification in any
Banking System and should not have branch of medical science from a
been restructured in the past 2 years. recognized University and should have
{not applicable for newly established minimum 2 years of work experience
units} Profitability: - Existing units having minimum qualification –
should have a Post Tax Profit for the MBBS/BDS(Dentist)/BHMS
immediate 2 preceding years. -BAMS/Veterinary/Physiotherapist
Further Post Graduate or diploma
qualification is mandatory for financing
of specialized equipment like CT SCAN,
MRI SCAN and PET Scan.
(II) All other entities:- Should have
valid license to conduct business by
Municipal / Local / Administration. For
medical equipments-2 years experience
and required approvals or
registrations from the statutory
authority and employ qualified
doctors
Internal Credit (Crore Rs.) Up to 50 Remarks Existing :- Min OBC 5 {where 2 years
Rating crore audited BS is available} & previous years
Existing OBC 5 Past 2 yrs minimum OBC6
New/ OBC4 New :- Min. GF 5
Takeover
Greenfield OBCGF4
Maximum 50 crore (FB+NFB) 25 Crore (FB+NFB)
Finance Irrespective of place of finance Area Hospitals Clinics
Rural 2.00 0.50
SU/ U 15.00 1.00
Metro 25.00 2.50
For indv.(& Prop) Having < 2 years
experience the limit shall be 50% subject
to max. 2 crore
If only WC required the limit shall be
20% of the limit ceiling centre wise.
Repayment {For business loans upto 10 lacs refer {For business loans upto 10 lacs refer
Period to CIRCULAR No. HO/MSME/27 to CIRCULAR No. HO/MSME/27 /2017-
/2017-18/460 Dated- 11.09.2017) 18/460 Dated- 11.09.2017)
for > 10 lacs
for > 10 lacs :
Working Capital- 12 months Working Capital- 12 months
Term Loan- 7 years Term Loan- 10 years (including max.
moratorium of 24 months. In case of
clinics/ Nursing Home/ Medical Centre
higher moratorium of 36 months may be
allowed –construction to start within 6
months & should be completed within
moratorium period)
Assessment As per General Loan Policy of the Bank Term Loan-assessment of TL shall be as
per policy of the Bank. In case of
construction of building ceiling limit is
max 65% centre wise & rest 35% for
other eligible purpose.
WC Limit is up to 10% of annual sale or
gross income, subject to 10% of ceiling
limit of centre in case of borrower
requiring both TL & WC-in the shape of
OD.
DSCR 1.50 : 1 1.25 : 1
(minimum)
Parameter MSME Plus Doctor Plus
Primary Security As per Banks loan policy norms Hypothecation of assets created out of
Bank finance & EM of immovable
property in case of construction/
renovation of L&B { Primary Security-
WDV of Immovable property and P&M
created out of Bank Finance}
Collateral At-least 50% coverage of i. Loans up to 10 lakh NIL (To be
Security (FB+NFB). covered under CGTMSE)
{RV of L&B be considered as collateral
ii. >10 lakh to 200 lakh:- 100% tangible
and/or liquid security-Bank
security or to be covered under
Deposits/Govt. Securities}.
CGTMSE/CGSSI
The extent of cash margin (in case of
iii. > 200 lakh:- Minimum 50%
non fund based limits) over and above
immovable/ liquid security
10%, shall be considered for
computation of collateral coverage. PG of Promoters/Directors/Trustees etc.
where advance is granted to Pvt. Ltd
Co., or Trust
Collateral means – unencumbered
immovable property, P&M and liquid
securities
Residual value of primary security over
150% of total loan amount can be
reckoned for collateral coverage.
Reckoning Actual residual value of Primary
Collateral security in the form of L&B (as per
Security latest valuation) mortgaged with the
bank over 150% of the total loan
amount can be reckoned for
collateral coverage
Guarantee cover Option of CGTMSE/PMMY/CGSSI may be
officered to the borrower where only
primary security is provided.
Margin As per Bank’s policy/Discretionary (i) For acquiring premises/
Chart/ Other guidelines issued from expansion/renovation/modernization of
time to time. existing premises- 25%
(ii) For on machinery/ vehicle
(ambulance-other vehicle)/ equipments
etc.- 15%
(iii) Working Capital (Clean)-NIL
Process Fee/ Entry level 50% concession, concession Process Fee/Upfront fee/Documentation
Upfront Fee will also continue in subsequent years if charges: 50% concession on applicable
scheme is covered under MSME (+) Process Fee/ Upfront fee
Concession in day to day charges such
as ABB, remittance, cheque book etc can
be considered by respective sanctioning
sanction authority. (MSME-29 05.04.17)
Cash Handling Charges- Sanctioning
Authority can waive max 50% on
selective basis
Guarantee and 25% concession { if Internal Rating --------

LC Commission:- ≥ OBC 4 or External Rating ≥ Top 3
Ratings } & where collateral
>150%, sanctioning authority can
allow up to 50% commission in
applicable BG/LC commission &
25% concession in Buyers Credit/
Letter of comfort commission.
(Subject to condition that cost of capital
to the bank is recovered.)
Scheme Code MSME Plus (Mfg) Code SM06 Scheme code TL686 or OD501
FC-10 MSME Plus (Service Except Hospitals) Free Code DC03
SS06
Parameter MSME Plus Oriental Sanjeevani (संजीवनी)
Rate of linked to collateral coverage For CGTMSE/ PMMY /CGSSI covered

Interest:- (Fresh coverage for New & Existing) cases
Collateral Up to 10 > 10 crore As per respective Guarantee
Coverage crore to 50 crore cover
50% to 75% 1Y-MCLR+2.00 1Y-MCLR+2.25 RoI linked to Security coverage
(1 Y MCLR plus..)
>75% to 1Y-MCLR+1.75 1Y-MCLR+2.00 Coll. Coverage Upto > 10 L to
100% 10 L 25 L
50% to 75% +2.00 +2.25
>100% 1Y-MCLR+1.25 1Y-MCLR+1.75 > 75% to 100% +1.75 +2.00
>150% 1Y-MCLR+1.00 1Y-MCLR+1.50 > 100% to +1.25 +1.75
150%
> 150% +1.00 +1.50
External Upto 5 Crore:- endeavor should be made External rating to be obtained from
Rating to get the account SME external rated and any of the approved rating agency for
if the rating is up-to MSE 4, concession in limits above 10 crore. Rating to be
ROI of 0.25% may be given. {NSIC also assigned to any of the approved
agency prior to release of the facility
bear the rating fee to the extent of 75%
and to be obtained within 3 months
for SME rating from SMERA}
otherwise penal interest be recovered.
Above 5 Crore to 10 Crore:- External
rating is not mandatory for cases above 5
crore to 10 Crore. However if external
rating is obtained and it is “A”, concession
in ROI upto 0.25% is applicable (Ref
MSME-327 dated 19.07.2017)
Current Ratio (A) 1.17:1 (up-to 5 Crore); 1.25:1 ( > 5 (A) 1.17:1 (up-to 5 Crore); 1.25:1 (
(For WC Crore) > 5 Crore)
limits) (B) 1.10:1 (upto 5 Cr); 1.17:1 (>5Cr) if (B) 1.10:1 (upto 5 Cr); 1.17:1 (>5Cr)
collateral coverage is >100% if collateral coverage is >100%
{As per latest ABS, latest Statutory Auditor’s
certified Provisional BS-for existing and new
borrowers, in case of first year operation. If
Fin. Ratios remains below benchmarks, after
obtaining latest ABS after sanction, applicable
RoI as per conventional loan policy is to be
charged ab-initio, besides all other type of
concessions permitted under the scheme shall
be withdrawn ab-initio.
Other Parameters (common)
Exclusive To deal exclusively with the Bank. Existing customers if availed TL/Channel finance
Clause from other Banks will continue but new loans only after NOC from the Bank to continue
availment of concessions under the scheme.
Credit Report Credit Report from any of the CIBIL, EQUIFAX, and EXPERIAN etc should be within
benchmark
Acceptable F. {as per latest audited balance sheet, SA certified- Provisional Balance Sheet
Ratios (for existing borrowers only)}
Debt Equity 3:1
Ratio
Leverage 4:1
Ratio
Deviation HLCC-ED HLCC-ED
Concession in CAC >1%* (Sub to min. CAC >1%* (Sub to min.
ROI (Cir- 1YMCLR) 1YMCLR)
MSME-075 dt HLCC-ED 1% HLCC-ED 1%
28.03.18) HLCC-GM 0.50% HLCC-GM 0.50%
TEV Study As applicable {up-to 10 crore- if required by the BM, Required in all cases
>10 to 300 Crore- mandatory by internal or where project cost is
external agency} As per RMD Circular 01.09.15 Real above 10 crore (Oriental
Estate, Hotels, Hospitals, Educational Institutions have Sanjeevani)
also been included under the Scope of TEV study
Concession in ABB, Remittance, Cash Handling, Chq book issue charges etc)-may be permitted as per
charges delegated powers
Discretionary { Please refer to HO/RMD/122/2016-17/1017 Annexure B (Booklet) dated 12.01.2017
Power- on revised delegated powers} except mid corporate classic branch no other branch has
takeover powers in case of Oriental Sanjeevani (संजीवनी) Scheme.
Note:- For Details please refer to the latest/ extant guidelines of the Bank as issued from time
to time
Mid Corporate:-Borrower account having full year turnover of up to Rs. 250 Crore
(estimated/projected in case of project under implementation). Priority Sector Advances (including Rice
Sheller, Food Processing, Renewal Energy, Social Infrastructure, MFIs falling under PS), MSME advances
including Non PS which otherwise falls under RAM.
Large Corporate: - Borrower account having full year turnover of > Rs. 250 Crore
(estimated/projected in case of project under implementation). Advances to infrastructure Projects
(Power, Conventional & Non Conventional, Port, Road and Highways, Communication, Social and
Commercial infrastructure, Energy etc)
OBC MSME- Vishesh TATKAL Contingency DL

(.वशेष) (तKकाल) (आकि@मक मांग ऋण)
Facility Auto increase for MSME Working Capital Limit Demand Loan-For MSME
(Medium & Small) Borrowers borrowers
(from beginning of the FY)
Purpose On the spot additional On the spot additional To meet future CAPEX
Financial Assistance Financial Assistance requirement
Eligibility Only for existing MSME Min. 2 yrs Satisfactory Borrower who
PLUS Borrowers where- (Standard) conduct in qualify MSME
Min. 2 yrs Satisfactory Banking System & schematic
(Standard) conduct profit making compliance
No restructuring Min. 2 yrs Satisfactory
Minimum 85% (Standard) conduct in
achievement of estimated Banking System &
sales on the basis of 2 years profit making
which OBC-MSME Plus No restructuring done
was assessed after in the past
satisfactory evidence of %
achievement by way of At the time of
VAT or CA certified regular-
Provisional Financials. sanction/renewal
Medium and small
enterprises only
Eligible Amount 25% of WC facility separately 15% of existing WC Up to 15% of cost in P&M
for FB and NFB or 50% of facility separately for (Gross Block) as per latest
eligible limit on enhanced FB and NFB, audited balance sheet
portion of projected maximum 3.00 crore. subject to max 1.50 crore
Turnover, whichever less.
Discretionary { Please refer to HO/RMD/122/2016-17/1017 Annexure B (Booklet) dated
Powers- 12.01.2017 on revised delegated powers}
ROI- 0.50% over and above of 1.00% over and 1.00% over and above of
existing ROI till regular limit is above of existing ROI existing ROI till regular
sanctioned sanction of TL
Period of Max 6 months or up-to the Max. 90 days (3 times Max. 12 months and it
facility- date of regular enhancement in a FY, max. 180 shall be converted into
whichever earlier days & gap of 15 regular within 12 months.
days in each This facility should be
availment) adjusted by sanction of
regular TL Actual
repayment will be fixed
when the regular TL is
sanctioned depending on
the cash flows of the firm.
Due diligence/ As per policy As per policy (Along As applicable in case of DL
Documentation:- with sanction i.e.
DOC 13 etc)
Process Fee- NIL NIL NIL
Turn Around Max. 15 working days from 3 days after receipt of

Time date of receipt of complete complete proposal
proposal
Security Extension of charge Charge over assets being
over existing created out of Bank
securities Finance and extension of
charge on existing assets
Other Condition This facility shall be covered Borrower can enjoy as applicable or already
with DP either Adhoc or Tatkal stipulated in existing TL
(VAT Returns/ Financials at a time, other
certified by auditors) conditions as per
existing guidelines
Scheme SM06V & SS06V SM06T & SS06T CL20
Code(FC10)
5 OBC Turant Demand Loan

Reference No. HO/CAD/84/72015-16/ 781 DATE:28.12.2015
Facility Demand loan for All existing Borrowers having Investment in Plant & Machinery up to
Rs. 100 Crores. (Borrowers which are not covered under MSME Plus scheme are also
eligible).
Purpose To meet future emergency capex requirement of the unit towards debottlenecking/
breakdown etc. to cater the immediate needs (Manuf-acturing Sector). For New
Machinery/Equipment’s only.
Eligibility Entry Level Internal rating Minimum OBC- 4 (based on Latest ABS)
Entry Level External rating Minimum BBB.
Minimum 2 Year satisfactory (Standard) conduct of account & accounts should
not have been restructured & in profit for 3 years.
Account should be with us under Sole Banking or Multiple Banking
arrangement.
The facility of OBC-TDL must be incorporated in sanction/process note at the
time of regular sanction of renewal/review of existing facility, to enable the
borrower to avail the facility at any point of time during the validity of sanction.
In case of project loans, the facility shall only be considered for projects which
have achieved COD and OBC-TDL will not be granted to projects under
implementation.
Eligible Up to 10% of the original investment cost in P& M (Gross Block value) as per latest
Amount: audited Balance sheet with max. cap of Loan up to Rs. 5.00crore
ROI 1.00% over & above existing Interest rate of fund based facility shall be charged till
regular sanction of Term loan.
Security Exclusive Charge over Assets to be created out of bank finance & extension of charge
on existing Securities.
Margin As applicable based on sanction terms and Margin shall be taken upfront to the
disbursement of facility.
Validity of OBC- Max. 12 months, within which it will be converted into regular Term loan. This
TDL / Demand loan to be adjusted by disbursement of regular Term loan/Demand Loan.
Repayment Actual repayment will be fixed when regular Term loan is sanctioned depending upon
cash flow.
One year’s period of OBC-TDL shall be accounted for in Door to Door Tenor for the
fresh regular term Loans which will be sanctioned in lieu of OBC-TDL.
Interest to be served as and when due during 12 Months period of OBC-TDL.
Requirement OBC-TDL will be based on document evidencing/ justifying the contingency and
for OBC-TDL quotations/Original bills of the assets created out of the loan shall be obtained and
kept along with loaning documents.
OBC Turant DL..
Delegated { Please refer to HO/RMD/122/2016-17/1017 Annexure B (Booklet) dated 12.01.2017
Powers on revised delegated powers}
Process/Upfron Nil. However Applicable upfront fee shall be recovered at the time of sanction of
t Fee Regular Term Loan.
Documentation Demand loan documents for OBC Turant Demand Loan shall be executed at the
s time of fresh sanction / review of facilities.
Turnaround - Maximum 2 working days from the date of receipt of information from the borrower
time i.e. Quotation of required equipment/ machinery & justification.
Brief Office note shall be prepared by Branch with proper justification of OBC-TDL,
Details of Margin contribution etc.
Free Code 10 DL02 and Scheme shall be opened under DL 801 (Cir CAD-887 08.02.16)
Oriental SME Development Scheme

Reference: - CIRCULAR NO.: HO/CAD/ 26 /2011-12/139 DATED : May 26, 2011
6. ORIENTAL SME DEVELOPMENT SCHEME-To support our SME customers to
get immediate finance for their urgent needs.
Eligibility Proprietorship, Partnership firms, Private / Public Ltd. Cos., falling within the
definition of SME as per MSMED Act.
Business unit should have been established in their line of business minimum for
3 years and profit making concern.
Entry level rating should be minimum IMACS 5
CIBIL report to be obtained /generated and branch to ensure that the same is
satisfactory as per bank guidelines.
Purpose To provide hassle free credit to SME’s for purchase of machinery/equipments, to
meet the cost of preliminary expenses related to business activity of the borrower, to
meet cost of setting up R& D facility, marketing and advertisement expenses.
Nature of FacilityTerm Loan to be repaid in 60 months exclusive of moratorium. Interest to be repaid
as and when due.
Moratorium Maximum 12 months as per the requirement of the borrower.
Size of Loan Minimum Rs 10.00 Lakh , Maximum Rs 250.00 lakh
Permissible In shape of Term Loan: 50% of unencumbered value of property under offer or 75%
Bank Finance of actual requirement whichever is less.
Margin As above in case of term loan.
Security Primary – Assets created out of the loan. (In case the facility is clean, then loan may
be sanctioned under the powers of Regional Head). However, if the facility is clean,
the maximum loan shall be capped at Rs. 100.00 lac.
Collateral-Mortgage (Registered or Equitable) of factory land and building and / or
. any other property (Land & Building but not agriculture land/plot of land/ partially
constructed property) belonging to promoters or in the name of Guarantors, viz.
Proprietor/ Partners/Directors/or in the name of the firm/company or Guarantor.
Personal guarantee of directors and owners of property offered as collateral security.
Note: Before sanction of any loan verification of property about its clear, marketable,
enforceable title must be undertaken by the Branch Head/ Credit In-charge and kept
on record. Extant guidelines about valuations of Property, title clearance and
Inspection by branch to be strictly adhered to.
Upfront fee 0.50 % of the loan amount in case of term loan.
Rate of 1Y-MCLR+2.00% for limits up to Rs 25.00 lakh and as per rating for SME accounts
Interest above Rs 25.00 lakh.
Review / {For business loans upto 10 lacs refer to CIRCULAR No. HO/MSME/27 /2017-
Renewal 18/460 Dated- 11.09.2017) for > 10 lacs Annual
Sanctioning { Please refer to HO/RMD/122/2016-17/1017 Annexure B (Booklet) dated
Authority 12.01.2017 on revised delegated powers}
Other Loan to be assessed as per the cash flow of the firm/Company
conditions Average DSCR should not be less than 1.25
Loan is to use for productive purpose only and a CA certificate for the end use of
fund to be obtained.
KYC norms to be complied with and due diligence of the borrower/account to be
carried out at the branch including pre & post sanction visit.
Comprehensive Insurance as per bank’s policy to be obtained from the Oriental
Insurance Co. Limited.
Ancillary Business of the borrower/Group to be tapped.
Borrower or any sister concern should not be defaulter to any bank/Financial
institution
Documents to be obtained as per advances manual of the bank.
Rating as per the applicable risk rating model to be done in all cases irrespective
of the amount of loan.
CASES NOT COVERED UNDER THE SCHEME MAY BE CONSIDERED OUTSIDE THE
SCHEME UNDER NORMAL LENDING POLICY OF THE BANK.
7. ORIENTAL SME TRANSPORT SCHEME

For existing SME units who need vehicle for delivering products/services to their
clients
Eligibility All existing Proprietorship, Partnership firms, Private / Public Ltd. Cos., falling
within the definition of SME as per MSMED Act.
Business unit should have been established in their line of business for minimum
for 1 year and profit making concern.
Entry level rating should be minimum ImaCS-5
Purpose To purchase transport vehicles for delivery of products/Services; to Educational
institutions and Medical units/hospitals for providing transportation to
students/faculty/staff/medical vans are also eligible. Only new vehicles are to be
financed.
Nature of FacilityTerm Loan to be repaid in 60 EMI’s exclusive of moratorium.
Moratorium Maximum 3 months as per the requirement of the borrower. Interest to be serviced
during moratorium.
Size of Loan Maximum limit per borrower Rs 100.00 lac
Permissible Chassis +Body Building costs + registration + insurance + road tax+ AMC etc.
Bank Finance
Margin 25% of the cost of vehicle on road
Security Hyp of vehicle purchased out of the proceeds. Bank’s name to be entered into
registration certificate.
Coverage is to be taken from CGTMSE or otherwise tangible collateral to the
extent of 50% of the loan amount to be taken above loan of Rs 5.00 lakh.
Personal guarantee of directors and owners of tangible securities, wherever
applicable to be obtained.
Upfront fee 0.50% of the loan amount.
Renewal 18/460 Dated- 11.09.2017) for > 10 Annual
Sanctioning { Please refer to HO/RMD/122/2016-17/1017 Annexure B (Booklet) dated 12.01.2017
Authority on revised delegated powers}
Other Loan to be assessed as per the cash flow of the firm/Company
conditions Average DSCR should not be less than 1.25
Comprehensive insurance policy to be obtained with bank’s clause as per Bank’s
policy.
Bank’s name as charge holder to be got entered in the books of the RTO and also
in the RC.
Disbursement to be made directly to the supplier.
Copy of RC book/permit/insurance to be kept on bank record.
Vehicle to bear prominently ‘Hyp to Oriental Bank of Commerce Branch ---“.
carried including pre sanction visit.
institution
Documentation to be done as per Advances Manual.
Post disbursal inspection to be carried out from time to time
CASES NOT COVERED UNDER THE SCHEME MAY BE CONSIDERED OUTSIDE THE
SCHEME UNDER NORMAL LENDING POLICY OF THE BANK.
8. ORIENTAL SME CONTRACTOR SCHEME

Eligibility Proprietorship, Partnership firms, Private / Public Ltd. Cos., falling within the
definition of SME as per MSMED Act in the work as civil contractor/Mining
Contractor/Engineering contractor/Transport contractor/Cargo Handling Agency
Business unit should have been established in their line of business for
minimum for 3 year and profit making concern.
Entry level rating should be minimum ImaCS-5
Purpose For meeting working capital needs.
Nature of Facility Fund based/ Non fund based working capital limits
Size of Loan Maximum limit per borrower Rs 250 lakh.
Permissible 30% of last two years average turnover by way of working capital facilities of which
Bank Finance cash credit facility shall not be more than one third. The balance by way of non-
fund facilities.
Margin 20% for both fund based and non fund based.
Security First charge over all the assets of the borrower created out of the loan.
Suitable tangible collateral to be taken to maintain asset coverage of 1.50.
Personal guarantee of directors and owners of collateral securities wherever
applicable.
Process fee Processing fee @ Rs. 100 per lac to be charged where ever applicable.
Rate of Interest 1Y-MCLR+2.00% for limits up to Rs 25.00 lakh and as per rating for SME accounts
above Rs 25.00 lakh.
Sanctioning { Please refer to HO/RMD/122/2016-17/1017 Annexure B (Booklet) dated
Authority 12.01.2017 on revised delegated powers}
Review/ {For business loans upto 10 lacs refer to CIRCULAR No. HO/MSME/27 /2017-
appraisal Loan to be assessed as per the cash flow of the firm/Company and
disbursement to be allowed based on DP calculated based on Book Debts
statement to be submitted every month.
Comprehensive insurance policy of the assets of the borrower to be obtained
with bank’s clause.
Audited balance sheet of the borrower to be obtained and ensured that
sufficient margin is available.
KYC norms to be complied with and due diligence of the borrower/account to
be carried including pre & post sanction visits.
Satisfactory CIBIL report to be obtained /generated.
institution
Documentation to be done as per advances manual.
CASES NOT COVERED UNDER THE SCHEME MAY BE CONSIDERED OUTSIDE
THE SCHEME UNDER NORMAL LENDING POLICY OF THE BANK.
9. ORIENTAL EQUIPMENT LOAN SCHEME
Eligibility Existing Proprietorship, Partnership firms, Private / Public Ltd. Cos.
Business unit should have been established in their line of business for minimum
for 3 year and profit making concern.
Entry level rating should be minimum ImaCS 5
Purpose Financing Cost of acquisition of new equipments
Cost of alterations to existing machinery
Service and adopting measures for enhancement of energy
efficiency/conservation of energy.
Nature of FacilityTerm Loan
Size of Loan Up to 80% of the total Equipment cost, subject to maximum of Rs 500 lac.
Margin 20%
Security First charge over assets created out of the loan.
Account to be covered under CGTSME Scheme wherever applicable. In case
advance is not covered under the scheme suitable collateral security to be
obtained.
Personal Guarantees of the Directors & owners of the securities wherever
applicable.
Upfront fee 0.50% of the loan amount.
Sanctioning { Please refer to HO/RMD/122/2016-17/1017 Annexure B (Booklet) dated 12.01.2017
Authority on revised delegated powers}
Appraisal and Loan to be assessed as per the cash flow of the firm/Company/DSCR
conditions Repayment period of the loan to be maximum 5 years including moratorium.
Average DSCR should not be less than 1.25
Disbursement to be made directly to the supplier.
Comprehensive insurance policy of the assets of the borrower to be obtained with
bank’s clause.
Audited balance sheet of the borrower to be obtained and ensured that sufficient
margin is available.
carried including pre& post sanction visit.
Credit Report from existing banks of the firm/Company and its associate/sister
/group concern to be obtained.
Terms and conditions of CGTSME to be complied wherever applicable.
institution.
Documentation to be done as per advances manual.
CASES NOT COVERED UNDER THE SCHEME MAY BE CONSIDERED OUTSIDE
THE SCHEME UNDER NORMAL LENDING POLICY OF THE BANK.
10. ORIENTAL SCHEME FOR LOANS TO PROFESSIONALS

Purpose For investment in equipment (original cost excluding land & building and furniture, fittings and
other items not directly related to the services rendered) does not exceed Rs. 2 Crore.
Eligibility Professionals holding a degree/diploma or who in the opinion of the Bank are technically qualified
Criteria or possesses skills in the respective field like registered practicing lawyers, Architects, Chartered
Accountants, Chartered Engineers, Journalists, Management Consultants, Software Engineers etc.
Individuals, joint borrowers, proprietorship & partnership firms and Companies
Loan Maximum Term Loan: Rs. 20.00 Lakh
Amount
Margin 25% of the assets financed
Loan up-to Rs. 50000 1 YEAR MCLR +1.75%
Rate of Loan above Rs. 50000 & up-to Rs. 2.00 Lac 1 YEAR MCLR +2.00%
Interest Above Rs. 2 lac to Rs. 20.00 Lakh 1 YEAR MCLR +2.25%
(floating) Note: Interest rates on Housing/Car & Vehicle loans shall be charged as per the rates applicable in
respective scheme. 0.25% concession to women beneficiaries.
Process fee 0.50% of the total limit sanctioned subject to minimum of Rs. 500/-.
Hypothecation of assets purchased/Mortgage of premises, if purchased.
• Loans Up to Rs. 5 Lac: 50% of loan amount in the shape of collateral security and one
personal guarantee, preferably of spouse
• For Loans above Rs. 5 Lac: 75% of loan amount both in the shape of collateral
Security
security and one personal guarantee, preferably of spouse.
• In case the loan is required only for acquiring premises, no additional collateral security
shall be insisted.
• For purchase of car/vehicle security norms shall be as per car/vehicle loan scheme.
Repayment Maximum 84 months including moratorium period not exceeding 6 months.
11.ORIENTAL SCHEME FOR FINANCING AUTOS / TAXIS / SMALL CARGO VEHICLES

{as amended vide HO/MSME/11/1014 dated 12.01.2017}
To acquire Autos, Taxis, E-Rickshaws/ Small Commercial Vehicles, Cargo Vehicles etc (2/3/4
wheelers) operating on any kind of energy which is permitted by state/ local authorities.
Purpose For Individuals & purchase of one
Valid Driving License
vehicle
Valid Driving License with Minimum experience of 3
For purchase of More than one vehicle
years
Eligibility Individual, partnership, LLPs, sole proprietorship, private Ltd. / Public Ltd. Companies are all
eligible.
Note: The borrower shall obtain valid permit to ply the vehicle as per applicable rules of Regional
Transport Officer (R.T.O).State Transport Department/ Appropriate Local Authorities.
Loan 85% of On Road price (As per pro-forma invoice). Up to Rs. 10.00 lakh per vehicle subject to
Amount aggregate maximum limit of Rs. 50 lakh.
No. of Up to 10 (ten) vehicles per entity irrespective of it being an individual, partnership, sole
vehicles proprietorship, LLP, private Ltd./ Public Ltd. Companies.
Classificati Under micro/small or medium (Service) as per MSME Act 2006 ( on the basis of investment in
on equipment)
Security Hypothecation of Auto/Taxi/ Small Cargo Vehicle to be purchased from Bank’s Finance.
clause (The hypothecation clause shall be registered with RTO)
Loan up to Rs. 10.00 L No Collateral Security, Mandatory CGTMSE Guarantee Coverage
Collateral
Security Loan amount > Rs. 10.00 L 100% tangible collateral Security in the shape of
Immovable/liquid security or CGTMSE Guarantee coverage
Margin 15% of the On-Road price of the vehicle(s).
Rate of Loan Limit For all types (including CGTMSE covered cases)
Interest Loan up to Rs. 2.00 L 1 YEAR MCLR
> Rs. 2 L to Rs. 25.00 L 1 YEAR MCLR+1.00%
> Rs. 25 L to Credit Rating 1 1 YEAR MCLR+0.50%
Rs. 0.50 Cr. Credit Rating 2 1 YEAR MCLR+1.00%
Credit Rating 3 1 YEAR MCLR+1.50%
Penal In case of delayed payment, a penalty of 2% on the overdue amount for the overdue period shall
Interest be charged.
{upto 5.00 Lakh NIL} above 5 Lakh as under:-
Process Fee
0.50% of loan amount with a minimum of Rs. 500/ + G.S.T., if any.
Limit Amount
Documenta Up to Rs. 2.00 Lakh NIL
tion 2 Lakh to 10.00 Lakh 2500/-
charges 10.00 Lakh to 25.00 Lakh 2500/-
25.00 Lakh to 50.00 Lakh 10000/-
60 months including moratorium period of 3 months. Servicing of interest during moratorium period
Repayment
is compulsory.
Check
Line of business, experience, driving history, invoice of dealer/vendor, inspection of vehicle.
points
12. ORIENTAL SCHEME FOR BEAUTY PARLOURS / BOUTIQUES / SALOONS / TAILORING BY WOMEN
Propose To develop entrepreneur-ship among women and also to ensure the easy, timely and
convenient access to women to institutional credit.
Nature of facility Term loan
For the purchase of tools/equipment/furniture & fixture, shop etc.
Working capital
For running day to day expenses of business
Applicant’s 1. Proprietary concerns of women
Eligibility 2. Partnership firms, where majority partners are women
3. Companies, where majority of promoters shares are held by women
Margin Up to Rs. 10.00 Lakh; Out of which WC not to exceed Rs. 5.00 Lakh
Loan up to Rs. 25,000/- Nil
Above Rs. 25,000/- & up to Rs. 2.00 Lakh 15%
Above Rs. 2.00 Lakh & up to Rs. 10.00 Lakh 25%
In case of purchase of shop the margin will be 25% irrespective of loan limit.
Loan Amount Up to Rs. 10 lakh of which WC Max. 5 lakh
Rate of interest Loan Limit Normal ROI If covered under CGTSME
(floating) Loan up to Rs. 50000/- 1 YEAR MCLR +1.75% 1 YEAR MCLR
Loan above Rs. 50000/- & up 1 YEAR MCLR +2.00% 1 YEAR MCLR
to Rs. 2.00 Lakh
Above Rs. 2.00 Lakh & up to 1 YEAR MCLR +2.25% 1 YEAR MCLR+1.00%
Rs. 10.00 Lakh
Penal Interest Penal interest @ 2% p.a. over and above the normal lending interest rate shall be charged
on irregular portion & for the period of irregularity.
Process fee 0.50% of the loan amount with a minimum of Rs. 500/-.
Security Primary: Charge over the assets (movable & immovable) purchased out of Bank’s finance.
Collateral
• Up to Rs. 2.00 Lakh – NIL
• Above Rs. 2.00 Lakh- Tangible collateral security up to 100% of loan value.
Repayment For Term Loan- the repayment period is 5 to 7 years with maximum moratorium of 3 to 6
months. {WC-For business loans upto 10 lacs refer to CIRCULAR No.
HO/MSME/27 /2017-18/460 Dated- 11.09.2017)
Prepayment NIL
Penalty
13. Oriental Uttam Vyapari Scheme

Purpose 1. WC, 2. WC and TL or 3. Term Loan (Acquiring
Premises/repair/renovation/machinery/equipments/furnishing/up to 2 commercial
vehicles/equipments etc) {not for acquiring land}
Eligibility *Existing as well as new (if existing-should be in profit, if new should be in business for 1
year)
*Traders (individuals, firms, companies, co-operative societies, dealing in trading activities,)
*Small business concerns / agencies providing services
Loan Limit Metro and Urban 100 lakh, SU and Rural 50 lakh
Types of facilities WC-30% on Digital Txn and 25% on Non-Digital Txns on turnover basis, Minimum Margin
5%,
TL-75% of cost of assets (or premises for business) acquired in case of Term Loan.
In case of petty /small businessmen, Term Loan for WC up to Rs 10.00 Lakh repayable
in max 7 years on the basis of his genuine business requirement, where the borrower is
unable to furnish the financial papers.(Applicable cases be covered under PMMY)
Margin 20% on stock and 40% on Book Debts
25% on purchase of shops/ Office premises, equipments etc
Security Loans up to 10 lakh to be covered under MUDRA
Small and Micro MSME without collateral and 3rd party Guarantee)- to be covered under
CGTMSE: Hypothecation of Assets created out of Bank Finance
Retail Traders not covered under CGTMSE:-Hypothecation of Assets created out of Bank
Finance, Collateral waived.
Above 10 lakh to 25 lakh
Primary:- Hypothecation of Assets created out of Bank Finance
Collateral security:- NSCs, FDR, CDR, LIC (SV) or any other tangible security with
realizable value at least equivalent to 50% of total exposure along with one personal
guarantee of adequate net worth acceptable to the Bank. (Where there is no CGTMSE
Coverage) OR
Equitable mortgage:- of immovable property having realizable value at least equivalent
to 100% of the total exposure
Above 25 lakh
Primary:- Hypothecation of Assets created out of Bank Finance
Collateral security:- (where CGTMSE cover is not obtained) EM of immovable property
having RV >=100% of the total exposure
Note:- In case of purchase of Shop / Office premises – Its mortgage is mandatory No
additional collateral security is required, if the total loan limit is < the value of purchase of
land and building.
Note:- in case of exclusive TL for purchase of premises/commercial building-no collateral
be insisted upon
Financial Up to a limit of Rs 2.00 Lakh, no financial statements will be required except statements of
Statements sales, purchases, gross profits, overheads and net profit duly signed by the borrower.
(However VAT to be obtained wherever applicable). Above 2 lakh Fin Stm as usual.
Repayment Term Loan: 3 to 10 years inclusive of max. Moratorium pd of 6 months, if required.
Working Capital:- {For business loans upto 10 lacs refer to CIRCULAR No.
HO/MSME/27 /2017-18/460 Dated- 11.09.2017) for > 10 Limit shall be renewed
every year.
Rate of Interest Loan Limit If Not covered If covered under CGTMSE
under CGTMSE
Up-to 10 lakh 1 YEAR MCLR+1.50% as per guidelines
> 10 Lakh to 25 Lakh 1 YEAR MCLR+2.00% issued by RDPS applicable for CGTMSE
> 25 lakh 1 YEAR MCLR+2.25%
Penal interest 2% on irregular amount (irregularity due to any reason)
Prepayment 0.50% on outstanding balance if shifted to other bank
penalty
Process Fee TL:- 0.50% +G.S.T., Max. Rs. 25,000/-
WC:-Rs. 150/- per lac + G.S.T., Min. Rs. 1000/- Max. Rs. 25,000/-
Cash Handling 25% of applicable charges (means 75% discount)

Charges Example:-ACM (M)>V>F6>Free Text 11(C075#DDMMYY)
Documentation NIL
Fee
Internal Rating ImaCS-under investment Grade (currently OBC1 to 7)
Exclusive Clause Party to deal exclusively with the Bank-obtain undertaking
Other Parameters Pre Sanction visit Report/ Inspection/Insurance/ Calculation of DP/Stock Audit/MO
Report/Legal Vetting: As per General Guidelines
Periodicity of Up-to 10 Lakh YEARLY
Stock Statements > 10 L to 50 lakh HALF YEARLY
> 50 L to 100 Lakh QUARTERLY
Ref.-Circulars HO/ CAD/72/2015-16/ 694 01.12.2015
14. Oriental Budget Hotel & Restaurants Scheme #

Reference HO/MSME/15/16-17/1118 dated 18.02.2017
Quantum TL upto 10 Crore or OD upto 50 Lakhs {For construction TL shall not be > 50% of total
loan sanctioned amount}
Eligibility Indv/ Non-Indv:- MSME(Service) units such as Dhaba, Restaurants, Hotel, Guest House,
Mess, Pizza, Catering Services/ Service apartments run by themselves for purchase of land,
repair renovation, furniture, fixure, machine, equipments, vehicles etc
Internal Rating OBC5 for both fresh and existing
Benchmark Ratios Current Ratio (NA); DER/ adjDER-4:1(max); Leverage/ adjLeverage -6:1(max); average
DSCR 1.40:1
Repayment (TL) max 10 years (incl moratorium)
Collateral Security Min 25% of loan amount (immovable or liquid, not agri land); Residual primary above
150% -as collateral coverage {OR} Loan should be covered under CGTMSE/PMMY
Margin 25% both TL and WC
Process 0.50% of sanctioned amount
Fee/Upfront Fee
Scheme code Scheme Code TL687, OD501, FC10-BH01
Deviation Deviation-HLCC-ED
authority and Concession in ROI for collateral coverage from 25% to 100%
concession in ROI
[ CAC >1%*, HLCC-ED-1%, HLCC-GM-0.50%}
(CirMSME1075
dated 28.03.18) for collateral coverage > 100%
[ CAC >0.50%*, HLCC-ED-0.50%]
* Sub to min of 1yMCLR
For details please refer to the circular dated 18.02.17 as amended from time to
time.
Delegated Powers MCB-CAC- CMLCC-HCB # Cluster Head Branch Incumbents not attached to cluster
(Cir-MSME-28- HLCC-ED Headed By headed by Scale
05.04.17) HLCC-GM GM/DGM/AG IV III VII VI V IV III II
M
Amt. in Crore Rs. 10 10 2.50 1.00 10 10 7.50 2.50 1.00 0.25
15.Tie up with OLA #

Reference HO/MSME/18/16-17/1121 dated 18.02.2017
Tie up To increase PMMY loan, tie up with ANI Technologies (P) Ltd (OLA) from 17.02.17 to 1 year
ANI will provide leads
Quantum For taxi (4 wheelers) -10 Lakh per vehicle, Max. 50 Lakhs & maximum 1 vehicle per person/
entity
Eligibility Indv/ Non-Indv:- for more than 1 vehicle, 3 years experience.
Repayment 60 months
Interest Rate Upto 10 Lakh- 1yMCLR+1.50%; above 10 Lakh to 50 lakh: 1yMCLR+2.00%
Collateral Security Upto 10 Lakh- to be covered under CGTMSE/PMMY (1st preference to CGTMSE)
Above 10 Lakh- Either 100% immovable/ liquid security or CGTMSE cover
Margin 10% on road price (Ex Show Room price, Insurance, Registration etc.)
Process Upto 5 lakh-NIL; above 5 Lakh: 0.50% of sanctioned amount, minimum 500/-. Plus G.S.T.
Fee/Upfront Fee
Finacle codes Scheme Code TL655, FC10-CV05
Special Condition For all leads received through Ola and converted into Business, the Bank will pay 1.00%
charges to Ola from Commission Paid account on monthly basis by the Cluster Heads/
CMLCC-HCB.
Besides the business leads to be provided by OLA the main feature of the MoU is that the
OLA will not link / map any other account of the Willing Driver Partner i.e. Borrower for
transfer of non-cash earnings unless the Willing Driver Partner submits a ‘no-objection
certificate’ in writing from OBC for mapping / linking of a savings account other than the
OBC Account. (on the Format of Authorization letter obtained from the borrower and to be
submitted to OLA ).
For details please refer to the circular no. 1121 dated 18.02.17 as amended from time to
time.
16. Oriental Vidyalaya Scheme

HO/MSME/30/2017-18/551, dated 09.10.2017
Target Group Educational Institutions up-to 12th standard
Purpose and TL:- Purchase of land plus construction thereon, construction, furniture/ fixture, renovation,
Nature of facility expansion, instruments etc for edu. Institution (No TL for purchase of land in isolation)
Overdraft: For WC requirement, repair, renovation, replacement etc. To be assessed on
‘Income based Method’ as per annexure A provided with the circular, Annual
Renewal/Review-interest to be served ‘as and when due’ basis.
BG and LC for Institutional purposes
Amount of loan TL/BG/LC: max 5 Crore (>5crore to be considered under existing scheme for edu
institutions RMD-734 18.01.17); OD-Max 2 Crore; Over/Adhoc-as per extant policy;
Discretionary Branches-NIL; all other sanctioning authorities –up to 5 crores
Powers
Collateral Security Minimum 50% to be ensured.
& PG Actual Residual value of the Land & Building (primary security), over 150% of the total loan
amount can be considered for collateral coverage.
Minimum overall security coverage (Primary and collateral) should not be less than 200%,
in terms of RV.
PG of promoter/ Turstee/Prop/Partners/Members of society/Directors etc.
Margin 25% of cost of project.
Where land is financed: Loan for purchase of land should not exceed 50% of total project
finance. (in such cases minimum margin is 40% and loan for land is restricted to 2 crore)
Classification As per MSME/PS guidelines
ROI and P Fee ROI:-1yMCLR+1.25%; Upfront/Process Fee: 0.20% of loan amount +GST
Repayment Pd Max 120 months (including max 36 months moratorium period); Subject to annual REVIEW.
(TL)
Documentation Upto Rs. 1.00 crore:- 2500; above 1.00 crore:-5000 (Plus GST as applicable)
Charges
Benchmark Ratios DER: 4:1; Leverage Ratio: 6:1, DSCR: 1.20:1; FACR:-1.50:1
FC-10 SS07
17. Oriental Sauchalay Nirman Scheme

HO/MSME/54/2017-18/964, dated 08.02.2018
Target Group Families of EWS, LIG, DRI beneficiaries, SHG etc.
Purpose Construction of toilets
Amount of loan TL max. Rs. 15000/-
Discretionary Powers Branch Incumbent Udbhav/ Classic
Security Undertaking from the borrower
Margin Min. 10%
Classification Priority Sector
ROI I year MCLR (For DRI beneficiaries as per DRI scheme)
Repayment Pd (TL) Max. in 10 years (EMIs)
Documentation Charges, NIL
Process Fee, Insurance etc.
FC-10 OSNY
Gist of Important Circulars on MSME

1. Circular No. HO:RD & PS:37:2015-16:362 05th August, 2015- Udyog Aadhaar for MSME
Registration In consonance with the recommendation of the Kamath Committee, and to improve ease
of doing business, the Ministry of MSME through NIC has developed a web portal
(http://em.msme.gov.in) for online filing of Entrepreneurship Memorandum I and II – required for
obtaining MSME registration. Branches are advised to encourage their MSME and PMMY customers
accordingly
2.Submission of Due Diligence, CIBIL Report and ROC Search Report for approval of EOI by
NBG-HO/RMD/51/15-16/567 dated 16.10.2015
3.REVISED GUIDELINES ON CREDIT INFORMATION REPORTS BY BANKS-HO/RMD/52/15-
16/589 dated 28.10.2015- As per the guidelines of our Bank, Credit Information Report from the existing
bankers shall be obtained in case of fresh/ renewal/enhancement of credit facilities. Indian Banks’
Association (IBA) vide letter No. OPR/CIR/1189 dated 07.08.2015 has circulated the revised parameters
for calculation of the ‘Net Means’ of the borrower.
SN Net Means Classification of ‘Net Means’
1. Up to Rs.1.00 Lac Very Small Means
2. Above Rs.1.00 Lac to Rs.4.00 Lakh Small Means
3. Above Rs.4.00 Lakh to Rs.10.00 Lakh Moderate Means
4. Above Rs.10.00 Lakh to Rs.25.00 Lakh Fair Means
5. Above Rs.25.00 Lakh to Rs.1.00 Crore Good Means
6. Above Rs.1.00 Crore to Rs.10.00 Crore Very Good Means
7. Above Rs.10.00 Crore to Rs.25.00 Crore Large Means
8. Above Rs.25.00 Crore Very Large Means
While undertaking exchange of information amongst banks, the following guidelines should be adhered
to: The Credit Information Report should be given only to Banks, Central and State Governments and
Government sponsored institutions. If any enquiry is received from a private party they should be
requested to route the enquiry through their bank. Use Annexure I and II for exchange of credit
information as given in the aforesaid circular.
4.REVISED GUIDELINES ON VERIFICATION & AUTHENTICATION OF THE DOCUMENTS

SUBMITTED BY THE BORROWER/ APPLICANTS-CIRCULAR No. HO/ RMD/55/2015-16/594
DATE: 29.10.2015-(A) In cases of credit proposals involving Proprietorship Concern, Partnership, Trust
etc. as well as retail proposals, the Income Tax Return (ITR) will be got generated at the Branch instead
of relying on IT Returns submitted by the applicants. In case of any technical issue, the ITR shall be got
generated from the nearby Branch/ Regional Office. (B) In cases where the borrower is a company, the
financial statements should be verified by the Branch officials with the Registrar of Companies (ROC)
records (through website: www.mca.gov.in) and the Branch shall submit a certificate to this effect.
5.REVISED GUIDELINES ON MANDATORY OBTAINING OF AADHAAR NUMBER FROM
INDIVIDUAL BORROWERS/ GUARANTORS HO/RMD/79/15-16/972 dated 10.03.2016 The
Branch Incumbent may consider sanction of fresh credit facilities/Renewal/Enhancement/additional etc.
to new borrowers/Existing borrower after obtaining AADHAAR Number and in the absence of
AADHAAR; ‘AADHAAR acknowledgement slip’ issued by Unique Identification Authority of India
(UIDAI). BM shall keep track on issuance of AADHAR through https://resident.uidai.net.in/check-
aadhaar-status and ensure that within 60 days of issuance of AADHAR AD slip the aadhaar is
obtained and updated in the account. Mobile number- Mandatory in all
Fresh/Renewal/Enhancement/additional etc; in case of sanction of Fresh/ Enhancement /additional credit
facilities as well as review/renewal of credit facilities, where Mobile Number is not available, the Branch
shall seek prior approval of the higher authorities before sanction/review/renewal of the credit facilities
to the borrower.
6.Standing Operating Procedure (SOP) for verification of documents viz. CA Certificate and
Valuation Certificate of immovable properties charged/ to be charged to the Bank. HO/RMD/08/16-17/48
15.04.16
7.Policy for valuation of immovable property, empanelment of valuer etc. HO/RMD/07/16-
17/44 15.04.16 revised guidelines on sanction of Non-Fund Based facilities to non-constituent borrowers
of the bank. The respective sanctioning authority can consider sanction of Non-Fund Based facilities
(Letter of Credit and Bank Guarantee) on stand-alone basis within their Delegated Powers to the
customers of our Bank who are not availing fund based credit facility from any bank in India subject to
the condition that customer is maintaining a satisfactory conducted current account/saving account for a
minimum period of six months with our Bank. HO/RMD/05/16-17/29 06.04.16
8. HO/I&C/15/343 dated 19.07.16:- Revised Pre-Sanction and Post Sanction Formats.
9.HO/MSME/13/16-17/1054 dated 24.01.17- Bank has renewed “Tie-up” with M/s Piaggio
Vehicles (P) Ltd” for financing all variants of PVPL vehicles (3 and 4 wheelers) till 23.01.2019.
10. HO/MSME/08/942 dated 30.12.16:- Role of cluster collection and monitoring team. GAP screen
Job Card.
11. HO/MSME/07/847 dated 07.12.16:- 100% waiver of Documentation & Inspection charges
under Loan against Warehouse Receipts scheme till 30.04.2017 renewal/enhancement/fresh.
12.HO/MSME/01/2017-18/05 dated 01.04.17:- Bank will commemorate 10th of every March as
the MSME day.
13. HO/MSME/01/2017-18/81 dated 29.04.17:- Revision in MPBF by Turnover method for Micro &
Small Enterprises (25% in case of turnover in case of non digital turnover and 30% in case of digital
turnover) Digital means Transactions through Net Banking or ADC (Other than cash & paper mode).
14. HO/MSME/01/2017-18/235 dated 28.06.17:- Modifications –Loans against WHR-Stock
Verification of stock from independent CA exempted, for details please refer to the circular.
15. HO/MSME/01/2017-18/308 dated 14.07.17:- Investment in P&M for the purpose of
classification as MSME –documents to be obtained
16. HO/MSME/27 /2017-18/460 Dated- 11.09.2017: All the business loan accounts up to ` 10.00
Lacs shall be sanctioned for a period of three years subject to annual review irrespective of the
schemes.
(i) For business loan accounts upto ` 50,000/- (Rs. Fifty thousand only) review shall be undertaken
by the respective sanctioning authority on a consolidated basis i.e. all such loans taken together in
a statement form as per the prescribed format enclosed as Annexure-I
(ii) For business loan accounts more than ` 50,000/- and up to ` 10.00 Lacs review format and
request letter by the customer thereof is enclosed as annexure- II & III respectively.
17. HO/MSME/28 /2017-18/459 Dated- 11.09.2017: Standardized and Concise formats of Pre-Sanction &
Post-Sanction Visit for Mudra Loans/ Other Business Loans upto Rs. 10.00 Lacs
18.HO/MSME/890 circular Dated 29.01.2018:- (1) Incremental credit exposure (Fresh,
enhancement, Adhoc, Over limit) above 5 crore only for borrowers having ‘External Credit
Rating’ of A (+/-) and above with effect from 29.01.2018. This is in compliance of RBI
guidelines pursuant to PCA norms imposed on the bank. (2) No incremental exposure to
externally unrated borrowers where exposure is >5crore. (3) However renewal at existing level
or reduction can be granted by the sanctioning authority, irrespective of level of external rating.
Following categories are exempted:-
(i) Exposure to State/ Central Government
(ii) Where Principal and Interest is fully guaranteed by the State/Central Government.
(iii) RBI (including Food credit)
(iv) Deposit placed with RIDF-NABARD
(v) Exposures secured by eligible financial collateral/CRMs vide bank’s own deposit, Govt. under
standardized approach for credit risk capital computation.
(vi) Negotiation of inland bills under L/C subject to compliance of minimum regulatory RAR of LC
issuing bank.
19. MSME/56/2017-18/940 dated 15.02.2018 Relief for MSME borrowers registered

under Goods & Services Tax (GST). Detailed guidelines in study supplements –recovery
SOME IMPORTANT POINTS/QUESTIONS
THE RECAPITALIZATION PROGRAM FOR PUBLIC SECTOR BANKS

The government has announced the Recapitalization Plan for Public Sector Banks and financial
engineered a way to partially solve the bad loan problem. There are three things that will happen:
• Through budgetary allocations, the government will buy Rs.18,000 cr. worth shares of
Public Sector Banks
• And then, Public Sector Banks will need to go raise Rs. 58,000 cr. from the market
• The government will issue "Bank Recapitalization Bonds" for Rs. 135,000 cr. which will be
used to buy more shares in Public Sector Banks. The time frame: 2 years.
The government will buy Rs. 153,000 cr. worth shares in banks. They will raise 58,000 cr.
themselves, so there's a 75-25 government-private infusion of new money into banks. This adds up
to Rs. 211,000 cr. which is a lot of money. It's even more than Reliance Jio's debt, and that's a fine
target to beat.
How will the Government get Rs. 135,000 cr.? The answer: financial engineering. They'll issue
bonds. These bonds might have to be bought by banks. The banks will give money to the
government which will turn around and buys shares in these banks. The banks get to keep the
money; they get bonds and they issue shares in exchange. This is interesting, because effectively
the banks are giving their promoter (the government) money to buy their own shares.
HIGHLIGHTS OF UNION BUDGET 2018-19

The Finance Minister Shri Arun Jaitley presented the general budget 2018-19 in the Parliament on
01.02.2018. He laid more emphasis on the Agricultural sector and stressed on the focus of
government towards Employment Generation in 2018-19. The Key points mentioned by him:
> Improvement in Foreign Direct Investment.
> Recent re-capitalization of Public Sector Banks is expected to extent great support to Growth.
> Service Sector at more than 8% growth rate and the Manufacturing sector is on a good
growth.
> Total Revised Estimates for expenditure in 2017-18 are "21.57 lakh crore (net of GST
compensation transfers to the States) as against the Budget Estimates of "21.47 lakh crore
> Revised Fiscal Deficit estimates for 2017-18 are "5.95 lakh crore at 3.5% of GDP.
> Fiscal Deficit for 2016-17was 3.5% of GDP. A Fiscal Deficit of 3.3% of GDP is projected by the
Finance Minister for the year 2018-19.
> MSP proposed to be increased to 150% of total
cost of cultivation AGRICULTURE AND ALLIED
SECTORS
> Indian Agricultural Production achieved a record high level with food grain production-275
million tonnes and fruits and Vegetables-300 million tonnes
> 470 Agricultural Produce Market Committee have been connected to e-NAM network and rest
will be connected by March,2018.
> Existing 22,000 rural Haats will be upgraded and developed into Gramin Agricultural Markets
(GrAMs). In these GrAMs, the physical infrastructure will be strengthened using MGNREGA and
other Government Schemes.
> An Agri-Market Infrastructure Fund with a corpus of Rs 2000 crore will be set up for developing
and upgrading agricultural marketing infrastructure in the 22000 Grameen Agricultural Markets
(GrAMs) and 585 APMCs
> A sum of Rs 200 crore is allocated to support organized cultivation and associated industry
> Prime Minister Krishi Sampada Yojana is a flagship programme aimed at boosting investment in
food processing
> Allocation of Ministry of Food Processing is being doubled to 1400 crore in 2018-19
> Government proposed to launch an ''Operation Greens'' and a sum of Rs.500 crore is allocated
for this purpose to promote Farmer Producers Organizations (FPOs), Agri-logistics, Processing
facilities and professional management.
> India's agri-exports potential is as high as US $ 100 billion against current exports of US $ 30
billion.
> It is planned to liberalize the export of agri-commodities and also set up state-of-the-art testing
facilities in all the 42 Mega Food Parks
> Government proposed to extend the facility of Kisan Credit Cards to fisheries and animal
husbandry farmers to help them meet their working capital needs.
> Bamboo is phrased as 'Green Gold'.
> Bamboo grown outside forest areas has been eliminated from the definition of trees. It is
proposed to launch a Re-Structured National Bamboo Mission with an outlay of Rs 1290 crore to
promote bamboo sector in a holistic manner.
> It is planned to expand the Scope of a Long-Term Irrigation Fund (LTIF) would be to cover
specified command area development projects.
> It is Proposed to set up a two funds with an outlay of Rs 10,000 Crore
> Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) for Fisheries Sector
> Animal Husbandry Infrastructure Development Fund for financing infrastructure requirement of
Animal Husbandry sector.
> The volume of institutional credit for agriculture sector from year-to-year from Rs 8.5 lakh crore
in 2014-15 to Rs 10 lakh crore in 2017-18. It is proposed to raise this to Rs 11 lakh crore for the
year 2018-19.
RURAL DEVELOPMENT:
> It is proposed to increase the target of providing free LPG connection to 8 crore poor women
under Prime Minister's Ujjwala Scheme to make poor women free from the smoke of wood.
> An amount of Rs 16,000 Crore is being spent under Prime Minister Saubhagya Yojana for
providing electricity to 4 Crore households of the country free of charge.
> Government has already constructed more than 6 crore toilets under Swacch Bharat Mission and
is planning to further construct around 2 crore toilets.
> Under Prime Minister Awas Scheme Rural Houses planned in 2017-18 is 51 lakhs and 51
lakh houses during 2018-19 which is more than one crore houses will be constructed
exclusively in rural areas. In urban areas the assistance has been sanctioned to construct 37
lakh houses
> It is proposed to establish a dedicated Affordable Housing Fund (AHF) in National Housing
Bank, funded from priority sector lending shortfall and fully serviced bonds authorized by the
Government of India
> Loans to Self Help Groups of women increased to about Rs 42,500 crore in 2016-17. It is
anticipated that the loans to SHGs will increase to Rs.75,000 crore by March, 2019.
Substantially an increase in allocation of National Rural Livelihood Mission to Rs 5750 crore
in 2018-19 is proposed.
> An amount of Rs 2,600 Crore is allocated for Ground water irrigation scheme under Prime
Minister Krishi Sinchai Yojna-Har Khet ko Pani will be taken up in 96 deprived irrigation
districts where less than 30% of the land holdings gets assured irrigation presently.
> In the year 2018-19, for creation of livelihood and infrastructure in rural areas, total amount
to be spent by the Ministries will be Rs 14.34 lakh crore, including extra-budgetary and non-
budgetary resources of Rs11.98 lakh crore it is anticipated that this expenditure will create
employment of 321 crore person days, 3.17 lakh kilometers of rural roads, 51 lakh new rural
houses, 1.88 crore toilets, and provide 1.75 crore new household electric connections
besides boosting agricultural growth
HEALTH AND SOCIAL BENEFITS
> Allocation on National Social Assistance Programme this year has been earmarked at Rs
9975 crore
> Ayushman Bharat programme National Health Protection Scheme: Ayushman Bharat
programme is aimed at making path breaking interventions to address health holistically, in
primary, secondary and tertiary care system covering both prevention and health promotion.
Rs 1200 Crore is outlayed for this flagship programme.
> National Health Protection Scheme to cover over 10 crore poor and vulnerable families
providing coverage up to 5 lakh rupees per family per year for secondary and tertiary care
hospitalization. This will be the world's largest government funded health care Programme.
> Government Allocated additional Rs600 crore to provide nutritional support to all TB patients
at the rate of Rs.500 per month for the duration of their treatment.
> It is proposed to set up 24 new Government Medical Colleges and Hospitals by upgrading
existing district hospitals in the country to ensure that there is at least 1 Medical College for
every 3 Parliamentary Constituencies and at least 1 Government Medical College in each
State of the country.
EDUCATION
> It is proposed to increase the digital intensity in education and move gradually from ''black
board'' to ''digital board.
> It has been decided that by the year 2022, every block with more than 50% ST population and at
least 20,000 tribal persons, will have an Ekalavya Model Residential School The proposed schools will
be on par with Navodaya Vidyalayas and will have special facilities for preserving local art and culture
besides providing training in sports and skill development.
> To step up investments in research and related infrastructure in premier educational
institutions, including health institutions, it is proposed to launch a major initiative named
''Revitalising Infrastructure and Systems in Education (RISE) by 2022'' with a total
investment of Rs 1,00,000 crore in next four years.
> The Government would launch the ''Prime Minister's Research Fellows (PMRF)'' Scheme this
year. Under this sheme,
1,000 best B.Tech students each year from premier institutions will be selected and will be
provided with facilities to do Ph.D in IITs and IISc, with a handsome fellowship.
> Estimated schematic budgetary expenditure on health, education and social protection for 2018-
19 is "1.38 lakh crore against estimated expenditure of "1.22 lakh crore in 2017-18
MSME :
> It is proposed to onboard Public-Sector Banks and Corporates onTrade Electronic Receivable
Discounting System (TReDS) platform and link this with GSTN. Online loan sanctioning
facility for MSMEs will be revamped for prompt decision making by the banks
> MUDRA Yojana launched in April, 2015 has led to sanction of "4.6 lakh crore in credit from
10.38 crore MUDRA loans. 76% of loan accounts are of women and more than 50% belong
to SCs, STs and OBCs. It is proposed to set a target of Rs 3 lakh crore for lending under
MUDRA for 2018-19
> The Government has proposed an outlay of "7148 crore for the textile sector in 2018-19.
> Govt has also announced to change the definition of Micro, Small and Medium enterprises
on the basis of annual turnover.
EMPLOYMENT:
> It is proposed to make amendments in the Employees Provident Fund and Miscellaneous
Provisions Act, 1952 to reduce women employees' contribution to 8% for first three years of
their employment against existing rate of 12% or 10% with no change in employers'
contribution
> The Government is setting up a model aspirational skill centre in every district of the country
under Pradhan Mantri Kaushal Kendra Programme.
> 306 Pradhan Mantri Kaushal Kendra have been established for imparting skill training
through such centers. INFRASTRUCTURE
> An estimated investment in excess of "50 lakh crore is expected in infrastructure to increase
growth of GDP.
> Smart Cities Mission aims at building 100 Smart Cities with state-of-the-art amenities.
> 99 Cities have been selected with an outlay of "2.04 lakh crore
> Projects worth "2350 crore have been completed and works of "20,852 crore are under
progress
> It is proposed to develop 10 prominent tourist sites into Iconic Tourism destinations by
following a holistic approach involving infrastructure and skill development, development of
technology, attracting private investment, branding and marketing.
> 100 Adarsh monuments of the Archaeological Survey of India will be upgraded to enhance
visitor experience.
> The AMRUT Programme focuses on providing water supply to all households in 500 cities.
State level plans of "77,640 crore for 500 cities have been approved. Water supply contracts
for 494 projects worth"19,428 crore and sewerage work contract for 272 projects
costing"12,429 crore has been awarded.
> Government has targeted to complete National Highways exceeding 9000 kilometers length
during 2017-18.
> Ambitious Bharatmala Pariyojana has been approved for providing seamless connectivity of
interior and backward areas and borders of the country to develop about 35000 kms in
Phase-I at an estimated cost of "5,35,000 crore.
> To raise equity from the market for its mature road assets, NHAI will consider organizing its
road assets into Special Purpose Vehicles and use innovative monetizing structures like Toll,
Operate and Transfer (TOT) and Infrastructure Investment Funds (InvITs).
> Railways' Capex for the year 2018-19 has been pegged at "1,48,528 crore
> 18,000 kilometers of doubling, third and fourth line works and 5000 kilometers of gauge
> conversion would eliminate capacity constraints and transform almost entire network into
Broad Gauge - 4000 kilometers are targeted for commissioning during 2017-18
> Adequate number of rolling stock - 12000 wagons, 5160 coaches and approximately 700
locomotives are being procured during 2018-19.
> A decision has been taken to eliminate 4267 unmanned level crossings in the broad gauge
network in the next two years.
> Redevelopment of 600 major railway stations is being taken up by Indian Railway Station
Development Co. Ltd. All stations with more than 25000 footfalls will have escalators
> Modern trainsets with state-of-the-art amenities and features are being designed at
> Integrated Coach Factory, Perambur. First such train-set will be commissioned during 2018-
19.
> Mumbai-Ahmedabad bullet train project, India's first high speed rail project was laid on
September 14, 2017. An Institute is coming up at Vadodara to train manpower required for
high speed rail projects
> In the last three years, the domestic air passenger traffic grew at 18% per annum and.
Regional connectivity scheme of UDAN (Ude Desh ka Aam Nagrik) initiated by the
Government last year shall connect 56 unserved airports and 31 unserved helipads across
the country
> Airport Authority of India (AAI) has 124 airports. It is proposed to expand our airport
capacity more than 5 times to handle a billion trips a year under a new initiative - NABH
Nirman.
> Rs 10000 crore has been outlayed in 2018-19 for creation and augmentation of
Telecom Infrastructure TECHNOLOGY
> Corpus for Digital India Programme is doubled to Rs 3073 crore in 2018-19
> To harness the benefit of emerging new technologies, particularly the 'Fifth Generation' (5G)
technologies and its adoption, the Department of Telecom will support establishment of an
indigenous 5G Test Bed at IIT, Chennai.
> The Government does not consider crypto-currencies legal tender or coin and will take all
measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of
the payment system
> Government's estimated budgetary and extra budgetary expenditure on infrastructure for
2018- 19 is being increased to "5.97 lakh crore against estimated expenditure of "4.94 lakh
crore in 2017-18.
BANKING AND FINANCE
> Capital of the Food Corporation of India will be restructured to enhance equity and to raise
long-term debt for meeting its standing working capital requirement
> Department of Commerce will be developing a National Logistics Portal as a single window
online market place to link all stakeholders
> The Government has approved listing of 14 CPSEs, including 2 insurance companies, on the
stock exchanges. The Government has also initiated the process of strategic disinvestment in
24 CPSEs. It includes strategic privatization of Air India
> Three public sector general insurance companies National Insurance Company Ltd., United
India Assurance Company Limited and Oriental India Insurance Company Limited will be
merged into a single insurance entity and will be subsequently listed.
> The Government introduced Exchange Traded Fund Bharat-22 to raise "14,500 crore, which
was over-subscribed in all segments.
> 2017-18 Budget Estimates for disinvestment were pegged at the highest ever level of "72,500
crore. Government has already exceeded the budget estimates. And assuming receipts of
"1,00,000 crore in 2017-18. Disinvestment target for 2018-19 is "80,000 crore.
> Bank recapitalization program has been launched with bonds of "80,000 crore being issued this
year. This recapitalization will pave the way for the Public Sector Banks to lend additional credit
of "5 lakh crore.
> Outward Direct Investment (ODI) from India has grown to US$15 billion per annum.
> Indian Post Offices Act, Provident Fund Act and National Saving Certificate Act are being
amalgamated and certain additional people friendly measures are being introduced.
TAXATION
> The growth rate of direct taxes up to 15th January, 2018 is 18.7%.
> There has been huge increase in the number of returns filed by taxpayers.
> In financial year 2016-17, "85.51 lakhs new taxpayers filed their returns of income as against
66.26 lakhs in the immediately preceding year.
> The number of effective tax payer base increased from ?6.47 crores at the beginning of F.Y.14-
15 to "8.27 crores at the end
of F.Y.16-17
> It is proposed to extend the benefit of reduction in corporate tax rate to 25% to companies
who have reported turnover up to 250 crore in the financial year 2016-17 which was earlier
applicable companies which reported turnover up to 50 crore.
> For assessment year 2016-17, "1.89 crore salaried individuals have filed their returns and have
paid total tax of "1.44 lakh crores which works out to average tax payment of "76,306/- per
individual salaried taxpayer.
> It is proposed to allow a standard deduction of "40,000/- in lieu of the present exemption in
respect of transport allowance and reimbursement of miscellaneous medical expenses. The
revenue cost of this decision is approximately "8,000 crores the government and the total
number of salaried employees and pensioners who will benefit from this decision is around 2.5
crores.
> For senior Citizens Exemption of interest income on deposits with banks and post offices to be
increased from "10,000/- to "50,000/- and TDS shall not be required to be deducted on such
income, under section 194A
> Raising the limit of deduction for health insurance premium and/ or medical expenditure from
"30,000/- to "50,000/-, under section 80D. All senior citizens will now be able to claim benefit
of deduction up to "50,000/- per annum in respect of any health insurance premium and/or
any general medical expenditure incurred.
> It is proposed to extend the Pradhan Mantri Vaya Vandana Yojana up to March, 2020 under
which an assured return of 8% is given by Life Insurance Corporation of India. The existing
limit on investment of "7.5 lakh per senior citizen under this scheme is also being enhanced to
"15 lakh.
> It is proposed to tax long term capital gains exceeding "1 lakh at the rate of 10% without
allowing the benefit of any indexation.
> It is proposed to reduce customs duty on raw cashew from 5% to 2.5% to help the cashew
processing industry.
> Increased customs duty on mobile phones from 15% to 20%, on some of their parts and
accessories to 15% and on certain parts of TVs to 15% to promote creation of more jobs in the
country
> It is proposed to abolish the Education Cess and Secondary and Higher Education Cess on
imported goods, and in its place, imposing a Social Welfare Surcharge, at the rate of 10% of
the aggregate duties of Customs, on imported goods, to provide for social welfare schemes of
the Government.
> Sukanya Samriddhi Account Scheme launched in January 2015 has been a great success. Until
November, 2017 more than 1.26 crore accounts have been opened across the country in the
name of girl child securing an amount of "19,183 crore
RBI ISSUES GUIDELINES ON REVISED FRAMEWORK FOR RESOLUTION OF BAD LOANS

on 12.02.2018
The Reserve Bank of India (RBI) had tightened norms for bad loan resolution by setting timelines
for resolving large NPAs, failing which banks will have to mandatory refer them for insolvency
proceedings. With introduction of new norms, all regulatory guidelines pertaining to restructuring of
loans under different schemes of the central bank such as strategic debt restricting (SDR), 5/25
refinancing, and Scheme for Sustainable Structuring of Stressed Assets (S4A), among others, stand
withdrawn with immediate effect. Accordingly, the Joint Lenders' Forum (JLF) as an institutional
mechanism for resolution of stressed accounts also stands discontinued. All accounts, including
such accounts where any of the schemes have been invoked but not yet implemented, shall be
governed by the revised framework.
According to the new rules, for such accounts, where the banking sector's aggregate exposure is
Rs.2,000 crore and above, lenders must implement a resolution plan within 180 days, starting 1
March 2018(reference date). For other accounts with aggregate exposure below Rs2,000 crore but
and, at or above Rs100 crore, it intends to announce, over a two-year period, reference dates for
implementing the resolution plans to ensure calibrated, time-bound resolution of all such accounts
in default.
Under the revised framework for resolution of bad loans, as soon as there is a default in the
borrower entity's account with any lender, all lenders - singly or jointly - shall initiate steps to cure
the default." The resolution plan (RP) may involve any actions/plans/ reorganisation including, but
not limited to, regularisation of the account by payment of all over dues by the borrower entity, sale
of the exposures to other entities / investors, change in ownership, or restructuring. The revised
framework has also laid down the timelines for resolution of stressed assets. If a resolution plan in
respect of large accounts is not implemented as per the timelines specified, lenders will be required
to file insolvency application, singly or jointly, under the IBC, 2016, within 15 days from the expiry
of the specified timeline. It further said all lenders will be required to submit Central Repository of
Information on Large Credits (CRILC)- Main Report to the Reserve Bank on a monthly basis
effective April 1,
2018. In addition, the lenders shall report to CRILC, all borrower entities in default (with aggregate
exposure of Rs 5 crore and above), on a weekly basis, at the close of business on every Friday, or
the preceding working day if Friday happens to be a holiday.
In case the resolution plan involves change in the ownership structure of the defaulting firm, RBI
has mandated that account should not be in default at any point during the specified period.
Specified period is the time between implementation of the plan and the date, where up to 20% of
the outstanding principal debt is repaid. If there is a default in the specified period, the account
must be referred for IBC proceedings. "Banks shall conduct necessary due diligence in this regard
and clearly establish that the acquirer is not a person disqualified in terms of Section 29A of the
IBC," "It is, however, clarified that the said transition arrangement shall not be available for
borrower entities in respect of which specific instructions have already been issued by the Reserve
Bank to the banks for reference under IBC. Lenders shall continue to pursue such cases as per the
earlier instructions".
In respect of accounts with aggregate exposure of the lenders at ?2000 crore and above, on or
after March 1, 2018 ('reference date'), including accounts where resolution may have been initiated
under any of the existing schemes as well as accounts classified as restructured standard assets
which are currently in respective specified periods (as per the previous guidelines), Resolution Plan
(RP) shall be implemented as per the following timelines:
i. If in default as on the reference date, then 180 days from the reference date.
ii. If in default after the reference date, then 180 days from the date of first such default.
If a RP in respect of such large accounts is not implemented as per the timelines of 180 days,
lenders shall file insolvency application, singly or jointly, under the Insolvency and Bankruptcy Code
2016 (IBC)7 within 15 days from the expiry of the said timeline.
RBI ANNOUNCES RELIEF FOR MSME BORROWERS REGISTERED UNDER (GST) -

07.02.18
Presently, banks and NBFCs in India generally classify a loan account as Non-Performing Asset
(NPA) based on 90 day and 120 day delinquency norms, respectively. RBI observed that
formalisation of business through registration under GST had adversely impacted the cash flows of
the smaller entities during the transition phase with consequent difficulties in meeting their
repayment obligations to banks and NBFCs. As a measure of support to these entities in their
transition to a formalised business environment, RBI decided that the exposure of banks and NBFCs
to a borrower classified as micro, small and medium enterprise under the Micro, Small and Medium
Enterprises Development (MSMED) Act, 2006, shall continue to be classified as a standard asset in
the books of banks and NBFCs subject to the following conditions:
i. The borrower is registered under the GST regime as on January 31, 2018.
ii. The aggregate exposure, including non-fund based facilities, of banks and NBFCs, to the
borrower does not exceed ?25
crore as on January 31, 2018.
iii. The borrower's account was standard as on August 31, 2017.
iv. The amount from the borrower overdue as on September 1, 2017 and payments from the
borrower due between
September 1, 2017 and January 31, 2018 are paid not later than 180 days from their respective
original due dates.
v. A provision of 5% shall be made by the banks/NBFCs against the exposures not classified as
NPA in terms of this
circular. The provision in respect of the account may be reversed as and when no amount is
overdue beyond the
1
90/120 day norm, as the case may be.
vi. The additional time is being provided for the purpose of asset classification only and not for
income recognition, i.e., if the
interest from the borrower is overdue for more than 90/1202 days, the same shall not be
recognised on accrual basis.
HARMONIZING BENCHMARK RATE METHODOLOGY BY LINKING BASE RATE TO MCLR

Reserve Bank introduced the Marginal Cost of Funds based Lending Rates (MCLR) system with
effect from April 1, 2016 on account of the limitations of the Base Rate regime. With the
introduction of the MCLR system, it was expected that the existing Base Rate linked credit
exposures shall also migrate to MCLR system. The RBI observed that a large proportion of bank
loans continue to be linked to the Base Rate despite the Reserve Bank highlighting this concern in
Monetary Policy statements. Since MCLR is more sensitive to policy rate signals, it has been decided
to harmonize the methodology of determining benchmark rates by linking the Base Rate to the
MCLR with effect from April 1, 2018.
CHANGE IN DEFINITION OF MICRO SMALL AND MEDIUM ENTERPRISES

The Cabinet has approved a change in the basis of classifying Micro, Small and Medium enterprises
from 'investment in plant & machinery/equipment' to 'annual turnover'. "This will encourage 'ease
of doing business', make the norms of classification growth oriented and align them to the new tax
regime revolving around GST (Goods & Services Tax)." The Section-7 of the Micro, Small and
Medium Enterprises Development (MSMED) Act, 2006 will be amended to define units producing
goods and rendering services in terms of annual turnover. After the decision, a micro enterprise will
be defined as a unit where the annual turnover does not exceed ?5 crore, a small enterprise will be
defined as a unit where the annual turnover is more than ?5 crore but does not exceed ?75 crore. A
medium enterprise will now be a unit where the annual turnover is more than ?75 crore but does
not exceed ?250 crore.
REMOVAL OF CREDIT CAPS ON MSME (SERVICES) UNDER PRIORITY SECTOR
The RBI has decided to remove the currently applicable loan limits of ?5 Crore per borrower to
Micro and Small Enterprises (Service Sector) and ?10 Crore per borrower for Medium Enterprises
(Service sector) respectively, for classification under priority sector. Accordingly, all bank loans to
MSMEs, engaged in providing or rendering of services as defined in terms of investment in
equipment under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, shall
qualify under priority sector without any credit caps. For manufacturing enterprises there was no
such cap.
RBI APPOINTS PANEL TO REPORT ON DIVERGENCE IN NPA REPORTING:

In view of large divergences observed in asset classification and provisioning in the credit portfolio
of banks as well as the rising incidence of frauds in the Indian banking system, RBI decided to
constitute an Expert Committee under the chairmanship of Shri Y H Malegam, a former member of
the Central Board of Directors of RBI, to look into the reasons for high divergence observed in asset
classification and provisioning by banks vis-a-vis the RBI's supervisory assessment, and the steps
needed to prevent it; factors leading to an increasing incidence of frauds in banks and the
measures (including IT interventions) needed to curb and prevent it; and the role and effectiveness
of various types of audits conducted in banks in mitigating the incidence of such divergence and
frauds. Recently, SBI, which accounts for more than a fifth of India's banking assets, admitted that
a RBI audit of its books for the past financial year (2016-17) led to the addition of Rs 23,239 crore
in its bad loans. With this, SBI joined the ranks of private banks like Yes Bank and Axis Bank
reporting NPA divergence.
INSOLVENCY REGULATIONS:
The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks
to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The
Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in December 2015. It was
passed by Lok Sabha on 5 May 2016. The Code received the assent of the President of India on 28
May 2016.
Insolvency Resolution : The Code outlines separate insolvency resolution processes for
individuals, companies and partnership firms. The process may be initiated by either the debtor or
the creditors. A maximum time limit, for completion of the insolvency resolution process, has been
set for corporates and individuals. For companies, the process will have to be completed in 180
days, which may be extended by 90 days, if a majority of the creditors agree. For start ups (other
than partnership firms), small companies and other companies (with asset less than Rs. 1 crore),
resolution process would be completed within 90 days of initiation of request which may be
extended by 45 days.
Insolvency regulator: The Code establishes the Insolvency and Bankruptcy Board of India, to
oversee the insolvency proceedings in the country and regulate the entities registered under it. The
Board will have 10 members, including representatives from the Ministries of Finance and Law, and
the Reserve Bank of India
Insolvency professionals: The insolvency process will be managed by licensed professionals.

These professionals will also control the assets of the debtor during the insolvency process. The
Insolvency and Bankruptcy Board of India (IBBI) has come up with two regulations covering
insolvency professional agencies (IPAs) and insolvency professionals. The two regulations on IPA
provide for the eligibility norms to be a professional member of an IPA and for eligibility norms to
be registered with the IBBI as an IPA. A company registered under Section 8 of the Companies Act,
2013 with a minimum net worth of Rs.10 crore would be eligible to be an IPA. The IPA should have
membership committee(s), monitoring committee, grievance redressal committee(s), and
disciplinary committee(s), for regulation and oversight of professional members.
Bankruptcy and Insolvency Adjudicator: The Code proposes two separate tribunals to oversee
the process of insolvency resolution, for individuals and companies: (i) the National Company Law
Tribunal for Companies and Limited Liability Partnership firms; and (ii) the Debt Recovery Tribunal
for individuals and partnerships
THE INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) ORDINANCE, 2017
• The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 was promulgated on
November 23, 2017. It amends the Insolvency and Bankruptcy Code, 2016. The Code
provides a time-bound process for resolving insolvency in companies and among individuals.
Insolvency is a situation where individuals or companies are unable to repay their
outstanding debt.
• Resolution applicant: The Code defines a resolution applicant as a person who submits a
resolution plan to an insolvency professional. (A resolution plan specifies the details of how
the debt of a defaulting debtor can be restructured.) The Ordinance amends this provision
to define a resolution applicant as a person who submits a resolution plan after receiving an
invite by the insolvency professional to do so.
• Eligibility for resolution applicants: The Code specifies that an insolvency professional
will take control of the defaulting company, and invite applicants to submit resolution plans.
The Ordinance amends this provision to state that a resolution professional will only invite
those resolution applicants to submit a plan, who fulfill certain criteria laid down by him
(approved by the committee of creditors) or by the Insolvency and Bankruptcy Board.
• Ineligibility to be a resolution applicant: The Ordinance inserts a provision prohibiting
certain persons from being a resolution applicant and submitting a resolution plan. A person
will be ineligible to submit a plan if: (i) he is an undischarged insolvent (individual unable to
repay his debt), (ii) he is a willful defaulter identified by the Reserve Bank of India, (iii) his
account has been identified as a non-performing asset for more than a year, (iv) he has
been convicted of an offence punishable with two or more years of imprisonment, (v) he has
been disqualified as a director under the Companies Act, 2013, (vi) he has been prohibited
from trading in securities, (vii) he has indulged in undervalued or fraudulent transactions,
(viii) he has executed an enforceable guarantee in favour of a person who is a creditor to a
defaulter undergoing a resolution process, (ix) he is connected to any such person
mentioned above (including promoters or people in control of the defaulting firm during the
implementation of the resolution plan), or (x) he has indulged in any of these activities
outside India.
• Approving resolution plan: The Code specifies that the committee of creditors will
approve a resolution plan with 75% majority. The Ordinance amends this provision to state
that the committee will approve this resolution plan by 75% majority subject to any other
conditions specified by the Insolvency and Bankruptcy Board.
• The Ordinance prohibits the committee of creditors from approving a resolution plan
submitted before the promulgation of this Ordinance, where the plan has been submitted by
a person ineligible to be a resolution applicant.
• Liquidation: The Code allows the insolvency professional to sell the moveable or
immovable property of the debtor in case of liquidation. The Ordinance prohibits the
insolvency professional to sell this property to any person who is ineligible to be a resolution
applicant.
• Penalties: The Ordinance inserts a provision to specify that any person contravening
provisions of the Code for which no penalty has been specified will be punishable with a fine
ranging between one lakh rupees to two crore rupees.
RBI GETS POWERS TO DEAL WITH NPAs: RBI now has the powers to direct banks to initiate
bankruptcy proceedings against defaulting companies and to take decisions on behalf of lenders
while dealing with stressed assets, after the President gave his assent to an Ordinance to amend
the Banking Regulation Act. The Ordinance is the focal point of a new framework which the
Government hopes will help it hasten the processes to deal with nearly Rs.7 Lakh Crore worth of
NPA assets in the Indian Banking System. The Government has notified the banking regulation
(Amendment) Ordinance 2017. The RBI has identified 12 accounts for proceedings under IBC.
PROMPT CORRECTIVE ACTION (PCA) FRAMEWORK FOR BANKS

RBI has come up with a notification titled "Revised Prompt Corrective Action (PCA) framework for
banks." The revised framework would apply to all banks operating in India including small and
foreign banks. The new set of provisions will be effective from April 1 based on the financials of
banks as of March 2017. The revised framework will override the existing PCA framework. The
revised framework will be again reviewed after three years. RBI had promised to revise the PCA
framework at its first monetary policy review of the current fiscal held on April 6, as the bad loans
including those already restructured reached USD 80 billion or 15% of the system as of March
2017.
Capital, Asset Quality and profitability would be the basis on which the banks would be monitored.
Banks would be placed under PCA framework depending upon the audited annual financial results
impose PCA on any bank including migration from one threshold to another if circumstances so warrants. RBI has defined
three kinds of risk thresholds and the PCA will depend upon the type of risk threshold that was breached.
Sl. Parameter Indicator Risk Threshold-1 Risk Threshold-2 Risk Threshold-3
(Benchmark as on
31.03.2017)
1 CAPITAL CRAR+CCB Up to 250 basis points More than 250 In excess of
(Breach of CRAR or CET-1 10.25% below indicator basis points but not 312.50 bsp below
ratio to trigger PCA) (9.00% CRAR + <10.25% but >= below 400 bps. indicator
AND/OR 1.25% CCB) 7.75% <7.75% but < 3.625%
Regulatory pre-specified Up to 162.50 basis >=6.25%
Trigger of COMMON points below indicator Up to 162.50 basis
EQUITY TIER-1 (CET-1) + < 6.75% but >= points but not
CAPITAL CONSERVATION Min. CET-1 + CCB 5.125% exceeding 312.50
BUFFER bsp below indicator
CCB would be 1.875% and <5.125% but >=
2.5% as on 31.03.18 and 3.625%
31.03.19
6.75%
(5.50% + 1.25% of
CCB)
2 ASSET QUALITY Net Non-Performing >= 6.00% but <9.00% >= 9.00% but >= 12.00%
Assets Ratio <12.00%
PROFITABILITY Return on Assets Negative ROA for two Negative ROA for Negative ROA for
consecutive years three consecutive four consecutive
34 years years
LEVERAGE Tier-1 Leverage Ratio <=4.00% but >=3.50% <=3.50%
(Leverage is over 25 (Leverage is over
times the Tier-1 28.6 times the Tier-
Capital) 1 Capital)
Tier -1 Leverage Ratio is the percentage of the Capital measure to exposure measure as defined in RBI guidelines on exposure
norms.
and RBI's supervisory assessment. RBI may also

If a bank breaches the risk threshold, then mandatory actions include the restriction on dividend
payment/remittance of profits, restriction on branch expansion, higher provisions, restriction on
management compensation and director's fees. Specifically, the breach of 'Risk Threshold 3' of
CET1 (common equity tier 1) by a bank would call for resolution through tools like amalgamation,
reconstruction, winding up among others. RBI in its discretion can also carry out the following
actions: Recommend the bank owner be it government/promoters/parent of foreign bank branch to
bring in new management/board. Advise bank's board to activate the recovery plan as approved by
the supervisor. Advise bank's board to carry out a detailed review of business model, the
profitability of business lines and activities, assessment of medium and long-term viability, balance
sheet projections among others. Review short term strategies and medium-term business plans and
carry out any other corrective actions like the removal of officials and supersession or suppression
of the board.
ELEVEN BANKS PUT UNDER PROMPT CORRECTIVE ACTION BY RESERVE BANK OF
INDIA
Reserve Bank of India has so far put following eleven Banks under Prompt Corrective Action:
1. United Bank of India 7. Corporation Bank
2. IDBI Bank 8. Central Bank of India
3. Indian Overseas Bank 9. Oriental Bank of Commerce
4. UCO Bank 10. Bank of India
5. Dena Bank 11. Allahabad Bank
6. Bank of Maharashtra
Allahabad Bank has been placed under PCA on the basis of financial results for the FY ending
31.03.2017 due to High NNPAs and negative ROA for two consecutive years.
• Customers will not have to pay any transaction charges for payments through debit card, BHIM
app and other payment made for up to Rs 2,000. Union Cabinet had recently approved a
proposal that government will bear the merchant discount rate (MDR) charges on transactions
up to Rs 2,000 made through debit cards, BHIM UPI or Aadhaar-enabled payment systems to
promote digital transactions. The merchant discount rate (MDR) will be borne by the
government for two years with effect from January 1, 2018 by reimbursing the same to banks.
• Markets regulator SEBI stated that cross-holding in credit rating agencies (CRAs) will be capped
at 10 percentand also decided to raise the minimum networth requirement to Rs 25 crore from
the current Rs 5 crore. Also, the board of Sebi has approved a slew of measures for tightening
the financial and operational eligibility of the promoters of CRAs, besides greater disclosure
requirements for them.
• India's first home-grown high purity gold reference standard - the Bharatiya Nirdeshak Dravya
(BND-4201) - was launched at the India Government Mint, Mumbai. BND-4201, which is the
reference material for gold of '9999' fineness (gold that is 99.99 per cent pure), will be
beneficial to the consumers and public at large to ensure purity of gold. Gold reference standard
is indispensable in gold and jewellery hall marking. This will also be useful for Collection and
Purity Testing Centres to certify the purity of gold deposits under the gold monetisation scheme.
• The GST Council has decided to implement the e-way bill mechanism throughout the country by
June 1st after reviewing the readiness of the IT network. Under the Goods and Services Tax
(GST) regime, the waybill is replaced by an e-way bill. It aims at mitigating the problems caused
by waybill compliance. E-way bill is an electronic way bill for movement of goods which can be
generated on the GSTN portal. The decision was taken in 24th meeting of the GST Council via
Video-Conferencing.
• Pankaj Jain, Joint Secretary in the Department of Financial Services (DFS), has assumed charge
as the Managing Director of India Infrastructure Finance Company Ltd (IIFCL). He will be
holding additional charge of IIFCL along with his present position as Joint Secretary at DFS.
• The Centre unveiled the contours of the 'Electoral Bonds' scheme, which seeks to ensure the
flow of clean money to political parties, without revealing the donors' names. As per the Finance
Minister Arun Jaitley, the electoral bonds will be a bearer instrument in the nature of a
Promissory Note and an interest-free banking instrument. A citizen of India or a body
incorporated in India will be eligible to purchase the bond from specified branches of the State
Bank of India. The bonds can be purchased for any value in multiples of Rs1,000; Rs10,000;
Rs1 lakh; Rs10 lakh; and Rs1 crore.
• State Bank of India and NABARD have signed an agreement with five NGOs in Bengal for the
promotion of 2,500 joint liability groups (JLGs) in select districts of the State. JLGs are informal
groups of 4-10 members engaged in similar economic activities and willing to jointly undertake
the responsibility to repay loans taken by the group from a bank.
• State-run Bank of India has received capital infusion of Rs. 2,257 crore from the government.
"The bank has received infusion of Rs. 2,257 crore from the Government of India, in the form of
Common Equity Tier-1 Capital, which is being kept as Share Application money and would be
alloted after due procedure/ conditions for allotment". The government had unveiled a Rs. 2.11
lakh crore two-year roadmap for strengthening NPA-hit public sector banks, which includes re-
capitalisation bonds, budgetary support and equity dilution.
• The Union Ministry of Communications has launched DARPAN (The Digital Advancement of
Rural Post Office for A New India) to improve quality of service, add value to services and
achieve financial inclusion of un-banked rural population. DARPAN is Information Technology
(IT) modernisation project aimed at realising financial inclusion of un-banked rural population. It
offers core banking services to the account holders.
• The Ministry of Micro, Small and Medium Enterprises (MSME) launched Public Procurement
Portal 'MSME Sambandh' for Public Procurement Portal for MSMEs. The objective of the portal is
to monitor the implementation of the Public Procurement from MSEs by Central Public Sector
Enterprises (CPSEs). It will help MSMEs in participating in the procurement process. Besides, it
will help Ministries and CPSEs can assess their performance in procurement process as
stipulated in Procurement Policy, 2012.
• The Union Government has constituted high-level committee headed by NITI Aayog Chief
Executive Amitabh Kant to address problem of Non-performing assets (NPAs) or stressed assets
in India's power sector. It comprises secretaries in the ministries of power, coal and department
of financial services as it members.
• The Union Cabinet has approved increase in carpet area of houses eligible for interest subsidy
under Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) under Pradhan
Mantri AwasYojana (Urban). The purpose is to further enhance the scope, coverage and
outreach of Scheme. Increasing carpet area in MIG I category of CLSS from existing 90 square
metre (sq m) to up to 120 sq m. Under MIG-I category, 4% interest subsidy is provided to
beneficiaries, whose annual income is between Rs. 6 lakh and Rs. 12 lakh, on loan of up to Rs 9
lakh. Increasing carpet area in MIG II category of CLSS from existing 110 sq m to up to 150 sq
m. Under MIG-II category, beneficiaries with an annual income of Rs.12 lakh to Rs.18 lakh get
an interest subsidy of 3% on loan of up to Rs 12 lakh.
PRIME MINISTER LAUNCHES BHIM-AADHAAR PLATFORM

• 14-Apr-17 : The Prime Minister has launched BHIM-Aadhaar platform from Nagpur. BHIM-
Aadhaar platform is the merchant interface of the BHIM App that has been launched for making
digital payments using the Aadhaar platform. BHIM App was launched in December 2016 to
provide a one-stop solution for all digital payments. The App created a new world record by
registering 1.9 crore downloads within four months since its launch. The newly launched BHIM-
Aadhaar platform will help people to pay digitally using their biometric data like thumb imprint
on a merchant's biometric enabled device like a smart phone or a biometric reader. The App
needs to be installed only by merchants and they need to connect their smart phones to the
biometric scan machine to accept the payments from customers. The customers who want to
pay using this app needs to link Aadhaar number and biometric fingerprint to complete a
transaction.
• Prime Minister has also launched two new offers rewarding BHIM users. Both the schemes will
be administered by Ministry of Electronics and Information Technology (MeitY) and implemented
by National Payments Corporation of India (NPCI). BHIM - Referral Bonus Scheme: Under this
scheme, both the existing BHIM users and the new users will get a cash bonus credited directly
to their account. This scheme incentivizes the existing BHIM users to refer new users to BHIM.
Upon completion of minimum 3 unique successful transactions amounting to Rs 50 to any 3
unique users, the bonus will be paid to both the referrer and the referee.
• BHIM - Cash back Scheme: Under this scheme, merchants will get cash back on every
transaction using BHIM. The merchants can get cash back of up to Rs 300 per month, with each
merchant eligible to win up to Rs 1800 in 6 months.
IMPORTANT RATIOS :
Credit to deposit ratio (CD ratio): This ratio indicates how much of the advances lent by banks
is done through deposits. It is the proportion of loan-assets created by banks from the deposits
received. The higher the ratio, the higher the loan-assets created from deposits. Deposits would be
in the form of current and saving account as well as term deposits. The outcome of this ratio
reflects the ability of the bank to make optimal use of the available resources.
Capital adequacy ratio (CAR): A bank's capital ratio is the ratio of qualifying capital to risk
adjusted (or weighted) assets. The RBI has set the minimum capital adequacy ratio at 9% for all
banks. A ratio below the minimum indicates that the bank is not adequately capitalized to expand
its operations. The ratio ensures that the bank do not expand their business without having
adequate capital.
CAR = Tier I capital + Tier II capital / Risk weighted assets
It must be noted that it would be difficult for an investor to calculate this ratio as banks do not
disclose the details required for calculating the denominator (risk weighted average) of this ratio in
detail. As such, banks provide their CAR from time to time.
Tier I Capital funds include paid-up equity capital, statutory and capital reserves, and perpetual
debt instruments eligible for inclusion in Tier I capital. Tier II capital is the secondary bank capital
which includes items such as undisclosed reserves, general loss reserves, subordinated term debt,
amongst others.
Non-performing asset (NPA) ratio: The net NPA to loans (advances) ratio is used as a measure
of the overall quality of the bank's loan book. An NPA are those assets for which interest is overdue
for more than 90 days (or 3 months).
Net NPAs are calculated by reducing cumulative balance of provisions outstanding at a period end
from gross NPAs. Higher ratio reflects rising bad quality of loans.
NPA ratio = Net non-performing assets / Loans given
Provision coverage ratio: The key relationship in analysing asset quality of the bank is between
the cumulative provision balances of the bank as on a particular date to gross NPAs. It is a measure
that indicates the extent to which the bank has provided against the troubled part of its loan
portfolio. A high ratio suggests that additional provisions to be made by the bank in the coming
years would be relatively low (if gross non-performing assets do not rise at a faster clip).
Provision coverage ratio = Cumulative provisions / Gross NPAs
Return on assets (ROA): Returns on asset ratio is the net income (profits) generated by the bank
on its total assets (including fixed assets). The higher the proportion of average earnings assets,
the better would be the resulting returns on total assets. Similarly, ROE (returns on equity)
indicates returns earned by the bank on its total net worth.
ROA = Net profits / Avg. total assets
ABCD Analysis, (Branch categorization in different parameter as per the following

performance)
A. Budget Achieved
B. 80% & above of the Budget Achieved
C+ 50% & above of the Budget Achieved
C. Above March figure (Last F.Y.)
D. Below March figure (Last F.Y.)
Definition of 'Balance Sheet'
A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a
specific point in time. These three balance sheet segments give investors an idea as to what the
company owns and owes, as well as the amount invested by the shareholders.
The balance sheet must follow the following formula:
Assets = Liabilities + Shareholders' Equity
DIFFERENCE BETWEEN PROFIT AND LOSS ACCOUNT AND BALANCE SHEET
P&L gives you the list of Income and Expenses during a particular period, Whereas Balance sheet
shows you the Financial position of an organization in a specific point of time (date).
What is the difference between current assets and current liability

In accounting, a current asset is an asset which can either be converted to cash or used to pay
current liabilities within 12 months. Typical current assets include cash, cash equivalents, short-term
investments, accounts receivable, inventory and the portion of prepaid liabilities which will be paid
within a year.[1]
The current ratio is calculated by dividing total current assets by total current liabilities. It is
frequently used as an indicator of a company's liquidity, its ability to meet short-term obligations.
In accounting, current liabilities are often understood as all liabilities of the business that are to
be settled in cash within the fiscal year or the operating cycle of a given firm
WHY CAPITAL IS LISTED UNDER LIABILITY OF BALANCE SHEET ?

The confusion regarding owners funds being shown as liability will be automatically vanish if you
treat a business as a en entity separate from its owners. A business requires fund for fixed assets
and working capital. These funds come from two sources, the owners funds and borrowed funds.
Both these are sources of funds that the business has received. Therefore both these are therefore
coming under liability side, which is also descried as sources of funds.
What Are The Benefits Of Registering A Partnership Firm?

ACCORDING TO INDIAN PARTNERSHIP ACT 1932, REGISTRATION OF PARTNERSHIP IS NOT COMPULSORY AS IN THE
CASE OF COMPANY. HOWEVER, REGISTRATION BECOMES COMPULSORY AS UNREGISTERED PARTNERSHIP FIRM
ATTRACTS CERTAIN LIMITATIONS. REGISTRATION OF PARTNERSHIP FIRM CAN BE DONE AT ANY TIME.
EFFECTS OF NON-REGISTRATION:-
1. An unregistered firm cannot enforce its rights against the third parties.
2. The partners of an unregistered firm cannot sue its fellow partners or the firm for the
enforcement of their rights.
3. Partners of the unregistered firm cannot be sued by the firm for exercising its claims.
4. Un registration of a firm does not affect the rights of the third party to sue the firm for the
recovery of dues.
5. Adjustment regarding the amount receivable or payable cannot be made.

Non-Effects of Non-Registration:-An unregistered firm can file a suit for not exceeding Rs.100.
What is ‘paripassu’ charge?
‘paripassu’ charge gives lenders a right to the property on which a charge iscreated in proportion to the
amount lent to the debtor. Let us assume two banks‘X’ and ‘Y’ have lent to a company with the outstanding
at Rs 70 lakh and Rs 30lakh respectively and have ‘paripassu’ charge over the assets hypothecated.
Incase of liquidation of that company, the lenders ‘X’ and ‘Y’ will share the proceeds from liquidation in proportion
to the outstanding loan amount, that is, 70:30
COMPANY
INCORPORATING A COMPANY - APPROVAL OF NAME
The first step in the formation of a company is the approval of the name by the Registrar of
Companies (ROC) in the State/Union Territory in which the company will maintain its Registered
Office. This approval is provided subject to certain conditions: for instance, there should not be an
existing company by the same name. Further, the last words in the name are required to be
"Private Ltd." in the case of a private company and "Limited" in the case of a Public Company. The
application should mention at least four suitable names of the proposed company, in order of
preference. In the case of a private limited company, the name of the company should end with the
words "Private Limited" as the last words. In case of a public limited company, the name of the
company should end with the word "Limited" as the last word. The ROC generally informs the
applicant within seven days from the date of submission of the application, whether or not any of
the names applied for is available. Once a name is approved, it is valid for a period of six months,
within which time Memorandum of Association and Articles of Association together with
miscellaneous documents should be filed. If one is unable to do so, an application may be made for
renewal of name by paying additional fees. After obtaining the name approval, it normally takes
approximately two to three weeks to incorporate a company depending on where the company is
registered
MEMORANDUM AND ARTICLES

The Memorandum of Association and Articles of Association are the most important documents to
be submitted to the ROC for the purpose of incorporation of a company. The Memorandum of
Association is a document that sets out the constitution of the company. It contains, amongst
others, the objectives and the scope of activity of the company besides also defining the
relationship of the company with the outside world.
The Articles of Association contain the rules and regulations of the company for the management of
its internal affairs. While the Memorandum specifies the objectives and purposes for which the
Company has been formed, the Articles lay down the rules and regulations for achieving those
objectives and purposes.
The ROC will give the certificate of incorporation after the required documents are presented along
with the requisite registration fee, which is scaled according to the share capital of the company, as
stated in its Memorandum. A private company can commence business on receipt of its certificate
of incorporation.
A public company has the option of inviting the public for subscription to its share capital.
Accordingly, the company has to issue a prospectus, which provides information about the company
to potential investors. The Companies Act specifies the information to be contained in the
prospectus.
The prospectus has to be filed with the ROC before it can be issued to the public. In case the
company decides not to approach the public for the necessary capital and obtains it privately, it can
file a "Statement in Lieu of Prospectus" with the ROC.
On fulfillment of these requirements, the ROC issues a Certificate of Commencement of Business to
the public company. The company can commence business immediately after it receives this
certificate.
Certificate of Incorporation
After the duly stamped Memorandum of Association and Articles of Association, documents and
forms are filed and the filing fees are paid, the ROC scrutinizes the documents and, if necessary,
instructs the authorised person to make necessary corrections. Thereafter, a Certificate of
Incorporation is issued by the ROC, from which date the company comes in to existence. It takes
one to two weeks from the date of filing Memorandum of Association and Articles of Association to
receive a Certificate of Incorporation. Although a private company can commence business
immediately after receiving the certificate of incorporation, a public company cannot do so until it
obtains a Certificate of Commencement of Business from the ROC.
Distinction Between A Public Company And a Private Company

Following are the main points of difference between a Public Company and a Private Company :-
1. Minimum Paid-up Capital : A company to be Incorporated as a Private Company must have a
minimum paid-up capital of Rs. 1,00,000, whereas a Public Company must have a minimum paid-up
capital of Rs. 5,00,000.
2. Minimum number of members : Minimum number of members required to form a private
company is 2, whereas a Public Company requires at least 7 members.
3. Maximum number of members : Maximum number of members in a Private Company is
restricted to 50, there is no restriction of maximum number of members in a Public Company.
4. Transferability of shares : There is complete restriction on the transferability of the shares of
a Private Company through its Articles of Association , whereas there is no restriction on the
transferability of the shares of a Public company
5 .Issue of Prospectus : A Private Company is prohibited from inviting the public for subscription
of its shares, i.e. a Private Company cannot issue Prospectus, whereas a Public Company is free to
invite public for subscription i.e., a Public Company can issue a Prospectus.
6. Number of Directors : A Private Company may have 2 directors to manage the affairs of the
company, whereas a Public Company must have atleast 3 directors
7. Commencement of Business : A Private Company can commence its business immediately
after its incorporation, whereas a Private Company cannot start its business until a Certificate to
commencement of business is issued to it.
What is the SARFAESI Act?

The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002, allows banks and financial institutions to auction properties (residential and commercial)
when borrowers fail to repay their loans. It enables banks to reduce their non-performing assets
( NPAs) by adopting measures for recovery or reconstruction.
Relation between Inflation and Bank interest Rates

Now a days, you might have heard lot of these terms and usage on inflation and the bank interest
rates. We are trying to make it simple for you to understand the relation between inflation and bank
interest rates in India.
Bank interest rate depends on many other factors, out of that the major one is inflation. Whenever
you see an increase on inflation, there will be an increase of interest rate also.
What is Inflation?
Inflation is defined as an increase in the price of bunch of Goods and services that projects the
Indian economy. An increase in inflation figures occurs when there is an increase in the average
level of prices in Goods and services. Inflation happens when there are less Goods and more
buyers, this will result in increase in the price of Goods, since there is more demand and less supply
of the goods.
What is a Repo Rate?

Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate
at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get
money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more
expensive.
What is a Reverse Repo Rate? How will it affect the Bank Loan interest rates
Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks.
Banks are always happy to lend money to RBI since their money are in safe hands with a good
interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to
this attractive interest rates. It can cause the money to be drawn out of the banking system.
Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo Rate and Reverse Repo rate
our banks adjust their lending or investment rates for common man.
Bank Rate
This is the rate at which RBI lends money to other banks (or financial institutions. The bank rate
signals the central bank’s long-term outlook on interest rates. If the bank rate moves up, long-term
interest rates also tend to move up, and vice-versa. Banks make a profit by borrowing at a lower
rate and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate , the
interest that a bank pays for borrowing money (banks borrow money either from each other or
from the RBI) increases. It, in turn, hikes its own lending rates to ensure it continues to make a
profit.
Call Rate
Call rate is the interest rate paid by the banks for lending and borrowing for daily fund requirement.
Since banks need funds on a daily basis, they lend to and borrow from other banks according to
their daily or short-term requirements on a regular basis.
CRR
Also called the cash reserve ratio, refers to a portion of deposits (as cash) which banks have to
keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank deposits is
totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby,
inflation by tying their hands in lending money
SLR
BESIDES THE CRR, BANKS ARE REQUIRED TO INVEST A PORTION OF THEIR DEPOSITS IN GOVERNMENT SECURITIES
AS A PART OF THEIR STATUTORY LIQUIDITY RATIO (SLR) REQUIREMENTS. WHAT SLR DOES IS AGAIN
RESTRICT THE BANK’S LEVERAGE IN PUMPING MORE MONEY INTO THE ECONOMY.
If you are appointed as Branch Manager in the branch which is worst performing, what steps would
you initiate to turn around the Branch?
The Branch Manager shall adopt strategies depending on the specific problems pertaining to that Branch
and the environment. However, some general strategies could be:
Bank’s profitability basically depends on the spread between cost of deposits and yield on advances
CASA deposits should be improved to reduce cost of deposits
To increase high-value advances and improve yield on advances
To improve non-interest income through cross selling and others
To plug income leakage
Reducing overhead costs that can be cut
To concentrate on NPA/AUC recovery and collect un-debited interest and amounts from interest
not collected account
To speed up legal actions under SARFAESI Act and other means
What is cross selling?

Cross selling a popular concept in banks. Banks sell insurance and mutual products to their own
customers. By cross-selling, banks earn commission from insurance companies and mutual funds. Banks
enter into agreements with insurance companies and asset management companies for cross-selling. Within
their own products, banks can cross-sell by the following ways: 1. Selling loan products
to depositors, 2. offering SB/current accounts to borrowers, etc.
What is CIBIL?
CIBIL stands for Credit Information Bureau (India) Limited. CIBIL was incorporated in 2000 with an aim to
summarize and share credit reports among its members Its original promoters were State Bank of India,
HDFC, Dun & Bradstreet and Trans Union. Now, the shareholding is more diversified with several more
stakeholders, like ICICI Bank, BOB, IOB, UBI, PNB, Hong Kong Bank etc, included. CIBIL provides credit
information on commercial and individual borrowers to lenders, like, banks, NBFCs and others. The
information is provided for a fee. In credit markets, data sharing is very important between lenders and borrowers.
The members of CIBIL are mostly banks, non banking financial institutions and credit card
companies. The ultimate aim of this CIBIL is to help its members to evaluate the risk involved in a
particular loan through its credit score and CIR.
Whats a CIBIL credit score and CIR?

Through the information received from its constituent members, CIBIL compiles a report (CIR
report) containing the loan history of a particular person. For example, if a person had borrowed a
gold loan from PNB and a housing term loan from ICICI, these two entries will be present in his
CIR. This will be helpful for the next bank {to which he had applied for a loan}to assess whether
the person will be able to repay the loan as he already has two loans left to pay out.
The CIBIL score is a 3 digit numeric score that ranges from 300 to 900 {the higher the better} and
it is calculated based on the kind of loans the person has borrowed and the time he has taken to
repay the loan. For example a person takes very little time to repay the loan will be given a far
better score than the person who doesnt repay his loan at all.
What do you know about ASBA?
ASBA means “Application Supported by Blocked Amount”. It is a term used in capital markets. ASBA is an
application containing an authorization to block the application money in the bank account, for subscribing to
an issue – an initial public offer or follow-on-offer. If an investor is applying through ASBA, his/her
application money shall be debited from the bank account only if his/her application is selected for
allotment after the basis of allotment is finalized. All investors can apply through ASBA in all public
issues.
Who will benefit the most when rupee is rising?

When rupee is appreciating against major currencies, like, US dollar, Euro and Pound, importers
in India will benefit because importers need to pay lesser rupees for goods and services
Who are Business Correspondents (BCs)?

With a view to ensuring greater financial inclusion and increasing the penetration of banking
services to vast sections of the underprivileged sections of the society, RBI a few years back
allowed banks to use the services of well-established NGOs, SHGs, MFIs, Post Offices, and others as
intermediaries. With the help of the intermediaries, banks can extend their services through the use
of Banking Correspondent model.
In September 2010, RBI allowed banks to appoint companies as Business Correspondents who can
sell banking products to vast sections of rural and semi-urban population. With this measure,
companies like, HUL, ITC and Bharti Airtel, can be appointed as BCs by banks an in turn these
companies will provide banking services to the people.
What is financial inclusion?

Financial inclusion is a process whereby easy access to banking services is provided by banks to weaker
sections and low-income groups. As part of financial inclusion, commercial banks have to offer, at
affordable cost and in a fair manner, financial products and services to these underprivileged sections. As per RBI
guidelines, banks have to provide banking services through a banking outlet in every village having
a population of over 2,000. The banking services could be provided through any of the various
forms of models, such as, Business Correspondents and not necessarily through a brick-and-mortar
branch
What is Reverse Mortgage and how does it work?

A reverse mortgage is a loan extended to senior citizens against the security of a house property
owned by them. The loan is given in lump sum or in installments and it provides important cash
flow to the senior citizens who require money during their old age. They continue to be the owners
of the house and occupy it. The loan obligation is deferred till the death of the homeowner. The
legal heirs of senior citizens can repay the loan amount after the death of the borrower and the
bank will release the security on the house property.
How is RBI controlling inflation in India?

To control inflation, RBI has been raising CRR, repo and reverse repo rates gradually since February 2010. With
such measures, money supply will be restricted and money will become costlier. In a rising interest rate scenario
,companies will be reluctant to start new projects which may impact overall growth. As a result, RBI
always tries to maintain a balance between growth and price stability
Who has created Rupee Symbol?
The new symbol for Indian Rupee was designed by Dr Dharma lingam Udaya Kumar, a graduate from IIT,
Bombay. He is working as a faculty in IIT, Guwahati.
What is money laundering?

Money laundering is a process whereby criminals use banking/financial system to legitimize their ill-
gotten money. Many terrorists and drug traffickers have been using banking channels as a conduit
to transfer money for their terrorist/illegal activities.
What is the definition of a willful defaulter?

If any one of the following criteria is satisfied, such an occurrence can be termed as
‘willful default’
1) The borrower has defaulted even though he/she has the capacity to honor the payments
2) The borrower has defaulted on the payments and has not utilized the funds for the purpose
they were sanctioned and diverted the funds
3) The borrower has defaulted on the payments and has siphoned off the funds and the funds are
not available in any other asset form
Sources: various websites, like, RBI, SEBI, newspapers, etc. Disclaimer: The above is for
information purpose. Though every care has beentaken to provide authentic information on the
above questions, readers have todo their own diligence and the author is not responsible for any
mistakes. However, if you find any mistakes, please bring it to my notice.
Q What is KYC ?
KYC is an Acronym for “ Know Your Customer”, a term that is used to describe the process of
customer identification, verification of the social and financial credentials of the customers. KYC
enables the Bank to know and understand its customers and their financial dealings so as to serve
them better, setting up of Threshold Limit and prudently mitigate the risks of Money Laundering
and Financing of Terrorism.
KYC has two components- Identity and Address. While identity remains the same, the address may
change and hence the Bank is required to periodically update its records.
Bank need to obtain sufficient information, whether regular or occasional, necessary to establish, to
its satisfaction, the identity of each new customer, and the purpose and nature of the intended
Banking relationship.
Q Why is KYC required?

The objective of the KYC guidelines is to prevent Bank from being used, intentionally or
unintentionally by criminal and anti social elements for money laundering.
KYC procedures enable Bank to know and understand the customers and their financial dealings
better which in turn help us to manage and circumvent the risks of Money Laundering and
Financing of Terrorism prudently.
Q When will the Bank require KYC to be done?

The Bank will carry out KYC procedure for:-
• Opening a new account
• Opening a subsequent account where documents as per current KYC standards have not
been submitted while opening the initial account
• Opening a Locker facility
• Issue of ATM/ Debit/ Credit cards
• Periodical updation
• Non- account holders approaching the bank for high value one-off transactions.
Bank also seeks information/ additional information from existing customers based on conduct of
the account.
Q What is First and foremost step under KYC ?

The First and foremost element is “Customer Acceptance”
These guidelines are the Basis of acceptance of individuals and entities as Customers of Oriental
Bank of Commerce i.e. the governing criteria for entering into and maintaining customer
relationships or terminating the same. At the first stage itself the Bank official has to talk to the
person and shall know/ understand the customer and their financial dealings, which in turn shall
help in managing risks more prudently.
Customer Due Diligence is the first step and this result in Risk Perception/ assessment about the
customer and accordingly customer categorization shall be done at the Branch level.
Q Who is a Customer under KYC Policy?

A customer is defined as:
• A person or entity that maintains an account and/or has a business relationship with the
bank
• One on whose behalf account is maintained (the beneficial owner)
• Beneficiary of transactions conducted by professional intermediaries
• Any person or entity connected with a financial transaction which can pose significant
reputation or other risks to the Bank, a wire transfer or issue of a high value demand draft
as a single transaction.
Q Why is classification of customer necessary under KYC Policy?

• So that the KYC Policy and its implementation does not become too restrictive resulting in
denial of banking services to the general public, especially to those who are financially or
socially disadvantaged.
• To avoid disproportionate cost to the bank and a burdensome regime for customers.
Q What is the process of Classification of Customers?

The risk categorization of customers is a two step process. Customers and prospective customers
are first grouped in one of the following categories:
• Individuals
• Private Organizations, Private Institutions, Public and Private Limited Companies, Firms,
Trusts, Charities, NGOs, HUFs etc.
• All Government Departments, Government owned companies, Regulators and Statutory
bodies etc.
• Non-face-to-face customers
After the initial grouping, the second level of categorization is done on the basis of the level of
Money Laundering (ML) risks that the Bank is exposed to by a Customer. This depends on:
Type of the customer (individual or an entity)
1. Social and economic status
2. Nature of business
3. Type of product / service availed by the
customer
4. Country where the Customer is domiciled.
Q What are the risk categorization adopted by our Bank?

Risk categorization of Customers shall comprise of four types:-
1 Low C1
2 Medium C2
3 High C3
4 Very High C4
Q What about categorization of other Groups?

• All Government Departments, Government owned companies, Regulators and Statutory
bodies etc. are to be categorized as Low risk
• Non-face-to-face customers are to be categorized as very High risk
Q What is the usefulness of risk categorization?

Based on the risk assessment levels bank has to take extra precautions and additional
documentation to satisfy themselves regarding the identity of customers.
C-1 Customers: In such cases, only the basic requirements of verifying the identity and location of
the customer are to be established.
C-2 Customers: Besides, verifying the identity and location of the customer, a brief profile of
these customers should also be prepared (OF 5A or OF 1A)
C-3 Customers: Enhanced due diligence measures should be applied in establishing identity and
location of the prospective customer and detailed profile should be prepared.
C-4 Customers: Intensive due diligence measures should be applied and very detailed profile
should be prepared.
Q What is Customer Profile?

Customer profile shall be prepared in case of all the new accounts and in case of existing accounts
depending on the risk perceived/category of the customer.
Customer Profile shall mainly contain information on the :
• Customer’s Identity
• Social & Financial Status of the customer,
• Nature of Business Activity of the Customer,
• Information about his client’s Business,
• Location(s) of the customers’ Clients etc
Q What is the most important step by which a customer becomes the customer of
OBC?
The risk category of the prospective customer should be identified BEFORE the interview so that the
interviewing officer should know
• the type of profile (brief or detailed) required to be prepared
• extent of due diligence required
• financial information to be collected
“No account should be opened without carrying out the interview.”
Q For what type of customers Bank shall not open account?

Accounts should not be opened:
• In the name of persons with known criminal background or banned entities such as
individual terrorists or terrorist organizations
• In anonymous or fictitious names
• In the name of those with dubious reputation as per public information available
• Where the bank is unable to verify the identity or obtain documents in line with the
Customer Acceptance Policy due to
non-cooperation of the customer
non reliability of data/information furnished to the bank
• Politically Exposed Persons of foreign origin- Account can be opened after taking approval of
HO.
Q Can the bank close an account if the account holder does not provide the necessary
information/ documents to fulfil the bank’s norms?
If an account holder does not provide the bank with the information bank require bank may
consider closing the account or terminating the banking/ business relationship after due notice,
explaining the reasons for taking such a decision.
• Case for termination of customer relationship shall be prepared only on account of non-
cooperation by the customer or non-reliability of the documents / information furnished to
the Bank.
• The Branch shall prepare case on the prescribed format and send the same to the
concerned Regional Office alongwith recommendations for closure of the account duly
signed by the Branch Incumbent.
• The Regional Head only shall decide about the termination of customer relationship i.e. after
going through the details of each case and his decision shall be guided by the severity of
each case, risk category and compliance of the KYC Policy.
• The Regional Office shall convey its decision to the branch and in case of termination of
customer relationship the account shall be closed only after due notice of 15 to 30 days has
been served by the Regional Office to the customer explaining therein the reason of such
decision.
• In case the customer turns up within the notice period (i.e. before closure of his account)
and complies with the KYC Policy of the Bank, the decision to continue customer relationship
with that customer shall also be taken by the Regional Head only.
Q Is Introduction necessary for opening of accounts?

Since introduction is not necessary for opening of accounts under PMLA Rules of Reserve Bank of
India’s extant KYC instructions, the Branches should not insist on introduction.
Q What Documents are acceptable for establishing identity of a person under KYC ?
Documents for establishing identity of a person may include:
• Valid Passport
• Valid PAN Card
• Valid Driving License
• Valid Voters ID Card
• Letter issued by UIDAI containing details of name, address and Aadhaar number
• Job card issued by NREGA duly signed by an officer of the State Government.
Q Is the verification of the photo copies submitted by the customers necessary?

Yes, Correctness of the documents should also be verified with the Originals.
Q Is the determination of Beneficial owner required for opening of account?

Yes, The term “beneficial owner” has been defined as the natural person who ultimately owns or
controls a client and /or the person on whose behalf the transaction is being conducted, and
includes a person who exercises ultimate effective control over a Juridical person i.e. firm,
companies, trusts, associations, etc. While opening the accounts of Legal Persons/entities i.e
firms/companies/trusts etc, the true identity of the beneficial owner/s in terms of above mentioned
circular should be established.
The customer profiles all the beneficial owners as well as of authorized signatories be
prepared on OF-5A or OF-1A as applicable
In Customer Identification Form (OF 5A OF-1A), add the words ‘Beneficial Owner’ with
Authorized signatory so as to read as
“Customer/Authorized signatory/Beneficial Owner’s Details”.
Obtain KYC documents, photograph of all beneficial owners/authorized signatories.
Prepare Cust ID of all the beneficial owners as well as of authorized signatories.
While opening the account of a legal person/entity, in Finacle, the profiles of all beneficial
owners/authorized signatories should be attached as associated party details. (A details)
Following three codes have been added in designation code in the system in field
“Designation code” i.e
Authorized signatory
Beneficial owner
Authorized signatory & beneficial owner
Ensure to assign appropriate designation code to each profile. Assigning a correct code is
mandatory.
Q Who are “Money Mules” ?

“Money Mules” can be used to launder the proceeds of fraud schemes (e.g., phishing and identity
theft) by criminals who gain illegal access to deposit accounts by recruiting third parties to act as
“money mules.” In some cases these third parties may be innocent while in others they may be
having complicity with the criminals.
In a money mule transaction, an individual with a bank account is recruited to receive cheque
deposits or wire transfers and then transfer these funds to accounts held on behalf of another
person or to other individuals, minus a certain commission payment. Money mules may be recruited
by a variety of methods, including spam e-mails, advertisements on genuine recruitment web sites,
social networking sites, instant messaging and advertisements in newspapers. When caught, these
money mules often have their bank accounts suspended, causing inconvenience and potential
financial loss, apart from facing likely legal action for being part of a fraud. Many a times the
address and contact details of such mules are found to be fake or not up to date, making it difficult
for enforcement agencies to locate the account holder.
Q Who are Walk-in Customers ?

A walk-in customer is a non-account based customer, and in case of transactions carried out for
him, where the amount of transaction is equal to or exceeds rupees fifty thousand, whether
conducted as a single transaction or several transactions that appear to be connected, the
customer's identity and address should be verified.
However, if a bank has reason to believe that a customer is intentionally structuring a transaction
into a series of transactions below the threshold of Rs.50,000/- the bank should verify identity and
address of the customer and also consider filing a suspicious transaction report (STR) to FIU-IND.
In case of cash transactions below Rs.50,000/- carried out by a non-account based customer that is
walk-in-customer, full details of the customer, including complete address, telephone number etc,
should necessarily be obtained .
NOTE: In terms of Clause (b) (ii) of sub-Rule (1) of Rule 9 of the PML Rules, 2005 banks and
financial institutions are required to verify the identity of the customers for all international money
transfer operations
Q Is it Mandatory to send Letter of Thanks to the customer and the introducer?

In new system UDBHAV, this is send by CASA BACK Office. Letter of thanks to the customer and
the introducer be sent invariably on the date of opening of the account itself by Speed Post / UPC
and necessary remarks/date in this regard be recorded on the Account Opening Form under
signatures. The format of the Letter of Thanks is already provided the system.
In case the letter returns undelivered then immediate caution be marked on the account and
necessary steps be taken to safeguard Bank's interest.
Cheque Book / loose cheque be issued to the customer only, where KYC norms are complete, after
obtaining request letter. Subsequent cheque books shall be issued after obtaining request on the
prescribed requisition slip as per instructions.
Q Once KYC requirement are complied with while opening the account, can the Bank
ask for KYC compliance from the account holder again?
Yes, To ensure that the latest details about the customer are available, branches are advised to
periodically update the customer identification (including photograph/s) after the account is opened.
Full KYC exercise will be required to done at least every TWO years for high Risk Individuals and
entities. (C-3 and C-4)
Full KYC exercise will be required to done at least every TEN years for low Risk Individuals and
entities. (C-1)(Earlier 5 years). But Every three years Positive confirmation i.e. Obtaining KYC
related updates through e-mail/ letter/ telephonic conversation/ forms/ interviews/ visits etc) will be
required
Full KYC exercise will be required to done at least every EIGHT years for Medium Risk Individuals
and entities.(C-2) (Earlier 2 years) But Every two years Positive confirmation i.e. Obtaining KYC
related updates through e-mail/ letter/ telephonic conversation/ forms/ interviews/ visits etc. will be
required
Fresh Photographs will be required to be obtained from minor customers on becoming major.
Q What is the relevance of Monitoring of Transactions ?

Ongoing monitoring is the essential element of effective KYC procedure. Without regular monitoring
of transactions, all KYC procedures and process will be useless. This is the most important of the
policy that helps banks combat money laundering.
By understanding the normal and reasonable activity of the customer, the banker can easily identify
the transactions falling outside the regular pattern. This can reduce the risk of money laundering
greatly. The extent of monitoring depends on the initial risk categorization of the customer at the
time of initial customer acceptance and preparation of the profile.
In case transactions are noticed in variance with the profile or do not match the customer profile,
the account holder should be contacted for further details to the satisfaction of the branch.
If required, profile should be revised to reflect any change in the status.
Q Is collection of cheque a part of Monitoring?

Collection of cheques in clearing is one area requiring close monitoring. The branch should not
collect any cheques that
they cannot identify with the normal and reasonable activity of the customer, or
when the amount involved is not as per the profile of the customer prepared at the time of
opening of the account.
In all such cases branches must call the customer and ask him to explain the transaction. Such
cheques should not be collected and if collected, proceeds should not be released unless the
customer gives satisfactory evidence for it. Non-collection or non-release of payment should be
informed to the customer at the earliest.
Q What type of transactions are termed suspicious activities/ transactions ?

Examples of suspicious activities/ transactions are activities not consistent with the customers'
business
Corporate accounts where deposits or withdrawals are primarily in cash rather than cheques
Corporate accounts where deposits and withdrawal cheques/TTS/inward remittances/any
other means received from/made to sources apparently unconnected with corporate
business/dealings
Unusual applications for DD/TT/PO against cash
Accounts with large volume of credits through DD/TT/PO whereas the nature of business
does not justify the same
A single substantial cash deposit composed of many high denomination notes
Frequent exchange of small denomination notes for large denomination notes or vice versa
Retail deposit of many cheques but rare withdrawal for daily operations
Examples of Unusual Activities
An account of a customer who does not reside/have office near the branch even though
there are bank branches near his residence/office
A customer who often visits the safe deposit area immediately before making deposits,
especially deposits just under the threshold level
An account that has frequent deposits of large amounts of currency bearing the label of
other banks
Funds coming from the list of countries/centres which are known for money laundering
Customer who provides insufficient or suspicious information

A customer/company who is reluctant to provide complete information regarding the
purpose of business, prior banking relationships, officers or directors, or its locations, in this
case the account need not be opened
A customer/company who is reluctant to reveal details about its activities or to provide
financial statements
A customer who has no record of past or present employment but makes frequent large
transactions
Certain suspicious fund transfer activities

Sending or receiving frequent or large volume of cross border remittances- whereas regular
customer transaction for Exporters and Importers are not to be included in this list.
Receiving large TT/DD remittances from various centres and remitting the consolidated
amount to a different account/centre on the same day leaving minimum balance in the
account
Certain employee arousing suspicion

An employee whose lavish lifestyle cannot be supported by his or her salary
An employee who is reluctant to take a vacation
An employee who is associated with mysterious disappearances or unexplained shortages of
significant amount of bank funds
Negligence of employees/wilful blindness is reported repeatedly
Q What are the reports to be submitted under KYC AML Policy ?

Under the Prevention of Money Laundering Act (PMLA) every banking company has to submit
reports to the Financial Intelligence Unit of India (FIU-IND), whenever:
Any large cash transaction takes place
Any suspicious transaction takes place
Any transaction involving counterfeit currency takes place
The PMLA also requires banks to maintain records for a period of 10 years of the following:
1. Record of identity of clients
2. Record of all transactions reported to FIU-IND
Q What is CTR?
CTR is Cash Transaction report. This report contains:
All cash transactions of the value of more than Rs. 10 Lacs or its equivalent in foreign
currency, or
A series of cash transactions individually below Rs. 10 Lacs or its equivalent in foreign
currency but integrally connected to each other where such transactions have taken place
within a month
Frequency: Monthly, on or before 15th of every month
Q What is STR?
STR is Suspicious Transaction report. This report contains:
All suspicious transactions whether or not made in cash.
IBA has circulated a list of 61 indicative alert indicators which are system generated. All 61
alerts are to be implemented by March 2014 in Phases.
KYC-AML Cell at Inspection Deptt. Corporate office, circulated the list of transactions under
these 61 alerts to all ROs for their looking into the matter and confirmation, if any
transaction is to be reported under STR.
Frequency: Should be furnished within 7 days of arriving at a conclusion that any transaction,
whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature
Q What is CCR?
CCR is Counterfeit Currency Reports. This report contains:
All cash transactions where forged or counterfeit currency notes or bank notes have been
used as genuine or where forgery of a valuable security or a document has taken place
facilitating the transactions.
Frequency: As and when detected.
What is the meaning of FDI ?

The Foreign Direct Investment means “cross border investment made by a resident in one
economy in an enterprise in another economy, with the objective of establishing a lasting interest
in the investee economy.
India is the 3rd largest economy of the world in terms of purchasing power parity and thus looks
attractive to the world for FDI. Even Government of India, has been trying hard to do away with
the FDI caps for majority of the sectors, but there are still critical areas like retailing and insurance
where there is lot of opposition from local Indians / Indian companies.
DISCLAIMER: The contents in this booklet are based on Information

collected from various sources which we believe to be reliable.
However, we do not hold ourselves responsible for any short
comings or error therein.

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ALL INDIA ORIENTAL BANK OFFICERS’ ASSOCIATION

Study Material – Promotion Test 2018

With best wishes,

R.L. Grovar D.K. Pauddar S. S. Shishodia

Chairman President General Secretary

Our beloved institute OBC Zindabad

2 Important Banking Indicators 4

3 Important point from Bank’s Circulars 5

4 Gist of Loan Policy 25

5 Retail Credit Products 47

6 Deposit Products (SB/CA/TD) 73

8 Recovery & NPA Norms 130

9 Priority Sector 156

10 CGTMSE/CERSAI/ CIBIL ETC. 162

11 MSME Credit Products 179

12 Some Important Points / Questions 204

“TO BE A CUSTOMER FRIENDLY PREMIER BANK COMMITTED TO

• Provide quality, innovative services with state-of-the-art technology in line with

Managing Director & CEO Shri Mukesh Kumar Jain

Foundation Day 19th February

PRESS RELEASE HIGHLIGHTS OF FINANCIAL RESULTS FOR QUARTER ENDED 31st

• Housing Loans with repayment period upto 40 years

Important Banking Indicators

Marginal Cost of Funds Based Lending Rates

MCLR (OBC) w.e.f. w.e.f w.e.f w.e.f

• Cir No. CS&P/60/2017-18/773 – Opening of Separtate Account or Escrow AC as

• Circular No. IBD/ 19/17-18/231 Date: 27.06.2017 - REG: ADDITIONAL CAPITAL

• Cir No. HO/DBD/2017-18/16/889 dated 20-01-2018 – Guidelines for protecting

• Cir No. HO/LCC/2017-18/46/734 dated 08-12-2017 – Guidelines for protecting

• Cir No. HO/cS&P/25/2017-18/287 date 10-07-2017 – Service Charges – (1) Grace

Amount above Rs.1.00 lac or above 1000 number of

• Cir No. HO:AB&FI:52 -2017-18:679 date 20-11-2017 – Corrigendum-Modification/ Revised

• Cir No. CIRCULAR NO. HO/ RMD/31/2017-18/ 355 DATE: 01.08.2017 –

• Cir No. CIRCULAR NO. HO/ i&c/2017-18/ DATE: 18.01.2018 - IMPERSONATION

• Cir No. CS&P/69/17-18/895 date 25-01-2018 – Requirement Company Seal and

• Cir No. RMD/ciso/21/17-18/247 date 01-07-2017 – CYBER SECURITY-PETYA

• Cir No.HO/AB&FI/27/2017-18/date 19-08-2017 – Direct Benefit Transfer (DBT) and

• Cir No.HO/BB/GBC/103/17-18 date 11-12-2017 – Submission of Digital Life Certificates (

• Cir No.HO AB & Fl : 6 3 :2017-18 date 10-01-2018 - Differential Rate of Interest

• Cir No.HO/RMD/84/2017-18 date 19-12-2017 – DUE DILIGENCE ETC UPDATED

CREDIT INFORMATION REPORTS BY BANKS

VERIFICATION & AUTHENTICATION OF THE DOCUMENTS SUBMITTED BY THE BORROWER/

DUE DILIGENCE (SOP) TO BE EXERCISED BEFORE DISBURSEMENT OF TERM LOAN

GUIDELINES ON CREDIT INFORMATION REPORTS OF THE BORROWERS PROVIDED BY THE

MANDATORY OBTENTION OF AUDITED FINANCIAL STATEMENT OF THE BORROWER(s)

category for Tax Audit as per Statement

Income Tax act.

• Cir No.HO/DBD/15/2017-18/882 date 20-01-2018 – ESTABLISHING OF "ELECTRONIC

• Cir No.HO/ acct/6/2017-18/ 246 date 28-06-2017 - Implementation of Goods &

• Cir No.HO/ rmd/95/ 836 date 06-01-2018 - INCORPORATION OF

• Cir No.HO/ACCT/18/17-18/694 date 29-11-2017 – Income Tax guidelines regarding

• Cir No. HO/INSU (TPP)28/2017-18/803/ dated 30-12-2017 –REVISED ORIENTAL BANK

Age Bands 3 bands: 0-40 , 41-60 and 64 and above

the same if not acceptable.

option, the Insured shall be entitled to

premium commensurate with the risk covered during such period.

request for Free look cancellation.

• CiR No. HO/Udbhav/11/2017-18/872 dated 17-01-2018 – REVISED GUIDELINES

• CiR No. HO/msmE/24/2017-18/327 dated 19-07-2017

Current Ratio/Adjusted Current Ratio: 1.17:1 (for working capital limits up to f

• 1.17:1 (for working capital limits above f 5.00crore)

Debt Equity Ratio/ Adjusted DE ratio:- Upto 3:1

• CiR No. HO/BB/40/2017-18/279 dated 07-07-2017 – OPENING OF CURRENT