VIJETA-2020 (विजेता) @MDI March2020 PDF

मनु भाकर
पदोन्नति परीक्षा हेिु संकेिात्मक अध्ययन सामग्री

This booklet is intended for internal circulation
only, and may not be distributed externally or
reproduced for external distribution in any form.
Management Development Institute

Dear Colleagues,
The promotion process is around the corner and there is a lot

of excitement amongst all aspirants. This is also the time when
‘Team MDI’ joins hands and braces up for yet another new version of
‘Vijeta’– March-2020, the handy compendium for the candidates for
promotion, as also, for others who would be keen to refresh their
knowledge base in various functional areas in the Bank.
It touches one’s soul when you dwell on the line uttered by Gandhiji
- "Live as if you were to die tomorrow. Learn as if you were to live
forever". Indeed knowledge transcends the mortal life and lives for
eternity. It begets both respectability and self-respect.
We at MDI are committed to disseminating knowledge amongst

the ‘Star Fraternity’ with excellence and best practices that may help
all the readers to enrich themselves, as also, discharge their duties
with devotion.
This version of ‘Vijeta-March 2020’ incorporates the latest updates,

enriched and expanded contents and innovative ways to make the
process of learning both interesting and user-friendly. We fervently
hope that it will succeed in adding value to the knowledge of the
readers. We shall be glad to receive any suggestions from you.
With best wishes,

Stay safe.
Vivek Prabhu
Deputy General Manager & Principal
Dear Reader,
First of all, please accept our gratitude that your acceptance to

our endeavor has led us to present the March-2020 edition of the
book “Vijeta” - our efforts to equip the staff fraternity with
the desired knowledge & the required skills to meet the objective
pattern of our promotion tests/processes.
It has benefitted the aspirants in the past & we are confident,

the new & updated edition shall aid similarly in the ensuing
promotion process. It also serves as a handbook of reference for the
job needs.
With best compliments,
-Team MDI
Do write to us at-
Bank of India
Management Development Institute
Plot No. 30, Sector 11, CBD Belapur, Navi Mumbai-400614
Ph. No.-022- 27594110, 27572299, 27572529, 27572230
mdi.belapur@bankofindia.co.in
INDEX
1. KYC/AML/CFT Page 1
2. Banking Law & Practice Page 20
3. Risk, Capital & Fund Management Page 43
4. F.I., Priority Sector & Agriculture Page 55
5. MSME Page 107
6. Retail Credit Page 157
7. Commercial & Institutional Credit Page 177
8. Credit-Monitoring & NPA Management Page 193
9. Foreign Exchange Page 221
10. Deposits Page 227
11. राजभाषा - Official Language Page 253
12. ITES/ADC/Card Products Page 261
13. Sample Questions Page 402

KYC/AML/CFT
The objective of Know Your Customer (KYC) / Anti-Money Laundering (AML)
Measures/ Combating of Financing of Terrorism (CFT) guidelines is to prevent
the banks being used, intentionally or unintentionally, by criminal elements
for money laundering or terrorist financing activities. The KYC procedures
also enable banks to know/understand their customers and their financial dealings
better which in turn help them manage their risks prudently.
KNOW YOUR CUSTOMER (KYC)

A ‘Customer’ is defined as:
 a person or entity that maintains an account and/or has a business
relationship with the bank;
 a person on w h o s e b e h a l f t h e a c c o u n t i s m a i n t a i n e d ( i.e. the
beneficial owner).
 A beneficiary of transactions conducted by professional intermediaries,
such as Stock Brokers, Chartered Accountants, Solicitors etc. as
permitted under the law, and
 any person or entity connected with a financial transaction which can
pose significant reputational or other risks to the bank, say, a wire
transfer or issue of a high value demand draft as a single transaction.
KYC Policy:
Banks are required to frame their KYC policies incorporating the following
four key elements:
• Customer Acceptance Policy;
• Customer Identification Procedures;
• Monitoring of Transactions; and
• Risk Management.
Customer Acceptance Policy (CAP)
a. Every Bank has to develop their CAP with explicit guidelines as under:-
 No account is opened in anonymous or fictitious/benami name.
 Parameters of risk perception in terms of the nature of business
activity, location of customer and his clients, mode of payments,
volume of turnover, social and financial status etc. should be defined
for categorization of customers into low, medium and high risk.
 Documentation/information requirements to be collected from
different categories of customers depending on perceived risk
and keeping in mind the requirements of PML Act, 2002 and
instructions/guidelines issued by Reserve Bank from time to
time.
 Not to open an account or close an existing account where the bank
is unable to apply appropriate customer due diligence measures
including verification of identity/intention of required documents, etc.
 Circumstances, in which a customer is permitted to act on behalf of
another person/entity, should be clearly spelt out in conformity with
the established law and practice of banking.
 Cross verification of identity of customers that does not match
with any person with known criminal background or with banned
entities such as individual terrorists or terrorist organizations,
etc.
Vijeta – March 2020 Page | 1

b. Banks may prepare a profile for each new customer based on risk
categorization with relevant information relating to customer’s identity,
social/financial status, nature of business activity, details of his clients’
business and their location etc. This information should be treated as
confidential.
c. Individuals (other than High Net worth) and entities whose identities and
sources of wealth can be easily identified and transactions in whose
accounts by and large conform to the known profile may be categorized as
low risk. Customers that are likely to pose a higher than average risk to
the bank should be categorized as medium or high risk.
d. The customer acceptance policy should not be too restrictive and must
not result in denial of banking services to general public, especially to
those, who are financially or socially disadvantaged.
e. KYC Procedure shall be followed during the periodic updation
f. Re-KYC exercise shall be carried out as per profile/category of the
customer.
Customer Identification Procedures (CIP)
 Customer identification means identifying the customer and
verifying his/her identity by using reliable, independent source
documents, data or information.
 The Policy approved by the Board should explicitly spell out the
Customer Identification Procedure to be carried out at different
stages i.e. while establishing a banking relationship, carrying out a
financial transaction or when the bank has a doubt about the
authenticity/veracity or the adequacy of the previously obtained
customer identification data, etc.
 Banks need to obtain such information that are sufficient to
establish to their satisfaction the identity of each new customer
irrespective of the nature/status of the people and taking into
account the risk perception involved.
 In case of any room of suspicion of money laundering
or terrorist financing or when other factors give rise to a belief that
the customer does not, in fact, pose a low risk, banks should
carry out full scale customer due diligence (CDD) before opening an
account. In case of an existing customer in case of suspicion, banks
should review the due diligence measures including verifying
again the identity of the client and obtaining information on the
purpose and intended nature of the business relationship.
 In case of close relatives e.g. wife, son, daughter and parents, etc.
who live with their husband, father/mother and son, as the case may
be, find difficult to open an account for want of address
verification, Banks can open account by obtaining an identity
document and a utility bill of the relative with whom the prospective
customer is living along with a declaration from the relative that the
said person (prospective customer) wanting to open an account is a
relative and is staying with him/her.

 Banks should introduce a system of periodical updation of
Customer identification data (including photograph/s) after the
account is opened. The periodicity of such updation should not be
less than once in ten years in case of low risk category
customers and not less than once in two years in case of high and
for medium risk categories, the period is eight year.
 An indicative list of the nature and type of documents/information
that may be relied upon for customer identification is annexed to RBI
Master Circular dated 01.07.2011.
Customer Identification Requirements (Indicative)

i. Walk-in Customers
 Transaction/s for amount equal to or exceeds Rupees fifty
thousand, by a walk in customer (non-account holder) whether
constructed as a single transaction or several transactions, the
customer's identity and address should be verified.
 Banks/FIs are required to verify the identity of the customers for
all international money transfer operations (Rule 9 of the PML
Rules 2005)
ii. Salaried Persons
 For salaried employees, banks can rely on certificate/letter of
identity /address issued only from corporate and other entities
of repute and should be aware of the competent authority
designated by the concerned employer to issue such
certificate/letter and additionally insist for at least one of
officially valid documents as provided in the Prevention of Money
Laundering Rules (viz. Passport, driving license, PAN Card,
Voter’s Identity card, etc.) Or utility bills for KYC purposes for
opening bank accounts.
iii. Trust/Nominee or Fiduciary Accounts
 While opening an account for a trust, banks are required to
verify the identity of the trustees and the settlers of trust
(including any person settling assets into the trust), grantors,
protectors, beneficiaries and signatories. In case of Foundation,
steps should be taken to verify the founder managers/directors and
in both the cases the beneficiaries should be identified, if defined.
iv. Accounts of companies and firms
 Banks need to examine the control structure of the entity, determine
the source of funds and identify the natural persons who have a
controlling interest and who comprise the management. These
requirements may be moderated according to the risk perception
e.g. in the case of a public company it will not be necessary to
identify all the shareholders.
v. Client accounts opened by professional intermediaries
 If the account is opened for a single client by the professional
intermediary, the client must be identified. In case of ‘pooled’
accounts managed by professional intermediaries on behalf of

entities like mutual funds, pension funds or other types of funds and
accounts managed by Lawyers/CAs or Stockbrokers for funds held
‘on deposit' or 'in escrow' for a range of clients, and the funds held
by the intermediaries are not co-mingled at the bank and there are
'sub-accounts', each of them attributable to a beneficial owner, all
the beneficial owners must be identified.
 Banks should not allow opening and/or holding of an account on
behalf of a client/s by professional intermediaries who are
unable to disclose true identity of the owner of the
account/funds due to any professional obligation of customer
confidentiality.
vi. Accounts of Politically Exposed Persons (PEPs) resident outside India
 Politically exposed persons are individuals who are or have been
entrusted with prominent public functions in a foreign country,
e.g., Heads of States or of Governments, senior politicians,
senior government/judicial/military officers, senior executives of
state-owned corporations, important political party officials, etc.
 Banks need to verify the identity of the person and
seek information about the sources of funds before accepting the
PEP as a customer and the decision to open an account for a
PEP should be taken at a senior level as per the
Customer Acceptance Policy. Such accounts should be subject to
enhanced monitoring on an ongoing basis. The above norms may
also be applied to the accounts of the family members or close
relatives of PEPs.
 Decision on continuance of an existing account for having
becoming the account holder a PEP should also be taken at
Senior level and the account should be subjected to the CDD
measures as applicable to the customers of PEP category
including enhanced monitoring on an ongoing basis.
 Further, banks are required to have appropriate ongoing risk
management procedures for identifying and applying enhanced CDD
to PEPs, customers who are close relatives of PEPs, and accounts of
which PEP is the ultimate beneficial owner.
vii. Accounts of non-face-to-face customers
 In case of non-face-to face customers, Banks have to insist for
certification of all the documents presented and if necessary
additional documents may be called for. First payment to be effected
through another bank which adheres to similar KYC standards. In
the case of cross-border customers, the bank may have to rely on
third party certification/introduction. In such cases, it must be
ensured that the third party is a regulated and supervised entity and
has adequate KYC systems in place.
viii. Accounts of proprietary concerns
 Banks, besides the extant guidelines on customer identification
procedure as applicable to the proprietor, insist for any two of

the documents in the name of the proprietary concern viz.)
Proof of the name, address and activity of the concern, like
registration certificate (in the case of a registered concern),
certificate/licence issued by the Municipal authorities under Shop &
Establishment Act, sales and income tax returns, CST/VAT
certificate, certificate/registration document issued by Sales
Tax/Service Tax/Professional Tax authorities, Licence issued by
the Registering authority like Certificate of Practice issued by
Institute of Chartered Accountants of India, Institute of Cost
Accountants of India, Institute of Company Secretaries of India,
Indian Medical Council, Food and Drug Control Authorities,
registration/licensing document issued in the name of the
proprietary concern by the Central Government or State
Government Authority/Department. Banks may also accept IEC
(Importer Exporter Code) issued to the proprietary concern by
the office of DGFT as an identity document for opening of the
bank account, etc.
Account of Foreign students in India
 Branch may open Non Resident Ordinary (NRO) bank account of
a foreign student on the basis of his/her passport (with
appropriate visa & immigration endorsement) along with a
photograph and a letter offering admission from educational
institution.
 Within a period of 30 days of opening of account, the foreign
student should submit, a valid address proof giving local
address, a letter from educational Institution as proof of living in
a facility provided by the educational Institution.
 During the 30 days, the account should be operated with
a condition of allowing foreign remittance not exceeding USD 1000
in the account and a cap of monthly withdrawal of Rs.50000/-
pending verification of address.
 On submission of proof of current address, the account would be
treated as Normal NRO Account
Operation of bank accounts & money mules
 In order to minimize the operations in mule accounts as also to
monitoring of transactions in order to protect themselves and their
customers from misuse by such fraudsters, it has been directed that
Banks should follow meticulously the guidelines on KY/AML/CFT
issued from time to time and to those relating to periodical updation
of customer identification data after the account is opened.
Bank no longer knows the true identity
 In the circumstances when a bank believes that it would no
longer be satisfied that it knows the true identity of the account
holder, the bank should also file an STR with FIU-IND.
Accounts with Introduction
 In case of low income group persons both in urban and rural

areas who find it difficult to produce the documents for identification
and address, the Banks may consider opening of Small Deposit
Accounts subject to introduction from another account holder who
has been subjected to full KYC procedure. The maximum
balances not exceeding Rupees Fifty Thousand (Rs. 50,000/-) in
all their accounts taken together and the total credit in all the
accounts taken together is not expected to exceed Rupees One
Lakh (Rs. 1,00,000/-) in a year. The introducer’s account with the
bank should be at least six months old and should show satisfactory
transactions. Photograph of the customer who proposes to open
the account and also his address needs to be certified by the
introducer, or any other evidence as to the identity and address
of the customer to the satisfaction of the bank.
Small Account
Small Accounts are accounts wherein:-
i. the aggregate of all credits in a financial year does not exceed
rupees one lakh;
ii. the aggregate of all withdrawals and transfers in a month does
not exceed rupees ten thousand; and
iii. the balance at any point of time does not exceed rupees fifty
thousand.
Banks are advised to ensure adherence to the procedure
provided in the Rules for opening of small accounts. In terms of the
Notification, job card issued by NREGA duly signed by an officer of the
State Government or the letters issued by the Unique Identification
Authority of India containing details of name, address and Aadhaar number,
etc. can be accepted as documentary evidence of identification an proof of
address.
Monitoring of Transactions
 Every bank has to set key indicators for accounts taking note of
the background of the customer, such as the country of origin,
sources of funds, the type of transactions involved and other risk
factors. High risk associated with accounts of bullion dealers
(including sub-dealers) & jewellers should be taken into account
by banks to identify suspicious transactions for filing Suspicious
Transaction Reports (STRs) to Financial Intelligence Unit- India (FIU-
IND).
 Banks are required to put in place a system of periodical review
of risk categorization of accounts and the need for applying
enhanced due diligence measures. Such review of risk categorization
of customers should be carried out at a periodicity of not less than
once in six months.
 Banks are required to exercise ongoing due diligence with
respect to the business relationship with every client and closely
examine the transactions in order to ensure that they are

consistent with their knowledge of the client, his business and
risk profile and where necessary, the source of funds.
Partial Freezing/Closure of Accounts
The customers who are non-compliant of KYC requirement at any
stage either at the time of boarding or subsequent stage and not
responding to the reminders by the branches, the procedure for partial
freezing/closure will be as under
 Initially a notice of three months should be given to
the customer to comply with KYC requirement
 It should be followed by a reminder for further period of three
months.
 Thereafter, branches may impose “partial freezing” by allowing
all credits and disallowing all debits with the freedom to close
the account.
 If the accounts are still KYC Non-compliant after six months of
imposing initial partial freezing, branch may disallow all debits and
credit to/from the account. Decision to close such accounts shall be
approved by the Branch Manager.(Ref. Cir. No.110/210 dated
06.02.2017)
Risk Management
 The Board of Directors of the bank are expected to ensure that
an effective KYC programme covering proper management
oversight, systems and controls, segregation of duties, training
and other related matters is put in place by establishing
appropriate procedures and ensuring their effective implementation.
Responsibility should be explicitly allocated within the bank for
ensuring effective implementation of the policies and procedures.
 Banks are expected to ensure that its internal audit
and compliance functions should specifically check and verify the
application of KYC procedures at the branches and comment on
the lapses observed in this regard. The compliance in this regard
should be put up before the Audit Committee of the Board on
quarterly intervals.
 Customers to be categorized as Low, Medium & High based on
the assessment and risk perception i.e. as per the profile of the
customer at the initial stage depending upon Customer’s
identity, social/financial status, nature of business activity,
location & other information. It is to be reviewed every six months
based on transactions/turnover in the account. Few category of
customers are put always under HIGH RISK i.e. NRI, GEM &
Jewellery business, Diamond Traders, Real Estate, Trust, NGOs,
 Low Risk :every Ten Years
 Medium Risk :every Eight Years
 High Risk :every Two Years
Periodic updation of a customer’s profile as per above mentioned
period is mandatory.

Introduction o f N e w T e c h n o l o g i e s –
Credit c a r d s /debit c a r d s / s m a r t cards/gift cards
 Banks are expected to ensure that preventive measures are put

in place to take care of the money laundering threats that may
arise from new or developing technologies including internet
banking. Banks should ensure that full compliance with all
KYC/AML/CFT guidelines issued from time to time, in respect of
add-on/ supplementary cardholders also. It is also desirable that
Marketing Agents of these products are also subjected to KYC
measures.
Combating Financing of Terrorism
 Any transaction which gives rise to a reasonable ground of

suspicion that may involve financing of the activities relating to
terrorism is to be treated as suspicious transaction (PMLA rules).
Banks should develop suitable mechanism through appropriate
policy framework for enhanced monitoring of accounts suspected
of having terrorist links and swift identification of the transactions
and making suitable reports to the Financial Intelligence Unit – India
(FIU-IND) on priority.
 RBI provides list of individuals and entities having terrorist
connections periodically. Banks/Financial Institutions should ensure
to update the consolidated list of individuals and entities as
circulated by RBI. Banks should scan its existing portfolio to ensure
that no account is held by or linked to any of the entities or
individuals included in the list as also before opening any new
account it should be ensured that the name/s of the proposed
customer does not appear in the list. Full details of accounts
bearing resemblance with any of the individuals/entities in the
list should immediately be intimated to RBI and FIUIND.
Freezing of Assets under Section 51A of Unlawful Activities

(Prevention) Act, 1967
 Central Government is empowered to freeze, seize or attach

funds and other financial assets or economic resources held by,
on behalf of or at the direction of the individuals or entities or
any other person engaged in or suspected to be engaged in terrorism
and prohibit any individual or entity from making any funds, financial
assets or economic resources or related services available for the
benefit of the individuals or entities or any other person
engaged in or suspected to be engaged in terrorism (Sec.
51A of UAPA)
 Banks are required to strictly follow the procedure laid down in
the UAPA Order and ensure meticulous compliance.

 Banks have to maintain the list of individuals or entities in
electronic form and run a check on the given parameters and in case
the particulars match with any of its existing customers, the banks
shall immediately, not later than 24 hours from the time of
finding out such customer, inform full particulars of the funds,
financial assets or economic resources or related services held in
the form of bank accounts, held by such customer on their
books to the Joint Secretary (IS.I), Ministry of Home
Affairs, by Fax and also convey over telephone followed by post and
e-mail duly marking copy to the UAPA nodal officer of RBI, CGM,
DBOD, RBI (AML Division).
 Banks shall also file a Suspicious Transaction Report (STR) with
FIU-IND covering all transactions in the accounts covered by
paragraph (b) above, carried through or attempted, as per the
prescribed format.
Freezing of financial assets
 On receipt of the particulars from Bank/FI, the MHA would get
the veracity of the data verified by State Police and /or the
Central Agencies. The verification would be completed within a
period not exceeding 5 working days from the date of receipt of such
particulars.
 In case of positive findings, an order to freeze these assets
under section 51A of the UAPA would be issued within 24 hours
of such verification and conveyed electronically to the concerned
bank branch under intimation to Reserve Bank of India and FIU- IND.
The order shall take place without prior notice to the designated
individuals/entities.
Implementation of requests received from foreign countries under
U.N. Security Council Resolution 1373 of 2001.
 U.N. Security Council Resolution 1373 obligates countries to
freeze without delay the funds or other assets of persons or
entities figured in the list. Such requests from foreign countries
under U.N. Security Council Resolution 1373, shall be examined
by the Ministry of External Affairs (MEA) and forward it electronically,
with their comments, to the UAPA nodal officer of IS-I Division for
freezing of funds or other assets. The UAPA nodal officer upon
examination of the request and having satisfied, the same
would be passed on to RBI who in turn forwards the same to
the concerned bank/s for freezing of the assets.
Procedure for unfreezing of financial assets inadvertently affected
 Any individual or entity whose financial assets are frozen
inadvertently can move an application to the concerned bank in
writing with sufficient evidence. The bank would forward the request
to the nodal officer of IS-I Division of MHA within two working days
The Joint Secretary (IS-I), MHA, being the nodal officer for (IS-
I) Division of MHA, shall cause such verification as may be required

on the basis of the evidence furnished by the individual/entity and
if he is satisfied, he shall pass an order, within fifteen working
days, unfreezing the financial assets under intimation to the
concerned bank through RBI.
Jurisdictions that do not or insufficiently apply the
FATF Recommendations
 Banks are required to take into account risks arising from the
deficiencies in AML/CFT regime of the jurisdictions included in
the Financial Action Task Force (FATF) and should also give
special attention to business relationships and transactions with
persons (including legal persons and other financial institutions)
from or in countries that do not or insufficiently apply the FATF
Recommendations.
 If the transactions have no apparent economic or visible lawful
purpose, the background and purpose of such transactions
should, as far as possible be examined, and written findings together
with all documents should be retained and made available
to Reserve Bank/other relevant authorities, on request.
Correspondent Banking
 Correspondent banking is the provision of banking services viz.
cash/funds management, international wire transfers, drawing
arrangements for demand drafts and mail transfers, payable-
through-accounts, cheques clearing etc. by one bank (the
“correspondent bank”) to another bank (the “respondent bank”).
Prior to establishing such relationships, Banks should carry our
due diligence by collecting various information including level of
AML/CFT compliance, whether the other bank has been subject
to any money laundering or terrorist financing investigation or
regulatory action, etc. Proper approval of the Board or committee
headed by the CMD/CEO is desirable.
Correspondent relationship with a “Shell Bank”
 A Shell Bank is one which is incorporated in a country where it
has no physical presence and is unaffiliated to any regulated financial
group. Shell banks are not permitted to operate in India. Banks
should not enter into relationship with shell banks and should
ensure that its foreign respondent institution does not permit its
accounts to be used by shell banks.
Applicability to branches and subsidiaries outside India
 The guidelines on KYC/AML/CFT shall apply to the branches and
majority owned subsidiaries located abroad, especially, in
countries which do not or insufficiently apply the FATF
Recommendations, to the extent local laws permit. Any deviation
to the RBI guidelines should be reported to RBI.
Wire Transfer
 Wire transfer is a transaction carried out on behalf of
an originator (both natural and legal) through a bank by electronic

means with a view to making an amount of money available to a
beneficiary person at a bank. Cross-border wire transfer means
where the originator and the beneficiary bank or financial
institution are loc ated at different countries whereas domestic
wire transfer where the originator and beneficiary are located in the
same country. It is an expeditious method for transferring funds
between bank accounts.
 Basic information on the originator of wire transfers should be
made available to appropriate law enforcement and/or prosecutorial
authorities in order to assist them in detecting, investigating,
prosecuting terrorists or other criminals and tracing their
assets. The information can be used by Financial Intelligence Unit -
India (FIU-IND) for analysing suspicious or unusual activity and
disseminating it as necessary. Banks must ensure that all wire
transfers whether cross-border or Domestic must be accompanied by
the originator information. Interbank transfers and settlements
where both the originator and beneficiary are banks or financial
institutions would be exempted from the above requirements
Role of Ordering, Intermediary and Beneficiary banks
Ordering Bank / Intermediary Bank

 An ordering bank is the one that originates a wire transfer
as per the order placed by its customer. The ordering bank as
well as the intermediary bank for both cross-border and
domestic wire transfers must ensure that the wire transfers
contain complete originator information and the same
should be retained for at least for a period of ten years (AML Act
2002).
Beneficiary bank
 A beneficiary bank has to identify the wire transfers
l a c k i n g complete originator information. Any suspicious
transaction should be reported to the FIU-IND. The bank should also
take up the matter with the ordering bank if a transaction is not
accompanied by detailed information of the fund remitter.
Principal Officer
 Banks are required to appoint a senior management officer to be
designated as Principal Officer for reporting/monitoring of all
transactions and sharing of information as required under the law.
The role and responsibilities of the Principal Officer include
overseeing and ensuring overall compliance with regulatory
guidelines on KYC/AML/CFT issued from time to time.
 The P r i n c i p a l O f f i c e r a n d o t h e r a p p r o p r i a t e s t a f f s h o u l d
h a v e timely access to customer identification data and other CDD
information, transaction records and other relevant information.

Maintenance of records of transactions (Rule 3 of PML Rules,
2005)
Banks are expected to maintain:-
a) All cash transactions of the value of more than Rupees Ten Lakh
or its equivalent in foreign currency;
b) All series of cash transactions integrally connected to each other
which have been valued below Rupees Ten Lakh or its equivalent
in foreign currency where such series of transactions have taken
place within a month and the aggregate value of such
transactions exceed Rupees Ten Lakh
c) All transactions involving receipts by non-profit organizations of
value more than rupees ten lakh or its equivalent in foreign currency
d) All cash transactions where forged or counterfeit currency notes
or bank notes have been used as genuine and where any forgery
of a valuable security or a document has taken place facilitating
the transaction and
e) All suspicious transactions whether or not made in cash and by
way of as mentioned in the Rules.
f) All integrated transactions exceeding Rs. 10 Lakh.
Information to be preserved
Banks are required to maintain information as under:
a) The nature of the transactions;
b) The amount of the transaction and the currency in
which it was denominated;
c) The date on which the transaction was conducted; and
d) The parties to the transaction
Maintenance and Preservation of record
 Banks are expected to maintain/preserve records for at least
five years from the date of transaction between the bank and
the client all necessary records of transactions, both domestic or
international including records pertaining to the identification of
the customer and his address which will permit reconstruction of
individual transactions (including the amounts and types of currency
involved if any) so as to provide, if necessary, evidence for
prosecution of persons involved in criminal activity.
Reporting to Financial Intelligence Unit - India
 Banks are required to report information relating to cash and
suspicious transactions and all transactions involving receipts by
non-profit organizations of value more than rupees ten lakh or
its equivalent in foreign currency to the Director, FIU-IND (PMLA
Rules).
 There are altogether eight reporting formats, viz. i) Cash
Transactions Report (CTR) ii) Summary of CTR iii) Electronic File
Structure-CTR, iv) Suspicious Transactions Report (STR), v)
Electronic File Structure-STR vi) Counterfeit Currency Report
(CCR) vii) Summary of CCR and viii) Electronic File StructureCCR for

reporting by the Banks. Detailed guidelines for filing of the
reports along with periodicity of submission are given in the
instruction part of each report.
 Banks are required to prepare a profile for each customer based
on risk categorization and undertake review of the same periodically.
Customer Education/ Training of Employees / Hiring

of Employees
Customer Educ ati on
 Banks are required to introduce suitable means to educate
the customers of the objectives of the KYC programme so as to avoid
any resistance from the customers.
Training of Employees
 Banks must have an ongoing employee training programme so that
the members of the staff are adequately trained in KYC procedures.
Hiring of Employees
 Banks are required to put in place adequate screening mechanism
as an integral part of their recruitment/hiring process of personnel
so as to ensure that criminals are not allowed to misuse
the banking channels.
Operation of Bank Accounts & Money Mules
“Money Mules” which are 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 which act as “money
mules.
Identify and exit such accounts if it is already exiting. For new a/cs, during
discussion / interaction if any indication noticed, customer must be avoided.
Identification of Beneficial Owner:

The beneficial owner is a natural person, who, whether acting alone or
together, or through one or more juridical person, has / have
ownership of / entitlement in
a) partnership firm & unincorporated association or body of
individuals - more than 15% of capital or profits in the entity
b) Company – more than 25% of the shares or capital or the profits
c) Trust – 15% and more
Simplified Du e Diligence
The due diligence which is applied to establish identity of the customer
by involving less stringent norms than basic due diligence is termed as
Simplified Due Diligence. RBI guidelines relates in these to people
belonging to low income group and to enable Financial Inclusion to this
segment.
Enhanced Due Diligence (EDD)

Any additional due diligence, as desired, over and above basic due diligence
is termed as EDD. RBI guidelines make EDD mandatory for all customers
irrespective of the Risk Category. EDD is required to be done on On-

going basis during the course of business transaction essentially as
and when AML alert is generated and customer is graded as High Risk. RE-
KYC norms as per guidelines are to be implemented.
On-going Due Diligence- points for observations
 Transactions in the account are inconsistent with the profile of
customer
 If large and complex transactions including RTGS and with
unusual patterns or with no apparent economic rationale
 Transactions exceeding thresholds
 Deposit of third party cheques in existing / newly opened a/cs
followed by cash withdrawals for large amounts
Normally, we open THREE type of accounts i.e. Normal, Simplified
KYC & Small Accounts. DO’s & DON’Ts for each type of account are given
as:
DO`s:
A. Normal Accounts: applicable OVDs as “PROOF OF IDENTITY AND
ADDRESS” - Any one of the 6 documents, listed below can
be accepted:
1. Passport (Within validity);

2. Driving License (Within validity);
3. Voters Identity Card;
4. MNREGA Job Card
5. Aadhar Card (Voluntary)
6. Letter issued by the National Population Register
containing details of name and address
Note:
i. PAN or Form 60 shall be obtained from each customer
ii. Recent photograph shall be obtained while opening new account as
well as undertaking Re-KYC exercise.
iii. Re-KYC exercise shall be undertaken as per Risk Category,
a) while issuing ATM / cheque book, if not issued at the time of
opening of account
b) if any customer submits new OVD replacing the existing one,
c) requests for change in mobile number after a reasonable gap.
Address: In case the identity information relating to OVD submitted by the

customer does not have current address, an OVD defined as under, shall be
obtained from the customer which shall be called as deemed OVD and shall
be valid for limited purpose for 3 months,
1. Utility bill which is not more than two months old of any service
provider (electricity, telephone, post-paid mobile phone, piped
gas, water bill);
2. Property or Municipal tax receipt;

3. Pension or family pension payment orders (PPOs) issued to retired
employees by Government Departments or Public Sector
Undertakings, if they contain the address;
4. Letter of allotment of accommodation from employer issued by
State Government or Central Government Departments, statutory
or regulatory bodies, public sector undertakings, scheduled
commercial banks, financial institutions and listed companies and
leave and license agreements with such employers allotting official
accommodation.
B. Simplified KYC norms:

 applicable ONLY for Customers who are assessed under Low risk
category,
 Documents out of the following list in which Identity and / or
Address proof is given, can, be accepted towards “Proof
of Identity and Address”:
a. Identity Card with applicants photograph issued by Central
/ State Government Department, Statutory / Regulatory
Authorities, Public Sector Undertakings, Scheduled
Commercial Banks and Public Financial Institution;
b. Letter issued by a Gazetted Officer with a duly attested
photograph,
c. Utility bill which is not more than two months old of
any service provider (electricity, telephone, post-paid mobile
phone, piped gas, water bill);
d. Property or Municipal Tax receipt;
e. Bank account or Post Office savings bank account statement;
f. Pension or family pension payment orders (PPOs) issued to
retired employees by Government Departments or Public
Sector Undertakings, if they contain the address;
g. Letter of allotment of accommodation from employer
issued by State or Central Government departments,
statutory or regulatory bodies, and public sector
undertakings, scheduled commercial banks, financial
institutions and listed companies. Similarly, leave and
license agreements with such employers allotting official
accommodation; and
h. Documents issued by Government departments of
foreign jurisdictions or letter issued by Foreign Embassy or
Mission in India.
C. Small Accounts: applicable ONLY for customers who have
no KYC document
 Obtain recent photograph, (self- attested)
 Signature or Thumb impression on Account opening
form in front of Bank Official,
NOTE: Limitations for the account –
a. Balance in the account at any point of time should not
exceed Rs.50,000/-,
b. Total of all debits and transfers in a month should not

exceed Rs.10,000/-,
c. Total credits in account should not exceed Rs. 1 lac in
one financial year,
d. The account to remain operational initially for 12 months;
the period can be extended further for 12 months provided the
customer applies and furnishes evidence of having applied
for any of the OVDs during first 12 months of opening the
account,
e. Entire relaxation to be reviewed after 24 months.
Further necessary guidelines/ instructions:
1. Always insist for recent photograph in all accounts,
2. Photocopies of all the KYC documents are to verified with
the originals, copies of OVDs (KYC) must be self-certified by the
customer and further essentially must be certified by the account
opening staff with clear wordings i.e. “Original seen and
verified” and must be signed by the account opening staff with
employee ID and date of verification,
3. Complete Customer Profile Sheet- it must be filled in by
the Branch official, should be strictly P & C, and need not be
shared with customer in any circumstance,
4. At the initial stage, classify the customer as Low, Medium
and High risk as per Customer Profile Sheet
5. Ensure filling in all the fields in ‘CUMM’ with correct code.
6. Do obtain details of Beneficial Owners in eligible cases and
update the same in Finacle.
7. Screen the customer name against banned entity and PEP list
8. Always generate the report of RE-KYC (KYCRPT) periodically and
take action on that i.e. update the KYC as per the stipulated
periodic intervals viz. every 2 years for High risk accounts, every 8
years for Medium risk accounts and every 10 years for Low
risk accounts.
9. After obtaining the updated KYC documents, enter them in menu
KYCDET in the Finacle system.
10. Monitor the transactions of the customer and escalate if any
suspicious transactions found.
11. Familiarize yourself thoroughly with the KYC/AML/CFT policy and
amendments notified subsequently, if any.
12. Name Screening: As and when the updated U.N.lists
are received from RBI, they are uploaded in KRISH menu in our
CBS system from where the branches check / take a search in the
list before opening the account.
13. For monitoring of daily transactions, the Finacle system
generates 5 Exception reports viz. (a) Major Exceptions (b)
Minor Exceptions (c) Audit Trails (d) Temporary Overdrafts and
(e) Temporary Over limits, at the day end and the branches
have been instructed to check the same on a daily basis.
It is covered by Risk Based Internal / Concurrent Auditors also.
14. Beneficial Owner- a/cs other than individuals & proprietary
concerns need to be captured with details & Identity
of Beneficial owner, such details must be put in FINACLE,
15. Issue of Bank’s certificate for obtaining Import /Export Code

( IE Code) : Authority for issuing such certificate on request
of the customer, has since been delegated to ZO level, NOT AT
BRANCH LEVEL. Such certificate is to be issued only after proper
Due Diligence and in a well conducted a/c running satisfactorily
for a sufficiently long period. (For details -Please refer to
thecircular letter 2015-16 / 201 dt. 15.03.2016).
DON’Ts:
1. Never depend on third party for obtaining / updating KYC,
2. Never open / continue with account of banned entities,
3. Do not part with the Customer Profile Sheet to the customer for filling.
This is to be filled in by branch officials only,
4. Do not disclose the Risk Classification to the customer,
5. Do not give any wrong advise to the customer,
6. Do not advise the customer to structure cash deposits below
Rs.10 lacs or below Rs.50000/-; if the customer does it on his
own, report it to Head Office confidentially as suspicious transaction;
7. Not to open accounts of professional intermediaries who are
bound by client confidentiality that prohibits disclosure of client
details to Bank
8. Not to open a/cs of Students with Pakistani nationality without prior
approval from RBI
Central KYC Registry

To facilitate the Centralization work of KYC, Government of India vide
notification dated 07.07.2015 amended the Prevention of Money
Laundering (Maintenance of Records) rules 2005 for setting up Central
KYC Records Registry (CKYCR) The work of CKYC Registry is
entrusted to CERSAI by Government of India. The new Account
Opening Form along with Foreign Account Tax Compliance Act
declaration has been mandated to be used by the Branches. The
revised eighteen pages Account Opening form has been standardized in
view C-KYC norms including declaration under FATCA/Common
Reporting Standard. Branches should obtain Account Opening Forms
filled in BLACK INK along with clear readable copies of Officially Valid
Documents.(Ref. Cir. Letter No.2017-18/101 dated 27.12.2017)

KYC DOCUMENTS FOR VARIOUS TYPES OF ACCOUNTS:
Sr. Particulars
1. Proof of identity and address
Originals of any of the SIX Officially Valid Documents (OVD) along with RECENT
PHOTOGRAPH for each individual related to Bank account. A copy of the same to be
submitted for Branch records
1. Passport (Within validity); 2. Driving License (Within validity); 3.
Voters Identity Card; 4. Letter issued by the National Population Register
containing details of name and address; 5. Aadhar Card; and 6. MNREGA Card
NOTE:
PAN or Form 60 shall be obtained from each customer;
If identity & address both are available in one document, that single document fulfils
KYC norms;
If applicant resides outside the city, obtain OVD as above along with self-declaration
about local address,
Additional information with supporting documents for NRI /PIO and foreign
nationals.
2. Proprietorship Firm
a. Proprietorship letter in Banks’ format;
b. Power of attorney, if any granted by the Proprietor;
c. Any two of the documents mentioned below in the name of proprietary concern:
1. Registration certificate (in the case of a registered concern)
2. Certificate/license issued by the Municipal authorities under Shop & Establishment
Act,
3. Sales and income tax returns or CST/VAT certificate
4. Certificate/registration document issued by S.T./Service Tax/Professional Tax
authorities
5. License/certificate of practice issued in the name of the proprietary concern by any
professional body incorporated under a statute. The complete Income Tax return
(not just the acknowledgement) in the name of the sole proprietor where the
firm’s income is reflected, duly authenticated/ acknowledged by the Income Tax
Authorities,
3. 6 Utilit bill Firm
Partnership i l account
t i it t l dli t l h bill f B i E t bli h t( )
a) Partnership Letter in Bank’s format & Partnership Deed;
b) Registration certificate, if registered;
c) Power of attorney, if any, granted by the firm to transact business on its behalf;
d) An OVD in respect of the person holding an attorney to transact on its behalf;
e) List of Beneficial Owner along with OVD of all partners
4. Trust account
a) Registration certificate, if registered,;
b) Trust deed;
c) Resolution for opening and operating the account, signed by all the Trustees;
d) A list of the names of the trustees with their addresses;
e) An OVD to identify the those holding Power of Attorney;
f) List of Beneficial Owner along with OVD of all trustees

5. Accounts of Unincorporated association or body of Individuals:
a) Resolution of the managing body of such association or body of individuals;
b) Power of attorney, if any, granted to transact on its behalf;
c) An OVD the person holding an attorney to transact on its behalf and
d) Information to collectively establish the legal existence of an association/
body of individuals.
e) OVD of office bearer, if a ny
6. Company,
a) Certificate of incorporation;
b) Memorandum and Articles of Association;
c) A resolution of the Board of Directors to open the account and conveying authority
to operate the account;
d) Power of attorney, if any, granted by the Company to transact on its behalf;
e) An OVD in respect of person holding a Power of Attorney;
f) Certificate of Commencement of Business (for Public Ltd. Cos.)
g) List of present Directors of the company and OVD of each Director;
h) A list of authorized signatories with their signatures duly authorized by the
Chairman / Secretary;
i) List of shareholders and beneficial owner(s) ( in case of unlisted companies) along
with
7. OVD
Society / Association / Club :
a) Certificate of Registration, if registered;
b) Memorandum of Association;
c) Rules, regulations and bye-laws;
d) Committee resolution for opening and operating the account;
e) A list of Authorized signatories with their signatures duly Authorized by the
Chairman / Secretary;
f) List of Beneficial Owner (s) and office bearer if any along with OVD
8. Hindu Undivided Family (HUF),
a) Declaration from Karta;
b) Joint Hindu family letter signed by the Karta and all the major co-parceners;
9. For All Current/OD/CC A/c
Bills Form 1005

Banking Law & Practice
The Indian Contract Act, 1872

• When one person signifies to another his willingness to do or to abstain
from doing anything, with a view to obtaining the assent of that other
to such act or abstinence, he is said to make a proposal;
• When the person to whom the proposal is made signifies his assent
thereto, the proposal is said to be accepted. A proposal, when accepted,
becomes a promise;
• The person making the proposal is called the "promisor", and the person
accepting the proposal is called the "promisee";
• When, at the desire of the promisor, the promisee or any other person
has done or abstained from doing, or does or abstains from doing, or
promises to do or to abstain from doing, something, such act or
abstinence or promise is called a consideration for the promise;
• Every promise and every set of promises, forming the consideration for
each other, is an agreement;
• Promises, which form the consideration or part, of the consideration for
each other are called reciprocal promises;
• An agreement not enforceable by law is said to be void;
• An agreement enforceable by law is a contract;
• An agreement which is enforceable by law at the option of one or more
of the parties - thereto, but not at the option of the other or others, is
a voidable contract;
• A contract which ceases to be enforceable by law becomes void when it
ceases to be enforceable.
• According to Section 10, "All agreements are contracts, if they are made
by the free consent of the parties, competent to contract, for a lawful
consideration, with a lawful object and are not expressly declared by
the Act to be void.
• Essential Elements of a Contract as defined in Section 10- •
Agreement - Offer and Acceptance
• Legal purpose
• Lawful Consideration
• Capacity to contract
• Consent to contract
• Lawful object
• Certainty
• Possibility of Performance
• Not expressly declared void
• Legal formalities like Writing, Registration etc.

• Capacity to Contract- Section 11 says, "Every person is competent to
contract, who is of the age of majority, according to law, which he is
subject to also who is of sound mind and who is not disqualified from
contracting by any law to which he is the subject"
Disqualifications
• An incorporated company cannot be part of contract.
• A minor is also incompetent to enter into a contract subject to certain
exceptions
• Mental in-capacity. Section 12 says "A person is said to be of sound
mind for the purpose of making a contract, if at the time when he makes
it, he is capable of understanding it and of forming a rational judgement
to its effect upon his interests"
A person who suffers from insanity at intervals can enter into a
contract, when he is of sound mind.
A person who suffers from insanity occasionally cannot enter
into a contract, when he is of unsound mind.
• Quasi-Contracts- Under special circumstances, obligations resembling
those created by a contract are imposed by law although there is no
contract between the parties. Such contracts are called Quasi-
Contracts.
Sections 68 to 72 deal with Quasi-Contractual Obligations-
• Claim for Necessaries supplied to a person incapable of contracting or
on his account
• Reimbursement of person paying money due by another, in payment of
which he is interested
• Obligation of person enjoying benefit of non-gratuitous act
• Responsibility of finder of goods
• Liability of person to whom money is paid, or thing delivered by mistake
or under coercion.
• Discharge of Contract- A Contract may be discharged in any of the
following ways
• Discharge by Performance.
• Discharge by Mutual Consent or Agreement
Novation - When a new contract is substituted for an existing
contract
Alteration
Rescission
Remission - Accepting the lesser sum of amount than what was
contracted for
• Discharge by subsequent illegality or impossibility
Destruction of Subject-matter
Failure of ultimate purpose
Death or personal incapacity of Promisor
Change of Law
• Discharge by lapse of time

• Discharge by operation of law
• Discharge by breach of contract
Anticipatory breach
Actual breach
• Section 133: Discharge of surety by variance in terms of contract
• Breach of a Contract- Chapter VI of Contract Act with Sections 73 to
75 deals with the consequences- When a contract is breached, the
injured party is entitled to one or more of the following remedies.
• Rescission of the contract
• Suit for damages
• Suit upon quantum merit
• Suit for specific performance of the contract
• Suit for injunction
The Indian Partnership Act, 1932

• The Indian Partnership Act, 1932 is an act enacted by the Parliament of
India to regulate partnership firms in India. It received the assent of
the Governor-General on 8 April 1932 and came into force on 1 October
1932.
Before the enactment of this act, partnerships were governed by the
provisions of the Indian Contract Act. The act is administered through the
Ministry of Corporate Affairs.
• The act is not applicable to Limited Liability Partnerships, since they are
governed by the Limited liability Partnership Act, 2008.
• The term 'partnership' is defined under section 4 of Indian partnership
act 1932 as under "Partnership is an agreement between two or more
persons who have agreed to share profits of the business carried on by
all or any one of them acting upon all."
• Partnership refers to an agreement between persons to share their
profits or losses arising on account of actions carried by all or one of
them acting on behalf of all. The persons who have entered such an
agreement are called partners and give their collective business a name,
which is necessarily their firm-name. This relation between partners
arises out of a contract or an agreement, which means a husband and
wife carrying on a business or members of a Hindu undivided family are
not into partnership. The share of profits received by any individual from
the firm, money received by a lender of money, salary received by a
worker or a servant, annuity received by a widow or a child of a
deceased partner, does not make them a partner of the firm.
Negotiable Instruments Act 1881

• Payment in due course – Where a cheque is paid in accordance with
apparent tenor thereof, in good faith, to a payee, endorsee or holder in
due course without having any doubt in his title, the payment is said to
be in due course and banker will get protection. (Under Section 10)
• A bearer cheque paid to bearer if otherwise in order
• A crossed cheque paid through a bank a/c

• A specially crossed cheque paid to the bank to which it is crossed
• If endorsement of the cheques are regular
• The following are not payment in due course:
• Where it is a stale cheque or a post-dated cheque
• Where crossed cheque is paid across counter
• Where amount in words and figures differ
• Where drawers signature is not matching
• Payment of a cheque stopped by drawer
• Collecting banker- Collecting banker should collect the instrument for
a customer. The cheque should be drawn or endorsed in favour of the
customer. In cases of CTS the collecting banker is responsible for any
material alteration in the instrument not detectable by the naked eye.
Hence outward clearing cheques should be put through UV lamps to
detect any such material alteration.
• Endorsements – Order cheques are transferable by endorsement and
delivery. Paying bankers should ensure that endorsement is regular.
• Crossing – When a cheque bears across its face two parallel
transvers lines with or without words “and co”, “not
negotiable”, “a/c payee” the cheque is said to be crossed
generally (Sec 123). When it bears the name of a bank as payee
or otherwise (other than as drawee) the cheque is crossed
specially to that bank (Sec 124). A cheque crossed generally should
be paid only through a bank account and a cheque crossed specially
should be paid only to the bank to which it is crossed.
The negotiable Instrument Act 1881 has been amended under sec 142
of the Act w.e.f. 15-06-2015. The bill amends the Act to state that cases of
bouncing of cheques u/s 138 can be filed only in a court in whose jurisdiction
the bank branch of the payee (Person who received the cheque) lies. The Bill
also amends of “Cheque in the electronic form”. Under the Act it was defined
as a cheque containing the exact mirror image of a paper cheque and
generated in a secure system using a digital signature. The definition has been
amended to mean a cheque drawn in electronic medium using any computer
resource and which is signed in a secure system with a digital signature, or
electronic system.
The Negotiable Instruments (Amendment) Act, 2018 ("Amendment
Act") was notified on August 02, 2018. The Key features of the amendments
are –
• Section 143A has been inserted which essentially empowers the court
trying the offence under Section 138 of the Act, to direct the drawer of
the cheque to pay interim compensation to the Payee in situations of a
summary trial or summons case wherein the drawer pleads to be "not
guilty". This new provision seeks to cap interim compensation to 20% of
the cheque amount.
• Another provision introduced as Section 148 specifies that in case the
drawer files an appeal against his/her conviction, the Appellate court has
the power to direct the drawer to deposit a minimum amount of 20% of
the fine or compensation that was awarded by the Trial court. The
Appellate Court may direct to release the amount deposited by the

appellant to the complainant at any time during the pendency of the
appeal.
Banker Customers Relationship - In Different Transactions

• In deposit accounts - Debtor and Creditor
• In loan accounts - Creditor and Debtor
• Safe custody – Bailee/Trustee and Bailor
• In Safe Deposit Vault – Lessor & Lessee or Licensor and Licensee
• Sale of third party products – Agent
• Collection of cheque for customer - Agent & Principal
Companies Act 2013

Companies Act 2013 has overhauled many of the provisions of the earlier Act
of 1956. The salient features are given below:
• Maximum Number of Members: This has been increased to 200 in
case of private Ltd Companies .While minimum has been maintained at
2. For public ltd companies minimum is 7, there is no maximum.
• One Person Company: A new concept called One Person company has
been included providing for one member of Indian Citizen and Resident
in India to constitute a company.
• Small Company: Defined as (other than a public company ) with paid
up share capital of not more than 50 lacs rupees or such other amount
as may be prescribed not more than 10 Crores. Turnover as per P&L
account not exceeding Rs.2 crore or such other amount as may
prescribe not exceeding Rs.100 crore.(as per modification u/s 2(85) of
Companies (Amendment) Act, 2017)
• Acceptance of Deposits: There is prohibition in accepting deposit
from the public. Companies can accept deposits only from its members
subject to passing a resolution in the General Meeting and complying
with guidelines prescribed by SEBI/RBI in this regard.
• Filing of Charge: Even though Company is primarily responsible to
register the charge on its assets, any creditor can also go ahead and
file the charges if it feels that the Company is not cooperating in
registering the charges. Form for filing charge is CHG 1 which is
applicable also for modification of charge. Charge has to be filed within
30 days, but registrar can extend the period for filing up to 300 days if
convincing reasons given. CHG 4 is to be used for filing satisfaction of
charge. For making application to Central Govt. for extension of time
for registration/modification/satisfaction of charge form CHG 8 to be
used. For creation of charge in respect of issue of debentures form
CHG 9 to be used. CHG 6 to be used for appointment of receiver or
cessation of receiver.
• Board of Directors: The maximum number of members in the board
shall be 15. However the company can pass special resolution in General
Meeting to increase the number. Minimum number of directors in case
of public Ltd Company is 3 and in case of Pvt. Ltd. Company is 2 and in
case of one Person Company is 1. 1/3 of the total number of directors
in a public limited company shall be independent directors. At least one
of the directors shall be resident in India i.e. he should have stayed in

India for not less than 182 days in the previous calendar year. Maximum
number of directorship a director can take at any point of time is 20.
• Powers of Board: The following powers can be exercised by the Board
only with consent of the Company by Special Resolution.
o To sell, lease, or otherwise dispose of the whole or substantially
the whole of the undertaking of the company.
o To invest otherwise than trust securities the money received in
merger, amalgamation.
o To borrow money in excess of the paid up capital and free
reserves of the company.
o To remit or give time for repayment to director of a loan (S 180)
• Section 185- No company can give any loan or furnish any security for
any loan given to any director or any firm or company or person in
whom the director is interested or furnish any guarantee or security for
any loan taken by him or such other person. This provision shall not
apply to any loan or guarantee or security given by a holding company
to its subsidiary for its principal business.
• Section 186 stipulates that a company shall not make investment
through more than 2 layers of investment companies. No company can
acquire securities by purchase, subscription or otherwise more than
60% of it’s paid up share capital plus free reserves and securities
premium account or 100% of free reserves and securities premium
account whichever is more.
• Related Party Transaction- Section 188: Except with approval of
board of directors and by a special resolution of the general meeting no
company shall enter into any related party transactions like awarding
contracts, purchase of land or other services, appointment as agent or
any other deal which will result in pecuniary benefit to the related party.
The related party/director shall not vote on such resolution and the full
particulars of the transaction with complete nature of interest of the
related party shall be disclosed to all members.
• Class Action Suit -Section 245: a class action suit refers to a lawsuit
that allows a large number of people with a common interest in a matter
to sue or be sued as a group. It is a procedural device enabling one or
more plaintiffs to file and prosecute litigation on behalf of a larger group
or class, wherein such class has common rights and grievances. As per
Section 245(1) read with Section 245(3), a Class Action Suit may be
filed by: -
1. Member or members or any class of them, as described below –
a. in the case of a company having a share capital,
i. any 100 or more members of the company, or members equal to
or exceeding 10% of the total number of its members, whichever
is less, or
ii. any member or members singly or jointly holding at least 10% of
the issued share capital of the company, Subject to the condition
that the applicant or applicants has or have paid all calls and other
sums due on his or their shares
iii. in the case of a company not having a share capital, members
equal to or exceeding 1/5th of the total number of its members.

See more at: http://taxguru.in/company-law/class-action-
suitscompanies-act-2013.
2. Depositor or depositors or any class of them, as described below –
a. any 100 or more depositors of the company, or depositors equal
to or exceeding 10% of the total number of its depositors,
whichever is less, or
b. any depositor or depositors singly or jointly holding at least 10%
of the total value of outstanding deposits of the company.
3. The Central Government, if it is of the opinion that the affairs of the
company are being conducted in a manner prejudicial to public interest
4. Application for class action suit has to be filed before the National
Company Law Board Tribunal (NCLT/Tribunal).
• Doctrine of Indoor Management: As the Ltd company has distinct
legal entity from its members and management, third parties entering
into any dealings with the company act through directors or officers of
the company. This principle implies that such third parties needed to
be protected against any internal procedural lapse or violation due to
which company cannot revoke such deals to their detriment. Such third
parties are entitled to presume that the persons acting on behalf of the
company are acting within the rules of the company and their powers
unless they have reason to believe that this is not so or this fact is
known to them at time of entering into the deal.
• Lifting the Corporate Veil: This legal principle involves that
directors or officers of the company cannot act fraudulently against third
party and company cannot set up the defence under the cloak of
corporate entity to avoid liability to third parties. Where the persons in
power to take decisions in the company commit fraud on outsiders, the
court in keeping with the equity and principles of natural justice will lift
the corporate veil and see inside as to who are wielding the power in
the company to make them accountable.
• Doctrine of Ultra Vires: The concept of ultra vires is to prevent the
company from acting in a controversial manner flouting all internal
rules. Acts which are ultra vires the articles of association or the board
of directors can be ratified by the company in general meeting.
However acts which are ultra vires the Memorandum of association or
company or the company law cannot be ratified and will be void.
However third parties who enter into such transactions without
knowledge will get protection provided they prove that they did not
know that the transaction was one which the company does not have
authority to enter into. However company will not be liable but the
directors will be personally liable.
• Significant Beneficial Owners : The Ministry of Corporate Affairs
(the MCA) in the month of January & February 2019 has issued the
amendments notification under the Companies Act 2013 (the Act) –
• Every individual, who acting alone or together, or through one or
more persons or trust, possesses one or more of the following rights in
a company shall be deemed to be a significant beneficial owner (SBO):
holds indirectly, or together with any direct holdings, at least 10% of
the shares or voting rights;

has the right to receive or participate (by virtue of their indirect and/or
direct holdings) in not less than 10% of the total distributable dividend
or any other distribution; or
has the right to exercise significant influence or control (through their
indirect holdings only) on the company.
However, individuals directly holding shares of the company in their own
name or holds or acquires beneficial interest in the share of the
reporting company under subsection section 89 (2) of the Act and
necessary reporting is made is not be considered to be a significant
beneficial owner.
Transfer of Property Act 1882

The Transfer of Property Act 1882 is an Indian legislation which
regulates the transfer of property in India. It contains specific provisions
regarding what constitutes transfer and the conditions attached to it. It
came into force on 1st July 1882. According to the Act, 'transfer of
property' means an act by which a person conveys property to one or
more persons, or himself and one or more other persons. The act of
transfer may be done in the present or for the future. The person may
include an individual, company or association or body of individuals,
and any kind of property may be transferred, including the transfer of
immovable property.
• The Interpretation of the Act, says "Immovable property does not
includes standing timber, growing crops or grass". Section 3(26), The
General Clauses Act, 1897, defines, " immovable property" shall include
land, benefits to arise out of land, and things attached to the earth, or
permanently fastened to anything attached to the earth. Also, The
Registration Act, 1908, 2(6) says- "immovable property" includes land,
buildings, hereditary allowances, rights to ways, lights, ferries, fisheries
or any other benefit to arise out of land, and things attached to the
earth or permanently fastened to anything which is attached to the
earth, but not standing timber, growing crops nor grass.
• A transfer of property passes forthwith to the transferee all the
interest which the transferor is then capable of passing in the property,
unless a different intention is expressed or implied.
• According to Section 43 of the Transfer of Property Act 1882, in case
a person either fraudulently or erroneously represents that he is
authorised to transfer certain immovable property and does some acts
to transfer such property for consideration, then such a transfer will
continue to operate in future. It will operate on any interest which the
transferor may acquire in such property. This will be at the option of the
transferee and can be done during the time during which the contract
of transfer exists. As per this rule, the rights of bona fide transferee,
who has no notice of the earlier transfer or of the option, are protected.
This rule embodies a rule of estoppel i.e. a person who makes a
representation cannot later on go against it.
• Every person, who is competent to contract, is competent to transfer
property, which can be transferred in whole or in part. He should be
entitled to the transferable property, or authorized to dispose of
transferable property which is not his own. The right may be either

absolute or conditional, and the property may be movable or
immovable, present or future. Such a transfer can be made orally,
unless a transfer in writing is specifically required under any law.
• According to Section 6 of the Transfer of Property Act, property of
any kind may be transferred. The person insisting non-transferability
must prove the existence of some law or custom which restricts the
right of transfer. Unless there is some legal restriction preventing the
transfer, the owner of the property may transfer it. However, in some
cases there may be transfer of property by unauthorised person who
subsequently acquires interest in such property.
• In case the property is transferred subject to the condition which
absolutely restrains the transferee from parting with or disposing of his
interest in the property, the condition is void. The only exception is in
the case of a lease where the condition is for the benefit of the lessor
or those claiming under him. Generally, only the person having interest
in the property is authorised to transfer his interest in the property and
can pass on the proper title to any other person.
• The rights of the transferees will not be adversely affected, provided:
they acted in good faith; the property was acquired for consideration;
and the transferees had acted without notice of the defect in title of the
transferor. It should be noted that these conditions must be satisfied :
• There must be a representation by the transferor that he has
authority to transfer the immovable property.
• The representation should be either fraudulent or erroneous. The
transferee must act on the representation in good faith.
• The transfer should be done for a consideration.
• The transferor should subsequently acquire some interest in the
property he had agreed to transfer.
• The transferee may have the option to acquire the interest which the
transferor subsequently acquires.
PML Act, 2002 & KYC Guidelines 2005 - Present guidelines of RBI to
Banks
• Money laundering is the process where proceeds of a crime or
unlawful activity are filtered in such a way that the source of their origin
is disguised. Section 3 of Prevention of Money Laundering Act, 2002
(hereinafter referred to as PMLA) defines “money laundering” as
Whosoever attempts to indulge in any process or activity connected
proceeds of crime including its concealment, possession, acquisition or
use and projecting or claiming it as untainted property shall be guilty of
offence of money-laundering.
• Thus, the proceeds from criminal activities further propel crimes and
create a parallel economy and all of these transactions operate being
unnoticed.
• The PMLA also enumerates a list of offences which are classified as
‘scheduled offences’ constitute as ‘crimes’.
• Single Document for Proof of Identity and Address- Earlier, as
part of the KYC process, one had to submit separate proofs for address
and identity. The RBI has done away with this. Now, a single document

with photograph and address of the applicant will suffice. Among the
documents approved for KYC include passport, the driving licence,
9proof of possession of Aadhaar number, the Voter's Identity Card
issued by the Election Commission of India, job card issued by NREGA
duly signed by an officer of the State Government and letter issued by
the National Population Register containing details of name and
address.
• No Separate Proof for Current Address- If you were new to a
place and did not have a valid address proof, opening a bank account
was nearly impossible. This problem has been taken care of. Now,
customers have to furnish only one address proof (current or
permanent) for opening a bank account. All that he is required to do is
to make a simple declaration about his/her current address and bank
may verify that through “positive confirmation”.
• Relaxation for Low-Risk Customers- A person without valid KYC
documents but categorised as 'low-risk' can open an account by
submitting any of the following-identity card with applicant's
photograph issued by a central/state government department,
statutory/regulatory authority, public sector undertaking, scheduled
commercial bank or public financial institution; or, a letter issued by a
Gazetted Officer, PPO.
• Small Accounts' for those with No KYC Document-This is
probably the best piece of news for students who live away from home
and migrant workers. They can now open a 'small account' instead of a
full service account.
• A small account can be opened by self-attesting a photograph and
giving thumb impression on the application in the presence of a bank
employee. Small accounts, as the name suggests, will have restrictions
in terms of all credits (a maximum of Rs. 1 lakh a year), withdrawals
(not more than Rs 10,000 a month) and maximum balance (Rs. 50,000
at any point of time).
• These accounts will be operational only for a year. However, if the
account holder provides proof that he/she has applied for a valid KYC
document, the account can be extended for another 12 months.
• Further, if low-risk customers are not able to submit the KYC
documents due to genuine reasons, they can do so within six months
from the date of opening the account.
• V-CIP: The Reserve Bank of India (RBI) has introduced Aadhaar-
based Video Customer Identification Process (V-CIP) to allow banks and
other lenders to remotely complete KYC of customers on video. Lenders
can use this facility as an alternative to the already available e-KYC
facility. The central bank has amended its guidelines under the
Prevention of Money-laundering (Maintenance of Records) Rules, 2005
to introduce V-CIP.
Banking Codes and Standards Board of India (BCSBI)
BCSBI is an independent and autonomous watchdog to monitor and
ensure that banking codes and Standards adopted by the banks
areadhered to in true spirit while delivering their services. It is based
on Shri S S Tarapore (the former Dy. Governor of RBI) committee

recommendations to improve the Quality of banking services to
individual customers. It is registered under Societies registration act
1860. BCSBI has on 03-07-2006 released the codes for customer
service which is voluntary.
• The Banking Codes and Standards Board of India (BCSBI) in
collaboration with the Indian Banks' Association (IBA) has evolved two
codes - Code of Bank's Commitment to Customers and the Code of
Bank's Commitment to Micro and Small Enterprises which have been
voluntarily adopted by member banks.
• The coverage of codes to customers- Deposits, Safe deposit
lockers, settlement of accounts of deceased accounts holders, foreign
exchange services, remittances within India, loans and advances and
guarantees, credit cards, debit cards, internet banking. The codes inter
alia dwells upon Interest rates, Tariff schedule, terms & conditions
governing relationship between the bank & the customer,
compensation for loss, if any to the customer due to the acts of omission
and commission, Privacy and confidentiality of the information relating
to the customer, norms governing advertisements, marketing and sales
by banks.
• Objectives of the Code- are -
• To give a positive thrust to the MSE sector by providing easy access
to efficient banking services.
• To promote good and fair banking practices by setting minimum
standards in dealing with you.
• To increase transparency so that you can have a better
understanding of what you can reasonably expect of the services.
• To improve our understanding of your business through effective
communication.
• To encourage market forces, through competition, to achieve higher
operating standards.
• To promote a fair and cordial relationship between you and us and
also ensure timely and quick response to your banking needs.
• To foster confidence in the banking system.
• Application of the Code- As defined in the Micro, Small and Medium
Enterprises Development Act, 2006, MSE’s cover Micro and Small
Enterprises engaged in the manufacturing or production or processing
or preservation of goods and those engaged in providing or rendering
of services. Unless it says otherwise, this Code will apply to all the
products and services listed below, under current regulatory
instructions, whether they are provided by branches, subsidiaries, joint
ventures or agents, across the counter, over the phone, by post,
through interactive electronic devices, on the internet or by any other
mode. However, all products discussed here may or may not be offered.
• Current accounts, term deposits, recurring deposits, and all other
deposit accounts.
• Payment services such as payment orders, remittances by way of
Demand Drafts and wire transfers, and all electronic transactions like
Real Time Gross Settlement (RTGS), Electronic Funds Transfer (EFT),
National Electronic Funds Transfer (NEFT) or any other mode.

• Banking services related to Government transactions.
• Demat accounts, equity, government bonds.
• Indian currency notes exchange facility.
• Collection of cheques / instruments, safe custody services.
• Loans and other credit facilities which include fund based such as
cash credit, overdraft, cheque and bill purchase/discounting (both
inland and foreign), negotiation under reserve of documents tendered
under Letter of Credit (both inland and foreign) and non-fund based
such as establishment of inland and /or foreign Letter of Credit (D/P or
D/A), issuing of Guarantee (both inland and foreign), Inland or foreign
bill or cheque for collection, Co- acceptance and avalisation of bills,
buyer’s credit, etc.
• Foreign Exchange Services as permitted under Foreign Exchange
Management Act (FEMA) / Reserve Bank of India’s guidelines including
money changing.
• Third party insurance and investment products marketed through our
branches and/ or our authorized representatives or agents.
• Card products like ATM/ Debit/Credit cards, and services.
• Factoring services.
• Merchant Services.
Consumer Protection Act 2019 (COPRA)

The Consumer Protection Act, 1986 was enacted to provide a simpler and
quicker access to redressal of consumer grievances. The Act for the first time
introduced the concept of ‘consumer’ and conferred express additional rights
on him. It is interesting to note that the Act doesn’t seek to protect every
consumer within the literal meaning of the term. The protection is meant for
the person who fits in the definition of ‘consumer’ given by the Act. The Act
has provided machinery whereby consumers can file their complaints which
will be entertained by the Consumer Forums with special powers so that action
can be taken against erring suppliers and the possible compensation may be
awarded to consumer for the hardships he has undergone. No court fee is
required to be paid to these forums and there is no need to engage a lawyer
to present the case.
Consumer Protection Act, 2019 has recently replaced the three decade old
Consumer Protection Act, 1986.
The new Act proposes a slew of measures and tightens the existing rules to
further safeguard consumer rights.
Coverage: All goods and services including banking, insurance,
transport, processing, electricity, physicians, etc. in private, public and
cooperative sector, and all banking services are covered.
• Limitation for the claim is 2 years from cause of action.
• Who is a consumer- The Consumer Protection Act defines
consumer as, who —
• buys any goods for a consideration which has been paid or promised
or partly paid and partly promised, or under any system of deferred
payment, and includes any user of such goods other than the person

who buys such goods for consideration paid or promised or partly paid
or partly promised, or under any system of deferred payment when
such use is made with the approval of such person, but does not include
a person who obtains such goods for resale or for any commercial
purpose; or
• hires or avails of any services for a consideration which has been paid
or promised or partly paid and partly promised, or under any system of
deferred payment, and includes any beneficiary of such services other
than the person who hires or avails of the services for consideration
paid or promised, or partly paid and partly promised, or under any
system of deferred payment, when such services are availed of with the
approval of the first mentioned person;
• The goods are bought for consideration - There must be a sale
transaction between a seller and a buyer; the sale must be of goods;
the buying of goods must be for consideration. The terms sale, goods,
and consideration have not been defined in the Consumer Protection
Act. The meaning of the terms ‘sale’, and ‘goods’ is to be construed
according to the Sale of Goods Act, and the meaning of the term
‘consideration’ is to be construed according to the Indian Contract Act.
In the new Act, there is the introduction of a central regulator (Central
Consumer Protection Authority - CCPA), strict penalties for misleading
advertisements and guidelines for e-commerce and electronic service
providers
• Three levels of redressal machinery under COPRA • District
Commission- empowered to settle claims up to Rs.1 Crore.
• State Commission – empowered to settle claim exceeds Rs. 1 crore,
but does not exceed Rs.10 crore and also to settle Appeals against Dist.
forum.
• National Commission - empowered to settle claim exceeds Rs.10
crores and also to settle Appeals against State Commission.
• Supreme Court to settle appeals against National commission within
30 days from the date of the order.
Right to Information Act (Act No.22/2005)

• The Parliament has enacted the Act known as the Right to
Information Act, 2005 which came into force on 15.6.2005.
• The Parliament has enacted the said act in order to promote the
transparency and accountability in the working of every public
authority.
• The expression Public Authority means: - Any Authority or Body or
Institution of self-government established or constituted:
• by or under the constitution ,
• by any other Law made by Parliament,
• by any other Law made by State Legislature,
• by Notification issued or Order made by the appropriate Government,
etc.
• Information includes records, documents, memos, e-mails, opinions,
advises, press releases, circulars, orders, log books, contracts, reports,

data material held in any electronic form and information relating to any
private body which can be accessed by a Public Authority.
• Every citizen of the Country who desires to have the information in
the control of the Public authority can make a request, subject to
payment of the fee prescribed by Government of India after 12/10
/2005. The request may be made in writing or through electronic means
in English or in Hindi or in the official language of the area.
• Our Bank has designated its officers as Central Public Information
Officers (CPIO) and Appellate Authorities (AA). Branch Manager is
ACPIO, Dy. Zonal Manager is CPIO and Zonal Manager is AA.
Banking Ombudsman Scheme, 2006

• The Banking Ombudsman Scheme enables an expeditious and
inexpensive forum to bank customers for resolution of complaints
relating to certain services rendered by banks.
• The Banking Ombudsman Scheme is introduced under Section 35 A
of the Banking Regulation Act, 1949 by RBI with effect from 1995.
• The Banking Ombudsman is a senior official appointed by the Reserve
Bank of India to redress customer complaints against deficiency in
certain banking services.
• All Scheduled Commercial Banks, Regional Rural Banks and
Scheduled Primary Co-operative Banks are covered under the Scheme.
• The Banking Ombudsman can receive and consider any complaint
relating to the following deficiency in banking services (including
internet banking):
• non-payment or inordinate delay in the payment or collection of
cheques, drafts, bills etc.;
• non-acceptance, without sufficient cause, of small denomination
notes tendered for any purpose, and for charging of commission in
respect thereof;
• non-acceptance, without sufficient cause, of coins tendered and for
charging of commission in respect thereof;
• non-payment or delay in payment of inward remittances ;
• failure to issue or delay in issue of drafts, pay orders or bankers’
cheques;
• non-adherence to prescribed working hours ;
• failure to provide or delay in providing a banking facility (other than
loans and advances) promised in writing by a bank or its direct selling
agents;
• delays, non-credit of proceeds to parties' accounts, non-payment of
deposit or non-observance of the Reserve Bank directives, if any,
applicable to rate of interest on deposits in any savings, current or other
account maintained with a bank ;
• complaints from Non-Resident Indians having accounts in India in
relation to their remittances from abroad, deposits and other bank
related matters;
• refusal to open deposit accounts without any valid reason for refusal;
• levying of charges without adequate prior notice to the customer;

• Non-adherence to the instructions of Reserve Bank on ATM / Debit
Card and Prepaid Card operations in India by the bank or its subsidiaries
• Non-adherence by the bank or its subsidiaries to the instructions of
Reserve Bank on credit card operations
• Non-adherence to the instructions of Reserve Bank with regard to
Mobile Banking / Electronic Banking service in India by the bank
• Non-disbursement or delay in disbursement of pension (to the extent
the grievance can be attributed to the action on the part of the bank
concerned, but not with regard to its employees);
• Refusal to accept or delay in accepting payment towards taxes, as
required by Reserve Bank/Government;
• Refusal to issue or delay in issuing, or failure to service or delay in
servicing or redemption of Government securities;
• Forced closure of deposit accounts without due notice or without
sufficient reason;
• Refusal to close or delay in closing the accounts;
• Non-adherence to the fair practices code as adopted by the bank;
• Non-adherence to the provisions of the Code of Bank's Commitments
to Customers issued by Banking Codes and Standards Board of India
and as adopted by the bank ;
• Non-observance of Reserve Bank guidelines on engagement of
recovery agents by banks;
• Non-adherence to Reserve Bank guidelines on para-banking activities
like sale of insurance / mutual fund /other third party investment
products by banks
• Any other matter relating to the violation of the directives issued by
the Reserve Bank in relation to banking or other services.
• A customer can also lodge a complaint on the following grounds of
deficiency in service with respect to loans and advances
• non-observance of Reserve Bank Directives on interest rates;
• delays in sanction, disbursement or non-observance of prescribed
time schedule for disposal of loan applications;
• non-acceptance of application for loans without furnishing valid
reasons to the applicant; and
• non-adherence to the provisions of the fair practices code for lenders
as adopted by the bank or Code of Bank’s Commitment to Customers,
as the case may be;
• non-observance of any other direction or instruction of the Reserve
Bank as may be specified by the Reserve Bank for this purpose from
time to time.
• The Banking Ombudsman may also deal with such other matter as
may be specified by the Reserve Bank from time to time.
• One can file a complaint before the Banking Ombudsman if the reply
is not received from the bank within a period of one month after the
bank concerned has received one’s representation, or the bank rejects
the complaint, or if the complainant is not satisfied with the reply given
by the bank.
• One’s complaint will not be considered if:

• One has not approached his bank for redressal of his grievance first.
• One has not made the complaint within one year from the date one
has received the reply of the bank or if no reply is received if it is more
than one year and one month from the date of representation to the
bank.
• The subject matter of the complaint is pending for disposal / has
already been dealt with at any other forum like court of law, consumer
court etc.
• Frivolous or vexatious.
• The institution complained against is not covered under the scheme.
• The subject matter of the complaint is not within the ambit of the
Banking Ombudsman.
• If the complaint is for the same subject matter that was settled
through the office of the Banking Ombudsman in any previous
proceedings.
• The Banking Ombudsman does not charge any fee for filing and
resolving customers’ complaints. The amount, if any, to be paid by the
bank to the complainant by way of compensation for any loss suffered
by the complainant is limited to the amount arising directly out of the
act or omission of the bank or Rs 20 lakhs, whichever is lower.
• The Banking Ombudsman may award compensation not exceeding
Rs 1 lakh to the complainant only in the case of complaints relating to
credit card operations for mental agony and harassment. The Banking
Ombudsman will take into account the loss of the complainant’s time,
expenses incurred by the complainant, harassment and mental anguish
suffered by the complainant while passing such award. If a complaint is
not settled by an agreement within a period of one month, the Banking
Ombudsman proceeds further to pass an award. Before passing an
award, the Banking Ombudsman provides reasonable opportunity to the
complainant and the bank, to present their case.
• It is up to the complainant to accept the award in full and final
settlement of your complaint or to reject it. If one is not satisfied with
the decision passed by the Banking Ombudsman, one can approach the
appellate authority against the Banking Ombudsmen’s decision.
• Appellate Authority is vested with a Deputy Governor of the RBI. One
can also explore any other recourse and/or remedies available to
him/her as per the law.
• The bank also has the option to file an appeal before the appellate
authority under the scheme.
• If one is aggrieved by the decision, one may, within 30 days of the
date of receipt of the award, appeal against the award before the
appellate authority. The appellate authority may, if he/ she is satisfied
that the applicant had sufficient cause for not making an application for
appeal within time, also allow a further period not exceeding 30 days.
The Insurance Ombudsman scheme
Created by the Government of India for individual policyholders to have
their complaints settled out of the courts system in a cost-effective,
efficient and impartial way.

One can approach the Ombudsman with complaint if:
You have first approached your insurance company with the complaint
and
 They have rejected it

 Not resolved it to your satisfaction or
 Not responded to it at all for 30 days
 Your complaint pertains to any policy you have taken in your capacity
as an individual and
 The value of the claim including expenses claimed is not above Rs 30
lakhs.
The complaint to the Ombudsman can be about:
a) Delay in settlement of claims, beyond the time specified in the

regulations, framed under the IRDAI Act, 1999.
b) Any partial or total repudiation of claims by the Life insurer, General
insurer or the Health insurer.
c) Any dispute about premium paid or payable in terms of insurance
policy
d) Misrepresentation of policy terms and conditions at any time in the
policy document or policy contract.
e) Legal construction of insurance policies in so far as the dispute
relates to claim.
f) Policy servicing related grievances against insurers and their agents
and intermediaries.
g) Issuance of life insurance policy, general insurance policy including
health insurance policy which is not in conformity with the proposal
form submitted by the proposer.
h) Non issuance of insurance policy after receipt of premium in life
insurance and general insurance including health insurance and
i) Any other matter resulting from the violation of provisions of the
Insurance Act, 1938 or the regulations, circulars, guidelines or
instructions issued by the IRDAI from time to time or the terms and
conditions of the policy contract, in so far as they relate to issues
mentioned at clauses (a) to (f)
Charges
As per Companies Act 2013, charge is defined in Sec. 2(16) of the act
as “charge means an interest or lien created on the property or assets
of the company or any of its undertakings or both as security and
includes mortgage”.

Various Type Of Charges-
• Pledge – (Sec. 172- Indian Contract Act-1872) it is defined as
bailment of goods to secure repayment of debt or performance of a
promise. Possession & control of goods remain with bank and ownership
remains with borrower. Bank can sell the goods in case of non-payment
by giving notice of sale which is mandatory. Bank has to take due care
of the goods, insure it. Pledger should have clear title to goods and any
defect or hazardous nature should be intimated to pledgee. On
repayment, bank is bound to hand over possession of goods to pledger.
• Hypothecation – (SARFAESI Act 2002- Sec 2 (n))-This is a charge
on movable assets. Fixed charge is created on specific and identifiable
assets like machinery, vehicle etc. Floating charge is created on assets
class which is constantly changing and not the same. Stock as a class
will remain but particular stocks will change. Charge floats or hovers
until it is crystalized. Possession and ownership of goods remain with
borrower. It can also be defined as mortgage of movable property and
will be converted into pledge on non-payment of debt by taking the
possession through SERFAESI Act 2002.
Vide HO Circular Letter No. 2018-19/116 dated 12-2-2019,
charge is to be noted with CERSAI in respect of following assets created
out of bank’s finance under Agriculture advance:
a. Hypothecation of standing crops (KCC);
b. Plant & Machinery under Agriculture allied activities;
c. Land & Building under commercial agriculture activities;
d. Stocks / Book debts or receivables, whether existing or future.
• Mortgage - (Transfer of Property Act-1882 Sec 58) Mortgage is
defined as transfer of interest in specific immovable property for
securing present debt, and future debt or for performance of an
engagement which may give rise to a pecuniary obligation.
• Simple mortgage- (Transfer of Property Act-1882 Sec 58(b))
Mortgagor binds himself personally to repay the amount failing which
bank has right to sell the property through court or file suit for recovery.
It requires registration.
• Equitable Mortgage: (Transfer of Property Act-1882 Sec 58(f))
Mortgage by deposit of Original title deeds, with intention to create
equitable mortgage. In some states it requires registration but in other
states it doesn’t. To prove intention in case of need, attendance register
is maintained and should be written by borrower himself or his relative
in case he is illiterate. Only owner of property can create mortgage by
handing over the title of the property to the creditor or its agent. Can
be created by a person; in any of the following towns, namely, Kolkata,
Chennai, Mumbai and in any other town which the State Government
concerned notified by notification in the Official Gazette. Oral assent of
the mortgagor to be recorded on register.
• In case of housing loan to NRI power of attorney holder, who is a
relative of NRI customer can create mortgage. Such POA should be
executed before Indian Embassy in that country and attested by the
embassy official. On receipt in India should be notarized and properly
stamped (within 3 months). The original borrower should confirm the
execution of documents and creation of mortgage subsequently.

• EQM can also be created by certified copy of original in very special
circumstances, with permission of appropriate authority, Where original
is irretrievably lost an FIR should be filed. Advertisement should be
given in 2 local newspapers regarding the loss and intention to create
mortgage with certified copies of the same, and inviting objections if
any from anybody. If no objections are received then EQM can be
created and all original back documents should be taken into custody.
In case of partition deed, there may be more than one original and after
assuring that which original belongs to whom EQM can be created. In
Maharashtra intimation of EQM has to be filed with SRO within a period
of 30 days and no extension is permitted. The EQM created should be
registered with CERSAI within 30 days of creation of EQM (as per
CERSAI rules) before sanction of loan a search should be conducted in
the site of CERSAI to ascertain any subsisting charge. Current
instruction is that, a token disbursement be made and EQM created and
registration of EQM done before full and final disbursement is made.
• Usufructuary Mortgage - (Transfer of Property Act-1882 Sec

58(d)) here possession of property is handed over to the mortgagee
who is entitled to enjoy the rent, income and other benefits accruing on
the property for repaying the obligation.
• Mortgage By Conditional Sale - (Transfer of Property Act-1882
Sec 58(c)) it is mortgage whereby the mortgagor ostensibly (only
perceived and not real) sale the immovable property to mortgagee on
certain conditions. The sale will be absolute if the money is not repaid
on specific date and on payment, the transaction of ostensible sale
become void.
• Anomalous Mortgage (Transfer of Property Act-1882 Sec 58(g) If
one or more of mortgages are combined, it becomes anomalous
mortgage.
• English Mortgage. (Transfer of Property Act-1882 Sec 58(e)) In
English mortgage the ownership of property is transferred to the
mortgagee and upon fulfilment of the contract, ownership is re-
conveyed to the mortgagor.
• Assignment- (Transfer of Property Act-1882 Sec 130)-Actionable
claims can be assigned. Actionable claim is a claim to any debt, not
secured by mortgage, pledge, hypothecation or any beneficial interest
in movable property not in possession of claimant, which the courts
consider as affording grounds of relief. LIC policy, Book debts, dues
from Govt. dept., NSC/KVP etc. Assignment can be legal which is in
writing, send a notice by the assignee and absolute transfer of
actionable claim.
• Lien. (Indian Contract Act 1872- Sec 170 & 171) - It is a right to
retain securities that come to banker in the normal course of business,
in respect of due by the customer. Lien are of - particular lien and
general lien.
• Particular lien can be exercised only on those securities, goods over
which the person has expended some labour/money etc.
• General lien extends to all securities that pass through the hands in
the normal course.

• Banker’s lien is general lien and is extensive. Bank cannot exercise
right of lien if there is a contract to the contrary.
• Negative lien is a declaration from borrower that he has not
encumbered nor will encumber the assets in favour of third parties as
long as he is indebted to the bank.
• Set Off. Set off is a right to appropriate a credit balance towards a
debit balance of the same person in the same right and capacity. This
involves netting of credit and debit balance with or without consent of
the customer. Debit balance should be due at time of set off and known
to the borrower. Credit balance should belong to the same person whose
debit balance is intended to be wiped off. For eg: if A is the borrower
and he is having a deposit jointly with B then bank cannot exercise this
right.
• Limited Company. Any charge created on the movable or
immovable property of the company should be registered with ROC
(registrar of companies) within a period of 30 days from the date of
creation of charge. Otherwise it will be void against the liquidator in
case of winding up and bank will rank as unsecured creditor (sec 77of
Companies Act 2013). But the charge will not be invalid against the
company as a going concern. Registrar can extend the date by another
270 days (maximum 300 days). Thereafter bank has to approach
Central Govt. for condonation of delay in filing the charge. Except
pledge all other charge requires registration with ROC, with an
exception of companies being required to register pledge over
shares. Before creating charge bank has to undertake a search of the
Register of charge maintained with ROC in respect of the company to
ensure that no prior charges exist. The charge should be filed in form
CHG 1 (both for creation and modification) within 30 days. For
satisfaction of charge Form CHG 4 to be used. CHG 8 is used for
application to Central Govt. for extension of time for registering the
charge.
• Suggested references
• Indian Contract Act 1872
• Transfer of property Act 1882
• Negotiable Instrument Act 1881
• Companies Act 2013
• SARFAESI Act 2002
Different Types of Borrowers/Execution of Documents

Banks generally grant advance to persons having legal capacity to enter into a
contract. Minors/lunatics/drunken persons etc. who cannot enter into a valid
contract may not be favoured as borrowers and no credit facilities may be
sanctioned to such persons. The borrowers may have different constitution
conferring on themselves various legal rights and responsibilities and banks as
creditors will be interested to know the exact constitution of the borrower.
Banks may also require additional undertakings information in some cases.
This information is very essential for the banks while getting the documents
executed from the borrowers. The documents can be executed only by the

persons who can validly bind the borrower. Common practice of most of the
banks is as-
Constitution Additional papers Persons authorised

of required
borrower
1.Individual ---- Individual in his personal capacity
2.Joint All the borrowers in their personal

---- capacity binding themselves jointly
and severally.
3.Sole Declaration regarding his sole Sole proprietor in his capacity as

Proprietor- interest in the business. sole proprietor. He is, however,
ship personally liable for all the dealings
and obligations in the name of
business.
4.Joint Hindu 1. Letter of Joint Hindu Family All documents to be signed by

Family giving details of all the Karta of HUF and also all major
coparceners including minors coparceners including Karta in
2. Declaration to the effect their individual capacity.
that the advances will be
utilised only for the family
business to be signed by Karta
& all other major coparceners.
5.Trusts 1. Copy of trust deed. All the trustees in their

2. Legal opinion regarding representative capacity or as per
the power of trustee to borrow. trust deed and supported by the
legal opinion.
6.Partnership 1. Copy of partnership deed. All partners in their representative

firm 2. Declaration from all capacity i.e. as partner and also in
partners to inform the bank of their individual capacity.
any change in constitution.
7.Limited 1. Articles and Memorandum Documents to be signed by
Companies of Association authorised persons in terms of
2. Copy of Certificate of board resolution in their
incorporation. representative capacity. The
3.Copy of Certificate of common seal of the company is
commencement of business also required to be affixed
(only in case of public limited
wherever necessary. The charge
companies)
created by the company over its
4. Copy of Board Resolution
assets will also require registration
empowering the company to
borrow from the bank and also
authorising managing director/

directors/other officers to under Section 125 of Companies
execute the documents as Act, 1956.
required by the bank.
5. Copy of the resolution of
general body meeting of the
company under Section 293 (1)
(D) authorising the company to
borrow in excess of its own paid
up capital and free reserve.
6.Declaration from the
company that borrowings will
remain within the powers
conferred on it as in (5) above
Various kinds of charge over securities

Nature of Types of Kind of charge Defined in Act
security security
Immovable Land & Building Mortgage Transfer of property

property Act 1882 sec.58
Actionable claims Book debts, Assignment Transfer of property

FDR,NSC Act 1882 sec.130
Life policies
Movable Plant & Pledge or Indian contract

property/goods Machinery, hypothecation/lien Act1872 sec.172
Stocks, vehicle Pledge
etc. SARFAESI Act 2002
Sec.2-n
Paper securities Shares, Lien Indian contract
Debentures, Act
Bonds Sec 170 & 171
Mutual fund
units. Etc.
Personal Promoters and Personal liability Indian Contract

guarantee 3rd party Act. 1872
Law of Limitation
To keep the documents alive and enforceable in law, banks have to obtain
renewal document, i.e. letter of acknowledgement of debt and security for
extending the period of limitation of documents. Limitation period of various
documents are as follows-
• D P Note – 3 years from date of execution

• All agreements 3 years from date of execution

• Agreement of guarantee – 3 years from date of invocation by
beneficiary or 3 years from repudiation by guarantor
• Term loan agreement – Each instalment will be treated as separate
dues and 3 years from due date of each instalments
• Mortgage Deed - 12 years from date of mortgage
• Decree – 12 years from date of decree
• Appeal to High Court against Lower Court- 90 days from the date of
decree
• Appeal to other Courts on the decree of lower court- 30 days from
date of decree
• Suit by State/Central Govt.- 30 years from the period when
limitation begins.

Risk, Capital & Fund Management
Capital
1. Capital Funds-Equity contribution o f o w n e r s . The b a s i c
a p p r o a c h o f capital adequacy framework is that a bank should have
sufficient capital to provide a stable resource to absorb any losses
arising from the risks in its business. Capital is divided into
different tiers according to the characteristics / qualities of each
qualifying instrument. For supervisory purposes capital is split into
two categories: Tier I and Tier II.
2. Common Equity Tier I (CET 1) Capital-A term used to refer to
one of the components of regulatory capital. It consists mainly of share
capital and disclosed reserves (minus goodwill, if any). Tier I items
are deemed to be of the highest quality because they are fully available
to cover losses Hence it is also termed as core capital.
3. Additional Tier I Capital- In addition to common equity Tier I
Capital (CET I) Basel III has proposed Additional Tier I Capital (ATI) to
the extent of 1.5% of the RWA (Risk Weighted assets). This consists
of Perpetual Non-Cumulative Preference Shares (PNCPS) and such other
eligible instruments as declared by RBI.
4. Tier II Capital-Refers to one of the components of regulatory
capital. Also known as supplementary capital, it consists of certain
reserves and certain t y p e s o f s u b o r d i n a t e d d e b t . Tier I I i t e m s
q u a l i f y a s r e g u l a t o r y capital to the extent that they can be used
to absorb losses arising from a Bank’s activities. Tier II's capital loss
absorption capacity is lower than that of Tier I capital.
5. Revaluation reserves-Revaluation reserves are a part of Tier-II
capital at a discount of 55%. These reserves arise from revaluation of
assets that are undervalued on the bank's books, typically bank
premises and marketable securities.
6. Capital reserves-That portion of a company's profits not paid out as
dividends to shareholders. They are also known as un-
distributable reserves and are ploughed back into the business.
7. Deferred Tax Assets-Unabsorbed depreciation and carry forward
of losses which can be set-off against future taxable income
which is considered as timing differences result in deferred tax
assets. The deferred Tax Assets are accounted as per the Accounting
Standard 22.
8. Deferred Tax Liabilities-Deferred tax liabilities have an effect
of increasing future year’s income tax payments, which indicates that
they are accrued income taxes and meet definition of liabilities.
9. Subordinated debt-Refers to the status of the debt. In the event of
the bankruptcy or liquidation of the debtor, subordinated debt only has a
secondary claim on repayments, after other debt has been repaid.
10. Hybrid debt capital instruments-In this category, fall a number of
capital instruments, which combine certain characteristics of equity and
certain characteristics of debt. Each has a particular feature, which can
be considered to affect its quality as capital. Where these instruments
have close similarities to equity, in particular when they are able
to support losses on an ongoing basis without triggering liquidation, they
may be included in Tier II capital.
11. BASEL Committee on Banking Supervision-The BASEL Committee

is a committee of bank supervisors consisting of members from
each of the G10 countries. The Committee is a forum for discussion
on the handling of specific supervisory problems of Banking Industries. It
coordinates the sharing of supervisory responsibilities among national
authorities in respect of banks' foreign establishments with the aim of
ensuring effective supervision of banks' activities worldwide.
12. BASEL Capital accord-The BASEL Capital Accord is an Agreement
concluded among country representatives in 1988 to develop
standardized risk-based capital requirements for banks across countries.
The Accord was replaced with a new capital adequacy framework
(BASEL II), published in June 2004. BASEL II is based on three
mutually reinforcing pillars has allow banks and supervisors to
evaluate properly the various risks that banks face. These three pillars
are:
I. Minimum capital requirements, which seek to refine the
present measurement framework
II. Supervisory review of an institution's capital adequacy and
internal assessment process;
III. Market discipline through effective disclosure to encourage
safe and sound banking practices
13. Risk Weighted Asset (RWA)-Risk Weight (RW) is a multiplication
factor prescribed by RBI to indicate the riskiness of the asset to the
bank. RBI has prescribed different RWs for different asset classes
/types of credit exposure. Risk weight for different assets vary e.g. 0%
on a Government Debt Security and 20% on a AAA rated loans etc.
Risk Weighted Asset (RWA) is bank’s on-balance sheet and off
balance sheet exposures , weighted according to Risk . This is used in
determining the capital requirement or Capital to Risk Weighted
Assets Ratio (CRAR) for the bank. Total RWA of the bank consists of
Credit RWA, Market RWA and Operational RWA.
14. CRAR(Capital to Risk Weighted Assets Ratio)-Capital to risk
weighted assets ratio is arrived at by dividing the capital of the bank with
aggregated risk weighted assets for credit risk, market risk
and operational risk. The higher the CRAR of a bank the better
capitalized it is.
Eligible Total Capital
CRAR= -------------------------------------------------------------------
Credit Risk RWA + Market Risk RWA + Operational Risk RWA
15. Credit Risk-The risk that a party to a contractual agreement or

transaction will be unable to meet its obligations or will default on
commitments. Credit risk can be associated with almost any financial
transaction. BASEL-II provides two options for measurement of capital
charge for credit risk-
1. Standardized approach (SA) - Under the SA, the banks use a risk-
weighting schedule for measuring the credit risk of its assets
by assigning risk weights based on the rating assigned by the
external credit rating agencies.
2. Internal rating based approach (IRB) - The IRB approach, on

the other hand, allows banks to use their own internal
ratings systems of counterparties and exposures, which permit
a finer differentiation of risk for various exposures and hence
delivers capital requirements that are better aligned to the degree
of risks. The IRB approaches are of two types:
a) Foundation IRB (FIRB): The bank estimates the
Probability of Default ( PD) a s s o c i a t e d w i t h e a c h
b o r r o w e r , a n d t h e s u p e r v i s o r supplies other inputs
such as Loss Given Default (LGD) and Exposure At
Default (EAD).
b) Advanced IRB (AIRB): In addition to Probability of Default
(PD), the bank estimates other inputs such as EAD and LGD.
The requirements for this approach are more exacting. The
adoption of advanced approaches would require the banks to
meet minimum requirements relating to internal ratings at the
outset and on an ongoing basis such as those relating to
the design of the rating system, operations, controls,
corporate governance, and estimation and validation of credit
risk components, viz., PD for both FIRB and AIRB and LGD
and EAD for AIRB.
16. Market risk-Market risk is defined as the risk of loss arising from adverse
movements in market prices or rates away from the rates or prices set
out in a transaction or agreement. The capital charge for market risk was
introduced by the BASEL Committee on Banking Supervision through the
Market Risk Amendment of January 1996 to the capital accord of 1988
(BASEL I Framework). There are two methodologies available to
estimate the capital requirement to cover market risks:
1) The Standardised Measurement Method: This method, currently
implemented by the Reserve Bank, adopts a ‘building block’
approach for interest-rate related and equity instruments which
differentiate capital requirements for ‘specific risk’ from those of
‘general market risk’. The ‘specific risk charge’ is designed to
protect against an adverse movement in the price of an individual
security due to factors related to the individual issuer. The ‘general
market risk charge’ is designed to protect against the interest rate
risk in the portfolio.
2) The Internal Models Approach (IMA): This method enables
banks to use their proprietary in-house method which must
meet the qualitative and quantitative criteria set out by the Basel
Committee on Banking Supervision (BCBS) and is subject to the
explicit approval of the supervisory authority.
17. Operational Risk-The revised BASEL II framework offers

the following three approaches for estimating capital charges for
operational risk:
I. The Basic Indicator Approach (BIA): This approach sets a charge
for operational risk as a fixed percentage ("alpha factor") of
a single indicator, which serves as a proxy for the bank’s risk
exposure.
II. The Standardised Approach (TSA): This approach requires
that the institution separate its operations into eight standard
business lines, and the capital charge for each business

line is calculated by multiplying gross income of that business
line by a factor (denoted beta) assigned to that business line.
III. Advanced Measurement Approach (AMA): Under t h i s a p p r o a c h ,
the regulatory capital requirement will equal the risk measure
generated by the banks’ internal operational risk measurement
system.
In India, the banks have been advised to adopt the BIA to estimate
the capital charge for operational risk and 15% of average
p o s i t i v e gross income of last three years is taken for calculating
capital charge for operational risk.
18. Internal Capital Adequacy Assessment Process (ICAAP)-In

terms of the guidelines on BASEL II, the banks are required to
have a board-approved policy on internal capital adequacy assessment
process (ICAAP) to assess the capital requirement as per ICAAP at the
solo as well as consolidated level. The ICAAP is required to form an
integral part of the management and decision-making culture of a bank.
ICAAP document is required to clearly demarcate the quantifiable and
qualitatively assessed risks. The ICAAP is also required to include
stress tests and scenario analyses, to be conducted periodically,
particularly in respect of the bank’s material risk exposures, in order to
evaluate the potential vulnerability of the bank to some unlikely but
plausible events or movements in the market conditions that could
have an adverse impact on the bank’s capital.
19. Supervisory Review Process (SRP)-Supervisory review process
envisages the establishment of suitable risk management systems in
banks and their review by the supervisory authority. The objective of
the SRP is to ensure that the banks have adequate capital to support
all the risks in their business as also to encourage them to develop
and use better risk management techniques for monitoring and
managing their risks.
20. Market Discipline-Market Discipline seeks to achieve increased
transparency through expanded disclosure requirements for banks.
21. Credit risk mitigation-Techniques used to mitigate the credit risks
through exposure being collateralised in whole or in part with cash or
securities or guaranteed by a third party.
22. Mortgage Back Security-A bond-type security in which the collateral
is provided by a pool of mortgages. Income from the
underlying mortgages is used to meet interest and principal repayments.
23. Derivative-A derivative instrument derives its value from
an underlying product. There are basically three derivatives
A. Forward Contract- A forward contract is an agreement between two
parties to buy or sell an agreed amount of a commodity or financial
instrument at an agreed price, for delivery on an agreed future date.
Future Contract- Is a standardized exchange tradable forward contract
executed at an exchange. In contrast to a futures contract, a forward
contract is not transferable or exchange tradable, its terms are not
standardized and no margin is exchanged. The buyer of the forward
contract is said to be long on the contract and the seller is said to
be short on the contract.
B. Options- An option is a contract which grants the buyer the right, but

not the obligation, to buy (call option) or sell (put option) an asset,
commodity, currency or financial instrument at an agreed rate
(exercise price on or before an agreed date (expiry or settlement
date). The buyer pays the seller an amount called the premium in
exchange for this right. This premium is the price of the option.
C. Swaps- Is an agreement to exchange future cash flow at pre-specified
Intervals. Typically one cash flow is based on a variable price and
other on affixed one.
24. Duration-Duration (Macaulay duration) measures the price volatility of
fixed income securities. It is often used in the comparison of interest
rate risk between securities with different coupons and different
maturities. It is defined as the weighted average time to cash flows of a
bond where the weights are nothing but the present value of the cash
flows themselves. It is expressed in years. The duration of a fixed
income security is always shorter than its term to maturity, except
in the case of zero coupon securities where they are the same.
25. Modified Duration-Modified Duration = Macaulay Duration/ (1+y/m),
where ‘y’ is the yield (%), ‘m’ is the number of times compounding
occurs in a year. For example if interest is paid twice a year m=2.
Modified Duration is a measure of the percentage change in price of
a bond for a 1% change in yield.
26. Off Balance Sheet Exposure-Off-Balance Sheet exposures refer to
the business activities of a bank that generally do not involve
booking assets (loans) and taking deposits. Off-balance sheet activities
normally generate fees, but produce liabilities or assets that
are deferred or contingent and thus, do not appear on the institution's
balance sheet until and unless they become actual assets or liabilities.
27. Current Exposure Method-The credit equivalent amount of a market
related off-balance sheet transaction is calculated using the
current exposure method by adding the current credit exposure to
the potential future credit exposure of these contracts. Current
c r e d i t e x p o s u r e i s defined as the sum of the positive mark to
market value of a contract.
Funds and Investment

1. High Cost Deposit-Deposits accepted above card rate (for
the deposits) of the bank.
2. Liquid Assets-Liquid assets consists of: cash, balances with RBI,
balances in current accounts with banks, money at call and short
notice, inter-bank placements due within 30 days and securities under
“held for trading” and “available for sale” categories, excluding
securities that do not have ready market.
3. Funding Volatility Ratio-Liquid assets [as above] to current and
savings deposits - (Higher the ratio, the better)
4. Market Liability Ratio-Inter-bank and money market deposit
liabilities to Average Total Assets
5. ALM-Asset Liability Management (ALM) is concerned with strategic
balance sheet management involving all market risks. It also deals with
liquidity management, funds management, trading and capital planning.
6. ALCO-Asset-Liability Management Committee (ALCO) is a strategic
decision making body, formulating and overseeing the function of asset
liability management (ALM) of a bank.

7. Banking B o o k -The b a n k i n g b o o k c o m p r i s e s a s s e t s a n d
liabilities, which are contracted basically on account of relationship or for
steady income and statutory obligations and are generally held till
maturity.
8. Venture Capital Fund-A fund set up for the purpose of investing in
startup businesses that is perceived to have excellent growth prospects
but does not have access to capital markets.
9. Held for Trading (HFT)-Securities where the intention is to trade by
taking advantage of short-term price / interest rate movements.
10. Available for Sale (AFS)-The securities available for sale are those
securities where the intention of the bank is neither to trade nor to
hold till maturity. These securities are valued at the fair value which is
determined by reference to the best available source of current
market quotations or other data relative to current value.
11. Yield to maturity (YTM) or Yield-The Yield to maturity (YTM) is the
yield promised to the bondholder on the assumption that the bond
will be held to maturity and coupon payments will be reinvested at the
YTM. It is a measure of the return of the bond.
12. Convexity-This represents the rate of change of duration. It is the
difference between actual price of a bond and the price estimated by
modified duration.
13. Foreign Currency Convertible Bond-A bond issued in foreign currency
abroad giving the investor the option to convert the bond into equity at
a fixed conversion price or as per a pre-determined pricing formula.
14. Trading Book-Investments in trading book are held for
generating profits on the short term differences in prices/yields. Held
for t r a d i n g ( HFT) a n d A v a i l a b l e f o r s a l e ( AFS) c a t e g o r y
c o n s t i t u t e trading book.
15. Stress testing-Stress testing is used to evaluate a bank’s
potential vulnerability to certain unlikely but plausible events or
movements in financial variables. The vulnerability is usually measured
with reference to the bank’s profitability and /or capital adequacy.
16. Scenario Analysis-A method in which the earnings or value impact is
computed for different interest rate scenario.
17. LIBOR-London Inter-Bank Offered Rate. The interest rate at which
banks offer to lend funds in the interbank market.
18. Basis Point-Is one hundredth of one percent. 1 basis point means
0.01%. Used for measuring change in interest rate/yield.
Basel Norms Basel frame work stands on 3 pillars.

• Minimum Regulatory capital requirements
• Supervisory review process and
• Market discipline.
• Capital requirements- Based on BASEL III guidelines, RBI
has framed guidelines for Indian banks in this regard. Under
pillar I banks are required to maintain a minimum total capital
of 9% of their Risk Weighted assets as capital for credit risk,
operational risk and market risk calculated as given in the
guidelines. The entire guidelines as per Basel III was to be fully
implemented by 31. 03. 2019, but which has been extended by RBI
up to 31.03.2020.

Common Equity 5.50
Capital Conservation buffer ( common equity) 2.50
Total including CCB 8.00
Additional Tier I 1.50
Minimum Tier I (5.50 + 1.50) 7.00
Tier II 2.00
Minimum total capital (7.00+2.00) 9.00
Total capital including CCB 11.50
CCB is an additional capital buffer to be created out of normal years profits
to be used during a period of down turn and stress. CCB is a product of the
subprime crisis that shook the world during 2008. Banks have been given time
until 2019 which has been extended up to 31.03.2020 by RBI.
The Phase -in arrangements of Basel III implementation in India, is as under-

(% of Total RWAs)
Minimum 31.03.16 31.03.17 31.03.18 31.03.20
Capital
Minimum 5.5% 5.5% 5.5% 5.5%
Common
Capital 0.625% 1.25% 1.875% 2.5%
Conservation
Total CET 1 6.125% 6.75% 7.375% 8%
(Minimum
Minimum Tier 1 Capital 7% 7% 7% 7%
Minimum Total Capital 9% 9% 9% 9%
Minimum Total Capital 9.625% 10.25% 10.875% 11.5%
+ CCB (i.e.CRAR)
One more type of capital which is envisaged in Basel III is counter cyclical
buffer, which is a capital buffer to be created during boom period of credit
expansion to take care of risk of loss during economically depressed times.
Supervisory Review Process: This deals with central bank’s powers to
regulate banking system to avoid risks building up in the system and to take
timely regulatory actions.
Market Discipline: To encourage banks to put in place series of disclosures
to various stake holders to instil confidence in the system and to apprise
them of the risk management policies and practices followed by banks.
CRAR – It is the Capital to Risk weighted asset Ratio. Capital consists
of Equity capital, Preference shares, General Reserves, P&L credit balance and
other unencumbered reserves. RWA is arrived at by multiplying asset value
to risk weight attached to different assets
Credit Conversion Factor: -As per Basel norms, off balance sheet items
carry risk to the bank like forex forward contracts, derivatives, contingent
Liabilities like letter of credit, bank guarantees etc. To capture risk inherent
in such exposures, and to provide capital charge to cover these risks, RBI has
stipulated certain credit conversion factors to convert these into
credit equivalents and provide capital accordingly. For e.g. If the total
guarantees and letter of credit of a bank is Rs.100 crores and RBI’s CCF is say
1.5% the credit equivalent is Rs.1.5cr on which 9% minimum capital
is to be maintained. CCF is linked to the duration of the exposure i.e.;
longer the duration of unexpired exposure higher the CCF and vice versa.

Leverage Ratio: The Basel III leverage ratio is defined as the capital
measure (the numerator) divided by the exposure measure
(the denominator), with this ratio expressed as a percentage
Capital Measure
Leverage Ratio =--------------------
Exposure Measure
The Basel Committee will use the revised framework, for testing a
minimum Tier 1 leverage ratio of 3% during the parallel run period up
to January 1, 2017. The Basel Committee will continue to track the impact of
using either Common Equity Tier 1 (CET1) or total regulatory capital as the
capital measure for the leverage ratio. The final calibration, and any further
adjustments to the definition, will be completed by 2017, with a view to
migrating to a Pillar 1 treatment on January 1, 2018. Currently, Indian banking
system is operating at a leverage ratio of more than 4.5%. The final minimum
leverage ratio will be stipulated taking into consideration the final rules
prescribed by the Basel Committee by end-2017. In the meantime, these
guidelines will serve as the basis for parallel run by banks and also for the
purpose of disclosures as outlined by RBI. During this period, Reserve
Bank will monitor individual banks against an indicative leverage ratio
of 4.5%. Additional transitional arrangements are set out in paragraph 16.5
below.
Liquidity Risk: BCBS had observed that one of the factors for the
recent financial crisis were due to inaccurate and ineffective
management of Liquidity Risk. To overcome this , BCBS had come out
with two ratios – Liquidity Coverage Ratio and Net Stable Funding Ratio
(NSFR)
 The Liquidity Coverage Ratio(LCR):This ratio ensures enough liquid
assets to survive an acute stress scenario lasting for 30 days .
 The objective of LCR is to promote short term resilience of the liquidity
risk profile of the banks. This is done by ensuring that a bank maintains
an adequate level of unencumbered HQLAs that can be converted into
cash to meet its liquidity needs for a 30 calendar day time horizon under a
significantly severe liquidity stress scenario specified by supervisors. At a
minimum, the stock of liquid assets should enable the bank to survive
until day 30 of the stress scenario, by which time it is assumed that
appropriate corrective actions can be taken
 This ratio is introduced from 1st January 2015.
 The LCR requirement would be binding on banks from January 1, 2015;
with a view to provide a transition time for banks, the requirement would
be minimum 60% for the calendar year 2015 i.e. with effect from January
1, 2015, and rise in equal steps to reach the minimum required level of
100% on January 1, 2019, as per the time-line given below:
January 1, January 1, January 1, January 1, January 1,
2015 2016 2017 2018 2019
Minimum 60% 70% 80% 90% 100%
LCR
 The formula for arriving LCR is LCR =Stock of high quality liquid assets
(HQLAs)/Total Net Cash Outflows over the next 30 calendar days ×100
 Liquid assets comprise of high quality assets that can be readily sold
or used as collateral to obtain funds in a range of stress scenarios.
They should be unencumbered i.e. without legal, regulatory or
operational impediments. HQLA are comprised of Level 1 and Level 2

assets. Level 1 assets generally include cash, central bank reserves, and
certain marketable securities backed by sovereigns and central banks,
among others. These assets are typically of the highest quality and the most
liquid, and there is no limit on the extent to which a bank can hold these
assets to meet the LCR. Level 2 assets are comprised of Level 2A and Level
2B assets. Level 2A assets include, for example, certain government
securities, covered bonds and corporate debt securities. Level 2B assets
include lower rated corporate bonds, residential mortgage backed securities
and equities that meet certain conditions. Level 2 assets may not in
aggregate account for more than 40% of a bank’s stock of HQLA. Level 2B
assets may not account for more than 15% of a bank’s total stock of HQLA.
 The Net Stable Funding Ratio: This ratio aims at promoting medium
to long term structure funding of assets and activities of the Banks.
BCBS aims to trial this ratio from 2012 and makes it mandatory in
January 2018.
 The objective of NSFR is to ensure that banks maintain a stable
funding profile in relation to the composition of their assets and off-
balance sheet activities. A sustainable funding structure is intended to
reduce the probability of erosion of a bank’s liquidity position due to
disruptions in a bank’s regular sources of funding that would increase
the risk of its failure and potentially lead to broader systemic stress.
The NSFR limits overreliance on short-term wholesale funding, encourages
better assessment of funding risk across all on-and off-balance sheet
items, and promotes funding stability
 Definition of NSFR: The NSFR is defined as the amount of available stable
funding relative to the amount of required stable funding.
“Available stable funding” is defined as the portion of capital and liabilities
expected to be reliable over the time horizon considered by the
NSFR, which extends to one year. The amount of stable funding
required ("Required stable funding") of a specific institution is a
function of the liquidity characteristics and residual maturities of the
various assets held by that institution as well as those of its
off-balance sheet (OBS) exposures
NSFR= (Available S t a b l e F u n d i n g ( ASF))/Required S t a b l e

Funding (RSF)) x 100 = should be 100% or above.
Prompt Corrective Action (PCA) Framework for Banks

PCA framework is a process or mechanism under which RBI can initiate a
corrective action which involves monitoring of certain performance indicators
of the banks as an early warning exercise and is initiated once
such thresholds as relating to capital, asset quality, ROA etc. are breached. Its
objective is to facilitate the banks to take corrective measures including those
prescribed by the Reserve Bank, in a timely manner, in order to restore their
financial health.
Capital, asset quality and profitability continue to be the key areas for
monitoring in the revised framework. Indicators to be tracked for Capital,
asset quality and profitability would be CRAR/ Common Equity Tier I ratio,
Net NPA ratio and Return on Assets respectively. Leverage would
be monitored additionally as part of the PCA framework. Breach of any risk

threshold would result in invocation of PCA. A bank will be placed under PCA
framework, based on the audited Annual Financial Results and the Supervisory
Assessment made by RBI. However, RBI may impose PCA on any bank during
the course of a year (including migration from one threshold to another) in case
the circumstances so warrant.
Once Bank are put under PCA, it has three risk threshold levels (1 being the
lowest and 3 the highest) based on where a bank stands on these ratios. Banks
with a capital to risk-weighted assets ratio (CRAR) of less than 10.25 per cent
but more than 7.75 per cent fall under threshold 1.
Those with CRAR of more than 6.25 per cent but less than 7.75 per cent fall in
the second threshold. In case a bank’s common equity Tier 1 (the bare minimum
capital under CRAR) falls below 3.625 per cent, it gets categorised under the
third threshold level.
Banks that have a net NPA of 6 per cent or more but less than 9 per cent fall
under threshold 1, and those with 12 per cent or more fall under the third
threshold level.
On profitability, banks with negative return on assets for two, three and four
consecutive years fall under threshold 1, threshold 2 and threshold 3,
respectively.
Banks are to undertake certain Mandatory actions as per Risk Threshold

level they breached and have to face discretionary actions from RBI ,
which is as under:

PCA M a t r i x
Risk Threshold Risk
Indicator Risk Threshold 1
2 Threshold 3
Area
Capital CRAR- Minimum regulatory up to 250 bps below more than 250 bps -
prescription for capital to risk Indicator but not
assets ratio + applicable exceeding 400
capital conservation buffer(CCB) bps below
Indicator
-
current minimum RBI prescription of
10.875% (9% minimum total capital
plus <8.375% but
<10.875% but In excess of
1.875%* of CCB as on March 31, >=6.87%
>=8.375% 312.50 bps
2018)
below Indicator
(Breach of either CRAR
or CET 1 ratio to And/or Regulatory pre-specified
trigger PCA) trigger of Common Equity Tier 1 more than
(CET 1min) + applicable capital 162.50 bps below
conservation buffer(CCB) up to 162.50 bps but not exceeding <3.625%
below Indicator 312.50 bps below
Indicator
current minimum RBI prescription of
7.375% (5.5% plus 1.875%* of CCB
as on March 31, 2018) <5.75% but
Breach of either CRAR or CET >=4.25%
1ratio to trigger PCA
<7.375% but
>=5.75%
Asset Quality Net Non-performing >=6.0% but <9.0% >=9.0% but < >=12.0%
advances (NNPA) ratio 12.0%
Profitability Return on assets (ROA) Negative ROA for Negative ROA Negative ROA
two consecutive for three for four
years consecutive consecutive years
years
Leverage Tier 1 Leverage ratio <=4.0% but > = < 3.5% (leverage
3.5% is over 28.6 times
(leverage is over 25 the Tier 1 capital)
times the Tier 1 capital)
*CCB would be 1.875% and 2.5% as on March 31, 2018 and March 31, 2019 (extended up to 31.03.2020) respectively.
Mandatory and discretionary actions

Discretionary
Specifications Mandatory actions
actions
Risk Threshold 1 Restriction on dividend distribution/remittance of profits. Special Supervisory
Promoters/owners/parent in the case of foreign banks to Interactions, Strategy
bring in capital related, Governance
Risk Threshold 2 In addition to mandatory actions of Threshold 1, related, Capital
Restriction on branch expansion; domestic and/or related,
overseas Higher provisions as part of the coverage Credit risk related,
regime Market risk related,
Risk Threshold 3 In addition to mandatory actions of Threshold 1, HR related,
Restriction on branch expansion; domestic and/or Profitability related,
overseas Restriction on management compensation and Operations related
directors’ fees, as applicable Any other

Loan to Value Ratio The loan-to-value ratio (LTV Ratio) is a lending risk
assessment ratio that Banks and Financial institutions arrive at before
sanctioning of Housing or Home Loans. The formula for calculating LTV ratio is:
Loan to Value Ratio = (Loan amount sanctioned/Apprised value of the property) x 100.
RBI, in its second bi-monthly monetary policy statement 2017-18, revised

the LTV ratio, Risk Weight and Standard Asset Provisioning rates, as
under, for loans sanctioned on or after June 7, 2017:
Category of LTV ratio (%) Risk Weight Standard Asset

Loan (%) Provision (%)
Up to Rs. Equal to and less 35
30 lakhs than 80%
More than 80% 50
and equal to and
less than 90%
Above Rs 30 Equal to and less 35 0.25%
lakhs and up than 80%
to
Above Rs 75 Equal to and 50
lakhs Less than 75%
Bank’s re-capitalisation:
Bank recapitalisation, as the name suggests, means recapitalising banks

with new capital to improve their balance sheet. The government, using
different instruments, infuses capital into banks undergoing credit crunch.
Capital is the money invested by shareholders in the business. Since the
government is the biggest shareholder in public sector banks, the
responsibility of infusing capital majorly lies with the government. The
recapitalisation plan comes into action when banks get caught in a
situation where their liabilities are comparatively higher than their assets. The
liquidity with banks is a liability as it is the money deposited by customers,
which needs to be paid sooner or later. Due to this their balance-sheet weakens and
banks find it difficult to raise capital from the open market. The government,
which is also the biggest shareholder, can infuse capital in banks by either
buying new shares or by issuing bonds.
The government is currently focused on maintaining its fiscal deficit at

3.50%. This means that the government cannot take out money from state
coffers and give it to banks. Finance Minister, in her second budget speech
on 1st Feb 2020, did not announce any capital infusion for the public sector
banks (PSBs). She said that the government had already infused Rs 3.5 lakh
crore in PSU Banks over the last few years.
The government front-loaded Rs 68,855 crore, out of Rs 70,000 crore

earmarked for capital infusion for the current fiscal, to take care of the
mega-merger plan announced in August 2019.

Financial Inclusion, Priority Sector & Agriculture Finance
Priority Sector – New guidelines HOBC 113/181 dated 09/01/2020
Broad Categories:
 Agriculture- Comprises Farm credit, Non-Farm Credit, & Agr.
Infrastructure. No distinction between Direct & Indirect agriculture
now. No separate targets either.
o Farm Credit: Includes all finances for farm activities [all ST/
MT/ LT loans]. To include, inter alia, Loans to
distressed/indebted farmers, Loans to SF/MF for purchase of
Agri. Land & Loans to Corporates/Societies, etc. up to Rs.2 cr.,
Loan to farmers upto Rs.50 lakhs against pledge of warehouse
receipt, repayable in 12 months.
o Agriculture Ancillary activities include Finances to Co-op
societies for marketing of produce [up to Rs.5 cr.], Agro-clinics
Agri-Business Centers up to Rs.20 lakhs (in deserving cases
up to Rs.25 lakhs), Food & Agro processing [up to Rs.100 Cr.
per borrower], PACs, LAMPS, FSS, MFI & NBFCs for onward
lending to farmers, etc. & RIDF contributions
o Agri. Infrastructure includes Godowns, Cold storage, chain of
cold storages etc., Soil conservation & watershed
development, Tissue culture/Seed production, Bio-technology,
Vermi compost, etc. [ Max. Rs.100 Cr. per borrower]
o Small and Marginal farmer is defined as:1) marginal farmer is
the farmer having land holding 1 hectare, small farmer is the
farmer having land holding above 1 ha and upto 2 hectares, 2)
landless agriculture labors, tenant farmers, oral lessee, share
cropper whose share of landholding is the S & M farmer
definition, 3) SHG & JLG if bank is maintaining disaggregated
data of such loans, 4) loan to FPC & farmers cooperatives
where membership of S & M farmers is more than 75% and
whose land holding share is not less than 75% of total land
holding.
Note: - Domestic banks are directed to ensure that overall lending to non-
corporate farmers doesn’t fall below the system-wide average of the last 3
years achievement. All banks have to achieve system-wide average as
given above, for the current year i.e. 2019-20, it is 12.11%. All efforts
should be taken to reach the level of 13.5% direct lending to the
beneficiaries who earlier constituted the direct agriculture sector.
 MSME- Medium Enterprises [new addn.]. Investment in P&M
remains unchanged i.e. @ 25 lac, 5 cr, & 10 cr for Micro, Small, &
Medium Entp. [Manufacturing] & @ 10 lac, 2 cr, & 5 cr for MSME
[Service]. Earlier sub-category & sub-targets under Micro sector
dispensed with Medium Entps. To enjoy MSME status up to 3 years
even after they outgrow beyond MSME limitations due to growth in
business. MSME includes factoring transactions, where assignor is a
micro, small or medium enterprise. Factoring transactions taking
place through the Trade Receivables Discounting system will be
classified under priority sector.

All loans to units of KVI sector are eligible for classification in
subsector of 7.5% in micro enterprises.
Inter Bank Participation Certificates bought by the bank on risk
sharing basis are eligible for classification under respective
categories of priority sector, provided the underlying assets are
eligible to be categorized under the respective categories of priority
sector and bank fulfil the RBI guidelines on IBPC.
The outstanding priority sector lending certificates (PSLC)
bought by banks will be eligible for classification under respective
categories of priority sector provided the assets are originated by
banks are eligible to be classified as priority sector advances and
fulfil the RBI guidelines on priority sector lending certificates. All
PSLC will expire on 31st March i.e. on closing of the FY.
Loan to cooperatives of producers in decentralised sector such as
artisans, village and cottage industries.
Credit outstanding under GCC, ACC, LUC, Swarojgar Credit Card,
Weaver’s Card etc. are covered in MSME.
Loan to NBFC / MFI for onward lending to MSME units shall be
covered in MSME.
PMJDY accounts with OD facilities up to Rs.10,000/- having age limit
between 18 to 65 years are covered under MSME and the OD facility
will be covered in Micro enterprises. No conditions will be attached
for OD facility up to Rs.2,000/- in PMJDY account.
Shortfall in achieving micro enterprises target will be contributed
with SIDBI and Mudra Bank.
 Housing Loan - Loan up Rs.35 lac in Metro, with project cost up to
Rs.45 lac; Loan up to Rs.25 lac, with PC up to Rs.30 lac [other
areas]. Loan for repair to damaged dwelling units up to Rs.5 lakhs
in urban areas and up to Rs.2 lakhs in rural areas are covered in PS.
Bank loan to any Govt. Agency for construction of dwelling units or
slum clearance up to Rs.10 lakhs are covered in PS. Loan sanctioned
by banks for housing projects exclusively for EWS & LIG under PMAY
are covered in PS. Shortfall in achieving of target to be contributed
with NHB.
 Export Credit- YOY incremental growth up to 2% of ANBC or
CEOBE (Credit Equivalent amount of Off-balance sheet exposure)
for PSBs and Foreign banks having more than 20 branches. 32% of
ANBC or CEOBE for foreign banks with less than 20 branches.
 Education- Education loan up to Rs.10 lakhs including vocational
courses irrespective of the sanctioned amount.
 Social Infrastructure [new addn.]- Includes Schools, Hospitals/
Health units, Sanitation, etc. Finances under this head up to Rs. 5
cr per borrower is under PSA.
 Renewable Energy [new addn.]- Includes finances up to Rs 15 cr
per borrower for solar generators, wind mills, micro-hydel, village
electrification, etc. However, max. limit per individual = Rs. 10 lac
 Others-
o Loan @ Rs. 50000/= [max] to Individuals/SHG/JLG whose
income does not exceed Rs. 1 lac [in Rural area] & Rs. 1.6 lac
[ Non-rural]

o Loan @ max Rs. 1 lac to non-farmers for repayment of debts
o Loans to SC/ST/ State organizations for inputs & marketing.
o Loan to NBFC/ MFI for purposes other than onward lending to
agriculture or MSME borrowers.
Targets :
o For Domestic Scheduled Commercial Banks and foreign banks
with 20 or more branches
o PSA = 40% of ANBC or CEOBE, whichever higher
o Agriculture = 18% [No targets for Indirect Agr.] of ANBC or
CEOBE, whichever higher
o Agr. Sub-target = 8% of ANBC or CEOBE, whichever higher
for SF/MF
o Micro = 7.5% of ANBC or CEOBE, whichever higher
o Weaker section = 10 % of ANBC or CEOBE, whichever higher.
 For foreign banks with less than 20 brs.

o 40% of ANBC or CEOBE, whichever higher by March 2020. No
agriculture, Micro enterprises and Advances to weaker Section
targets for this group.
Abbreviations
 ANBC = Adjusted net Bank Credit
 CEOBE = Credit equivalent of off-balance sheet items
 ANBC =
o Net Credit [Bank credit minus Bills rediscounted with RBI]
o (+) Non-SLR bonds
o (-) Long Term Bonds in Infrastructure investments etc
o (-) Advs. Against FCNR & NRE [ineligible for CRR & SLR]
o (-)Investments made in the Recapitalization Bonds
Pradhan Mantri Jan-Dhan Yojana –

(PMJDY) is National Mission for Financial Inclusion to ensure access to financial
services, namely, Banking/ Savings & Deposit Accounts, Remittance,
Credit, Insurance, Pension in an affordable manner. The highlights are-
 Account can be opened in any bank branch or Business Correspondent
(Bank Mitra) outlet.
 BSBDA Account are opened under this with features-
o There is no requirement of minimum balance.
o The services available include deposit and withdrawal of cash at
bank branch as well as ATMs; receipt/credit of money through
electronic payment channels or by means of collection/deposit of
cheques.
o Rupay debit card can be issued to the account holder after the
age of 18 years.
o Facility of ATM card or ATM-cum-Debit card. These facilities are
to be provided without any extra cost.

o Any individual above the age of 10 years can open BSBDA
Account.
 Illiterate customers can be issued RuPay Card, however, Branch Manager
will have to advise all the related risks to the illiterate account-holder at
the time of issuance of RuPay Card.
 To get benefit of Accidental Insurance Cover, RuPay Debit Card must be
used at least once in 90 days.
 If someone has two or more accounts and two or more RuPay Debit Cards,
accidental insurance cover is available in only one account /card.
 A person who is already having a bank account with any bank NEED NOT
to open a separate account under PMJDY. He/she will just have to get
issued a RuPay Card in his existing account to get benefit of insurance.
Credit facility can be extended in the existing account if it is being operated
satisfactorily.
 Overdraft facility up to Rs.10000/- will be available to one account holder
of PMJDY per household after 6 months of satisfactory conduct of the
account. To avoid duplication Aadhaar number will also be required.
 Accidental Insurance Cover is Rs.2.00 lac and no premium is charged to
the beneficiary -- NPCI will pay the premium. Accidental Insurance cover
of Rs.2.00 lac will be available to all accountholders. However, overdraft
facility upto Rs.10000/- will be available to only one person in the family
(preferably lady of the house).
 Documents required to open an account under Pradhan Mantri Jan-Dhan
Yojana-
o If Aadhaar Card/Aadhaar Number is available then no other
documents is required. If address has changed, then a self-
certification of current address is sufficient.
o If Aadhaar Card is not available, then any one of the following
Officially Valid Documents (OVD) is required: Voter ID Card, Driving
Licence, Passport, NREGA Card NPR certificate. If these documents
also contain your address, it can serve both as "Proof of Identity and
Address".
o If a person does not have any of the "officially valid documents"
mentioned above, but it is categorized as ‘low risk' by the banks,
then he/she can open a bank account by submitting any one of the
following documents:
 Identity Card with applicant's photograph issued by
Central/State Government Departments,
Statutory/Regulatory Authorities, Public Sector
Undertakings, Scheduled Commercial Banks and Public
Financial Institutions;
 Letter issued by a gazette officer, with a duly attested
photograph of the person.
 In PMJDY accounts are being opened with Zero balance. However, if the
account-holder wishes to get cheque book, he/she will have to fulfil
minimum balance and KYC criteria of the bank.
 Reserve Bank of India (RBI) vides its Press Release dated 26.08.2014 has
clarified as under: "Those persons who do not have any of the ‘officially
valid documents' can open "Small Accounts" with banks. A "Small Account"

can be opened on the basis of a self-attested photograph and putting
his/her signatures or thumb print in the presence of officials of the bank.
Such accounts have limitations regarding the aggregate credits (not more
than Rupees one lac in a FY), aggregate withdrawals (not more than
Rupees ten thousand in a month) and balance in the accounts (not more
than Rupees fifty thousand at any point of time). These accounts would be
valid normally for a period of twelve months. Thereafter, such accounts
would be allowed to continue for a further period of twelve more months,
if the account-holder provides a document showing that he/she has
applied for any of the Officially Valid Document, within 12 months of
opening the small account.
 Interest will be charged as per HO guidelines being issued time to time.
 All banks participating in PMJDY are on CBS (Core Banking Solution)
platform and the account can easily be transferred to any branch of the
bank in any city/town as per the request of the account-holder.
Business Correspondents & Business Facilitators Model-A tool for

Financial Inclusion
• Focus to rural and farm house holds, to explore innovations using
agency model, Govt. intends to promote MFIs Internal group “Rural
Credit & MF with Sri. H. R. Khan” Suggested BC & BF model Nonfinancial
& Financial service as pass through agents by leveraging MFI/NGOs
• RBI instructions during Jan 2006 to utilize the services of NGOs, MFIs &
other civil society organizations as intermediaries i.e., BC & BF
• Role of BFs- identification of borrowers, collection & preliminary
processing of loan applications, creating awareness about savings &
other products, advice on managing money & debt counselling.
Processing & submission of application to banks. Promoting & nurturing
SHGs/JLGs, post sanction monitoring &follow up & recovery.
• BFs-eligibility-NGOs, FCs, Co-ops, community based organizations, IT
enabled rural outlets of corporates, post offices, insurance agents, well-
functioning panchayats, village knowledge centres, Agri. clinics, KVKs,
KVIC/KVIB units - based on comfort level of banks
• BCs- in addition to BF, disbursal of small value credit, recovery,
collection of small value credit, sale of micro ins., mutual funds, pension
products, receipt & delivery of various instruments. Activities
undertaken by BCs are to be within the normal course of the bank’s
banking business, but conducted through the permitted entities at
places other than the bank premises.
• BCs-eligibility-NGO/MFIs set up under Societies/Trust Act: Post offices,
retired bank employees, ex-service men, retired govt. employees.
Banks have been permitted to engage the following entities as BCs:
• Individual kirana/medical/fair price shop owners
• Individual Public Call Office(PCO) operators
• Agents of Small Savings Schemes of Government of India/Insurance
Companies
• Individuals who own Petrol Pumps
• Retired teachers and

• Authorized functionaries of well-run Self Help Groups(SHGs) linked
to banks, NBFCs
• On a review and with a view to providing more flexibility to banks, it
has been decided to permit banks to engage any individual, including
those operating Common Service Centres (CSCs) as BC, subject to
banks’ comfort level and their carrying out suitable due diligence as also
instituting additional safeguards as may be considered appropriate to
minimize the agency risks.
• Working group to review the BC model on Payment of commission,
Capacity building of BC/BF, NABARD support for IIBF course, Risk
mitigation-Reputation, Legal, operational risks, Technology based
solutions for managing risks, Suitable limits on cash holding by
intermediaries, limits on individual customer payments & receipts.
• Transactions are accounted for & reflected in the bank’s book by end of
the day or next working day. All the agreements/contracts with the
customer shall specify that the banks are responsible to the customer
for acts of omission & commission of BC/BF.
• Grievance redressal-names & contact no.s : Time frame for response
not within 60 days-provision to approach Banking Ombudsman.
• Oversight of operations of BC-place of operation of BC and the base
branch-not to exceed 30 km in rural, semi urban, urban-in metro-5 km.
It can be decided by DCC and SLBC. While appointment of sub agents
due diligence should be done on BC/BF appointment of sub agents- due
diligence -criteria for BC/BF to follow- individuals as BC should not
appoint sub agents. Banks to closely monitor.
• Regulatory issues: settlement within the prescribed time limit, high
delivery costs. There are multiple risks: credit, operational, legal,
liquidity, reputational.
• Road Map for the future: Ensuring viability of BC by paying minimum
amount, this is again fixed by the committee. BCs to be used for full
range of services.
Joint Liability Group

• To augment flow of credit to farmers, especially small, marginal, tenant
farmers, oral lessees, share croppers/ individuals taking up farm
activities. To serve as collateral substitute for loans to be provided to
the target group. To build mutual trust and confidence between bank
and the target group. To minimize the risks in the loan portfolio for the
banks through group approach, cluster approach, peer education and
credit discipline. To provide food security to vulnerable section by
enhanced agriculture production, productivity and livelihood promotion
through JLG Mechanism. Farmers / JLGs who have cultivable fertile land
and are supplying the produce to corporate/agent and have also been
recommended by that corporate / agent. Adequate proof of land
holding will have to be obtained for facility.
• Model I Financing individual members of JLG, Model II Financing JLG
as a group
• Should have been recommended by the corporate/agent having
cultivable fertile land and are supplying produce to corporate/agent.

Undertaking from Farmers/JLG members to be obtained stating that no
loan is availed from other FI/ Bank. Members should belong to similar
socio-economic status, background and environment carrying out
farming and Allied activities and who agree to function as a joint liability
group. This way the groups would be homogeneous and organized by
likeminded farmers/Individuals and develop mutual trust and respect.
The members should be residing in the same village/ area/
neighbourhood and should know and trust each other well enough to
take up joint liability for group/individual Loans. Members who have
defaulted to any other formal financial Institution, in the past, are
debarred from the Group Membership. More than one person from the
same family should not be included in the same JLG.The repayments
can be made either directly by the JLG or the corporate / the
society who is standing as guarantor, shall send to the bank the
entire proceeds payable to the farmers / JLGs. The bank will make
payment to the farmers after deducting the loan dues. In the case of
pre harvest finance hypothecation of crop and in the case of post-
harvest finance according to nature of facility viz: receivables etc. In
the case of term loan facility combined hypothecation agreement
(Hypothecation of crop machinery etc.) For pledge loan – pledge of
ware house receipt. KYC documents as per Banks extant guideline to
be obtained and verified of all the members of the JLG. Ensuring KYC
compliance and proper end use of fund is the sole responsibility of the
branch. Hence, each branch must satisfy itself of the reliability of the
corporate / society, who is standing as guarantor. The branch will
conduct 100% verification of the assisted farmers and their farm land.
• Scoring as per the scoring model tools communicated by Central Office,
Risk Management Dept should be carried out.
SELF HELP GROUP - NABARD
Self Help Group is a homogeneous group of rural poor voluntarily

formed to save whatever amount they can conveniently save out of their
earnings and mutually agree to contribute to a common fund of the
group to be lent to the members for meeting their productive and
emergent credit needs. A pilot project for linking SHGs so as to facilitate
smoother and meaningful banking facilities to poor was launched by
NABARD in February 1992. RBI advised commercial banks to actively
participate in the linkage programme. The objective of SHG are as under:-
i) to evolve supplementary credit strategy for reaching rural poor.
ii) to build mutual trust and confidence between banks and the rural
poor.
iii) to encourage banking activities; both thrift as well as credit.
Salient Points on Self Help Group
1) Lending through SHGs reduces transaction costs, and aids in

timely recycling of funds, saving manpower. It is, therefore, in
the interest of rural and semi-urban branches to utilise SHGs for
delivery of credit to rural poor.

2) SHG is a voluntary association of people formed to attain common
goals on collective basis, at the village level.
3) However, emergence of SHGs as facilitators for delivering rural
credit to the poorest of society is a new concept.
4) Functions of SHG:
a) Organize meetings of group members.
b) Create group managed funds through savings (thrift)
c) Give loans to members (credit)
d) Keep records
e) Provide a forum for poor people to reap the benefits of
mutual trust/group empowerment.
5) Four stages are envisaged in the functioning of SHG. They are:
(a) Forming Stage (people start feeling the need to come
together);
(b) Storming stage (conflicts get resolved and leadership
emerges);
(c) Norming stage (cohesive unit emerges) and
(d) Performing stage (the group starts performing the functions
of thrift and credit).
6) Factors leading to emergence of SHGs
(a) Felt needs;
(b) Homogeneity;
(c) Solidarity;
(d) Democratic participation;
(e) Leadership;
(f) Benefits of collective action;
(g) Transparency of operations.
7) S. K. Kalia Working Group (November 1994) observed that
lending through SHGs could offer the much needed solution to
the twin problems being faced by the banks, viz., poor recovery
and high transaction cost in dealing with small borrowal accounts.
With SHGs, the managerial and supervisory load at branch can
be reduced. The burden of identification, assessing credit needs
and supervision will be externalized and reduced, thus reducing
transaction cost. SHGs are helpful in tapping small savings
(thrift). The group pressure leads to high rate of recovery.
8) The size of the group should be between 10 and 20. May be
formal (registered) or informal (unregistered).Size is maintained
below 20 to avoid registration formalities.
9) Size of the loan may be up to four times the savings of the group.
The SHG should prepare a credit plan and submit it to the branch
with loan application. Where the groups are sponsored by
VA/NGO, the loan application should be accompanied by the
sponsoring letter. The loan will be given after Grading/Rating
exercise of the SHG.
10) The SHG is not eligible for linkage if :
a) 50% or more members default in savings;
b) Less than 30% of the group savings have been used for
internal lending;
c) The group is in active existence for less than 6 months.
11) The credit limit should be determined on the basis of projected
average savings of the group for next three years. However,

drawing limit to be based on the actual level of group’s internal
savings.
12) Purpose of lending by the group to members left to the common
wisdom of the group.
13) Productive purpose should be encouraged out of loans from the
Bank.
14) The sanctioned loan should be credited to the group account and
the authorised representatives (President, Secretary and
Treasurer) may jointly draw money.
15) Rate of interest to SHGs: - As advised by H.O time to time
a) SHG to members: - As decided by SHG
16) Refinance by NABARD: 100% @ 7.0% p.a. to District Central
Cooperative Banks.
17) Repayment of loans by SHG may be within 3 to 5 years.
18) No guarantee or collateral to be insisted on.
19) Margin: Thrift of the group treated as margin.
20) SHGs may open savings accounts and deploy their savings in
lending to members before approaching for bank borrowing.
21) Lending to SHGs should form part of mainstream credit
operations of the branches.
22) Lending to SHG may be classified as priority sector on the basis
of main/predominant activity undertaken by the group out of
bank loan. It forms part of credit to weaker sections.
DAY - National Rural Livelihood Mission– Br.Cr.113/74 dated

10/07/2019
The Ministry of Rural Development, Govt. of India launched a new programme
National Rural Livelyhood Mission (NRLM), replacing SGSY on 1st April 2013. The
NRLM programme is renamed as Dindayal Antyoday Yojna NRLM (DAY-NRLM) on
29th March 2016. The blocks and districts where all the components of DAY-NRLM
will be implemented either through SRLMs or partner institutions or NGOs, are
intensive blocks and districts whereas remaining blocks and districts are non-
intensive blocks and districts. Women SHGs under DAY-NRLM consists of 10-20
women. In case of special SHGs i.e. groups in difficult areas, groups with disabled
persons and groups formed in remote tribal areas, the number may be 5.
DAY-NRLM will be providing financial assistance in the form of revolving fund, to
the SHGs which are in existence for 3-6 months and follow the norms of good
SHGs. i.e. Panchsutra. Regular Meetings, Regular Savings, Regular in house
Leading, Regular Recoveries and maintenance of proper books of accounts.
Amount of RF is between Rs.10,000 – 15,000 /depending on grading of the SHG.
Capital subsidy is discontinued in DAY-NRLM. DAY-NRLM has the provision of
interest subvention in the scheme to cover the difference between the lending
rates of the banks and 7%, on all the credits from banks/ financial institutions
availed by the women SHGs up to Rs.3 lakhs per SHG, maximum 5.5%. The
interest subvention is available only when bank charges maximum 12.5% interest.
In the identified districts – Intensive districts(250) banks will lend to women SHGs
by 7% upto an aggregate amount of Rs.3 lakhs. On prompt repayment SHG will
get additional interest subvention of 3%, thus by reducing effective rate of interest
to 4%. Community Investment Support Fund (CIF) will be provided to the SHGs
in intensive blocks routed through the village level, cluster level federations.

Eligibility Criteria for SHGs to avail loan :
i) SHG should be 6 months old and active. Age of SHG should be counted
from the date of formation and not from date of account opening.
ii) SHG must be following Panchsutra i.e. regular meetings, regular
savings, regular in house lending, regular recovery, up to date book of
accounts.
iii) SHG should qualify as per grading norms fixed by NABARD.
Loan Amount: The amount of various doses of credit are as under:

I) CASH CREDIT LOAN (CCL)
Branch has to sanction CCL limit Rs.5 lakhs for the period of 5 years with
yearly enhancement of limit. Drawing power may be enhanced at the time
of review of the account.
1) Drawing Power for 1st year: - 6 times of the existing corpus or Rs.100,000/-
which is higher.
2) Drawing power for 2nd year: - 8 times of the corpus at the time of annual
review / enhancement or minimum Rs.2 lakhs whichever is higher.
3) Drawing power for 3rd year: - minimum Rs.3 lakhs based on the micro
credit plan prepared by SHG and appraised by federation/support agency
and previous credit history.
4) Drawing power for 4th dose and onward: - Minimum Rs.5 lakhs based on
the micro credit plan prepared by SHG and appraised by the federation /
support agency and the previous credit history.
II) TERM LOAN (TL)
In case of Term Loan, the amount is sanctioned in doses as mentioned below:
1) First Dose: 6 times of existing corpus or minimum Rs.1 lakh whichever is

higher.
2) Second Dose: 8 times of the existing corpus or minimum Rs.2 lakhs
whichever is higher.
3) Third Dose: Minimum Rs.3 lakhs based on micro credit plan prepared by
the SHG and appraised by the federation/support agency and the previous
credit history.
4) Fourth dose: Minimum Rs.5 lakhs based on micro credit plan prepared by
SHG and appraised by federation/support agency and the previous credit
history.
Corpus consist of Total savings of SHG, revolving fund received, Interest Paid by
the bank on SB A/c in the last year, Interest generated in in-house lending, income
from other sources if any.
Repayment schedule:-
I) First dose/ first year will be repaid in 12-18 months in monthly or
quarterly instalment.
II) Second dose / second year will be repaid in 18 -24 months in monthly
or quarterly instalments.
III) Third dose / third year will be repaid in 24-36 months in monthly or
quarterly instalments.

IV) Fourth dose onwards: Repayment has to be either
monthly/quarterly/half yearly based on cash flow and it has to be
between 3 to 6 years.
Security and Margin: No collateral and no margin will be charged up to limit of Rs.
10 lakhs. No lien should be marked on SB account of SHG and no deposit should
be insisted while sanctioning of loan.
Others:
1) There will not be any processing fee up to limit Rs.50 thousand. But for
above loan limit, processing charges will be as per charges of agriculture
loan limits.
2) Assets created out of bank finance must be insured by the SHG.
3) While opening of SHG loan account, in free code 3, code 154 i.e. NRLM SHG
should be included. Branches should check inclusion of SHG data on the
internet site of Aajivika.
4) While opening of SB account of SHG, cust ID should be created first and
then form- 60 should be added through CUMM, then PAN number will not
be asked by the system. Branch need not take PAN card of all the members.
5) Branches have to create a customer ID of individual member of SHG
account through CUMM menu option, if presently not available in the finacle,
then branches have to link the individual member’s customer ID under SHG
Cust-ID through menu option CUMM-P.(Branch Circular No.110/133 dated
18.10.2016).
Self-Employment Scheme for Rehabilitation of Manual Scavengers

(SRMS)-
Manual Scavenger is defined in Prohibition of Employment as Manual Scavengers
and their Rehabilitation Act,2013 as a person engaged or employed at the
commencement of this act or at any time thereafter by an individual or a local
authority or an agency or a contractor, for manually cleaning, carrying, disposing
of, or otherwise handling in any manner, human excreta in an insanitary latrine,
or in an open drain or pit into which human excreta from the insanitary latrines is
disposed of, or on a railway track or in such other spaces or premises, as the
Central or a State Government may notify, before the excreta fully decomposes
in such manner and the expression “manual scavenging” shall be interpreted
accordingly.
• Cash Assistance-Identified manual scavengers, one from each family will
be eligible for cash assistance of Rs.40,000/- immediately after
identification and he will be allowed to withdraw the amount in monthly
instalment of RS.7,000/-
• Project Cost- Rs.10 lacs. However for sanitation projects such as vaccum
loader, suction machine with vehicle/Garbage disposal vehicle etc. it can be
extended to Rs.15 lacs.
• Provision of Capital Subsidy (Back-end subsidy)
o Up to Rs.2,00,000/- 50% of cost of project
o 2,00,000/- to 5,00,000/- Rs.1 lacs+33% of project cost between
RS.2-5 Lacs.
o 5,00,000/- to 10,00,000/- Rs. 2 lacs + 25% of project cost between
Rs. 5-10 lacs

o 10,00,000/- to 15,00,000 Rs.3,25,000/-.
• Rate of Interest-For project up to Rs.25,000/- 5% per annum (4% per
annum for women beneficiaries) o For project cost above Rs.25,000/- 6%
per annum
• Moratorium Period-Up to two years
• Training Period and Stipend during training period-Training period
two year and stipend during training period Rs.3,000/-
• Repayment Period (Including Moratorium period)
o For project costing up to Rs.5 lakhs – 5 years
o For projects costing more than Rs.5 lakhs - 7 years.
DAY-National Urban Livelihood Mission (NULM)-(Br.Cr.113/60 dated

25/06/2019)
Swarna Jayanti Shahari Rozgar Yojna (SJSRY), poverty alleviation programme for
urban poor of Government has been restructured and now has been named as
National Urban Livelihood Mission. Following are the special features of the
scheme-
• The scheme is applicable to all district Head Quarters and all the cities with
population of 1 lakh and above for urban poor living below Urban Poverty
Line.
• 30% beneficiaries should be women, 15% from minorities and 3%
beneficiaries should be differently abled persons.
• SC/ST beneficiaries should to the extent of proportion of their strength in
local population.
• Loan can be sanctioned individuals beneficiaries as well to groups.
• Minimum membership for SHG in NULM is 3.
• Maximum loan limit for individual beneficiary is Rs.2 lakhs and Rs.10 lakhs
for SHG.
• Banks will be eligible for interest subsidy at the rate of difference between
7% and prevailing rate of interest of Bank. Additional 3% interest subsidy
will be provided to all women SHGs, who repay their in time promptly.
• Interest subvention to be claimed through ZO/HO. HO will lodge claim in
“PAiSA”(Portal for Affordable Credit and Interest Subvention Access – a
portal developed by Allahabad Bank) and after receiving claim amount will
credit to borrowers account.
• Loan is to be repaid in 5 to 7 years after initial moratorium period of 6 to
18 months.
• Project cost not exceeds Rs.2 lacs for individuals, maximum Rs.10 lacs for
group.
• While opening loan account under NULM, 105 must be put in free code 3.
PMMY
• Activities under non-farm sector covering manufacturing, services and
trading activities and under farm sector allied agriculture activities
excluding crop loan, land development, well loan and minor irrigation
• Segments of PMMY
i) Shishu loan limit-Rs.50,000/- MIS code in free code 3----300 ii) Kishor loan
limit-Rs.50,001/- to 5 lakhs free code 3----369 iii) Tarun loan limit-above
Rs.5 lakhs to Rs.10 lakhs free code 3----370

• Margin –15%, for loan upto Rs.50,000/- NIL margin
• Security – 1) Hypothecation of assets created out of bank finance.
2) Personal guarantee of promoter or director as the case may be
• Insurance cover – CGFMU (under NCGTC)
• Charges – Refer br. Cir 112/129 dated 12/12/2018 w.e.f.15-01-2019.
• Documents – application for shishu – one page application
Application for others MSE1 and proposal MSME2
• Repayment – 5 to 10 years
• Subsidy – no subsidy in Mudra Loan
Prime Minister Employment Generation Programme (PMEGP)

(Br.Cr.102/139 dated 10/11/2008
The Scheme is implemented by Khadi and Village Industries Commission (KVIC),

as the nodal agency at the National level. At the State level, the Scheme is
implemented through State KVIC Directorates, State Khadi and Village Industries
Boards (KVIBs) and District Industries Centres (DICs) and banks. The
Government subsidy under the Scheme is routed by KVIC through the identified
Banks for eventual distribution to the beneficiaries / entrepreneurs in their Bank
accounts.
The maximum cost of the project/unit admissible under manufacturing sector is

Rs.25 lakh and under business/service sector is Rs.10 lakh.
Any individual, above 18 years of age. At least VIII standard pass for projects
costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the
business / service sector. Only new projects are considered for sanction under
PMEGP. Self Help Groups (including those belonging to BPL provided that they
have not availed benefits under any other Scheme), Institutions registered under
Societies Registration Act,1860; Production Co-operative Societies, and
Charitable Trusts are also eligible.
Existing Units (under PMRY, REGP or any other scheme of Government of India or
State Government) and the units that have already availed Government Subsidy
under any other scheme of Government of India or State Government are NOT
eligible.
Objectives:
I. To generate employment opportunities in rural as well as urban areas
of the country through setting up of new self-employment
ventures/projects/micro enterprises.
II. To bring together widely dispersed traditional artisans/ rural and
urban unemployed youth and give them self-employment
opportunities to the extent possible, at their place.
III. To provide continuous and sustainable employment to a large
segment of traditional and prospective artisans and rural and urban
unemployed youth in the country, so as to help arrest migration of
rural youth to urban areas.
IV. To increase the wage earning capacity of artisans and contribute to
increase in the growth rate of rural and urban employment.

Benefits:
 The maximum cost of the project/unit admissible under manufacturing

sector is Rs.25 lakh and under business/service sector is Rs.10 lakh.
 Per capita investment should not exceed ₹ 1.00 lakh in plain areas and
₹ 1.50 lakhs in Hilly areas.
 Own contribution 5% to 10% of project cost.
 General category beneficiaries can avail of margin money subsidy of 25
% of the project cost in rural areas and 15% in urban areas. For
beneficiaries belonging to special categories such as scheduled
caste/scheduled tribe /women the margin money subsidy is 35% in
rural areas and 25% in urban areas.
Quantum of Margin Money /Subsidy is given as follows:

Beneficiary’s own
Rate of
Categories of beneficiaries under PMEGP contribution (of
Subsidy
project cost)
Area (location of project /unit) Urban Rural
General Category 10% 15% 25%
Special (including SC/ ST/ OBC/ Minorities/
Women, Physically handicapped, Ex- 05% 25% 35%
Servicemen, NER, Hill and Border areas etc.
Other information
 Repayment of 84 months.
 Application can be forwarded by KVIC, KVIB & DIC.
 Every state is allotted to a PSB as a nodal Bank for settlement of subsidy
claim. Therefore branch to send subsidy claim to the authorized branch of
nodal bank only.
 Subsidy should be kept in Subsidy Reserve Fund A/c under lock-in-period
of 3 years. It can be appropriated after that with the permission of
sponsoring department (KVIC, KVIB, DIC) only.
 Interest charged to the loan account will be net of subsidy.
2nd Financial Assistance under PMEGP (Br.Cr.113/08 dated 03-04-2019)
This loan is available to the units for upgrading, which are running well in
terms of turnover, profit making and repaying the loan promptly.
Financial assistance up to Rs.1 crs can be given to manufacturing unit and Rs.25
lakhs to service sector units.
Objectives: 1) to fulfil the need of additional financial assistance for upgrading
and expansion to successful and well performing units.
2) To cater the need for bringing the new technology/ automation to modernize
the existing unit.
3) To enhance the productivity of the existing unit with additional financial
assistance.
4) To enhance the capacity of the existing unit with additional employment
generation.
Eligibility: 1) All existing units financed under PMEGP / MUDRA and whose margin
money is adjusted and loan is repaid properly within stipulated time.
2) Unit should have been making profit for last 3 years.
3) Registration under Udyog Aadhaar is mandatory.

4) Beneficiary may apply to the same bank from where he has availed 1st loan or
he may apply to another bank also.
5) Second loan should lead to additional employment generation.
Quantum and nature of financial assistance:
1) Maximum cost of project unit under manufacturing sector for upgradation
is Rs.1 crores.
2) Maximum cost of project unit under service / trading sector for upgradation
is Rs.25 lakhs.
3) Beneficiary contribution is 10% of proposed expansion / upgradation.
4) Rate of subsidy is 15% (NER and hilly states 20%)
5) Financial assistance by the banks will be in the form of term loan.
6) Ceiling of construction of building should not exceed 25% of the sanctioned
project cost.
7) The capital expenditure component including cost of construction should
not exceed 60% of the total project cost. Working capital cost should not
exceed 40% of the project cost.
Other Conditions :
1) For 2nd loan clearance certificate of the first bank is necessary.

2) As per existing guidelines lock-in-period for margin money of 2nd loan is
18 months.
Implementing and Monitoring Agency:
At national level it is KVIC and at state level KVIB & DIC. On PMEGP e-portal
there is a separate link for 2nd financial assistance. Concerned bank will
sanction loan within 60 days and claim margin money as per procedure in
PMEGP. Margin Money will be kept in TDR and no interest will be paid.
Concerned bank and agency will make joint inspection. Third party
inspection will be carried out by KVIC separately. CGTMSE cover can be
obtained by paying requisite fee.
STAND UP INDIA
Shri Narendra Modi, Hon’ble Prime Minister of India in his Independence Day
speech on 15th August 2015 unveiled Stand Up India Scheme. The scheme
promotes entrepreneurship at grass root level for economic empowerment and
job creation. The scheme aims at institutional credit structure for underserved
sector of people like SC, ST and woman entrepreneurs above 18 years. The
scheme covers all bank branches of India and expect to reach 2.5 lakh cases upto
31 March 2017.The scheme is operated in 3 ways :-
1) Directly at the branch
2) Through SIDBI’s Stand Up India portal (www.standupmitra.in)
3) Through Lead District Manager
This loan can be given to greenfield enterprises only. The potential borrower will
register on the portal first. He will answer a set of 8-10 questions. Depending
upon the response, applicant will be classified as ready borrower or trainee
borrower. Ready borrower doesn’t require any hand holding, loan application
process starts and application number is generated. Information of the borrower

is shared with concerned bank branch, LDM, SIDBI and NABARD. The offices of
SIDBI/NABARD will be Stand Up Connect Centre (SUCC). Generated application
will be tracked by all the above. If applicant indicates need for hand holding, then
the application is shared by LDM, SUCC and indicated Hand Holding agency. Once
the hand holding is done properly, to the satisfaction of LDM and borrower,
application is generated and shared with concerned bank branch.
In Stand up India, applicants from SC, ST category and woman are eligible for
loan. Loan limit may be between Rs.10 lakhs to 1crore. Loan shall be composite
loan of term loan for plant and machinery and working capital. Bank finance will
be 75% of project cost and the rate of interest would be MCLR+3%+tenor
premium. Loan will be repayable in 7 years with moratorium of 18 months. Besides
primary security the Stand Up India Loans are covered under NCGTC and norms
are aligned with CGTMSE scheme. Stipulated margin is 25%, of which borrower’s
contribution will be 10% and rest can be provided in convergence with other
central/state govt. schemes. DLCC will review the progress. While opening loan
account, in free code 3….372, Stand Up India Scheme should be added.
Details of the scheme are given in Br.Circular 110/51 dated 27-05-2016
STAR START UP SCHEME

• Eligibility -- Entity incorporated or registered in India not prior to 5 years.
Annual turnover not exceeding Rs.25 crores in any preceding financial year. Entity
should be working towards innovation, development, deployment or
commercialization of new products, processes and services driven by technology
or intellectual property. Entity must obtain certification from inter–ministerial
board set up for the scheme.
• Quantum of finance -- Term Loan/Working Capital/Non Fund based limit.
Mini: Rs.0.10 Crores Maxi : Rs.5.00 Crores.
• Margin -- Term Loan-25%, working capital-10%.
• Security -- Primary– Hypothecation/mortgage of assets purchased out of
bank finance.
• Collateral – CGTMSE/credit guarantee funds for start-up by NCGTC.
• Repayment - Working Capital: 12 months subject to annual review.
Term Loan: 120 months including moratorium of 24 months.
• Delegation -- NBGLCC and above.
• Note: Any seed capital/venture capital invested should be treated as margin
/ equity for DER.
PRADHAN MANTRI AWAS YOJANA

 Prime Minister has envisioned “Housing for All by 2022”
 Pradhan Mantri Awas Yojana was launched in the entire nation on 17-06-
2015.
 This mission is for urban areas and will be implemented during 2015-22.
 It is operational in all statutory towns and planning areas as notified with
respect to the statutory town and which surrounds the concerned municipal
areas.
1. In Situ – slum redevelopment.
Slum rehabilitation of slum dwellers with participation of private developers
using land as resource.

2. Affordable housing through credit linked subsidy scheme - CLSS.
3. Affordable housing in partnership with public and private sectors.
4. Subsidy for beneficiary- led individual housing construction.
 CLSS vertical of the scheme is monitored by monitoring committee

consisting of secretary ( Ministry of Housing and Urban poverty alleviation)
and Secretary (DFS) as Co-chairs.
 National housing bank(NHB) and Housing and Urban Development
Corporation (HUDCO) have been identified as Central Nodal Agencies.
 Beneficiary family comprises Husband, Wife, unmarried sons and unmarried
daughters.
 Condition of the scheme – beneficiary family should not own a pucca house
either in his / her name or in the name of any family member in any part
of India.
 Credit linked subsidy scheme (CLSS) is available to economically weaker
section and lower income group. Family where household family income is
Rs.3 lakhs and dwelling unit of 30 Sq.mtr. Is Economically weaker section(
EWS). Family having household income Rs.3- 6 lakhs belongs to lower
income group( LIG).
 Beneficiaries of EWS & LIG seeking housing loan from banks, housing
finance institutions or like institutions are eligible for interest subsidy at the
rate of 6.5% (loan Rs.6 lakhs) Net present Value of interest subsidy is
calculated at the discounted rate of 9%.
 For loan up to 9 lakhs (for MIG-I) interest subsidy is 4% & for loan up to 12
lakhs (for MIG-II) interest subsidy is 3%.
 Repayment period may be 20 years, up to which interest subsidy is
provided.
 Credit linked subsidy will be available for new construction and or addition
of rooms, kitchen, toilet etc. to the existing dwellings as incremental
housing.
 Carpet area for EWS beneficiary is 30Sq.mtr., even though beneficiary may
build bigger house, but interest subvention will be available for 30 Sqmtr.
portion only.
 Carpet area for LIG beneficiary is 60Sq.mtr., even though beneficiary may
build bigger house, but interest subvention will be available for 60 Sqmtr.
portion only.
 Note ; Interest subsidy @ 6.5% for tenure of 20 years or during tenure of
loan whichever is lower.
 Processing fee: 0.25% of sanction limit. Bank has to claim max Rs.1500/-
(per account as processing fee from NHB)
 Scheme is implemented in MIG I & MIGII cities
Loan tenure : 9 lakhs & 12 lakhs
Carpet area : 90 mtrs. & 110 mtrs (as per HOBC)
Tenure : 20 years in both cases
Bank may sanction more loan but the interest subvention will be available
up to this amount.
Household income : Mini. 6 lakhs & 12 lakhs

Max 12 lakhs & 18 lakhs

Product Free Code 3
EWS 445
LIG 448
MIG-I 449
MIG-II 450
PMAY (GRAMIN)
 Old Name of the Scheme:- Indira Awas Yojana
 Launched on 20 November 2016 by Shri.Narendra Modi, Prime Minister of
India.
 Aim of the scheme:- To construct 1 Crore pucca houses in rural areas in
next 3 years by providing financial assistance.
Eligibility :-
1) The beneficiaries are selected using housing deprivation parameters in
the Socio Economic and Caste Census (SECC), 2011.
2) Preference is given to homeless or who are living in kuchha house.
3) Every year a list of beneficiaries is made.
4) 60% of the target earmarked for SC/ST subject to availability of
beneficiaries
Financial Assistance :-
1) Plane Areas :- Rs.1,20,000/-
2) Hilly Areas :- Rs.1,30,000/-
3) Along with financial assistance, every beneficiary will be offered 90 to 95
days wages for construction work, which would be almost Rs.18,000/-. A
sum of Rs.12,000/- will be offered for construction of toilet.
Other Benefits
1) Financial Assistance will be transferred to the bank or Post Office account
of the beneficiary.
2) Minimum space of the house is 25 Sq.meters.
3) Training or Engineer will be given for construction and the house will be
built with latest technology and earthquake proof and safe from other
natural calamities.
PRADHANMANTRI CREDIT SCHEME FOR POWERLOOM WEAVERS

HOBC 112/72 dated 31.08.2018
AIM:- To provide Margin Money subsidy and interest reimbursement as against
the credit facility availed under PMMY by the powerloom weavers/ units.
Margin Money subsidy against the credit facility under Stand up India scheme.
PMMY(Category I) - Eligible beneficiaries: Existing Individual Powerloom
units, new individual/group enterprises, invlolved in weaving activity who are
registered with MSME/ Udyog Aadhar/ Information memorandum(IM)
acknowledgement issued by office of the textile commissioner. Group
enterprises will be covered without credit guarantee of the govt. and as per the
lending norms of the bank. Unit should not have benefited under ATUF scheme.
Financial Assistance:

1) Margin Money Subsidy @20% of the project cost having ceiling of Rs.1.00
lakh.
2) Interest subvention @6% / year both for working capital and term loan up
to Rs.10.00 lakhs for maximum period of 5 years.
3) Maximum loan limit will be Rs.10 lakhs.
4) Only new loans are eligible for the scheme.
5) Credit guarantee fee 1% of the loan amount or actual fee whichever is less
is charged by the CGTMSE/ NCGTC. It is not applicable to group activity.
STAND UP INDIA (Category II) - Eligible beneficiaries (Power Tex Stand Up

India Scheme)
1) Only new powerloom units established by person belonging to SC, ST or
Woman entrepreneur.
2) In case of non-individual units at least 51% of the shareholding and
controlling stake should be held either by SC, ST or woman entrepreneur.
Financial Assistance:
1) 25% of margin money subsidy up to a project cost of Rs.1 crore with a
ceiling of Rs.25 lakhs, the borrower is required to bring 10% of the project
cost as his/her own contribution.
2) Loan shall be from Rs.10 lakhs to Rs.1 crore.
3) Repayment shall be as per prevailing norms of the bank.
4) Credit guarantee fee 1% of the loan amount or actual fee whichever is less
is charged by the CGTMSE/ NCGTC.
Process flow for PowerTex Mudra Scheme and Power Tex Stand Up India Scheme
is as under:-
a) The borrower will submit application to the ministry through online portal
www.ipowertexindia.gov.in
b) After initial scrutiny ministry will forward the application online to the
concerned bank branch directly.
c) The branch will approve the application and fill the sanction details and also
upload the sanction letter.
d) After approval of application and after installation and commissioning of the
machinery, unit will submit request for inspection by the Joint Inspection
Team (Team=branch+Regional Office of Textile Commission).
Claim Processing:
1) Branch will submit interest subsidy claims online to the nodal office.
2) Nodal office will forward the claim to the ministry.
3) Office of the textile commissioner will release the subsidy through the bank.
Atal Pension Yojana-

Government of India has launched the ATAL PENSION YOJANA scheme to provide
defined pension, depending on the contribution, and its period.
Following are special features of this scheme-
• The scheme will focus on all Citizen of India especially those in the
unorganized sector, who do not have any formal pension provision. It will
encourage the people to save voluntarily for retirement benefits.
• Person aged between 18 years and 40 years, who have their Bank account
and are not member of any other statutory social security scheme, who are
not income tax payer are eligible to subscribe under this scheme.
• Minimum contribution (at the age of 18) would be Rs.42/- per month to get
pension of Rs.1000/- per month starting at the age of 60. Contribution
amount may vary depending upon the age of subscriber and amount of
pension required. Maximum contribution would Rs.1454/- per month to
have pension of Rs.5,000/- per month if a subscriber joins the scheme at
the age of 40 Thus minimum pension would be RS.1000/- and maximum
would be Rs.5000/-
• Maximum period of contribution at the age of 18 would be 42 years and
and, and if person joins at the age of 40 years it would be 20 years.
• Existing Swavalamban Scheme Subscribers between the age of 18-40
would be migrated to Atal Pension Yojna.
• There is penalty for default – Rs.1/- per month for contribution up to
Rs.100/- per month, Rs.2/- per month for contribution up to Rs.101 to
500/- per month and Rs.5/- per month for contribution between Rs.501/-
to 1000/- per month and Rs.10/- per month for contribution beyond
Rs.1001/- per month.
• Discontinuation of payments of contribution amount may lead to following
 After 6 months account will be frozen.
 After 12 months account will be deactivated.
 After 24 months account will be closed.
• Continuous information alerts will be sent to subscribers by way of SMS.
• Exit before the age of 60 is permitted by making specific application to
PFRDA or in the event of death of beneficiary or terminal disease.
• Upon completion of 60 years of age, the subscriber will submit the request
to the concerned Bank for drawing the guaranteed pension amount.
Atal Pension Yojana (APY) – Full Details with Applications.

(A) Hand out on Atal Pension Yojana (APY).
1) Open menu option ‘EPAY’ and click on ‘PENSION’ option.
2) New Screen open and click on ‘ATAL PENSION YOJANA (APY)’
(now only this option available).
3) New screen open and options are
(a)‘ATAL PENSION YOJANA (APY) SUBSCRIBER REGISTRATION
FORM’.
(b) ‘ATAL PENSION ACKNOWLEDGEMENT’.
(c) ‘ATAL PENSION DOWNLOAD2’.
(d) PRAN Upload.
(e) Atal Pension Scroll.
(f) Atal Pension Scroll Node.

4) Now click on ‘ATAL PENSION YOJANA (APY) - SUBSCRIBER
REGISTRATION FORM’.
5) New screen open and default ‘Add’ (Add / Modify / Inquiry /
Verify) option selected. Default today’s date also reflects. Just
put subscriber SB account number and click on submit.
6) New screen open and customer details will automatically
populated as name, date of birth, mobile no, Aadhaar Number
and Pan no / Form60/Form61.
7) Now select radio button Title of subscriber and put details
marital status also. Write name of spouse and Spouse Aadhaar
Number. Also write Nominee’s name and Nominee Aadhaar in
appropriate column. Select Nominee relationship with the
subscriber. You have to furnish additional details of Guardian in
case of Nominee is a minor.
8) Select Whether beneficiary of other security schemes as ‘Yes’ or
‘No’.
9) Select Whether Income Tax Payer as ‘Yes’ or ‘No’.
10) Select Pension amount from radio button as Rs. 1000/- or Rs.
2000/- or Rs. 3000/- or Rs. 4000/- or Rs. 5000/-.
11) After selecting the pension amount the monthly instalment
automatically populated in screen.
12) Now submit and finish message reflect.
13) Verify through same menu by another user. After putting
subscriber account number subscribers PRAN number will
populated in appropriate column. Now submit the same.
(B) Handout on upgrade / downgrade of pension amount in APY.

(1) The option for upgrade / downgrade of pension amount would be
permitted once in year during the month of April 2019. A Menu option
to process upgrade / downgrade of pension is already provided in the
APY module which would be enabled in April 2019 after receiving
suitable instructions from PFRDA.
(2) Basic Requirement to exercise upgrade / downgrade option.
(a) Subscribers must have contributed regularly and all his
previous contributions till the last month have been paid.
(b) Upgradation of Pension - Differential amount is payable which
comprises of.
(i) Difference between the old contribution amount and New
contribution amount multiplied by number of months plus
Interest @8% p.a on monthly compounding basis.
(ii) The differential amount has to be paid first and only then
would the request for change in pension amount updated.
(iii) New contribution amount would be calculated on the age
as on date of PRAN registration.
(c) Downgradation of Pension - The difference amount would be
refunded to subscriber savings account after change request
has been uploaded to NSDL.
(3) Operational Procedure for Entering the Change Request in EPAY Menu.
(a) A new link / Menu option “Pension Amt Upgrade/ Downgrade”
already is available in APY module to enable branches to register
the change requests. On clicking on the link, a data input page

opens. A Drop down Box is available (Actions permitted
ADD/Inquiry/Verify/Delete).
(b) ADD mode
(i) Choose ADD option. Enter PRAN number in the designated
box and Submit.
(ii) Next page opens. Basic details like Account number, PRAN,
Name, Date of Application, Date of Birth, Age, old pension,
contribution, frequency etc. would be displayed. New pension
amount has to be selected from the drop down box. Now
Submit.
(iii) System will now check, calculate and display the following
amounts.
 System calculates the differential amount payable
including interest. It will also display the bank charges
payable.
 System will also check if any installments upto March
2017 are in default and if yes, displays the total amount
payable along with penalty.
(c) Inquiry mode - Please use the inquiry mode to check the details
entered in ADD mode. If the new pension amount chosen and the
new contribution amount are as per scheme, you may proceed to
next step i.e, recovering the differential amount and default
instalments, if any, using TM menu in finacle. If you find any error,
please exit and use DELETE option to delete the record. The record
cannot be deleted once the same has been verified.
(d) Recovery of Amount payable and Default Instalments.
(i) Use TM menu to post separate vouchers sets for.
o Differential amount - debit the customer’s account
and credit Br. “APY Pool Account SOLIDSUNCR889”.
o Bank Charges - debit the customer’s account and
credit Br. P&L account.
o Default instalments - debit the customer’s account
and credit Br. “APY Pool Account SOLIDSUNCR889”.
o Please note down the transaction IDs & date.
(e) Verification Mode - A different user has to login to the menu.

Choose verify option. On this page, please enter the transaction ID
and date in the respective boxes. System will check for the
transaction ID’s and the amount and permit you to proceed. Now
Click on Finish.
(f) The record is now successfully added to the UPLOAD file.
(4) Important points.
(a) The option can be exercised only once a year in the month
of April.
(b) “Form to upgrade / downgrade Pension Amount” (attached)
needs to be obtained from the interested subscriber duly
filled in and signed. The inbuilt acknowledgement form
should be filled in, signed by branch official and handed
over to the subscriber. The main portion should be
carefully filed with the main application form of the
subscriber.

(c) Contribution (Instalment) amount upto March 2019 should
NOT be in arrears. Else, the same needs to be paid along
with Penalty.
(d) The differential amount, in case of upgrade, along with
interest @ 8% p.a compounded monthly is payable
upfront. This amount needs to be remitted first to PFRDA.
The change request would be effected thereafter.
(e) Bank charges of Rs.25/- payable per request. PFRDA would
recover another Rs.25/- from the account of the customer
at their end. Branches to prepare and post separate
voucher set for Bank charges. This amount to be credited
to branch P&L account.
(f) Branches to display prominently in their notice board the
availability of the upgrade / downgrade option in APY
scheme. All APY subscribers to be contacted by branches
and availability of upgrade / downgrade facility informed.
This is essential as Mobile numbers were not updated
properly in CBS in most of the accounts and hence bulk
SMS cannot be sent.
(g) The menu option in APY module would be open for
registration of upgrade / down grade requests upto 25th
of April 2019. Branches to collect the applications, ADD
the data, recover the differential / Default amounts and
verify on daily basis. It would be the responsibility of the
Branch to complete the exercise on the same day to avoid
complaints from the subscribers.
(C) Hand out on Voluntarily exit from APY (Atal Pension Yojana)
(1) Now voluntarily exit from APY can be done from branch itself. Invoke
menu EPAY and click on Pension and APY and proceed further.
(2) The conditions are –
(a) APY account status should be “ACTIVE”.
(b) SOL to which the APY account has been linked (opened) can only
lodge the request. If SB account has been transferred to another
SOL, then an IOM has to be forwarded first to us for modification
of subscriber details at NSDL giving the new SOL ID, IFSC code
& MICR code. The new SOL would thereafter lodge the request.
Please note that if the first SOL lodges the request, the refund
would get returned to PFRDA due to incorrect IFSC code and the
branch has to reconcile this.
(c) Mobile number should be available in the SB account (linked to
PRAN) in Finacle. Mobile number would be picked up
automatically and populated in the central file at HO. As
otherwise the record would be rejected by NSDL. Hence,
branches to check this before proceeding to lodge closure
request.
(d) APY closure form duly filled up, signed by subscriber and
acknowledged by the branch should be carefully filed with APY
account opening form and should be preserved for future
scrutiny.
(e) Signature of subscriber on the APY closure form to be tallied and
verified with customer records.

(3) Lodgement of APY voluntary exit (closure) request.
(a) Choose “voluntary exit from APY” menu option from
EPAY>>Pension>>Atal Pension Yojana>> voluntary exit from
APY.
(b) Four options are available – ADD, VERIFY, INQUIRE and DELETE.
(c) Select “ADD” option. Enter the PRAN number of the customer in
the given box. Click on submit. A page containing details of the
subscriber is displayed. The request should carefully check
whether the details like PRAN, Account number, Name etc.
match with that given in the APY account closure form or not.
(d) Branch has to click the correct reason for closure as indicated by
the customer in his APY closure form. Three options are
available. When the “Others” option is ticked, the reason given
by the subscriber needs to be typed in the given box in brief.
Do not use special characters or junk values here which may
lead to rejection of the record. When any of the other two
options is ticked, NO message/ reason needs to be typed in the
box.
(e) Now Click on “close account” button. A message “Closure request
for PRAN ----- entered. Now Please verify the same.
(4) Now VERIFY. Another user has to open the “voluntary exit from APY”
option. Select “VERIFY” option. Enter the PRAN number in the box and
click on submit. The details of the subscriber for whom the closure
request has been entered along with the reason for closure would be
displayed. If all particulars are found correct, the official may proceed
to press the submit button. A message “voluntary exit request for PRAN
---------- verified & Closed successfully.”
(5) If the details on the page do not match with the closure application or if
a wrong PRAN is selected by mistake, the user can exit the menu by
clicking on cancel button.
(6) Branch can check the details of PRAN for which closure request has been
lodged by using the “INQUIRY” option.
(7) If ADD option was already exercised and it was discovered that a wrong
PRAN has been selected, then “DELETE” option to be used to delete the
record. Please note that DELETE option will NOT work if closure request
has been verified. Upon clicking the submit button the message
“Request for Voluntary exit of PRAN --------- deleted successfully.”
(8) One may check the status in “Atal Pension Yojana (APY) – subscriber
registration” inquiry. The account status would be “INACTIVE”.
(9) Now branches need not send any APY closure requests to HO but use the
above functionality to lodge such requests. For any APY closure requests
forwarded during this month i.e, April, branches to inquire the account
status. If status is found “ACTIVE” then may use the above menu option.
(D) Hand out on any modification in APY.

(1) Branch has to forward IOM to APY.BOI@bankofindia.co.in containing the
following details and recommendation along with scan copy of customer
application / verified copy of proof of DOB (AADHAR / PAN) to enable them
to take up the issue with PFRDA / NSDL.
(a) Subscriber Name :
(b) PRAN :
(c) Date of APY Application :

(d) Date of PRAN activation :
(e) Pension Amount :
(f) Account No :
(2) In case of Change Date of Birth (DOB).
(a) Enclose a verified copy of proof of DOB (AADHAR / PAN).
(b) Write details as per Incorrect DOB and Age as per Incorrect
DOB and Premium as per Incorrect DOB.
(c) Write details as per Correct DOB and Age as per Correct DOB
and Premium as per Correct DOB.
(3) In Case of Nominee Change. - Nominee details.
(a) Name of Nominee (New) :
(b) Is nominee Minor : Y/N
(i) If yes, then Date of Birth :
(ii) Name of Guardian :
(c) Aadhar number of Nominee :
(d) Relationship of nominee with subscriber:
(4) For Subscriber Name / Address Modification kindly provide the following
details.
(a) Present name in PRAN Card.
(b) New Name / New Address (CUMM to be modified first).
(c) Reason for changing Subscriber Name.
(d) Verified copy of AADHAR / PAN.
(5) In Case of Mobile No / E-mail id Change in APY Subscriber amount.
(a) Mobile No. (New).
(b) E- Mail ID (new).
(6) In Case of SB Account No. Change for deducting APY Subscriber amount.
(a) Present SB account no.
(b) New Account no. which is to be updated.
(c) Reason for change in account no.
(7) Note- Before forwarding application for change in DOB / Name / Mobile
No / Email etc. to Head Office, please ensure to modify the same in
CUMM first.
(E) Hand out on deceased claim settlement procedure in APY.

(1) Exit in case of death of the Subscriber: In case, the Subscriber dies
before the age of 60 years, there are two options,
(a) Closure of APY account - In case, spouse wishes to exit from the
scheme and close the account, the corpus will be settled in the name
of spouse. If spouse is not present (where Subscriber is not married,
divorced, legally separated or spouse has expired), then the corpus
will be settled in the name of the nominee.
(b) Continuation of APY account (only for Spouse) – The spouse would
have an option to continue contributing to APY accounts of the
Subscriber, which can be maintained in the spouse's name, for the
remaining vesting period, till the original Subscriber would have
attained the age of 60 years. The spouse of the Subscriber shall be
entitled to receive the same pension amount as that of the Subscriber
until the death of the spouse.
(2) In case of death of the Subscriber before 60 years of age,
(a) The Branch Official of APY-SP shall ensure that the spouse / nominee
has filled up the correct form i.e. Account Closure Form for Death.

(b) In case of married Subscriber, the Branch Official will identify the
spouse (as registered in the APY system of CRA) and shall ensure
that the form is filled up only by the spouse who is default nominee
under APY. In case, the spouse is not present (where Subscriber is
not married, divorced, legally separated or spouse has expired),the
Branch Official will identify the nominee (as registered in the APY
system of CRA) and shall ensure that the form is filled up by the
correct nominee.
(c) If the form is submitted by spouse, Branch Official shall check that
spouse has provided the correct option in the form i.e., whether APY
account to be closed or to be continued by spouse.
(d) The branch officials have to check that the spouse / nominee has
provided the complete and correct details in the form including the
Bank Account Number along with the IFS Code.
(e) In case of continuation of APY account by Spouse, Bank Official shall
collect separate form for continuation under APY.
(f) The Branch Official shall also collect the relevant documents for
closure of account as per existing Banking norms / stipulated by
PFRDA.
(g) In case the exit request is submitted by any other claimant (other
than the spouse / nominee registered in the APY system of CRA)
Branch Official shall also collect a legal heir certificate OR a certified
copy of family member’s certificate issued by Executive Magistrate
indicating the relationship of the Claimant with the subscriber.
(3) It will be responsibility of the Branch Official to check the veracity of the
exit request and of the documents submitted along with the request.
(4) The Branch Official shall check that the Bank Account provided in the
closure form is active (if it is of the same bank), else shall confirm
the same with spouse / nominee.
(5) Acceptance and Issuance of Acknowledgment. If the exit form along
with the complete details and documents (as required) is correct, the
Branch Official shall accept the exit request. The Branch Official shall
issue an acknowledgment to the Subscriber / spouse / claimant (as
per the request) mentioning the Bank Account details to which the
APY corpus of the Subscriber would be credited.
(6) Submission of Requests to CRA.
(a) The APY-SPs shall forward all the exit requests to CRA for processing
along with the covering letter. A scanned image of the request (along
with the IFSC code) may also be forwarded to ‘APY Claimassist’ on
(apyclaimassist@nsdl.co.in) to initiate the process. As an alternative,
the requests shall be forwarded to CRA in the following address, APY
Claim Processing Cell, 1st Floor, Times Tower, Kamala Mills
Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013.
(b) The letter should be signed by the Authorised Signatory or the
Compliance Officer / Branch Head of the APY-SP.
(c) In case of voluntary exit by Subscriber, Branch Official shall select the
relevant remark in the form for transfer of Govt. co-contribution i.e.,
Credited, not credited, returned. If Branch Official has provided the
remarks as "Credited", the amount equivalent to Govt co-contribution
along with return will be deducted from the corpus of the subscriber
and balance amount will be transferred to Subscriber.
(7) Processing of requests at CRA.

(a) CRA will handle the physical exit requests administratively.
(b) CRA will only check for the Claimant’s name in the exit request
received (received from the APY-SP) for death of the Subscriber. In
case there is a mismatch in the Spouse / Nominee Name available in
APY database and the Spouse / Nominee name in exit request form),
the request will be kept on hold and the APY-SP will be informed to
provide for clarification.
(c) Once the exit request is processed, the redeemed amount based on
the units available in APY account will be transferred electronically to
Subscriber / Spouse / Nominee Bank Account as provided in APY
Closure Form.
(d) On transfer of funds, APY Claim Processing Cell will send a
confirmation to APY-SP about execution of exit request.
(e) In case of voluntary exit, if the Subscriber has already availed the
Govt. Cocontribution, the equivalent amount along with return will be
deducted from the corpus of the Subscriber and balance amount will
be transferred to Subscriber.
(F) Hand out on Various Grievances / Requests regarding Atal

Pension Yojana (APY).
(1) Majority of the requests / grievances pertains to.
(a) Transaction statement not received.
(b) PRAN card not received (No physical card issued in case of APY).
(c) Aadhaar updation.
(2) With regard to above, NSDL-CRA has developed a frontend facility which
would enables the nodal offices (Banks) to serve the subscribers in a
better way by directing them to use these online facilities instead of
approaching the bank branch every time.
(3) To download Transaction Statement follow the below process.
(a)Visit: https://npslite-nsdl.com/CRAlite/EPranAPYOnloadAction.do
(b) Select from 2 option (with PRAN or without PRAN).
(c) If selected with PRAN.
(i) Enter PRAN.
(ii) Bank Account Number.
(iii) From “view of subscriber” option, selected SOT view.
(iv) Enter captcha and submit.
(d) If selected with without PRAN.
(i) Subscriber Name.
(iii) Date of Birth.
(iv) From “view of subscriber” option, selected SOT view.
(e) Note - Data entered must match with CRA records.
(4) To download e-PRAN follow the below process.
(a) Visit:https://npslite-nsdl.com/CRAlite/EPranAPYOnloadAction.do
(b) Select from 2 option (with PRAN or without PRAN).
(c) If selected with PRAN.
(i) Enter PRAN.
(iii) From “view of subscriber” option, selected APY e-PRAN
view.
(iv) Enter captcha and submit.
(d) If selected with without PRAN.

(i) Subscriber Name.
(iii) Date of Birth
(iv) From “view of subscriber” option, selected APY e-PRAN
view.
(e) Note - Data entered must match with CRA records.
(5) Process of Seeding of Aadhaar in APY PRAN.
(a) Visit : https://npslite-nsdl.com/CRAlite/AadhaarOnloadAction.do
(b) Enter PRAN, Aadhaar Number and Captcha in the relevant boxes
and submit.
(c) One Time Password (OTP) will be sent to registered mobile
number in UIDAI (Aadhaar) database. (not the registered mobile
number in CRA database).
(d) On successful submission of request, 10 digit acknowledgement
number will be displayed as a confirmation of seeded aadhaar.
(6) Process for accessing “APY Mobile Application”.
(a) Visit - Google Play Store.
(b) Type APY and NPS Lite.
(c) Download the APP “APY and NPS Lite”.
(7) APY Mobile APP features.
(a) Access through PRAN & One Time Password.
(b) Download transaction statement (Financial Year Wise).
(c) Facility to check last 5 contributions received.
(d) Details like name, address, pension amount, contribution
premium can be checked.
(e) Note - OTP will be sent to mobile number registered in CRA
records.
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Pradhan Mantri Suraksha Bima Yojna was introduced by GOI to provide accident
insurance cover to citizens of India. Features of the scheme are as under:-
1) Applicant must be savings bank account holder of the branch.
2) Age of the applicant must be between 18 to 70
3) Yearly premium is Rs.12. It will be deducted by auto debit method only.
4) Rs.2 lakh insurance cover is provided to the account holder who joins the
scheme.
5) Rs.2 lakh Insurance cover is provided for death, total irrevocable loss of
both eyes, both hands or both legs in the accident. Rs.1 lakh cover is
provided for loss of one eye, one leg or one hand in the accident.
6) Branch has to ensure that SB account holder retains the premium amount
in the account at the time of renewal.
7) If the renewal is not done then the scheme is lapsed. Account holder can
again join the scheme in future by making fresh application to the branch.
8) Insurance premium of Rs.12/- is appropriated in the following way:-
Rs. 10/- per annum per member to insurance company Rs. 1/- per annum
per member to BC/Micro/Corporate/Agent per annum per member Rs. 1/-
per annum per member to bank as administrative expenses
9) In Bank of India, PMSBY is administered by New India Assurance Co. Ltd.

REVISED RULES FOR THE PRADHAN MANTRI SURAKSHA BIMA YOJANA
DETAILS OF THE SCHEME:
PMSBY will be an Accident Insurance Scheme offering accidental death and
disability cover for death or disability on account of an accident. It would
be a one year cover, renewable from year to year. The scheme would be
offered / administered through Public Sector General Insurance Companies
(PSGICs) and other General Insurance companies willing to offer the
product on similar terms with necessary approvals and tie up with Banks
for this purpose. Participating banks will be free to engage any such
insurance company for implementing the scheme for their subscribers.
Scope of coverage: All individual bank account holders in the age group
of 18 to 70 years in participating banks will be entitled to join. In case of
multiple bank accounts held by an individual in one or different banks, the
person would be eligible to join the scheme through one bank account only.
Aadhar would be the primary KYC for the bank account.
Enrollment Modality / Period: The cover shall be for the one year period
stretching from 1st June to 31st May for which option to join / pay by auto-
debit from the designated bank account on the prescribed forms will be
required to be given by 31st May of every year. Joining subsequently on
payment of full annual premium would be possible. However, applicants
may give an indefinite / longer option for enrolment / auto-debit, subject
to continuation of the scheme with terms as may be revised on the basis of
past experience. Individuals who exit the scheme at any point may re-join
the scheme in future years through the above modality. New entrants into
the eligible category from year to year or currently eligible individuals who
did not join earlier shall be able to join in future years while the scheme is
continuing.
Benefits: As per the following table: Table of Benefits Sum Insured

a Death Rs. 2 Lakh
b Total and irrecoverable loss of both eyes or loss of use Rs. 2 Lakh
of both hands or feet or loss of sight of one eye and loss
of use of hand or foot
c Total and irrecoverable loss of sight of one eye or loss Rs. 1 Lakh
of use of one hand or foot
Premium: Rs.12/- per annum per member. The premium will be deducted
from the account holder’s bank account through ‘auto debit’ facility in one
instalment on or before 1 st June of each annual coverage period under the
scheme. However, in cases where auto debit takes place after 1st June, the
cover shall commence from the date of auto debit of premium by Bank. The
premium would be reviewed based on annual claims experience. However,
barring unforeseen adverse outcomes of extreme nature, efforts would be
made to ensure that there is no upward revision of premium in the first
three years.
Eligibility Conditions: Individual bank account holders of participating
banks aged between 18 years (completed) and 70 years (age nearer
birthday) who give their consent to join / enable auto-debit, as per the
above modality, will be enrolled into the scheme.
Master Policy Holder: Participating Bank will be the Master policy holder
on behalf of the participating subscribers. A simple and subscriber friendly
administration & claim settlement process shall be finalized by the

respective general insurance company in consultation with the participating
Banks.
Termination of cover: The accident cover for the member shall terminate
on any of the following events and no benefit will be payable there under:
1) On attaining age 70 years (age nearest birthday).
2) Closure of account with the Bank or insufficiency of balance to keep the
insurance in force.
3) In case a member is covered through more than one account and
premium is received by the Insurance Company inadvertently, insurance
cover will be restricted to one bank account only and the premium paid for
duplicate insurance(s) shall be liable to be forfeited.
4) If the insurance cover is ceased due to any technical reasons such as
insufficient balance on due date or due to any administrative issues, the
same can be reinstated on receipt of full annual premium, subject to
conditions that may be laid down. During this period, the risk cover will be
suspended and reinstatement of risk cover will be at the sole discretion of
Insurance Company.
5) Participating banks will deduct the premium amount in the same month
when the auto debit option is given, preferably in May of every year, and
remit the amount due to the Insurance Company in that month itself.
Administration: The scheme, subject to the above, will be administered
as per the standard procedure stipulated by the Insurance Company. The
data flow process and data proforma will be provided separately.
It will be the responsibility of the participating bank to recover the
appropriate annual premium from the account holders within the prescribed
period through ‘auto-debit’ process.
Enrollment form / Auto-debit authorization in the prescribed proforma shall
be obtained and retained by the participating bank. In case of claim, the
Insurance Company may seek submission of the same. Insurance Company
reserves the right to call for these documents at any point of time.
The acknowledgement slip may be made into an acknowledgement slip-
cum-certificate of insurance. The experience of the scheme will be
monitored on yearly basis for re-calibration etc., as may be necessary.
Appropriation of Premium:
1) Insurance Premium payable to Insurance Company: Rs.12/- per annum
per member
2) Reimbursement of Expenses to BC/Micro/Corporate/Agent by insurer:
Rs.1/- per annum per member
3) Reimbursement of Administrative expenses to participating Bank by
insurer: Rs.1/- per annum per member
Date of commencement of the scheme is 1st June 2015. The Annual renewal
dates shall be each successive 1st of June in subsequent years.
The scheme is liable to be discontinued prior to commencement of a new
future renewal date if circumstances so require.
PRADHAN MANTRI JIVAN JYOTI BIMA YOJNA

PMJJBY was introduced by GOI to provide insurance cover to citizens of India.
Features of the scheme are as under:-
1) Applicant must be savings bank account holder of the branch. The

account holder will provide certificate of good health along with
enrolment form.

2) Age of the applicant must be between 18 to 50
3) Yearly premium is Rs.330/-. It will be deducted by auto debit method
only.
4) Rs. 2 lakh insurance cover is provided to the account holder who joins
the scheme.
5) Insurance cover is provided for the death due to any reason.
6) Insurance can be renewed up to the age of 55 provided account holder
must have PMJJBY policy at the age of 50.
7) If the renewal is not done every year then the scheme is lapsed. Account
holder can again join the scheme in future by making fresh application
to the branch along with certificate of good health.
8) No insurance claim will be entertained upto 45 days from the date of
enrolment.
9) Insurance premium Rs.330/- is appropriated as under:-
Rs.289/- per annum per member to insurance company
Rs.30/- per annum per member to BC/MICRO/CORPORATE agent Rs.11
per annum per member to bank as administrative expenses
10) In Bank of India, scheme is administered by SUD-Life.
REVISED RULES FOR PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA

(w.e.f. POLICY YEAR 2018-19)
1. DETAILS OF THE SCHEME:
PMJJBY is an Insurance Scheme offering life insurance cover for death due to
any reason. It is a one year cover, renewable from year to year. The scheme
is offered / administered through LIC and other Life Insurance companies
willing to offer the product on similar terms with necessary approvals and tie
ups with Banks for this purpose. Participating banks are free to engage any
such life insurance company for implementing the scheme for their subscribers.
2. Scope of coverage: All individual account holders of participating banks in the
age group of 18 to 50 years are entitled to join. In case of multiple bank
accounts held by an individual in one or different banks, the person is eligible
to join the scheme through one bank account only. Aadhar is the primary KYC
for the bank account.
3. Enrolment period: For the cover period 1st June 2018 to 31st May 2019,
subscribers are required to enrol and give their auto-debit consent by 31st May
2018. Those joining in subsequent months would be able to do so with payment
of premium as described below;
a) For Enrolment in June, July and August 2018 – Full Annual Premium of
Rs.330/- is payable.
b) For Enrolment in September, October, and November 2018 – pro rata
premium of Rs. 258/- is payable
c) For Enrolment in December 2018, January, and February 2019 – pro rata
premium of Rs. 172/- is payable.
d) For Enrolment in March, April and May 2019 – pro rata premium of Rs. 86/-
is payable.
Lien period of 45 days shall be applicable from the date of enrolment.
4. Enrolment Modality: The cover shall be for one year period stretching from
1st June to 31st May for which option to join / pay by auto-debit from the
designated individual bank account on the prescribed forms will be required to

be given by 31st May of every year. Delayed enrolment for prospective cover is
possible with payment of pro-rata premium as laid down in above para.
For subscribers enrolling for the first time on or after 1st June 2016, insurance
cover shall not be available for death (other than due to accident) occurring
during the first 45 days from the date of enrolment into the scheme (lien period)
and in case of death (other than due to accident) during lien period, no claim
would be admissible.
Individuals who exit the scheme at any point may re-join the scheme in future
years. The exclusion of insurance benefits during the lien period shall also apply
to subscribers who exit the scheme during or after the first year, and rejoin on
any date on or after 01st June 2016. In future years, new entrants into the
eligible category or currently eligible individuals who did not join earlier or
discontinued their subscription shall be able to join while the scheme is
continuing subject to the 45 days lien period described above.
5. Benefits: Rs.2 lakh is payable on member’s death due to any cause.
6. Premium: Rs.330/- per annum per member. The premium will be deducted
from the account holder’s bank account through ‘auto debit’ facility in one
instalment, as per the option given, on or before 31st May of each annual
coverage period under the scheme. Delayed enrolment for prospective cover
after 31st May will be possible with payment of pro-rata premium as laid down
in para 3 above. The premium would be reviewed based on annual claims
experience.
7. Eligibility Conditions:
Individual bank account holders of the participating banks aged between 18
years (completed) and 50 years (age nearer birthday) who give their consent
to join / enable auto-debit, as per the above modality, will be enrolled into the
scheme.
8. Master Policy Holder: Participating Banks are the Master policy holders. A
simple and subscriber friendly administration & claim settlement process has
been finalized by LIC / other insurance companies in consultation with the
participating bank.
9. Termination of assurance: The assurance on the life of the member shall

terminate on any of the following events and no benefit will become payable
there under:
1) On attaining age 55 years (age near birth day) subject to annual renewal
up to that date (entry, however, will not be possible beyond the age of 50
years).
2) Closure of account with the Bank or insufficiency of balance to keep the
insurance in force.
3) In case a member is covered under PMJJBY with LIC of India / other
company through more than one account and premium is received by LIC /
other company inadvertently, insurance cover will be restricted to Rs. 2 Lakh
and the premium paid for duplicate insurance(s) shall be liable to be forfeited.
4) If the insurance cover is ceased due to any technical reasons such as
insufficient balance on due date or due to any administrative issues, the same
can be reinstated on receipt of appropriate premium as mentioned in Para 3

above, subject however to the cover being treated as fresh and the 45 days
lien clause being applicable.
5) Participating Banks shall remit the premium to insurance companies in
case of regular enrolment on or before 30th of June every year and in other
cases in the same month when received.
10. Administration: The scheme, subject to the above, is administered by the

LIC P&GS Units / other insurance company setups. The data flow process and
data proforma has been informed separately.
Members may also give one-time mandate for auto-debit every year till the
scheme is in force.
It is the responsibility of the participating bank to recover the appropriate
premium in one instalment, as per the option, from the account holders on
or before the due date through ‘auto-debit’ process.
Enrolment form / Auto-debit authorization / Consent cum Declaration form in
the prescribed proforma shall be obtained and retained by the participating
bank. In case of claim, LIC / insurance company may seek submission of the
same. LIC / Insurance Company reserves the right to call for these
documents at any point of time.
The acknowledgement slip may be made into an acknowledgement slip-cum-
certificate of insurance.
The experience of the scheme will be monitored on yearly basis for re-
calibration etc., as may be necessary.
Appropriation of Full Annual Rs.258/- Rs.172/- Rs.86/- is
Premium: Appropriation Premium of collected in collected in the collected in
of Premium Where: Rs.330/- the 2nd 3rd quarter of the 4th
collected quarter of risk risk period quarter of
Period risk period
01 Insurance Rs.289/- Rs.225/- Rs.150/- Rs.75/-
Premium to LIC/
Insurance
Company
02 Reimbursement of Rs. 11/- Rs.10.50 Rs.7/- Rs.3.50
Expenses to
BC/Micro/Corporat
e/ Agent
03 Reimbursement of Rs.30/- Rs.22.50 Rs.15/- Rs.7.50
Administrative
Expenses to
participating Banks
Agricultural Finance
Our economy is basically an agricultural economy. Nearly 70% of our population
depend upon agriculture. In the 50s and 60s our country imported food products
and milk products. The successive five year plans embarked upon the green
revolution and white revolution for which modernisation and mechanisation of
agriculture and allied activities was a must and that needed finance. In this context
the major banks were nationalised and agricultural finance became one of the
major portions of directed credit. Specialised agricultural credit departments and
banks were opened for catering to this purpose.

Agricultural Finance:
FARM CREDIT
Loans to individual farmers such as Crop loan, SHGs, JLGs, Dairy,
Fishery, Animal Husbandry, Poultry, bee keeping, sericulture,
Horticulture etc. Term loan for purchase of agri. Implements,
equipment, irrigation, pre & post harvesting activities, transportation
of farm produce. Loan up to Rs.50 lakhs against pledge of warehouse
receipt, for a period not exceeding 12 months. Loan to distressed
farmers indebted to non-institutional lenders. Loan to farmers in
Kisan Credit Card Scheme. Loan to small and marginal farmers for
purchase of land for agriculture purpose. Loans to corporate farmers,
farmer producer organizations/ companies of individual farmers,
partnership firms and co-op. of farmers directly engaged in agri.
Activities etc.
AGRICULTURE INFRA STRUCTURE
Loan for construction of storage facilities including cold storage
units/cold storage chains irrespective of locations, Soil conservation
and watershed development, Tissue culture and biotechnology seed
production, production of bio-pesticides, bio-fertilizers,
vermicomposting. Aggregate sanction limit of 100 crs./borrower.
ANCILLIARY ACTIVITIES
Loan up to Rs.5 crs to co-op societies of farmers for disposing of
produce of members. Loan for setting up of Agro Clinic and Agro
Business centers. Loan for food and agro processing centers up to
Rs.100 crs/borrower. Loan to PACS, FSS, LAMPS. Outstanding
deposits under RIDF, eligible funds with NABARD
Selected Allied Activities under Agricultural Financing-

Dry-Land Farming –Dry land farming means raising of crops in an area where
the rainfall is less than 20" or 500mm. About 70 percent of the total cultivated
area in our country is dry land and they contribute only 42 percent of the total
food grains production in the country. In-spite of all the adverse features, these
areas offer wide scope to increase the food production if the following techniques
are adopted-
i) Soil and water conservation techniques.
ii) Use of drought resistance variety of crops.
iii) Crops which are of short duration and high yielding.
iv) Development of water-sheds etc.
Dairy Farming-Purpose:
• Establishment of Mini dairy unit (with 2 to 4 animals), Small dairy unit ( 6 to
10 animals) Commercial dairy unit ( More than 10 animals)
• Establishment of new medium/large dairy units or expansion of existing units
by experienced, trained/qualified entrepreneurs as a main occupation
• Collection, processing and distribution of milk. Manufacturing of milk products
and other related business.
• Establishment of breeding bull farms, semen banks, artificial insemination
centres, veterinary clinics as custom service units.
The following activities are eligible for finance under dairy schemes:

• Purchase of improved/cross breed milch cattle
• Purchase of breeding bulls in case of large schemes
• Construction of cattle shed.
The cattle which are in good health need to be selected. Animals should have low
maturity age, long lactation period (i.e. more number of milking days) and high
milk yielding per lactation period.
Other documents such as loan application forms, security aspects, margin money
requirements etc. are also examined. A field visit to the scheme area is undertaken
for conducting a techno-economic feasibility study for appraisal of the scheme.
In case of Cross bred cows the milk yield per day is about 12-15 litters, with length
of the lactation period being 280 to 310 days and dry days being 150-180 days.
Some of the important cross bred cows are Holstein Friesian, Jersey, Brown Swiss,
Swedish Red etc. In case of buffaloes, the milk yield per day are about 5-6 litres
with length of the lactation period being 270-300 days and dry days being 150-
180 days. Some of the important buffalo breeds are Mehsana, Murrah, Jafrabadi,
Surti and Nili-Ravi.
A small unit of 2 milch cattle is considered to be financially viable for a small

farmer with a regular milk yield if animals are initially purchased with an interval
of 6 months. The animals should be purchased after 30 days of second calving.
The net income from the sale of milk can pay off the loan within 3 lactations.
Scheme can be covered under PMMY upto limit Rs.10.00 lakhs.
Working Capital Facility For Animal Husbandry And Fishery Borrowers

Br.Cr.112/169 dated 11/03/2019
Union Govt. through its budget for 2018-19 has decided to extend KCC facility to
animal husbandry farmers for their working capital requirement. In pursuance of
that RBI has decided to extend KCC facility for activities related to animal
husbandry and fisheries.
Eligibility:
Farmer, dairy farmer either individual or joint borrower, JLG, SHG, tenant farmers
having own/ leased/ rented shed.
Scale of Finance:
Working capital components in scale of finance include recurring cost towards
feeding, veterinary aid, labour, water & electricity charges.
Maximum period for assessment of working capital is one production cycle.
Poultry Farming-The two major commercial activities taken up by farmers under

poultry farming are broiler farming and layer farming. In broiler operation, one
day old chicks are grown for a period up to 6-7 weeks and thereafter are sold for
meat purposes. The live weight of broilers at 6-7 weeks is about 1.8 kg. A farmer
can take up 5-6 batches of broilers in a year. In layer operation, farmers generally
purchase one day old chicks and rear it, till the birds give eggs at economical

rates. The laying period commences around 21st week and is normally considered
economical upto 72 (20 + 52) weeks. Today’s genetically superior poultry birds
lay about 270 to 300 eggs in a year, which is about 9 to 10 times its own weight.
Bank has come out with comprehensive ready reference guidelines on Poultry
Farming to facilitate branches to entertain this credit business:
• Small Poultry Units up to 10,000 birds should be discouraged for
financing except, under Govt. sponsored schemes. Even under Govt.
sponsored schemes, for units with less than 10,000 birds, efforts
should be made for adoption of cluster approach.
• All New Projects with 10,000 Birds & above should incorporate/ adhere
to various stipulations laid down in the revised poultry policy
guidelines.
Fishing & Aquaculture-

The main stages involved in taking up an aquaculture enterprise are as follows:
a) Selection of suitable site.
b) Design and construction of farm.
c) Pond preparation.
d) Selective stocking of fishes.
e) Supplementary feeding and water quality management.
f) Harvesting and marketing.
At present all aqua culture farms should register and obtain permission from
Aqua Culture Authorities of India to carry out their farm activities within Coastal
Regulation Zone (CRZ), adopting only traditional & improved traditional systems
of shrimp farming.
Sericulture - Sericulture, the technique of silk production is an agroindustry,

playing an imminent role in the rural economy of India. Sericulture is a highly
labour-intensive activity. Silk production consists of 4 distinct phases of activities,
viz.,
i) Cultivation of host plant.
ii) Rearing of silk worms up to cocoon stage.
iii) Reeling of cocoons into continuous filaments called raw-silk &
iv) Silk processing and weaving.
Item number i) and ii) are considered under direct finance to Agriculture and item
iii) and iv) are treated as SME finance. Four to five cocoon crops can be taken in
a year under tropical conditions, which ensures periodic income at short intervals.
The market for the end product is readily available and the prices are attractive.
It has also got good export potential. Crop loan can be given for Tuti plantation
under KCC and Term Loan can be given for Shed House for rearing of Silk Worms
upto Cocoon stage. This scheme can be covered under PMMY upto Rs. 10.00 lakhs.
Vermi Culture (Vermi Composting)-Vermi stands for earthworms. Vermi

compost is prepared by subjecting organic matter to decomposition with help of
earth worms. From vermi culture, we get well decomposed worm casts which can
be used as manure for crops, etc. In the process, earth worms also get multiplied.
The excess worms can be converted into vermi protein (poultry feed, fish feed) or

vermi wash (spray on crops). Vermi compost technology has promising potential
to meet manure requirement and in converting agro wastes/city garbage into
valuable agricultural input.
Farm Mechanisation-It is not the use of tractor alone but also includes use of
other improved machinery viz., threshers, combine harvester, sprayers, dusters,
power tillers, post-harvest processing machines etc. for improving production,
productivity and enables the farmer to carry out the particular operation in lesser
time and with lesser cost. Power driven machinery for carrying out various
agricultural operations such as ploughing, harvesting, land levelling etc. along with
transportation with horsepower more than 12 H.P. is known as tractor and
machinery less than 12 H.P. is known as power tiller. Cultivator should have
minimum 8 acres of perennially irrigated land to make utilisation of tractor viable.
Zonal Managers can sanction farmers with 5 acres of land as a deviation based on
viability of the proposition. Bank also finances for second hand tractor or repairs
of machinery financed by the bank earlier, with some stipulations. The minimum
acreage norms for financing tractor/power tiller can be relaxed at Zonal Office
level on the basis of deposits pledged, custom hiring, value of the account, etc.
We also finance Agro service centres run by Agri. Graduates / technically qualified
persons besides State Govt. undertakings and corporations engaged in financing
Agricultural activities.
The Farm Mechanisation project is based on Techno-financial viability of the
project Viz. suitability of the machinery/implements to the soil topography,
climate, crops, scope for custom hire, availability of fuel, service centres. The
economic viability includes capital cost and working expenses vis-à-vis expected
incremental income/fair return on their investments. The maximum margin money
is 25% depending on the activity taken by the farmer. Since NABARD has
discontinued the system of sending approved list of Tractors we have to finance
those brands of Tractors which has been given favourable Commercial Test
Reports issued by the Central Farm Machinery Training & Testing Institute, Budni
(M.P). We have also made Tie-up arrangements with leading Tractor
manufacturing companies for financing as per farmer’s choice. Head Office (Rural)
sends the list from time to time. The repayment period varies from 3-9 years
depending on the activity selected by the borrower. The small and marginal
farmers should be encouraged to purchase Power Tillers on the basis of their land
holding instead of tractor to avoid heavy loan burden/less incremental income.
Drip, Sprinkler and Lift Irrigation System-The design, the equipment and
technique of replenishing the Soil Water deficit by applying irrigation water is
referred to as “Irrigation System”. Some of the irrigation systems are surface
irrigation system, drip irrigation system, sprinkler irrigation system and subsoil
irrigation system.
Drip Irrigation-It involves slow application of water, drop by drop, as the name
signifies, to the root zone of crop. In this method, water is used very economically
since losses due to deep percolation are reduced to a minimum. In most of the
States subsidy is available for this investment.
Sprinkler Irrigation system-Is a system in which water is applied to the surface

of any crop or soil in the form of a thin spray from above. This method can be
adopted in almost all crops and is very popular in case of cash crops and some

orchard crops. This system is specifically suited to uneven topography where
levelling is not practicable and in areas where water and labour are scarce.
Lift Irrigation system-In this system water is lifted from low level water
reservoirs such as wells, lake and river. Horizontal and turbine pumps are used
for raising water for irrigation. Pipe lines are laid for carrying water from river
beds to distant area which is located on the high side of the river. Permission
from the appropriate authority is required before financing under this scheme.
Solar Pump-This is the present trend in energisation of the pumps. Here solar
photovoltaic cells are installed and connected to the electric pumps, its green
solutions, having very little expense for maintenance. Ministry of NRES gives
subsidy for installation of these pumps. We should encourage such investments
as solar power is abundant in India.
Credit Cards under Agricultural Financials-

The various innovative card products (Agricultural Advances) that are
introduced by Bank in the recent past are:
1. Kisan Credit Card (KCC);
2. Star Bhumiheen Kisan Card (Star BKC)
3. BOI Satabadi Krishi Vikas Card
4. Kisan Samadhan Card;
Kisan Credit Card (KCC): (Br.Cr.112/55 dated 17/07/2018)

A RUPAY credit card is issued for availing the limit. Passbook will contain
the name, address, particulars of land holding, borrowing limit/sub limits, validity
period etc.
Credit Limit: Entire production credit requirements of the farmer for the
full year, including the credit requirements for the ancillary activities related
to crop production such as maintenance of agricultural
machinery/implements, electricity charges etc., are taken into
consideration and 10% of limit towards escalation in scale of finance for
every year (2nd, 3rd, 4th, 5th year) is added, thus total requirement of
credit for five years is calculated, accordingly documents are also obtained
for full amount of five years..
The KCCs has interest subvention. As per the recent norms of Govt. of
India, interest subvention is not available to maintenance portion of KCC
limit. This is has to kept in mind while arriving at KCC limit.
Type of Facility
• Revolving cash credit: - No restrictions on number of drawls and
repayment within the sanctioned limit.
• Entire repayment once in a year, exception crops like sugarcane
and banana crops in 18 to 24 months.
Margin: Up to Rs.1,60,000/-* : Nil (*Amount of loan net of subsidy)
Above Rs. 1,60,000/- : 15-25%
Security:
D. P. Note & - Up to Rs.1,60,000/-*: Hypothecation of crops /movable
assets (*Amount of loan net of subsidy)

Above Rs.1,60,000/- : Hypothecation of crops/ movable asset and
Mortgage of Land or Collateral security of adequate worth.
Interest Rate – As notified by the Bank from time to time.
Insurance
i) Crop insurance for the notified crops in the notified area under PMFBY. ii)
Personal Accident Insurance Scheme for the card holder sum assured –
Death/permanent disability : Rs.50,000/-
Star Bhumiheen Kissan Card (SBKC):

Documents Required
i) Documents related to house of the applicant,
ii) Ration Card, and
iii) Voters’ list/Identity card.
iv) Aadhaar card
Purpose
Purchase of improved seeds, manures and fertilisers, plant protection
materials, payment of hire charges for tractors, irrigation charges,
electricity charges etc. and also meeting part of consumption needs.
Limit
i) Based on land area taken on tenancy for share cropping or on
oral lease and scale of finance, maximum Rs50000/-
ii) Additional Rs.5000/- for consumption needs,
iii) Upon satisfactory conduct of the account for three years, the
limit may be enhanced, if requested by the card holder.
Issue of Cards-The farmers under the scheme will be issued a credit card-
cum-pass-book incorporating the name, address, photograph, borrowing
limit/sub-limits, validity period, etc. to facilitate recording of the
transactions on an on-going basis.
Sanctioning Authority: As per delegation of powers.
Type of Facility
• Revolving cash credit – Annual Review. The farmer should be allowed
for any number of drawals and repayment within the limit.
• The aggregate credits into the account during the 12 month period
should at least be equal to the maximum outstanding in the account,
• No drawal in the account should remain outstanding for more than 12
months in case of normal crops and 18 months in case of sugarcane and
banana crops.
• In case of re-schedulement of the period of repayment on account of
natural calamities affecting the farmer, the period for reckoning the
status of operations as satisfactory or otherwise would get extended
together with the extended amount of limit. When the proposed
extension is beyond one crop season, the aggregate of debits for which
extension is granted should be transferred to a separate term loan
account with stipulation for repayment in instalments as per existing
guidelines.

Margin: Nil
Security: Hypothecation of standing crop
Repayment- The sale proceeds should be routed through the cash
credit account. Market linkages, wherever possible, should be ensured.
Other Operational Guidelines

• If a farmer has obtained short term finance from other bank/co-
operative society, such farmer should not be issued Star BKC.
• Wherever crop insurance is available, coverage needs to be obtained.
• In case of default, the special facilities under the scheme should be
immediately withdrawn and the limit should be treated as normal crop
finance which would broadly mean:-
o Withdrawal of cheque book facility (if issued)
o Future disbursement on regularisation of account against
bills/receipts.
o Withdrawal of card (those who have been issued plastic cards)
Application of Prudential Norms-The Star BKC facility being in the
nature of cash credit accommodation for agricultural purposes, the
prudential norms as applicable to such facilities would apply to the BKC
accounts. In other words, the credit card account would be deemed to be
a Non-Performing Asset (NPA) if it remains out of order for a period of two
crop seasons/one crop season (as the case may be, depending on the
duration of the crops) after the repayment due date.
Composite Cash Credit (CCC) Scheme-With a view to simplify

procedures for the benefit of farmers and also reduce paper work as well as
number of Borrowal accounts at the Branch level, Bank had introduced a
system of Annual Composite Cash Credit (CCC) Scheme. The salient
features of the “CCC” Scheme are:
Facility: Demand Composite Cash Credit - Annual Review.

Eligibility:
• Individual farmers, registered partnership firms, companies, registered
farming, co-operative societies owning agricultural land, registered
tenants / share croppers with recorded rights.
• Only farmers engaged in production of crops produce suitable for storage
in the cold storage / warehouse godown / regulated market yard are
eligible for finance against storage receipt.
• Farmers who have availed of crop loans from the bank for raising the
concerned crop in that season are eligible for finance under produce
marketing loan scheme.
Quantum of finance / margin
• For production / short term purposes: Loan amount will depend upon
the type of crop, area under cultivation and scale of finance.
• Short Term Working Capital.
• For ancillary activities.
• For minor investment of medium term nature.

• Short Term Credit for consumption / domestic needs to the extent of
maximum 25 percent of gross estimated income of the farmer.
• Finance against storage receipts / produce marketing may be considered
maximum up to 50 percent of the price of the produce prevailing at the
time of storage/sanction of loan and the maximum loan limit should not
exceed Rs.10.00 lakh per farmer for a maximum period of 12 months.
Rate of Interest:
• On Debit Balance: As per RBI Guidelines as applicable to crop loans.
• On Credit Balance: Rate of Interest payable will be as per SB interest
rate & to follow SB Rules except opening a separate account.
Security: There will be common documentation, though the sub-limits are
maintained as separate accounts for the convenience of monitoring.
Security is as applicable to Agricultural Advances. In case the value of land
mortgaged is adequate, no other security should be obtained. For finance
against government Warehouse receipts, mortgage may be waived. Waiver
of mortgage of land in deserving cases may be considered as per security
norms.
–Up to Rs.1,60,000 : Hyp. of crops/other movable assets
–Above Rs.1,60,000 : Hyp. and mortgage of land or collateral
securities.
Margin:
For loans up to Rs. 1,60,000/- Nil
For loans above Rs. 1,60000/- 15 – 25%
Disbursement:
• Up to Rs. 25,000/- may be disbursed in cash to the borrower.
• Above Rs.25,000/- may be disbursed through input suppliers or
against bills / receipts or may be waived at the discretion of the
Manager / Sanctioning Authority.
Repayment:
• Seasonal sub-limits should be adjusted after harvesting/
marketing of crops.
• While disbursing finance against storage receipts/produce
marketing, seasonal sub-limits should be adjusted and only
balance amount may be disbursed.
The methodology of arriving at the composite cash credit limit is by
assessing the “total family income based on crop production and other
allied / non- farm activities.” Fixing reasonable credit limit, to take care
of:
(i) Short term production requirements.

(ii) Minor investment of medium term nature &
(iii) Domestic consumption needs.
While (i) & (ii) can be calculated easily, the domestic consumption needs
can be worked out as a thumb rate on the basis of 15% to 20% of total
gross family income of the farmer. Improved supervision & closer
monitoring are inherent components of the successful implementation of
the scheme.

ADVANCES AGAINST THE SECURITY OF GOLD ORNAMENTS /GOLD
COINS AND OTHER JEWELLERY – STAR GOLD(Br.Cr.111/127
dated17/11/2017)
Strategic Necessity of Gold Loan Portfolio under Priority Sector
1) Indian Society considers gold as a symbol of prosperity.
Traditionally, gold has been perceived as safest asset during the
periods of financial and economic stress.
2) Demand for gold is mainly driven by jewellery demand rather than
by investment or industrial demand.
3) It can be instantly liquidated either by disposing off or by availing
loan against the security of gold in emergent circumstances.
4) By extending zero risk weighted advances, we shall conserve the
capital by extending gold loan. Gold loans are given for agriculture
purpose, business purpose or consumption purpose. In the first two
cases, the loans will fall in the Basel “Regulatory Retail” Asset class
(RW 75%) and in the third case, “Consumer Credit” (RW 125%).
Notwithstanding above, because of the sufficient margin (130%)
available in these accounts the Net exposure is always NIL and
consequently RWA is zero. Thus there is no capital charge on these
loans.
5) Branches should ensure that at any point of time LTV should not be
more than prescribed by RBI.
ELIGIBILITY:
Any individual owning gold ornaments/coins, either singly or jointly, who
maintains KYC compliant SB/CD account with the branch.
1) Gold loan may be sanctioned to bank’s staff including staff posted at
Zonal Office and Head Office as well as their spouse, by branch
manager without taking prior sanction of Zonal office.
2) When branch is giving loan against bank’s gold coin, then branch
should ensure that weight of gold coin should not exceed 50gms per
customer.
3) For advance against gold belonging to the wife as ‘stridhan’, then
wife should also be made as co-borrower. Waiver of this stipulation
should be considered by Zonal Manager level.
4) No advance should be against the ornaments with names inscribed
of the parties other than borrowers.
5) Borrowers under Debt Swap (as per Br. Circ107/14 dated
16.04.2013) can also be covered up to Rs.25,000/- only.
6) Distressed farmers to repay non-institutional lenders, tenant
cultivators and lessee farmers are also eligible.
7) Defaulters from any bank are not eligible.
PURPOSE:
1) Agriculture: for meeting crop production expenses like crop loan
(eligible for interest subvention if gold loan sanctioned as KCC limit),
farm house, rural go down, cold storage/chain, allied activities like
dairy, goatery, poultry, fisheries etc. Loan will be sanctioned as per
declaration of borrow in annexure IV & IV(a).
2) Other Priority Sector: Gold loan can be sanctioned for all eligible
activities under Other Priority Sector. Typical requirements under
OPS is working capital cycle for business unit, pety trade, purchase
of raw material or equipment, furnishing business premises, furniture

& fixture, repairs of house. Loan amount will be sanctioned based
on the declaration of the applicant.
3) Non-priority/ consumption loan: To meet unforeseen expenses,
contingencies, expenses for medical treatment, for marriage and
other ceremonies, expenses for education/ business not under
priority sector. Loan amount will be sanctioned based on the
declaration of the applicant.
4) Gold loan will not be covered under CGTMSE.
Turn Around Time:

For new gold loan or redemption of loan, TAT shouldn’t be more than
15-25 minutes.
ASSESSMENT OF LOAN AMOUNT:
Assessment of loan should be done by any of the following methods:-
1) Loan amount requested by applicant/assessed amount on declaration
OR
2) Loan to Value (LTV) as under
i) 75% of appraised value of gold ornaments of 22 carat fitness
for short term loan not exceeding 12 months.
ii) 70% of appraised value of gold ornaments of 22 carat fitness
for term loan above one year but not exceeding 2 years.
iii) 60% of appraised value of gold ornaments of 22 carat fitness
for term loan above two year but not exceeding 3 years. OR
3) Loan amount assessed based on scale of finance for crop production/
actual amount of credit requirement for other than crop production,
as the case may be.
WHICHEVER IS LOWER
 Specially minted gold coins sold by any bank (24 carat) shall
be treated as gold ornament for the Purpose of assessment
of gold loan.
 Loan amount to be assessed based on the price of gold
uploaded on the bank’s website.
VALUATION OF GOLD ORNAMENTS AND COINS:
o For the purpose of valuation gold jewelry should be of 22-24 carats
as per certificate issued by the
o Empaneled Gold Smith.
o Bank will not finance against the jewelry of 18 carats.
o In CBS system, gold rate of the bank can be viewed through menu
“GOLDLNRT”
o SECOND APPRAISAL OF GOLD JEWELLERY :- Branch where gold loan
portfolio is above Rs.20 crores,
o Then for all loan applications above Rs. 3 lakhs will require second
appraisal as per given revaluation.
o TYPE OF FACILITY : Demand Loan/ Term Loan/Overdraft
facility/Cash-Credit
QUANTUM OF LOAN:
A) For Agriculture / MSME / Retail and other priority sector activities
Minimum Loan: no minimum ceiling
Maximum Loan: Rs.15 lakhs (can be raised up to Rs.25 lakhs in
specific zones as designated by GM, NBG up on suitable
assessment.)

B) For other purposes:
Minimum Loan: no minimum ceiling
Maximum Loan: Rs.10 lakhs
C) Loan below Rs.1 lakh:
These small loans are generally given to marginal & small farmers,
small scale tenant agriculturist, petty traders-cum-farmers,
farmers doing allied activities, farmers for maintaining farm lands,
houses, storages, food & agro processing units etc. These loans
are given on the basis of declaration duly signed by the borrower.
Note:- Branch should obtain copies of land records, revenue
receipts, documents and cultivation details for loan over Rs.1 lakh.
D) Partial release/top up of gold loan:
Depending upon value of security, in case borrower repays part
amount of gold loan, branch may top-up or part release,
considering a new loan along with fresh application and fresh
valuation certificate to be obtained for top-up or new loan.
RATE OF INTEREST:
As per Bank’s guidelines and sector wise applicable ROI.
DOCUMENTATION:
1) For limits up to Rs.1 lakh
a) Application-cum-Valuation-cum-sanction letter
b) D.P. note
c) AG-35 unstamped
d) Undertaking-cum-declaration for gold loan up to Rs.1 lakh for
agriculture purpose only.
2) For limit above Rs.1 lakh
a) Application-cum-Valuation-cum-sanction letter
b) D.P. note
c) AG-35 stamped
d) Undertaking-cum-declaration for gold loan above Rs.1 lakh for
agriculture purpose only. Copy of land document, latest land
revenue receipt, cultivation details should be obtained.
SECURITY: Pledge of gold ornaments/ jewellery/ gold coin
SERVICE CHARGES:
A) No documentation, inspection, prepayment charges
B) Processing charges
a) Agriculture Gold loan
i) Up to Rs.1 lakh – NIL
ii) Over Rs.1 lakh to Rs.5 lakh: Rs.150/- per lakh
Max. Rs.300/-
iii) Over Rs.5 lakh : Rs. 150 per lakh
b) MSME/OPS loans-
i) Loan upto Rs.1 lakh : Nil
ii) Over Rs.1 lakh : Rs.150/- per lakh

Sanctioning Authority:-
Scale- I Rs. 4 lakhs
Scale II Rs. 10 lakhs
Scale III & Above Full Powers.
Valuation charges:- Rs.5/- per Rs.1000/- of loan amount Min. Rs.100/-

Max.Rs.500/- per valuation.
PRUDENTIAL NORMS
Loans granted for Agriculture purpose.
The accounts will become NPA if installment of principal or interest thereon
remains overdue for 2 crop seasons for short term crops and one crop
season for long term crops, provided facility financed for:-
 Raising crops
 Production & Investment of agriculture.
 Purchase of land for Agr. purpose by SF/MF.
 Distressed farmers to repay debt to non-institutional
lenders.
 Taking up pre/post-harvest activities.
Loans granted for other than Agriculture:
 Overdue for > 90 days - Become Sub Standard asset and if

prescribed margin by RBI i.e. 25% is not maintained as per the
card rate applicable from time to time then the a/c become NPA
before the due date. (Ref.Br.Cir.No: 107/187 dt. 11.01.2014)
Over Draft/Cash Credit:
 NPA if o/s remains continuously in excess of SL or no credits

continuously for more than 90 days or credits are not enough to
cover the interest debited for the same period.
Other Aspects in Agricultural Financing

Scale of Finance-Short Term Credit is granted for meeting the current
expenditure in connection with raising of crops and is, therefore, known as
Crop Loan. An essential feature of crop loan system is that a cultivator’s
eligibility for a loan and the size of the loan are determined not with
reference to the value of land or any other tangible security, but on the
basis of the size of the land holding that he cultivates and the cost of
cultivation of crops which the farmer proposes to grow.
Category of borrowers Margin

i) Up to Rs.1,60,000/-All borrowers Nil
ii) Over Rs.1,60,000/- All borrowers 15% to 25%
Notes:
• Short Term Loans include Crop Loans/Working Capital Loans for allied
activities.

• Margin in case of crop finance need not be in cash. The cost of labour of
the farmer and his family and the cost of their inputs not financed by
the Bank can constitute margin.
• The quantum of crop loans should be worked out on the basis of scale
of finance approved by District Level Technical Committee for each crop.
• Where subsidy is available, same should be treated as margin and no
further margin money should be insisted in the above-mentioned margin
norms except as provided in respective subsidy oriental schemes like
cold storage/rural godowns/hi-tech agri. products where subsidy is back
ended. Hence, normal margin needs to be maintained in such schemes
except employment oriented/Government sponsored schemes like
PMRY, SGSY, etc.
Security:
Type of Credit Loan Amount Security to be obtained
A. Crop Loans
a) Up to Rs. 1,60,000/- - i) D. P. Note
ii) Hypothecation of Crops/ Stocks
b) Over Rs. 1,60,000/- i) Hypothecation of crops/stocks and
ii) Mortgage of land OR Declaration as
per State Ag. credit Act OR
iii)Collateral Security of Adequate worth.
B. Terms Loans
i) Where movable assets are created
a) Up to Rs. 1,60,000/-
i) Hypothecation of assets created out of bank loan.
b) Over Rs. 1,60,000/-
i) Hypothecation of assets created out of bank loan and
ii) Mortgage of land OR Declaration as per Agricultural
Credit Act
OR
iii) Collateral Security of adequate worth.
ii) Where movable assets are not created

a) Up to Rs. 1,60,000/- i) Term Loan Agreement
b) Over Rs. 1,60,000/- i) Term Loan Agreement and
ii) Mortgage of land
OR
Declaration as per State Ag. credit Act
OR
iii) Collateral security of adequate worth.

Notes:
Zonal Managers may permit waiver of this security only in deserving cases,
provided suitable third party guarantee/s of adequate worth could be
obtained. As the third party guarantee in lieu of mortgage/charge on
immovable property or collateral security may be taken for loans above Rs.
160,000/-, Branches/approving authority should carefully examine and be
satisfied with the antecedents and acceptability of the guarantors before
accepting their guarantees. Normally, care should be taken to avoid
guarantor/s who is/are close relative/s of borrower/s.
• In case of tractor/power tiller advances, relaxation in respect of eligibility
criteria on minimum land holding/mortgage of land/immovable
properties may be permitted on merits by the Zonal Manager and above
authorities, as per prevailing practices.
• In all other cases of Agricultural Advances not specified herein, i.e.
‘where movable assets are not created’, Zonal Manager may permit the
waiver of Mortgage of immovable properties / land depending upon the
genuineness / merits of the borrower/s. This relaxation should be used
judiciously and in exceptional cases.”
• In states where legislation on the lines of Talwar Committee
recommendations has come into force, the branches may obtain the
declaration as per State Agriculture Credit Act in lieu of mortgage as
follows:
(i) In states where declaration and mortgage attract stamp duty at
same rate, mortgage of immovable property should be insisted
upon. However, if declaration attracts stamp duty at lower rate than
that of legal/ equitable mortgage, creation of charge by declaration
may be resorted to.
(ii) If stamp duty is exempted on declaration of and not on mortgage,
declaration for creating charge may be obtained upto exemption
limit, if any, prescribed under respective Act.
• In states where Agriculture Credit Act has not come into force, legal or
equitable mortgage must be obtained, wherever mortgage of land is
stipulated.
• Security norms for agricultural advances granted under centrally
sponsored schemes will be governed by those stipulated for such
schemes.
• For advances over Rs.160,000/- where movable assets are not created,
it is desirable to obtain mortgage of land as a principal security even
though it is not explicitly prescribed.
• In case of indirect finance to agriculture, margin and security norms as
applicable to commercial advances, are to be followed.
Non-encumbrance certificate should not be insisted upon where the land is
not taken as security,
However, where the land is stipulated as security, non-encumbrance
certificate/ search should be taken as follows:
(i) For Direct & Indirect Agricultural Advances with Limits upto Rs.100
lakhs (w.e.f. 19.1.2000) the search period stipulated is 13 years.
(ii) For Limits over Rs.100 lakhs the stipulated search period is 30
years.

The Branch Lawyer’s report on title and certificate that the borrower’s title
to the land is clear, marketable and free from encumbrances is also
essential. Where assets are created out of bank loan, security for such loans
up to Rs. 160,000/-, should be only the assets created out of the loan.
Taking of gold articles/ jewellery or any other property as collateral security
or third party guarantee for such agricultural loans is not necessary and
should not be insisted upon as a pre-condition for grant of such loan. The
extracts/ certificates which are essentially required to be produced along
with the application forms are: Extracts of Record of Rights & No Dues
Certificate.
PRADHAN MANTRI FASAL BIMA YOJNA

PMFBY will provide a comprehensive insurance cover against failure of the
crop thus helping in mitigating risk, stabilising the income of the farmers
and encourage them for adoption of innovative practices.
The scheme is compulsory for loanee farmer obtaining Crop Loan /KCC
account for notified crops. However, voluntary for Other/non loanee farmers
who have insurable interest in the insured crop(s).
The Maximum Premium payable by the farmers will be 2% for all Kharif
Food & Oilseeds crops, 1.5% for Rabi Food & Oilseeds crops and 5% for
Annual Commercial/ Horticultural Crops.
The difference between premium and the rate of Insurance charges payable
by farmers shall be shared equally by the Centre and State.
The seasonality discipline shall be same for loanee and non-loanee farmers.
The scheme will be implemented by AIC and other empanelled private
general insurance companies. Selection of Implementing Agency (IA) will
be done by the concerned State Government through bidding.
The existing State Level Co-ordination Committee on Crop Insurance
(SLCCCI), Sub-Committee to SLCCCI, District Level Monitoring Committee
(DLMC) shall be responsible for proper management of the Scheme.
The Scheme shall be implemented on an 'Area Approach basis'. The unit of
insurance shall be Village, village Panchayat level for major crops and for
other crops it may be a unit of size above the level of Village, village
Panchayat.
The Loss assessment for crop losses due to non-preventable natural risks
will be on Area approach. In case of majority of insured crops of a notified
area are prevented from sowing/ planting the insured crops due to adverse
weather conditions that will be eligible for indemnity claims up to maximum
of 25% of the sum-insured.
However losses due to localised perils (Hailstorm, landslide & inundation)
and Post-Harvest losses due to specified perils, (Cyclone/Cyclonic rain &
Unseasonal rains) shall be assessed at the affected insured field of the
individual insured farmer. Three levels of Indemnity, viz., 70%, 80% and
90% corresponding to crop Risk in the areas shall be available for all crops.
The Threshold Yield (TY) shall be the benchmark yield level at which

Insurance protection shall be given to all the insured farmers in an
Insurance Unit Threshold of the notified crop will be moving average of yield
of last seven years excluding yield upto two notified calamity years
multiplied by Indemnity level.
In case of smaller States, the whole State shall be assigned to one
Insurance Agency (IA), 2-3 for comparatively big States. Selection of IA
may be made for at least 3 years.
SMALL FARMERS AGRO-BUSINESS CONSORTIUM (SFAC)
It is a Central Sector Scheme named as :-
EQUITY GRANT AND CREDIT GUARANTEE FUND SCHEME FOR FARMER
PRODUCER COMPANIES (FPCs)
o Farmer Producer Companies (FPC) which are registered after 1st
January 2014 are eligible for the scheme.
o SFAC to provide equity grant to FPCs equivalent to the amount of
shareholders equity, max Rs.15 lakhs/FPC
o Credit guarantee fund operated by SFAC to provide 85% insurance
cover to all FPC loans up to sanction limit Rs.100 lakhs.
o Loan sanctioned as per the scheme is to be classified under
agriculture infrastructure.
1) Eligibility: Farmer Producer Company should be registered under
Indian Companies Act 1956, Section- IX A and incorporated with
Registrar of Companies (ROC). The number of shareholders
should be minimum 500.
2) 33% of shareholders should be small, marginal and landless

tenant farmers.
3) Maximum shareholding by any member other than institutional

member should not be more than 5% of total equity of the FPC.
4) FPC should have elected/nominated Board with a minimum 5

members and should have adequate representation of farmers
and minimum 1 woman member.
o FPC should have duly elected Management Board. FPC should have a
business plan and budget for 18 months. Bank/ Eligible Lending
Institution (ELI) has extended/ sanctioned within 6 months of the
date of application for the Guarantee or / in principle agree in writing
has expressed willingness to sanction Term Loan/ Working capital/
Composite Credit Facility without any collateral security or third party
guarantee including personal guarantee of board members. Bank
shall consider all activities related to direct/ indirect agriculture
undertaken by the FPCs.
o Credit facilities (Fund based and /or non-fund based) already
sanctioned / extended within six months from the date of application
for Guarantee cover or intended to be extended singly or jointly by
one or more than one ELI, to a single FPC borrower by way of
TL/Working Capital/Composite credit facilities without any collateral
security and or third party guarantees.

o Bank can extend credit limit up to Rs.100 lakhs without any
collateral security and/or third party guarantees.
Security:
Under the scheme Bank has to extend credit facility to FPC without any
collateral security and / or third party guarantee up to limit of Rs.1 crore.
However primary security like hypothecation, pledge, mortgage,
assignment etc. should be obtained as extant norms of the Bank.
Credit Guarantee Cover:
It is available to FPC borrower for maximum 2 times in the span of 5 years.

Maximum guarantee cover available is 85% of the eligible sanctioned credit
facility or Rs.85 lakhs, whichever is lower. In case of default, claim shall be
settled up to 85% of the amount in default subjected to max. cover of the
scheme.
Guarantee Fee:
0.85% of the credit facility sanctioned subjected to max. Rs.85000/-.
Annual Service Fee;
Annual service fee of 0.25% p.a. shall be charged to keep the guarantee of
SFAC live. ELI or Bank shall bear the expenses of annual service fee, initially
for 2 years in the new borrowal accounts. Guarantee fee and annual service
fee once paid to SFAC is non-refundable except where guarantee cover is
not approved.
Invocation of Guarantee:
Condition one: If SFAC and Bank in their joint or independent assessment

are convinced that the FPC has suffered losses, which are genuine such as
crop or asset losses by the members and FPC is not in a position to repay
dues in any circumstances including restructuring/ rephasing/ rescheduling
the loan.
Condition two : Bank should have initiated proceedings of recovery before
invocation of guarantee.
Claim Settlement:
1) Bank should submit claim within one year from the date of NPA or as
specified by the SFAC from time to time.
2) SFAC shall honour 75% of the guaranteed amount in default,

subjected to a max. 75 % of the guaranteed cap amount, on
submission of claim by the Bank where appropriate action for
recovery is initiated.
3) Balance 25% of default shall be paid on conclusion of recovery

proceedings by the bank
4) SFAC shall pay claim within 90 days if claim is in order and complete
in all respect.

Star Agriculture Infrastructure & Marketing Scheme. (AIMS)
The scheme is approved for implementation from 22-10-2018 to 31-
03-2020. The erstwhile Gramin Bhandaran Yojana and scheme for
Development/ strengthening of AMI are subsumed into AIMS.
Aim of the scheme is to promote innovative and latest technologies
in post-harvest and agriculture marketing infrastructure. To benefit the
farmers individually and collectively through FPOs from farm level
processing and marketing of processed produce. To promote creation of
scientific storage capacity for storing of farm produce. To incentivize
developing and upgrading of Gramin Hat. To promote pledge financing
through electronic warehouse receipt system.
Star AIMS will cover 1) processing infrastructure, ex:- mini oil
expeller, mini dal mill, 2) Storage infrastructure, ex;- cold storage,
godown(50-10000mt), deep freezer, zero energy freezer, pack house,
ripening chamber 3) Development of farmers consumer market, 4) Linkage
to marketing reforms.
Scheme doesn’t include renovation of storage infrastructure.
Eligible beneficiaries:
a) For creation of storage infrastructure (50-5000mt) and non-storage

infrastructure:-
Individual, group of farmers, FPOs, FPCs,
partnership/proprietorship firms, companies, NGOs, SHGs,
cooperative marketing federations, Panchayats, APMCs, State
Warehousing Corporations, State Civil Supplies Corporations
etc.
b) For development/upgradation of farmer-consumer market and Rural
Hats/ Rural Primary Markets(RPMs):
State Govt. agencies nominated by State Govt. for Rural Hat
managed by Panchayat, APMCs, FPOs, FPCs, farmers,
individuals, trustees etc.
Sub-scheme AMI lays special emphasis on developing and
upgrading the Gramin Hats as GrAMs through strengthening
of infrastructure. These GrAMs may function as farmer
consumer market and collection point with linkages to
secondary market with participation of FPOs and other eligible
promoters.
Promoters contribution and term loan:-

Minimum promoters contribution should be 20% of the project cost.
If it is less than 20%, then Actual Total Financial Outlay (TFO) of the project
shall be restricted to 5 times of the promoters contribution on completion
of the project, for the calculation of subsidy. Minimum term loan should be
50% of the project cost. The promoter’s contribution may vary from 20-
50% of TFO and term loan may vary from 50-80% of the TFO.

Note: Promoter’s contribution for State Govt. Infrastructure Projects of the
State Govt. agencies financed under RIDF, WIF of NABARD may be relaxed
as per fund directives.
Promoter’s contribution in case of own funded state Govt. agency projects

should be 75% / 66.67% of the project cost as the case may be.
Subsidy : 25% or 33.33% of the capital cost depending upon area and
category of the beneficiary. Subsidy is back ended.
HOBC 112\159 dated 12-02-2019.
Important Circulars:-
1) Priority Sector Lending – Master Circular—HOBC 112/180 date-16-03-
2019
2) KCC-- Master circular – HOBC 112/55 date – 17/07/2018
3) KCC –Master circular on Animal Husbandary & Fisheries—HOBC
112/169 date 11/03/2019
4) All Agriculture Proposal formats -- HOBC 110/192 date – 03/01/2017
5) Tatkal Loan – HOBC 106/117 date- 01/11/2017
6) PMMY in agriculture – HOBC 110/89 date 09/08/2016
7) Service charges Master Circular– HOBC 112/129 date 12/12/2018
w.e.f.15/01/2019
8) Credit facilities to SC/ST – Master Circular- HOBC 113/75 date
10/07/2019
9) Credit facilities to minorities – Master Circular- - HOBC 113/71 date
10/07/2019
10) PMMY- Master Circular – HOBC 109/63 date 24/06/2015
11) Day NRLM – Master Circular – HOBC 113/74 part I & II date
10/07/2019
12) Stand Up India – Master Circular – HOBC 110/51 27/05/2016
13) Star Start Up – Master Circular – HOBC 111/28 date 25/05/2017
14) Day NULM – Master Circular – HOBC 113/60 date 25/06/2019
15) Transaction Limit at BC outlet – HOBC 113/153 dated 14/10/2019
16) Amendment in BSBDS a/c – HOBC 113/157 dated 16/08/2019

MSME
MSME Definition
Micro Small, Medium Enterprises Development Act, or, popularly known as,
MSMED Act, 2006 has been enacted in June, 2006 and has been notified by
Central Government with an objective to facilitate, promote, develop and
enhance the competitiveness of the MICRO, SMALL & MEDIUM ENTERPRISES.
It has been made applicable from 02nd October, 2006.
• As per the Act, the units falling under the purview of MSME are differentiated
on the basis of activities being carried out by them as (1) MANUFACTURING
Sector Enterprises and (2) SERVICE Sector Enterprises. Further, their
classification into Micro, Small, and Medium, has been done on two criteria,
i.e., whether they fall under Manufacturing Sector; or under Service Sector.
The details of classification are given in the following table.
S. Classification If in Manufacturing If in Service Sector
N. As Sector
01 MICRO Original Cost of Investment in Original Cost of
ENTERPRISE Plant and Machinery not to Equipment’s acquired not
exceed Rs. 25.00 Lakhs to exceed Rs.
10.00 Lakhs
02 SMALL Original Cost of Investment in Original Cost of
ENTERPRISE Plant and Machinery to be Equipment’s acquired to be
more than Rs. 25.00 more than Rs. 10.00
Lakhs, but (including and) Lakhs, but (including
and) up to Rs. 200.00
up to Rs. 500.00 Lakhs
Lakhs
03 MEDIUM Original Cost of Investment in Original Cost of
ENTERPRISE Plant and Machinery to be Equipment’s acquired to be
more than Rs. 500.00 more than Rs. 200.00
Lakhs, but (including and) Lakhs, but (including
up to Rs. 1000.00 Lakhs and) up to Rs. 500.00
Lakhs
Notes:
In case of the manufacturing enterprises, investment in plant and
machinery is the original cost (irrespective of whether the plant and
machinery are new or second hand) excluding land and building and the
items specified by the Ministry of Small Scale Industries.
Service enterprise will include Retail Trade, Small Road & Water Transport
Operators, Small Business, Professional & Self-employed persons and all
other service enterprises. (Ref.BC-103/115 dtd. 26.09.2009 & 106/127 dtd.
17.11.2012)]
All advances made to 'Wholesale Traders" are classified under MSME
(Services) which complies with the investment criteria as specified under
MSMED Act 2006(BC No 108/164 dated 12.12.2014).
In the case of imported machinery, the following shall be included in
calculating the value of plant and machinery namely;

i. Import duty (excluding miscellaneous expenses such as
transportation from the port to the site of the factory, demurrage
paid at the port);
ii. Shipping charges;
iii. Customs clearance charges; and
iv. Sales tax or value added tax.
Budget under PS – 7.5% of ANBC or credit equivalent amount of off

Balance sheet exposure, whichever is higher is Priority Sector Budget for
Micro Enterprises. 60% of total lending to MSE sector should go to Micro
enterprises.
MSME units will enjoy the Priority Sector lending status up to 3 years after
they grow out of the MSME Category concerned.
Obtention of GSTIN is mandatory for MSME borrowers having turnover of

Rs. 40 Lakhs and above & Rs. 10 Lakhs and above in North Eastern Region
/ Hilly areas.
Registration as MSME with District Industry Centre (DIC)

Medium Enterprises (Manufacturing) have to be mandatorily registered with
DIC whereas registration formalities with DIC is optional in case of Micro &
Small Enterprise (Mfg. & Services) and Medium Enterprise (Services).
However, it is advisable for all such enterprises to get the Registration
formalities complied with in view of the available benefits at various points.
If unit is having Udyog Aadhaar Number, then no need to register with DIC.
Registration under Udyog Aadhaar Memorandum (UAM):

1. Single page on line registration at http://udyogaadhaar.gov.in
for Micro, Small and Medium enterprise (MSME) and unorganized
sector units with self-declaration without any document and
without any registration fee.
2. UAM now replaces the need for filing Entrepreneurs Memorandum
(EM Part-I & II). After the notification dated 18-09-2015, filing of
EMI/II by States/UTs should be discouraged. Henceforth, there
should be only one system i.e. UAM for the registration of new
MSME units.
3. UAM requires only Aadhaar Number of the applicant / authorized
person filing the application.
4. Udyog Aadhaar registration enables the units/enterprises to seek
information and apply online about various services being offered
by all Ministries and Departments.
Web based system for application-

In terms of RBI directives, all banks are mandatorily required to maintain
Centralised Loan Application Register in respect of MSME borrowers with
online tracking facility. A web based system of Centralised Loan Application
Register has been put in place by our HO-IT, which is accessible through
link http://ola.bankofindia.com/Loans/SitesAssets/ Mselead.aspx w.e.f. 1st
April, 2013.

Collateral Security: Collateral security is waived for credit limits up to Rs.
10 Lakhs and 25 Lakhs with good track record account with approval of
Zonal Manager and Limits up to Rs. 200 Lakhs, provided CGTMSE cover is
available.
No third party guarantee is required for CGTMSE covered accounts.

Waiver of CGTMSE coverage in eligible accounts to be approved by ZLCC,
quoting valid reasons and where 100% collateral is available. NBGLCC to
approve waiver of CGTMSE coverage with FACR being 1.00 (For calculation
of FACR, only immovable properties by way of land & building is to be
considered. Other than land & building no other forms of securities will be
considered for FACR.) Modification vide Circular Letter No. 2019-20/113
dtd. 03-02-2020. High risk accounts should be discouraged for waiver of
CGTMSE cover. (HO BC 111/77 dated 01.08.2017)
Different application forms

Application for MSME Loan up-to Rs. 200 Lakhs is given in BC 112/27 dated
01-06-2018 &
Application for MUDRA Loan is given in BC 110/89 dated 09-08-2016.
Different Formats of proposals: (For proposal format please refer Br.

Cir. No. 112/88 dated 17-09-2018)
MSME-1 for Small Road Transport Operators irrespective of the Limit
MSME-2 for all Micro and Small Enterprises for limits up to Rs. 25 Lakhs
MSME-3 for all activities under Micro and Small Enterprises for limits above
Rs.25 lakhs up to Rs. 200 Lakhs.
All MSME Proposals up to Rs. 200 Lakhs are to be processed under CAPS.
Click Corporate & MSME Tab and process MSME–2 for limit up to Rs. 25
Lakhs and MSME-3 for limits above Rs. 25 Lakhs and up to Rs. 200 Lakhs
with effect from 01-08-2019.
MSME policy 110/77 dated 25-07-2016 is amended towards assessment of

W/C limits up to Rs. 5 Cr. assessed under T/O method for MSE borrowers
vide HO BC 111/45 dated 27-06-2017.
As per existing guidelines (HO BC 111/45 dated 27-06-2017), for working

capital requirement up to Rs. 5 Crore Turnover method would be applicable
as per Nayak committee recommendations. Under this method working
capital limit is assessed at 31.25% of the projected turnover. 25% of the
turnover is provided by way of Bank finance is remaining 6.25% is to be
contributed by the borrower.
For Medium enterprises under MSME - No change in existing guidelines.

For MSE-Units with digital portion turnover of 25% and above in previous
year, the projected turn over to be further classified into two components -
Digital and non-digital.

For non-digital, working capital requirement to be carried out as 31.25 %
of the accepted projected turnover (25% WC Limit & 6.25% margin)
And for digital, 37.50% of the accepted projected turnover (30% WC Limit
& 7.50% margin).
Both the working capital requirement / limit so calculated to be clubbed
together to arrive at aggregate WC requirement / limit.
IBA has clarified that if the assessment is made at the rate of min. 31.25%
for non-digital & 37.50% for digital portion of the projected turnover, a
need for contingency sanction of Min 25% of the limit may not arise
immediately. Hence this stands discontinued.
Importance of MSME Financing

• MSME Sector plays a vital role in our economy and it acts as a
GROWTH ENGINE thereof, as it supports the large Industries by
supplying required components/Material. This sector produces more
than 6000 products.
• It possesses a high employment potential at a comparatively lower
cost and provides employment to a large number of skilled and
unskilled people, which is, next only to Agriculture Sector. Roughly,
about 63.39 million MSME Units of our country have created
employment opportunities for 111 million, about 40% of India’s
workforce.
• The Sector constitutes 95% of total Enterprises and has registered a
higher growth percentage than the overall Industrial Sector.
• The Sector contributes 33.4% of Manufacturing Output., 40% of
exports.
• Currently around 6.11% of the Manufacturing GDP and 24.63% of
Service Sector GDP of our country is contributed by this sector.
• This Sector accounts for 16% of bank lending.
(Sources: msme.gov.in AR-2018-19/KPMG/CRISIL/CII)
Interest on MSME advances has been linked with Repo Rates (RPLR) as per
HO Branch Circular No. 113/167 dated 13-12-2019.
Various MSME Products

Bank has launched several MSME Products. They are listed herein below-
Star MSME GST Plus-BC 111/155 Dated 29-12-2017

 For GST compliant borrowers for their working capital requirement.
Assessment to be done on the basis of GST returns filed by them.
 Valid for MSME units engaged in manufacturing and trading. Only
working capital can be sanctioned under this scheme.
 Unit should have valid GSTIN. Rating of the account should be of
minimum investment grade and complying entry level norms.
 Quantum of loan-Minimum Rs.10 Lakhs and maximum Rs.500-
Lakhs.

 In case of finance against both, stocks and book debts, DP allowed
against book debts should not be more than 40% of the total limit.
 In case of finance against only book debts the maximum quantum of
loan is restricted to Rs. 200 Lakhs.
 Assessment is done strictly as per turn over specified in GSTR-1 and
GSTR -4
 The quantum of working capital limit should not exceed 25% of the
annual turnover assessed (for MSE) and 20% (for medium
enterprises.)
 Where CGTMSE is not available, minimum CCR should be 65%.
PMMY -110/89 dtd. 09-08-2016

 SCHEME CODE 300,369,370 -Free code 3
 OBJECTIVE-TARGET –Non Corporate Small Business segment WEF
01-04-2016, Allied agriculture activities also gets covered under
PMMY
 Weavers and artisans can be covered under Mission Mudra.
ELIGIBILITY- Individual, Prop., Partnership, Ltd Co. etc.
PURPOSE-For setting up of new / upgrading existing Micro business
enterprises in the manufacturing, processing, trading, service sector and
activities allied to agriculture – Pisciculture, Beekeeping, Poultry, Live-
stock, rearing, grading, sorting, dairy, fishery, agri-clinics, agro business
centre, food & agro processing, Power tillers, tractors etc., financing to
weavers and artisans. (Income generating activity).
NATURE OF FACILITY -Term Loan and/or Working Capital up to maximum
Rs. 10 lakhs.
REPAYMENT - Maximum - 36 months for Demand Loan and 84 months for
term loan including moratorium. Interest to be serviced as and when
charged.
EXTENT OF FINANCE-
SHISHU -- up to Rs. 50,000
KISHORE -- above Rs. 50,000 up to Rs. 5.00 lakh
TARUN -- above Rs. 5.00 lakh up to Rs. 10.00 lakh
MARGIN-
SHISHU – NIL
KISHORE & TARUN -- 15%
PRIMARY SECURITY-
(i) Hypothecation of all assets acquired out of bank finance.
(ii) Personal guarantee of promoters/directors.
Collateral Security — NIL
All eligible activity would be covered under the guarantee cover of
'Credit Guarantee Fund for Micro Units'.
[No collateral security/third party guarantee to be obtained].
WOMEN BENEFIACARIES CONCESSION –
SHISHU -- <50,000 NIL
KISHORE & TARUN - Under Priyadarshani Yojana 1% concession in ROI

Second financial assistance to existing PMEGP / Mudra borrowers
Second financial assistance by way of Term Loan / Working Capital limit can
be now considered for manufacturing sector to the tune of Rs. One Crore & for
Service / Trading sector – to the tune of Rs. 25 Lakhs.
10% margin contribution from the borrower in all cases to be ensured. 15%
subsidy in all categories (20% in North Eastern Region / Hilly states).
Term Loan for capital expenditure component should normally be up to 60%
of the total project cost (maximum 25% ceiling of construction cost) & WC limit
would be usually 40% of the total project cost. However, sanctioning bank may
decide the criteria bases on the nature of the product / project.
Unit should have adjusted margin money claim and first loan should have
been repaid in stipulated time.
The unit should have been making profit for last 3 years. UAM is mandatory.
Second loan should lead to additional employment generation.
Subsidy under second loan will also have lock in period of 36 months, to be
kept as NIL interest FDR. No interest should be charged on equal amount of loan
too.
Mudra Card
 To facilitate WC transactions
 RUPAY debit card, Per day Limit Rs.25000/-
 Insurance coverage – Rs. 1 Lakh
 No charge for issuance
 Limit can be fixed 20% to 100%
CGFMU – {HO BC 111/19 DATED 05-05-2017}

 Managed by NCGTC.
 All micro loans since 08-04-2017 shall be covered.
 OD of Rs. 5000/-under PMJDY are also eligible.
Not eligible micro loans-
 If risks are additionally covered under a scheme
 If against the provisions of the law
 Interest rates not as per the prescribed rates
Guarantee fee:
 During Base year, (year of portfolio built up) fee on sanctioned
amount or o/s on quarterly balance of portfolio.
 Guarantee valid up to end of end of that FY.
 GF shall be paid within 16 days from the end of the quarter.
 Management certificate to be produced within 7 days.
 CGDAN issued by NCGTC within 3 days of getting the certificate.
 GF to be paid within 3 days from the issue of CGDAN CGFMU may
charge differential rate.
 Non-payment of GF would result in lapse of Guarantee.
 GF will be paid by HO.
 Bank will bear the fee for entire FY 2015-16 and 2016-17
 GF for the accounts from 01-04-2017 to be borne by the
borrower.
 Authority letter CL 130 dtd. 27-02-2017. GF is non-refundable.
 Fee-SBR is 1% of the sanctioned amount.

 For NPA % and claim pay-out ratio it will vary.
 The total claim pay-out ratio is capped at 15% of the original
sanctioned Guarantee limit. Inbuilt no claim bonus is available.
 First loss guarantee - 5% of the crystalized portfolio to be borne
by the Bank. For balanced portion the extent of guarantee will be
50% of the amount in default.
 Guarantee can be invoked after 1 year from date of crystallization.
 Bank to furnish statutory auditors/management certificate.
 Claim to be paid within 60 days. Delayed claim will have interest at
Bank rate.
 End of life of the portfolio Life of 4 years.
 To be reviewed every year after the base year.
 5th year is the liquidation and settlement year.
 Final claim pay-out will be made during the fifth year i.e. after the
end of portfolio life.
 Amount in default is defined as NPA for a continuous period of 60
days Recovery details to be furnished to CGFMU.
 Recovery to be remitted to CGFMU within 30 days.
 CGFMU covered accounts to be pooled by HO where GC is 11.
 Eligible accounts to be uploaded on CGFMU portal. HO will send this
list to ZO. In base year the portfolio is built up and crystalized at the
end of the FY.
 Fresh portfolio would commence from subsequent years.
 Certificate showing loans sanctioned +new +NPA to be issued
by MLI.
 GF will be paid by HO MSME to be recovered/reconciled.
 Claims received to be credited to NPA accounts.
 31 Mandatory fields, 12 to be entered by branches.
CGFMU -terms
 Portfolio means cumulative built up of quarterly outstanding
balance of eligible micro loans sanctioned after 08-04-2015.
 SHOULD NOT BE NPA.
 Base year is the year of portfolio built up.
 Date of crystallization is the end of financial year.
 Currency of the portfolio is 3 complete years from the end of the
date of crystallization of the portfolio.
 Amount in default - Remained in NPA for more than 6 M
 Primary security means all the assets owned by the borrower.
(Including personal Guarantee)
 Retail Trade can also be covered under CGFMU which is now
allowed in CGTMSE. Issuance of Mudra Card to PMMY
beneficiary for transacting working capital limits is
mandatory. HOBC 110/89 dated 09.08.2016.
Star Laghu Udyog Suvidha Loan

Under this scheme short term loan facility up-to and inclusive of 180 days
are provided to existing entrepreneurs to ease out their temporary liquidity
problem. Loan amount should be 50% of regular sanctioned limit subject to

maximum of Rs. 50 Lakhs. Unit should be profit making for last 3 years and annual
turnover of Rs. 50 Lakhs.
Star Laghu Udyami Samekit Loan

The then existing Samekit Loan scheme was modified and now a composite
loan in the form of demand loan and/or term loan is provided to all Micro & Small
Entrepreneurs at a margin of 15% with prescribed ceilings for the quantum of
Bank finance varying as per location of the unit. As per scheme before
modification, Metro area entrepreneurs were excluded from the scheme and
repayment period allowed was maximum 36 months. Now, it could be up to 60
months. The maximum quantum of loan that can be given in Metro Rs. 100 Lakhs,
Urban Rs. 50 Lakhs, Semi-urban Rs. 10 Lakhs , and rural areas Rs. 5 Lakhs. With
special approval of ZM, Branches can grant up to Rs. 100 Lakhs. CGTMSE cover
has been made mandatory under the scheme. Bank considers Composite Loan
under this scheme for the purpose of investment as well as working capital. (HOBC
104/58 dated 10.08.2010)
Star MSME Demand Term Loan:

This is a scheme which is very much on par with Star Laghu Udyami Samekit
Loan. Under the MSE Demand/Term Loan scheme, demand loan and term loan
can be considered separately for purchase of plant, machinery, equipment, and
other movable assets, BUT NOT FOR WORKING CAPITAL REQUIREMENTS, at 15%
margin with prescribed ceilings depending upon the location of the unit, maximum
being Rs. 100 Lakhs in Metro areas and Rs. 5 Lakhs in rural areas Rs. 50 lakh in
urban and Rs. 10 lakh in semi urban. CGTMSE cover has been made mandatory
for advances under the scheme. (HOBC 104/158 dated 10.08.2010)
Star Priyadarshini Yojana:

The scheme is specially designed for women entrepreneurs for purchase of
equipment, machinery, vehicle, furniture and fixture etc., as well as for their
working capital requirements. Under this scheme concession of 0.50% for loan
up to Rs. 50,000/ and 1% for loan above Rs. 50,000/ is extended to the women
entrepreneurs in applicable rate of interest. There is no upper ceiling for the loan
amount. Women enterprises where women entrepreneurs hold not less than 51%
of financial holding are also covered under the scheme. (HOBC 101I25 dated
21.05.2007).
Star SME Liquid Plus:

The product is formulated for entrepreneurs who are engaged in business
for a period of at least 3 years and whose audited financials are in place. The unit
should be profit marking for last 2 years. They can avail term loan for purchase
of machineries, equipment, for preliminary expenses, for R&D activity, marketing
and advertising expenses, etc., against unencumbered value of their property.
The minimum and maximum advance facilities available under the scheme are Rs.
10 Lakhs and Rs. 5OO Lakhs, respectively. Amount of loan will be assessed on the
basis of 50% of unencumbered value of property offered or 75% of requirement
whichever is lesser. (HOBC 104/112 dated 13.01.2011).

Star SME Auto Express:
Under the scheme term loan is extended to individuals, Proprietary /
Partnership firms, limited companies, Trusts and Societies for purchase of new
Transport Vehicles, to be used for delivering the products, services. Educational
Institutions too can avail finance under the scheme for plying of students.
Maximum limit is presently Rs. 500 lakhs. (HOBC 104/129 dated 13.01.2011)
Star SME Contractor Credit Line:

It is designed to meet working capital requirements of established
contractors, engaged in business for past 3 years, having audited financials in
place. Finance can be availed in form of Cash Credit, Bank Guarantee, Letter of
Credit, etc., with minimum of Rs. 10 Lakhs & maximum of Rs. 500 Lakhs. Appraisal
will be on 30% of average of last 2 years turnover of which 2/3 should be fund
based & 1/3 to be non-fund based. (HOBC 104/129 dated 13.01.2011)
Star SME Education Plus:

Approved educational institutions i.e. Universities, Colleges and Schools
with 3 years audited financials and record of profit making for at least continuous
2 years can avail Term loan for Construction, Renovation, Repair of building, and
for purchase of computers, equipment, furniture, etc. New institutions can also be
considered on projected basis. The minimum and maximum loan which can be
granted under the scheme is Rs. 10 Lakhs and Rs. 500 Lakhs, respectively. (HOBC
104/129 dated 13.01.2011).
BOI STAR Vyapar:

In order to derive credit growth under MSME Sector Lending and with a
view to targeting this segment, a new scheme for financing Retail Traders as well
as whole sale traders to meet their working capital requirements is devised. The
extent of finance under the scheme is capped at Rs. 10 Crores (Minimum Rs. 10
Lakhs) Maximum Rs. 500 lakh for Micro & Small Enterprises and Rs. 1000 lakhs
for Medium Enterprises. The advance under the scheme will, in addition to the
Principal Security of stock and or book debt, be collaterally secured by tangible
security (mortgage of immovable property and/or liquid security) having market
value of minimum of 110% of Limit availed. The Unique Selling Proposition (USP)
of the scheme is the offer of lower Rate of Interest, based on the market value of
collateral security. Where loan is given only against book debts maximum amount
is Rs.5 Crores (for medium enterprises) and Rs. 2.5 Crores for MSE. Where it is
combined with stock and book debt, drawal against book debt cannot exceed 50%
of total limit. Retail trade is now covered under CGTMSE scheme. The ROI will
move proportionately upward or downward according to the market value of
security, with a proviso for topping up the security margin, i.e., higher the value
of collateral, lower will be the rate of interest. (HOBC106I127 dated 17.11.2012;
Circular Letter No. 2012-13I223 dated 06.12.2012 & 109/217 dated 03.03.2016).
BOI STAR DOCTOR PLUS:

The “BOI STAR DOCTOR PLUS” scheme envisages extending credit facilities
to qualified RMPs from the streams, MBBS, BHMS, BDS, BAMS, BUMS, BPT & BOT.
The credit facility is extended for any bona-fide purpose relating to medical
profession, like, setting up new clinic, purchase of equipment, purchase of vehicle,

expansion / upgradation, modernization of existing clinics, etc. The scheme has
proposed no upper limit for consideration of term facility for construction of new /
renovation of existing hospitals, clinics, laboratories, etc., and purchase of
equipment related to the profession, subject to obtaining stipulated margin.
However, maximum quantum of loan is fixed at Rs.100 Lakhs for purchase of
vehicles (ambulance, vans and other utility vehicles) & Rs. 100 Lakhs by way of
clean working capital facility. The scheme has other attractive features with regard
to softer ROI and not too stringent a requirement of collateral security. Up to Rs.
2 Crores may be covered under CGTMSE (if eligible) and Rs.1 Crore to Rs.10 Cr
no collateral to be obtained and above Rs. 10 Crore, only 20% collateral.
(HOBC107/154 dated 06.11.2013 & HOBC 110/150 dated 09.11.2016)
Credit Linked Capital Subsidy Scheme (CLCSS):

Government of India, Ministry of Micro, Small and Medium Enterprises has
conveyed their approval for continuation of the Credit Linked Capital Subsidy
Scheme (CLCSS) for Technology Up-gradation of Micro and Small Enterprises for
FY 2019-2020. Terms and conditions:
• Ceiling on the loan under the scheme is Rs.100 Lakhs.
• The rate of subsidy is 15% for all units of micro and small enterprises
up to loan ceiling at Sr. No. (i). Additional 10% subsidy to SC/ST MSMEs
under National SC/ST Hub (NSSH).
• Calculation of admissible subsidy will be done with reference to the
purchase price of plant and machinery instead of with reference to the
term loan disbursed to the beneficiary unit.
• Submission of claim through dedicated online application and tracking
system (www.dcmsme.gov.in). Subsidy to be kept in non-interest
bearing FDR for Three years. No interest on subsidy portion of loan
component to be charged. Thereafter it may be credited to loan account,
if all conditions, particularly regarding working of machine is fulfilled.
• SIDBI and NABARD will continue to be implementing agencies of the
scheme TUFS cell at SME department HO is the nodal agency.
Replacement of existing equipments with same equipment will not
qualify for subsidy. Subsidy not available for second hand equipments.
Priority to SC/ST and Women. However, some relaxations have been
considered in case of SC/ST, Women beneficiary, North Eastern Region,
Hilly area (J&K, Himachal Pradesh, Uttarakhand) / Island territories and
Aspirational / Left Wing effected districts.
• Permanent SSI or UAM is mandatory
Subsidy schemes on similar lines (including interest subsidy) are also made
available for textile sector as well as for food processing sector by respective
Ministry of Government of India. Branches are required to refer instructions of HO
I Ministry from time to time in this regard.
Loan against TDR for business purpose:

Advance availed for business / Commercial purposes even against cash
collaterals like TDRs/NSCs etc., can be classified under MSME sector provided
borrower/firm/company is/are eligible for such classification as per MSMED Act
2006 in terms of investment made in P&MI Equipment. In such cases the account

should be classified as per the occupation of the borrower and the advance is used
for business/productive purpose. Branch must keep the records along with the
documents evidencing eligibility of the advance as per MSMED Act 2006.
Star Channel Credit:

Our Bank had introduced credit product 'Star Channel Credit' (SCC) for
financing under invoice bill discounting scheme to vendors / dealers of
manufacturers, wholesalers, distributors, etc. vide HOBC No. 98/49 dated
23.06.2004. The main corporate should have account/facilities with us. The
scheme has been revamped vide the new circular in 2014. Amendments were
made vide HOBC 100/89 dated 01.09.2006, Circular letter No. 2006-07I 106
dated 27.12.2006 & HOBC 100I191 dated 03.03.2007, HO BC 108/54 date
12.06.2014. (Latest circular No HOBC 112/125 dated 25-10-2018). Under the
scheme the facility is extended to vendor/suppliers and dealers of sponsoring
corporates. The quantum for vendor is assessed at 20% of supplies to corporate
and for dealer based on turnover method/MPFB. The finance is in the nature of
invoice/bill discounting. The tenor of the facility is maximum 90 days, No Grace
Period is allowed. For vendor/supplier credit rating may be dispensed with for the
dealer it should be carried out.
BOI ENERGY SAVER for MSME:

To meet funding requirement for modernization / up gradation / installation
/ adapting energy saving machinery and equipment, which results in reduction of
fuel cost, make it eco-friendly, minimize emission levels. Max. Rs. 100 lakhs,
Margin 15%. All eligible activity will be covered under CGTMSE. The Dealers in
Energy Saving Devices are not eligible under the scheme.
Small Road Transport Operators:

Purpose of Advance-
o For Purchase of new vehicle - Cost of chassis plus body building, cost of
meter, sales tax and other taxes, insurance premium during loan period,
registration and other essential incidental charges.
o For purchase of second hand vehicle - For up to 3 years old, which can
be comprehensively insured.
o For repairs & renovation – For up to 5 years old vehicles, subject to no
charge of other Banks on the vehicle.
Eligible Applicant:
Individuals, Association of Individuals, Firms (Proprietary partnership) and
Limited Companies who are registered as “Public Carriers” or “Contract Carriers”.
Number of vehicles does not exceed ten including one being financed.
Limit:
No ceiling depending upon requirement/repayment capacity of the
proponent / borrower. However total original investment in vehicles should not
exceed Rs. 2.00 Crore for covering under Micro and Small enterprises under
Priority sector and not to exceed Rs. 5.00 Crore for coverage under Medium

enterprises. The maximum number of vehicle is no more a criteria for
classification in priority sector.
Repairs/Renovations:
Type of vehicle Limits
Truck, Tankers, Dumper Buses etc. 1,00,000.00
Taxis, Tourist Taxis, Tempo 25,000.00
Auto Rickshaw 10,000.00
Other Small Vehicles 1,000.00
Margin:
Credit limit New Old
Vehicles Vehicles
Up-to & inclusive of Rs. 25,000/- Nil 25%
Over Rs. 25,000/- Min 15% Min 25%
For Repairs & Renovation Nil 40%
Security
o Limit up to & inclusive of Rs.200 Lakh– Hypothecation of vehicle/s
subject to availability of CGTMSE guarantee cover.
o Limit over Rs.200 Lakh – Hypothecation of vehicle/s and Collateral
security / third party guarantee.
Repayment:
New vehicle: Up to 7 years including moratorium of 6 month in EMI’s with
repayment. Holiday of 3 months during rainy/lean season every year may be
considered in the original proposal within the original tenor of the term loan.
Old vehicle/repairs: 3 years by EMI.
Small Business:
Eligibility: Individuals or firms providing any service (other than professional
service) Example: Cycle hiring shops, hair dressing saloons, small lunch homes,
launderers, tea-stalls, restaurants and hotels, beauty parlours, sweetmeat shops,
tent house, caters etc.
Purpose:
o Purchase of necessary equipment’s, equipment such as furniture and
fixtures directly related to the profession/business.
o For purchase of equipment and other fixed assets. (The original cost price
of equipment should not exceed Rs. 200 Lakhs for micro and small
enterprises and Rs. 500 Lakh for medium enterprises.)
o Accounts covered under Micro and Small enterprises are classified under
Priority Sector Advances.
o For working capital needs as per need.

Loan Amount: Need-based limit without any ceiling for working capital limits and
term loan subject to total investment ceiling as stated above
Margin:
 for loans up to Rs. 25,000/- NIL
 for loans above Rs. 25,000/- 25%
Rate of Interest: as applicable from time to time
Security
o Limit up to Rs. 25,000/- Hypothecation of assets acquired out of Bank
Finance
o Limit above Rs. 25,000/- up to Rs. 200 Lakh, no collateral / third party
guarantee if CGTMSE guarantee cover available.
Repayment: Working capital advances are normally repayable on demand.

However for the convenience of the borrower, repayment period not exceeding 3
years may be granted. Term loan is repayable over a max. period of 10 years.
Professional & Self-Employed Persons

Individuals or all the members of the firm who have undergone
degree/diploma from any institution, etc. recognized by the Government or those
who are technically qualified, skilled or have adequate experience. Examples:
Chartered/Cost Accountants, Practicing Company Secretaries Lawyers (or)
Solicitors, Architects, Engineers, Surveyors, medical practitioners, Construction
contractors or management Consultants or to a person trained in any other art
or craft who holds either a degree or diploma from any institutions established,
aided or recognized by Government or to a persons who is considered by the bank
as technically qualified or skilled in the field in which he is employed for example
mechanics, electrician, plumber, carpenter, gold smith, ironsmith etc.
Credits for the purpose of purchasing equipment, acquisition of premises
(strictly for business) and tools to practicing company secretaries who are not in
the regular employment of any employer.
Financial assistance for running ‘Health Centre’ by an individual who is not
a doctor, but has received some formal training about the use of various
instruments of physical exercises.
Preference may be given by banks to financing professionals like doctors,
etc., who are carrying on their profession in rural or semi-urban areas. The term
also includes firms and joint ventures of such Professional and Self-employed
persons. This category will include all advances granted by the bank under special
schemes, if any, introduced for the purpose.
Purpose
o Loans for purchase of furniture, fixtures, etc. directly related to the
profession or business and also for repairing or renovating existing
equipment and/or acquiring and Repairing business premises or for
purchasing tools related to the profession (motor vehicles are not
considered only for Medical Practitioners)

o For acquisition of premises on rental/ownership basis. Such limits should
be secured by Mortgage.
o For working capital needs.
o For professionals other than doctors, loan for purchase of vehicles cannot
be granted under Priority sector. They will be considered only under C & IC
sector.
Amount of Loan
Need-based limit subject to complying with ceiling criterion of original
investment in equipment. In case of Micro enterprises maximum original
investment in equipment not to exceed Rs. 10 Lakh and for Small enterprises it
can be between Rs. 10 Lakh to Rs. 200 Lakh. Micro and Small enterprises shall be
covered under priority sector. If the original investment is more than Rs. 200 Lakh
but not exceeding Rs. 500 Lakh account will be classified under Medium enterprise.
Margin:
o For loans up-to Rs. 25,000/- - NIL
o For loans above Rs. 25,000/- -20% in rural/semi-urban/specified backward
areas and 25% in others.
Rate of Interest: As advised by Bank from time to time.
Security:
o Up to Rs. 25,000/- Pledge/Hypothecation/Mortgage of assets acquired out of
Bank finance.
o Limit above Rs. 25,000/- Rs 200 Lakh –No collateral security / third party
guarantee if account eligible for CGTMSE guarantees cover.
Retail Trade
The Scheme will apply to individuals, firms (proprietary / partnership), fair
price shops, consumer co-operative stores engaged/intending to engage in retail
trading of various commodities such as textile, provisions, medicines and
cosmetics items, durable goods and perishable commodities such as meat,
vegetables, fruits, milk etc. The persons intending to start retail trading activity
should have some experience in the line. The condition regarding experience may
be waived at the discretion of the sanctioning authority if he is satisfied that the
person is capable of managing the activity successfully.
Purpose:
Advances under the Scheme may be granted to meet the genuine credit
needs only of the trader to hold and sell goods. Advances may also be considered
for acquisition of Capital Assets and for ancillary equipment like refrigerator,
accounting machine, furnishing/renovating the shop etc.
Type of Advance:
Advances under the Scheme may be granted by way of cash
credit/overdraft. If, in the opinion of the sanctioning authority, the applicant does
not need a revolving facility for his working capital needs, then a demand loan
should be granted.

Quantum of Advance:
There is no ceiling on quantum of advance that may be sanctioned to fair
price shops or consumer co-operative stores. Need-based finance may be
sanctioned depending upon the income generation and repayment capacity of the
borrower.
Security and Third Party Guarantee: Credit Limit & Security-
o Credit limit up to & inclusive of Rs 25,000/-- Hypothecation / Pledge /
Mortgage of assets created out of bank finance
o Credit limit over Rs 25,000/- & up to Rs. 100 Lakhs - as stated above plus
CGTMSE Cover
o Credit limit over Rs. 100 Lakhs - Hypothecation / Pledge / Mortgage of
assets created out of bank finance and adequate collateral security and /or
third party guarantee to be obtained to strengthen the advance.
o Under “Star Vyapar” –Min size is Rs. 10 Lakhs and Maximum size is Rs.
1000 Lakhs with Margin of 25% against stocks and book-debts.
In case of advances to retail traders for acquisition of premises, equitable

mortgage of premises acquired with Bank finance should be taken. In the case of
premises acquired from a co-operative housing society, share certificates and
other relevant documents evidencing purchase of premises should be deposited
with the Bank for creating equitable mortgage of premises. The Bank’s lien on the
premises should be registered with the co-operative society.
Margin: Credit Limit & Margin-
o Credit limit up to & inclusive of Rs 25,000/- NIL (irrespective of location of
unit)
o Credit limit over Rs 25,000/- 20% in rural/semi-urban/centrally notified
backward areas. 25% in other areas
Rate of Interest:
Interest may be charged at applicable rates as advised by the Bank from time to
time.
Disbursement:
The Loan amount should be disbursed directly to the manufacturer/
dealer/supplier against proper bills/receipts. However, with a view to ensuring
safe delivery of the assets, it is suggested that the demand draft/pay order drawn
in favour of the supplier may be handed over to the borrower against his
acknowledgement and an undertaking may also be obtained from the borrower
that he will duly deliver the draft to the supplier.
Insurance:
The assets charged to the Bank should be fully insured against all risks and Bank
mortgage clause to be incorporated in the insurance policy.
Waiver of Insurance:
Waiver of insurance may be considered for credit limit not exceeding Rs. 25,000/-
. The Branch Manager may consider such waiver provided sanction of credit limit
falls within his delegated power. Care should be taken to see that the security
charged to the bank is invariably insured in cases where it is so required by law.

Repayment:
Working capital advances granted by way of demand loans should be repaid in
monthly/quarterly or more frequent instalments spread over a period of less than
3 years, inclusive of initial moratorium of three months. Branches may consider
stipulating repayment in Equated Monthly Instalments.
Review:
Branches need not prepare separate proposals/statements in lieu of proposals for
the review of accounts with credit limit of Rs. 500,000/- and less. These accounts
will be treated as reviewed as on the date of completion of credit inspection of the
branch by Officials deputed by the Zonal Office for that purpose. All other advances
with credit limits over Rs. 500,000/- should be reviewed in the statement form in
lieu of review proposal as on 30th November every year and should be submitted
at the appropriate level for sanction/reporting. In case the Branch wants, as per
instructions in force, to modify the terms of sanction including instalments,
repayment period etc. in one or more of the accounts, irrespective of whether the
review of credit inspection has been completed or not. Branches should undertake
the review of accounts regularly and review work should not be allowed to remain
in arrears.
Loan Scheme for Tax Return Preparers:

(Under Professional & Self-Employed category)
Objectives of the Govt. Scheme for Tax Return Preparers:
o Reduction in the cost of compliance for small and marginal tax payers and
encouraging them to comply with tax laws.
o Providing self-employment opportunities to unemployed and partially
employed graduates all over the country.
o Scheme does not provide for any employment in the Govt.
Eligibility
Any individual who holds a graduation degree from a recognized Indian University
in the fields of Business Administration or Management or Commerce or Economics
or Law or Mathematics or Statistics shall be eligible to act as Tax Return Preparer
and who is unemployed or partially employed. Such Unemployed/Partially
Employed Graduates all over the Country would be:
o selected and imparted 9 days’ training, using class room training and web-
based teaching;
o issued Tax Preparers’ Course Completion Certificate by NIIT (called Partner
Organization) upon successful completion of the Training at any of the 100
NIIT Centres across the country.
o Issued a unique ID Number also along with the Completion Certificate, by
the Partnering Organization NIIT.
Note:
o Any individual who is in employment and receipt of income chargeable to
income-tax under the head salaries shall not be entitled to act as Tax Return
Preparer
o The cost of the Training, and the Examination would be borne by the Central
Govt. Such aspirants for becoming Tax Return Preparers would have to

apply for selection along with a fee of Rs. 100/-. Candidates enrolled for the
programme have also to deposit a refundable deposit of Rs. 1000/- which
shall be returned after successful completion of the Training Programme.
Scope of the Tax Return Preparer:

The Tax Return Preparer will provide assistance in filing tax returns to eligible
persons such as self-employed and small businessmen, salaried employees, senior
citizens, HUFs and women. However, returns involving statutory audit will not be
dealt with by the TRPs.
Purpose of the Loan:
To enable the TRP to possess their own laptop computer, heavy duty printer, and
other peripherals, appropriate software, broadband internet connection, furniture,
mobile phone and tax books/technical literature etc.
Max. Finance - Direct disbursement up to a max. of Rs. 75,000/-
Rate of Interest - As advised from time to time.
Margin - 5% of the cost of the proposed assets.
Repayment - 3 years with initial moratorium of 6 months. The EMI for first 6
months would be 50% of the normal EMI, which would be equally loaded upon the
remaining months’ EMI.
Source of Repayment :
The Tax Return Preparers would receive:-
o 3% of the tax collected for the first year’s return of a new tax payer;
o 2% for the second year, and
o 1% for the third year
Stand-up India Scheme: (HO BC No. 110/51 dated 27.05.2016)

To promote entrepreneurship at grass root level for economic
empowerment and job creation for SC / ST / and/or Women entrepreneurs above
18 years of age. Greenfield projects (first time venture of the beneficiary) in
manufacturing, services or trading sectors. In case of non-individual enterprises
at least 51% of the shareholding and controlling stake should be held by either an
SC/ST or Woman entrepreneur.
Composite loan (inclusive of term loan and working capital) between Rs.
10 lakh and up-to Rs. 100 lakh can be sanctioned under the scheme.
Security - Besides primary security, the loan may be secured by collateral

security or guarantee of Credit Guarantee Fund Scheme for Stand-Up India Loans
(CGSSI). BC 111/38 Dtd. 15-06-2017)
Repayment-The loan is repayable in 84 months with maximum moratorium

period of 18 months. The Scheme envisages 25% margin money.
For Working capital up-to Rs. 10 lakh, the same may be sanctioned by way
of overdraft. Rupay Debit card to be issued for convenience of the borrower.
Working Capital limit above Rs.10 lakh to be sanctioned by way of Cash Credit

limit. The portal (www.standupmitra.in) provides information to a potential
borrower on various kinds of handholding support from different agencies and also
provides a window to get in touch with Banks for availing loans
 The Applicant first clicks to 'Register' and answers to a few short questions
on the Registration Page of the portal.
 Based on the response, the Applicant would be classified as a Trainee
Borrower or Ready Borrower.
 Applicant would also be given feedback on his/her eligibility for Stand-Up
India loan.
Credit Proposal Tracking System for MSME Loans (CPTS):
Customers can apply online through our bank’s website. After filling all the
information by the customer, a Unique Application ID will be generated. This
information will directly flow in Finacle of chosen branch and email alert will also
be sent to the branch concerned. Branch will be able to access the application
through CPTSDT menu. All physically received MSME applications are also to be
fed in the system through CPTSDT menu and application ID generated should be
informed to the customer for online tracking.
Credit Guarantee Scheme for Stand-Up India (CGSSI) (BC 111/38 dated
19.06.2017)
To guarantee credit facilities of over Rs. 10 lakh & up-to Rs. 100 lakh under
Stand Up India Scheme.
Guarantee Cover –
To the extent of 80% of the amount in default for credit facility above Rs.
10 lakh and up-to Rs. 50 lakh, subject to a maximum of Rs. 40 lakh.
For credit facility above Rs. 50 lakh and up-to Rs.100 lakh - Rs. 40 lakh plus
50% of amount in default above Rs. 50 lakh subject to overall ceiling of Rs. 65
lakh of the amount in default.
Guarantee Tenor –
Term loan - Loan period as per sanction proposal.
Working Capital - 12 months from account opening date, which will be updated
every year
GUARANTEE FEE -
Presently Standard Basic Rate of Guarantee Fees is 0.85% of Sanction
Limit.
Further, The Guarantee Fee on Differential Rates will be based on NPA %
and Claim pay-out ratio of Bank, as per the existing database of CGTMSE and in
accordance with the Circular No. 107/2015-16 dated January 28, 2016 issued by
CGTMSE.
The Bank shall pay the guarantee fee of the sanctioned amount on pro-rata
basis for the first and last year and in full for the intervening years within 16 days
from the end of the quarter in which the credit facility was sanctioned. The Bank
will furnish a Management Certificate within 10 days from the end of the quarter,
after which, a Credit Guarantee Demand Advice Note [CGDAN] would be issued

by NCGTC within 3 day of receipt of Management Certificate and subsequently,
the guarantee fee shall be payable within 3 days from the issue of CGDAN.
For NPA accounts fee to be paid till lodgement of claim for such accounts.
In case of Non-payment of Guarantee Fee within the stipulated time, liability of
the CGSSI would lapse.
In the event of any shortfall being found in the calculation of the guarantee
fee, such shortfall shall be paid together with interest on such amount at a rate of
4% over and above the Bank Rate
Ineligible cases -
1. Facilities already secured by DICGC or other government guaranteed
schemes.
2. Credit facility sanctioned against collateral security and I or third party
guarantee
3. Credit facility sanctioned which is not conforming to the Stand Up India
Scheme
Claims-
Within a maximum period of two years from the date of NPA, if NPA is after
the lock-in period (lock-in period of 18 months from the date of commencement
of guarantee) or within two years of lock in period.
Account has been recalled and the recovery proceedings have been
initiated. If claim is in order, CGSSI shall pay 75 per cent of the guaranteed
amount within 30 days. Balance 25 % will be paid on conclusion of recovery
proceedings. The Trust shall pay to the Bank interest at the prevailing Bank Rate
for the period of delay beyond 30 days.
Bank to use SARFAESI and the amount realized from the sale of such assets
or otherwise shall first be credited in full by the Bank to the Trust.
Bank to refund the claim released by the CGSSI together with penal interest
at the rate of 4% above the prevailing Bank Rate if there is any delay beyond 30
days
Notes-
 Guarantee Cover Code -12 entered in the account in Finacle.
 Special Character - & > < +?>@ # Not allowed.
 The XML file is to be uploaded on the web-portal of NCGTC having 37
mandatory fields without “NULL” value.
 Record to be maintained - Head Office will generate the list of total
Sanctioned/Disbursed accounts on quarterly basis and will send to the
respective Zones for confirmation. After obtaining confirmation, the final
accounts will be uploaded on CGSSI web portal and same will be advised to
respective Zones. Zones will keep the record of the quarterly I yearly
covered accounts for all future references.
 The list of accounts with guarantee fees will be advised to respective Zones
and their ZOGENSUS accounts ZOXXXGEN00038 opened for payment of
Guarantee Fees will be debited. The Zones will recover the amount from the
borrowers and reconcile the ZOGENSUS account

Ease of MSME Finance: MUDRA franchise / dealers / Aggregators Scheme
(HO BC 112/74 dated 27-08-2018)
SOP is circulated for financing to franchise / dealers / aggregators identified
by the Corporate and a common corporate specific product will be framed (within
the ambit of the PMMY). Approving authority rests with the EDLCC. A MOU with
the Corporate will be executed. Delegation to sanction individual proposal will be
as per normal Delegation of Powers.
STAR START UP SCHEME (BC No. 111/28 dated 25.05.2017)

For innovation Development, new products or services driven by technology
or intellectual property. Must be certified by Govt. as start up as per start up India
scheme Pvt. Ltd. Co., Registered partnership or LLP are eligible.
Should not have completed 5 Years from date of incorporation or annual
turnover should not have crossed Rs.25 Crores
Margin - T/L (25%), W/C (10%),
Quantum - Min Rs.10 Lakh to Max. Rs. 5 Crores
Guarantee cover: to be obtained.
Repayment - 72 Months, including moratorium of 24 Months.
Seed capital, Venture capital investment can be taken as margin.
Star Weaver Mudra Scheme: (Circular Letter No. 2016-17-165

dated 30.11.2016
To provide timely and adequate assistance to weavers to meet their credit
requirements.
New and existing handloom weavers involved in weaving activity also
eligible.
Maximum Loan Rs. 5 lakh. Margin 20% of Project Cost. Ministry of Textile,
Govt. of India to bear margin @ 20% of project cost with max of Rs. 10,000.00.
Balance margin to be borne by the borrower.
Term Loan repayable within three to five years over and above the gestation
period of six months.
CGTMSE fee will be paid by Ministry of Textile (Max for three years).
Interest subsidy will be limited to 6%, difference between actual interest
and 6% to be paid by the borrower. Interest subvention is capped at 7 %( max
for 3 years from the date of first disbursement).
Pradhan Mantri Credit Scheme for Power loom Weavers (HO BC 112/72
dated 31-8-2018)
Pradhan Mantri Credit Scheme for Power loom Weavers (PMCSP) from the
Ministry of Textiles, Government of India under Power Tex India effective from
01.04.2017 to 31.03.2020
Objective:
To provide financial assistance viz., Margin Money Subsidy and interest
reimbursement as against the credit facilities (Term Loan) availed under Pradhan
Mantri Mudra Yojana (PMMY) to the decentralized power loom units / weavers.
Margin Money Subsidy as against the credit facilities (Term Loan) availed under
Stand-up India Scheme by the SC, ST and Women Entrepreneur of the
decentralized power loom units / weavers to meet their credit requirements such

as for investment needs (Term Loan) and for working capital etc. There are two
components in the Scheme i.e.
Category-I under Prime Minister MUDRA Yojana (PMMY) –

Existing individual power loom units or new individual / group enterprises involved
in weaving activity are eligible.
Category-II under Stand-up India Scheme –

Only new power loom units established by a person who belongs to a Scheduled
Caste (SC) or Scheduled Tribe (ST) or is a woman entrepreneur. In case of non-
individual units at least 51 % of the shareholding and controlling stake should be
held by either an SC (or) ST (or) women entrepreneur. For details, please log on
to https://ipowertexindia.gov.in
Subsidy Scheme under Technology and Quality Upgradation (TEQUP)

Any MSME unit who has filed an Entrepreneurial Memorandum with the
authority or who has erstwhile DIC registration, subject to:-
The MSME unit should have been audited for energy consumption and detail
project report on EETs, prepared by a qualified Energy Manager \ Auditor.
Unit must lead to at least 15% reduction in energy consumption.
Investment in new plant, machinery and equipment should focused on enhancing
energy efficiency.
The unit should not be covered under any other subsidy scheme.
Sanction of Subsidy shall be done after loan disbursement. Up to 2 years,
after completion, unit should submit operational and performance details
to the branch.
Subsidy - MAX. – Up to 25% of the project cost, Max. Rs. 10 Lakhs.
Subsidy will be adjusted against the last principal instalments of the loan account.
Credit Guarantee Fund Trust Scheme for Micro and Small Enterprises
Credit Guarantee Fund Scheme for Small Industries (CGFSI) has since been
changed to Credit Guarantee Fund Scheme for Micro & Small Enterprises
(CGTMSE) with effect from 2nd July 2007. The salient features of the scheme are
as under-
Eligible Borrowers:
New or existing Micro and Small Enterprises (both Manufacturing and
Services) to which credit facility has been provided without any collateral
security and/or third party guarantees. Primary Security shall mean assets
created out of the credit facility and / or assets which are directly associated with
the project or business for which the credit facility has been extended. The charge
on unencumbered assets appearing in the Balance Sheet of the unit is treated as
primary security. (HO BC 102/195 dated 09.02.2009).
Credit facilities extended to a unit already assisted by State/National Level
Institutions are eligible for Guarantee Cover under the scheme. Joint financing by
two commercial Banks to a single borrower also eligible for guarantee cover. Joint
Financing with SIDBI eligible for guarantee cover.

All types of firms / companies or other legally constituted bodies, individual
borrowers, small businesses.
No death claim benefit available to the beneficiaries of CGTMSE scheme wef
29.07.2008 (BC No: 106/184 dated 15.02.2013)
“Advances to Retail Traders” are covered to the extent of Rs. 100 Lakhs
subject to coverage to the extent of 50% (HO BC 112/117 dated 14-11-2018).
Not Eligible Borrowers:

Educational Institutions are not covered under CGTMSE (BC No: 105/84
dated 18.08.2011). Group lending through SHGs not eligible. Finance to medium
enterprises not eligible. Case specific action, if any, for obtaining Collateral
security/third party guarantee in lieu of CGTMSE cover, may be taken up only with
prior approval of ZLCC (Ref. HO BC 111/77 dated 1-8-2017).
Eligible Accounts
• Both Term Loan and Working Capital (both fund based and non-fund based)
can be covered.
• In case an account which had been sanctioned Credit earlier had been omitted
to be covered under the scheme, only Working Capital accounts of such
borrower can be covered at the time of review/renewal. Term loan omitted to
be covered cannot be covered during subsequent review.
• Maximum amount of finance eligible for coverage under the scheme is Rs. 200
Lakhs per institution.
• Maximum rate of interest that can be charged by the bank as per RBI
directions.
• Where the borrower is enjoying several distinct credit facilities, one or more
out of the same can be covered up to the Eligible Amount (presently Rs. 200
Lakhs) provided no collateral security and 3rd party guarantee has been
obtained.
• Partial Collateral Security under CGTMSE (Hybrid Security Product):
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 bank 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 Lakhs can be covered
under Credit Guarantee Scheme. CGTMSE will however have notional second
charge on the collateral security provided by the borrower for the credit facility.
No formal charge is to be created in favour of CGTMSE by way of any legal
documentation (Ref. HO BC 112/112 dated 6-11-2018). The above change of
allowing partial collateral security under the ambit of Credit Guarantee Scheme
of CGTMSE shall be applicable to FRESH credit facilities eligible for coverage on
or after 28-02-2018.
• For credit facilities above Rs. 50 Lakhs and up to Rs.200 Lakhs, internal rating
should be of investment grade. Investment grade refers to the acceptable
grade. In our bank internal rating for extending credit facilities to Micro and
Small Enterprises for fund based and non-fund based limit between Rs. 10
Lakhs and Rs. 200 Lakhs, the SBS (For limits up to Rs. 100 Lakhs) / SME (For

limits above Rs. 100 Lakhs to Rs. 200 Lakhs) model of credit rating shall be
followed. The following risk grades are to be treated as minimum grades for
considering sanction of advance to a borrower-
o Micro and Small Enterprises – Manufacturing an entry grade of
SBS / SME 5.0 score
o Micro and Small Enterprises – Services an entry grade of SBS /
SME 5..0
Non-Eligibility:
Any facility given on the basis of collateral security and/or third party
guarantee {Except under Hybrid Security Products} shall be disqualified for
coverage under the scheme. The CGTMSE also reserves the right to reject any
application for the guarantee cover, if it deems necessary Finance to retail trade
is outside the purview of coverage under the scheme. Finance to Medium
enterprises is also not covered under the scheme.
Credit Guarantee Cover:

The Trust shall provide guarantee as under; (102/195 dated 09.02.2009, 107/181
dated 02.01.2014 & 112/30 dated 7-6-2018)
Category Max. extent of Guarantee where credit facility is
Up to Rs.5 Above Rs.5 Lakhs Between Rs. 50
Lakhs and below Rs. 50 Lakhs and up to Rs.
Lakhs 200 Lakhs
Micro enterprises 85% of 75% of amount in
amount in default max. of
default, Rs. 37.50 Lakhs
Max. Rs.
4.25 Lakhs
75% of amount in
Women entrepreneurs 80% of amount in default
/units located in NE maximum Rs. 40 Lakhs. default subject to a
regions (other than Credit maximum of Rs.
facilities up to Rs.5 Lakhs 150 Lakhs
to micro enterprises)
All other category 75% of amount in default

of borrowers maximum Rs.37.50 Lakhs
The revised guidelines for increase in the extent of guarantee coverage

to 75% and increase in the Standard AGF rate will be applicable for cases
sanctioned on or after 01-04-2018. In accounts where original sanctions are
prior to April 01, 2018 and the enhancement in the limits are on or after this date,
the earlier rate structure and extent of guarantee coverage would continue to
apply even for the enhanced portion.
The Guarantee Cover will commence from the date of payment of

guarantee fee.
 The Guarantee Cover shall run through the entire tenure of the Term
Credit / Composite Credit.

 Where working capital alone is financed, the tenure of guarantee cover
is fixed at 5 years. Guarantee Fee has to be paid afresh for renewed
guarantee cover thereafter for the next block of 5 years for S/L.
 Term loan sanctioned or WC limit sanctioned / renewed in a particular
calendar quarter should be covered latest by the end of next calendar
quarter.
Additional credit facilities in respect of accounts guaranteed under

CGTMSE –
Additional credit facilities (within an aggregate limit of Rs. 200 Lakhs per
borrower) sanctioned to units covered under CGTMSE will also be eligible for cover
under the Scheme, if the unit is otherwise eligible for cover after sanction of
additional limits.
o In such cases, fresh applications have to be submitted for the additional
loan/limit.
oWhile submitting such applications, the CGPAN already allotted by CGTMSE
to that particular borrower at the time of initial guarantee cover should be
mentioned in the field Bank Reference Number after the reference number
of the branch.
Rehabilitation assistance:
For the unit covered under CGTMSE and becoming sick due to factors
beyond the control of management, assistance for rehabilitation extended by the
Bank could also be covered under the scheme provided the overall assistance is
within the credit cap of Rs.200 lakhs.
Guarantee Fee and Annual Service Fee

A. (For Sanctioned Limit on or after 1-4-2018)
 One time Guarantee fee at the specified rate on the outstanding loan amount
instead of guaranteed amount for credit facilities sanctioned / renewed on or
after 1-4-2018 shall be paid upfront to CGTMSE. In case of Cash Credit
Guarantee Fee is payable every 5 years.
 The Annual Guarantee fee would be calculated as on 31st December against
each guarantee amount for the FIRST YEAR and on OUTSTANDING amount
for the remaining tenure of Term Loans / WC Limits sanctioned / renewed
on or after 01-04-2018 as under: (Ref. HO BC No. 112/30 dated 7-6-2018)
Upfront Annual Guarantee Fee (%)
Credit Facility Women, Micro Ent. & Others
units covered in North
East Region
Upto Rs. 5 lakh 1.00 + Risk Premium as per extant guidelines of the
trust
Above Rs.5 lakh to 1.35 + Risk Premium 1.50 + Risk Premium as per
Rs.50 Lakh as per extant extant guidelines of the trust
guidelines of the trust
Above Rs.50 lakh & 1.80 + Risk Premium as per extant guidelines of the
upto Rs.200 Lakh trust
For Loan covered under Retail Trade : 2% + Risk Premium

Additional Risk Premium of 15% will be charged on the applicable rate to the
Bank who exceeds the payout 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.
At present the Risk Premium is 20% of Standard rate and the same may
vary. (Ref. HO BC 110/34 dated 5-5-2016 & HO BC 112/30 dated 7-6-2018)
1. As per latest guidelines of CGTMSE, ASF will be payable up front.
2. The Annual Guarantee Fee for the first year shall be for the broken period from
the date of sanction of the facility till 31st March.
3. The AGF shall be paid on or before 15th April each year. It is to be noted that;
a. The Office of the Development Commissioner (Handicrafts) reimburses
the Guarantee Fee and Annual Service Fee in case of loans sanctioned to
Artisans by way of incentive to Banking Institutions as conveyed vide HO
BC 100/30 dated 1-7-2006. (Ref. HO BC 112/30 dtd. 7-6-2018)
b. For PMEGP borrowers 100% of Annual Guarantee Fee for entire
tenure will be borne by the Bank.( Ref BC No :112/30 dated 07.06.2018)
c. The Bank will bear 100% of AGF for entire tenure for credit limit up to Rs.
100 Lakh only in respect of the borrowers of category of: SC/ST, Women
beneficiaries, Minority, Units in NER area including Sikkim and J&K. Credit
limit above Rs. 100 Lakhs, the AGF will be borne by the borrower for the
entire loan amount.
d. Bank to bear 100% of First year’s AGF for all categories of borrowers in
respect of Credit limits up to Rs. 50 Lakh & the borrowers to bear the full
AGF from 2nd year onwards.
e. Bank to bear 50% of AGF & remaining 50% to be borne by the borrower
for First year for all categories of borrowers and the borrowers to bear
the FULL AGF from 2nd year onwards in case of credit limits above Rs. 50
Lakh to Rs. 100 Lakh.
f. For Credit limit above Rs. 100 Lakh to Rs. 200 Lakh, 100% of AGF for
Entire tenure and entire loan amount will be borne by the borrower.
g. All other borrowers except special category of accounts as mentioned
above will bear AGF from 2nd year onwards.
B. ASF / AGF (Applicable for accounts Sanctioned before 01.01.2013)

Demand for ASF will be generated in the accounts in which guarantees issued up
to March 31, 2013 against the credit facilities sanctioned / approved / renewed by
Bank up to Dec., 2012 (i.e. For Accounts sanctioned before 01-01-2013).
Details of ASF is as under:
Credit Facility ASF in % p.a.

Up to Rs. 5 lakh 0.50
Above Rs. 5 lakh & upto 0.75
C. ASF / AGF (Applicable for accounts Sanctioned on or after

01.01.2013 till 31.03.2018
Composite all-in Guarantee Fee payable on the Sanctioned credit facility
upfront.

The rate of Guarantee Fee is as given below.
Upfront Annual Guarantee Fee
Credit Facility Women, Micro Enterprises, units Others
in North East Region (Inc.
Sikkim)
Up to Rs. 5 lakh 0.75% 1%
Above Rs. 5 lakh to Rs. 100 0.85% 1%
Composite guarantee fee at rate mentioned above payable per year up front.
Risk Premium as applicable and intimated by CGTMSE will be applicable over
and above the rates as mentioned above.
CGTMSE had introduced risk based pricing structure based on NPA

percentage and claim pay-out ratio for charging of annual service fees / annual
guarantee fees. The Risk premium would be charged over and above applicable
Standard Rate (SR) on credit facility sanctioned on or after April 01, 2016 and
cover under Credit Guarantee Scheme.
At present the Risk premium is 20% of Standard Rate and the same may
vary. (Ref. HOBC 110/34 dated 05-05-2016 and 112/30 dated 07-6-2018).
Application for Cover Applications Application for Cover:

CGTMSE module in CBS was introduced as per HO BC No. 107/195 dated
1-2-2014. Branches have to use option A – Application Details, for data entry of
application details for the accounts covered under CGTMSE guarantee cover
immediately after the account is opened in Finacle System. After the verification
by branch official, the application form to be printed using “CGTMSE-R option at
ZO and apply for CGPAN in the CGTMSE web site within stipulated time.
On the date of application, account should be Standard & Regular (not
reported under SMA). Application to be submitted before closure of next Financial
Year. (Ref. HO BC 112/62 dated 25-07-2018).
Invocation of guarantee:
Guarantee in respect of accounts covered under CGTMSE may be invoked if
the following conditions are satisfied-
• The guarantee in respect of the concerned credit facility is in force at the time
of account in turning NPA.
• The lock-in-period of 18 months from either the date of last disbursement of
the loan or the date of payment of the guarantee fee in respect of the credit
facility, whichever is later, has elapsed.
• Claim should be filed within ONE year from date of NPA, if NPA is after lock-in
period or within ONE year of expiry of lock-in period, if NPA is within lock-in
period for accounts sanctioned before 01-01-2013.
• The Branch / Bank can invoke the guarantee in respect of credit facility within
a maximum period of TWO years from date of NPA, if NPA is after lock-in period
or within TWO years of expiry of lock-in period, if NPA is within lock-in period
for accounts sanctioned after 01-01-2013, but turned NPA before 15-03-2018.
• The Branch / Bank can invoke the guarantee in respect of credit facility within
a maximum period of THREE years from date of NPA, if NPA is after lock-in
period or within TWO years of expiry of lock-in period, if NPA is within lock-in
period for accounts turned NPA on or after 15-03-2018, irrespective of sanction
date.
• The amount due and payable in respect of the credit facility has not been paid

and the dues have been classified as Non-Performing Assets. Provided that the
lending institution shall not make or be entitled to make any claim on the Trust
in respect of the said credit facility if the loan in respect of the said credit facility
had occurred owing to actions / decisions taken contrary to or in contravention
of the guidelines issued by the trust.
 The credit facility has been recalled and recovery proceedings have been
initiated under the due process of law. Mere issuance of recall notice under
SARFAESI Act 2002 cannot be construed as initiation of legal proceedings for
purpose of preferment of claim under Credit Guarantee Scheme (CGS). Banks
are advised to take further action as contained in Section13(4)of the above Act
wherein a secured creditor can take recourse to any one or more of the recovery
measures before submitting claims for first instalment of guaranteed amount.
In case the bank is not in a position to take any of the action indicated in Section
13(4) of the aforesaid Act, they may initiate fresh recovery proceeding under
any other applicable law and seek the claim for first instalment from the Trust.
 For the purpose of the scheme, issue of notice under Lok Adalat is sufficient to
prove the legal proceedings have initiated for the cases where the total default
is up to Rs. 20 Lakhs only.
 Initiation of legal proceedings as a precondition for invoking of guarantee shall
be waived for aggregate credit facilities not exceeding Rs.50, 000/- as on NPA
date. The waiver is applicable for those claims lodged on or after 14th March,
2018.
Submission of Claim:
MLIs are requested to furnish information as per Annexure I duly signed by
the authorized official’s not below rank of AGM, at the time of lodgement of claims
together with declaration and understanding in respect of guarantee claims up to
Rs. 20 lakhs and submit Annexure I & II for claims above Rs. 20 lakhs. The
scanned copy of Annexure- I may also be sent to specially created mailbox viz.
claiminfo@cgtmse.in. Please also note that all the columns of Annexure I would
need to be compulsorily filled although the relevant information might have
already given in the claim application form. The information submitted in
Annexure I would be treated as correct in case of any discrepancy in online claim
application form. (BC No: 107/169 dtd.29.11.2013). Please also refer to HO BC
112/30 dated 7-6-2018 for detailed procedure & FAQs.
Claim Settlement
Amount in default is defined as the outstanding as on date of NPA or the
date of claim whichever is lower subject to guaranteed amount. In case of CC
account interest is also included in the amount in default. In case of Term loan
only principal is taken in the amount in default (interest is excluded).
• GTMSE shall pay 75% of the admissible amount on preferring of eligible claim,
within 30 days, subject to claim being otherwise found in order and complete
in all respects. If 75% of the admissible amount is not paid within 30 days,
CGTMSE shall pay interest on the eligible claim amount at the prevailing Bank
Rate for the period of delay beyond 30 days.
• The balance 25% of the admissible amount will be paid by CGTMSE on
conclusion of recovery proceedings.
• In the event of default, the branches shall exercise the rights, if any, to take
over the assets of the borrowers and the amount/s realized, if any, from the
sale of such assets or otherwise shall first be remitted in full to CGTMSE after

adjusting the cost incurred by the Bank for recovery of the amount. CGTMSE
shall appropriate the same towards the pending service fee, penal interest and
other charges due to CGTMSE, if any, in respect of the concerned credit facility.
Only thereafter claim for the remaining 25% of the guaranteed amount may be
made.
• On a claim being paid, CGTMSE shall be deemed to have been discharged from
all its liabilities on account of the guarantee in force in respect of the concerned
credit.
• The Bank shall be liable to refund the claim released by the CGTMSE together
with penal interest at the rate of 4% above the prevailing Bank Rate, if such a
recall is made by the Trust in the event of serious deficiencies having listed in
the matter of appraisal / renewal / follow-up / conduct of the credit facility or
where lodgement of the claim was more than once or where there existed
suppression of any material information on part of the lending institution for
the settlement of claims. Bank shall pay such penal interest, when demanded
by the Trust, from the date of initial release of the claim by the trust to the
date of refund of the claim.
• Finally, loss will be shared by CGTMSE and Bank in the proportion of 75% /
80% / 85% and 25% / 20% / 15% respectively i.e. based on extent of
guarantee cover obtained.
• CGTMSE has started making all claims / refund payments through RTGS / NEFT
system w.e.f. October 15, 2012.
Claim received from CGTMSE:

Such amount should be kept in Sundry Credit “SOL-ID SUNCR8 01”
especially created for this purpose and not to credit in Loan Account. At the
same time the claim received has to be entered in database in CCIS, Option A –
Guarantee Claim Settled amount to avoid wrong provision. After the recovery
efforts are exhausted and claim finally settled, the amount may be appropriated
to the borrowal account. (BC No: 107/117 dtd. 27.09.2013)
Introduction of CGTMSE Module in Finacle (BC No: 107/195 dtd.

01.02.2014) w.e.f. 01.02.2014-
The accounts which are covered under CGTMSE are identified as per the
guarantee code (i.e. “7”) entered by branches in ACM option “V” based on the
eligibility as per extant guidelines issued by our Bank.
• Coverage – Standard loan and Cash Credit account (LAA & CCA)
• Application Entry – Option ‘A’
• Updation of CGPAN – Option ‘U’
• NPA Reporting - Option ‘N’
• Submission of Claim – Option ‘C’
• Settlement of Claim – Option ‘S’
• Upgradation/Reschedule – Option ‘R’
• Restructured – Option ‘RS’
• Reporting Closed Account – Option ‘CL’

Available Reports – In MISRPT+> CGTMSE Set – ID – Branch Sol ID
(Ref BC No.107/181 dated 02.01.2014, BC No.107/195 dated 01.02.2014, HO BC
112/30 dated 7-6-2018). Following reports are available:
I. CGTMSE01 – Consolidated report for A – Application Details
II. CGTMSE02 – Consolidated report for U – Updation of CGPAN
III. CGTMSE03 – Consolidated report for N – NPA Reporting
IV. CGTMSE04 – Consolidated report for C – NPA Claim
V. CGTMSE05 – Consolidated report for R- Reschedule
VI. CGTMSE06 – Consolidated report for CL – Closed Accounts
VII. CGTMSE07 – Report on accounts opened but application not
forwarded to ZO / CGTMSE
VIII. CGTMSE08 – Report on application forwarded to CGTMSE but CGPAN
not yet received
IX. CGTMSE09 – Report on accounts slipped to NPA but reporting not
done
X. CGTMSE10 – Report on accounts where NPA reporting has been done
but claims not lodged
XI. CGTMSE11 – Report for accounts where NPA reporting has been
done and lock in period not completed
XII. CGTMSE12 – Report will be generated where guarantee code is “7”
and CGPAN is blank
XIII. CGTMSE13 – Report of expiry of guarantee cover
XIV. CGTMSE14 – Report on accounts settled under CGTMSE
XV. CGTMSE15 – Details of account which are not entered in CGTMSE
XVI. CGTMSE16 –Claim reported for CGTMSE on web portal of CGTMSE
XVII. CGTMSE17 – NPA reported for CGTMSE on web portal of CGTMSE.
Note:
1. ROI Concession in CGTMSE covered accounts will be applicable. Hybrid
security covered accounts will not be eligible for interest concession. (HO
BC 112/66 dated 03-08-2018),
2. CGTSME guarantee cover limit of Rs. 200 Lakhs is now revised from one
time sanctioned limit to incremental credit facilities subject to max. cap of
Rs. 2 Crores. E.g. amount outstanding (not the San. Limit) in Term
loan shall be considered as CGTSME cover on the date of consideration of
fresh coverage. (HOBC 131/184 – 08-01-2020).
3. Waiver of CGTMSE coverage in eligible accounts to be approved by ZLCC,
quoting valid reasons and where 100% collateral is available. NBGLCC to
approve waiver of CGTMSE coverage with FACR being 1.00 (For calculation
of FACR, only immovable properties by way of land & building is to be
considered. Other than land & building no other forms of securities will be
considered for FACR.) Modification vide Circular Letter No. 2019-20/113
dtd. 03-02-2020. High risk accounts should be discouraged for waiver of
CGTMSE cover. ( HO BC 111/77 dated 01.08.2017)
CGFSSD - CREDIT GUARANTEE FUND SCHEME FOR SKILL DEVELOPMENT

(HO BC 111/76 dated 31-7-2017)
The cover under this is mandatory for all loans granted under PM Kaushal
Rin Yojana (Skill Loans). The Fund is being operated by NCGTC – National Credit
Guarantee Trust Company, a wholly GOI owned company.

Salient features of CGFSSD are as under:
1. Date of Notification : 20-11-2015;
2. Coverage : New loans sanctioned on or after 15-07-2016 without any
collateral security / third party guarantee;
3. Loan Limit: Min. Rs. 5000/- and Max. 150,000/-;
4. Interest Rate: Max. interest rate not to exceed 1.50% over Base Rate /
MCLR of the Bank;
5. Guarantee Cover : 75% of the amount in default, which will be settled on
invocation of the guarantee, in one go, after the Bank submit a certificate
stating to the effect that all avenues of recovering the amount in default
have been exhausted; that there is no further scope for recovering the
default amount and that the claim is found in order and complete in all
respects;
6. Guarantee Fee : 0.50% p.a. of the outstanding portfolio balance of Skill
Loans to be borne by the Bank;
7. Mode of payment of Guarantee Fee: Online through a payment Gateway.
Please refer to HO BC 111/76 dated 31-7-2017 for detailed
information
National Skill Development Corporation (NSDC) - Prime Minister’ Kaushal

Vikas Yojana Programme (PMKVY) - (BC 109/175 dated. 11.12.2015 and
BC 109/224 dtd. 10.03.2016)
• NSDC was incorporated as a Sec 25 company under Companies Act (1956)
(NEW Sec 8) was initially set up under the Prime Minister’s National Council
on Skill Development with the primary mandate of enhancing and
supporting Private Sector initiatives for Skill Development in India. At
present, NSDC functions under the aegis of the Ministry of Skill
Development & Entrepreneurship (‘MSDE’). In order to fulfil its objectives,
it has both funding and non-funding proposals to further its objectives.
• NSDC signed a MOU with BOI on 30.12.2013 and renewed on 03.08.2015
for enabling opening of bank accounts of candidates. BOI launched PMKVY
on line portal for opening of accounts of students/Trainees under the
scheme. Existing accounts holders of BOI can also be covered under the
scheme. URL is
http://ola.bankofindia.com/PMKVY/WPPages/TrainingPartner.aspx
▪ On line a/c opening form is available also on our website Under “Apply &
track Online Option - PMKVY Scheme
▪ Training partner should have a corporate CD a/c with us
▪ Should sign Letter cum undertaking & Standard Operating Procedure duly
signed along with KYC documents
▪ Branch on receipt of the same should confirm the same by email to
boi.pmkvy@bankofindia.co.in
▪ HO on receipt of above from branch will create Unique ID/Code for
Training partner for providing access to online portal for filling up a/c
opening form.
▪ If student/trainee is in another location other than parent branch a
manual a/c to be opened under scheme 105/106 with same Cust ID
charge code as NSDC for all accounts under this scheme.

▪ For minor account to be opened with parent/natural guardian on E or
S basis
▪ After data entry, student to visit branch with A/c opening form, Debit
Mandate Letter, Aadhar card etc.
▪ The documents to be signed before officials at branch.
▪ Branch to check Aadhar and amount in Mandate and A/c opening form
are same& KYC guidelines
▪ Funds received from NSDC will be credited to trainees account from
Nodal Branch (CGO Complex Br) Restriction should be put for
withdrawal in the account
▪ Once funds are credited to trainee’s a/c it should be debited and
training partners account to be credited. All fund transfer will be
handled centrally by CGO complex br.
▪ A charge of 1.50% (Min Rs.150) + service tax to be recovered from
amount to be paid to training partners.
▪ RuPay card with Rs. 1 lakh personal accident Insurance cover to be
issued.
MSME Classification:
Direct Finance
1 Loans for Food & Agro processing - Agriculture
2 Loans to dealers/sellers of fertilizers, pesticides, seeds, cattle feed, poultry
feed, agricultural implements - MSME (Services)
3 All loans sanctioned to KVIC sector - MSME Micro
4 Export credit to MSE units for export of goods/services produced/rendered by
them – MSME
Indirect Finance
1 Loans to persons involved in assisting the decentralized sector in supply of
inputs to and marketing of produce of artisans, village and cottage industries.
2 Loans to cooperatives of producers in the decentralized sector (artisans, village
& cottage industries) - MSME
3 Loans sanctioned by Banks to MFIs (Micro Finance Institutions) for on lending
to MSE sector - MSME
UDYAMIMITRA PORTAL BY SIDBI

A universal portal for financial and non-financial sector is designed by SIDBI
at https://www.udyamimitra.in where support is being given for availing loans in
easy steps for Business Enterprises and MSMEs, New unit or Existing unit. This
portal is helpful in respect of fulfilling all types of needs under Manufacturing /
Services / Trading (Stand-Up India & Mudra). This portal supports providing Loan
applications / check lists for MUDRA Loans – Shishu, Kishore as well as Tarun
apart from Stand-Up India Loans and other MSME Loans to the needy
entrepreneurs.
Online application can be submitted by the beneficiaries on this portal.
The portal is extending support to the enterprises for:
a. Business loan
b. Project / Working Capital loan
c. Modernisation

d. Expansion
e. Diversification
The entrepreneurs can use the portal for:
a. Application filling
b. Project Report preparation
c. Financial Training
d. Margin money / subsidy
e. Work shed
f. Vocational skilling
g. Entrepreneur Development Programme
h. Mentoring
DEBT RESTRUCTURING MECHANISM & REHABILITATION POLICY FOR

SMALL & MEDIUM ENTERPRISES (SMEs) (HOBC 110/69 dtd. 11-7-2016
and HO BC 111/143 dated 17.06.2017):
Objective:
To ensure timely and transparent mechanism for restructuring the debts of
viable SMEs facing internal/external problems, outside the purview of BIFR, DRT,
and other legal proceedings. Rehabilitating viable sick SMEs to minimize the losses
to the creditors (the Bank) and other stakeholders through an orderly, coordinated
and pre-emptive restructuring program or rehabilitation package.
Eligibility Criteria:
 Standard & Substandard or doubtful which are Viable or Potentially Viable
units of corporate & Non corporate SMEs with outstanding of FB & NFB up-
to Rs.10 Crores under multiple/consortium banking arrangement..
 BIFR cases and cases where operating agencies are appointed.
 Accounts involving wilful defaults, fraud, malfeasance and Loss assets will
not be eligible.
 Restructuring may be undertaken where funds diverted earlier but brought
back into the business and/or there is change of management and/or where
the diversion is intra company, Diversion in intra-/ inter-company taken
place are eligible provided it is rectified in reasonable time.
Viability Criteria
Viability and the ability to service the debt after restructuring shall be the
important criteria for determining eligible cases i.e. servicing the debt including
restructured debt during concession period (maximum 7 yrs.), and also after
concession package is over servicing debt without help of any more concessions.
The repayment period for restructured (past) debts should not exceed 10 years
from the date of implementation of the package. Average DSCR should be 1.25:1
over the restructuring period with annual DSCR not less than 1:1.
Time:
Restructuring/Rehabilitation package should be done and implemented within a
maximum period of 120 days from the date of submission of the borrower’s
request.
Repeated Restructuring:
Normally restructuring is done for the first time. However further
restructuring may be necessitated in some cases of genuine difficulties. However,

the special dispensation for asset classification enumerated hereinafter in
paragraph (12) would be available only when the restructuring is done for
the first time.
Holding On Operations:
While identifying and implementing the restructuring/rehabilitation
package, “holding on operation” may be considered for a period of 6 months
(which can be further approved for six months by the normal delegate, subject to
reporting to Sanctioning authority. In exceptional cases with proper justification,
it may be considered beyond 12 months by the respective regular Sanctioning
Authority, minimum EDLCC) with a cut back of Minimum 5% towards reduction in
overdues and to allow operations within existing outstanding and exposure level.
Cutback below 5%, it would be considered by EDLCC & above only.
Holding on Operations essentially implies:
 Continuous operations in the account, like opening fresh LCs to the extent
of reduction in devolvement, even if devolvement is not fully cleared,
Roll over of LC opened by the Bank, allowing operations in the cash credit
account despite interest/forced debits not being cleared, fall in drawing
power etc.
 Renewal of BGs (not fresh guarantee) should also be allowed subject to
recovery of normal charges and availability of margin as per sanction terms.
 Holding on Operations within the overall Sanctioned Limits may be
permitted by the level of Branch Manager of chief manager level and above
subject to report to the next higher authority within 10 days.
ONE TIME restructuring of existing loans to MSMEs: (Ref. HO BC 112/150

dated 15-1-2019).
In continuation to RBI communication, our Bank has permitted one - time
restructuring of existing loans to MSMEs classified as Standard without a
downgrade in the asset classification, with a view to facilitate meaningful
restructuring of MSME accounts. Salient features of this One Time Policy
Guidelines are as under:
a. The aggregate exposure, including non-fund based facilities of banks &
NBFCs to the borrower does not exceed Rs. 25.00 Crore as on 01-01-
2019;
b. The borrower’s account is in default but is a “Standard Asset” as on 01-
01-2019 and continues to be classified as a “Standard Asset” till be date
of implementation of the restructuring;
c. The borrowing entity shall be GST-registered on the date of
implementation of the restructuring. However, this condition will not be
applicable to MSMEs that are exempted from GST-registration’
d. The restructuring of the borrower account shall be implemented on or
before March 31, 2020;
e. The policy guidelines is annexed as Annexure I of the HO BC 112/150
dated 15-1-2019;
f. A Process Flow for the restructuring process is annexed as Annexure II of
the HO BC 112/150 dated 15-1-2019;
g. A format of letter to be sent to all eligible borrowers is also annexed as
Annexure III of the HO BC 112/150 dated 15-1-2019;
h. Restructuring should be need based and can be considered only in genuine
cases wherein the viability is established;

i. It should be ensured that processing of applications be non-discriminatory
on first come first serve basis to the extent possible;
j. The process of restructuring is to be completed within the stipulated time
frame after receiving the consent from the borrower such that the account
remains standard as on date of implementation;
k. Holding on operations is also allowed as per the policy. However the
facility should be sanctioned on a selective basis and as per extant
guidelines on Holding on Operation. It should be approved by SZLCC &
above as per delegation on Holding on operations, in all cases;
l. Units not meeting the eligibility as per the instant guidelines may be
considered for restructuring as per Framework for Revival and
Rehabilitation circulated vide HO BC 110/69 dated 11-7-2016 or
Restructuring guidelines circulated vide HO BC 111/043 dated 17-6-2017
or any superseding circulars issued from time to time on the subject
matter. However, branches should continue with its efforts of recovery in
stressed accounts;
m. For restructuring of all Standard Accounts, a new menu in Finacle is being
created and the same will be intimated in due course. For restructuring of
existing NPA Accounts, branches may use the existing menu available in
the Finacle. Such NPA Accounts even though restructured shall remain
NPA requiring provisions as per their aging on a higher rate;
n. This policy is a ONE TIME measure applicable for all SME units (which are
in default as on 01-01-2019) and meeting other eligibility criterion as per
the policy. The last date of implementation of restructuring is 31-03-2020
and as such the policy guidelines will cease after 31-03-2020.
o. All Standard accounts restructured under the provisions will not be
downgraded and will continue to be classified as Standard.
Provisioning Norms:
i) A provision of 5% in addition to the provisions already held, shall be made
in respect of accounts restructured under these instructions. Banks will, however,
have the option of reversing such provisions at the end of the specified period,
subject to the account demonstrating satisfactory performance during the
specified period.
ii) Post-restructuring, NPA classification of these accounts shall be as per
the extant IRAC norms.
ONE TIME restructuring of existing loans to MSMEs: (Ref. HO BC 113/228

dated 04-03-2020).
The RBI extended date for restructuring MSME Accounts as detailed in HO
BC 112/150 dated 15-1-2019. In continuation to RBI communication
(DOR.NO.BP.BC.34/21.04.048/2019-20 dat3ed 11-2-2020), our Bank has
extended one - time restructuring of existing loans to MSMEs classified as
Standard without a downgrade in the asset classification, with a view to facilitate
meaningful restructuring of MSME accounts. Salient features of this One Time
Policy Guidelines are as under:
p. The aggregate exposure, including non-fund based facilities of banks &
NBFCs to the borrower does not exceed Rs. 25.00 Crore as on 01-01-
2020;
q. The borrower’s account is in default but is a “Standard Asset” as on 01-
01-2020 and continues to be classified as a “Standard Asset” till be date
of implementation of the restructuring;

r. The borrowing entity shall be GST-registered on the date of
implementation of the restructuring. However, this condition will not be
applicable to MSMEs that are exempted from GST-registration. Basis of
this exemption is as declared on the date 01-01-2020.
s. The restructuring of the borrower account shall be implemented on or
before December 31st, 2020;
t. The policy guidelines is annexed as Annexure I of the HO BC 112/150
dated 15-1-2019;
u. A Process Flow for the restructuring process is annexed as Annexure II of
the HO BC 112/150 dated 15-1-2019;
v. A format of letter to be sent to all eligible borrowers is also annexed as
Annexure III of the HO BC 112/150 dated 15-1-2019;
w. Restructuring should be need based and can be considered only in genuine
cases wherein the viability is established;
x. It should be ensured that processing of applications be non-discriminatory
on first come first serve basis to the extent possible;
y. The process of restructuring is to be completed within the stipulated time
frame after receiving the consent from the borrower such that the account
remains standard as on date of implementation;
z. Holding on operations is also allowed as per the policy. However the
facility should be sanctioned on a selective basis and as per extant
guidelines on Holding on Operation. It should be approved by SZLCC &
above as per delegation on Holding on operations, in all cases;
aa. Units not meeting the eligibility as per the instant guidelines may be
considered for restructuring as per Framework for Revival and
Rehabilitation circulated vide HO BC 110/69 dated 11-7-2016 or
Restructuring guidelines circulated vide HO BC 111/043 dated 17-6-2017
or any superseding circulars issued from time to time on the subject
matter. However, branches should continue with its efforts of recovery in
stressed accounts;
bb. For restructuring of all Standard Accounts, LNRES menu in Finacle is
available and the Code will be 19. For restructuring of existing NPA
Accounts, branches may use the existing menu available in the Finacle.
Such NPA Accounts even though restructured shall remain NPA requiring
provisions as per their aging on a higher rate;
cc. This policy is a ONE TIME measure applicable for all SME units (which are
in default as on 01-01-2020) and meeting other eligibility criterion as per
the policy. The last date of implementation of restructuring is 31-12-2020
and as such the policy guidelines will cease after 31-12-2020.
dd. All Standard accounts restructured under the provisions will not be
downgraded and will continue to be classified as Standard.
ee. The accounts overdue as on 01-01-2019 can also be restructured
under this scheme.
DIFFERENTIAL RATE OF INTEREST (DRI) SCHEME:

DRI Scheme was introduced by Govt. of India in March 1972 to provide
finance at concessional rates of interest to low income groups of people. The
scheme is operative throughout the country. Banks should lend a minimum of 1%
of the aggregate advances of the previous year under this scheme. 40% of this
credit should flow to borrowers belonging to Scheduled Castes/Tribes. A
concessional rate of interest at 4.00% p.a. should be charged. Persons who satisfy
the income (Rs. 24000/- per annum in urban or semi-urban areas or Rs. 18000/-

p.a. in rural areas) and land holdings (exceed 1 acre in the case of irrigated land
and 2.5 acres in the case of non-irrigated land) criteria and fall in the category
indicated below will be eligible for the benefits of the scheme:
i. SC, ST and others engaged on a very modest scale, in agricultural
activities.
ii. People who themselves collect or do elementary processing of forest
products and people who themselves collect fodder in difficult areas and
sell them to farmers or traders.
iii. People physically engaged on a modest scale in the fields of cottage and
rural industries and vocations.
iv. Indigent students of merit going in for higher education who do not get
scholarships/maintenance grants from Government or educational
authorities.
v. Physically handicapped persons pursuing a gainful occupation where some
durable equipment and/or continuous supply of raw materials is useful.
vi. Institutions for physically handicapped persons pursuing gainful
occupations where some durable equipment and/or continuous supply
of raw materials is useful.
vii. Orphanages and women’s homes where saleable goods are made for which
no adequate and dependable source of finance exists.
viii. These limits are not applicable to borrowers in (f) and (g) categories).
Members of SC/ST are eligible for the loans irrespective of their land
holding provided they satisfy the other criteria”.
ix. Loan under the scheme should not exceed Rs. 15000/- for business
purpose and Rs. 20000/- for a housing. Margin money should not be
insisted upon. Rate of interest will be uniform. The repayment of
principal amount under term loan shall not exceed 5 years, including
a grace period not exceeding 2 years which should be worked out in
each case having regard to the nature of facility of the borrower and
economics of the scheme. The assets purchased with the loan may be
hypothecated to the Bank and in appropriate cases, group guarantees
may be accepted. Insurance waived. If considered necessary, premium
to be debited to branch P/L.
ARTISAN CREDIT CARD (ACC)

To provide adequate and timely assistance to artisans to meet their credit
requirements- both investment needs as well as working capital. Investment
loans for purchase of tools/equipments by way of Demand Loan/term Loan with
appropriate repayment schedule. The scheme would be applicable both in rural
and urban areas.
Eligibility
 All existing artisan borrowers of the bank enjoying credit limits up to Rs. 2 Lakh
and having satisfactory dealing with the bank.
 All artisans involved in production/manufacturing process.
 Preference would be given to artisans registered with Development
Commissioner (Handicrafts).
 Thrust in financing on cluster of artisans and artisans who have joined to form
Self-Help Groups (SHGs)
 Beneficiaries of other Government Sponsored Schemes not eligible.

Issue of Cards
A photo Identity Card with sanctioned limit, validity period of credit facility
along-with a passbook incorporating Name, Address, Borrowing Limit, Validity
Period, etc., will be issued.
Credit Limit
Credit limit to be fixed based on assessment of Working Capital
requirements as well as cost of tools and equipments required for carrying out
manufacturing process. For evaluating working capital requirement 25% of
anticipated turnover will be taken into consideration.
Maximum Limit: Rs. 2 Lakh per borrower
Security: Hypothecation of Assets created out of Bank Finance.
Margin
Upto Rs. 25,000/- : NIL
Above Rs.25, 000/- : 20% to 25%
Rate of Interest : As stipulated from time to time.
Validity/Renewal of Limits
Limit valid for 3 years, subject to annual review. Annual review without
asking financial statement from the borrower but based on assessment of
performance by the Bank’s Field officials made in course of field inspections.
NATIONAL EQUITY FUND (NEF) SCHEME

To provide support to entrepreneurs for setting up new projects in tiny/SSI
sector, for undertaking expansion, modernisation technology up gradation and
diversification by existing tiny, SSI and service enterprises and for rehabilitation
of viable sick units in SSI NEF helps the SSI in strengthening their equity base and
thereby improving the acceptability for term financing by banks.
ELIGIBILITY
 NEW PROJECTS IN TINY AND SSI
 EXISTING TINY AND SSI
 ALL NEW AND EXISTING SERVICE ENTERPRISES- In case of service enterprises
the assistance under NEF would be made available only for acquisition of fixed
assets
 Sick units under Micro & Small enterprises including service enterprises which
are potentially viable.
 Project which avail of any margin money or seed capital assistance under the
scheme of central/state govt. is not eligible for assistance
 Availability or refinance in respect of term loan for the project from SIDBI is a
pre requisite for extending equity type assistance under the scheme.
PROJECT COST
Project cost should not exceed Rs.50 lakhs in case of new projects. In the
case of existing units and service enterprises, the total outlay including the
proposed outlay on expansion / modernisation / technology up-gradation /
diversification or rehabilitation should not exceed Rs. 50 lakhs.

PROMOTER’S CONTRIBUTION
 Minimum 10% of project cost
 Debt equity ratio: 65.35 (3:1) However a flexible approach may be
followed in the case of rehabilitation proposals.
NATURE OF ASSISTANCE: Equity type of assistance in the form of soft loan.
AMOUNT OF ASSISTANCE:
To meet the gap in equity as per prescribed debt equity norm after taking into
account promoters’ contribution subject to a maximum of 25% of project cost or
Rs. l0 Lakh project, whichever is lower.
INTEREST:
No interest is charged on soft loan component except service charges of 5% p.a.
SECURITY:
No security including collaterals is to be insisted upon for the soft loan.
Cluster Based Finance (HO BC 112/75 dtd. 27-8-2019)

Objective:
To frame cluster based schemes for providing assistance to a pool of borrowers
engaged in common business activity in a particular geographical area.
Identification of Cluster:
To be identified as per potential available in the cluster.
 Minimum 30 units should be active within the cluster.
 A Cluster may be defined as a geographical area within a range of say 200
km to 250 km.
 All the units in the cluster should have proper backward/forward
integration/linkages
 Cluster identified by UNIDO ,Ministry of MSME
Purpose of Finance:
For meeting the Fund Based (Working Capital / Term Loan) and Non fund based
(BG/LC) Requirements of units/borrowers in a particular cluster.
Nature of Facility: Working Capital, Term Loan and NFB (LC/BG) limits
Quantum of Finance:
The quantum of finance to an individual borrower in a specific cluster should be
need based and to be assessed as per requirement of business.
Eligibility criterion for individual borrowers under cluster:

 All business entities engaged in manufacturing /services and should be
classified under MSME, as per MSMED act.
 All business entities should have valid GST Registration, wherever it is
applicable.

Security criterion for individual borrowers:
CGTMSE covered accounts:
 CGTMSE coverage should be obtained in all eligible accounts.
 Coverage under Hybrid Security Product of CGTMSE to be encouraged.

Non CGTMSE Covered accounts:
 For Working Capital :Minimum CCR: 0.65
 For Term Loan /Composite Loan: Minimum FACR:1.00
CREDIT FACILITY TO VILLAGE LEVEL ENTERPRENEURS (VLEs)

(HO BC 111\120 Dated 23-10-2017)
Purpose : To provide credit facilities to VLEs acquire the infrastructure for
providing e-Services
Eligibility Criteria: Registered VLEs with CSC-SPV
Type of Facility: Fund Based – Term Loan
Amount of facility: Max. Rs. 1, 60,000/-
Margin: 15% of the Project Cost
Rate of Interest: As applicable to Micro Enterprises under MSME from time to
time
Period of Credit: Door to door tenor 36 months
Security:
Primary: Hypothecation of Equipment financed.
Collateral: NIL. Branch to obtain CGFMU cover of NCGTC in all eligible cases
Penal Rate: 2% over the contracted Rate of Interest
Disbursement: Disbursement through Pay order / NEFT / RTGS directly to
Suppliers of the equipment. Branch to follow extant guidelines in this regards.
Repayment: Maximum 36 EMIs with NO MORATORIUM
Insurance: To be insured for the full market value for all the risks as per extant
guidelines of the bank, with bank’s hypothecation clause.
Inspection: Quarterly in normal case and immediately after default alert.
Security documents: As prescribed by the Bank for the scheme.
Flow chart:
 On the basis of specific Bank branch chosen by the VLE, CSC will issue a
forwarding letter addressed to the Bank branch with all the details of the
VLE along with all necessary documents and the estimated commission to
be earned by the VLE per month based on past earning.
 On proper scrutiny of the documents and on the basis of estimated earning
of the VLE, branch will sanction loan to the VLE for purchase of equipment.
 On sanction of loan to VLE, branch will advise CSC the details of loan
account number, loan amount, EMI amount, IFSC code and date of
commencement of instalment.
 The forwarding letter issued by the CSC will also contain an undertaking
stating that on intimation by the Branch, it will deduct the monthly
instalment from the Escrow account of the VLE and remit the same as per
details to be provided by the branch.
 In the event of default in payment of EMI, on intimation from the branch,
CSC will facilitate recovery in the account on best effort basis and
discontinue / cancel the membership of the VLE immediately.
 CSC will maintain ESCROW account of each VLE from which the EMI will be
paid to BOI for crediting made loan amount of VLEs.
Other points:
1. Dealing branches would carry KYC, CIBIL enquiry and other due diligence
of individual VLEs as per Bank’s extant guidelines.
2. In the event of any change in trade terms with the VLEs, the same should
be intimated to the bank immediately by CSC.

3. Credit facility would be sanctioned subject to the condition that the
applicant would be eligible for finance under the Bank’s extant instructions
/ guidelines.
4. Default will take place if the VLEs fail to repay the EMI on the due date.
Trade Receivables Discounting System (TReDS): (HO BC 110/170

dated 9-1-2018)
TReDS is an initiative of RBI to facilitate MSME receivable payments from
Corporates.
Objective:
To address the critical needs of MSMEs i.e. the twin issues of promptly en-
cashing receivables and eliminating credit risk. TReDS platform of RXIL is expected
to be a catalyst in the growth of MEMEs by bringing in transparency in the business
Eco-system.
TReDS platform enables discounting of invoices / Bills of Exchange of MEME
sellers against large corporates, including Govt. Dept. And PSUs, through an
auction mechanism to ensure prompt realization of trade receivables at
competitive market rates.
TReDS is the first attempt in India to introduce factoring without recourse
to the seller and will help MSME Sellers, not only in quick realization of receivables
but also efficient price discovery.
Eligible entities who can participate in TReDS platform:

The TReDS will provide the platform to bring different participants together
for facilitating uploading, accepting, discounting, trading and settlement of the
invoices / bills of MSMEs. Different participants would be as under:
MSME Suppliers (defines as per MSMED Act, 2006): Supplying goods or
services to Buyers
Buyers: Corporates / Govt. Dept. / PSUs & Others
Financiers: Banks / NBFC Factors.
Who can initiate TReDS Transactions?

Both, the seller and the buyer can initiate TReDS transactions for financing
of trade receivables of MSME Sellers.
When the MSME Seller uploads the invoices and bears the interest cost, it
is termed as “Factoring” i.e. Single Seller – Multiple Buyers.
In case of “Reverse Factoring” i.e. Single Buyer – Multiple Sellers, the Buyer
initiates the transaction and the interest cost is also borne by the Buyer.
On boarding on TReDS Platform:

Bank has on boarded the TReDS platform floated by Receivables Exchange
of India Ltd. (RXIL) and all the customers willing to avail factoring facility from the
bank can upload their invoices on TReDS platform of RXIL.
Key benefits of TReDS to various parties are as under:

All participants:
 Automated transparent platform
 Paperless and hassle free
 Cost Reduction
Benefits to Sellers:
 Competitive price discovery

 Without recourse to Seller
 MSMEs have the right to choose the best bid
 Payment received on T+1 on successful auction
 No follow-up with the buyers for payment
 Not dependent on single financier
 Enhanced productivity and efficient liquidity management
 Widening the financing options
Benefits to Buyers:
 Compliant with MSMED Act, 2006
 Can negotiate better terms with MSME Vendors
 Lower cost of inputs for Buyers
 Lower administrative cost
 Can avail extended credit period
 Competitive Price Discovery
 Efficient cash-flow management
 Ensure that their vendors are not strapped for cash / working capital.
Rate of interest: RoI is linked to 1M/3M/6M MCLR.
CONTACTLESS MSME LOANS: (HO BC 112/104 dated 20-10-2018)

Contactless Platform is an online digital loan management platform for
MSME borrowers which entails In - Principle sanction of loan without physical
contact within 59 minutes.
The loans are undertaken without physically contacting the borrower till
sanction or disbursement stage. The solution uses algorithms and techniques to
read complex balance sheet, IT returns and bank statements in a very short span
of time (within 25 to 30 min).The module captures the basic details of the
applicant from documents which are available, through smart analytics.
The Contactless platform is the only platform with majority stake of public
sector entities (Public Sector Banks & SIDB1), it is the only platform that has a
Bankers interface which covers Branch level integrations. The platform has
Integrations with multiple agencies for GST, ITR, Bank Statement analyser, Fraud
Check, Credit Information Bureau check, CGTMSE among others.
Our Bank has on boarded the platform and loan to our proponents
/borrowers can be sanctioned till the in principle stage through the platform. The
quantum of loan on contactless platform will range from Rs 10 lakhs to Rs 100
lakhs. The Platform can also be utilized for renewal of limits in future.
GUIDELINES FOR CONTACTLESS LOAN:
A. GENERAL GUIDELINES:
Range of Loan: Min. Rs. 10.00 lakhs, Max: Rs. 100.00 lakhs
Constitution of Borrowers: Proprietorship, Partnership & Private Ltd. Co.
Eligible Borrowers:
i) GST Registered should have valid GST registration no.
ii) Income Tax Compliant should have valid ITR (ITR IV filing will not be
accepted by the portal)

Category of Borrowers:
i) New to Business
ii) Borrowers with existing Business
B. GUIDELINES ON LENDING PARAMETERS:

Financial Parameters
i. Debt Equity Ratio : Maximum 5
ii. Current Ratio : Minimum 1
iii. ISCR : Minimum 1.20
iv. DSCR : Minimum 1.25
v. Turnover trend : Showing an increasing trend
vi. Profitability : Showing an increasing trend
Other Parameters
i) Commercial CIBIL: Satisfactory
ii) Consumer CIBIL: Satisfactory (in case of proprietor, partner, and
director)
iii) No. of Cheque bounced: It is desirable that no. of cheque bounces should
not exceed six in last six months and if it exceeds six proper justification
should be recorded in the proposal.
Repayment
i) Working Capital: 01 Year (Renewal every year)
ii) Term Loan: Maximum 10 years
Margin: Min. 20% for both Working Capital & Term Loan.
Risk Rating: For Contactless Platform a new Credit Rating model has been
devised. The Rating will run on the contactless platform and the final rating will
be available in the CAM report.
Entry Level Norms: 5 (Total Score of risk rating: 64 & Entry level Score: 31)
Rate of Interest: ROI will be linked to 01 Yr. MCLR +BSS +CRP (CRP will be
mapped with credit rating of the borrower on the contactless portal, as detailed
in HO BC 112/104 dated 20-10-2018).
Processing Fees: 0.50% of the loan amount. Other Charges such as

Documentation, Inspection, and Mortgage if applicable should be recovered as per
policy.
C. OPERATIONAL GUIDELINES:
Due Diligence:
Branch to carry out due diligence of the borrower in all aspects as per Bank's
guidelines:
1. The CAM report contain basic validations of borrower including GST, ITR,
ABS etc.
2. However branches should scrutinize the documents and ensure
correctness of the same.
3. In case of Companies ROC Search report should be obtained before
Sanction.

4. Since detailed CIBIL report is available in the CAM report, separate CIBIL
report need not to be generated.
5. Though analysis of balance sheet is available in the CAM report, branches
are required to obtain audited balance sheet and undertake the analysis
and incorporate the same in the credit appraisal note.
6. Branches should carry out physical inspection and other due diligence of
the borrower as per Bank's policy.
Principal Security:
Hypothecation of Assets created out of Bank's finance.
Collateral Security / CGTMSE coverage

i) Collateral Security, if offered by the borrower during the in principle stage
should be accepted after detailed technical, valuation and acceptability
analysis.
ii) CGTMSE coverage may also be obtained, if agreed upon by the borrower
during in principal stage.
Documentation: As per Bank's norms
Delegation: As per Delegation of Power issued by RMD.
Delegation for approving Deviation in Financial Parameters:

In case of deviation in financial parameters from as prescribed under credit policy,
guidelines as per HOBC 109/69 dated 01/07/2015 or any circular issued in future
on subject matter should invariably be followed.*
TAT: Should not exceed 08 working days from the date of in principal sanction.
Sanction or Rejection is to be intimated within stipulated time frame.
Free Code: Branch to incorporate free code 385 in ACM V, free code 3 option in
Finacle.
Others:
1. All Bank's policy and guidelines has to be invariably followed while
considering any proposal from Contactless platform.
2. We have rolled out review at existing limit on the platform. Detailed
guidelines of review product will be issued in due course.
{* 1. In case of proposals on contactless loans, if there is any deviation in DER
(TOL/TNW) beyond the standard norms as per credit policy but within the
maximum permissible relaxation by the board, branch has to seek prior approval
from ZLCC & above as the case may be, for deviation in DER before sanctioning
the proposal (i.e. before according the final approval)
2. In case of ISCR, relaxation in ISCR may be permitted by the sanctioning
authority subject to the reasons / justifications for acceptability of ISCR below
norms)
CONTACTLESS MSME LOANS - CREATION / UPLOAD OF NEW PRODUCTS

ON PORTAL: (HO BC 112/124 dated 25-10-2018)
Standard operational guidelines on contactless platform
(https://www.psbloansin59minutes.com/home ) are detailed in HO BC 112/104
dated 20.10.2018. The Circular had dealt in length the procedure of Borrower's &

financing Branch's journey on the platform along with lending parameters for the
normal working capital and term loan which were uploaded on the platform.
Now, the bank has uploaded various new products on the platform and also
lowered the minimum quantum of loan to Rs 1.00 lakh for all the products
including the existing Working Capital and Term Loan. The Bank has also uploaded
various Renewal products on the portal for the benefit of the borrowers and
branches.
The details of new products uploaded on the portal are enumerated below:
a) Renewal Product of Normal Working Capital and Term Loan.
b) New Working Capital Product based on One Year ITR.
c) Renewal of Working Capital product based on One Year ITR
d) New Working Capital product based on Presumptive Tax filing/ITR IV
The broad guidelines including Risk rating model for financing under these
products has been detailed under annexure I, II & Ill of HO BC 112/124 dated 25-
10-2018.
All our Branches and MSME delivery points should actively participate in
garnering quality business through the portal and ensure meticulous compliance
of the lending guidelines contained in this circular.
Star MSME GST Udyami Loan (ONLINE PSB LOANS IN 59 MIN) – HO

BC 113/103 dtd. 21-08-2019
A new product “Star MSME GST Udyami Loan" (for Working Capital loans
above Rs. 1 Crore up-to Rs. 5 Crores, under MSME) has been uploaded on the
"onlinepsbloans" portal and made live for the use of borrowers/branches.
Presently only working capital loans are made live for loan amount ranging above
Rs. 1 Crore to Rs. 5 Crores. The Term Loan product will be made live in due course
in future.
Important features are as under:
Limit: Above Rs. 1 Crore & up-to Rs. 5 Crores, Presently only WC loans.
Due diligence: Online GST, ITR, Bank statement, Fraud databases, MCA, Bureau
Reports & others to be verified.
Processing: Up-to Rs. 2 Crores under CAPS & above Rs. 2 Crores, manually as
per bank’s policy.
Verification: Site visit (Residence / Unit – both) to be carried out and veracity of
documents to be verified.
Entry Level: CLP CR 1 to CLP CR 5 only.
Credit Rating: Branch to carry out Credit Rating as per SME / other applicable
model. Credit Rating model from Portal is only for in-principle approval. RoI to be
assigned as per internal Credit Rating.
Industry: All (EXCEPT Gems & Jewellery. Carbon emitting Industries, Aviation,
Defence, Real Estate, Power).
Asset Coverage: Min. 100%
Takeover / Multiple Banking Arrangement: NOT ALLOWED
Debt Equity Ratio: Max. 4:1
Current Ratio: Min. 1:1 (for last year)
ISCR: Min. 1.5:1
DSCR: Min. 1.25:1
TOL/TNW: Max. 4:1

Customer Concentration: Less than 20%
No. of cheques bounced: Less than 3 in last one month & less than 6 in last 6
months.
Age of unit & positive profitability history: Min. One year.
Min. CIBIL score (Director / Promoter / Prop.): 700
Comm. CIBIL DPD Max. : 30 days in last ONE year
Repayment of Term Loan: Max 10 years
Margin: Min. 25% for Manufacturing & Min. 30% for Service / Trading units.
CGTSME coverage: Allowed – up-to Max. Rs. 2 Crores
Collateral coverage: Min. 60%
Utilization: Min. 80%
Rate of interest: Mapped with 1 year MCLR along-with BSS (0.30) & CRP as per
Internal Risk Rating. It is to be charged on actual Internal Credit Rating.
Scoring Parameters for psb59minutes:
A Management Risk 12 sub sections With Max. 48 Marks
B Financial Risk 11 sub sections With Max. 44 Marks
C Business Risk 12 sub sections With Max. 48 Marks
TOTAL 35 sub sections With Max. 140 Marks
STAR MSME WELCOME OFFER: (HO BC 112/46 dated 25-6-2018 & 113/61
dtd. 1-7-2019)
Bank has prepared a list of Most Desirable Accounts (MDAs) presently
banking with other banks and the accounts it lost to other Banks due to
concessional rate of interest offered by them, in the recent past. It was felt that
our bank should also come out with some lucrative offers under MSME to bring
these MDAs and Lost accounts to our fold.
In view of the above, STAR MSME Welcome Offer scheme was launched
from the month of June, 2018 to 31-03-2020. Various concessions in RoI &
Processing Fee has been offered under the scheme.
Salient features of the scheme are as under:
Borrowers: Falling under MSME Category as per regulatory definition
Target Group: New to Bank including Takeover from other banks:

 New Accounts with minimum CCR of 0.60:1
 CGTMSE Covered accounts are NOT ELIGIBLE under the scheme.
Accounts with Hybrid security model are allowed with minimum
collateral coverage of 40%.
Facilities: Working Capital / Term Loan / NFB Limits
Loan Amount: Min. Rs. 50 Lakhs, Max. Below Rs. 5 Crore
Credit Rating / Investment Grade: Complying Entry Level Norms – SBS 5 /

SME 5 (No Deviation in Credit Rating allowed). Accounts with CMR 1 to 5 are
eligible. Even CMR 6-7 allowed with minimum collateral coverage of 70%
(selectively) and accounts where CMR is not available can also be allowed
selectively subject to minimum collateral coverage of 80%.
Risk Weight: Risk Weight in the accounts should not be more than 100%

Concessions offered:
Rate of Interest: Rate of Interest to be mapped with the internal Credit Rating
of the borrower as under:
SBS/SME 1 : 1 yr. MCLR + BSS (0.30%) + CRP (0.00%)
SBS/SME 2 to 3 : 1 yr. MCLR + BSS (0.30%) + CRP (0.50%)
SBS/SME 4 to 5 : 1 yr. MCLR + BSS (0.30%) + CRP (1.00%)
Additional Concession in Rate of interest:

Minimum Collateral Coverage Ratio Addl. Concession in RoI
More than 60% to 80% 0.10%
More than 80% to less than 100% 0.20%
100% or above 0.30%
Effective Rate of interest, in no case should be below MCLR. No further concession

in pricing is to be permitted.
Service Charges : 50% concession in applicable PPC charges. Other charges to

be recovered, as applicable.
BG Commission / LC Charges:
a. 50% concession in applicable BG Charges;
b. 30% concession in applicable LC Charges.
Others:
 The fresh view on concession in ROI and other Service Charges will be taken
at the time of annual review of the account based on its conduct and rating.
 All other Lending norms as per MSME / Credit Policy to be followed.
 All takeover norms to be complied with as per HO BC 107/211 dated 20-
02-2014, in case of takeover.
 Branches should incorporate free code “381” in ACM V option while opening
account in Finacle.
 Disbursement under this scheme should be done within the validity period
of the offer i.e. 31-03-2020.
CIBIL MSME RANK (HO BC 112/138 Dated 31-12-2018)

CIBIL MSME Rank (CMR) is a credit default predictor model for Commercial
/ Business entities. It provides insights in the credit behaviour of the entities and
predicts the probability of default over a one year horizon, thereby, helping the
lenders to make well informed credit decisions.
It is applicable to all commercial / business entities with aggregate
commercial borrowings (both MSME & Non-MSME) between Rs. 10 Lakh to Rs. 10
Crores. It measures and predicts the risk of the borrowings on a scale of 1 to 10,
CMR 1 having the least probability of default and CMR 10 having the most
probability of default.
Policy guidelines on CMR:

Applicability of CMR : All Commercial borrowings (MSME & Non-MSME)
Loan Amount : Min. Rs. 10 Lakh & Max. Rs. 10 Crores

Rationale of CMR :
CMR Meaning Description
CMR- Lowest Risk of Default Highest likelihood / probability to service the credit
1 obligations on time. Such borrowers carry lowest credit
risk.
CMR- Very Low Risk of Default Very High likelihood / probability to service the credit
2 obligations on time. Such borrowers carry very low
credit risk.
CMR- Low Risk of Default High likelihood / probability to service the credit
3 obligations on time. Such borrowers carry low credit
risk.
CMR- Significantly lower than Much better ability to service the credit obligations on
4 average Default time. Such borrowers carry lower than average credit
risk.
CMR- Marginally Lower than Marginally better than average ability to service the
5 average Likelihood to credit obligations on time. Such borrowers carry
Default marginally better than average credit risk.
CMR- Average Likelihood of Average ability to service the credit obligations on
6 Default time. Such borrowers carry average credit risk.
CMR- Higher than average Higher risk in servicing the debt obligations that
7 Likelihood of Default average borrower. Such borrowers carry higher than
average credit risk.
CMR- High Likelihood of Have defaulted or been delinquent in past and have
8 Default high likelihood to be in default status.
CMR- Very High Likelihood of Have defaulted or been delinquent in past and have
9 Default or Imminent very high likelihood to be in default status.
Default
CMR- Highest Likelihood of Past defaulters and have highest likelihood to continue
10 Default or in Default in default status.
Generation of CMR:
I. CMR should be generated at the application stage only and after compliance of
CMR norms (as detailed below), proposals should be appraised as per
applicable policies.
II. CMR is to be used only for the purpose of screening the applicants and in no
way it can be used as a substitute for credit rating exercise of the Bank.
Criterion for acceptability of CMR:
CMR Guidelines
CMR 1 to All new credit proposals / review with enhancement should be considered
CMR 5 by the delegated authority.
CMR 6 to Any new credit proposals / review with enhancement should be considered
CMR 7 by the delegated authority on a selective basis with proper justification
and stipulation of some additional covenant such as Security / Guarantee
among others.
CMR 8 to  New Borrowers should not be considered for sanction.
CMR 10  In case of Existing Borrowers requesting for enhancement, the
delegated authority may consider the request in exceptional cases
with 100% collateral security for the additional amount and subject
to minimum overall CCR of 0.75
 Justification for considering the enhancement should be clearly
dealt with in the proposal note.

Charges: Rs. 360/- plus applicable taxes, per CMR. The charges is to be recovered
from the borrower.
Others:
o All other guidelines for delegation, pricing etc. is to be followed as per extant
policies.
o In case of those borrowers account wherein CIBIL MSME RANK (CMR) is not
available, then the prevailing existing guidelines will continue.
STAR STANDBY LINE OF CREDIT FOR MSME (HO BC 113/166 dtd.

13-12-2019)
A short term credit facility is designed by the bank for MSMEs falling under MSME
category as per MSMED act 2006, to meet temporary liquidity mismatches and
urgent business requirement. The Product will be known as STAR STAND BY LINE
OF CREDIT FOR MSMEs and only fund based limit demand loan Maximum to
the tune of Rs. 1.25 Crores, for maximum period of 12 months (including
3 month moratorium period) will be sanctioned under the scheme.
All existing satisfactorily conducted Standard accounts enjoying WC Limits with

our Bank; all Borrowers having valid GSTIN or Borrowers exempted from GST are
eligible under the scheme.
Assessment:
Maximum 25% of Existing Working Capital Limit (FBWC + NFBWC). Limits will be
over and above the MPBF/ABF, to be restricted within available Drawing Power.
Security:
a) Hypothecation of Stocks & Book Debts; Extension of charge on other existing
Primary and Collateral security.
b) In case CGTMSE/CGSSI/CGFMU coverage is applicable and available, it should
be obtained for additional limit.
Credit Rating: As per applicable rating models. Entry level norms to be complied
with. Accounts below Entry Level can also be considered under the scheme, by
one level higher than the normal sanctioning authority.
Interest Rate:
0.50% above the present ROI sanctioned to borrower. ROI to be linked to
MCLR/RBLR as the case may be in the original working capital limit.
Margin:
Nil, under the scheme. However margin for the existing limits will continue as
per sanctioned terms.
Processing Fee: Nil. Other charges such as Documentation, Mortgage, inspection

as applicable.

Sanctioning Authority:
The delegation under the scheme is being delinked with regular DOP and Chief
Manager & above will sanction the limit subject to its delegation under
secured/unsecured exposure, mapped with internal credit rating.
If Regular Limits are sanctioned by any higher authority, the limits under the
scheme can be considered by Chief Manager & above subject to reporting of the
same to Sanctioning authority of regular limits.
In case of accounts below entry level, the sanctioning authority will be one level
higher than the normal delegated authority.
Repayment: The limit to be repaid in next 12 months, including initial moratorium

max. three months. The Limit shall be repaid either in one bullet repayment or in
equated monthly instalments in the next 09 months after the moratorium period,
if any.
Drawing Power to reduce in line with equated monthly instalments every month
after moratorium period is over and interest to be served every month as and
when applied.
Others
 Deviation in Financial parameters are accepted under the scheme up to the
level of maximum relaxation permitted by Board. No specific permission will
be required, in this case. In cases wherein there is deviation in financial
parameters beyond maximum permissible limit as approved by Board, the
same has to be dealt, as per existing guidelines.
 While considering limits under the scheme, sanctioning authority to ensure
that all other prevalent norms and guidelines (except those as permitted
under the scheme) as per MSME policy are complied with.
 Branch to consider limit under the scheme after verifying the genuine
requirements of the unit/firm/borrower.
 Branch may obtain CA certificate for delayed realization of receivables,
receipt of GST input tax credit etc.
 Clean Limits are not allowed under the scheme.
 The facility will be considered as an exposure on the borrower and the
guidelines stipulated under the RBI Prudential norms shall be adhered to.
 Branches to verify end use of funds.
 Branches to undertake comprehensive review of the accounts while
considering limits under the scheme, if last review/sanction date is more
than nine months old.
 If the account has been reviewed within nine months, limits under the
scheme can be considered on a standalone basis.
 Limits under the scheme will be considered only at the specific request of
the borrower.
Scheme Code/Free Code: A New Free Code/ Scheme Code will be assigned.
To be entered in Free Code 3, under MIS code V in Finacle.
ZERO DEFECT ZERO EFFECT
Addressing the nation on India's 68th Independence Day, Hon'ble Prime

Minister Shri Narendra Modi urged the industry, especially the Micro, Small and
Medium Enterprises (MSMEs) of India, to manufacture goods in the country with

"Zero Defects" so that our exported goods are never returned to us and to ensure
that the goods have "Zero Effect" that they should not have a negative impact on
the environment.
The Ministry of MSME has decided to implement the ZED Certification

Scheme with the help of Quality Council of India (as NMIU) & other stakeholders
for 22,222 micro, small and medium enterprises (MSMEs) with a total budget of
Rs. 491 Crores (including Government of India contribution of Rs. 365 Crores)
during the 12th Five Year Plan. The objectives of the scheme include inculcating
Zero Defect & Zero Effect practices in manufacturing processes; ensure continuous
improvement and supporting the Make in India initiative. The scheme is an
extensive drive of the Government of India to enhance global competiveness of
MSMEs by providing them financial support in assessment, rating & hand holding
of its manufacturing processes on quality and environment aspects.
Thus, the ZED model aims to achieve high quality manufacturing that’s also
green. While India putting efforts to become global manufacturing hub, the ZED
model is necessary to take forward the efforts.
(Updated on the basis of HO BCs till 30-03-2020)

Retail Credit
BOI Star Doctor Plus-Vehicle Loan
Eligibility: Qualified registered medical practitioners with minimum 3 years’

experience in any branch of medical science recognized by statutory/regulatory
authorities to practice in India.
Purpose: For purchase of personal vehicles.
Constitution: Individual/Joint/Proprietorship
Age: 25 to 75 years (75 years is the max. age at which total loan to be
repaid)
Loan Limit: Rs.100 Lakhs (Max. two vehicles)
Calculation of Quantum of Loan:

- For salaried: 36 times of gross monthly salary
- For others: 3 times of gross annual income as per ITR
Security: Hypothecation of assets created out of Bank finance; Banks charge

to be registered with RTO
Type of Advance: Demand loan/Term loan
Margin:
o Up to 25 lakhs - Nil on show room price (insurance,
registration, road tax charges to be borne by the borrower)
o Over Rs.25 lakhs - 10% on show room price. (Insurance,
registration, road tax charges to be borne by the borrower)
Repayment period: 84 Months (repayment to commence from next

month of disbursement)
Net Take home pay/Income (NTHP):
o For Gross monthly income up to Rs.1 lakh - NTHP minimum 40%
o For Gross monthly income over Rs.1 lakh to Rs.5 lakhs- min 30%
o For Gross monthly income over Rs.5 lakhs - minimum 25%
Processing charges: 50% concession in charges

ROI: RBLR + 0.40%
(Source: - BC 110/15 Dt. 01.04.2016 - Master Circular)
BOI Star Doctor-Plus-Personal Loan
Eligibility: Qualified registered medical practitioner with minimum 3 yrs.’

Experience in any branch of medical science recognized by statutory/
regulatory authorities to practice in India.

Purpose: Any approved purpose.
Constitution: Individual/Joint/Proprietorship
Age: 25 to 75 years (75 years is the max. age at which total loan to be
repaid)
Loan Limit: Rs.20 Lakhs: OD (Non-Reducible) Max Rs. 10 lakhs

 For salaried:24 times of gross monthly salary
 For others:2 times of gross annual income as per ITR
Security:
 For loans up to Rs.5 Lakhs - No collateral security
 For loans over Rs.5 Lakhs up to Rs.10 Lakhs - Third party
guarantee of adequate value, (one person cannot be a guarantor in
more than one account.)
 For loans over Rs.10 Lakhs up to Rs.20 Lakhs - Adequate
collateral security for loan amount over Rs.10 lakhs.
Type of Advance: Demand loan/Term loan/OD-reducible/OD-non reducible

(max.Rs.10 Lakhs)
Margin: Nil.
Repayment period: 84 Months
For Non-reducible OD, on borrower’s attaining the age of 68, account to be
reviewed & repayment to be fixed such a way that the loan account will be
close at his completion of 75 years of age.
Net Take home pay/income (NTHP):

 For Gross monthly income up to Rs.1 lakh-NTHP minimum 40%
 For Gross monthly income over Rs. 1 lakh to Rs.5 lakhs-
minimum 30%
 For Gross monthly income over Rs.5 lakhs- minimum 25%
Processing charges: 50% concession in charges

Rate of Interest: Fully Secured – RBLR + 2.00%
Clean – RBLR + 3.00%
(Source: BC 110/15 Dt. 01.04.2016 Master Circular)
BOI Star Personal Loan Scheme

Eligibility: Salaried employees, professionals and High Net-worth Individuals
(HNI)
Purpose: Any approved purpose.
Age: Not to exceed retirement age of the employee/for others-
repayment period not to exceed 65 years of age. (Retirement age
for salaried proponents & 65 years for others is the max. age at which total
loan to be repaid)
Loan Limit: Clean advance: Max. Rs.5 Lakhs;
Secured advance: Max. Rs.10 Lakhs

 Clean advance:
For salaried proponents: 10 times of monthly NET emoluments
For others: 50% of Gross A nnual Income
 Secured advance:
For salaried proponents: 20 times of monthly GROSS emoluments
For others: 100% of gross annual Income
Security: For secured advances- EQM of property for not less than 150%
of quantum of loan. Pledge of gold/NSC/DBD at least equal to the loan amount.
Pledge of Demat shares of market value not less than 200% of the amount of
the loan
Type of Advance: Demand loan/Term loan/OD-reducible/OD-non reducible
[OD (NR) Max Rs. 1.00 lakh only]
Margin: Suitable margin for secured advances. No specific margin to be
insisted upon for clean advances
Repayment period:
 Repayment in 36 EMIs for clean advances. (Sanctioning authority
may consider up to 60 months)
 Maximum 60 EMI for secured advances. For non-reducible OD,
interest to be serviced on regular basis. Loan account to be closed
before retirement.
Net Take home pay/income (NTHP): Not less than 40% of Gross income
Processing charges: One time @2%of loan amount,min.Rs.1000/-and
Max.Rs.10,000/-
ROI: Fully Secured – R B L R + 4.50 %
Clean – RBLR + 5.50 %
For Senior Citizens aged 60 & above for loans up to Rs. 50,000/-
ROI is R B LR + 3.50 %
(Source:- BC 110/10 Dt. 01.04.2016 Master C i r c u l a r )
STAR Personal Loan to Government Employees

Target Group: The scheme should be approved by ZLCC. MOU with the
organization is required, for financing clean/unsecured loans to GROUP of
permanent/confirmed employees of central/state government, PSBs/PSEs of
Central & State Govt. (earning profit for last three years), teachers of
government schools and colleges and staff of regulatory bodies like RBI,
SEBI, IRDA etc. Where salary deduction of EMI is available or proper mechanism
for deduction of EMI from the employee borrower’s salary is in place.
Clean/Unsecured loans: Max. Quantum of finance is Rs. 10 Lakhs. (ZLCC

and above can sanction individual clean/unsecured loan over Rs.5 Lakhs up
to Rs.10 Lakhs) to persons with gross monthly income of Rs. 75,000/-and above
Net Take Home Pay (NTHP):- Min. 40% of gross salary.
Calculation of quantum of loan: 15 times of monthly net emoluments.
ROI: RBLR + 4.50 %
(Source: - BC 110/14 Dt. 01.04.2016 Master BC)

STAR Pensioner Loan Scheme
Eligibility: Regular or family pensioners drawing regular monthly pension
through the branch
Purpose: Any approved purpose
Age: For loans over Rs.1.00 lakh, not to exceed 75 years at the end of
repayment period
Loan Limit/Quantum of finance: 15 months Net pension for both Unsecured &
Secured loan.
Max Loan of Rs.5.00 lakhs if the PPO is with Bank for Regular pensioners/
Family pensioners; and Max loan of Rs. 3.00 lakhs if the pension is received
directly from Treasury/DPDO for credit of Savings Accounts and Rs. 1.50 lakh to
family pensioners.
Co-Borrower: In case of regular pensioners, nominee/legal heir and in case
of family pensioner legal heir will be co borrower.
OD Facility up to 3 months Net pension, max. Rs.50,000/- only to those

pensioner drawing pension from the branch which should be holding their
PPOs.
Processing charges: No processing charges for senior citizens.
For others- one time@2%of loan amount Min Rs.500/-Max.Rs.2000/-
ROI for both Secured & Unsecured: RBLR+2.50 %
All other terms & conditions: - As per Star Personal Loan S c h e m e
(Source: BC 110/11 Dt. 01.04.2016 Master BC)
Vehicle Loan Scheme

Eligibility: Salaried employees, P&SE, Businessmen, Pensioners, Farmers, NRI
(jointly with Resident Indians- close relatives), HUF not permitted.
Purpose: Purchase of new /old two/four wheeler vehicles like Car, Scooter,
and Motorcycle etc. (including vehicles run on non-conventional energy -
electronic or battery operated but registered with RTO).
In case of vehicles where registration with RTA is not required, maximum
Rs.50,000/- f o r 2 wheelers & Rs. 4.00 lakh for 4 wheelers and
preferably with collateral security & necessarily when the loans above
limits of Rs.1.00 lakhs (Old 2nd hand vehicles not to be more than 3
years old & comprehensive insurance cover should be available).Reimbursement
of cost of new four wheeler, purchased from own sources can be done
provided the vehicle is not more than 3 months old and have not undergone
any accident. Valuation of the vehicle to be undertaken by the approved valuer.
Reimbursement of cost of four wheeler purchased from own sources.
Subject to: Vehicle should not be more than 3 months old and purchase done
through Cheque/ Card/ electronic mode only. Vehicle should not have met any
accident, valuation by a reputed automobile engineer. Obtention of original
invoice, RC, Insurance. ‘The reimbursement will be made only after registration
of our charge with RTO and hypothecation charge on insurance with Bank’s
Standard clause.
Max. Quantum of finance:
For Indian make vehicles: Rs.50 lakhs;
Imported vehicles: Rs. 100 lakhs;

For companies & corporates: Rs.200 lakhs (can be a fleet of vehicles); Non-
resident Indians: Rs. 50 lakhs
Eligible Quantum of loan:

 For individuals: 24 times of Average Monthly Gross
emoluments or 2 times of Average Gross Annual income as per
last 3 years ITRs
 For others, i.e. Firms/companies: 2 times of Average Annual
cash accrual, i.e. (PAT + Depreciation) as per company’s/firm’s
audited Balance sheet/P&L accounts
 Farmers: As per repayment capacity as applicable in agriculture
loans
Net take home pay:
 For individuals: 40%- For gross monthly income of Rs.1 lakhs
 30%- For gross monthly income of Rs.1 lakhs and above and up
to 5 lakhs
 25%- For gross monthly income of Rs. 5 lakhs and above
 For others: Min. DSCR 1.5
Age: Not exceeding 65 at the time of availing finance
Margin: Individuals (including NRIs):
 Up to Rs.10.00 lakh - Nil margin on Ex-Show Room price excluding
comprehensive insurance/taxes/registration charges
 > Rs.10.00 up to Rs.25.00 lakh-15% On the Road Price including
comprehensive insurance/taxes/registration charges
 > Rs.25.00 lakh - 25% On the Road Price including comprehensive
insurance/ taxes/registration charges
 Corporates/firms- 25% min.
Repayment:
 Two wheelers: 5 years;
 Four wheelers: 7 years; for corporates/firms: 5 years;
 2nd hand vehicle: 3 years
Security:
 Hypothecation of Vehicle purchased out of bank finance- Bank’s
Hypothecation charge to be registered with RTO. -Comprehensive
insurance of the vehicle with Bank clause.
 Collateral security to be insisted upon for loans>Rs.25
lakh
 Registration of Bank’s charge over the vehicle with ROC in
case of financing to corporate/company apart from charge
registration with RTO.
Finance to be given only for vehicles purchased from dealers who are
approved and their details have been entered in CAPS package by ZO.
Branch to ensure that vehicle is registered in the name of the borrower and the
Hypothecation clause is registered in the name of Bank and also the
Comprehensive insurance to be obtained with Bank clause.
(Source: - BC 110/06 Dt. 01.04.2016 Master BC)

Star Holiday Loan
CLEAN LOAN OR SECURED LOAN –

Target customers:
 Salaried employees/P&SE persons/Businessmen/ HNIs/
Agriculturists/ Pensioners (age max. 65 years and drawing pension
from Branch)/ Staff members. For Tours/Pilgrimage/Excursions
Expenses like Travel fare, Expenses for Accommodation, Sight
Seeing
Age:
 Max. age of Pensioner not to exceed 65 years while
considering the loan (Entry age)
Quantum:
 Min. Amount Rs. 10,000/- at Metro/Urban Centers only. No
Minimum amount clause for Rural/ SU Centers. Facility is by way of
D/L (Repayable as per repayment schedule) & maximum Amount
at any center is subject to-
 Clean – Max. Rs. 2,00,000/-
 Secured Loans – M a x . Rs. 5,00,000/- ( If L i q u i d C o l l a t e r a l
Sec urity i s offered up to at least 50% of Loan Amt.)
 Secured L o a n s – Max. Rs.10,00,000/-(If L i q u i d
C o l l a t e r a l S e c u r i t y is offered up to a least 100 % of Loan
Amt.)
 Salaried Employees – 10 times of Monthly Net Emoluments (Take
Home Salary)
 All Others – 50% of Gross Annual Income as per last I. Tax Return
 Pensioners – 10 Times of Monthly pension Max Rs. 1.00 lakh.
Branch manager is competent to assess the Income up to Rs. 2.50

Lakhs, where salary certificate / I.T. Return are not available.
In case of joint borrowers, their income can be clubbed for
assessing eligible quantum of loan & repayment capacity.
Repayment:
 24 E M I s o n e m o n t h a f t e r f i r s t d i s b u r s e m e n t . In
Exceptional Cases it can be extended up to 36 EMIs.
Net T ak e H o m e Salary/Pension/Income:
 Should not be less than 40% of Gross Salary/Pension/Income
Security–
 Pledge of NSCs/ KVPs/ IVPs/ TDRs / Assignment of LIC Policy if
secured
Processing Charges (One t i m e )
 All Accounts (except Pensioners) – @ 2.00% of loan
amount- Minimum 1,000/- Maximum 10,000/-
 Pensioners – @ 2.00 % of Loan Minimum Rs.500/--
Maximum Rs.2,000/-
No processing charges for senior citizens (60 years & above)
Margin:
 No specific margin. However, loan amount not to exceed proposed
expenditure

ROI:
 Fully Secured – R B L R + 4.50%
 Clean – RBLR + 5.50 %
Source-(BC 110/12 Dt.01-04-2016)
Star Mitra Personal Loan

Objective-
 To help “Divyang” (Physically Challenged) persons to function
independently.
Purpose:
 To purchase durable and sophisticated aids / appliances
that promote their physical and social rehabilitation
Eligibility-
 All Physically Challenged Individuals – both salaried and self-
employed,
 All Physically Challenged Minors through their Parents/Legal
Guardians.
 No advances to middle-men and NGOs.
Type o f Advance: Demand / Term Loan – Secured.
Amount- Max. Rs. 1 lakhs (No minimum stipulation)
Eligible Amount-
 10 times of net salary for salaried persons and 50% of net annual
income as per latest Income Tax Return for Self-
employed/Professionals.
Net take home income should not be less than -
 40% after availing this loan. (In case of Minors, the
income of the Parents/Legal Guardians would be the deciding
criteria for eligibility).
Margin:
 10% (May be waived in deserving cases, as also in DRI
cases, Discretion with the Sanctioning Authority).
Repayment:
 12 to 60 months, commencing one month after full
disbursement/ three months after first disbursement, whichever is
earlier.
Rate of I n t e r e s t (ROI):
 1 y e a r MCLR +BSS (0.30 %) +CRP ( 1.00%) FIXED.
Security:
 Hypothecation of the Equipment purchased out of Bank Finance.
Insurance:
 Waived. However, Borrower may be advised to obtain insurance
at his own cost.
Processing Charges Waived.
Delegation As per powers for sanctioning secured Star Personal Loan
Other Terms and C o n d i t i o n s :
 Doctor’s Certificate to be obtained from the borrower regarding
the extent of handicap and the need for the equipment.
 Quotation/Invoice in respect of the equipment to be purchased.
 Stamped receipt to be submitted after purchase of the equipment.

 Staff members also permitted (other than those who are under
suspension) from those branches where the salary account of the
employee is maintained. Loan to be repaid before retirement/
recovered from terminal dues in case of cessation from service.
All Other Terms & Conditions Including Documentation of Star Personal Loan
Scheme Will Apply Ref: 110/13 01.04.2016.
BOI Star Education Loan Scheme

Quantum of finance:
 Need based finance to meet educational expenses and having
regard to student’s earning potential after completion of course &
not his parents’ income or worth subject to:-Studies in India: Max.
Rs.10 lakh/Studies Abroad: Max. Rs. 20 lakh (Above limits are as
per RBI guidelines.Max.Rs.10 lakhs will qualify for Priority Sector.)
Higher limits can be considered at NBGLCC and above level with
full security & 25% margin)
Courses e l i g i b l e :
 Graduation/Post Graduation/Professional courses/Other courses
leading to Diploma or Degree ; Regular Degree/Diploma courses
like Aeronautical/Pilot training/Shipping/Degree-Diploma in Nursing
or any other discipline approved by Director General of Civil
Aviation (DGCA)/Shipping/Indian Nursing Council or any other
Regulatory Body, if course is pursued in India. Courses to
be approved by AICTE/IMC/ OR
University approved by UGC/State Govt. /Central Govt. /Ministry of HRD
(GOI)/DGCA or such other Regulatory Body. For studies abroad –
Course/University should be reputed/State funded (Ranking wise first
3000 universities in ranking web of universities www.webometrics.info)
Basis for financing:

 Student should be Indian national & he/his parents should be
ordinarily resident of the Branch area or operation. No outstanding
Education loan from any other Bank/F.I. Admission through
Entrance Test/Merit based selection process. Where admission
based on qualifying exam – Gen category students: 60% marks;
SC/ST/OBC: 50% marks; Student’s PAN No. is mandatory.
Margin:
 Up to Rs.4 lakhs -Nil margin,
 >Rs.4 Lakhs - 5% for studies in India and 15% for studies abroad
Security:
 Up to Rs. 4 lakhs:
a) Parents or Guardians to be joint borrowers. Waiver with ZLCC
b) CGFSEL cover mandatory.
 > Rs.4 Lakhs up to Rs. 7.50 lakhs
a) Parents or Guardians t o be joint borrowers
b) CGFSEL cover mandatory.
 >Rs.7.5Lakhs: Collateral security of suitable value. Parent or
guardian of the student should be the co-borrower.

Repayment:
 Repayment Holiday/ moratorium: Course period + 1 year
 Repayment period: 15 years after commencement of repayment
Loan to NRI:
 NRI is eligible provided he holds Indian Passport & satisfies eligibility
conditions of the scheme.
Security:
 100% tangible security enforceable in India.
Loan under management quota:
 Meritorious student who qualifies under merit quota but chooses
to pursue under Management Quota for reasons of convenience of
choice of course
Rate o f interest:
 Loans up to Rs.7.50 lakhs: RBLR + 1.70 %
 Loans above Rs. 7.50 lakhs R B L R + 2.50 %
 All Educational loans up to Rs. 7.50 l a kh s , a r e to be
compulsorily c o v e r e d under the Credit Guarantee Fund
Scheme for Educational Loans. Branches to select correct
Guarantee code i n ACM ‘V’.
Source: - BC 110/07 Dt. 01.04.2016 (Master BC)
STAR Vidya Loan Scheme

Eligibility:
 Financing education loans to bright students of premier
educational institutions in India– Engineering/ Medical/ Law/
Management. Indian national securing admission through entrance
test/selection process
Courses covered:
 Regular full time Degree/Diploma courses, Full time Executive
management courses. (Certificate/Part time courses are not
permitted)
Moratorium period:
 Course period + 1 year
Quantum of finance:
 Max. Rs. 20.00 lakh for institutes in annexure A and Max Rs.
10 lakhs for institutes under annexure B.
[Higher Quantum can be sanctioned up to Rs. 30 lakhs by ZLC C, with some
conditions]
Rate of Interest:
 1 year MCLR only. There will be no other concession to students
including girl student under this category. No concession for
servicing interest during study/ moratorium period.
Co-borrower:
 Co-obligation of Parents/guardians as co-borrowers. &
Assignment of future income
Margin: Nil

Repayment period:
 Repayment Holiday/ moratorium : Course period + I year
 Repayment period : 15 years after commencement of repayment
Rate of interest:
 RBLR + 0.00%
All other terms & conditions of Star Education Loan Scheme shall
be applicable
Source:-BC 110/08 Dt. 01.04.2016 (Master BC)
Pradhan Mantri Kaushal Rin Yojana (PMKRY)
(Skill Development Scheme)
Purpose:
 To extend education loan for vocational courses offered
by ITIs/ITCs/Polytechnics & such other technical institutions/bodies.
GOI initiative in skill development.
Eligibility:
 Indian national having secured admission for recognized course
run by Govt. /Organization supported by Skill Development
Corporation & leading to Certificate/Degree/Diploma issued by Govt.
organization or recognized by Govt.
Eligible courses:
 Courses supported by Govt. Or run b y o r g a n i z a t i o n supported
by Govt.
Quantum of finance:
 No minimum course duration the finance under this scheme is
available in the range of Rs.5000/- to Rs.150000/-
Margin: Nil
Eligible expenses considered for financing:
 Tuition/ Course fees, Examination/ Library/Laboratory fees,
Caution Deposits, Purchase of Books/Equipment’s/Instruments.
Any other reasonable expense found necessary for completion of
course. Being localized courses, expenses for lodging & boarding
may not be necessary. However, such expenses may be considered
on merit, wherever found necessary
Minimum Qualification As required by the
enrolling institutions/organizations as per National skill Qualification
Framework (NSQF)
No restriction for minimum age.
Repayment period:
 Loans up to Rs.50,000 – up to 3 years
 Loans of Rs.50,000/- to Rs.1.00 lakh – up to 5 years
 Loans > Rs.1.00 lakh –up to 7 years
Moratorium period:-
 For courses of duration up to 1 year – Course period + 6 months
 For courses of duration > 1 year – Course period + 12 months
Rate o f interest:
 RBLR+ 1.50%.
 1% interest concession if interest is serviced on regular basis
during the study period\ moratorium period. No other interest
concession.

Processing charges: Nil
Security:
 No Collateral security or Third party guarantee. However, Parent
to execute security documents along with student as joint borrower.
Accounts financed under the scheme to be covered under
National credit Guarantee trust company (NCGTC).Such guarantee
cover will be for a maximum of 75% of the outstanding loan amount
(including interest if any).In North eastern region (NE) and left wing
Extremism (LWE) affected areas percentage may be increased on
the discretion of NCGTC
All other terms & conditions as applicable to Bank’s Normal Educational Loan
Scheme.
Source: - BC 110/09 Dt. 01.04.2016(Master BC)
BOI Star Home Loan

Purpose:
 Purchase / Construction of House / flat, Repairs / Renovation/ Purchase of
plot for house construction/ furnishing. (Only composite loan for
plot)/Takeover of Home loan from other Banks/F.I.s.
 Old House/Flat:- Future (Residual) life should be at least 1.5 times of the
stipulated repayment period which should be certified by the approved
valuer.
 To acquire household articles/ Solar PV along with house/flat.
 Second Home loan can be considered even when another Home loan A/c is
continuing provided: The proponent is singly or jointly eligible for proposed
loan, Existing Home loan A/c is of standard category, Proponent has
adequate income to meet repayment obligations for both the loans &
Proponent can provide stipulated margin.
 3rd Home loan can be considered as CRE, with risk weight and provisioning
norms applicable to CRE-RH. ROI of 0.5% above usual applicable Housing
loan interest to be charged for third dwelling unit.
Eligible Proponents:
 Permanent Salaried employees/ Businessmen/ Professionals & Self-
employed/ Proprietorship & Partnership Firms/ Corporate Borrowers for
construction of dwelling units for Directors/ Partners / HUF customer for
housing for members of HUF / NRI.
Eligible quantum of loan:
 72 times of monthly gross salary/ income or 6 Times of Annual Gross
Income based on ITRs.
 For firms/Corporates :- 6 times of cash accrual ( PAT + Depreciation)
Margin:
 For loans up to Rs.30 Lakhs :10% on pure cost of the house; For loans
above Rs.30 Lakhs & up to Rs.75 Lakhs : 20% on pure cost of the house;
For loans above Rs.75 Lakhs : 25% on pure cost of the house;
 For second home loan: loans up to Rs.30 Lakhs :20% on pure cost of the
house; For loans above Rs.30 Lakhs & up to Rs.75 Lakhs : 20% on pure
cost of the house; For loans above Rs.75 Lakhs : 25% on pure cost of the
house

Max. quantum of finance:
 Rs.500 lakh – for metros (Mumbai/Delhi/Chennai/Kolkata/ Bengaluru/
Hyderabad/ Ahmedabad/ Pune/ Nagpur/ Delhi-NCR/ Indore/ Surat/
Gurgaon/ Chandigarh/ Jaipur/ Kochi/ Bhubaneshwar)
 For other places:- Rs.300 lakh;
 For purchase of plot : Rs. 300 Lakhs (above Metros), 100 Lakhs other.
 Rs.50 lakh for Repairs/Renovation.
Expenses for Furnishing / Solar PVs & Insurance :
 Loan to acquire household articles / furniture : Max Rs.5.00 lakhs,
 Loan for installation of Roof Top Solar PV including equipment, installation
and wiring cost : Max Rs.10.00 lakhs.
 Both loans not to exceed 15% of Home loan, Max I & 2 Rs.10.00 lakhs.
Loan to be disbursed after completion of house / flat. Within the norms
of net take home pay.
ROI:
 Same as applicable to Home loan.
Repayment:
 Max 10 years including moratorium if any or repayment period of Home
loan whichever is earlier. Separate loan accounts. Extension of EQM of
home loan.
 Repayment: Up to the age of 70 years (in joint a/cs age of senior), subject
to condition that adequate income is available post retirement in case of
salaried proponent.
Repayment period:
 New construction/New purchase directly from Builder - Max. 30 years
including moratorium; for 2nd home / Second hand home purchase - Max.
25 years with No moratorium; For Repairs - Max. 20 years with moratorium
of 6 months
Moratorium period: Linked to floors of the building:
 Moratorium Period (For plot & construction) -18 months from date of first
disbursement ,which can be extended up to 30 months by approval of ZLCC.
 Moratorium Period (For purchase of new flat)
 Up to 7 Floors : 18 months , which can be extended up to 30 Months
by approval of ZLCC.
 Up to 14 Floors : 24 months, which can be extended up to 36 Months
 Beyond 14 Floors : 36 months, which can be extended up to 48 Months
 Interest to be mandatorily serviced after 18 months in all cases. Interest
for first 18 months only can be capitalized. Maximum repayment 30
years inclusive of moratorium period.
Take home pay:
 For Gross monthly income up to Rs.1 lakhs -NTH minimum 40%
 For Gross monthly income over Rs.1 lakhs to Rs.5 lakhs -NTH minimum
30%
 For Gross monthly income over Rs.5 lakhs -NTH minimum 25%
 70% of notional rental income can be added.
 For firms/corporates: Min. DSCR=1.5

Security:
 EQM of the property
Rate of interest:
 As per Bank’s guidelines.
Branch Managers are permitted to assess income of prospective
borrowers, in the absence of any documents like Income Tax Returns
salary slips, up to Rs. 2.50 lakhs per annum in respect of retail loan
scheme.
Source:- BC 110/82 & 112/21 Dt. 30.07.2016 & 03.05.2018 respectively .
STAR Diamond Home Loan Scheme

Star Diamond Home Loan Scheme is an extension of Star Home Loan Scheme
specifically to finance Home loans over Rs.5.00 crore (Bank’s Normal Star Home
Loan Scheme has ceiling of Rs.5.00 crore for metros)
Eligible proponents:
 HNIs, Firms/ Corporates for their Partners/Directors with average annual
gross income of Rs.1.00 crore & above based on audited Balance sheet/ITRs
during last 3 years
Quantum of loan:
 More than Rs.5.00 crore
Location of House/flat:
 Metros & major cities – Mumbai/New Delhi & Delhi NCR/ Chennai/ Kolkata/
Bangalore/ Ahmedabad/ Hyderabad & Pune
Net Take Home pay: (Net of EMI) for individuals:
 Min. 25% of Gross salary/ income o For firms/corporates: min. DSCR of 1.5
Rate of interest:
 As per Star Home Loan Scheme
Processing charges:
 One time Rs.50,000/- (all inclusive) or maximum as per Star Home Loan
Scheme whichever is higher
Source:- BC 110/02 Dt. 01.04.2016 (Master BC)
Star Pravasi Home Loan Scheme for NRIs/PIOs

Purpose-
 Same as Star Home Loan Scheme
Eligible Components-
Eligible Borrowers-
 NRIs having valid Indian Passport.
 PIOs holding Foreign Passport (To substantiate PIO status by current
Passport indicating birth place in India, copy of Indian Passport held earlier,
Parents or grant parents’ Passport with details substantiating his claim as
PIO or copy of PIO Card) having steady source of income.
Age-
 Same as per Home Loan Scheme (Repayment up to 70 year)

Income-
 Same as Star Home Loan Scheme except that the income in foreign country
to support by annual Income Return filed in the country in which the
applicant resides. Where 70% of rental income is considered for calculation
of quantum of loan/NTH- the rental income to be credited to the Home Loan
Account directly.
Co-borrower
 All co-owners to be co-applicants for the loan. Co-applicant also could be a
resident Indian in which case his/her income also could be considered for
calculation of quantum of loan/repayment capacity. However, foreign
national of non Indian origin cannot be included as a co-owner or co-
borrower.
Family Members as Co-borrower- Same as Star Home Loan Scheme
Margin-
 Same as Star Home Loan Scheme except full amount of margin (own
contribution) to be paid by the borrower before 1st disbursement of
loan and come from debit of NRE/FCNR/NRO account in India or
through remittance from abroad (encashment of Foreign Currency
Notes or TCs are not allowed).
Net Take Home Pay-
Credit Information Report-
 Report to be generated from CIBIL or any other approved credit rating
agency in India. Also, the applicant to submit credit report from a credit
rating agency from the country in which the applicant resides, if such
reports are easily available. The report is available in countries like USA,
Canada, UK, Germany, Malaysia, Hong Kong, Singapore, Japan, South
Africa, South America etc. The stipulation may be waived by the sanctioning
authority in respect of those countries where such reports are not easily
available.
Rate of Interest-
 Same as per Home Loan Scheme.
Charges-
Home Loan on reimbursement basis-
Disbursement of Loan-
 Same as per Home Loan Scheme except margin as mentioned above.
Mode of Repayment-
 Repayment to be made by remittance from abroad through normal banking
channels for out of funds in his NRE/FCNR/NRO account in India. Ideally
standing instructions to be provided for recovery of money from NRE/NRO
accounts. Close relatives (as defined u/s 2(77) of the Companies Act, 2013)
of the borrower in India also could repay instalments of such loan, interest
and other charges, if any through their Bank account directly to borrowers
NRI Home Loan account with the Bank. Rental income of the property,

wherever it is considered for calculation of eligibility also could be credited
directly to Loan account.
Security-
Source: BC 112/37 dt 12-06-2018
BOI Star Smart Home Loan Scheme

Purpose
Eligible Customers-
 Existing SB/CD customer with average balance of Rs.5000.00 for last one
year and New customer who opens a new SB/CD account with opening
balance of Rs.5000.00.
 Present/prospective salaried employees whose salary is credited to BOI
Branch and repayments are proposed to be made from this account,
irrespective of minimum balance.SB/CD account to be maintained
throughout the tenure of the loan.
Quantum of Loan
 For Salaried : Minimum Rs.5 lakhs and maximum as per Normal Home
 Loan Scheme o For Others: Minimum Rs.10 lakhs and maximum as per
Normal Home Loan Scheme.
Type of Loan and Linkage with Deposit Account-
 Home Loan Overdraft :
 Account under this category to be opened under separate Finacle Code i.e.
LA-757 (ODA type).
 MIS Code as applicable to specific category i.e. Home Loan (406), Diamond
Home Loan (700), Pravasi Home Loan (440), to be incorporated under Free
Code 3 of ACM V.
 The account will be linked to SB/CD account of the customer and balance
above a threshold limit is automatically transferred to the Home Loan
Overdraft Account in multiples of Rs.5000.00 (There will be sweep out of
funds from SB/CD accounts but there will be no sweep in from loan
account).
 The threshold limit (Minimum amount to be held in SB or CD account for
operational convenience) to be decided by the customer in advance and the
same to be above the minimum balance requirement of concerned account.
 Mandate from borrower authorizing bank to transfer amount over and
above threshold limit fixed by the borrower to the loan account of the
borrower to be obtained.
 The borrower could also directly deposit surplus amount to the loan
account.
Pre-requisite for permitting Overdraft facility
 Full disbursement of loan by borrower to restrict the loan to a specific
amount, within the sanctioned limit; (if borrower submits any request for
non-availment of remaining undisbursed portion of sanction limit, Branch
to take up matter with Data Centre through email
ho.starshakti@bankofindia.co.in for modification in sanction limit/drawing
power and thereafter system will permit to start the Overdraft Facility).

 Completion of Construction and ensuring end use of funds by post sanction
inspection;
 Completion of all required formalities including creation of EQM and
registration thereof and compliance of all terms of sanction.
 Completion of moratorium period and commencement of EMI.
Repayment
 Borrowers will have to remit EMIs as in the case of usual home loans.
Repayment by standing instructions for debit of account or ECS.
Drawing Power
 After commencement of EMI, DP in the OD will be reduced on monthly basis
to the extent of principal component of the EMI so that the OD is liquidated
at the end of the loan tenure (interest component of the EMI remitted will
service interest obligations. DP and SL to be reduced simultaneously on
every repayment of EMI.
Drawing Limit
 Drawing Limit (DL) represents the amount available in the loan account
over and above the DP of the account.
Authorization for permitting withdrawal facility-
 The facility for withdrawal to be authorized by the designated official at the
Branch (either the Credit Head of Branch Head) after completion of pre-
requisites.
Mode of Operation OD Facility-
 Cheque Book, Debit-cum-ATM Card, Internet Banking Facility, Mobile
Banking etc.
Rate of Interest:
 As applicable to Star Home Loan/ Diamond Home loan up to Rs.1.00 crore,
Over Rs.1.00 Crore ROI will be 0.25% above applicable rate.
Source: BC 110/16 Dt 01-04-2016
BOI Star Top-Up Loan Scheme
Target Customer
 All existing Individual home loan Borrowers having satisfactory
conduct of account for last 2 years are eligible.
 Borrowers should have satisfactory repayment history of minimum 24
months, after completion of moratorium period.
 Valid and enforceable mortgage should be available in home loan account.
Purpose of loan-
 All permitted bonafide purposes other than speculative purpose.
Quantum of Loan
 Based on valuation of property. Fresh Valuation report to be obtained. Total
loan including outstanding in existing home loan account not to exceed 75%
of market value of the property.
 Minimum Loan limits Rs. 2.00 lakhs .
Rate of interest-
 As applicable to Home loan plus premium of 0.50%
Repayment-
 The maximum permissible tenor of the loan will be the residual tenure of
underlying Home Loan or 15 years, whichever is lower.

Extension of mortgage-
 EQM for Top-up loans upto 5 Lakhs will not be mandatory. Fresh TIR/ search
report for the intervening period will not be insisted.
 EQM will be mandatory in all cases above Rs. 5 lakhs. Fresh TIR/ search
report shall be obtained for the intervening period.
 Title clearance report-Interim Report (Since last Title Clearance Report)
to be obtained along with latest property tax receipt, NOC from
Builder/Society as applicable etc.
 Valuation Fresh valuation of the property to be obtained for considering
the limit. However additional limit cannot be considered due to revaluation
before completion of 2 years from the date of earlier sanction.
Pre-requisite for permitting top up Loan
 Full disbursement of loan or undertaking to restrict the borrowing to a
specific amount. Facility to be considered only after full disbursement of
Home loan or on undertaking that no further disbursement in Home loan is
required.
 Completion of required formalities including creation of EQM\registration
with Cersai.
 Completion of all earlier sanction terms of Home Loan.
 Pre-sanction/Post-sanction is compulsory.
All other terms and conditions-As per star Home loan scheme/Star Diamond
Home Loan scheme
Source-BC 110/17 dt. 01-04-2016 & BC 112/34 dt. 14-06-2018
Loan against Property – (LAP)

Eligibility:
 People engaged in trade/commerce/business; Professionals & Self-
employed; High net worth individuals (HNIs); Salaried people; Proprietary
firms / Partnership firms; Limited companies; HUFs (Excluding Partnership
firms where HUF is a partner); Societies
Max. age limit:
 For salaries individuals: 60 years; For Non-salaried/selfemployed: May be
relaxed by 10 years till 70 years by sanctioning authority (Age at which
total amount of loan is to be repaid)
Quantum of finance:
Borrower class Maximum Advance (Rs. In lakhs )
Demand/Term Loan OD (Reducible) OD (Non-Red)
Individuals 500 200 * Nil

Professionals & Self
employed
Doctors (All should be 500 500 Nil
Doctors in case of joint
accounts)
Others-Prop. /Partnership 500 500 500
firm/Companies etc.

*Authority for consideration of deviation : NBGLCC within overall ceiling of
Rs.500.00 lakhs.
 Quantum of advance shall be Lowest of :-
o 40% of Market value (Margin 60%)
o 50% of Distress value (Margin 50%)
o 100% of Circle Rate/Registration value of same or similar property on
date of valuation
Net take home pay:
 For Gross monthly income up to Rs.1 lakhs -NTH minimum 40%
 For Gross monthly income over Rs 1 lakhs to Rs.5 lakhs -NTH minimum
30%
 For Gross monthly income over Rs.5 lakhs -NTH minimum 25%
 For firms/corporates: Min. DSCR=1.5
Repayment:
 12 years(excluding moratorium, if any)
Security:
 EQM of the property o Person in whose name property stands to be taken
as co-borrower or guarantor
 Enhancement of limit on Revaluation of property is not permitted before
completion of 2 years from the date of original financing.
 Not more than two loans against same property
Rate of interest:
 As advised from time to time.
Source:-BC 110/04 Dt. 01.04.2016 (Master BC)
Reverse Mortgage Loan (BC 108/74 Dt. 09.07.2014)

 The scheme is based on National Housing Bank (NHB) guidelines. It is seen
that in some cases, senior citizens have their own residential property with
high value but have no substantial sources of regular income for their
sustenance because of which they suffer miserable life despite having
owners of valued property.
 Reverse Mortgage Loan Scheme is meant for such senior citizens over 60
years of age, to get one time or regular income for their sustenance, against
the security (mortgage) of their self-owned & self-occupied residential
house/flat.
 Commercial property is not acceptable under the scheme.
 The scheme aims at providing liquidity to the senior citizen against security
of their residential house/flat & is due for repayment only when the
borrower dies, sells the house or moves out of his house.
 The loan amount is directly lent to the borrower.
 The loan amount is not to be used for speculative, trading & business
purpose.
 Min. loan amount is Rs.2 lakh & maximum of Rs.25 lakh.
Delegation :
 ZLCC up to scheme limit of Rs.25.00 lakh.
 Loan tenure not to extend beyond borrower’s age of 80 years. Loan tenure
for the age completed 65 years –Max. 15 years, Completed age above 65
years- Max. 10 years, subject to tenure of loan not to go beyond borrowers
age of 80 years.

ROI : As advised from time to time.
Disbursement of Loan:
 Lump Sump- To the extent of 50% of loan amount Max. Rs.12.50 lakhs or
such any amount notified by Govt. of India. Lump Sup amount to be used
for medical treatment of self, spouse or dependent if any. Balance amount
will be disbursed in periodic payments.
 Periodic payments (monthly/ quarterly/half yearly / annual) to be decided
mutually by borrower and Bank upfront. The amount disbursed will be
discounted value of loan amount as on date. Maximum monthly payment
shall be capped at Rs.50,000.00 or or such any amount notified by Govt. of
India.
Settlement of Loan and Foreclosure :
 Settlement of loan along with accumulated interest will be met by sale
proceeds of residential property. Loan will become due for payment on
death of borrower or last surviving borrower in case of joint loan. Or if
the borrower like to sell out the property and move out permanently.
Pradhan Mantri Awas Yojna (PMAY)

 PMAY Pradhan Mantri Awas Yojna (PMAY) is a mission started with an
aim ‘Housing For All’ (HFA) scheme by Government of India to be
achieved by the year 2022.The mission started in 2015 and will be
attained in seven years i.e., during 2015 – 2022. The Scheme will cover
all statutory towns as per Census 2011. List available at Website
WWW.nhb.org.in.
 Credit Linked Subsidy will be available for housing loans availed for new
construction and addition of rooms, kitchen, toilet etc., to existing
dwelling as incremental housing.
BENEFICIARY:
 Individual/s from Economically Weaker Section (EWS), Low Income Group
(LIG), MIG-I and MIG-II seeking housing loans from Banks, Housing
Finance Companies and other such institutions. The beneficiary family will
comprise husband, wife and unmarried children. The beneficiary family
should not own a pucca house either in his/her name or in the name of any
member of his/her family in any part of India.
PREFERENTIAL BENEFICIARIES :
 Preference under the scheme, subject to beneficiaries being from
EWS/LIG segments:
o Manual Scavengers, Women(with overriding preference to widows),
Persons belonging to Scheduled Castes ,Scheduled Tribes, Other
Backward Classes, Minorities,Persons with disabilities and
Transgender.
OWNERSHIP OF HOUSE :
 For EWS/LIG beneficiary under the scheme, the house constructed/
acquired with central assistance under the mission should be in the name
of the female head of the household or in the joint name of the male head
of the household and his wife, and only in cases when there is no adult
female member in the family, the house can be in the name of male member
of the household.

 For MIG-I and MIG-II, the house constructed should be in the name of either
of the spouses or both together in joint ownership will be eligible for a single
house.
CENTRAL NODAL AGENCIES :

 Housing and Urban Development Corporation (HUDCO) and National
Housing Bank (NHB) have been identified as Central Nodal Agencies (CNAs)
to channelize this subsidy to the lending institutions and for monitoring the
progress of this component.
LOAN AMOUNT / MARGIN :
 Maximum Loan Limit as per guidelines of Priority Sector Norms for Home
Loans;
o Centres with population above Rs. 10 Lakh: Loans to individuals up
to Rs35 Lakh (with value of house not exceeding Rs. 45 Lakh).
o Other centres with population below 10 Lakh: Loan to individuals up
to Rs. 25 Lakh (with value of house not exceeding Rs. 30 Lakh).
Margin:
 For loan up to Rs 30 lacs - Margin 10% on pure cost.
 N.B.- Where the cost of house does not exceed Rs.10 lacs. Stamp duty,
registration and other documentation charges can be included.
INTEREST SUBSIDY :
 Interest subsidy at the rate of 6.5% (EWS/LIG), 4% (MIG-I) & 3% (MIG-
II) for a tenure of 20 years or during tenure of loan whichever is lower. The
Net Present Value (NPV) of the interest subsidy will be calculated at a
discount rate of 9%.
 The subsidy will be available only for loan amounts up to Rs. 6.00 Lakh for
EWS/LIG, Rs. 9.00 Lakh for MIG-I & Rs. 12.00 Lakh for MIG-II.
 Interest Subsidy maximum Rs. 2.67 Lakh for EWS/LIG, Rs. 2.35 Lakh for
MIG-I & Rs. 2.30 Lakh for MIG-II will be credited upfront to the loan account
of beneficiaries through lending institutions resulting in reduced effective
housing loan and Equated Monthly Installment (EMI).
TAKE HOME PAY –
 Total deduction from gross Income, including proposed EMI on Home loan,
not to exceed 50% of the gross Income. NTHP should not be less than 50%
of gross income of the applicant for loan up to Rs.10 lakh. For loan over Rs
10 lakh total deduction from income including EMI on proposed home loan
not to exceed 60% of the Gross Income of the applicant.
Repayment:-
 20 years including moratorium up to 36 months. (loans given with tenor
more than 20 years can be considered under PMAY, but subsidy will be
limited up to 20 years or actual tenor whch eever is lower.)
Rate of Interest :
 As per extent guidelines of our home loan scheme.

Commercial & Institutional Credit
Financial Statements
Financial statements generally include:
• Balance Sheet (Including Auditors’ Report, annexures etc.)- Balance
Sheet is the statement of abstracts of various ledger accounts pertaining to
assets and liabilities of an entity, as on particular accounting date. As regards
contents of the Balance Sheet, it reveals position of assets and liabilities of the
firm/company on a given date and so far as nature is concerned, it leads us to
understand status/health of the entity.
• Profit and Loss Account with all annexures- Profit & Loss Account is an
account in the books of an organization to which incomes and gains are
credited and expenses and losses debited, so as to show the net profit or loss
over a given period. Thus, it is a financial statement showing a company's net
profit or loss during a given period.
• CMA Data- This contains various prescribed forms wherein the figures of
Balance Sheet and Profit & Loss account are re-classified in such a way, so that
the Lender can compute/analyse various ratios and ascertain the financial
position i.e. past performance and the projections of the company. Various
forms under CMA Data are as under:
- Form I: Particulars of the existing/proposed limits from the
banking system
- Form II: Operating Statement (Mostly, Profit & Loss Figures)
- Form III: Analysis of Balance Sheet
- Form IV: Comparative statement of current assets and current
liabilities
- Form V: Computation of Maximum Permissible Bank Finance
- Form VI: Funds flow statement
• Banker attaches paramount importance to the study of the financial
statements. A banker studies balance sheet of a firm/organization while
considering loan application. The main concern of banker is to find out whether-
o Firm/Organization is financially sound and stable i.e. solvent o its
liquidity is satisfactory
o profitability or earning capacity is up to the required standard and
o management of firm is competent and whether they can manage
the business
Balance sheet items
Liabilities
For the purpose of analysis, the liabilities are classified into three groups viz,
current liabilities, long term liabilities and owners’ funds.
Net Worth: This category consists of: Ordinary share capital, General reserve,
Revaluation reserve, other reserves (excluding provisions), Retained earnings,
Preference shares. All the items coming under owner’s funds form the net worth
of a concern after deduction of intangible assets.
Long Term Liabilities: All loans which are not repayable within one year from
the date of balance sheet are grouped under long term liabilities. Under long term
liabilities the items normally appear are: Term borrowings from banks, Term

borrowings from other term lending institutions, Debentures, Deferred payment
credits, fixed deposits, and unsecured loan not payable within 12 months period.
Current Liabilities: All liabilities which are repayable within a period of one year
are grouped under current liabilities.
Major items that come under current liabilities are: Short term borrowings
(including bills purchased & discounted) from (a) Banks (b) Others ,
Unsecured loans payable within a year , Public deposits maturing within one year,
Sundry creditors (Trade) for raw material and consumable stores and spares,
Interest and other charges accrued but not due for payment, Advance payments
from customers, Deposit from dealer, selling agents etc. (these deposits may be
treated as term liabilities irrespective of their tenure if such deposits are accepted
to be repayable only when the dealership/ agency is terminated), Instalments of
term loans, deferred payment credits, debentures, redeemable preference shares
and long term deposits payable within one year, Provident fund dues, Provision
for taxation, Obligation towards workers considered as statutory, Provision for
dividend, Gratuity payable within one year, Other provisions, Any other payment
due within one year.
Assets: Assets are the properties owned by business are grouped under four
heads Viz Fixed Asset, Current Asset, Non-Current Asset and Intangible Asset
Fixed Assets: Fixed assets are meant for use in the business as permanent capital
assets. These are otherwise known as block assets. It includes land, building, plant
& machinery, furniture & fixtures, vehicles etc. They also include capital work in
progress. Fixed asset of one concern may be a current asset for another. A sewing
machine is a fixed asset for the tailor but for the company manufacturing sewing
machines, it is a current asset.
Current Assets : Current assets are the liquid assets in a business concern
determining the solvency of it and are held for sale or conversion into cash during
the operating cycle of the business or with in twelve month. The operating cycle
of most of the business enterprises is usually less than one year. As they are easily
convertible into cash, they are called liquid assets.
Items coming under current assets are: Cash and bank balances; Fixed deposits
pledged as margin for BG and LC, Receivables arising out of sales other than
deferred receivables (including bills purchased and discounted by
bankers);Instalments of deferred receivables due within one year; Raw materials
and components used in the process of manufacture including those in transit;
Stocks in process including semi-finished goods; Finished goods including goods
in transit; Other consumable spares (12 months’ consumption for imported items
and 9 months’ consumption for indigenous items may be treated as current assets
for the purpose of assessment of working capital requirements); Advance payment
for tax; Pre-paid expenses; Advances for purchase of raw materials, components
& consumable stores; Monies receivable from contracted sale of fixed assets
during the next 12 months.
Non-Current Assets: Assets which are neither current in nature nor fixed in
nature are grouped under this head. These include all non-current assets such as
book-debts above 6 months, unquoted investments, loans and advances to
employees, officers and directors, loans to and investments in subsidiaries,
deferred receivables, advances to suppliers of capital goods and contractors, non-
consumable stores and spares, security deposit etc..

Intangible Assets: These are assets of value to the business, but are not of a
tangible nature. They are non-physical assets having quite a long period of
usefulness in the business. It Includes a) Goodwill b) Patents & Trade Marks c)
Copyrights d) Preliminary & other formation expenses e) Development Expenses
f) Deferred Revenue Expenditure g) Bad & Doubtful Debts h) Carried forward
loss etc.
Important Ratios being computed and analysed by the Bank
• Debt equity Ratio: The total outside liabilities of the firm is divided by the
Net worth to compute this ratio. Again Net worth is calculated by Capital +
Free Reserve – intangible asset. In that sense, bankers do not take into
account the intangible asset. For us, capital means Capital minus intangible
asset and we call it as Net Worth. An acceptable ratio is maximum 3:1 as per
Industry Norms. However, our bank accepts it at 4.00. The main purpose of
this ratio is to ascertain the relative financial stakes of the creditor’s vis-à-vis
the owners of an enterprises.
• Current Ratio: This is worked out to ascertain liquidity of the firm,
as the quotient of Current asset/Current Liabilities. If the ratio is 1, it
means that the current asset and liabilities are equal. Ideally, the ratio as per
industry norm is minimum 1.33. However, our Bank accepts it up to 1. If it is
more than one, which means that some funds have come other than current
liabilities as a source of current asset, which can only be from borrowers
contribution to current Asset/or sales proceeds of fixed asset. This portion of
borrower’s contribution is called NET WORKING CAPITAL. If current ratio is 1,
net working capital is zero, and if it is less than one, net working capital is
negative. It is also not advisable to have a much higher current Ratio; which
means that the borrowers long term funds are held up in current assets, may
be in stocks.
• Debt Service Coverage Ratio: This is calculated to assess the repayment
capacity of the unit out of the internal income generation. It is calculated at
the time of sanctioning a Term loan. It should be calculated for all the years
till repayment. It is calculated as the cash profit generated plus provision for
interest divided by total payment commitment. It is worked out as
NET PROFIT + DEPRECIATION + INTEREST ON TERM LOAN DIVIDED BY
INTEREST ON TERM LOAN + INSTALMENT. Higher ratio represents higher
repayment Capacity.
• Interest Service Coverage Ratio (ISCR) : PAT +Depreciation+ Interest
/ Interest
• Net Profit/Sales%: This is computed as: Net profit/sales*100. It shows
the relation between the final profits of the company to sales.
• Activity Ratios : Inventory Turnover Ratio: Sales/ Avg. Stock , Debtor
Turnover : Sale/ Avg. Debtor , Debtor Velocity =Avg. Debtor/ sales *12 or 365,
Creditor Velocity =Avg. Creditor / Purchases *12 or 365, Raw
Material Holding =Stock of Raw material/ Raw Material Consumed *12 or 365,
Stock In process holding: Stock of stock in process / Cost of Production *12
or 365
Earnings
• Total income-Sum of interest/discount earned, commission, exchange,
brokerage and other operating income.

• Total operating expenses-Sum of interest expended, staff expenses and
other overheads.
• Operating profit before provisions-Net of total income and total
operating expenses.
• Net operating profit-Operating profit before provision minus provision for
loan losses, depreciation in investments, write off and other provisions.
• Profit before tax (PBT)-(Net operating profit +/- realized gains/losses on
sale of assets)
• Profit after tax (PAT)-Profit before tax – provision for tax.
• Retained earnings-Profit after tax – dividend paid/proposed.
• Average Yield-(Interest and discount earned/average interest earning
assets)*100
• Average cost-(Interest expended on deposits and borrowings/Average
interest bearing liabilities)*100
• Return on Asset (ROA) - After Tax-Return on Assets (ROA) is a
profitability ratio which indicates the net profit (net income) generated on total
assets. It is computed by dividing net income by average total assets. Formula-
(Profit after tax/Av. Total assets)*100
• Return on equity (ROE) - After Tax-Return on Equity (ROE) is a ratio
relating net profit (net income) to shareholders’ equity. Here the equity refers
to share capital reserves and surplus of the bank. Formula- Profit after
tax/(Total equity + Total equity at the end of previous year)/2}*100
• Accretion to equity-(Retained earnings/Total equity at the end of previous
year)*100
• Net Non-Interest Income-The differential (surplus or deficit) between
non-interest income and non-interest expenses as a percentage to average
total assets.
• Net Interest Income (NII)-The NII is the difference between the interest
income and the interest expenses.
• Net Interest Margin-Net interest margin is the net interest income divided
by average interest earning assets.
• Cost income ratio (Efficiency ratio)-The cost income ratio reflects the
extent to which non-interest expenses of a bank make a charge on the net
total income (total income – interest expense). The lower the ratio, the more
efficient is the bank. Formula: Non interest expenditure / Net Total Income *
100.
Infrastructure Finance
• Why is a standardized framework necessary for PPP projects?
Standardized framework is required for enabling a smooth transition from
public sector projects to Public Private Partnerships (PPPs) and also for
adoption of best practices across projects and sectors. They enable project
authorities to save on the time and costs involved in structuring complex PPP
projects and preparing transaction documents. They help avoid costly mistakes
and also afford protection to individual entities and officials against making
errors and answering for them.
Why is the selection of a credible project sponsor important?-One of the
critical factors that determine the success of a PPP project is the selection of a
credible project sponsor. PPP projects are highly capital intensive and require

provision of essential infrastructure services to users on a long-term basis. A
bidder lacking in sufficient technical and financial capacity can well jeopardize
the project and compromise the quality of services that the government is
committed to provide.
• What are single and two-stage bidding processes?-Single stage
bidding refers to the process of selecting the successful bidder on the basis of
the lowest financial offer received in response to a tender. In the two-stage
bidding process, the first stage involves the determination of the technical and
financial strength of the applicants with reference to predetermined eligibility
criteria and only firms that meet the criteria are pre-qualified for the second
stage of bidding. The second stage of bidding typically involves obtaining
financial bids from the pre-qualified bidders.
• When is two-stage bidding used?-Single stage bidding is normally
followed for smaller contracts where the purchase of goods on services can be
defined with some degree of precision or the works can be executed without
involvement of much skill. In larger and complex contracts where the emphasis
is on quality of works, goods or services, both PPP and otherwise, two stage
bidding is generally adopted.
• What factors should be considered for evaluating technical
capacity?-For the purpose of evaluating the technical capacity of a bidder, its
experience and track record in building infrastructure projects should be
considered. This can be measured either from the construction work
undertaken/ commissioned by him, or from revenues of PPP projects, or from
both, during a pre-determined number of years preceding the date of
application. The technical capacity of a bidder can be assessed on the following
parameters:
1. Project experience on PPP projects in the specified sector;
2. Project experience on PPP Projects in the core sector;
3. construction experience in the specified sector; and
4. Construction experience in the core sector.
The weightage for each of the above categories should be pre-determined and
specified in the RFQ document. A minimum score comprising the threshold
capacity may be specified as a condition of eligibility
• How should financial capacity be evaluated?-For the purpose of
financial capacity, the applicants should have a net worth equivalent to 25 per
cent of the estimated capital cost of the project for which the bids are to be
invited. This would ensure that pre-qualified applicants have sufficient financial
strength to raise the equity and debt necessary for undertaking the project. In
exceptional cases, the Authority may also prescribe a minimum annual
turnover and/ or net cash accruals as an indication of the Applicant’s cash flows
and financial health.
POLICY GUIDELINES –Short Term Loan (BC 110/189)

• Tenure : Door to door tenure not to exceed one year
• Purpose: To existing borrower for urgent/ unforeseen reasons, to new
borrower for gaining entry into working capital or term loan consortium. May
be sanction with in term loan granted pending full tie up/ Financial Closure /
Joint Documentation.

• Repayment: Monthly instalment with/without Moratorium or in bullet
payment.
• Maximum Limit - Rs 500 Crores (other than PSU) , For PSU as per
delegation.
• Minimum threshold parameter for higher limits under STL OF Rs 200 crore
above other than PSU a) CR: 1.25:1, DER: 3:1, TNW Rs 200 Crores, Source
of repayment should be ascertained. For PSUs and limit upto Rs 200 crores
for other than PSU the normal financial parameter as per Credit policy will be
applicable.
• Delegation:
a) All delegatees within their respective authority except (b)
mentioned below.
b) Minimum delegation to consider/sanction unsecured STLs to
borrowers (without any principal or collateral security) shall rest with
Management Committee of the Board. (HOBC-113/062 dated 03.07.19)
 Request for short term loan should be appraised in the same manner
as any fund based facility including financial analysis, credit rating,
entry level norms, status report, CPA etc.
 Short term loans should not be granted for investment in capital
market/investment/real estate and should be stipulated.
Loan against TDR (BC 108/154, 109/78, 109/228, 110/59, 111/70) &
113/64
• Margin upto 15% Sanctioning Authority
• Margin upto 10% ZLCC
• Margin below 10% to upto 5% NBGLCC
• Margin for staff is 0% and authority all delegatees.
Loan against FCNR Deposit -Margin
• Normal 25%
• Up to 20% Scale III
• Up to 15% Scale IV
• Below 15% up to minimum of 5% Scale V
TDR General
• As per Branch Circular 110/68 dtd 11.07.2016 in respect of Advances
against security of Term Deposit with Bank, branches to ensure that the
value of (Deposit + Interest} is always higher than the (Loan + Interest
+ TDS} at all times.
• Rate of interest; For self-1% above the normal rate of deposit- B.C-
109/228 dated 19.3.16
• ROI Concession for Deposits in the name of borrowers: in the range of
0.50% over the relative deposit rate- ZLCC In the range of more than
0.50% over the relative deposit rate – NBGLCC
• ROI concession for deposits in the name of third party
domestic/NRE/FCNR/RFC: concession upto 1% on applicable rate –ZLCC
> 1.0% NBGLCC
• Third party Loan: 2% above deposit rate or 1 year MCLR+ BSS + 2%p.a.
whichever is higher

• Loan against FCNR-B/RFC deposit – 1 year MCLR+BSS+2.00% for loans
and for OD - 1 year MCLR+BSS+3.00%
• Premature withdrawal of NRE/FCNR not available if loan is granted
• Existing loans not conforming to this shall not be rolled over after maturity
• Staff Loan: 1% over deposit rate staff, retired staff, spouse of deceased
staff/deceased retired staff against deposits standing in their names
• Loans to be given against security printed receipts not against
confirmation advice No loan against deposit of other banks PSRS- TDR
loan above 1cr in rural branch, 2cr in semi urban , & 10 cr in urban /Metro
branches
• Prior permission of controlling office for disbursement of loan /OD/CC to
third parties.
• On all Loans/ Overdraft accounts against Term Deposit Receipts
having different rate of interest and different maturity dates-
Weighted Average Interest should be charged on such accounts
• In all existing loan against Term Deposits accounts, wherein
difference between loan outstanding and TDR value is less than 5%,
branch should contact the concerned borrower and improve the
margin and review the account as per mentioned delegation.
• Once the outstanding in Loan/OD account equals the maturity value
of deposits and the borrower fails to bring down the outstanding,
the deposit pledged be appropriated for liquidation of loan/OD with
prior approval of Zonal Manager.
• In case of TDR advances, where outstanding amount exceeds the
sanctioned limit, branches should send the notice to the borrower
for regularising the account within a period of 15 days failing which
interest to be charged on the clean /unsecured portion of the Loan
as applicable to clean advances.
• Branch Level delegation for sanction of Loans/ Overdraft against
Deposits/ Term Deposit Receipts of the Bank to institutions like
Government Departments, Public Sector Undertakings, Semi Govt.
Organisations, NGOs, Trusts, Co-operative Societies/ Co-operative
Banks, Education Society/ Company etc (entities of similar nature)
is as under:
(i) Rural Rs. 50 lakhs

ii) Semi urban Rs.100 Iakhs
iii) Urban/ Metro Rs.500 lakhs
The sanction of loan/ overdraft above cut off limits as above will fall
within the delegation of SZLCC.
LIC POLICY/NSC/KVP
• Loans against LIC policy(endowment policy) should be based on surrender
value with a margin of 20% minimum
• Assignment of the policy should be registered with LIC
• Loans should not be given to whole life policy as benefits are payable only
on the death of the policy holder.

• NSC/KVP loans can be given after 3 years of purchase date.
• 75% of face value can be given. Bank’s lien should be registered with
post office
• Repayment should be carefully fixed as NSC /KVP cannot be prematurely
closed easily.
Policy Guidelines for loan against Gold Ornaments and Jewellery – For
Non-Agricultural purposes. BC 111/127 dtd 17.11.2017
• Individuals who maintains SB/CD account with the branch are eligible for
meeting their expenses related to business activities, marriage, medical
treatment, education and for other bonafide purposes.
• The tenor of the loans shall not exceed 12 months from the date of sanction.
• Maximum loan against Gold Jewellery for Non-Agriculture purpose is
Rs.10.00 lacs , No Minimum limit
• LTV will be 75% of appraised value of gold ornaments of 22 carat fineness
for short term loan not exceeding one year, 70 % for term loan above one
year but not exceeding two years, 60% of appraised value for term loan
above two years upto Max 3 years.
• Interest will be charged to the account on monthly rest.
Delegation
• Delegation is dependent on 3 aspects
a) Whether advance is secured or unsecured
b) Credit Rating
c) Financial Parameters
• Secured advances means secured by tangible primary security realizable
within reasonable time
• Cash/deposit margin, earmarking of working capital limit, guaranteed by
banks/FI etc. in case of non-fund based limit
• Credit rating applicable to all FB/NFB limits of Rs.10 lacs & above
• SBS model of credit rating applicable for limit from 10 lacs to below Rs.1
cr or turnover over 50 lacs below Rs.5 cr
• SME model of credit rating applicable for Limit of Rs.1 Cr to below Rs. 5
Cr. Turnover of Rs. 5 cr. To below Rs.50 Cr.
• MS rating model for limit above Rs.5 cr to 30 cr or Turnover above Rs.50
cr to 150 cr
• HLC rating model applicable to Rs.30 cr & above or turnover over Rs.150
cr
• Project finance model – RG
• NBFC model for NBFC accounts
• Entry level norm for SBS, MS, HLC is 5, NBFC is 4
• Generic infra – viz. power, greenfield, Roads etc. 7
• Real Estate involving Commercial projects-6
• Other real estate-7
• DER- Bench mark 3, as per Credit policy 4
• Current ratio 1.33 & 1 respectively

• DSCR 1.50 & 1.25 respectively
• All LCB proposals beyond branch delegation to be sent to HO direct
• All MCB proposals beyond their authority to be sent to ZO. If the proposal
falls within authority of NBGLCC, ZO to submit the proposals to NBGLCC.
If the Proposal falls within HO authority, the proposal to be sent to HO
directly by ZO.
• External Credit Rating is applicable for Credit Exposure of Rs 25.00 crore
and above (HOBC 112/103 dt 11.10.18).
• External Credit Rating Agencies approved by RBI for obtention are CRISIL,
ICRA,CARE , India Ratings, SMERA, Brickworks and Infomerics.
ADHOC/TOD
• Adhoc can be considered only by Scale V / ZLCC & above
• For WC adhoc limit up to 25% or regular limit subject to availability of DP
or normal lending powers (whether secured or unsecured as the case may
be)
• Ad hoc beyond 25% to be considered only by sanctioning authority under
whose authority the delegation falls.
• Adhoc can be granted for maximum of 90 days
• Over limit also up to 25% of regular limit subject to availability of DP or up
to 25% of normal lending powers of the delegate (whether secured or
unsecured as the case may be)
• Maximum period of over limit is 30 days (normal 7 to 10 days)
• Maximum of adhoc and over limit shall not exceed 180 days in a financial
year
• A/c overdue for review up to 3 months adhoc can be given only by ZLCC
onwards. No adhoc if overdue for review beyond 3 months
• NO TOD/Adhoc in new accounts for 6 months
• Aggregate TOD for group accounts put together not more than twice the
limit for single account
• Interchangeability of limit from Scale IV & above
• Maximum period 90 days
• Can be done within FB limits within NFB limits or from FB to NFB limits
• Not to be done from NFB to FB limit or from secured to unsecured limits
• Only chief incumbent can exercise lending powers for up to scale III
branches In scale IV first two levels can exercise powers
• 2nd level delegates for such branches upto scale III branch can sanction
TDR loan up to Rs.5 lacs & Festival advance
• FB limits sanction valid for 6 months unless otherwise mentioned. NFB
sanction valid for 3 months
Guarantees
• For issuing BG with onerous clauses 115 % margin needed
• Issuing BG beyond 3 years ZLCC/Scale VI onwards
• Negotiation of IBN /FBN for non-constituents on casual basis prohibited.
Regular limit to be considered.

• Bank Guarantee may be required by an enterprise for a variety of reasons.
Quantum of BG required for procuring raw materials can be assessed from
the formula given above. But very often an enterprise may be required to
submit BG in lieu of security deposit or earnest money. In such a case
requirement of funds depend on the following factors and guarantee limit
may be sanctioned accordingly.
a) Number of tenders likely to be submitted by the enterprise
b) At any point of time how many tenders are live/outstanding
c) Funds blocked in tender deposits
d) Period for which these deposits are held by the beneficiary.
Guarantees are broadly of two types:
Financial:
1) In favour of customs/Excise/Tax authorities towards
tax/duties payment etc.
2) Favouring courts for release of amounts
3) for guaranteeing loan repayments
Performance:
1) In lieu of earnest money deposit
2) In lieu of tender deposits
3) In lieu of security deposits
4) To obtain advance payments
5) For performance in terms of any agreed contract
6) Bidding/Tendering for project contracts
7) for securing retention amount
8) for payment for services/supplies made/rendered
9) to obtain mobilization advance etc
Disbursement Precautions
• The working capital limit sanctioned should not be disbursed in one

go
• Where TL & WC are sanctioned TL should be disbursed (in stages of
progress of project) first and after commission and trial run WC
should be disbursed
• Auto loan not to be financed against sub dealer invoice
• DD PO should contain words to the effect that amount is from loan
account and in case vehicle not disbursed should be returned to bank
• Builders a/c no particulars should be contained in the NOC itself.
• CERSAI registration should be done before actual disbursement and
CERSAI search should be made before sanction.
• LSR/TSR (legal scrutiny report/title Search report) should be
approved by branch incumbent up to Scale III branch and Credit
Incharge or Branch Incumbent in Scale IV and above branches.
• 30 years devolution of title should be discussed. Should contain no
adverse comments/clauses
• Certified copy of title deed should be obtained for record and should
be compared with original

• Description of property in both lawyers report and valuation report
should tally
• For loan above 10 lac status report of machinery supplier obtained.
For above 1 cr credit report of the supplier obtained.
• Income tax return submitted should be verified from Income tax site.
• Company balance sheet should be verified from ROC site.
Sanction of Loans- Some Points

• Up to Rs 5 cr limit should be based on projected turn over in case of
new account. Projection should be realistic and based on sound
assumptions Minimum WC should be assessed at 20% of projected
turnover (25% for MSEs and 30% for digital portion of the turnover-
111/45). But disbursement should be made as per progress in
achieving the projection. (Nayak Committee recommendation ) For
existing account projection should be based on past performance
along with orders in hand with proposed expansion if any
• For traders this method may be used but should be careful to exclude
sundry creditors for arriving at DP
• For above Rs.5 cr Maximum permissible bank finance (MPBF) method
(2nd method) or Cash Budgeting Method is available.
• Assessment of projected cash flow should be made properly. Peak
level cash deficit should be used for funding.
• Sanction should be conveyed to borrower & guarantor and their
acknowledgement obtained. All important terms to be incorporated
in the sanction letter.
• Both pre disbursement & post disbursement conditions should be
clearly and separately spelt out
• CPA procedure is applicable for limit (except retail loans excluding
LAP)of Rs.50 lacs & above
• CPA III is applicable for limit of Rs 5.00 Crores and above
Assessment of Letter of Credit Limit

• It is calculated based on a) Total Purchase of Raw Material b) out of
which under LC c) Average period from date of opening LC to date of
meeting Liability under LC including usance period _ days.
• LC requirement is (b*c/365)
Appraisal- Some Points

The following should be taken into account for appraisal.
• Technical appraisal-This takes care of technical feasibility of the
project, and machinery required type of manufacturing process etc
and its cost. Relevance of the selection of particular type of
technology should be addressed here
• Economic & Financial viability: This is done through various
projected financial ratios, break even analysis, Internal Rate of
Return (IRR) Cash flow and fund flow statements and compared to
actual performance. General conditions of similar industries
operating in the area are also to be studied.

• Market Research: To understand the demand for the product and
consumer preferences also similar products available in the market
and their performance to assess whether this product will be able to
compete successfully with other products quantity, quality wise and
price wise.
• Political scenario: Like change in policy and policy to similar
industries, their consistency etc is studied to gauge the risk on the
unit from such existing and likely changes in the policy vis-à-vis the
priority of the govt.
• Availability of utilities: like raw materials, cheap uninterrupted power
supply, stand by back arrangement, labour, logistics, markets etc.
• Execution risk as to experience of the promoters is also assessed.
Credit Policy of the Bank

• Bank’s Credit Policy was last approved on 19.03.2019 in the Board
Meeting and circulated vide HOBC 113/024 dated 18.04.19..
• This policy has 22 Items and 17 annexures.
• It comprehensively covers, inter alia :
a) Purpose of Credit Policy
b) Bank’s Credit Philosophy, Credit Culture, Vision, Mission
c) All aspects relating to Credits, investments, leasing, factoring
etc.
d) Guidelines on credit delivery, credit expansion, due diligence,
appraisal of credit exposure, exposure norms, Industry exposure
e) Collateral and Margin Norms.
f) Pricing norms
g) Resolution of stressed assets and exit policy guidelines
• Its Annexures, inter alia, contain guidelines on:
a) Consortium/Multiple/Joint Lending Arrangement
b) Sharing of information
c) Risk Rating
d) Credit process Audit
e) Group Concepts
f) Check points for mitigating advances related frauds
g) National Disaster Management Authority NDMA Guidelines
MCLR (Marginal Cost of Fund Based Lending Rate):

1. Applicable from 01.04.2016 for all new rupee loans sanctioned and
credit limits renewed.
2. Five MCLRs of various maturities published monthly- viz. overnight,
1 month, 3 months, 6 months and 1year.
3. MCLR prevailing on the date of first disbursement will be applicable
till the date of new reset.
4. BSS: Business Strategy Spread of 0.30 % is added to MCLR for all
loans

5. CRP: Credit Risk Premium: applicable to a particular type of advance
is added to the MCLR+BSS to arrive at the applicable ROI Thus
ROI = MCLR + BSS+ CRP
6. No Tenor Premium is to be charged in MCLR now.
Difference between Base Rate and MCLR
Base Rate MCLR
ROI changes as and when Base ROI will be rest every year or lower
Rate changes intervals linked to first date of
disbursement.
Not linked to maturity buckets Linked to 5 maturity buckets
Rate as on the date of sanction

Rate as on the first date of
disbursement / date of renewal of
limits till the next reset date.
Tenor Premium loaded Tenor premium not to be loaded.
7. Every bank has to review and publish their MCLR on various
maturities once in a month.
RBLR-Repo Based Lending rate: Bank is gradually shifting to Reposed lending

rate system. It is based on Repo rate will rates will change along with change
in Repo rate by RBI. It includes Repo rate + Mark-up+CRP.
Exposure Norms
Banks’ exposure should not exceed
i) To individual borrowers including Public Sector undertakings 15% of
Bank’s capital funds (20% in case of exposure on account of
infrastructure).
ii) To group borrowers 40% in case of Bank’s capital funds (50% in case
of the additional 10% exposure is on account of infrastructure
projects, i.e. power, telecommunication, roads and ports).
iii) Board of Directors can approve additional exposure upto 5% of
capital funds in case of single borrowers and group of borrowers
provided the borrower is willing to Bank’s disclosure of their name in
Bank’s Balance Sheet
Exposure to Capital Market
Bank’s aggregate capital market exposure is restricted to 40% of the net worth of
the bank on a solo and consolidated basis; consolidated direct capital market
exposure restricted to 20% of net worth to ensure compliance with RBI guidelines.
These RBI guidelines are subject to change and branches to comply with guidelines
advised by Head Office from time to time.
Exposure to NBFCs
Effective from 1st April 2007, exposure to single NBFC should not exceed 10% of
capital funds and in case of NBFC-AFC, it should not exceed 15%. The exposure
can go upto 15% and 20% of capital funds for NBFC and NBFC-AFC respectively

provided the exposure in excess of 10% and 15% is on account of funds on-lent
to infrastructure sectors
Discounting of Lease Rentals and Future Cash Flows-110/156 dt 11.11.16
Salient Features:
1. LRD falls under real estate exposure. Hence ACC approval required
from Head Office.
2. All legal entities permitted to borrow under credit policy and not
specifically bared viz Proprietorship firms, Partnership firms,
Individuals, corporates, Trusts and HUF
3. Accounts with Risk Weight up to 100% for externally rated. Where
external rating not applicable, minimum entry level credit rating to
be considered.
4. Minimum Rs.5lacs Maximum amount Rs.500lacs.
5. Up to 70% of net monthly rent due and receivable for the estimated
period of lease discounted.
6. Net monthly rent= monthly rent after netting of TDS, Service tax,
statutory dues, advance rent, security deposit, maintenance charges
(if borne by lessor)
7. FACR (RVS) Min=1.33
8. Eligible amount minimum of 70% of net monthly rent/NPV of the rent
for the estimated period of lease discounted/FACR=1.33.
9. The period of the initial lease should be for at least 3 years with a
provision in the lease agreement for further renewal.
10. Repayment period maximum 10 years or estimated lease period
whichever is less also duly taking in to account balance life period of
the asset.
11. ESCROW Account to be maintained for depositing all lease rentals
emanating from the identified activity/asset.
12. However, 1% concession in ROI shall be permitted in case of
execution of Tri-party agreement.
STOCK Cash: HOBC: 95/52, 101/5, 111/75

Financing against shares
As per RBI guidelines, Financing Should not be granted to partnership and
proprietorship firms against primary security of shares.
As per RBI guidelines, in the case of individual borrower amount of advance
against share and debentures should not exceed Rs. 10lacs in physical form and
Rs.20lacs in Demat form. As per our current bank guidelines advance may be
considered only against shares in demat form.
Loan can also be granted against Sovereign Gold bonds in demat form. Maximum
Rs.20lacs. For staff, maximum limit is Rs.5lacs.
Margin-40%
PRIME CORPORATE WELCOME OFFER-HOBC-113/46 dated 04.06.2019
Salient Features:
 For new accounts including takeover from other banks.

 Amount Rs.5Crores to below Rs.25Crores.Term loan, Fund based and non-
fund based facilities can be given.
 For internally rated qualifying for entry level or better. If rated externally,
then rating BBB or better in addition to internal rating of entry level or
better.
 Valid upto 31.03.2020 (Extendable at bank’s discretion)
 Minimum security coverage at distress sale value (for Immovable
properties):
a) Scenario-I-Primary Security-Min. 1.33 and Minimum CCR-0.50
b) Scenario-II-ACR-1.75 or more (with minimum FACR of 0.50 in the form
of land and building excluding plant and machinery). No open plots i.e.
not demarcated and without boundaries/fencing and agricultural land.
 Rate of interest:
Internal Credit Rating Rate of Interest
HLC1/MS1/SME1 1Year MCLR+BSS+CRP 0.00
HLC2&3/MS2&3/SME2&3 1Year MCLR+BSS+ CRP 0.50
HLC4&5/MS4&5 and SME4&5 1Year MCLR+BSS+ CRP 1.00
 Concession:
Collateral Coverage/FACR Interest Concession
<60% Nil
60% to <80% 0.10%
80% to <100% 0.20%
100% and above 0.30%
A cash collateral will fetch additional concessional upto maximum of 1%
subject to minimum Tenor MCLR. No further concession in the pricing under
the scheme.
 Service Charges
Internal Credit Rating Service Charges
HLC1/MS1/SME1 Waived
HLC2 and 3/MS2 and 3/SME2&3 25% of applicable charges
HLC4/MS4/SME4&5 50% of applicable charges
 BG Commission/LC charges
Internal Credit Rating Service Charges
HLC1/MS1/SME1 50% of applicable charges
HLC2 and 3/MS2 and 3/SME2&3 60% of Applicable charges
HLC4&5/MS4&5/SME4&5 75% of Applicable charges
 Branches to take permission of GM-NBG after doing 5 cases and/or business

of Rs.30Crores.
 In case of takeover, takeover norms of the bank to be complied.
 Scheme valid upto 31.03.2020 subject to extension by board approval.
Discounting of Bills under LC-HOBC-105/169 dated 27.01.12

and 111/29 dt. 22.05.17

 No branch to undertake discounting of bills under LC for non-constituent
borrowers on casual basis.
 All LC/Acceptances/Confirmations/verifications to be received through
SFMS only. No physical LCs to accepted/entertained.
 The exposure in respect of bills negotiated backed by LCs to be treated as
exposure on LC opening bank.
 Bills to be negotiated under LC with financial cap allotted for the LC issuing
bank HO-RMD.
 Branches to be satisfied with the underlying transaction. Each transaction
to be supported by documents evidencing actual movement of goods.
 In case of DA bills, discounting/negotiation should be undertaken after
receipt of acceptance from LC issuing bank which should also be
independently verified.
 Funds to be parted on receipt of confirmation of LC and acceptance that
payment along with other usual charges will be made on due date.
 Transport documents submitted under LC should be original documents.
 Designated branches must ensure that:
 LC is genuine
 Documents are accepted by LC issuing bank in respect of DA
bills
 Underlying transaction is not of accommodation in nature.
 All LC/Acceptances/Confirmations/verifications to be received
through SFMS only. No physical LCs to accepted/entertained.

Credit Monitoring & NPA Management
Credit Monitoring
Credit monitoring is nothing but all those steps taken by the Bank to ensure
that the standard asset (advance account) remains standard for ever. Ideally
speaking, credit monitoring starts the moment request for loan is received.
The purpose of credit monitoring is:-
 To maintain asset quality – Standard accounts to remain as standard
for ever. To prevent slippage of account to NPA category.
 To ensure compliance with pre disbursement /post disbursement
terms & conditions of sanction
 To ensure end use of funds
 To ensure timely repayment of principal, interest & other charges in
loans
 To prevent diversion of funds at all times during currency of advance
 To ensure/monitor that projections of sales/cash flow/profitability are
achieved
 To detect early warning signals and take effective corrective steps to
safeguard Bank’s interest
Credit Monitoring of an account can be at three different stages:-
• Pre sanction stage
• Post sanction –Pre disbursement stage
• Post disbursement stage
Pre Sanction Stage:
It consists of project appraisal like technical, economic, commercial, financial
appraisals including market appraisal.
Management Appraisal: It includes investigation into the integrity,
qualification, experience, track record, capacity and character of persons
behind the project.
Importance of personal inspection/visit: - No document can substitute
what you can observe in person while on a visit to the premises of the borrower.
Records and returns do not capture many small things which you can observe
during inspections which can have a bearing on the exposure.
CIBIL Reports- If many enquiries are present in the report, the borrower may
be credit hungry, trying to obtain loan from other banks. Also take individual
reports of the directors and also group concerns to ensure that they do not
have abnormal debts and this company has not guaranteed the debts of such
group company.
Income Tax/Wealth Tax Returns- Fake income tax return frauds are on the
increase. Verification of the tax return is of utmost importance. Along with
acknowledgement, ask for tax paid challan and this can be verified online from
the site www.tin.tin.nsdl.com. Input challan identification number, BSR code
of bank/branch where tax remitted, amount and date. The online details
should match with what you have fed. In case of error it is sure that the challan

is not genuine. Also ask the borrower to generate his 26Q from the system
on your presence which should tally with what he has submitted. In case of
audited balance sheet ascertain the genuineness from the CA who audited the
same. Also check with ICAI website for authenticity of the CA. Other figures
in the balance sheet should be cross checked by inspection as the scale of
operation, vat returns etc.
Other Pre Disbursement Tools

1. Obtaining Status/ Credit Report from bankers.
2. Issuance of sanction letter containing all terms & conditions and getting
acknowledgement signed by borrowers & guarantors.
3. Execution of all relevant documents and creation of all stipulated
securities as per terms of sanction.
4. Registration of charge with ROC/CERSAI/RTO/Post Office/LIC or such
other authorities as per the law within the time limit prescribed.
5. Vetting of Documents & CPA process wherever applicable (limits of Rs.
50 Lakhs or above except retail loans (but for Loan against property of
Rs. 50 Lakhs & above CPA is applicable).
6. Carrying out other due diligence of borrows/guarantors by obtaining
CBD 23 and verifying the particulars therein.
7. Not to disburse working capital until machinery is commissioned & trial
run is successful.
8. Remittance of funds directly to suppliers (after verifying their bank a/c
and status report from supplier’s banker where the invoice value of total
supply is Rs.10 Lakh and above) and obtaining receipts for record.
Other indicators/signals of adverse nature-Even though SASCL throws up

irregular accounts and branches need confine their focus on those irregular
accounts. However, identification of the reasons for irregularity is of utmost
significance. Unless the malady is correctly diagnosed, correct line of
treatment may not be possible. If correct treatment is not administered, it may
be ineffective.
Corrective Action Plan-The medicine depends upon the malady diagnosed.

This may include the following depending upon type of problem.
• Holding on operations in the account for temporary aberration
• Giving moratorium for repayment (delay in project implementation)
• Rescheduling of instalments (ballooning repayment/postponement of
repayment)
• Infusion of fresh capital by the Borrower
• Converting pre sale (stock) finance to post sale (bills/book debts)
• Considering additional long term loan
• Restructuring of loans etc.
Special Mention Accounts (SMA) (BC 107/242 Dt. 29.03.2014) RBI has
come out with a frame work to identify early the distress in borrowal accounts

so that corrective action can be put in place before it is too late. The
classification of a borrowal account will be as follows:
• SMA 0 – Where interest/principal are not overdue for more than 30 days
but showing signs of incipient sickness
• SMA 1- Where interest /principal payment is overdue in between 31 to
60 days
• SMA 2- Where principal/interest payment is more than 60 days but not
more than 90 days.
Reporting of SMA 2 accounts over Rs. 5.00 Crore to RBI-CRILIC (Credit
Repository of Information in Large Credit on weekly basis.
Reporting of SMA 0, 1 and 2 accounts to RBI on quarterly basis.
RBI will insist on accelerated provisioning for these accounts if not reported.
New Health Codes introduced:

Health Code 13 - Restructured non CDR accounts
Health Code 14 - Restructured CDR accounts
Health Code 15 - Infrastructure accounts restructured due to
extension of DCCO beyond 2 years.
Health Code 16 - Non-infra accounts restructured due to
extension of DCCO beyond 1 year.
Staff clean Overdraft will be reviewed under Credit inspection if it is in order.
Red flagging of Accounts: For accounts having exposure of Rs. 50 Crores

and above where there is suspicion of fraudulent activity thrown up by the
presence of one or more Early Warning Signals (EWS).
Once the account slips to SMA 2 category, a corrective action plan (CAP) to be
put in place within 45 days which includes Rectification, Restructuring,
Recovery.
 SASCL means System Asset Classification List
NPA are marked through the system.
 DC generates SASCL reports of the accounts which are likely to
become NPA on a particular date i.e. Batch Operations Date (BOD)
 Accounts may appear in the SASCL list due to
 Overdue for more than 90 days
 In sufficient Credit
 No Credit
 Review Expired
 Stock Expired
 Percolation
Post Sanction Review System

o To improve quality of sanction/ Appraisal
o Accounts with Rs 2.00 Lakhs and above
o Branches/ Zones/ NBGs are required to send copy of sanctioned
proposals (New/ Review) to the Zonal Office/ NBG/ HO along with
monthly reporting statement.
o Time limit: 7th of the succeeding months.

o Key parameter to be scrutinized are Delegation, Prudential norms,
compliance to the laid down guidelines of the Bank/ RBI as regards
o security, margin, rate of interest and financial ratio
o Credit rating Exercise is done properly
o Staff Housing Loan, Vehicle Loan, PF Loan, Clean OD as also advance
to public against Deposit and against gold/ silver ornaments/ articles
are exempted
o PSRS Menu has been automated in the Finacle for generation of
statements.
o It is based on sanctioning Authority entered in ACLHM limit details
will consider sanction level entered as 1- Branch in ACLHM
o M1: Statement of monthly overdraft Business
o M2A:Statement of monthly over-limit Business
o M3: Statement of Bills/ Cheques purchased on Casual Basis.
M4: Statement of Advances sanctioned d for a month.
o M5: Monthly statement of fresh disbursement.
o To ensure that the disbursing officer, before parting with the Bank's
funds, has taken all necessary measures for creation of security and
safety .
o Verification of compliance of pre-disbursement terms of sanction by
an independent officer.
o If any condition could not be complied with, Brach should take
approval for the deviation from the Authority.
o Scope of Coverage : FB and NFB limit of Rs. 50.00 Lakhs and above
for new/ additional and
o CPA For Retail Loans: Only for proposal under BOI loan against
property of Rs. 50 Lakhs and above
o CPA for TDR loan: Against third party receipts and/or receipts of
the other branches. Rs 5.00 Crores and above all TDR loan.
o Check List as per Branch Circular 98/12 dated 16.04.2004, 98/186
dated. 04-12-2004 should be prepared.
o The check list should be kept along with other security documents.
o Zonal Manager may reduce this CPA threshold limit at below Rs 50
Lakhs, as he deems fit, considering the overall Credit Portfolio of the
Zone and risk perception in terms of compliance of Pre disbursement
sanctioned terms.
CREDIT PROCESS AUDIT

Last revised instructions regarding CPA was conveyed by HO vide HO BC
112/154 dated 30-1-2019.
In addition to existing guidelines, HO vide HO BC No. 113/53 dated 14-6-
2019 has approved modifications regarding CPA II in respect of all advance
accounts of Rs. 50 Crores & above. Now, CPA process has to be completed
BEFORE DISBURSEMENT & CPA-II to be submitted to the competent authority
(General Manager, HO – respective functional Dept.) for closure. The Board has
also directed that response from HO should be within 48 business hours of receipt
of request. Format of CPA is also modified.
CPA 3 :- (HOBC – 110/167 dated 02.12.2016)

o To take care of compliance of post disbursement conditions.

o Standard Account with limit of Rs 5.00 Crores and above( including
o NPA- Restructured account) new review sanction. This would cover
overseas accounts also with threshold limit of USD 1 Million and
above and its equivalent.
o Quarter wise disbursement to be verified and shall be done by the
next month and reports to be submitted by 10th of Aug, 10th of Nov,
10th of Feb, 10th of May for Q1, Q2, Q3 and Q4 respectively to the
respective controlling authorities.
o Will be carried out by concurrent Auditor of the Branch :
A) covering new or review sanctions have been made during the
quarter.
B) Pending compliance there in previous quarter.
o Limits disbursed where post disbursement conditions are stipulated
and not complied, Credit In charge and Branch Manager jointly
responsible to ensure compliance of post disbursement terms.
MSOD/QIS
o Stock statement is applicable to all Cash Credit Limit
o MSOD is monthly Select Operational Data: Applicable for Limits of Rs
10 Lakhs and above
o QIS stands for Quarterly Information System is applicable to limits
of Rs 1.00 Crore and above
o QIS I: Estimate for Quarter to be submitted in the week preceding
the commencement of the quarter
o QIS II: Actual for the Quarter ended to be submitted within six weeks
for the close of Quarter.
o QIS III: actual for Half Year and to be submitted within two months
from the close of the quarter.
• IRAC norms were introduced by Narasimhan Committee in

1991 and made applicable from 1993.
• Asset Classification is based on record of recovery and not
based on value of securities, worth of borrowers/guarantors.
I. Red Flagging of Accounts:

Presently. Branches reporting to ZO/NBG. with sanction limits Rs.50 crore
and above, the delegation of Red Flagging/Fraud examination of account is
assigned to HO FMG (Fraud Monitoring Group), while with sanction limits less than
Rs.50crore to FMG-NBG. However, in case of LCBs irrespective of amount the RFA
approval is done at HO-FMG.
As per RBI directives, Bank should act prudently and initiate appropriate
steps and complete the process of RFA/Fraud declaration within 180 days of first
date of RFA by any Bank in consortium and our Banks policy is in tune with the
same. However, as per DFS instructions (EASE compliance) the said procedures
are to be completed within 120 days.
To comply with EASE norms, we propose to adopt the time limit of 120
days. Within the existing policy guideline wherein each EWS is rated in 1-5 scale
and thus an account scoring minimum 15 marks will be Red flagged, the time
schedule for Red flagging of an advance account is proposed as below:

a. Time norms and Monitoring/Action plan for RFA is enumerated below:
S. No. Particulars Days
Step 1 Branch/Zone/NBG will scrutinize EWS triggers as available 2
on Dash Board to assess the criticality of the same.
Step 2 Discuss with the customers and find out the solution to 15
restore health of the account.
Step 3 Closure of the alerts: 5
Accounts reporting to Zone/NBG, irrespective of amount
involved the alerts will be closed by Zonal Manager where
there is no need to Red Flag the account based on the
recommendation of Branch and DZM Recovery.
In respect of LCBs the alerts in respect of all accounts
irrespective of amount involved will be closed by GM HO
CrMD where there is no need to Red Had the account based
on the recommendation of LCB Head.
Step 4 Branch/Zone will recommend to NBG-FMG for Red Flagging 3
of account in the event of the alerts are highly critical and
not able to address the EWS suitably after discussion with
Borrower in respect of accounts below Rs. 50 Crores.
LCBs irrespective of amount of exposure and Branches/
Zone/NBG in respect of accounts with exposure of Rs. 50
Crores and above where the efforts to resolve the EWS and
restore the health of accounts fails will recommend to HO
FMG for approval of Red Flagging in the account.
Step 5 Decision will be taken by NBG-FMG and HO FMG as the case 5
may be for classification of account as Red Flagged within 5
days of receipt of the Memorandum.
TOTAL 30
II. FRAUD EXAMINATION
Once an account is Red flagged by HO-FMG or of NBG-FMG as the case may be in

respect Consortium accounts where our Bank is Leader of the consortium (or) sole
Banker, Forensic Auditor should be appointed by NBG in respect of Branches falling
under their control and DGM-Large Corporate for their respective Branches within
5 days of receipt of approved RFA memorandum by them from HO or NBG as the
case may be. Thereafter the audit firm assigned the Job of carrying out Forensic
Audit should complete the audit and submit the final report within a period of 90
days from the date of allotment of Forensic Audit. The completion of audit within
90 days of allotment should be a term of scope of audit and mentioned invariably
in the allotment letter. Thus a final decision on classification of the account as
fraud or lifting of RFA (where no fraud discernible decision taken by HO FMG or
NBG FMG as the case may be) is to be completed within a maximum period of 120
days from the date of classification as RFA.
Steps involved from the declaration of RFA to declaration of fraud (or) lifting of
RFA are furnished in the flow chart.

Fraud examination where our Bank is a Lead Bank/Sole Banker:
Time norms and Monitoring/Action plan are enumerated below:
Sl. No. Particulars Days
Step 1 Consortium/JLM meeting to obtain consent for forensic 5

audit
Step 2 Allotment of Forensic Audit
Step 3 Conduct of Forensic Audit and submission of draft report to 90

be discussed in consortium/JLM, along with company
management team
Step 4 Submission of management representation
Step 5 Submission of final report
Step 6 Consortium meeting for discussion on declaration of 8

account as Fraud or No Fraud
Step 7 Internal process for declaration of fraud within banks: 5
a. Branch/Zonal office/NBG submit memorandum for
declaration of account as Fraud or no Fraud to HO Cr.MD
for decision to be taken by HO-FMG and simultaneously
another memorandum for closure of Forensic audit report
to Functional Department (C&IC/ MSME/Retail as the case
may be) respectively for Rs.50 crores and above and by
LCBs irrespective of amount of exposure while Branch/Zone
to submit to NBG-FMG in respect of accounts less than
Rs.50 crores. 5
b. Respective FMGs would decide on classification of
account as Fraud or for lifting of RFA based on
recommendations from NBG/ LCB.
Step 8 Reporting to RBI (CRILC platform) 7
Total 120
Fraud examination where our Bank is not a Lead Bank:

Once an account is classified as RFA, our respective branch will send the request
letter to Branch of Lead Bank which is handling the account with a copy to their
local Head office for appointment of forensic auditor. In case of delay by the Lead
Bank to appoint forensic auditor within a two weeks’ time, Branch would escalate
the matter to HO-Credit Monitoring Department who in turn will take up with
corporate office of concerned Bank to expedite the matter.
(HO BC 113/129 dated 25-9-2019)
Photo publication of wilful defaulters: (HO BC 113/59 dtd. 1-6-2019)

The branches would issue Demand Notice to those borrowers, including
proprietors / partners / directors / guarantors of the borrower firms / companies,
who have been declared as wilful defaulters by Head Office and who are having
means to pay either fully or partially but are deliberately avoiding payment of
legitimate dues of the Bank, followed by publication of photographs in the
newspapers in default of payment, subject to —

a) The decision of issuing such demand notice and publication of photographs in
the newspapers in respect of the Wilful Defaulter declared borrowers including
Proprietors/ Partners/ Directors/Guarantors etc. in the deserving cases will be
taken by the Zonal Manager/Chief Incumbents of Large Corporate Branches, on
case to case basis, except in cases where court/tribunal directives/ prohibitory
orders are there not to publish photographs. The demand notice issued to the
wilful defaulter including proprietors / partners / directors / guarantors may
specify a period of 7 days from the date of notice within which the
borrower/guarantor may repay the outstanding dues with interest, costs, charges
and expenses.
SOP for declaring wilful defaulters: (HO BC 113/58 dated 26-6-2019)

RBI in its Master Circular DBR.No.CID.BC.22/20.16.003/2015-16 dated July 1,
2015, inter alia clearly stated the reasons based on which the wilful default would
be deemed to have occurred if:
(a) A unit has defaulted in meeting its payment even when it has the capacity to
honour the said obligations.
(b) It had not utilised the finance for the purpose lent but has diverted the same
for other purposes.
(c) It had siphoned off the funds - neither utilised for the purpose availed nor are
funds available in the form of other assets.
(d) It had disposed of or removed the movable fixed assets or immovable property
given by it for the purpose of securing a term loan.
Further, RBI cautions that Identification of wilful default should be made keeping
in view the track of the borrower and should not be derived on the basis of isolated
incidents. The default to be categorised as wilful must be intentional, deliberate
and information on wilful default should be collected in case of wilful default of
Rs.25 lakhs and above. If one is found guilty on any of the above factors, following
penal measures should be initiated which include debarring additional credit
facilities by any bank/FI/NBFCs:
i) Photo publication of the borrowers/guarantors by following the procedure for

photo publication;
ii) Legal process wherever warranted against the borrowers /guarantors and
Foreclosure for recovery of dues;
iii) Proactive approach for change of management etc. Provisions of IPC 1980 and
Companies Act 2013 shall be imposed on the very person;
iv) Making request to the Bureau of Immigration for issue of look out circular as
per extant guidelines;
v) Filing FIR with appropriate authority in fraud reported cases.
SOP SLAB Remarks

SOP-1 Rs 25 Lakhs & above up Branch to Examine wilful default angle and
to below Rs 5 Cr recommend to ZO as per SOP-1
SOP-2 Rs 5 Cr & above up to ZO/LCB to Examine wilful default angle and
below Rs 50 Cr recommend to HO as per SOP-2
SOP-3 Rs 50 Cr & above HO will examine as per SOP-3
LCB to examine all their accounts with wilful default angle & submit the
memorandum directly to HO.

NPA Rules
• If one account of same borrower becomes NPA all other accounts
should be made NPA due to percolation.
• Term loan Account becomes NPA if interest and/or instalment not
recovered for more than 90 days.
• In Case of CC/OD account, will become NPA if;
o The outstanding in the account is continuously above Drawing
limit for more than 90 days (i.e. A/c is out of order)
o Even if o/s is within Drawing limit, but no credits in the account
for a continuous period of more than 90 days
o The credits in the account are not sufficient to cover even the
interest and other charges debited to the account, and remain
unpaid/overdue for more than 90 days
• If the account is not reviewed for more than 180 days from due date.
• If the drawing power is worked out on the basis of stock statement
more than 3 months old (i.e. stock statement not submitted for continuous
period of 90 days).
• In case of bill, if it remains unpaid for more than 90 days from due
date.
• Short duration crop loan if it remains overdue for 2 cropping seasons
or a period of 12 months, whichever is earlier.
• In case of long duration crop (plantations etc.) if it remains overdue
for a period of 12 months and more.
• Exceptions: Loan against TDR, KVP, IVP, NSC, LIC policy, etc.
provided there is adequate margin available.
• Advance against gold, shares, other Govt. securities are not
exempted from IRAC norms.
• Central Government guaranteed advances are exempt. However, the
guarantee is to be repudiated by the govt. before classifying the account
as NPA.
• However, State Government Guaranteed advances are governed by
usual 90 days overdue norms meant for Term loans.
Impact of NPA
• Application of interest in the account immediately ceases and bank
has to make provision for NPA
• Reverse the interest already charged but not realized to the debit of
P&L and transfer to it sundry credit “unrealized interest “.
• Provisioning needs to be done for NPAs which impacts Net profits.
• Additionally capital has to be provided as per Basel committee
recommendation, depending upon the provisioning percentage.
Provisioning
Standard Assets:
• A general provision of 0.25% for all agricultural & SME accounts
• For Commercial Real Estate (CRE) Sector at 1.00 per cent

• For Commercial Real Estate–Residential Housing Sector (CRE-RH)
0.75%
• For all others 0.40%
• For home loans with teaser rates ( below base rates ) 2%
• For restructured loans 5%
Substandard Assets (21 &22)
• For secured loans- 15% of outstanding dues net of (minus) URI &
FITL parked in Sundry Credits
• For unsecured loans- 25% of outstanding dues net of (minus) URI &
FITL parked in Sundry Credits
• For doubtful 31 – 100% of shortfall (unsecured portion) + 25% of
realizable value of security (RVS) - net of (minus) URI & FITL parked in
Sundry Credits
• For doubtful 32 – 100% of shortfall (unsecured portion)+ 40% of
realizable value of security (RVS) - net of (minus) URI & FITL parked in
Sundry Credits
• For doubtful 33 - 100% of outstanding balance irrespective of value
of security
• Loss assets- 40 - 100% of outstanding balance.
• Provisioning Norms modified as per B.C. No. 109/227 dated 18.3.16
• In accounts guaranteed by ECGC/CGTMSE the provision has to be
calculated after taking into account the cover available under the scheme.
• In consortium arrangement with less than Rs. 150 Crore NPA
classifications is on the basis of record of recovery of individual banks.
• In case of consortium advances of Rs.150 crore & above under Joint
Lending Agreement (JLA) if one bank classifies the a/c as NPA all others
should follow suit. (BC 106/61 dated 09.07.2012)
• Calculation of Provision e.g. (Amount in Lakhs)

NO ECGC / Cover
CGTMSE available
NPA O/S balance (Asset code 31) 10.00 10.00

Realizable value of security (RVS) 3.00 3.00
Unsecured portion 7.00 7.00
CGTMSE/ECGC cover (75%) assumed Not 5.25
Applicable (75% of 7.00)
Net unsecured portion 7.00 1.75

(7.00-5.25)
Provision = 25% of 3.00 + 100% of 7.00 7.75
Provision = 25% of 3.00 + 100% of 1.75 2.50

Project Loans-
• Project loan for non-infra project will become NPA if it fails to
commence commercial production within 12 months of original DCCO (date

of commencement of commercial operations) or COD commercial operation
date, unless it is restructured and fresh DCCO is fixed which should not
extend beyond 24 months of original DCCO.
• In case of Infra projects if the project fails to commence commercial
operation within 2 years of original DCCO unless it is restructured and
DCCO extended as follows:
▪ Project involving court cases another 2 years (total 4 years from
original DCCO )
▪ In other cases for reasons beyond the control of promoters another
1 year (total 3 years from original DCCO). Mere extension of DCCO
will also be treated as restructuring if the fresh DCCO goes beyond
the periods above.
• As per RBI guidelines w.e.f. 01.04.2015 asset classification in respect
of restructured advances, except change in DCCO in cases of infra and non-
infra project loans, cannot be continued as standard and should be treated
as NPA and provided for accordingly.
NPA Management Policy

Revised NPA Management Policy is communicated vide NO BC 113/48 dated
4-6-2019.
• All watch category accounts (30 to 90 days delinquency) appear in
“SASCL” report (System Asset Classification List). This should be followed
up for recovery of entire overdue. If record day is fast approaching and for
some reasons, unable to recover full overdue then at least minimum critical
amount should be recovered to avoid slippage during the record date like
31st march etc. This should be exception rather than rule. This is Critical
Amount Recovery Exercise) CARE.
• Once the account becomes NPA immediate action should be taken to
recover the amount by issuing SARFAESI notice wherever eligible.
Eligible accounts under SARFAESI -

• Contractual Dues should be Rs 1 Lakh and above
• A/c should be NPA as per RBI norms.
• Asset specifically charged to the bank.
• Joint lending - 60% lenders (contractual amount due) agree to
initiate action or inter-se agreement authorizes so.
• Security documents should be in full force. (Documents valid at-least
for 1 year from the date of notice), Documents should be duly filled in.
• If security not registered with CERSAI, SARFAESI action may not be
permitted.
• An inspection of the unit to be undertaken immediately to ascertain
the condition of securities charged to bank.
• Fresh valuation of properties to be obtained if more than 2 years old.
In case where original valuation is more than Rs. 50 Lakhs, 2 independent
valuation to be obtained. All these to be completed before sending
SARFAESI notice or filing suit as thereafter borrower may not cooperate.
• 60 days mandatory notice to be issued, thereafter possession –
symbolic / constructive or actual may be taken.

• After taking possession of property, notice of sale for 30 days should
be published in 2 newspapers, one of them should be vernacular & having
wide circulation in the local area where the property is situated.
• Reserve price should be fixed having regard to the valuation of the
property and bids should be invited. Before auction, bank should contact
prominent prospective buyers beforehand and ask them to bid in the
process. If tenant is occupying the property, efforts should be made to
vacate property. If no bids available, again re-auction can be made. In
certain circumstances, bank can also bid for the property.
Accounts ineligible under SARFAESI:

• Accounts where contractual dues are less than Rs.1 Lakh.
• Where security created is agricultural land. However other
agricultural implements such as tractors, implements can be covered under
SARFAESI.
• Where contractual dues outstanding are less than 20% of principal &
interest.
• Assets under pledge, lien are not covered.
Compromise & Write Off

• Compromise means Part recovery and associated with sacrifice.
Accounts eligible for compromise -
• A/c. should have been provided as NPA
• Default for reasons beyond control of borrower
• All efforts for up gradation should have been made
• Shortfall in security/difficulty in realization
• Where continuity of relationship with borrower is not in bank’s
interest.
NOT ELIGIBLE accounts

(Not eligible in the normal course and should not be entertained by the regular
delegate below the level of ZLCC):
• Wilful defaulter,
• Cases of malfeasance/misfeasance
• Cases of fraud /cheating
• In wilful default accounts the proposal will be approved by M. Com.
Irrespective of amount involved.
• Branch should have proof of wilful default before categorizing the
borrower. Where there is no proof benefit of doubt to be given to borrower.
• One of the key tools in the hands of bank in reducing NPA is
compromise and settlement. Write off is last resort when all other efforts
fail and do not yield any result and security is not available or value of the
security is nominal/not likely to recover entire dues of the bank.
• The following factors need to be taken into account while negotiating
for compromise.
• Age of NPA

• Realisable value of security evaluated on distress sale basis
• Strength of documentation
• Age & stage of suit/DRT proceedings
• Condition & availability of security charged to bank
• Details of other unencumbered assets of the borrower and guarantor
• Means of borrower/guarantor and their present income
• Capacity of the borrower and bank to negotiate
• The social standing of borrower/guarantor
• Character/capacity of borrower/guarantor
• Position of group accounts and present status and activity of
borrower/guarantor
Need for Compromise-
o Time value of money
o Recycling of funds
o Carrying cost of NPA
o Cleaning of balance sheet
o Avoiding throwing good money after bad
o Saves time & hassles of litigation
o Negotiated settlement prevents ignominy of borrower
In the process of negotiation, sacrifice of various components of the dues as

below in the order of desirability would be considered -
• Penal interest
• Incidental expenses & other charges including inspection/insurance
charges
• ECGC/CGTMSE guarantee fees/back ended subsidy
• Legal expenses incurred and to be incurred
• Compounding effect of interest
• Uncharged interest
• Ledger Write off is to be considered only when it is unavoidable
Sacrifice-
It is the difference between ANAP (Adjusted Net Amount Payable) and amount
offered under One Time Settlement (OTS).
• ANAP under “Substandard and Doubtful” categories are calculated by
adding Interest @ 1% MCLR (Simple) from date of NPA to last date of the
previous month of proposal, to amount outstanding on date of NPA
• In case of loss assets no interest is added to ledger outstanding on
the date of NPA.
• Sacrifice will decide the delegated authority for considering approval
of compromise
Payment Terms:
• Should preferably be paid in one lump sum or otherwise be deposited
in a No Lien A/c.

• Normally minimum upfront/down payment of 10% of the
compromise offer amount
• Residual amount within 90 days of intimation of approval of
compromise offer
• In case of merit delegate up-to the level of ZLCC can approve
repayment periods up-to 12 months and NBGLCC/EDLCC/CAC up-to 36
months subject to levying applicable interest and payment of minimum
25% within 3 months
• Minimum of 25% should be paid within 3 months. No interest
• Balance in 9 months with interest @1% above BR (simple) till
12 months and thereafter @1% above BR (simple) on reducing
balance from the date of approval of OTS till full repayment.
• SAR to be dealt with before compromise proposal.
Write Off –
• Last resort when all other remedies/avenues fail and did not yield
recovery
• Should have been provided for as loss asset and 100% provisioning
done
• Prudential Write off of doubtful/loss assets for o/s of more than Rs.
1 Crore is affected at HO level to clean up balance sheet and account
continues at branch level. Suit should have been filed in DRT.
Suggested readings: NPA management policy 2018, HOBC 112/91 dated

18.08.2018, 112/121 dated 19.11.2018, 113/48 dated 4.6.2019 & 113/59
dated 1.6.2019.
Debt Recovery Tribunal (DRT): Debt Recovery Tribunal (DRT) was

established in the year 1993 with the specific purpose of fast tracking the cases
involving suit amount above Rs.10 lakh. The government on 6th Sep 2018 has
doubled the monetary limit to ₹ 20 lakh for filing loan recovery applications in
the Debt Recovery Tribunals (DRT) by banks and financial institutions effective
1-7-2019(HO BC 113/97 dtd. 14-8-2019).
Presently, there are 39 DRTs & 5 DRATs. As per DRT regulations, the Dealing
assistant has to submit scrutiny within 7 days and the Registrar has to accept
/ reject the application within 30 days and ensure rectification of defect, if any,
within given time. Any inordinate delay should be brought to the notice of the
Registrar / PO by the branch through the dealing lawyer.
Ensure early listing of cases and disposal of the same in two hearings as it was
envisaged to dispose of the cases within 6 months. If it is not done within 180
days, any party can apply DRAT to direct the DRT for expeditious disposal.
Final orders are to be passed by the PO within 30 days after final hearing &
simultaneously Recovery Certificate is to be issued.
DRT is presided over by Presiding Officer who is generally judge of rank of
session judge or district judge. DRTs are established in all major cities of the
country. Where SARFAESI action is preferred, DRT permission to be obtained.
Appeal against DRT can be made with Debt Recovery Appellate Tribunal
(DRAT).

Lok Adalat: Lok Adalat means ‘Peoples’ Court’. Power derived from Legal
Services Authorities Act 1987. There is no court fee payable when a matter is
filed in a Lok Adalat. It is an alternative dispute resolution mechanism.
Generally compromise/avoid legal procedures i.e. without going to court.
Maximum amount - Rs.20.00 lakhs. Suite filed cases, RC cases & pre litigation
cases with consent of the concerned District legal authorities can be heard. Lok
Adalats are arranged by State Authority, District Authority, Supreme Court
Legal Services Committee, High Court Legal Services Committee, and Taluka
Legal Services Committee. Lok Adalat is Presided over by retired judges, social
activists, or other members of the legal profession. The focus in Lok Adalats is
on compromise. Award is made and is binding on the parties. It is enforced as
a decree of a civil court.
Reschedulement & Restructuring: Reschedulement is resorted to in cases

where borrower is unable to repay the loan as per original terms & conditions
owing to changes in the circumstances impacting cash flow in the business and
his ability to pay. Reschedulement implies extension of the repayment period
of the loan or re-phasing the periodicity of loan instalments. e.g. Instalment
re-phased from Monthly to Quarterly. Reschedulement is resorted to in cases
where borrower is unable to repay the loan as per schedule. Reschedulement
is resorted to because default would hurt both the Borrower and the Bank.
Restructuring implies altering the terms & conditions of the loan so as to make
it more favourable to the Borrower. Examples of Restructuring are:
• Lowering of Rate of interest
• Funding of overdue interest (FITL)
• Overdue loan amount with facility to repay in easy instalments (WCTL).
It may or may not involve additional funding. Only Standard/Substandard &

Bad & Doubtful accounts can be rescheduled or restructured. Loss Asset
Account is ineligible for reschedulement or restructuring. No reschedulement
or restructuring with retrospective effect. Only viable units which are expected
to turn the corner & can be brought back on track to be considered for
reschedulement/restructuring. No reschedulement/restructuring to be
considered for Non-viable accounts.
Restructuring of advances could take place in the following stages:
a) Before commencement of commercial production / operation;

b) After commencement of commercial production / operation but before the
asset has been classified as 'sub-standard';
c) After commencement of commercial production / operation and the asset
has been classified as 'sub-standard' or 'doubtful'.
• The accounts classified as 'standard assets' should be immediately re-
classified as 'sub-standard assets' upon restructuring.
• The non-performing assets, upon restructuring, would continue to have
the same asset classification as prior to restructuring and slip into further
lower asset classification categories as per extant asset classification
norms with reference to the pre-restructuring repayment schedule.

• Standard accounts classified as NPA and NPA accounts retained in the
same category on restructuring by the bank should be upgraded only
when all the outstanding loan/facilities in the account perform
satisfactorily (i.e. servicing of interest and repayment of principal)
during the ‘specified period’ i.e. one year from the date the instalment
under principal and/or payment of interest first become due.
• In case, however, satisfactory performance after the specified period is
not evidenced, the asset classification of the restructured account would
be governed as per the applicable prudential norms with reference to
the pre-restructuring payment schedule.
• Any additional finance may be treated as 'standard asset' during the
“specified period” under the approved restructuring package.
However, in the case of accounts where the pre-restructuring facilities
were classified as 'sub-standard' and 'doubtful', interest income on the
additional finance should be recognised only on cash basis. If the
restructured asset does not qualify for upgradation at the end of the
above specified period, the additional finance shall be placed in the same
asset classification category as the restructured debt.
• If a restructured asset, which is a standard asset on restructuring, is
subjected to restructuring on a subsequent occasion, it should be
classified as substandard. If the restructured asset is a sub-standard or
a doubtful asset and is subjected to restructuring, on a subsequent
occasion, its asset classification will be reckoned from the date when it
became NPA on the first occasion. However, such advances restructured
on second or more occasions may be allowed to be upgraded to standard
category after the “specified period” in terms of the current
restructuring package, subject to satisfactory performance.
Policy on Resolution of Stressed Assets:

Head Officer, Stressed Assets Resolution Dept. vide HO BC No. 113/68 dated
8-7-2019 has come out with a well-documented Policy on Resolution of Stressed
Assets. All are suggested to go through the Policy document to have details of the
scheme. Please also read HO BC 113/56 dated 13-6-2019.
The RBI in view of the enactment of the IBC, 2016, had issued revised
framework vide its Circular No RBI/2017-18/131 DBR.No.BP.BC.101/
21.04.048/2017-18 dated 12.02.2018 to substitute the then existing guidelines
on resolution of stressed accounts with a harmonised and simplified generic
framework. The said framework was cantered on single day default concept and
lenders were directed to refer the defaulted borrower account mandatorily to NCLT
under IBC 2016 in case of non-compliance of timelines prescribed therein. Based
on the RBI Circular dated 12.02.2018, we had formulated the Policy on Resolution
of Stressed Assets which was approved in the Board meeting held on 09.08.2018
& Circulated vide Branch Circular No:112/98 Dated 25.09.2018.
Hon’ble Supreme Court vide its Order dated 02.04.2019 has declared the
RBI Circular dated 12.02.2018 as ultra vires. RBI has come up with a revised
prudential framework for resolutions of stressed assets vide its Circular
ref. RBI: 2018-19:203 DBR.NO.BP.BC.45/21.04.048/2018-19 dated
07.06.2019. These directions shall be called the RBI (Prudential
Framework for Resolution of Stressed Assets) Directions 2019.

As per the guidelines, the following existing RBI restructuring schemes
stand withdrawn with effect from 07.06.2019:
i) Framework for Revitalising Distressed Assets,

ii) Corporate Debt Restructuring Scheme,
iii) Flexible Structuring of Existing Long Term Project Loans,
iv) Strategic Debt Restructuring Scheme (SDR),
v) Change in Ownership outside SDR, and
vi) Scheme for Sustainable Structuring of Stressed Assets (S4A)
Accordingly, the Joint Lenders' Forum (JLF) as an institutional mechanism

for resolution of stressed accounts also stands discontinued. However considering
that the lenders will continue to have Resolution Plans under consortium
arrangement, we will continue to have Joint Lenders/consortium meeting and ICA
execution as Institutional Mechanism. Though the above referred RBI schemes are
withdrawn w.e.f. 07.06.2019, the 'status quo' of the borrower accounts which are
already implemented under the provisions of above RBI schemes may be
continued as long as the same is exhibiting satisfactory conduct during the
specified period.
The prudential framework guidelines will not be applicable in case of the

restructuring of following:
i. Restructuring in respect of projects under implementation involving

deferment of date of commencement of commercial operations (DCCO),
shall continue to be covered under the guidelines contained at paragraph
4.2.15 of the Master Circular No. DBR.No.BP.BC.2/21.04.048/2015-16
dated July 1, 2015 on 'Prudential norms on Income Recognition, Asset
Classification and provisioning pertaining to Advances'. Details given
under Annexure IV Restructuring of projects under implementation.
ii. Section 1(B), 1(C) and 1(D) of Annexure 1 of this Policy shall not be
applicable to revival and rehabilitation of MSMEs covered by the
instructions contained in Circular No. FIDD.MSME & NFS.BC.No.21/
06.02.31/ 2015-16 dated March 17, 2016, as amended from time to
time... Section I (E) of the framework shall not be in derogation to the
provisions of the circular DBR.No.BP.BC.18/ 21.04.048/ 2018-19 dated
January 1, 2019.
iii. Restructuring of loans in the event of a natural calamity, including asset
classification and provisioning, shall continue to be guided as per the
extant instructions.
iv. iv. The framework shall not be available for borrower entities in respect
of which specific instructions have already been issued or are issued by
the Reserve Bank to the banks for initiation of insolvency proceedings
under the IBC (RBI List 1 & 2 for initiating CIRP under IBC 2016).
Lenders shall pursue such cases as per the specific instructions issued
to them.
Liberalised Scheme for NPA Recovery through One Time Settlement:
A) Star Sanjeevani Scheme

Reference HOBC 113/42 dated 29-05-2019

 Liberalized Delegation of Powers for approving sacrifice
 Renamed all four schemes as “Star Sanjeevani” (Regular/
CGTMSE/Educational Loan/Agriculture Loan)
 The scheme is non-discretionary and non-discriminatory in nature.
 All accounts with ledger outstanding up to Rs. 100 lakh under
doubtful/loss and regular written off accounts as on 31.03.2019 are
eligible.
 Branch Managers can settle dues up to Rs. 50.00 Lakhs, whereas Ledger
O/s above Rs. 50.00 Lakhs can be considered at SZLCC level.
 The authority approving OTS would concurrently approve waiver of Legal
Action. (It gets waived automatically)
 SAR to be closed. If not, Branch to submit to ZO within 30 days.
 In regular W/O a/c, BM scale-I & II are restricted to approve up-to Ledger
O/S Rs. 5.00 Lakhs, more than that would be considered by SZLCC
 Fraud reported accounts/staff loans/loans against TDR/NSC/LIC Policies/
Gold etc. are not eligible
 The powers to be exercised by the Chief Incumbent at the branch
 The official approving compromise proposal should not have sanctioned the
loan in individual capacity.
 The branch to obtain latest inspection report.
 Liquid securities if any must be appropriated in that account after observing
due procedures before accepting OTS
 The scheme remain in force up-to 31.03.2020
Delegation:-
Please Refer the HO BC 113/42 dated 29-05-2019
Payment Terms:-
1. FOR DUES UPTO Rs. 10 lakh: in one lump sum or latest within 90 days
of approval with minimum 10% upfront.
2. For dues above Rs.10 lakh : Minimum 10% upfront and balance
amount within 6 Months’ time subject to PDCs being obtained for
instalment amount.
3. No interest if, full OTS amount paid within 90 days of conveying approval
of OTS. Beyond 90 days simple interest will be charged @ 1% above 1 year
MCLR on reducing balance from the date of approval of OTS till full payment,
but not more than 1 year from the date of approval, beyond 1 year from
the date of approval OTS will be treated as revoked and all earlier payments
forfeited against normal recovery.
4. OTS can be approved for maximum 1 year and period will be counted from
the date of approval.
Deviation –
Deviation in sacrifice and payment terms for accounts below SZLCC will rest
with the SZLCC, whereas those under SZLCC will rest with ZLCC.
B) BOI OTS –2019:

Reference HO BC 113/41 dated 03.06.2019
Eligible Accounts -

 NPA a/cs. (Asset code 31, 32, 33, 40 & Regular W/O a/cs.) with O/S above
Rs. 1.00 Crore and up-to Rs. 50.00 Crores as on 31.03.2019 and declared
NPA as on 31.03.2018
 Cases pending before Courts/DRT, consent decree with default clause to be
obtained.
 A/cs. where action taken under SARFAESI – 2002, u/s 13(2) and 13(4)
 A/cs. under Consortium of Multiple Banking arrangements
 A/cs. where RRC filed, requisite charges to be recovered separately
 Cases referred or admitted by NCLT under IBC-2016
 Cases of willful default up-to Rs.15.00 Crores will be considered by NBGLCC.
 Earlier approved OTS in BOI OTS 2018 (Revised) (Revoked/not Revoked)
shall be considered for validation subject to minimum same offer as per last
approval.
 Valid up-to 31.03.2020 (Last date of application receipt 15-03-2020)
Ineligible Accounts
 Cases reported as fraud/cheating
 Central Govt./State Govt. guaranteed accounts
 “Compromise Cases” already under repayment
 Units under rehabilitation/restructuring (but failed restructuring would be
eligible)
 Cases of malfeasance/misfeasance
 Wilful defaulter cases above Rs. 15.00 Crores outstanding (will be
considered as per prevailing NPA Management Policy, 2018)
 Salient Features of the scheme -

 The scheme is Non-Discriminatory and Non-Discretionary.
 Last Date of sending intimation letter to eligible borrowers - before 31-
07-2019. Proof of dispatch to be kept on record.
 Last date of receipt of application – 15-03-2020.
 Last date for conveying sanction – within 30 working days from the date off
application but not later than 31-3-2020.
 Waiver of uncharged interest for all eligible accounts from the date
of NPA and legal expenses already debited to P&L a/c. will be absorbed.
 Release of security and withdrawal of legal action is permitted upon
settlement of full OTS scheme.
 Where OTS amount is proposed to be paid from sale of charged assets,
the security may be released upon payment of amount equivalent to
Realizable Value of Security (RVS) of property / Security to be released.
 The name of the borrower guarantor will appear in CIBIL as “The Account
Closed under Compromise” and no further exposure to be given by our
bank.
 While issuing No Dues Certificate the Branch should obtain following under
takings/declarations and , incorporate following clause in Sanction letter:
a. Undertaking to be obtained against the future claims, statutory dues against
the Borrower, bank will not be liable, the Borrower's responsibility against
such dues.
b. Any legal dispute due from other would be at the risk and responsibility of
the Borrower and the Company and Promoters has to undertake that the
Bank has no liability with regards to any dispute/ claims/ injunction etc.

c. In future, if any fraud is found, the same will be dealt with as per Bank's
policy.
Sacrifice -
Sacrifice for Rs. 1.00 Crore to Rs. 25.00 Crores
Asset Code as on Sacrifice on Dues
31-03-2019 Secured portion Unsecured portion
Doubtful – 1 (D1) 20% 65%
Doubtful – 2 (D2) 25% 75%
Doubtful – 3 (D3) 30% 85%
Sacrifice above Rs. 25.00 Crores to Rs. 50.00 Crores
Doubtful – 1 (D1) 15% 50%
Doubtful – 2 (D2) 20% 50%
Doubtful – 3 (D3) 30% 85%
Loss / Written off Maximum 90%
Payments –
 Initial application money, 5% of outstanding as on 31.03.19, on
rejection amount is refundable without interest within 3 months
 Upfront 10% of the OTS amount (including application money) within
30 days from the date of conveying approval of OTS. This will include 5%
application money deposited initially.
 Balance OTS amount to be paid, without interest, within 3 months from
the date of sanction, beyond that interest will be charged @ 1 Yr. MCLR
+ 2%
 Repayment period of OTS is 6 months, it can be extended by 3
months by the same delegatee, subject to –
 Borrower has deposited 20% of OTS amount.
 No interest waiver and will be charged from the date of conveying
approval. (Interest @ 1 Yr. MCLR + 2%)
 No refund of any deposited amount would be allowed after acceptance of
terms and conditions of OTS & OTS shall be revoked. This clause would be
incorporated in sanction letter invariably.
 lf the Borrower has deposited initial application money 5 % of outstanding
dues but is unable to deposit up front of 10 % or has partially deposited
within 30 days from the date of conveying approval and comes with
intention to pay OTS after 30 days with full or partial amount, with minimum
up front of 20 % including earlier paid, will be permitted. But the entire OTS
payment should be as per Scheme's repayment period.
Incentive for Early Payments

 If OTS amount paid fully within 3 months from the date of conveying
approval, incentive will be allowed as below -
 10% additional incentive on OTS amount for asset code 31, 32 & 33 upto
Rs.25.00 Crores
 5% incentive on OTS amount for asset code 33 & 40 for amount above Rs.
25.00 Crores up-to Rs. 50.00 Crores.

Quick Mortality Policy:
Any new account turning NPA within One year from the date of first
disbursement and in case of accounts having repayment holiday, from the date of
commencement of first repayment would be defined under Quick mortality. For
detailed policy, please refer to HO BC No. 113/49 dated 14-6-2019.
Introduction of new Finacle Menu (COMPOTS) and Web interface for One
Time Settlement (OTS): (HO BC 112/160 dated 8-2-2019)
Based on the guidelines issued by GoI under EASE, the Bank has introduced a new
functionality, both offline and online for customers so that they can submit their
request through Web or by visiting at the Branch where the customer account is
maintained.
A. "COMPOTS" Menu in Finacle:

A new menu COMPOTS is introduced to enter the details of compromise Amount /
OTS offered by a NPA customer through Web or by visiting the Branch with
following details.
The customer submits his offer at the Branch and the Branch user enters the
requisite data in the Finacle system using menu "COMPOTS" with following option
codes:
1) Add: Addition of record (A)
2) Modify: Modification of record (M)
3) Delete: Deletion of record(D)
4) Verify: Verification of record(V)
5) Inquire (I)
6) Sanction (S)
7) Reject (R)
8) Acknowledgement (ACK)
B. Website interface:
The borrowers who wish to apply for OTS from our website can do so by going to
our website and filling a simple form and thereafter offering his OTS amount. It
will generate a unique reference no through which, customer can also track the
status of his/her OTS application. The process is user friendly and simple as under:
1) Access the official site of Bank of India, find the "Online OTS" menu;
2) "Apply Online" and "Track Status". A new user will have to click on "Apply
Online" to fill in his/her OTS request;
3) Fill all the details (Customer ID, Account Number, Name, Mobile Number, email
Address) required on this page;
4) OTP request page will appear. And the user will receive OTP on his/her given
mobile. Fill this OTP under "Enter OTP";
5) On Submitting OTP, the user will be directed to a page asking for "OTS
Amount". The customer then has to submit his/her offered OTS amount
6) An acknowledgement with reference number will appear on screen and also
received by customer on his/her given email id. Customers should be advised
to keep this reference number safe for future use
7) After generation of reference no., an automatic email will be sent to the
concerned branch;
8) Lastly, users can track their status using "Track Status" option given on the
website. Customer will have to fill the reference number. He/she will get OTP
request for verification. After OTP verification, the user can check the status of
their application using the reference no generated earlier.

Once the customer submits his OTS application, the branch upon receiving
intimation through the system, should respond immediately to dispose-off the
application to avoid pendency.
FORMATION OF STRESSED ASSET IDENTIFICATION COMMITTEE- SAIC

(HO BC 113/200 dated 15-02-2020):
Stressed Asset Identification Committee- SAIC: - As per the Enhanced

Access and Service Excellence (EASE), the management of stressed assets (NPA
and SMA accounts) is proposed under an exclusive Stress Assets Management
Vertical (SAMV).
The constituents of SAMV include (1) Recovery Department, (2) Credit
Monitoring Department and (3) Stressed Asset Resolution Department at HO level.
Under this framework of EASE Guidelines, Head Office- Stressed Asset
Management Vertical will cater to the Stressed accounts having our bank exposure
of Rs.50 Crores and above.
The Department's will differentiate the stressed accounts into SMA and NPA
( NCLT & Non-NCLT Matters) categories so as to formulate overall measures to
manage and lessen the incidence of stress in the performing accounts as well as
maximize recovery in NPA accounts.
Insolvency & Bankruptcy Code 2016

(HO BC 111/152 dated 2-12-2017)
The bank has issued detailed guidelines on empanelment of Insolvency
Professional (IPs) / Insolvency Entities (IPE) and for filing of cases and fee
structure of RPs / Advocates on matters under IBC, 2016 with following salient
points:
1. Identification of accounts for initiating action under IBC.
2. Sanctioning Authority for initiation action under IBC.
3. Procedure for empanelment of Insolvency Professional (IPs) / Entities (IPE).
4. Fee structure for Advocates & RPs engaged under the cases filed under IBC.
Identification of Accounts for action under IBC, 2016:

The first and foremost act is identification of the eligible accounts, which can
be NPA as well as those under SMA. Filing of NCLT case may lead to the
liquidation of the company which may close all avenues for recovery of dues.
The cost involved in the process is also on a much higher side compared to
other recovery processes.
Once the application is admitted by NCLT, moratorium on all legal proceedings
against the company including those under SARFAESI will commence, which
will halt the other recovery steps initiated by the bank.
Various factors should be taken in to consideration by the branches while
identifying accounts to be proceeded under IBC.
Sanctioning Authority for permission for initiating action under IBC, 2016:
A financial creditor can initiate the proceedings under the IBC, in cases where
there is default in repayment of minimum amount of Rs. 1 Lakh.
The competent authority for the purpose of initiating action under IBC will be
as under:

Rs. In Crore
Executive Director Full Powers
General Manager 500.00
Deputy General Manager 50.00
Assistant General Manager 20.00
Chief Manager 10.00
Senior Manager 02.00
NCLT
The Central Government has constituted National Company Law Tribunal
(NCLT) under section 408 of the Companies Act, 2013 (18 of 2013) w.e.f. 01st
June 2016.
In the first phase the Ministry of Corporate Affairs have set up eleven Benches,
one Principal Bench at New Delhi and one each Regional Benches at New Delhi,
Ahmedabad, Allahabad, Bengaluru, Chandigarh, Chennai, Guwahati, Jaipur,
Hyderabad, Kolkata and Mumbai. Subsequently more benches at Cuttack,
Jaipur, Kochi, Amravati, and Indore have been setup.
S.NO. Title of Bench Location Jurisdiction

(1) Union Territory of
1 (a) NCLT, Block No. 3, Ground Floor, 6th,7th &
Delhi
Principal 8th Floor, CGO Complex, Lodhi
Bench. Road, New Delhi-110003
(b) NCLT, New
Delhi Bench.
2 NCLT 1st & 2nd Floor, Corporate Bhawan, (1) State of Gujarat
Ahmedabad Beside Zydus Hospital, Thaltej, (2) Union Territory of
Bench. Ahmedabad-380059 Dadra and Nagar Haveli
Daman and Diu
3 NCLT 9th Floor, Sangam Place, Civil Lines (1) State of Uttar
Allahabad Allahbad-211001 Pradesh
Bench. (2) State of Uttrakhand
4 NCLT Amravati Corporate Bhawan, Bandlaguda (1) State of Andhra
Bench. Tattiannaram Village, Hayatnagar Pradesh
Mandal, Rangareddy District,
Hyderabad-500068
5 NCLT Corporate Bhawan, 12th Floor, (1) State of Karnataka
Bengaluru Raheja Towers, M.G., Road,
Bench. Benguluru-560001
6 NCLT Ground Floor, Corporate Bhawan, (1) State of Himachal
Chandigarh Sector-27 B, Madhya Marg, Pradesh
Bench. Chandigarh-160019 (2) State of Jammu and
Kashmir
(3) State of Punjab

S.NO. Title of Bench Location Jurisdiction
Chandigarh
(5) State of Haryana
7 NCLT Corporate Bhawan (UTI (1) State of Tamil Nadu
Chennai Bench. Building),3rd Floor, No. 29 Rajaji (2) Union Territory of
Salai,Chennai-600001 Puducherry
8 NCLT Corporate Bhawan, CDA, Sector- (1) State of
Cuttack Bench. 1,Cuttack-753014 Chhattisgarh.
(2) State of Odisha.
9 NCLT Guwahati 4th Floor, Prithvi Planet Behind (1) State of Arunachal
Bench. Hanuman Mandir, G.S. Road, Pradesh
Guwahati-781007 (2) State of Assam
(3) State of Manipur
(4) State of Mizoram
(5) State of Meghalaya
(6) State of Nagaland
(7) State of Sikkim
(8) State of Tripura
10 NCLT Corporate Bhawan, Bandlaguda (1) State of Telangana
Hyderabad Tattiannaram Village, Hayatnagar
Bench. Mandal, Rangareddy District,
Hyderabad-500068
11 NCLT Indore 1st & 2nd Floor, Corporate Bhawan, (1) State of Madhya
Bench. Beside Zydus Hospital, Thaltej, Pradesh
Ahmedabad-380059
12 NCLT Jaipur Corporate Bhawan, Residency Area, (1) State of Rajasthan.
Bench. Civil Lines,Jaipur-302001
13 NCLT Kochi Company Law Bhawan, BMC Road, (1) State of Kerala
Bench. Thrikkakara -(PO) Kakkanand, (2) Union Territory of
Kochi-682021(Kerala) Lakshadweep
14 NCLT Kolkata 5, Esplanade Row (West), Town (1) State of Bihar
Bench. Hall Ground and 1st Floor Kolkata- (2) State of Jharkhand
700001 (3) State of West
Bengal
Andaman and Nicobar
Island
15 NCLT Mumbai 4th Floor, MTNL Exchange Building, (1) State of
Bench. Near G.D. Somani Memorial School, Maharashtra
G.D.Somani Marg, Cuffe Parade, (2) State of Goa
Mumbai-400005
It aims to consolidate laws:

- Resolution in a time bound manner
- Framework to either wind up their business or
- Engineer a revival plan.

The provisions of the law are-
Adjudicating authority - NCLT- (Sec 408 of the Companies Act, 2013). The
Corporate debtors-two independent stages:
1. Insolvency Resolution process
2. Liquidation process
Insolvency resolution process

Financial Creditors / Operational Creditors / Corporate Debtor may initiate
Corporate Insolvency Resolution Process in case default is committed by
Corporate Debtor.
Application to NCLT to be made

Operational Creditor to give 10 days’ notice before approaching NCLT.
Corporate insolvency process to be completed within 180 days. After admission
of application, creditors claim will be frozen for 180 days. Proposals for revival
to be heard. Future course of action is to be decided. Until approval of
Resolution / Liquidation Plan, no proceedings can be launched against the
Corporate Debtor.
NCLT appoints interim Insolvency Professional – (IP) within 14 days of
acceptance of application. Interim IP holds office for 30 days only. He takes
control of debtor’s assets and company operations and collects financial
information. NCLT announces and calls for submission of claims.
After announcement, interim IP constitutes the creditors committee. Financial
and operational creditors should be part of Creditors’ Committee. Creditors
committee shall meet first within 7 days of its constitution to decide by 75%
to replace or confirm interim IP as Resolution Professional (RP). Then RP is
appointed by NCLT.
If ¾ of financial creditors request for extension of time, NCLT can grant one
time extension of 90 Days. The RP to conduct entire Insolvency / Resolution
process and during the process, manage corporate debtor. The RP shall prepare
Information Memorandum (IM) for Resolution Plan and place it to the
committee. The committee after approval of IM, decide on restructuring plan.
The Resolution Plan will be sent to NCLT for final approval and then
implemented.
Liquidation process--on account of failure to submit resolution plan to NCLT
within the prescribed period or Rejection of RP for non-compliance with the
requirement of the code or Decision of creditors committee by vote. During
liquidation no suit or proceedings shall be instituted except through the
Liquidator on behalf of corporate debtor with permission from NCLT. The RP
shall act as Liquidator unless replaced. Liquidator shall form an estate of all
assets, called liquidation estate.
The Liquidator shall receive, verify and admit claims of creditors. Assets will be
distributed in the manner of priorities of debts. Sums due to workmen or
employee from PF, Pension and Gratuity will be considered as priority dues.
Upon liquidation of Corporate Debtor’s asset, Liquidator making the application,
NCLT pass an order dissolving the corporate debtor.
Order of priority of payments of debts-

1. IR cost and liquidation cost.
2. Workmen dues (for 24 months before commencement)
3. Wages and unpaid dues to employees(for 12 months)
4. Financial debts to unsecured creditors
5. Debts to secured creditors
6. Remaining debts
7. Preference shareholders
8. Equity shareholders
9. Any surplus remaining after payment
Constitution of NCLT
President: Judge of high court for 5 years.
Judicial member: A Judge of high court/District judge for 5 years / Court
advocate for 10 years.
Technical member : A person who has been a member of Indian Corporate
Law Service or Indian Legal Service or practicing CA or Cost Accountant or CS
for 15 years.
At present 11 NCLTs at different major locations
It provides necessary solution for companies facing issues related to winding
up mismanagement and insolvency of business.
NCLT having replaced company law board, is the only tribunal for
arbitrating company disputes
Authorised Officers under IBC:

Assistant General Managers and Deputy General Managers to sign \ execute
Applications, Appeals, Vakalatnama, before NCLTs, NCLATs, High Court, and
Supreme Court under IBC 2016. All other ancillary Pleadings, Miscellaneous
applications, Affidavits, Written statements etc. can be signed \ executed by
the dealing officials of Branch as being the practice in other court cases. (HO
BC 113/82 dated 18-7-2019)
OTS/Release of Security with Companies under Liquidation /

Resolution:
Any dealing with any Company under Liquidation / Resolution whether by way
of OTS / Release / dealing with the security etc. can only be done with the
permission of Official Liquidator / Company Court / NCLT.
Please also refer to Chapter – 7 of NPA Management Policy on Compromise
proposals. (HO BC 112/96 dated 27-9-2018).
Filing of FIR during pendency of NCLT proceedings under IBC 2016:

RP / Liquidator during the CIRP / Liquidation proceedings have the obligation
to peruse the transactions of the Corporate Debtor for a period of two years
preceding the date of admission date to unearth transactions having diversion
of funds or undervalued transactions. If lenders have information about such
transactions prior to two years’ period, they may request to extend the scope
/ period of Forensic Audit beyond two years.
If the RP gives clean chit to the debtor but the lenders have information /
suspicion, they may get Forensic audit carried out at their own independently.

Notwithstanding any of the above provisions, lenders have to file a complaint
/ FIR with the Law enforcing agencies upon detection of any fraud in line with
the Master direction issued by RBI on Frauds.
(HO BC 112/139 dated 11-12-2018).
Regulations for Insolvency Resolution and Bankruptcy Proceedings of

Personal Guarantor/s to Corporate Debtor (HO BC 113/227 dated 02-03-
2020)
Section 60 (1) of the Code provides that the Adjudicating Authority in

relation to insolvency resolution and liquidation for corporate persons including
corporate debtor and personal guarantors thereof shall be National Company Law
Tribunal (NCLT). The Section 60 (2) of the Code also provides that where an
application for insolvency resolution or liquidation proceeding of a Corporate
Debtor (CD) is pending before a National Company Law Tribunal (NCLT), an
application relating to insolvency resolution or liquidation or bankruptcy of a
corporate guarantor/s or a personal guarantor/s shall be filed before such NCLT.
It further provides that insolvency resolution, liquidation or bankruptcy proceeding
of a corporate guarantor or a personal guarantor/s of the Corporate Debtor (CD)
pending in any court or tribunal shall stand transferred to the NCLT dealing with
insolvency resolution or liquidation proceeding of such Corporate Debtor (CD).
The Central Government, vide a notification dated 15th November, 2019

(Ministry of Corporate Affairs Notification New Delhi, the 15th November, 2019
S.O. 4126(e) appointed 1st December, 2019 as the date for commencement of
the provisions of the Code relating to insolvency resolution and bankruptcy of
personal guarantor/s to Corporate Debtor (CD). The insolvency resolution and
bankruptcy of partnership/proprietorship firm and individuals (other than personal
guarantor of Corporate Debtor (CD)) are yet to be notified.
GOI also notified the following on the same day (15.11.2019)-
(i) The Insolvency and Bankruptcy (Application to Adjudicating Authority

for Insolvency Resolution Process for Personal Guarantors to Corporate
Debtors) Rules, 2019; and
(ii) The Insolvency and Bankruptcy (Application to Adjudicating Authority
for Bankruptcy Process for Personal Guarantors to Corporate Debtors)
Rules, 2019.
These Rules provide for the process and forms of making applications for
initiating insolvency resolution and bankruptcy proceedings against personal
guarantor/s to Corporate Debtor (CD), withdrawal of such applications, forms for
public notice for inviting claims from the creditors etc.
The Insolvency and Bankruptcy Board of India (IBBI) notified the following
Regulations dated: 20.11.2019:-
(i) The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process
for Personal Guarantors to Corporate Debtors) Regulations, 2019, specifying the
details of the insolvency resolution process for personal guarantor/s to Corporate
Debtor (CD), inter-alia, including:

1) Eligibility to act as a resolution professional for an insolvency
resolution process;
2) Manner of receipt and verification of claims of creditors;
3) Manner of preparation of list of creditors, holding the meetings of the
creditors and voting in the meeting;
4) Contents of the repayment plan; and
5) Procedure of filing of an application for issuance of discharge order,
etc.
(ii) The Insolvency and Bankruptcy Board of India (Bankruptcy Process for
Personal Guarantors to Corporate Debtors) Regulations, 2019 specifying the
details of the bankruptcy process for personal guarantor/s to CD inter-alia,
including:
1) Eligibility to act as a bankruptcy trustee for the bankruptcy process;

2) Manner of preparation of reports and timeline for submission by the
bankruptcy trustee;
3) Manner of collating claims and formation of committee of creditors, holding
meetings of the committee and voting in the meeting; and
4) Manner of realisation of assets of the bankrupt and its distribution, etc.
These Regulations came into force on 1s` December, 2019. They are
available at www.mca.gov.in and www.ibbi.gov.in. Various Forms & Formats are
also provided as per the Notifications detailed above. The same may be adopted
for running the process.

Foreign Exchange
Non Resident A/Cs

• As per FEMA, a person who has gone out of India for business or vocation
or any other purpose indicating an indefinite period of stay there is NRI
• A person who is a foreign resident but held a Indian passport any
time/whose parents or grandparents were citizens of India/ foreigner
spouse of an Indian citizen, is a PIO.(Citizens of Countries other than
Pakistan, Bangladesh)
• NRI/PIO can open NRO, NRE, FCNR accounts and make permissible
investments.
• NRIs when they return to India for good become resident Indians and can
open, like ordinary residents, resident accounts including resident foreign
currency accounts such as RFC, RFC (D) accounts.
NRO A/CS
 Ordinary S/B is converted to NRO on a resident becoming NRI. Jointly with
non-residents. Can be opened jointly with resident on F or S basis. A/C
balance is partially repatriable with a limit of USD 1 Million per financial
year.
 TDS applicable on Interest paid.
 Opening of and operations on the accounts of individuals/entities of
Pakistani nationality/ownership and entities of Bangladesh
nationality/ownership require prior approval of Reserve Bank.
NRE A/CS:
• NRI or PIO can open this a/c
• Jointly with NRI/resident close relative (As per Company Law 2013) only
on Former or Survivor basis
• Fully repatriable.
• Exempted from TDS
FCNR A/CS
• NRI/PIO can open in any freely convertible currency.(Our Bank - 6
Currencies)
• Jointly with resident close relative (As per Company Law 2013) only on
F/S basis
• Only Term Deposit 1 year to 5 Years.
• Fully repatriable
• Present scheme is FCNR-B.
RFC A/C
• Non-residents returning to India permanently can open RFC a/c in any
permitted foreign currency (presently USD and GBP in our bank). With
resident relatives (As per Company Law 2013) on F/S terms.
• It can be S/B,C/D OR TDR
• Funds are fully repatriable

Facilities to Residents
• Resident Individuals can open RFC (D) a/c
• Resident exporters/importers can open EEFC a/c in foreign currency.
• Both are non-interest bearing current accounts in foreign currency.
• No advance is permitted against these funds.
• To mitigate exchange risk
Various Authorities Supervising Foreign Business

• Ministry Of Commerce through DGFT o FTP 2015-20
o ITC (HS) Classification o IEC No. o License
• Ministry of finance through RBI
 RBI issues guidelines through various circulars, notifications.
 RBI has delegated powers to A.P. (Authorized Persons). All
transactions in Forex have to be routed through A.P.
 A.P. comprises of Authorized Dealers, Money Changers, Off shore
Banking Units.
• Customs o Permits Entry & Exit of goods o Valuation of goods.
o Assessment & collection of duty.
• E.D -Compliance of FEMA1999/PMLA 2002
Important Organisations
• FEDAI: Foreign Exchange Dealers Association of India
• ECGC: Export Credit Guarantee Corporation
• ICC: International Chamber of Commerce
FEMA 1999
• It has replaced FERA:
• Effective 01-06-2000.
• 7 chapters/49 articles
• Rules and regulations have been issued under the act to govern various
Forex transactions and for orderly development of Forex Market.
Forex quotations/ Deals

• Direct Quotation: Where foreign currency is fixed/Home currency varies.
• Indirect Quotation: Where foreign currency is varying and home currency
is fixed.
Rates
• Cash/Ready Rate: Deal & Settlement on same day
• TOM: Deal struck today & Settlement on next working day
• SPOT: Deal today l& Settlement on second working day

• FORWARD: Deal today & Settlement after spot is a forward rate.
Remittances
• Inward Remittances:
o By DD, SWIFT, Traveller’s Cheque, Personal Cheques,
o In INR/Foreign Currency
o To confirm credit in Nostro / Vostro Account
o No ceiling on amount
o Purpose letter from Beneficiary/Remitter o FIRC
• Outward Remittances:
o As per FEMA, funds can be released for schedule II & III transactions
subject to compliance of terms & conditions.
o A resident can remit up to USD 2.5 lakh per financial year for any
permitted capital a/c or current a/c transaction or a combination of
both under Liberalized Remittance Scheme (LRS)
o CDF form to be submitted if surrender of currency is of value USD
5000 & above/currency & T/C is USD 10000 & above.
o ICC /ATM/DEBIT cards can be used to the extent of prescribed limits
o INR up to Rs.25000 can be taken from /brought in India
Exports
• Documents submission within 21 days of shipment
• Realisation period: maximum within 9 months from date of shipment for
all exporters including Units in SEZs (Special Economic Zones), Status
Holder Exporters, EOUs(Export Oriented Units) , Units in EHTPs (Electronic
Hardware Technology Park), STPs (Software Technology Park) & BTPs
(Bagmane Technology Park) until further notice.
• Goods exported to a warehouse established outside India: As soon as it is
realized and in any case within fifteen months from the date of shipment
of goods.
• For delay in realization, extension to RBI has to be applied in form ETX.
• For reduction in invoice value, change of buyer etc .to be applied to A.D.
• EDF (Non EDI Ports)/Shipping bill (EDI ports)/ SOFTEX form used for
exports. SDF discontinued.
• Overdue export bills to be reported in EDPMS now.
• Self-write off of long overdue bills by exporters/A .D. to the extent
permitted as per RBI guidelines, to be reported to RBI through EDPMS.
• Export of INR can be upto Rs. 25,000.00 other than Nepal & Bhutan.
• EDPMS- Export Data Processing and Monitoring system
Advance Payments against Exports
• The shipment of goods to be made within one year from the date of receipt
of advance payment
• The rate of interest, if any, payable on the advance payment not to exceed
LIBOR + 100 basis points
• The documents covering the shipment are routed through the same

A.D
Pre-Shipment Credit
• Credit for procurement/Mfg./Packing of goods for export, available for

deemed exports also.
• Against confirmed order/L/C for FOB value
• Available in INR/Foreign Currency
• Concessional Rate of interest up to 360 days
• ROI for PCFC is linked with LIBOR/EUROLIBOR/EURIBOR
• Running P.C. a/c for select exporters
Post Shipment Credit
• Credit given through FBP/FBD/FBN/Rupee advance against collection

Bills.
• Status Report on buyer for FBP/FBD

• Exposure limit on Bank for FBN
• ECGC Policy/Guarantee: a) ECIB-PC b) ECIB-PS
• NTP : 25 days
• Export bills purchased/discounted/ negotiated and unpaid should be
crystallised on 30th day after NTP/Notional due date
Imports
• FIBC & L/C
• Remittance of import bills to be done within 6 months from date of imports
which can be extended up to 3 years (6 months at a time) for delays on
account of disputes about quantity or quality or non-fulfilment of terms of
contract etc.
• For import of books, no time limit.
• Evidence of import to be submitted within 3 months from date of import.
• Bill of entry, post parcel wrapper, courier wrapper with certificate.
• IDPMS- Import data Processing and Management system
Advance Remittance against Imports

• Advance remittance can be made without Bank guarantee:
o For import of goods up to USD 200,000 in case of normal importers
o Up to USD 5 Mn on case to case basis as per internal guidelines of
the Bank
o For import of services up to USD 5 lac.
• If PSU/Govt. Dept. is unable to obtain guarantee from bank of international
repute, waiver from Ministry of Finance required for advance remittance
exceeding USD 100,000.
• A.D. to follow up for import within 6 months from date of remittance.

Letter of Credit
• Letter of Credit means: the arrangement under which a Bank, on behalf of
the Buyer (Importer) undertakes the payment obligation, subject to
fulfilment of certain documentary conditions by the seller (Exporter).
• Requirements:-
1. Importer Exporter - Code (IEC) - unless
exempted
2. Import License - For Restricted Category Goods
3. Country of Export - Not banned /Politically
stable
4. Commodity under permissible category.
5. LC to be opened in terms of UCP (Presently Version 600)
provision.
6. Import License to be endorsed - Exchange Control Copy.
7. Margin, if any, stipulated - obtained.
8. Importer to be advised to cover exchange Risk.
• Basis of opening LC:-
1. Underlying Sale Contract or
2. Purchase Order, confirmed by the Supplier
3. Performa Invoice from Supplier duly accepted by the Importer
4. Indent or offer from Overseas Supplier or by his Authorised Agent.
• Parties to LC
1. Applicant / Buyer.
2. Beneficiary / Seller.
3. Opening / Issuing Bank.
4. Advising Bank. – Bank through which LC advised
5. Confirming Bank. - In case exporter is not confident with LC opening
bank he will ask importer to get LC confirmed by a Prime Bank. The
liability of the accepting bank is tantamount to that of opening bank.
6. Negotiating Bank.- The bank which negotiates the bill under LC
7. Reimbursing Bank- As per terms of LC the bank from whom
negotiating bank should claim reimbursement of amount under LC
Payment of bill under L/C:
o Sight Bill: Within 10 days o Usance Bill: On Due Date
Rate Applicable: The Bills Selling Rate on the date of payment or Forward
Contract Rate if F.C.is booked
Buyers Credit/Suppliers’ credit

(RBI/FED/2018-19/67 FED Master Direction No.5/2018-19 dt 26.03.2019-
Updated 08.08.2019)
• Amount under automatic route: Up to USD 150 million or equivalent per
import transaction for oil/gas refining & marketing, airline and shipping

companies. For others, up to USD 50 million or equivalent per import
transaction.
• Maturity period in case of import of non-capital goods is 01 year or the
operating cycle whichever is less. For shipyards / shipbuilders, the period
of TC for import of non-capital goods can be up to three years
• Capital Goods: Maturity period > 1 year up to 3 years
• All in cost Ceiling: Benchmark rate plus 250 bps spread.
Important Returns
• R Returns: Fortnightly Submission of data regarding all credits and debits
to Nostro and Vostro accounts.
Liberalised Remittance Scheme (LRS)
• For resident Individuals including Minors

• Maximum amount USD 250000 per financial year ( April-March)
• For any permitted current and capital account transactions
• The scheme is not available to corporates, partnership firms, HUF, Trusts
• The amount USD 250000 is effective from May 26, 2015 • The permissible
capital account transactions under LRS are:
 Opening of foreign currency account abroad
 Purchase of property abroad
 Making investment abroad
 Setting up wholly owned subsidiaries and joint ventures outside India
 Extending loans including loans in Indian Rupees to NRIs who are
relatives as defined in companies Act, 2013
• The limit of USD 250000 under the scheme also includes/subsumes

remittances for current account transactions also.
• Banks should not extend any kind of credit facilities to resident individuals
to facilitate capital account transactions.
• The individual will have to designate a branch of an AD through which all
the remittances under the scheme will be made.
• PAN card is mandatory for remittances.
• The applicants should have maintained the bank account with the Bank for
a minimum period of one year prior to the remittances for capital account
transactions.


Deposit
Retail Deposit
Types of Deposits Accounts-
• Savings Deposit
• Current Deposit
• Term Deposit
• Tax Saving Deposit
Types of Savings Account
• Suraksha SB Plus Deposit Scheme
• SB Small accounts
• BOI Savings Plus and Super Savings Plus
• Star Diamonds Savings Plus
• Jai Jawan Salary Plus
• Star Ratnakar Bachat Salary
• Star Mahila SB Account
• BOI Star Senior Citizen SB Account
• BOI Star Mahila Saving Bank
• BOI Star Yuva Savings Account
• BOI Rakshak Salary Scheme
• BOI Salary Plus Account
• Savings Bank Account for Pensioners
• BOI Gurukul Salary Account
• BOI Power Salary Account
• BOI Saral Salary Account
Important Instructions/Circulars on Deposits-

• Credit no limit, Customer Induced Debit Max 10 in a Month are FREE,
after Rs.10.00 per Entry, Except ATM & INTERNET transaction (HOBC
109/182 dated 28.12.2015 Service Charges w.e.f. 10.01.2016)
• HOBC 109/109 of 07.08.15 – CPS (customer profile sheet) by
Account Opening Official at the time of opening of a/c for Risk
Deciding
• HOBC 109/186 of 06.01.2016 – capture the maiden name of married
lady
• HOBC 109/167 of 10.11.2015 – change in name on account of
marriage or otherwise – Marriage certificate by State Govt or Gazette
notification along with Officially valid documents
• HOBC 109/131 of 04.09.2015 – Full details of Passport to be entered
• HOBC 109/39 of 08.05.2015 – only 6 Officially valid documents
(Aadhar Card, Voter ID, PAN, Driving Licence, Passport and NREGA
Card) and register Correct Mobile number
• HOCL 2015-16/162 of 06.01.16 – additional documents for proof
address – Utility Bills not more than two month old, Property or
Municipal Tax Receipt, Bank or Post Office SB a/c statement, Pension

or Family pension payment orders, letter of allotment from
employers, documents issued by Govt Deptt of Foreign jurisdictions
• HOBC 112/41Part I & II of 25.06.2018 – Bank’s policy for Settlement
of Deceased Claims
• HOBC 109/201 of 01.02.2016 – Master Circular on Current Deposit
Accounts
• HOBC 109/204 of 04.02.16 – Mandatory quoting PAN in specified
Transaction
• Each depositor in a bank is insured up to a maximum of Rs.1,00,000
(Rupees One Lakh) for both principal and interest amount held by
him in the same capacity and same right as on the date of
liquidation/cancellation of bank's licence or the date on which the
scheme of amalgamation/ merger/ reconstruction comes into force.
• HOBC 112/32 of 12.06.2018 New insurance coverage is provided to
5 select saving bank salary schemes - Jai Jawan Salary plus (SB 161
& 162), BOI Salary Plus-Para military Forces (SB 163), BOI
Salary Plus- State and Central Govt Employees (SB 163), BOI Salary Plus
– Employees of Public Sector Undertakings (SB163), Staff salary Accounts
(SB111) as per following:-
1) Group Personal Accident Death Insurance cover of Rs.30 lakhs*

2) Permanent Total Disability (as defined vide Insurance Policy) cover of
Rs.30 lakhs*
3) Permanent Partial Disability (as defined vide Insurance Policy) cover
of Rs.15 lakhs*
4) Air Accidental Insurance of Rs. 1 cr.*
* Condition:- Maximum insurance cover is available is either 10 times

Gross Annual Income of account holder or any of the above mentioned
applicable insurance coverage whichever is less.
 HOBC 111/171 dated 17.01.2018, BOI Rakshak Salary Scheme.

 HO Branch circular No.112/183 dated 18.03.2019, Provident fund
scheme.
 HO Branch circular No.112/184 dated 18.03.2019, Senior Citizen
saving scheme 2004.
 HO Branch circular No.112/185 dated 18.03.2019, Sukanya
Samridhi Yoyana.
 HO Branch circular No.113/157 dated 16.08.2019, Basic Saving
Bank Account (BSBDA)
Savings Bank - Who Can Open

• Individual singly or jointly
• Literate Minor of age of 10 year and more- can operate self

• TASC (Trusts, Associations, Societies, Clubs)
• Swarn Jayanty Gram Swarojgar Yojna (SJGSY)
• Self Help Group (SJG)
• Khadi Village Industry Commission (KVIC)
• District Development Agencies (DDA)
• Primary Co-operative Credit Society finance by Bank
• Marginal Farmers and Agricultural Laborers Agencies (MFALA)
• Drought Prone Areas Program me (DPAP)
• District Rural Development Agency/Society (DRDA/DRDS)
• Integrated rural Development Program me (IRDP)
• Integrated Tribal Development Agency (ITDA)
• Small Farmers and Development Agency(SFDA)
Savings Bank-Who Can’t Open
• Governments Departments, Panchayat Samities
• State Housing Boards, State Electricity Boards
• Industrial Development Authorities
• Water and Sewerage / Drainage Boards
• State Text Book Publishing Corporations/Society
• Metropolitan Development Authority
• State/District Label Housing Co-op Societies
• Political Party, Any Trading, Business
• Other Bank including RRB
• Co-Operative Banks , and Land Development Banks
Current Deposit
• Current Account is opened by Businessmen who can ha ve unlimited
regular transactions with the Banks both deposit an d withdrawal, it is
also known as Demand Deposit.
Types Of Current Accounts
• Star Benefit CD
• Normal CD Scheme
• Current Deposit Plus
• BOI Super Current Plus
• Star Crystal
• New Current Account Scheme
Term Deposit
• A Deposit held at a Bank that has a fixed term. Term Deposit is an
extremely safe investment and is therefore very appealing to
conservative low risk investors.
Types Of Terms Deposit –
• Fixed Deposit

• Short Deposit
• Monthly Deposit
• Quarterly Deposit
• Recurring Deposit
• Flexi RD
• Double Benefit Deposit
• Duguna Deposit
Tax Savings Deposit
Provide Tax exemption under Section 80C of Income Tax Act
Types of Tax Savings Deposit-
• Star Sunidhi Tax Deposit
• Capital Gain Tax Savings Deposit
• Sukanya Samrudhhi Account
• Public Provident Fund
Star Suraksha SB Plus

• Eligible-Individual (single or Joint) Except Minor, NRI, a/c under
Diamonds category,
• scheme code-SB101, charge code-103
• Min Balance = Rs.500/=
• Penalty for non-Maintenance Min Balance = Rs.54 & Rs.40 per
quarter
• FREE Accidental Death Insurance cover up to Rs.50000
• FREE one DD/PSI Rs.25000 PM
• FREE DEMAT -AMC for first year
• FREE International/Global ATM cum debit card FREE SMS/
Telebanking / Internet / Mobile
• FREE NEFT/RTGS through internet
• FREE Utility Bill payment facility through e-pay
• FREE 50 personalized cheque book p.a.
Small Accounts
Refer BC 106/8 of 04.04.2012
• Under scheme code:106
• Adult individuals can open the account; firms/joint accounts are not
eligible
• Nomination compulsory
• No third party withdrawal allowed
• Total credit in a financial year should not exceed one lakh
• Total of withdrawal and transfer not to exceed Rs.10 ,000.00;
maximum two in a month

• Balance at any point of time not to exceed Rs.50,000.00 • No Foreign
remittances
• Valid documents for opening a/c are Job card by NRE GA(National
Rural Employment Guarantee Authority) and UIA letter(Unique
Identification Authority)
STAR Diamond Savings

• New world of privileged Banking Average quarterly balance 1 lacs and
above
• FREE branch debit transaction per months Personalized cheque book
facility- YES
• FREE home delivery of DD/PSI through courier
• FREE statement on demands Relationship manager – YES
• FREE international gold credit card and International Debit Cards
Processing charges on Personal/ Retail loan - Waived DMAT a/c AMC
- Waived Cheque return inward/Stop payment charges- Waived
 Death accidental Air Travel Insurance – FREE up to Rs.5.00 Lacs
BOI Savings Plus

 AS per HO BC 112/123 dated 12.11.2018. It aims at Maximizing the
earning for the customer without jeopardizing liquidity Mixture of
Savings and Term Deposit Minimum balance in SB 50,000.00 and TDR
10,000.00, SDR for 15-179 days, DBD for 6m -120m Auto renewal for
same term in SB auto sweep in SB in multiple of 10,000.00 on daily
basis Any amount in excess of 50,000.00 will auto sweep out in
SDR/DBD in multiples of 10,000.00 on daily basis Penalty for not
maintain min balance 200.00 per quarter TDS norms will apply ROI in
SDR/DBD as per period of deposit.
BOI Super Savings Plus

 Initial Deposit Rs. 20.00 lacs
 AQB = RS. 5 lacs (Penalty RS. 500/per quarter)
 Sweep In & Sweep Out = daily
 Multiples amount sweep out=15 lacs
 Period of TDR = less than 6 month
 ROI = as applicable to Table of less than Rs.1 Crores
 FREE International Debit cum ATM cards
 FREE SMS/PHONE/INTERNET/ NEFT/RTGS
 FREE personalized cheque book
Jai Jawan Salary Plus HOBC 109/41 of 12.05.15

 Revised/ Upgraded Version of Defense Salary Package Jai Jawan
Salary Plus Account Scheme.
 Eligibility: All permanent employees of defense forces i.e. Indian
Army, Indian navy, Indian Air Force. There will be 2 categories.

i) Commissioned officers,(Scheme code-161),
ii) Non-Commissioned officers/staff (scheme code-162).
 Minimum Balance: NIL.
 Other facilities:
i. Group personal Accidental Death insurance cover:- Up to
Rs.30 lakhs*.
ii. Permanent Total Disability (as defined vide Insurance Policy)
cover of Rs.30 lakhs*
iii. Permanent Partial Disability (as defined vide Insurance Policy)
cover of Rs.15 lakhs*
iv. Air Accidental Insurance of Rs. 1 cr.*
Condition: Maximum insurance cover is available is either 10 times
Gross Annual Income of account holder or any of the above
mentioned applicable insurance coverages whichever is less.
Platinum Debit Card: Free, with cash withdrawal facility limit
Rs.50,000.00 and POS limit Rs.1 lakh. No annual charges and free
add on card.
 Internet banking & Star Sandesh: Free.
 RTGS, NEFT, Mobile Banking: Free.
 Cheque leaves: Free to all categories.
 Locker charges to self & family: Concession 30%.
 Interest concession: 0.05% less on retail loans, subject to minimum
MCLR Rate. 100% waiver of processing charges in Retail Loan.
 Star Share Trade: 1st year AMC waived.
STAR Ratnakar Bachat Salary

• HOCL No:2012-12/179 date 17.10.2012
• For employees of Diamonds Traders only
• Only at selected Branches i.e. Bullion exchange, Opera house, Bharat
diamond Bourse, Ahmedabad, Bhavnagar, Jamnagar, Pit hampur
Industrial Estate, and Surat Branches (NBG WEST AND CENTRAL)
• All feature of Star BOI Salary Plus & Scheme Code: 164
• Salary of employee can be of any range
• Waiver of MOU (at the request of employer)
• No overdraft facility
• FREE charges of Gift Cards
• FREE statement of account
• WAIVED cheque return charges inward
BOI STAR Senior Citizen Savings Bank A/C

• Refer HOBC 107/106 date 13.09.2013
• Launched on 108th Foundation Day
• Scheme code = 166
• Eligibility = all citizens of 57 years of age and above & all senior
citizens drawing pension from other bank

• AQB of Rs.10000.00 (penalties Rs.100.00 for accounts with cheque
book and Rs.60.00 for accounts without cheque book per quarter for
non-maintenance of minimum balance. Ref. HOBC 112/129 dated
12.12.2018)
• 6 DD per quarter free and nil annual charges
• Free global debit com ATM card
• Group personal accident death insurance cover of Rs.5 lakhs on debit
card, activated by single POS swipe for each financial year
• Discounted health check-up through Health India Medical Services
Pvt Ltd
BOI STAR Mahila Savings Bank A/C

• Refer HOBC 107/107 dated 13.09.2013
• Launched on 108th foundation day
• Scheme code = 167
• Eligibility= all adult women from salaried/self-employed or with
independent source of regular income like rentals.
• AQB rs.5000.00 (penalties Rs.100.00 for accounts with cheque book
and Rs.60.00 for accounts without cheque book per quarter for non-
maintenance of minimum balance. Ref. HOBC 112/129 dated
12.12.2018)
• 6 DD per quarter free if AQB Rs.10,000.00 is maintained.
• Free global Debit cum Atm Card and nil annual charges
• Easy overdraft-only for salary account holders - net salary credited
in sb a/c last month, at @ 3% over MCLR rate.
• Group personal accidental death insurance cover of Rs. 5 lakhs on
debit card activated by single POS swipe for each financial year
• Discounted health check-up through health India Medical Services Pvt
Ltd.
STAR Yuva Savings Bank Scheme
• BOI Star Yuva - SB 116 (HOBC 108/122 dated 22.9.14)
Category A
• Age 10 – 18 years
• Target group – students
• AQB – nil
• Transaction limit – total debit Rs.2 lac every financial year
• Cheque book – free 50 leaves
• Debit Card – Bingo ( No OD)
• Discounted health checkup
• Incentives for using alternate delivery channel
Category B
• Age 18 – 35 years

• Target group – students, professionals without dependents,
professionals with dependents.
• AQB –for students up to 21 years - nil,.
• AQB- for age group 21 – 35 years – Rs.5000.00 in metro/urban & Rs.
2500.00 in semi urban/rural branches (Penalties Rs.100.00 for
accounts with cheque book and Rs.60.00 for accounts without cheque
book per quarter for non-maintenance of minimum balance. Ref. HOBC
112/129 dated 12.12.2018).
• Incentives for using alternate delivery channel
• Cheque book – free 50 leaves
• Debit card – Bingo and other Debit Cards as per eligibility norms
• Discounted health checkup
• Free personal accidental insurance cover (death benefits) of
Rs.50,000.00 for age group of 18-21 years and after 21 years group
personal accidental death insurance cover of Rs. 5 lakhs on debit card
activated by single POS Swipe, this clause applies to every financial
year
BOI Rakshak Salary Scheme

• HO BC 111 / 171 dated 17.01.2018
• Scheme Code SB163 Sp. Charge Code RAKSA
• All existing employees of Central Police Organizations, Civil police,
Home guards, Traffic Police, Reserve Police of all states, RPF.
• Mini. Balance :- Nil, Global ATM-Debit Card, Internet banking, Star
Sandesh, RTGS/NEFT: Free
• Cheque leaves: 25 free every year.
• Passbook/ statement: Free of cost in home branch.
• DD / PS: Free up to Rs.50,000.00per year.
• Credit Card:- 1) International Gold credit Card, 2) India Card
• Online I-Tax return facility:- Available at discounted rate on BOI
website.
• Group insurance for PAI, PTD, PPD up to Rs.30 lakhs available for
AQB over Rs.50,000.00 and up to Rs.15 lakhs for AQB below
Rs.50,000.00.
• Letter to be obtained from employer on the organization’s letter head.
• No minimum balance charges, ledger folio charges or transaction
charges.
• Free ATM, international debit card, India card. Charges to be applied
from next year.
• Free personalized cheque book.
• Free Demat account for first year.
• Overdraft facility available. It is equal to the previous months net
salary.

• Waiver of processing charges and concession of 0.25% ROI in retail
loan facility to the a/c holders.
• For existing customers of above category, acceptance letter should
be obtained to change their scheme code to BOI Rakshak Salary
Scheme.
BOI STAR GURUKUL SAVINGS BANK ACCOUNT
• HO BC 108 / 199 dated 29.01.2015

• Scheme Code:SB-163, Spl Charge Code-GURU
• Eligibility: All permanent teaching and non-teaching staff of schools,
colleges, universities and educational institutions.
• There should be minimum 10 employees. Minimum take home pay
should be Rs.5000.00.
• The institution should agree to pay salary through the Bank account
and sign a letter of undertaking to this effect.
• Deviation if any to be approved by ZM only.
• Minimum daily balance: No minimum balance required.
• Overdraft facility Rs.2.00 lakhs or last 4 months net salary account
whichever is lower. Group Personal Accident Death Cover Insurance of
Rs.5.00 lakhs on debit card.
• Charges for excess debit entries: Customer induced Debit entries are
free for 10 entries. Beyond that Rs.10.00 per entry.
• Personalized cheque book: Up to 50 leaves free per year.
• Issuance of DD/PS: 24 DD/ PS up to Rs.50000.00 free per calendar
year.
• Global ATM cum Debit Cards: Free to all. Platinum cards for higher
salary earners. Annual charges from next year in both cases.
• Concession on loan: 0.25% concession in ROI on Home Loan and
Auto Loan subjected to MCLR, 50% concession in PPC on personal
loans.
• Star Share Trade: Demat, SB & online share trading (3 in 1) a/c
available to account holders. Charges are waived for first year.
• FREE - NEFT/RTGS, Ledger folio charges, Unlimited transactions on
BOI ATM and Internet, SMS and Telebanking, Utility bill payment
through e-pay.
BOI STAR SARAL SALARY ACCOUNT
• HO BC 108 / 199 dated 29.01.2015

• Scheme Code: SB-165, Spl Charge Code-0202, 0203, 0204.
• Eligibility: All employees on regular pay roll on any institute (Central
/ State Govt., PSU, Private sector etc.).
• There should be minimum 10 employees. Minimum take home pay
should be Rs.5000.00.

• Group Personal Accident Death Cover Insurance of Rs.1.00 lakhs.
• Charges for excess debit entries: Customer induced Debit entries are
free for 10 entries. Beyond that Rs.10.00 per entry.
• Personalized cheque book: Up to 50 leaves free per year.
• Issuance of DD/PS: 1 DD/ PS up to Rs.50000.00 free per month.
• Concession on loan: 50% concession in PPC on Home Loan, Personal
loan and Auto Loan.
• FREE – 100 cheque leaves per year, NEFT/RTGS, Ledger folio
charges, Unlimited transactions on BOI ATM and Internet, SMS and
Telebanking, utility bill payment through e-pay.
BOI SALARY PLUS ACCOUNT

• HO BC 108 / 199 dated 29.01.2015.
• Scheme Code: SB-163, Spl Charge Code-020 for Central Govt. /
State Govt./ Universities / Collage employees, 0203 for PSU
employees, 0204 for Private sector employees.
• Eligibility: All permanent on regular pay roll. Private Sector
employees, approval of Zonal Manager is required.
• Minimum take home pay should be Rs.10,000.00 at least 70%
employees Whose accounts to be opened.
• Group Personal Accident Death Cover Insurance of Rs.10.00 lakhs for
Central Govt. / State Govt./ Universities / Collage /PSU employees and
Rs.5.00 lakhs for Private Sector employees.
• The institution should agree to pay salary through the Bank account
and sign a letter of undertaking to this effect.
• Deviation if any to be approved by ZM only.
• Overdraft facility Rs.2.00 lakhs or last 4 months net salary account
whichever is lower
• Personalized cheque book: 100 leaves free per year.
• Issuance of DD/PS: 24 DD/ PS up to Rs.50,000.00 free per calendar
year.
• Concession on loan: 0.25% concession in ROI on Home Loan and
Auto Loan subjected to MCLR, 50% concession in PPC on personal
loans.

• FREE - NEFT/RTGS, Ledger folio charges, unlimited transactions on BOI
ATM and Internet, SMS and Telebanking, Utility bill payment through
e-pay.
STAR POWER SALARY ACCOUNT
 Ref. Circular No.100/94 dt. 07.09.2006

 Scheme code SB101, Spl. Charge code 101)
Conditions:
 There should be minimum 25 employees.
 Institution should open one CD a/c with us.
 Minimum net salary of the employees should be Rs.10,000.00
 Centralized salary data base is created & provided to the company /
Govt. department.
 Memorandum of understanding (agreement) is to be obtained from
the employer.
 No minimum balance charges, ledger folio charges or transaction
charges.
 Free ATM, international debit card, India card. Charges to be applied
from next year.
 Free personalized cheque book.
 Free Demat account for first year.
 Free personal accident insurance cover.
 Overdraft facility available. It is equal to the previous month’s net
salary.
 Waiver of processing charges and concession of 0.25% ROI in retail
loan facility to the a/c holders.
Savings Bank Account for Pensioners
 HO BC 107/ 143 dated 23.10.2013. Scheme code SB 121.

 All pensioners who are drawing pension through BOI irrespective of
age.
 Minimum daily balance: No minimum balance required.
 Group Personal Accident Death Cover Insurance of Rs.5.00 lakhs on
debit card.
 Charges for excess debit entries: Customer induced Debit entries are
free for 10 entries.
 Personalized cheque book: Up to 50 leaves free per year.
 Issuance of DD/PS: 6 DD/ PS free per quarter.
 Global ATM cum Debit Cards: Free to all. Platinum cards for higher
 Overdraft facility – maximum amount 2 months pension amount.
BASIC SAVINGS BANK DEPOSIT ACCOUNT (BSBDA)
 HOBC 113/157 dated 16.08.2019.

 In terms of the RBI guidelines on Financial Inclusion, Value added
services are available to BSBD account holders, w.e.f. 01.09.2019
subject submission of written mandate for their option and acceptance

of payment of applicable charges thereof to the Bank branch. For
opening of a new BSBD account, a customer must give a Declaration
to bank in writing that he\ she (customer) is not having a BSBD
account in any other Bank. This is a mandatory submission to Branch
by resident approaching Bank branch / BC outlet / through on line
application etc. For giving such declaration no service charges is levied
to customer in terms of RBI guide lines.
 Existing Basic banking SB/ Small SB accounts willing to conversion to
BSBDA have to approach person in at Branch counter in submit written
application in presence of Branch official. After following due KYC
norms and completion of re-KYC compliance by each of SB no frill
account holder. Further, a customer must give a Declaration to bank
in writing that he\ she (customer) is not having a BSBD account in any
other Bank.
 Eligibility : Individual resident, singly or jointly (Maximum not more
than 4 joint holders), Minor of age above 10 years, An illiterate/
Visually challenged / Physically challenged / individual suffering from
Leprosy is also eligible to open a BSBD account.
 Bank customer is offered with following basic minimum facilities in
BSBDA, free of charge, without requirement of minimum balance:
1. The deposit of cash at Bank branch as well as ATMs/ CDMs.
2. Receipt / credit of money through any electronic channel or by
means of deposit/collection of cheque drawn by Central/State
Government agencies and departments.
3. No limit on number and value of deposits that can be made in a
month.
4. Minimum of four withdrawals in a month, including ATM
withdrawals.
5. ATM card of ATM-cum-debit card.
 The BSBDA shall be considered a normal banking service available to
all.
 Value added services like issuance of cheque book in BSBDA subject
to customer paying applicable service-Charges (board approved rates).
 This account shall not have the requirement of any minimum balance
maintenance. No charges will be levied for non-operation / activation
for operation /Dormant / small / Jan Dhan account.
 Nomination is compulsory to ensure least operational problems/ issues
in the account.
 BSBDA scheme code: SB-101 with CHRG_LEVEL_CODE = NOMIN and
CHRG_COLL_FLG +N (as per HO BC 111/39 issued by HO compliance
or as amended from time to time).
MOTOR ACCIDENT CLAIMANT ANNUITY DEPOSIT (MACED)
MOTOR ACCIDENT CLAIMS TRIBUNAL (MACT) SB A\c
 Br. 112\56 dated 03/07/2018
 TD549 – Motor accident claims Term Deposit
 SB170 – MACT SB account

 These accounts are designed as per Hon’ble High Court of Delhi’s
directions and as advised by IBA.
 No deviation is permitted other than what is mentioned in the
scheme.
Motor Accident Claims Term Deposit
Purpose – One time lump sum amount as decided by the court/ tribunal,
deposited to receive in EMIs comprising of principal and interest.
1) Eligibility – Individuals including minors through guardian.

2) Mode – Singly
3) Type of Account – Motor Accident Claims Annuity Deposit Account
(MACAD)
4) Amount – Based on monthly annuity of Rs.1000.00 for relevant
period.
5) Period – 36 to 120 months
6) If period <36, then FD only. If 120< then by court order
7) Rate of interest – as per prevailing rate.
8) Nomination – Available, as per court directive.
9) Receipts/advice – No receipt. Passbook only.
10) Loan facility – not available.
11) Premature Payment– as per court order. No penalty. Nominee
has option to continue with annuity.
12) Tax – TDS on interest portion as per I-tax rules.
MACT CLAIMS SB ACCOUNT
 Eligibility – individual including minor (through guardian) in single
name.
 Balance limit – no limit.
 Cheque book/ATM/ debit card/welcome kit/net-banking/ IB & MB
facilities – Not applicable.
 Operation – only single operation (minor through guardian).
 Withdrawal – through withdrawal slip or biometric.
 Product change / account transfer – not allowed.
 Place of account opening – as per court direction.
 Nomination – as per court order.
 Passbook /statement by e-mail – available.
Revised Modification/ Changes in Tiered Current Accounts

HOBC 113/93 of 13.08.2019 - Master Circular on Current Account Deposits
Penal charge of Rs.600.00 per quarter if AQB goes below Rs.
7500.00 in Metro, Rs.500.00 per quarter if AQB goes below Rs.
5000.00 in Urban, Rs.500.00 per quarter if AQB goes below
Rs.2000.00 in semi-urban and Rs.350.00 per quarter if AQB goes
below Rs.2000.00 in Rural Branches shall be levied in Tiered
Current Accounts. These charges are Quarterly and are Exclusive of
applicable GST. These charges are applicable from 15.09.2019.

Up-gradation and down-gradation of tiered Current Account every
quarter by the system on the basis of AQB maintained in the last
quarter. But, as stated above, penal charges shall be levied only if AQB
goes below minimum threshold limit.
• Since the penal charges shall be levied only if AQB (required to be
maintained in a quarter) goes below the minimum threshold limit.
Accordingly, competent authority has withdrawn the authority
given under Branch Circular No. 107/218 dated 03.03.2014 to
reverse the penalty levied for non- maintenance of AQB in
tiered current accounts. The delegation was vested with the Branch
Heads of all grades/ scales to avoid any customer complaint and also
due to the reason that it was not feasible to obtain written consent of
ALL account holders before the implementation of tierisation.
Revised Modification/ Changes in Other Current Accounts

• Bank has switched over to Average Quarterly Balance
requirement in Star Benefit CD Plus Account and Star Crystal
Current Account. Accordingly, whole portfolio of Current Account
Deposits has moved over to AQB concept. To make it in line with other
AQB based accounts, Star Benefit CD Plus and Star Crystal
Current shall be charged with penalty of Rs.600.00 per quarter
for non-maintenance of stipulated AQB of Rs.5000.00 in an
account irrespective of category of Branches. The accounts under the
said schemes shall not be available for tierisation. These charges are
Quarterly and are Exclusive of applicable service tax.
• Increase in penal charges on account of non-maintenance of
minimum Average Quarterly balance in Current Plus Deposit
Rs.2 Lac and Revised Penal Charges Rs. 1000.00 +Applicable
Service Tax per quarter and Super Current Plus Deposit
(Sweep-Out/Sweep-in accounts) AQB Rs.35 Lac and Revised
Penal Charges Rs. 5000.00 +Applicable Service Tax per quarter.
Current accounts may be opened in the names of:

• Individual - Single Accounts
• Two or more individuals - Joint accounts (Can be opened with
operational instructions "Either or Survivor" or Former or Survivor" or
"Any One/All of the Joint Account Holders")
• Sole Proprietary concerns
• Partnership Firms
• Joint Hindu Families or Firms • Associations, Clubs, Societies etc.
• Limited Companies
• Executors and Administrators
• Trusts
• Provident Funds
• Liquidators

• Other Banks
• State Financial Corporations
Note: In approved cases, branches may open non-operating accounts
called "Collection Accounts".
Type of Current Accounts

Tierised Current Accounts- The features/ value additions available to
Tierised Current account holders:
• No Daily Minimum Balance Stipulation

• Lower Average Quarterly Balance requirement for Rural Brs
(Rs.2000.00), Semi Urban Brs (Rs.2000.00), Urban Brs (Rs.5000.00)
& Metro Brs (Rs.7500.00)
• New Current Accounts can be opened on DAY ONE ITSELF at higher
tierised levels like Diamond or Platinum etc. as the case may be, as
requested by the prospective customer
• Penal charges to be levied only if AQB goes below the minimum
threshold limit i.e. Rs 7500.00 in Metro, Rs 5000.00 in Urban & Rs
2000.00 in Semi-urban/ rural.
• Free Cheque Leaves — Originally once with opening of Account
• Free/ Reduced NEFT/RTGS Charges
• Free/ Reduced Leger Folio Charges
• Free Demand Drafts/ Pay Orders
• Waiver on Processing Charges of Retail Loans
• Waiver on AMC charges on Demat Account (only for first year)
• Free/ Reduced Charges on Cash Handling for Cash Deposit
• Discount on Point of Sale (POS) offer
• Improved Forex Rates
Categories of Tiered Current Accounts and their AQB requirement

• BOI Normal Current Account Below Rs.20,000.00
• BOI SILVER Current Account Rs. 20,000.00 to less than Rs.50,000.00
• BOI GOLD Current Account Rs. 50,000.00 to less than
Rs.1,00,000.00
• BOI GOLD PLUS Current Account Rs. 1,00,000.00 to less than
Rs.2,00,000.00
• BOI DIAMOND Current Account Rs. 2,00,000.00 to less than
Rs.5,00,000.00
• BOI DIAMOND PLUS Current Account Rs. 5,00,000.00 to less than
Rs.10,00,000.00
• BOI PLATINUM Current Account Rs.10,00,000.00 to less than
Rs.20,00,000.00
• BOI PLATINUM PLUS Current Account Rs. 20,00,000.00 and above.

Other Current Accounts
Star Benefit CD Plus Account

The account was launched on Bank's foundation day in the year 2010 vide
Branch Circular No. 104/72 dated 08.09.2010 to cater to the needs of small
traders/manufacturers. The features of Star Benefit CD Plus account is as
under:-
• Average Quarterly Balance Rs.5,000.00 per quarter
• Free DD/PSI Up to Rs.5.00 Lac each per month
• Star Speed Cheque Collection Free
• Debit Card for individuals & Proprietorship concerns Free for First
year.
• Prevailing AMC charges from 2nd year onwards
• First Time Free Cheque Book of 50 leaves. Afterwards issue of MICR
Cheque as per prevailing charges
• SMS/Tele/lnternet Banking Free
• Remittance of funds (NEFT/RTGS) through net banking Free
• Penal charges on account of non-maintenance of stipulated AQB
requirement Rs.600+Applicable Service Tax per quarter
• The accounts under the said scheme shall not be available for
tierisation
• Note: - Star Benefit CD Plus Current A/c is a part of the existing
Current Deposits (Scheme Code — CD201).
• To allow benefit of Star Benefit CD Plus Account while opening the
Account through OAAC / HOAAC menu option user has to select "CDP"
in Special Charge code field.
Star Crystal Current Account-

It was launched by the Bank in the year 2012 for Diamond Traders vide
Branch Circular Letter No. 2012-13/179 dated 17.10.2012. Features
Benefits
• Average Quarterly Balance Rs.5,000.00 per quarter
• Free DD/PSI / RTGS /NEFT through branch up to Rs.5.00 Lac each
per month
• Star Speed Cheque Collection Free
• Debit Card for individuals & Proprietorship concerns Free for First
year. Prevailing AMC charges from 2nd year onwards
• Cheque Book- 100 Leave Free per annum
• India Credit Card Free
• SMS/Tele/Internet Banking Free
• Remittance of funds (NEFT/RTGS) through net banking Free

• Penal charges on account of non-maintenance of stipulated AQB 1
requirement Rs.600+Applicable Service Tax per quarter
• The accounts under the said scheme shall not be available for
tierisation
• Star Crystal Current A/c is a part of the existing Current Deposits
(Scheme Code— CD201).
• To allow benefit of Star Crystal Current Account while opening the
Account through OAAC / HOAAC menu option user has to select
"CRYST" in Special Charge code field.
• Accounts under Star Benefit CD Plus (Sp. Chg. Code-CDP) and Star
Crystal Current Account (Sp. Chg. Code-CRYST) will not available for
tierisation.
• To Convert Star Crystal or Star Benefit CD Plus Current Account into
tiered Current Account, Branch needs to give special charge code "00"
(NO CONCESSIONS IN CHARGES) and according the respective Free
Code 10 (S,G,GP,D,DP, P, PP,NO) can be assigned to the account in
ACM Menu-V FreeCode10.
Current Deposit Plus Account-

• This product is a combination of Term Deposits and Current Deposit
with very attractive features and incentives for the Customers. The
product would maximize the returns for the customers on their short-
term funds which otherwise would not earn any interest in the Current
Deposit Account. On maturity, the Short Deposits both principal and
accrued interest, is renewed automatically for the original tenure.
• During the tenure of Short Deposits, if need arises, the deposit can
be paid before maturity on 'last in first out' basis without penalty so as
to ensure that the customer does not bear higher interest loss. In such
a case, the latest Fixed Deposit will be broken (in multiples of Rs.
2,00,000.00) to meet the shortfall if any, in the balance in Current
Deposit Account if cheques are drawn in excess of balance available.
• As per BC 112/123 dated 12.11.2018 The Salient features of the
scheme are as under:- • Initial Deposit Rs. 4 Lakh.
• Average Quarterly Balance Rs. 4 Lakh.
• Sweep in / out amount in multiples of Rs.75,000.00.
• Maximum Cap for Term Deposit No upper Ceiling ( Upper Ceiling of
Rs. 10 cr was removed vide Br. Circular No. 104/177 dt.20.09.2010)
• Rate of Interest Card Rates as applicable to deposits of above
maturity periods
• Penalty Rs. 1000.00 per quarter for non-maintaining AQB of Rs. 4
Lac.
• Tax Deduction at Source- the TDS norms would equally apply to
accounts and would be handled in the usual manner.
• Lien on BOI Current Deposit Plus Account. The customer must not
assign, transfer, charge, pledge or otherwise encumber any "BOI

Current Deposit Plus Account" except in favour of our Bank, as a
security for any obligation of the customer to the Bank.
• The accounts under the said scheme shall be available for tierisation
and benefits & modalities of respective category of tierised account
shall be applicable.
BOI Super Plus Current Account-
The Salient features of the scheme are as under:-
• Initial Deposit Rs.50 Lakh
• Average Quarterly Balance Rs.35 Lakh
• Sweep in Daily, Sweep out Daily
• Multiple Amount Rs.15 Lac (Minimum balance in FFD portion is Rs.15
Lac)
• Maximum Cap for Term Deposit No upper Ceiling (Upper Ceiling of
Rs.10 Cr was removed vide Br. Circular No. 104/177 dt.20.09.2010)
• Rate of Interest Card Rates as applicable to deposits of above
maturity periods
• Penalty Rs.5000.00+Applicable GST per quarter for non-maintaining
AQB of Rs.35 Lac.
• Tax Deduction at Source- the TDS norms would equally apply to
accounts and would be handled in the usual Manner.
• Lien on BOI Current Deposit Plus Account - The customer must not
assign, transfer, charge, pledge or otherwise encumber any "BOI
Current Deposit Plus Account" except in favour of our Bank, as a
security for any obligation of the customer to the Bank.
• The accounts under the said scheme shall be available for tierisation
and benefits & modalities of respective category of tiered account shall
be applicable.
• Sweep out from Current Deposit Plus/Super CD Plus for Rs 1 cr. and
above, shall attract card rate applicable to respective deposit segment
of corresponding maturity bucket. Each Sweep out entry is treated as
separate receipt.
Current Account for NRI Customers-
The NRI customers can open Current Account with any of our BOI branch.
The scheme code for Current — Deposits (NRO) is CD 205 and the scheme
code for Current — Deposit (NRE) is CD 206.
NRE Current Account-
• NRIs (individuals/entities of Bangladesh/Pakistan nationality/
ownership require prior approval of RBI).
• Account can be held jointly by a Non-Resident Indian (persons of
Indian nationality or origin) / with a Resident Indian (Former or
Survivor basis).
• A Resident Indian can operate the account
NRO Current Account

• Any person resident outside India (other than a person resident in
Nepal and Bhutan).
• Individuals/entities of Pakistan Nationality/ ownership, entities of
Bangladesh ownership and erstwhile Overseas Corporate Bodies
require prior approval of Reserve Bank of India. Account can be held
jointly by a Non-Resident Indian (persons of Indian nationality or
origin) / with a Resident Indian only as a Mandate / POA holder.
• The Resident Indian must be a close relative as defined in Section 6
of the Companies act, 1956.
• Taxation Funds in NRE Account are exempted from income tax in
India. Funds in NRO Account are taxable under Indian Income Tax Act
• The rules/guidelines for NRI are subject to change from time to time
and it will be as per the latest guidelines issued by RBI/Bank.
STAR RERA Plus
• There will be three accounts under the same cust ID and scheme code
CD225
• RERA Collection Account [RCA]:- All collection proceeds of the project
shall be deposited.
• RERA Project Account [RPA] :- Minimum 70% or of the proceeds from
the RCA will be transferred as per mandate given by the a/c holder.
• Operative Account [OA] :- Balanced fund transferred from RCA i.e.
30% or less.
Note:- If present CD account is to be used as OA, then RCA & RPA
must be opened in the same cust ID.
Only one account opening form should be used for all the 3 accounts.
Following documents should be obtained:-
1) Copy of RERA registration certificate or RERA application form.
2) Copy of ESCROW agreement.
3) An undertaking that the promoters will be solely responsible for any
deviation from RERA provisions.
4) Standing instructions for transfer of funds.
• No cheque book to be issued.
• Only viewing facility for internet banking.
• At the end of the day, system will transfer clear balance from
RCA to RPA & OA as per pre decided ratio i.e. minimum 70% to
ROA.
• Withdrawal in RPA is permitted only as per RERA rules and up
on reciept of undertaking of the account holder issued on its
letterhead and along with any other document as per state Govt.
directives.
• Up on completion of the project, if the developer makes a
written request to transfer funds from RPA, it can be done if he
gives completion certificate and occupancy certificate.
Term Deposits
Short Deposit

• Period 7 days to 179 days
• Minimum amount Rs1,00,000.00 for 7 to 14 days
• Interest is payable on the basis of actual number of days on the basis
of 365 days in a calendar year
• Refer HOBC 98/256 of 31.03.2005
Fixed Deposit
• Period 6 months to 120 months
• Minimum amount –
• 10000 for Metro/Urban
• 5000 for Rural/Semi Urban
• 5000 for Senior Citizen
• Interest will be calculated for the complete months and when the
terminal month is incomplete the actual number of days on th e basis
of 365 days in a calendar year
• Payment of interest on Half Yearly Basis on 1st October and 1st April
• Refer HOBC 98/256 of 31.03.2005
Monthly/Quarterly Income Certificate
• All SB/CD account holder are eligible
• Payment of Interest
• every month at Discounted value
• every quarter at actual
• Minimum amount is Rs.10,000.00
• TDS is applicable
• Nomination is available
• LOAN/OD is available.
Recurring Deposit
• Only Individual, Blinds, Illiterate, Minors
• Period ranges from 3 months to 120 months (in multiples of 3
months)
• Minimum monthly instalment -
500 in Metro/Urban, 100 in Rural/Semi Urban
• Instalment payable on or before last day of month
• Penalty for late instalment
• 1.50/per 100 for deposit 5 year
• 2.00/per 100 for more than 5 year
• Waiver of late instalment by advance instalment
Flexi Recurring Deposit (New Changes) HOBC: 108/125 of 24.9.14
• Only Individual & Joint accounts including Minors
• Minimum = Rs.500.00 for Metro & Urban and Rs100.00 for Semi
Urban & Rural, Maximum “NO LIMIT”
• Flexi Instalment = Any amount in multiples of core instalment
• Period = Min 12 month to Max 120 month (in multiple of 3 M)
• Penalty for late instalments

• No Advance instalment is allowed for flexi instalments
• Maturity value = Will be calculated by the System, depending on the
amount of flexi instalments, NO FIXED maturity value
• Standing Instructions only for Core Instalment only
• No Auto renewal
• Loan/OD/Advance available
• TDS Applicable
Double Benefit Deposit
• Period ranges from 6 months to 120 months (beyond 120 months
allowed in case of minor or on having court order)
• ROI quarterly compounded payable half yearly in September and
March /or at renewal/closure
• Minimum amount -10000 in Metro/Urban, 5000 in Rural/Semi Urban,
5000 for Senior Citizen
• Minimum amount not applicable in Subsidy/Grant of Government
Department
• Principal along with compounded interest payable on maturity /or
renewal/closure
• Premature payment allowed without penalty
• Advance is available
• TDS is applicable as per IT ACT
• Safe investment with fixed and predetermined maturity
• Staff and Ex-Staff will get interest @ 1% extra
• Senior Citizen will get additional interest rate @0.50% ( Refer HOBC
107/68 of 08.07.2013 & 108/140 of 13.10.2014), on deposit of
Rs.5000.00 & above but less than one Crores for the deposit period
from 6 month to 120 months.
Star Sunidhi Tax Savings
• Refer HOBC 100/90 of 01.09.2006
• Exemption under sec 80C of Income Tax Act
• Only Individual, HUF, NRI (under NRO category)
• Minimum Rs.10,000.00 Maximum Rs.1,50,000.00
• Type = FDR/MIC/QIC/DBD @ROI as applicable on TDR
• Period minimum 5 year maximum 10 year
• Premature not available up to 5 year
• No advance is available
• Nomination is available except for and on behalf of Minor
• Pledge of security not allowed
Capital Gain Account 1988
Refer Master Circular HOBC 109/51 OF 25.05.15
 Section 54, 54B, 54D, 54F, 54G, and 54GB of the Income tax Act 1961,
provide for capital gains tax for a seller if, the Seller /assessed utilize
the amount of capital gain for specified purposes.

 Capital Gains Accounts can be opened for the following specified
transactions which results in capital gains.
a. Sale of residential property (Section 54)- Long Term Capital Gains
b. Transfer of agriculture land (Section 54 B).
c. Compulsory acquisition of land & building forming part of an
Industrial Undertaking ( Section 54D).
d. Transfer of any other “Long Term Capital Asset” (other than
residential House –Section 54F.
e. Transfer of Assets on shifting of industrial undertaking from urban
area (section 54G).
f. Transfer of residential property not to be charged in certain cases
(Section 54GB)
 Branches Authorized: Non Rural Branches (i.e. All Semi-Urban/
Urban/ Metro Branches).
 Types of Accounts: Account ‘A’ (Savings Bank), Account ‘B’ (Term
Deposit cumulative/ non-cumulative) (Savings Plus Scheme not
permitted).
 Eligible Applicants: Resident Individuals , Hindu Undivided Family
(HUF), Proprietorship firms, Companies, Association of persons etc.
Non –Resident Indians (NRIs), Artificial Judicial persons who have
capital gains, taxable in India.
 Period of Deposit: Account ‘B’ can be opened for period not exceeding
2 to 3 years from the date of transfer of original asset as given under.
i. Maximum 24 Months : If Capital Gain is under Section
54B,54F,54G
ii. Maximum 36 Months: If Capital Gain is under Section 54,54D.
 Minimum Balance: Account ‘A’ - Rs 1,000.00, Account ‘B’ –
Rs.10000.00. Penal charges of Rs.300.00 per quarter for not
maintaining AQB of min. Rs.1000.00 in account A.
 No Cheque Book and Debit card Facility.
 No outward NEFT /RTGS Facility (Inward permitted).
 Rate of Interest: Account ‘A’ – Applicable to SB Accounts,
Account ‘B’ – As per Bank’s TDR Rates.
 No additional interest rate benefits for Senior Citizens, staff and Ex-
staff.
 No Lien: Amount cannot be pledged or offered as Security for any loan
or guarantee and cannot be charged or alienated.
 Transfer of Account: Account can be transferred to another Branch of
the same Bank.
 Withdrawal: Amount can be withdrawn from deposit A” (Savings Bank
Account) by furnishing an application in form ‘C’ along with Pass Book.
 Premature withdrawal from Deposit ‘B’ (TDR) is permitted by
converting account from ‘B’ to ‘A’ and by levying 1% penal interest for
premature payment as in case of TDRs. Form B will be used for
conversion of Account ‘B’ to ‘A’.
 For Scheme A Accounts no cheque book or ATM Card to be issued

 Withdrawal can be made from deposit SB by furnishing an application
in Form C along with Pass Book (no cheque book will be issued)
 Premature payment is permitted from Term Deposit and by levying 1%
penal interest. Form B is used for conversion of TD account SB
 Interest is not exempted under Income Tax Act, 1961 and TDS will be
deducted as per rules. Maximum period of TDR is 36 months.
 Proof of utilization of amount withdrawn, to be obtained
 Nomination on Form E-max 3 nominee and for variation/cancellation
Form F. If depositor dies Form H for nominees for payment.
 Withdrawal cash up to Rs.25000.00 and above by crossed DD.
 Closure of account in Form G.
 Renewal of overdue deposit is permitted.
Sukanya Samrudhhi Account (SSA)
 Scheme code: SK169.
 Tax benefit under section 80(C) of Income tax Act 1961 for investment
made during financial year. Tax is exempted at the time of investment/
accrued interest / maturity amount.
 Eligible person: Depositor as an individual on behalf of a minor girl
child of whom he or she is the guardian. NRIs are not eligible to open
this account.
 One girl one account: Can’t open more than one account for the same
girl child under the scheme. Accounts for two girls can only be opened.
Third account can be opened in case of twin only.
 Age restriction: A/c can be opened up to the age of 10 years.
 Necessary document: At the time of account opening guardian has to
submit date of birth certificate of the girl child. (Scheme code: SK169).
KYC documents as per existing norms.
 Initial deposit: Account can be opened with minimum Rs.250.00 &
thereafter in multiple of Rs.50.00 and maximum Rs.1.5 lakhs can be
deposited in a financial year.
 Tenor of the Account: Deposit can be made up to 14 years from the
date of account opening. Maturity of the account is 21 years from the
account opening date or till the marriage whichever is earlier.
 ROI: As per HO advise from time to time.
 Treatment of Irregular account: If account becomes irregular by not
depositing Rs.250.00 per year, it can be regularized by paying penalty
of Rs.50.00 per year along with minimum yearly deposit of Rs.250.00.
If in case of any account default is not regularized within 15 years of
opening of account than whole deposit shall be eligible only for ROI
prescribed for Post Office Saving Bank at the time of maturity. Any
amount Credited wrongly by way of interest in to the account under
default shall be reverted.
 Account operation: Natural guardian or legal guardian of the girl child
will operate the account, till the girl child attains age of 10 years
thereafter she herself will operate the account.
 Passbook: It will be issued.
 Transferable: Account is transferable.

 Premature closure: On the death of the account holder, account will be
closed immediately and amount with interest will be paid to the
guardian.
 Premature withdrawal :
i. To meet the financial requirements like higher education, marriage
- 50% of the account balance available at the end of preceding FY
after the a/c holder attains 18 years age or has passed tenth
standard, whichever is earlier.
ii. Closure on or before maturity of the a/c allowed due to marriage
of a/c holder on submission of affidavit that she is not less than
18 years on the date of closure of account.
 Agency Commission to the Bank on SSA Account:
a. On receipt transactions:
(i) Rs.50.00 per transaction for transaction over the Counter.
(ii) Rs.12.00 per transaction for e-mode
b. Payment Transaction: 5.5 paise per Rs. 100.00
HO Branch Circular no. 113/237 dated 11.03.2020.
Senior Citizen Saving Scheme (SCSS)- 2004
 Senior Citizen Saving Scheme 2004 is a Government of India Scheme
which is targeted at senior citizens & retired personnel and it provides
high yield and tax benefit under section 80 C of Income Tax Act, 1961
along with a regular income.
 Eligibility: The account can be opened by following individuals:
1. An individual who has attained the age of 60 years & above on the
date of opening of account.
2. On superannuation/voluntary retirement, retired personnel of 55
years & more but less than 60 years as on date of account opening.
3. Retired Defense personnel above 50 years.
4. HUF & NRI are not eligible to open these accounts.
 Joint account with spouse can be opened. While opening the joint
account age of first account holder will be considered for eligibility.
 Minimum Rs.1000.00 & thereafter in multiple of Rs.1000.00 and not
exceeding Rs.15,00,000.00.In case multiple SCSS accounts the
cumulative deposit including all accounts should not exceed Rs. fifteen
lakhs.
 In case depositor age is less than 60 years, deposit is restricted to
retirement benefits or Rs. fifteen lakhs which ever is lower.
 Rate of interest will be same as applicable on the date of account
opening for the entire tenure of the account till its maturity. Presently,
Gol has decided to announce ROI on quarterly basis w.e.f 1st April
2016.
 Interest shall be paid quarterly in the saving account of the depositor
on 1st working day of April/ July/ October/ January for the quarter
ended March/ June/ September/ December.
 In case of an account is extended, the account shall earn interest at
the rate applicable to new account opened or to be opened.

 In case account is not extended nor closed, post maturity interest will
be applicable as per Post Office Saving Bank interest (Presently 4%)
rate up to the end of the month preceding the month of closure.
 Maturity of the account is after five years from the date of account
opening.
 Account can be extended for further period of three years within a
period of one year from the maturity period of five year.
 In case of premature closure –
1. In case, the account is closed before one year after the date of
opening of account, interest paid on the deposit in the account shall
be recovered from the deposit and the balance shall be paid to the
account holder.
2. After one year but before the expiry of two years from the date of
opening of account, an amount equal to one and half percent of
deposit shall be deducted and balance paid to the depositor.
3. After two years from the date of opening of account, an amount
equal to one percent of deposit shall be deducted and balance paid
to the depositor.
4. The depositor availing the facility of extension of account may be
permitted to withdraw the deposit & close the account at any time
after expiry of one year from the date of extension of account
without any deduction.
5. No deduction shall be made in case of premature closure of an
account at any time due to death of the depositor.
 Nomination can be made for one or more persons.
 Agency Commission to the Bank on SCSS Account:
HO Branch circular No.113/238 dated 11.03.2020.
Public Provident fund IPPF) scheme 1968
 The subscription to PPF qualifies for exemption under section 80(C) of
the Income Tax Act, 1961.
 Opening of PPF Account:
I) A resident Indian individual can open a PPF Account in his/her own
name. II) There is no age limit for opening of PPF account.
III) Individuals can also open an additional account on behalf of each
minor (more than one child also) of whom he is the guardian (either
father or mother can open PPF account on behalf of minor
son/daughter) or a person of unsound mind of whom he is the
guardian.
 The individual can have only one PPF account. Joint accounts are not
allowed.
 HUF and NRI are not eligible to open PPF account.

 Nomination can be made for one or more persons but not exceeding
four individuals..
 The interest as decided by the Government of India from time to time.
The minimum balance in the account between the close of the 5th day
and the end of the month is reckoned for interest calculation (Interest
is to be credited to the PPF account yearly i.e. at the end of every
financial year but the rate of interest is decided quarterly).
 The subscription, which shall be in multiples of Rs.50.00 (minimum
Rs.500.00 and currently maximum Rs.1,50,000.00 per annum) may be
paid into the account in one lump sum or instalments not exceeding
twelve in a year. In case of additional account on behalf of minor, the
total subscription including the minor accounts should not exceed the
maximum threshold of Rs.1,50,000.00 in a F.Y.
 The PPF account can be transferred at the request of the subscriber
from one authorized branch/ bank/ post office to another branch/ bank/
post office.
 The PPF account shall mature after expiry of 15 financial years from the
close of financial year in which the initial subscription was made.
 Premature closure is allowed only after completion of five financial
years from the date of account opening. Such premature closure is
subject to deduction of one percent (1%) interest from the applicable
interest from time to time since the date of account opening.
 A subscriber can make only one withdrawal during a financial year. The
first withdrawal can be made any time after the expiry of 5 years from
the end of the year in which the initial subscription was made.
 A subscriber can avail a loan against the PPF account, after the expiry
of one year from the end of the year of opening the account, but not
after the end of the fifth year in which the initial subscription was made.
The amount of the loan is restricted to 25% of the balance including
interest at the end of second immediately preceding year. The loan
(principal) is repayable either in lump sum or in convenient
installments, not exceeding 36.
 Agency Commission to the Bank on PPF Account:
HO Branch circular No.113/239 dated 11.03.2020.

राजभाषा
स्वतंतर्ता के बाद संिवधान सभा ने 14 िसतम्बर 1949 को स्वतंतर् भारत की राजभाषा के रूप
म िहन्दी को सवर्सम्मित से स्वीकार िकया। अतः पर्त्येक वषर् 14 िसतम्बर को ‘‘िहन्दी िदवस’’
मनाया जाता है।
After independence, on 14th September 1949 it was unanimously
resolved in the constituent assembly that Hindi will be the Official
Language of independent India. Hence, 14th September is
celebrated as “Hindi Day” every year.
संघ की राजभाषा नीित
राजभाषा के संबंध म कदर् सरकार की यह नीित है िक सरकारी काय म िहंदी का पर्योग

पर्ेरणा, पर्ोत्साहन एवं स ावपूवर्क सुिनि त िकया जाय। हमारे संिवधान, राजभाषा
अिधिनयम, 1963 तथा राजभाषा िनयम, 1976 म राजभाषा िहंदी के पर्योग के संबंध म
िविभ पर्ावधान विणर्त ह।
The policy of the Union Government is to ensure the use of Hindi in
the official works through motivation, encouragement and incentive.
Various provisions related to Official Language Hindi are as given
below:
हमारे संिवधान के 17व अध्याय म राजभाषा से संबंिधत पर्ावधान िदए गये ह जो इस पर्कार
ह–
The 17th chapter of our Constitution contains provisions of Official
Language as under -
 अनुच्छेद 343(1) के अनुसार संघ की राजभाषा िहंदी है। इसकी िलिप देवनागरी है।
संघ के शासकीय पर्योजन के िलए भारतीय अंक का अंतररा ीय रूप (1, 2, 3, 4,
5, 6 ....) पर्युक्त िकया जाता है।
According to Article 343(1) Official language of the Union is Hindi in
Devanagari script. For the purpose of Official work, International form
of Indian Numerals (1, 2, 3, 4, 5, 6 ....) are used.
 अनुच्छेद 343(2) म यह वस्था की गई है िक संिवधान लागू होने के बाद पंदर्ह वषर्

तक अथार्त् 26 जनवरी 1965 तक अंगर्ेजी का पर्योग पहले की तरह जारी रहेगा। साथ
ही यह भी उपबंध िकया गया िक 1965 के पहले भी रा पित आदेश ारा िकसी काम

के िलए अंगर्ेजी के साथ-साथ िहन्दी के पर्योग की अनुमित दे सकते ह। 26 जनवरी
1965 से देश का कामकाज िहन्दी भाषा म िकया जाना पर्स्तािवत था।
In Article 343(2) provision was made for the continuation of
English for a further period of 15 years i.e upto 26 January 1965.
Further, it was also provided that the President of India, by
order, can make a provision for the use of Hindi along with
English even before 1965. The use of Hindi in Official work was
proposed to begin from 26th January 1965.
 अनुच्छेद 343(3) म संसद को यह अिधकार िदया गया िक वह अिधिनयम पािरत कर

1965 के बाद भी सरकारी कामकाज म िहन्दी के साथ-साथ अंगर्ेजी भाषा को जारी
रखने की वस्था कर सकती है।
Article 343(3) empowers Parliament that even after 1965 it
can make provision for the use of English Language in Official
works along with Hindi by passing an Act to this effect.
 अनुच्छेद 344 के अनुसार संिवधान लागू होने के 05 वषर् बाद “राजभाषा आयोग” एवं
राजभाषा आयोग की िसफािरश पर िवचार करने के िलए “संसदीय सिमित” बनाने
का पर्ावधान है।
In Article 344, there is a provision of constituting “Official
Language Commission” after 5 years from the commencement
of the Constitution and to constitute a “Parliamentary
Committee” to discuss/ consider the recommendations made by
the Commission.
 अनुच्छेद 345 म राज्य सरकार को अपनी भाषा या िहन्दी को राजभाषा के रूप म

स्वीकार करने की स्वतंतर्ता दी गयी।
In Article 345 the State Governments were given liberty to
choose their language or Hindi as their Official Language.
 अनुच्छेद 346 के अनुसार एक राज्य और दूसरे राज्य के बीच या िकसी राज्य और के न्दर्
सरकार के बीच पतर्ािद राजभाषा अथार्त् िहन्दी या अंगर्ेजी म िकये जायगे।
As per Article 346 communication among States and between
the Central Government and the State Governments will take
place in the Official Language of the Union i.e. in Hindi or
English.
 अनुच्छेद 347 के अनुसार िकसी राज्य की जनसंख्या के िकसी भाग ारा बोली जाने
वाली भाषा को शासकीय मान्यता दी सकती है।

According to Article 347 the language spoken by a part of the
population of a State may be given official recognition.
 अनुच्छेद 348 के अनुसार उच्चतम न्यायालय और पर्त्येक उच्च न्यायालय की

कायर्वािहय तथा के न्दर् और राज्य के सभी अिधिनयम , िवधेयक , अध्यादेश , आदेश ,
िनयम , िविनयम या उपिनयम के पर्ािधकृ त पाठ अंगर्ेजी भाषा म ह गे।
According to Article 348 proceedings of the Supreme Court and
High Court and the authoritative text of Central and State Acts,
Bills, Ordinances, Orders, Rules, Regulations or bye-laws shall
be in English Language.
 अनुच्छेद 350 के अनुसार पर्त्येक व्यिक्त को अपनी िशकायत दूर करने के िलए संघ या
राज्य के िकसी अिधकारी को संघ म या राज्य म पर्युक्त होने वाली िकसी भी भाषा म
आवेदन देने का अिधकार होगा।
According to Article 350 every person shall be have right to
submit a representation for the redressal of any grievance to
any officer or authority of the Union or a State in any of the
languages used in the Union or in the State, as the case may
be.
 अनुच्छेद 351 म बताया गया िक यह संघ का कतर् होगा िक वह िहंदी भाषा का

पर्सार बढ़ाये तथा आवश्यकतानुसार शब्द-भंडार के िलए मुख्यतः संस्कृ त से और
गौणतः अन्य भाषा से शब्द गर्हण करते हुए उसकी समृि सुिनि त करे । यह
अनुच्छेद अत्यंत महत्वपूणर् है क्य िक संिवधान म कु छ ही स्थान पर के न्दर् सरकार को
िनदेश िदया गया है तथा यह उनम से एक है।
Article 351 says that it shall be the duty of the Union to
promote the spread of the Hindi language and to ensure its
development by adopting vocabulary primarily from Sanskrit
and secondarily from other languages. This Article is very
important as there are very a few places in the Constitution
where Union Government has been given direction and this is
one of them.
 8व अनुसच
ू ी – संिवधान की आठव अनुसूची म 22 भारतीय भाषा को मान्यता
दी गयी है जो इस पर्कार ह - िहन्दी, असिमया, बंगला, गुजराती, क ड़, कश्मीरी,
मलयालम, मराठी, ओिडया, पंजाबी, संस्कृ त, तिमल, तेलुगू, उदू,र् िसंधी, क कणी,
मिणपुरी, नेपाली, मैिथली, डोगरी, बोडो तथा संथाली।

In 8th Schedule of the Constitution, 22 Indian Languages have
been recognized namely Hindi, Assamese, Bengali, Gujarati,
Kannada, Kashmiri, Malayalam, Marathi, Odia, Panjabi,
Sanskrit, Tamil, Telgu, Urdu, Sindhi, Konkani, Manipuri, Nepali,
Maithili, Dogari, Bodo and Santhali.
राजभाषा अिधिनयम 1963 के मुख्य पर्ावधान इस पर्कार ह –
 इस अिधिनयम की धारा 3(3) के अंतगर्त िनम्निलिखत 14 पर्कार के दस्तावेज को

िहन्दी तथा अंगर्ेजी भाषा म जारी करना अिनवायर् है –
Under Section 3(3) of this Act, 14 types of documents have to
be compulsorily issued in Hindi and English. These documents
are -
• संकल्प, साधारण आदेश, िनयम, अिधसूचना, पर्शासिनक या अन्य पर्ितवेदन

या पर्ेस िवज्ञि ;
Resolution, General Order, Rules, Notifications,
Administrative and other reports or Press Communiqué;
• संसद के िकसी सदन या सदन के समक्ष रखे गए पर्शासिनक तथा अन्य

पर्ितवेदन और राजकीय कागज-पतर्;
Administrative and other reports and official papers laid
before a house or House of Parliament.
• संिवदा, करार, अनुज्ञि , अनुज्ञापतर्, सूचना और िनिवदा-पर्ारूप।

Contracts, Agreements, Licenses, Permits, Notices and
form of Tender.
 इस अिधिनयम की धारा 4 के अनुसार संसदीय राजभाषा सिमित के गठन का पर्ावधान

है। यह सिमित के न्दर् सरकार के सभी कायार्लय , उपकर्म , िनगम आिद का िनरीक्षण
करती है। भारत सरकार के गृह-मंतर्ी पदेन इस सिमित के अध्यक्ष होते ह। इस सिमित
की तीसरी उप सिमित बक का िनरीक्षण करती है। इसके अलावा आलेख एवं सा य
उप सिमित भी के न्दर् सरकार के कायार्लय एवं बक का िनरीक्षण करती है। यह
नराकास के सदस्य के साथ िवचार-िवमशर् करती है।
Section 4 of this Act provides for the constitution of
Parliamentary Official Language Committee. This Committee
inspects the offices, Undertakings, Corporations and Banks
which are under Central Government. The Home Minister, Govt.
of India is the ex-officio Chairman of this Committee. The 3rd
sub-committee of this committee inspects Banks. In addition to

this Documents and Evidence Sub-Committee is also involved in
inspection of Central Govt. Offices and Banks. This sub-
committee has discussions with the members of TOLIC.
 इस अिधिनयम की धारा 7 के अनुसार उच्च न्यायालय अपने राज्य की भाषा म िनणर्य

आिद दे सकते ह परन्तु इसके िलए राष्टर्पित से पूवर् अनुमित लेनी होगी तथा िनणर्य
आिद का अंगर्ेजी अनुवाद भी जारी करना होगा।
According to Section 7 of this Act, the High Courts can give
decision etc. in the language of their State but with the prior
permission of the President of India. Translation in English of
such decisions etc. should also be issued.
राजभाषा िनयम, 1976
 िनयम 1 के अनुसार यह िनयम तिमलनाडु राज्य को छोड़कर पूरे देश म लागू है।
Rule 1 states that these rules are applicable to whole of India
except Tamil Nadu.
 िनयम 2 के अनुसार संपूणर् भारत का भाषावार वग करण तीन क्षेतर् म िकया गया –
Rule 2 classifies whole of India into three linguistic regions
which are as under:
• “क्षेतर् क” म िबहार, छ ीसगढ, हिरयाणा, िहमाचल पर्देश, झारखंड, मध्यपर्देश,

राजस्थान, उ र पर्देश, उ राखंड, िदल्ली तथा अंडमान और िनकोबार ीप
क्षेतर् ह।
Region A includes Bihar, Chhattisgarh, Haryana,
Himachal Pradesh, Jharkhand, Madhya Pradesh,
Rajasthan, Uttar Pradesh, Uttarakhand, Delhi and
Andaman & Nicobar.
• “क्षेतर् ख” म गुजरात, महारा , पंजाब, चंडीगढ़, दमण और दीव तथा दादरा

और नगर हवेली क्षेतर् ह।
Region B includes Gujarat, Maharashtra, Punjab,
Chandigarh, Daman & Diu and Dadar & Nagar Haveli.
• “क्षेतर् ग” म उपयुर्क्त को छोड़कर अन्य बचे सभी राज्य एवं संघ राज्य क्षेतर् ह।
Region C includes States and Union Territories not
covered under Region A and Region B.
 िनयम 3 के अनुसार “क” तथा “ख” क्षेतर् म राज्य सरकार तथा के न्दर् सरकार के मध्य
पतर्ाचार िहन्दी म होगा तथा यिद अंगर्ेजी म पतर्ाचार होता है तो उसके साथ पतर् का

िहन्दी अनुवाद भी पर्ेिषत िकया जायेगा। “ग” क्षेतर् की राज्य सरकार तथा जनता के
साथ के न्दर् सरकार के कायार्लय का पतर्ाचार अंगर्ेजी म होगा।
As per Rule 3, communication between State Government and
Union Government in Region “A” and Region “B” shall be in Hindi
Language. If communication takes place in English language
then such a communication shall be accompanied by a Hindi
translation. Communication emanating from Central
Government Offices to State Government and public in Region
“C” shall be in English Language.
 िनयम 4 के अनुसार “ग” क्षेतर् म भी के न्दर् सरकार के कायार्लय के बीच िहन्दी तथा
अंगर्ेजी म पतर्ाचार हो सकता है।
As per Rule 4 even in Region “C” communication between
Central Government Offices could be in Hindi and English.
 िनयम 5 के अनुसार िहन्दी म पर्ाप्त पतर् का उत्तर िहन्दी म ही देना है।

Rule 5 states that letter received in Hindi must be replied in
Hindi.
 िनयम 6 के अनुसार राजभाषा अिधिनयम 1963 की धारा 3(3) म िनिदर् 14 पर्कार

के दस्तावेज पर हस्ताक्षर करने वाले अिधकारी का यह उ रदाियत्व होगा िक वह
यह सुिनि त करे िक ऐसे दस्तावेज िहन्दी और अंगर्ेजी दोन भाषा म तैयार िकये
जाय, िनष्पािदत िकये जाय और जारी िकये जाय।
According to Rule 6 it is the responsibility of the person signing
the 14 types of documents mentioned in Official Language Act,
1963 to ensure that such documents are prepared, executed
and issued in both Hindi and English.
 िनयम 7 के अनुसार िहन्दी म हस्ताक्षिरत िकसी अिधकारी या कमर्चारी के पतर् का

उत्तर भी िहन्दी म ही िदया जाना है।
As per Rule 7 letters signed by an officer or an employee in
Hindi must be replied in Hindi.
 िनयम 8 के अनुसार िहन्दी म कायर्साधक ज्ञान पर्ाप्त कमर्चारी िकसी िहन्दी दस्तावेज
का अंगर्ेजी अनुवाद नह मांग सकता परन्तु यिद उक्त दस्तावेज तकनीकी या िविधक
पर्कृ ित का है तो अंगर्ेजी अनुवाद मांगा जा सकता है।
As per Rule 8 no employee possessing working knowledge of
Hindi can ask for English translation of any document in Hindi
except in such cases where the said documents are of legal or
technical nature.

 िनयम 9 म िहन्दी म पर्वीणता पर्ाप्त कमर्चारी की पिरभाषा दी गयी है। इसके अनुसार
पर्वीणता पर्ाप्त कमर्चारी वह है िजसने –
Rule 9 gives the definition of employee who is proficient in
Hindi. According to this rule an employee is Proficient in Hindi if
–
i) दसव की परीक्षा िहन्दी माध्यम से उत्तीणर् की हो,

He has passed matriculation examination with Hindi as the
medium of instruction.
ii) ातक परीक्षा म अथवा उसके समतुल्य या उससे उच्चतर िकसी अन्य परीक्षा
म िहन्दी को एक वैकिल्पक िवषय के रूप म पढ़ा हो, अथवा
He has taken Hindi as optional subject at degree level or
any equivalent or higher level.
iii) घोषणा-पतर् पर्स्तुत करता हो िक उसे िहन्दी म पर्वीणता पर्ा है।

He declares himself to possess proficiency in Hindi.
 िनयम 10 म िहन्दी म कायर्साधक ज्ञान पर्ाप्त कमर्चारी की पिरभाषा दी गयी है। इसके
अनुसार कायर्साधक कमर्चारी वह है िजसने –
Rule 10 gives the definition of employee who possess working
knowledge of Hindi. According to this Rule an employee has
working knowledge of Hindi if –
i) दसव या उसके समतुल्य या उससे उच्चतर परीक्षा िहन्दी िवषय के साथ

उत्तीणर् की हो,
Passed matriculation or equivalent or higher examination
with Hindi as a subject.
ii) िहन्दी िशक्षण योजना के अंतगर्त पर्ाज्ञ परीक्षा उत्तीणर् की हो,
Passed Pragya examination under Hindi Teaching Scheme
of the Govt. of India.
iii) के न्दर् सरकार ारा उस िनिमत्त िविनिदर्ष्ट कोई अन्य परीक्षा उत्तीणर् कर ली
हो, अथवा
Passed any other exam specified for that purpose by the
Central Government.
iv) वह घोषणा-पतर् पर्स्तुत करता हो िक उसे िहन्दी का कायर्साधक ज्ञान है।
He declares that he possess working knowledge of Hindi.

 िनयम 11 के अनुसार मैनुअल, संिहताएं, अन्य पर्िकर्या सािहत्य, फामर् तथा रिजस्टर
के शीषर्, नामप , सूचनाप , पतर्-शीषर् और िलफाफ पर उत्कीणर् लेख तथा स्टेशनरी
की अन्य मद िहन्दी और अंगर्ेजी म अथार्त् ि भाषी होनी ह।
According to Rule 11 all manuals, codes, other procedural
literature, forms and headings of registers, name-plates, sign-
boards, letter-heads, inscription on envelops and other items of
stationary shall be in Hindi and English.
 िनयम 12 के अनुसार िकसी कायार्लय के पर्शासिनक पर्धान का यह उत्तरदाियत्व है
िक वह यह सुिनि त करे िक राजभाषा अिधिनयम तथा िनयम का अनुपालन िकया
जाता है। इस िनयम के अनुपालन हेतु उपयुक्त एवं पर्भावकारी उपाय करने की
िजम्मेदारी भी कायार्लय के पर्शासिनक पर्धान की है।
According to Rule 12 it is the responsibility of the
Administrative Head of the Office to ensure that provisions of
Official Language Act and Rules are complied with. It is also his
responsibility to devise suitable and effective check points for
the purpose.
````````````````


Vijeta - 2020
IT Enabled Services & Alternate Delivery Channels
H ow are Indian Banks Moving Towards a Digital Revolution?
The Indian banking industry has become an example for the pace at which it is
growing over the past decade or so.
The requirement to introduce computers was felt in the Indian banking sector in
the 1980s, in order to provide better services to the customers and improve
bookkeeping. A committee was then set up by Reserve Bank of India.
How It All Started?

Banks started using Information Technology by using Personal Computers which
was new at that time.
Later on, banks switched to Local Area Network (LAN) wherein a group of
computers shares a common communication line. Later on, banks adopted the
Core Banking platform which supports bank’s day to day transactions like opening
new accounts, making and servicing loans, processing cash deposits and
withdrawals etc.
Thus, branch banking changed to bank banking. All these features helped banks
to increase the comfort feature us customers and gave us better customer
experience through the feature of Anywhere and Anytime Banking.
This feature allowed customers like us to do banking transactions 27x7 and

through all the branches of that bank in India.
The economy opened up in the latter half of the nineties. Private and foreign banks
started competing with the public sector banks in India.

Computerization increased during this era as banks started using more and more
computers to compete with one another and stay in the race. Many commercial
banks started giving digital customer services to stay competitive in the race.
Progress Over The Years:

Banks, as well as customers like us, have benefitted a lot by using the newer
technologies adopted by banks which made the entire experience user-friendly.
E-banking has resulted in reducing cost for the banks and at the same time, it
increases their user base which ultimately helped them generate more revenue
through various channels.
Digitization has decreased human error. It is now possible to access and analyze
the data anytime.
The Central Bank has overseen all these new developments taking place in banks.
Commercial Banks in our country have moved towards a technology by way of
Bank Mechanization and Automation with the introduction to MICR, Electronic
Funds Transfer.
MICR based cheque processing helps banks use the technique to verify the validity
and enhance the security of signed checks. Electronic Fund transfer help
customers like us in transferring money from one account to another without the
need to visit the bank branch.
Inter-connectivity among bank branches through the use of a common software

has helped in faster decision making and access to data.
Implementation of ATM Channel has facilitated us to do transaction anywhere in

the country without visiting the branch.
Strong initiatives have been taken by the Central Bank of our country in
strengthening the payment and settlement system in banks.
Present Scenario:
The Indian government is increasingly supporting digital transactions.
United Payments Interface (UPI) and Bharat Interface for Money (BHIM) launched
by the government was an important milestone not just for the banking system
but the entire country. Innovation and popularity of digital payments are resulting
in greater digital banking transactions.
UPI is a payment method which allows the transfer of money anytime without the
need to enter bank details every time we transact. UPI and BHIM are economical
ways of money transfer, making us free of cash.
As we are moving towards a cashless economy, we see a rising number of ATMs

in our country. Implementation of electronic payment system such as NEFT, ECS,
RTGS, Mobile banking, Debit cards, Credit Cards has become very common with
every Indian bank.

Indian banks are coming up with innovative variants of these products and show
the newest features added to these products to attract more customers.
All this has not just benefitted the banks by generating more revenue but has also
made our lives better by making banking very easy for us.
Challenges in the Banking Industry
Responsibility of User:
Bank digital transactions can go wrong due to many reasons, some of which might
not be the fault of customers like us. The hacking of debit cards and bank accounts
takes place very frequently.
With the increased use of digital payments, we need to be protected from

unauthorized banking transactions.
Today, the responsibility is on us and not the banks when banks are really in
control of the payment system and are charging us for digital transactions.
Poor Laws:
The laws on digital payments are vague. There is an urgent need to legally back
digital payments in our country, not only to ensure the safety of customer’s money
but also for the safety of these companies themselves.
Increasing the Customer Base: Increasing internet penetration is the only

possible solution to reduce the digital divide and increase digital transactions in
our country.
The increase of digital transactions in rural India would help boost not just the
banking system but the entire economy. Awareness among people needs to be
increased.
Awareness and Education: Customers who stay in rural India need to be made
aware of the advantages of digital banking. There is still a belief in most parts of
our country that online banking is not a safe mode of banking. If people are
educated about digital banking then their reliance on conventional banking will
gradually come down.
Benefits of Digitalization:
Since methods of banking have become more digitalized, banks are focusing on
creating a more efficient service for us, producing more methods of advancements
in a more user-friendly front-end service.
Through this mode of banking, paying bills online is done much faster and better
since all our information is tracked through our banking applications.
Digital banking also helps us to check our account history and transactions
anywhere which ultimately satisfies customers like us since we are keeping a track
of our daily transactions.
Role of Artificial Intelligence and Data Analytics:

Artificial Intelligence is continuously contributing to the banking industry to deliver
a greater level of value to us, decreases risks, and gives better opportunities as
the financial engines of our modern economy.

It is helping in coming up with innovations and transforming the way clients are
serviced. Artificial Intelligence is working on giving personalized support, better
customer experience, and cost saving.
Better performance, higher profitability, and reduction in risk are the main goals
which banking and financial sectors are trying to achieve.
In this data-driven world, performance is dependent on those big data

technologies which can store and manage data in real time.
Banks also have to mandatorily lend loans at a lower interest rate to priority
sectors like agriculture, housing, education. Data Analytics has played an essential
role in reducing cost, product development and increasing client base for the
banks.
Conclusion
Indian Banks are slowly and steadily moving towards the digital revolution. In
order to compete with other commercial banks, they are introducing innovative
features in their offering and are trying to make the overall customer experience
much simpler and more flexible.
(Credit - https://groww.in)
RBI Vision
Payment and Settlement Systems in India: Vision – 2019-2021
PAYMENT AND SETTLEMENT SYSTEMS IN INDIA: VISION – 2019-2021
Empowering Exceptional (E)payment Experience
1. FOREWORD
1.1 Payment and settlement systems are the backbone of any economy. The last
decade has witnessed substantial developments in this area of activity across the
country. The Reserve Bank of India (RBI), under powers from the Payment and
Settlement Systems Act, 2007, has endeavored to ensure that India has ‘state-
of-the-art’ payment and settlement systems that are not just safe and secure,
but are also efficient, fast and affordable. Efforts in this direction has yielded
handsome results. The planned development of the payment systems has been
guided by RBI’s vision document for the payment and settlement systems in India
which is being put out in the public domain since the year 2002; the last in this
series was the Payment Systems Vision 2018. The current Vision document
outlines the road map for the three-year period spanning from 2019 to 2021.
1.2 Some of the positive outcomes of the developments during the period 2015-
2018 include ushering introduction of new and innovative systems, distinctive
shift from paper to electronic payment modes, sizeable increase in transaction
turnover, customer centric initiatives, international recognition, etc. Growth in
electronic payments has been substantial with retail payments reflecting large
growth in volume terms, while the Systemically Important Financial Market
Infrastructures (SIFMIs), such as the Real Time Gross Settlement (RTGS) system

and Financial Markets Clearing through Clearing Corporation of India Ltd. (CCIL),
dominate in value terms.
1.3 New challenges have arisen requiring new strategies and planned efforts to
address them. While building on the constructs and achievements of the previous
Vision, the Payment Systems Vision 2021 recognizes the need for continued
emphasis on innovation, cyber security, financial inclusion, customer protection
and competition.
2. REVIEW OF ACHIEVEMENTS OF THE VISION – 2018
2.1 The Payment Systems Vision 2018 of the Reserve Bank envisaged building of
‘best-in-class’ payment and settlement systems for a ‘less-cash’ India through
the four strategic pillars of responsive regulation, robust infrastructure, effective
supervision and customer centricity. The Vision 2018 has facilitated (a) continued
decrease in the share of paper-based clearing instruments; (b) consistent growth
in individual segments of retail electronic payment systems such as the National
Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS) and card
transactions; (c) increase in registered customer base for mobile banking; (d)
launch of new products like Unified Payments Interface (UPI) and Bharat QR
(BQR); (e) significant growth in acceptance infrastructure; and (f) accelerated
use of Aadhaar in payment systems.
2.2 An assessment of the achievements during the three years covered by Vision
2018 reveals that the goal posts indicated above have been accomplished; in
respect of the accelerated use of Aadhaar in payment systems, the matter is
under review in light of the judgement of the Honorable Supreme Court regarding
storage of Aadhaar data.
2.3 Quantitatively measured, digital payment transaction turnover vis-à-vis GDP

(at market prices-current price) increased from 7.14 in 2016 to 7.85 in 2017 and
further to 8.42 in 2018., The turnover in payment transactions (after including
CCIL figures and paper) vis-à-vis GDP (at market prices-current price) increased
from 14.41 in FY 2015-16 to and 14.73 in FY 2016-17 and further to 15 in 2017-
18.
2.4 Debit card usage at Point of Sale (PoS) vis-à-vis ATM is 30.1% of total in
terms of volume (10.4% in 2014-15).
3. PAYMENT SYSTEMS VISION – 2021
CORE THEME – EMPOWERING EXCEPTIONAL (E)PAYMENT EXPERIENCE
Vision Statement – Empower every Indian with access to a bouquet of e-

payment options that is safe, secure, convenient, quick and affordable.
3.1 The Vision 2021 for payment and settlement systems in India enhances the
strong foundation built over the last two decades. While the pursuit towards a
‘less cash’ society continues, accompanied by the ambition to have a less-card
India as well, the endeavor is to also ensure increased efficiency, uninterrupted
availability of safe, secure, accessible and affordable payment systems as also to

serve segments of the population which are hitherto untouched by the payment
systems. The decade to follow will witness a revolutionary shift in the way Indian
citizens use digital payment options and will also empower them with an e-
payment experience that will be exceptionally safe, secure and truly world class.
3.2 Vision 2021 concentrates on a two-pronged approach of, (a) exceptional

customer experience; and (b) enabling an eco-system which will result in this
customer experience. With this in view, the Vision aims towards,
 enhancing the experience of Customers;

 empowering payment System Operators and Service Providers;
 enabling the Eco-system and Infrastructure;
 putting in place a Forward-looking Regulation;
 supported by a Risk-focussed Supervision.
3.3 To achieve the above, the Vision envisages four goal-posts (4 Cs) –
Competition, Cost, Convenience and Confidence. For enhancement of
Competition in the payment systems landscape, specific thrust areas like creating
regulatory sandbox, authorising new players, etc., have been incorporated; this
along with the presence of multiple players in the market is expected to achieve
optimal Cost for the customers; freer access with availability of multiple payment
system options anytime-anywhere should cater to the requirement of
Convenience; the ‘no-compromise’ approach towards safety of payment systems
should address security vulnerabilities to retain customer Confidence.
3.4 It is recognised that cash entails a significant cost to the whole economic
system, including consumers. Migration to digital modes of making a payment
can obviate some of these costs and can give customers a friction-free and
enjoyable experience. Giving them multiple options is expected to make this
experience exceptional, apart from furthering growth measurable in terms of
digital payments turnover to GDP.
3.5 The savings achieved at all levels on account of digitization of payments need
to be considered in pricing of these services to the end customers. Payment
System Operators (PSOs) need to consider cost of accessing and managing
transactions and accordingly price their services. The aim is towards progressive
reduction in ‘per-transaction' cost to customers keeping in view the marginal cost
advantage with increase in the number of transactions. The need to move
towards marginal cost of pricing based on volume of transactions handled needs
no over-emphasis.
4. EXPECTED OUTCOMES OF VISION 2021

4.1 The Payment Systems Vision 2021 covers the period up to December 2021.
4.2 Vision 2021 focuses on further enhancements / improvements in all facets of
payment systems.
4.3 With concerted efforts and involvement of all stake holders, the four goal-
posts of Vision 2021 with 36 specific action points over the 36-month timeframe
will have the following 12 specific outcomes:
(i) Further decrease in the share of paper-based clearing as a percentage of retail
payments, particularly in terms of number of paper instruments processed. Given

the current trend in cheque usage and the thrust to shift to digitized transactions
it is expected that the volume of cheque-based payments would be less than
2.0% of the retail electronic transactions by 2021.
(ii) Accelerated growth in individual retail electronic payment systems, both in

terms of number of transactions and increased availability. Payment systems like
UPI / IMPS are likely to register average annualized growth of over 100% and
NEFT at 40% over the vision period. The number of digital transactions is
expected to increase more than four times from 2069 crore in December 2018 to
8707 crores in December 2021.
(iii) Measurably, the digital payment transaction turnover vis-à-vis GDP (at
market prices-current price) is expected to further increase to 10.37 in 2019,
12.29 in 2020 and 14.80 in 2021. Payment transaction turnover, including CCIL
transactions and paper, is expected to be 22.30 times the GDP (at market prices-
current price) by December 2021.
(iv) Increase in use of digital modes of payment for purchase of goods and
services through increase in debit card transactions at PoS (35% increase during
the vision period) and continued growth in PPI transactions.
(v) Usage of debit cards at PoS transactions is expected to be at least 44% of

total debit card transactions (at PoS + ATM). In value terms it is 15.2 per cent in
2018-19 (5.2 per cent in 2014-15) which is expected to be 22% by end 2021.
(vi) Increased deployment of card acceptance infrastructure across the country

including at smaller centres with a substantial portion of the infrastructure taking
care of processing contactless card payments. Given the current growth trend it
is expected to have 5 mn active PoS by end 2021; digital PoS (QR code) is also
expected to increase substantially; and the total card acceptance infrastructure
will be up scaled to six times present levels by end 2021. This is expected to
support aim of cash-lite economy and also shift Cash on Delivery (CoD)
transactions to digital modes for e-commerce.
(vii) While no specific target is considered for cash in circulation, the enhanced
availability of PoS infrastructure is expected to reduce demand for cash and thus
over time achieve reduction in Cash in Circulation (CIC) as a percentage of GDP.
(viii) Further facilitation of mobile based payment transactions as gauged on basis
of the registered customer base (expected increase of 50% considering the base
effect).
(ix) Enhanced usage of electronic payment systems is expected to reduce the

marginal cost given the additional volume. The pricing of such services to
customers should, over the vision period, show reduction of at least a 100 bps
from current levels. Plus, a shift from ad valorem rates to per transaction rates
is envisaged, as usage of a system is irrespective of the value of a transaction.
(x) Security of systems and customer centricity as reflected by –
a. Decrease in Technical Declines reported across various payment systems

by 10% year-on-year.

b. Reduction in Business Declines reported across various payment systems
by 5% year-on-year. This will be achieved through targeted hand-holding
of merchants and customers with customised campaigns by partnering
with system operators and system participants.
c. Improvement in Turn Around Time (TAT) for resolution of customer
complaints by PSOs.
(xi) FTS [Fraud to Sales (Fraud value / Sales value) x 10000] count for payment
systems is expected to be less than 10 bps for most of the payment systems.
(xii) Enhanced healthy competition in the payments space and establishment of

new PSOs during the Vision period is envisaged.
4.4 The focus of the Reserve Bank through Vision 2021 is outlined in the
subsequent sections. For better understanding and clarity of role, responsibilities
and expectations, the identifiable stakeholders for achievement of the various
objectives, are delineated in this document. The action points emphasizing the
four specific goal-posts are summarized in this table –
Goals-posts for Payment System Vision 2021
COMPETITION COST CONVENIENCE CONFIDENCE
1. Self-Regulatory 1. Accessible, 1. Harmonizing TAT for 1. Increased coverage of
Organisation for all affordable and resolution of customer the Cheque Truncation
PSOs (para 5.2.1) inclusive services complaints (para System (para 5.3.6)
(para 5.1.1) 5.1.2)
2. Encourage and 2. Review of 2. Setting up a 24x7 2. Increased scope and

facilitate innovation in corridors and charges helpline (para 5.1.3) coverage of the Trade
an environment of for inbound cross Receivables Discounting
collaborative border remittances System (TReDS) (para
competition (para (para 5.1.7) 5.3.7)
5.2.2)
3. Feature phone- 3. Inter-operability 3. Enhancing 3. Geo-tagging of

based payment and building awareness (para 5.1.4) payment system touch
services (para 5.2.3) capability to process points (para 5.3.8)
transactions of one
system in another
system (para 5.3.4)
4. Off-line payment 4. Acceptance 4. Conducting 4. Contact-less payments

solutions (para 5.2.4) infrastructure to customer awareness and tokenization (para
address supply-side surveys (para 5.1.5) 5.4.3)
issues (para 5.3.5)
5. USSD-based 5. System capacity 5. Enhanced security of

payment services (para and scalability (para 5. Internal ombudsman mobile-based payments
5.2.5) 5.4.2) for digital payments (para 5.4.8)
(para 5.1.6)
6. Global outreach of 6. Increasing LEI 6. National settlement 6. Oversight for
payment systems usage for large value services for card maintaining integrity of
(para 5.3.2) cross border schemes (para 5.2.6) payment systems (para
payments (para 5.5.1)
5.4.5)
7. Fostering innovation 7. Regulation of 7. Enhanced 7. Third party risk
in a responsible payment gateway availability of retail management and system
environment through service providers and payment systems and wide security (para 5.5.2)
regulatory sandbox payment aggregators a wide bouquet of
(para 5.4.9)

(para 5.4.1) offerings (para 5.3.1)
8. Framework for
8. Review of 8. Widen scope / use of collection of data on
membership to domestic cards (para frauds in payment
centralised payment 5.3.3) systems (para 5.5.3)
systems (para 5.4.4)
9. Framework for testing
9. Inter-regulatory and 9. Explore adoption of resilience of payment
intra-regulatory co- newer technologies systems (para 5.5.4)
ordination (para including DLT for
5.4.10) enhancement of digital
payment services (para
5.4.6)
10. E-mandates /
10. Benchmarking Standing Instructions
India’s Payment for payment
Systems (para 5.5.5) transactions (para
5.4.7)
5. SPECIFIC INITIATIVES
5.1 CUSTOMERS
5.1.1 AFFORDABLE, ACCESSIBLE AND INCLUSIVE SERVICES

The Indian payment ecosystem and its constituents are likely to respond well
when processes are affordable, and accessibility is simple and wide spread. While
the approach of the Reserve Bank will continue to be of minimal intervention in
the pricing of charges to customers for digital payments, all efforts will be made
towards facilitating the operation of payment systems which are efficient and
price-attractive. To this end, service providers should set up pricing structures
that are transparent, affordable and do not restrict public from accessing payment
system services. The basis shall have to be that pricing is reasonable to
encourage usage and also pass-on to the customer the benefit of cost saved on
managing cash in the system. The Reserve Bank will require service providers to
bring about transparency in pricing. Reserve Bank would consider a review of its
instructions on customer charge for its Payment Systems and shift from
transaction value-based pricing slabs to a fixed minimum transaction-based
pricing. The approach to pricing should be towards recovery of marginal costs
and to migrate to a low margin-high volume regime.
(Action – RBI, NPCI and PSOs)
5.1.2 HARMONISING TURN AROUND TIME FOR RESOLUTION OF

CUSTOMER COMPLAINTS, INCLUDING FOR CARD TRANSACTIONS
There is need for harmonizing the TAT of customer complaints and requisite
chargebacks. Such time lines should be reasonable and also in alignment with
the instructions issued in respect of customer liability for unauthorized electronic
payment transactions. The Reserve Bank will be addressing the various facets in
this regard, with the objective of optimal time lines expected to result in customer
delight and certainty of conclusion. Recourse to technology-driven dispute
redressal mechanisms that are rule-based, transparent, customer-friendly and
involve minimum (or no) manual intervention will be advocated / encouraged /
appreciated.

5.1.3 SETTING UP A 24X7 HELPLINE
Customer experience can be enhanced with a general centralized helpline for
addressing customer queries in respect of various digital payment products,
security aspects, recourse mechanism, etc. This will not only build trust and
confidence but also reduce expenditure (both financial and human resources)
otherwise incurred on addressing complaints and grievances. The payment
service industry level Self-Regulatory Organisation (SRO) proposed in this Vision
can facilitate the setting up of an industry wide 24x7 helpline and the large-scale
use of technology for customer assistance and complaint redressal.
5.1.4 CREATING AWARENESS

To give thrust to the regulatory interventions on customer awareness, an industry
level initiative needs to be taken for building awareness through generic
advertisements and systematically planned customer orientation programmes.
Equally important is to create customer awareness for basic cyber-security
hygiene. Bankers and operators of the payments systems would have to ensure
awareness at their end for strictly following defined secure operational processes.
Creation of a Universal Icon / Symbol Set for basic use cases / operations in the
area of retail electronic payments will also be explored during the period of this
Vision document. Ensuring involvement of and co-operation from all stakeholders
can help in achieving a very secure and convenient payment environment, with
attendant reduction of Business Declines, and maybe, Technical Declines as well.
5.1.5 CONDUCTING CUSTOMER AWARENESS SURVEYS

Customer surveys to gauge awareness and usage of various payment services,
including digital payment systems amongst various stake holders and individuals
would be undertaken by the Reserve Bank. The findings of such surveys will be
an important component for policy formulation. Repeated surveys in a location
will help assess efficacy impact of various targeted interventions.
(Action – RBI)
5.1.6 INTERNAL OMBUDSMAN BY PAYMENT SYSTEM OPERATORS(PSOS)

The terms and conditions for authorisation of various payment systems by the
Reserve Bank require them to put in place a grievance redressal mechanism. The
Reserve Bank has also put in place an ombudsman scheme for digital
transactions. While PSOs have set up their own mechanism for addressing
customer complaints, there is a need to formalise an internal ombudsman in the
PSOs so that there is an avenue for swift and cost-effective complaint redressal
mechanism within the organisation.
5.1.7. REVIEW OF CORRIDORS AND CHARGES FOR INBOUND CROSS

BORDER REMITTANCES
Remittances play a crucial role for developing economies and have significant
welfare implications. While the quantum of remittances depends on a number of
factors, the cost of remitting funds is increasingly becoming a key element
influencing the size of remittances. High cost of remittance made through formal
channels may drive customers to informal channels which are less secure and

prone to misuse. The G20 has prioritised the issue of cost of remittances in its
agenda and is encouraging appropriate policies at the country level. India has
already taken several measures to liberalise remittance schemes to drive
competition and thereby reduce costs. Some of the initiatives include facilitating
the appointment of more intermediaries / money transfer agents, introducing
more official channels to route cross-border remittances, receipt of foreign inward
remittances directly into the bank accounts of beneficiaries under the Money
Transfer Service Scheme (MTSS), etc.
In order to infuse fair competition in this sphere and bring in transparency in

costs, RBI will examine the role that payment services providers (PSPs) can play
to ensure friction free remittances at lower cost.
(Action – RBI)
5.2 SYSTEM OPERATORS & SERVICE PROVIDERS
5.2.1 SELF-REGULATORY ORGANISATION (SRO)

Industry self-governance is an important feature in modern economies which is
also useful for industry wide smooth operations and development. With time,
bodies representing interests of certain segments of PSOs have evolved and have
been engaging with the regulator. There is a need for self-regulatory governance
framework to foster best practices on important aspects like security, customer
protection, pricing, etc. Such an organisation can be constituted to cover the
entire gamut of digital PSOs, including retail products of National Payments
Corporation of India (NPCI). The SRO will serve as a two-way communication
channel between the players and the regulator / supervisor. The SRO will of
course work towards establishing minimum benchmarks, standards and help
discipline rogue behaviour.
5.2.2 CREATING AN ENVIRONMENT TO ENCOURAGE AND FACILITATE

INNOVATION THROUGH COLLABORATIVE COMPETITION
As announced in the second bi-monthly monetary policy statement 2018-19, that
the Reserve Bank would be publishing a consultation paper on the policy to
encourage more players to participate in and promote pan-India payment
platforms, to give a fillip to innovation and competition. The framework finalised
after such consultations and discussions would be implemented. To encourage
competition in existing payment systems, a review would be undertaken to
consider authorisation of new players including one / few pan-India Umbrella
Organisation/s. A framework, transparently delineating minimum entry
requirements for any PSO, would also be made public. Need for existing
authorised PSOs to essentially have physical presence in India for operating
payment systems would also be explored. Increased use of technology in all
spheres of the payment system ecospace will be actively encouraged and
appreciated. A review of existing policy would be undertaken to encourage /
facilitate healthy competition and level playing field among banks and non-banks.
(Action – RBI)
5.2.3 FEATURE PHONE-BASED PAYMENT SERVICES

Availability of mobile telephony devices has democratised payments. As on
February 28, 2019, there were 1,184 million wireless telephone subscribers and

532 million wireless broad band subscribers [as per data from Telecom Regulatory
Authority of India (TRAI)]. While various reports indicate more than 350 million
smartphone users in the country, a large user base of feature phones exists.
General innovation in mobile payment services has focused or supported app-
based access limited to smartphones and such devices. There is a need to
innovate payment services for feature phones to provide the necessary thrust
towards enhanced adoption of digital payments by various strata of society which
will be vigorously followed for implementation.
(Action – PSOs)
5.2.4 OFF-LINE PAYMENT SOLUTIONS

Consumer behaviour has been driving growth of digital payment systems as more
and more consumers are embracing mobile technology. Though mobile internet
speed has risen, connectivity issues remain unresolved in large areas. Therefore,
providing an option of off-line payments through mobile devices for furthering
the adoption of digital payments shall be a focus area during this Vision period.
(Action – PSOs)
5.2.5 USSD BASED PAYMENT SERVICES

The available USSD based services require additional push through review of
customer cost and enhanced usage through participation. The payment service
providers may add features to scale up the security of the transactions,
irrespective of the device security level / environment.
(Action – NPCI)
5.2.6 NATIONAL SETTLEMENT SERVICES

Banks are required to have different settlement accounts for settling card
transactions with different card networks. To bring in more efficiency in the
system and making the process more graceful, the Reserve Bank shall examine
the feasibility of having a single national settlement account for all authorised
card networks in consultation with the stakeholders.
(Action – RBI, Card Networks)
5.3. ECO-SYSTEM AND INFRASTRUCTURE
5.3.1 AVAILABILITY OF RETAIL PAYMENT SYSTEMS

Ease of use is often the reason for choosing one platform over the other by the
customers looking for instantaneous transactions with confirmation. Reserve
Bank would examine the need to consider uninterrupted and round-the-clock
availability of various payment systems; gradual enhancement of limits, including
differential day-night, holiday limits for transactions, subject to risk management
and liquidity management; etc. The need for extending availability of NEFT on a
24x7 basis to facilitate beyond the banking hour fund transfer needs would be
examined. Need to add more features to NEFT (faster settlements, staggered
payments) will also be examined. Reserve Bank of India will also examine the
possibility to extend the timings for customer transactions in RTGS based on
industry preparedness and customer demand.
(Action – RBI)

5.3.2 GLOBAL OUTREACH OF PAYMENT SYTEMS
India is home to several innovative digital payment products which are available
to the public at low cost anytime anywhere. Many countries have expressed
interest in partnering in this growth and replicating our products based on their
country specific requirements. Specific interests / requests are being received for
implementing CTS, NEFT, UPI, messaging solutions, etc., by certain jurisdictions.
There is scope for enhancing global outreach of our payment systems, including
remittance services, through active participation and co-operation in international
and regional fora by collaborating and contributing to standard setting. RBI will
continue to actively participate, involve and engage in discussions in international
standard-setting bodies. Leadership role towards regional co-operation in
payment systems is also envisaged.
(Action – RBI and NPCI)
5.3.3 WIDEN SCOPE, USE AND REACH OF DOMESTIC CARDS

Domestic cards have stabilised well and the potential for their large-scale use is
high. Efforts will be made to increase the scope, coverage and usage of domestic
cards, including the RuPay card scheme which was launched in March 2012.
Collaborative effort will be initiated among NPCI, banks and the Government to
widen and deepen the scope / usage of RuPay cards to enhance its brand value
internationally.
(Action – NPCI)
5.3.4 BUILDING CAPABILITY TO PROCESS TRANSACTIONS OF ONE

SYSTEM IN ANOTHER SYSTEM
Interoperability of payment systems will be a watch word during the ensuing
three-year period. Various retail payment systems will be encouraged to have
this feature which provides benefits to all stake holders. The role of
standardisation and the use of universally accepted standards will also be
enhanced. Inter-operability in and among payment system operators / players
will be vigorously pursued.
(Action – RBI and PSOs)
5.3.5 ACCEPTANCE INFRASTRUCTURE – ADDRESS SUPPLY SIDE ISSUES

Acceptance infrastructure, particularly Point of Sale (PoS) terminals / mobile PoS
/ asset-light terminals, as a percentage of the total number of debit / credit cards
is low. There is a need to increase the penetration of acceptance infrastructure in
the country. The infrastructure will be upscaled to at least six times of the present
levels in the next three years’ time.
i. Acquirers: Explore the option of permitting acquiring PoS infrastructure by all

regulated entities, subject to regulatory clearance / no objection certificates.
Increase in acquirers, like Regional Rural Banks and Non-Banking Financial
Companies, to cover a large section of establishments.
(Action – RBI)
ii. Innovation-based new devices: Innovation towards low-cost acceptance
devices will be encouraged with a view towards cost reduction, enhanced safety
and ubiquitousness.
(Action – RBI)

iii. Acceptance Development Fund (ADF): Creation of an ADF to subsidise
acquirers for deploying PoS acceptance infrastructure in tier-3 to tier-6 centers.
This would help in facilitating innovation and reducing cost of such transactions.
(Action – RBI)
iv. Bharat QR (BQR): Enhanced usage of signed and encrypted BQR as proactive
preventive measure for secure payments
(Action – PSOs)
5.3.6 INCREASED COVERAGE OF THE CHEQUE TRUNCATION SYSTEM

(CTS)
Since cheques continue to be an important payment instrument, steps would be
taken to enhance the security and efficiency of the present CTS mechanism,
including bringing in uniformity and harmony in processes across the three
cheque processing grids, apart from steps towards increased coverage and a
single settlement. Coverage will be increased across more locations including
examining improvement in processes / features and discontinuing recourse to
Paper to Follow (P2F) across all State Governments.
(Action – RBI and NPCI)
5.3.7 TRADE RECEIVABLES DISCOUNTING SYSTEM (TREDS)

MSMEs face constraints in obtaining adequate finance given their inability to
readily convert their trade receivables into liquid funds. TReDS was envisaged for
resolving the liquidity crunch faced by MSMEs by facilitating the financing of their
trade receivables from corporate and other buyers, including Government
Departments and Public Sector Undertakings (PSUs), through multiple financiers.
As on date, three TReDS platforms are operational. The ecosystem is at a nascent
stage; thus, over the Vision period, guidelines would be reviewed to provide
maximum traction to the platform for achieving the goals of MSME financing by
enabling re-discounting, considering some participation of non-MSMEs,
expanding financier categories, increasing the number of platforms, on boarding
more buyers, etc.
(Action – RBI)
5.3.8 GEO-TAGGING OF PAYMENT SYSTEM TOUCH POINTS

In order to measure the adoption of digital payments, it is essential to have
geographical location of the payment system touch points [bank branches, ATMs,
PoS terminals, Business Correspondents (BCs), etc.] across the country. The
Reserve Bank is examining a framework to capture the location and business
details of commercial bank branches, ATMs and BCs. It is envisaged to extend a
similar framework to capture and maintain information about PoS terminals and
other payment system touch points as well.
5.4 REGULATION
5.4.1 FOSTERING INNOVATION IN A RESPONSIBLE ENVIRONMENT

THROUGH REGULATORY SANDBOX
The regulatory sandbox approach has been gaining traction in several
jurisdictions. A sandbox approach to regulation would help enable innovation in
digital payments while avoiding any systemic risks. The Reserve Bank’s Working
Group Report on FinTech and Digital Banking recommended developing a

framework for regulatory sandboxes. Given the evolving nature of payment
instruments and technologies used to provide payment services, a framework for
a regulatory sandbox for payment systems would be designed to provide a
controlled environment, with certain regulatory exemptions, to allow
experimentation of new payment system products by traditional and non-
traditional players.
(Action – RBI)
5.4.2 SYSTEM CAPACITY AND SCALABILITY

The current approach to authorisation for payment systems is liberal with no
prescriptions and / or assessment responsibilities on the payment service
providers in terms of performance metrics like uptime, technical declines,
capacity, etc. for systems operated by them. At the infant stage of development,
this measure was considered necessary to enable service providers to build and
enhance capabilities over time. As payment systems have since come a long way,
and there is an increasing expectation that the systems should be robust and
resilient, a framework for an ongoing assessment of the performance of retail
payment systems would be designed. Need for prescribing explicit exit criteria of
payment systems and payment system operators based on a transparent point-
of-arrival metrics will also be explored.
5.4.3 CONTACTLESS PAYMENTS AND TOKENISATION

Contactless payments, while decreasing the time taken for payment checkout,
also ease payments for small ticket payment transactions. Tokenisation
technologies often form the basis of facilitating seamless e-commerce
experiences fuelled by mobile and other connected devices. The rapid growth in
devices provides a significant opportunity for payments through any form factor
and anywhere. For digital payments to take advantage of this opportunity, an
appropriate regulatory framework built on the principles of innovation,
transparency and consumer control is required. Reserve Bank has already
recognized this and authorised certain players to offer mobile payment solutions
driven by secure tokenisation standards. RBI would consider a broad-based
framework for other payment experiences, keeping in mind customer liability
issues and security of authentication mechanisms.
(Action – RBI)
5.4.4 REVIEW OF MEMBERSHIP OF CENTRALISED PAYMENT SYSTEMS

The Reserve Bank continuously receives requests and feedback for payment
infrastructure access neutrality between banks and non-banks. RBI has already
permitted participation of non-banks in certain payment infrastructure; RBI will
initiate discussion to develop a framework for settlement risk management with
increased participation of non-banks.
(Action – RBI)
5.4.5 INCREASING LEI USAGE FOR LARGE VALUE CROSS BORDER

PAYMENTS
Legal Entity Identifier (LEI) system envisages identification of unique parties to
financial transactions across the globe and is designed as an important
component for improvement in financial data across the globe. Cross border retail
payments are generally less transparent and more expensive than domestic

transactions. Given the nature of cross border transactions, there is a case for
exploring the option of using LEI to identify the payment service providers, their
agents and distributors, in respect of cross border services, particularly for large
value payments, including expanding the implementation across all the identified
segments.
(Action – RBI and LEIL)
5.4.6 ENCOURAGE ADOPTION OF NEW TECHNOLOGIES INCLUDING DLT

FOR ENHANCEMENT OF DIGITAL PAYMENT SERVICES
Technology has been at the centre of payment systems innovation and
development. Adoption of Distributed Ledger Technology (DLT) for financial
services has been a subject of interest. Various views espouse that adoption of
DLT can enhance the operations of payment systems by improving the quality of
data and providing additional information for payment transaction, which help
automated reconciliation and reversal with high degree of precision. Adoption of
DLT will be considered to facilitate industry wide adoption for areas which can
benefit from this technology.
(Action – RBI, CCIL, NPCI and PSOs)
5.4.7 E-MANDATES / STANDING INSTRUCTIONS

The Reserve Bank has been receiving requests for allowing e-mandate / standing
instructions-based automation of periodically recurring, non-discretionary
payments. The Reserve Bank will consider implementation of e-mandates /
standing instructions for retail payment systems, subject to customer protection
and adequate safeguards like authenticating payment instrument registration,
mandating transaction limits, segments, etc.
(Action – RBI)
5.4.8 SECURITY ASPECTS OF MOBILE PAYMENTS

The guidelines for mobile banking issued by the Reserve Bank indicate the
technological and security standards which the banks may comply with while
providing mobile banking services to their customers. The Reserve Bank would
issue specific standards which the banks providing mobile payment services shall
comply with, mandate minimum requirements, highlight best practices and
initiate discussion on risks emerging from innovative payment channels through
emerging technologies including Artificial Intelligence, Internet of Things devices,
wearables, etc.
(Action – RBI)
5.4.9 REGULATION OF PAYMENT GATEWAY SERVICE PROVIDERS AND

PAYMENT AGGREGATORS
The growth of online payment transactions has led to increasing role of payment
gateway service providers. The current guidelines on payment gateway
operations (monitored through banks) are indirect and address only a few specific
aspects of their functioning. The Reserve Bank has initiated discussion on
examining the need for separate guidelines for payments related activities of
these entities which will be taken forward during the vision period.
(Action – RBI)
5.4.10 INTER-REGULATORY AND INTRA-REGULATORY CO-ORDINATION

In order to have a coordinated approach towards regulation, the Reserve Bank
shall engage with the other sectoral regulators – SEBI, IRDA, TRAI, etc., to
remove frictions in regulation and ease system operator / customer comfort. The
endeavor will also to have a coordinated approach to regulation and supervision
within Reserve Bank across the different related departments – Department of
Banking Regulation, Department of Banking Supervision, Department of Non-
Banking Regulation, Department of Co-operative Banking Regulation, Financial
Markets Regulation Department, Financial Markets Operations Department,
Foreign Exchange Department, Customer Education and Protection Department,
Department of Information Technology, Department of Economic and Policy
Research, Department of Statistics and Information Management, Department of
Government and Bank Accounts, etc. Similar engagements with the subsidiaries
of Reserve Bank – Institute for Development and Research in Banking Technology
(IDRBT), Reserve Bank Information Technology Pvt. Ltd. (ReBIT), etc., will be
pursued.
(Action – RBI)
5.5 RISK-FOCUSSED SUPERVISION
5.5.1 PROPORTIONATE OVERSIGHT FOR MAINTAINING INTEGRITY OF

PAYMENT SYSTEMS
Security is pivotal and risk management practices should be implemented with
conservativeness in approach and ruthlessness in implementation across each
and every product. Cyber risks are increasing rampantly with advancement in
technology, and increasing adoption of digital services, whether financial or
otherwise, is bringing these issues to the forefront. This issue becomes grave
given the fact that the nature of threat is dynamic and keeps changing rapidly.
The interconnected systems are as safe as their weakest link. There is, therefore,
a need for both security against possible cyber-attacks and resilience in the
eventuality of such attacks. All payment systems should display explicit levels of
safety. It would be necessary that systems not only meet the requirements of
safety but are also subjected to safety audits at periodic intervals.
The Reserve Bank undertakes oversight of the payment systems through onsite
supervision and off-site surveillance. There is a prescription of self-assessment
by the PSOs, which are also required to subject their systems to IS audit through
CERT-In empaneled auditors. For transparency and clarity, there is a need for
disclosed supervisory framework for all the stake holders to better understand
their roles and responsibilities. The need for publishing oversight reports in public
domain by the Reserve Bank would be considered. The feasibility of oversight of
cross border entities with the help of information sharing MOUs with overseas
regulators will also be examined. The oversight framework for PSOs would also
include data reporting and analytics requirements for PSOs.
(Action – RBI, PSOs)
The existing penalty framework for payment system operators will be reviewed
and modified, if required, to make the process more transparent and achieve the
expected outcomes.
(Action – RBI)

In consultation with the CSITE Cell of the Reserve Bank, the need to subject
payment system operators to the same rigour for cyber-security preparedness as
the other entities in the financial sector will be looked into.
(Action – RBI)
5.5.2 THIRD PARTY RISK MANAGEMENT AND SYSTEM-WIDE SECURITY

The Reserve Bank had earlier issued guidelines on managing risks in respect of
outsourcing of financial services by banks. The need for a separate regulatory
framework for outsourcing arrangements by non-bank payment service providers
would be examined given the current trend of outsourcing arrangements and the
need for security control and clarity of roles and responsibilities of the regulated
entities. Such a framework would consider the risks associated with data access,
confidentiality, integrity, sovereignty, recoverability, regulatory compliance and
auditing. Such a framework would also consider overall security of the digital
payments ecosystem by covering the entire payment transaction chain, including
the need for establishing end point security. Adoption of PCI (Payment Card
Industry) standards can be considered as a desirable best practice by all the
entities in a payment transaction chain, irrespective of their status as a regulated
entity or otherwise. Need to customise PCI standards to better suit / reflect Indian
situations will also be explored.
5.5.3 FRAMEWORK FOR COLLECTING DATA ON FRAUDS IN PAYMENT

SYSTEMS
To further strengthen the confidence in the payment systems and minimise
instances of frauds, there is a need to monitor the types of frauds that may be
taking place in various payment systems. To this end, there is a need to share
fraud related data for payment systems. Such data can be used analytically for
differentiating fraudulent and legitimate transactions; oversight and supervision,
and also for providing guidelines to entities for minimising risks of similar frauds.
This would also help in improving resilience and trust in the system. The Reserve
Bank would promote use of such analytics to proactively identify instances and
aspire for prediction of frauds to help instant response and recovery actions, such
as blocking irregular transactions, before the payment authorisation. The fraud
data will be used to influence regulatory decisions and for reducing the incidence
and level of frauds in the payments ecospace.
5.5.4 DRAFTING A FRAMEWORK FOR TESTING RESILIENCE OF PAYMENT

SYSTEMS
With the introduction of alternate modes of electronic payments, both for the
financial markets, and for businesses and individuals, the resilience of the
payment systems has gained importance. Here, resilience refers to the ability to
continue to operate even if a system has failed completely by switching activity
to a separate system or process or a combination of both. A framework would be
drafted for the same. The framework shall also include business continuity and
infrastructure redundancy preparedness.
(Action – RBI)

5.5.5 BENCHMARKING INDIA’S PAYMENT SYSTEMS
An efficient payment system reduces the cost of exchanging goods and services
and is indispensable to the functioning of the intra-bank, inter-bank, money and
capital markets. The past decade has been witness to a number of innovations,
especially in retail payments. The Reserve Bank shall conduct an exercise which
will aim at benchmarking India’s payment systems and gauge India’s standing
against major countries across all payment systems and payment instruments.
Efforts will be towards improving the performance and standing of our payment
systems vis-à-vis international / cross-country best practices. The learning points
will also be used to improve existing payment system features in the interest of
reducing frictions and enhancing acceptance and usage levels. The endeavor shall
also be to repeat the benchmarking exercise by expanding coverage and features.
(Action – RBI)
SMS on Safe Digital Banking

Online Banking? Only use sites with
https; avoid banking on free networks;
regularly change and do not share
password/PIN. For more, give missed
call on 14440.
IVRS on Safe Digital Banking
Register your mobile number and email
with your bank to get instant alerts. If
you get an alert about a transaction that
you have not initiated or authorised, you
can immediately take it up with your
bank. You need to take a few more
precautions while banking online. For
instance, do not store important banking
data in your mobile, email or wallet. Use
only verified, secure and trusted
websites, that is, websites starting with
https: for online banking. Avoid banking
through public, open or free networks.
Change your online banking password
and PIN. Block your ATM card, Credit
Card, Prepaid Card immediately, if it is
lost or stolen.
***********************

Revision in Service Charges for NEFT/RTGS transactions
Revision in Service Charges for NEFT transactions through Internet & Mobile Apps
of the Bank for Saving Bank Account Holder
(BC: 113/168 Dated: 19.12.2019)
Accordingly, charges on NEFT transactions from 01.01.2020 will be as under –
Sr. Item Revised Service Charges -
w.e.f. 01.01.2020 (Excluding GST)
1 REMITTANCES Up to Rs.10000/-: RS.2.00 per transaction.
NEFT OUTWARD Above Rs.10000/- UPTO Rs.1 lac Rs.4.50 per transaction.
(through Branch) Above Rs.1 lac to Rs.2 lac: Rs.14.00 14.00
Above Rs.2 lac: Rs.24.00
2 REMITTANCES For Saving Bank Account Holder:
NEFT OUTWARD Up to Rs.10000/-: Nil
(through Above Rs.10000/-: Nil
Internet/ Mobile For CC/OD/CD Account Holder:
Banking) Up to Rs.10000/-: Rs.2.00 per transaction.
Above Rs.10000/-: Rs.4.50 per transaction.
(BC: 113/55 Dated: 15.06.2019)
Sr. Item Revised Service Charges -
w.e.f. 01.07.2019 (Excluding GST)
1 REMITTANCES Below Rs.2 Lakhs: Not applicable
RTGS OUTWARD Rs.2 Lakhs to Rs.5 Lakhs: Rs.29
(through Branch) Above Rs.5 Lakhs: Rs.49
2 REMITTANCES Rs.5 per transaction.
RTGS OUTWARD
(through Internet)
Revision of Transactional Based Charges on ATM Transactions

RBI vide letter Ref. No. RBI/2019-20/41 dated 14.08.2019 have issued a directive
regarding charges based on ATM transaction. On the basis of the same we have
revised Transaction Based Charges on ATM transactions as under: -
(BC: 113/114 Dated: 12.09.2019)
Type of Revised Charges (Excluding GST) w.e.f 01.10.2019
charge
a) a) Monthly Limit SB A/cs.: Number of Free ATM Transactions
Transactions (Both financial & Non – Financial Transactions) Other
based Monthly avg. Other ATM 6 Other ATM Out ATM 6
charges on Balance Metro Other Metro & Other
ATM Centers Centers Centers
transactions Upto Rs. 1.00
in SB a/cs. 3 5 10
Lakh
Charges for
Financial trxns
Rs.20/- Rs.20/- Rs.10/-
Beyond the set
limit
Charges for
Nonfinancial
Rs.8/- Rs.8/- NIL
trxns beyond the
set limit
2. SB accounts with MAB of Rs.1.00 lac & above — No charge to be levied.
3. These charges will not be applicable to Small/No Frill Deposit Account
holders. These customers will continue to get 5 free transactions,
irrespective of the centre, as hitherto. As also charges on nonfinancial

transactions will now be free on our own ATM irrespective of
number of transactions.
b) b) For Current/Overdraft account holders following charges are
Transactions applicable: -
ns based Charges for Other Bank ATM Our ATM on all centres
charges on on all centres
ATM Financial
Rs.20/- Rs.20/-
transactions transaction
in CC/OD/CD Non-Financial
a/cs.. Rs.8/- NIL
transaction
The number of transaction should not be counted as valid ATM
transactions on account of failed transaction due to technical reason like
hardware, software, communication issues; non-availability of currency
notes in the ATM; and other declines ascribable directly/wholly to the
bank/service provider; invalid PIN/ validations; etc.
Transaction limits at Business Correspondent (BC) outlets

(BC: 113/153 Dated: 14.10.2019)
In terms of the RBI revised notification vide circular No.DBR.LEG.

BC.No.47/09.07.005/2018-19 dated June 10, 2019 on the revised BSBDA
guidelines issued to all PSBs, Bank has already issued an Adv.Cir. HO-BC:113/
dated 16.08.2019 revised guidelines on BSBDA (Basic Savings Bank Deposit
Account) and value-added services (chargeable to customers). Value added
services are available for customer, subject to branch obtaining customer written-
mandate for their option and acceptance of payment of applicable service-charges
thereof, with immediate effect
The cash transaction limits are detailed as under:

Sr. Transaction type Revised Limit Charges applicable /
No. Rationale or Remark.
Cash Withdrawal Rs.10000/- per Remuneration to BC agents will be
AEPS based. transaction/per limited to extant guidelines issued
(Onus / Offus) day/per customer vide EDBCC under reference.
(HO-FID IOM No. HO:BU-
FLAKV:2017- 18:173 dated
06.02.2017)
Limit of Rs.10,000/= for cash
withdrawal appears to be reasonable,
since mostly cater to the mid & lower
sections of the society (excluding HNI
/ NRI / Other-than-individual
category).
BSBDA (revised) norms applicable
- Refer Br Cir on BSBDA (revised) -
Adv Cir.113/ dtd 16.08.2019
PIN BASED Rs.2,000/= per Bank offers P.M. min. FOUR
(Card based tranx in trnx. transactions as FREE to BSBDA
micro ATM / FI-Kiosk Max.Rs,5,000/= holders, in terms of the board
using Std & EMV per day / per approved policy vis-à-vis RBI
compliant PIN-PAD debit Card / per guidelines on BSBDA (revised) Jun
device) customer 2019, under reference.

Customer to be charged for the fifth
withdrawal onwards at the rate of
Rs.20/- + GST extra. (to be
recovered from customer) w.r.t.
Offus / Onus in AEPS / Normal
branch-banking transaction mode.
This will restrict the expected

accommodating/round-tripping and
connived BC-transactions in the
Bank, thereby reduce Bank's undue
inter-change / acquirer charges
levied by acquirer / NPCI / UIDAI
authorities.
Cash Deposit Rs.10,000/= per Remuneration to BC agents will be
AEPS based trnx. / limited to extant guidelines issued
(onus / offus) Rs.20,000/= per vide EDBCC under reference.
day / per customer.
All the deposit transactions will be
free of charge to customer, based on
his/her banking account type & limits.
Since, BC outsourced channel is

catering majority to the requirement
of masses, high value credits /
deposits may exhaust the balances in
BC's office-cash management
account (i.e., BC-OD Account).
Therefore, the competent authority
has advised to continue with
Rs.20,000/- cash deposit limit which
appears to be reasonable as of now.
Remittance. Rs.10,000/- per This product is designed to cater to
(includes, IMPS, transaction. the requirement of migrant labourers
NEFT, DMT-offus and limit of Rs.10,000/- appears to
(domestic money be reasonable for this target
transfer) segment.
Money Transfer Rs.10,000/- per Rs.30/= per tranx. charged to
(MT) trnx; Max. Beneficiary for Intra-Sol / Non-home
(Cash to A/C) Rs.49,999/=per MT Trnx only.
day/per beneficiary Beneficiary a/c will attract BSBDA
norms & limits prescribed by RBI
SHG Rs.1000/= per BSBDA norms & limits prescribed by
Cash Deposit/ Trnx.; RBI / BOI applicable
Withdrawal/ Fund Max.Rs.10000/-
Transfer in SHG a/cs per day / per
(AEPS based) SHG Account.
All these charges / guidelines applicable in Bank's Fl Gateway services or Branch
Finacle/CBS
Depending on the inflow of cash deposits / funds and payment demands, Branch
Manager (upto Rs.50,000/-) and Zonal Manager (above Rs.50,000/-) are
authorized to suitably adjudge and enhance the BC-OD limits (BC's Office Cash
Management Account and purpose) for specific time / period so that customer are
not denied withdrawal / deposit services at BC outlets, on account of non-

availability of limit in BC-OD a/c for ICT led BC banking transactions. In terms of
extant guidelines, ZM is authorized to onboard Corporate BC following stated
extant bank-guidelines issued vide HO 10Ms Ref.No.HO:BU-FI:SP:2018-19:13
dated 12-04-2018; HO-BU-FLAKV:2016-17:173 dated 06.02.2017 and HO-
Br.Cir.106/166 dtd 18.01.2013.
The Zonal authority to adjudge and ensure obtaining prescribed security towards
mitigating outsourcing risk involved in BC deployment. However, during
onboarding of Corporate-BC, ZM is permitted to reduce upto 50% of security
deposit or Bank guarantees to Corporate BC in deserving cases. For granting BC
OD Limit, ZM is also permitted to waive security deposit (TDR) requirement of
100% based on merit upto Rs.50,000/- per BC in regular cases and upto Rs.2.00
lakh for EBT (Electronic Benefit Transfer) payments / other payments for select
dates.
REPORT FOR DEBIT CARDS RETURNED TO BRANCHES

(BC: 113/76 Dated: 09.07.2019)
Please refer to HO BC 110/225 dated 14.01.2017 wherein we have advised
introduction of CARDTRAK menu to know the status of Debit card dispatch to
branches.
Subsequently, we have started sending the debit cards to the customers directly.
Cards which are not delivered are re-dispatched to branches. We are sending SMS
containing AWB details to customer when the card is dispatched to them /re-
dispatched to branches.
When the debit cards are returned it is necessary to ascertain the reason and
where the communication address has changed, re-KYC may have to be done.
We have introduced a new report in Finacle DR so that the detailed report can be
generated and necessary action, including change in address, mobile number, and
email-id can be done.
Procedure to generate the report is as under:

i. Go to Menu "MISRPT" in Finacle DR.
ii. Select Module name "OTHERS", Report Number "RTO" and press F4.
iii. Enter the branch code and date range for which report is to be generated,
proceed to generate report.
Branches are advised to generate the report weekly/fortnightly depending upon

number of cards returned and complete re-KYC wherever required.
BOI CREDIT CONTROL APP FOR CREDIT CARDS

(BC: 113/37 Dated: 30.05.2019)
"BOI Credit control app" is a product that is designed for the credit cardholders to
have a complete control of their Credit Cards using their smart phones.
Cardholders can control the usage of their cards through this service. The
Cardholder can control his card limits, control usage in a particular country, control
usage in certain points of sale. Cardholders can set control preferences to match
the desired usage profile for their own cards as well as their dependents' cards,

and change it instantly when needed. On top of controlling the card settings, the
cardholder can use the same access channels to retrieve information related to
his card; list of transaction, "open to buy"/account balance, in addition a Spend
Analyser is offered.
"BOI Credit control app" offers the following controls and features:
1. Lock/Unlock card: Users can protect their cards from getting misused by
turning ON and OFF only when they want to use it.
2. Green Pin: User can create new pin OR user can change pin of his/her Credit
Card. When user click on green pin option, OTP is sent to the registered mobile
number. After validating the OTP, user set new pin.
3. Set Card Limits: Users have the flexibility to set their own maximum
Transaction limits for every card.
4. Card Usage: Depending on the user's requirement, user can also

enable/disable their card for specific type of transactions- ATM or POS. For
Example, if the user does not wish to use his card for purchases, then he can
disable POS transactions by turning it OFF with a single touch.
Also, user can control the usage of international transactions by enabling the
specific countries in which the card can be utilized. User can also blacklist MCCs
for prevent transaction on specified businesses.
5. Keep Track: User need not visit the branch/ATM to get the details of the
transactions. User can view the recent transactions as well the expense history
instantly on the app itself.
6. Notification: Users can get notified for every transaction occurred with his
payment cards on the mobile app.
7. Account Summary: Users can view the details of account like Credit limit,
minimum amount due, unbilled amount, etc.
8. User Profile Management: Users can manage his account by using change
and forgot password functionality and change MPIN.
Types of Transactions
Card-Present Transactions
When a customer uses a card that is physically present to make a purchase, the
purchase is known as a card-present transaction. This type of transaction typically
occurs in a retail environment.
Card-Not-Present Transactions
When a customer provides a card number but you do not have access to the
physical card, the purchase is known as a card-not-present transaction. This type
of transaction typically occurs over the Internet or through a call centre.
International Transactions
When a customer uses a card to make payments from a country other than his
own, the purchase is known as international transaction. This type of transaction

requires observing the processing rules and practices of the payment systems in
that country.
This Application can be used by both Branch Billing and Direct Billing customers.
Registration and Usages

User can start using the application by installing the "BOI Credit control app" from
Google Play Store/App Store. Once the application is downloaded, user needs to
register by following the registration process as mentioned below:
1. User opens the "BOI Credit control app" on his Smartphone and views the
login page as the initial page of the app
2. User selects the option for registration.
3. User enters his card number and expiry date and "BOI Credit control app"
checks against the back-end systems for the following:
a. Does the card exist
b. Is the card a primary card?
c. Is the card active
4. If yes, the mobile number and email address is retrieved from customer
profile.
5. Card control module generates an OTP (One-time password) and sends it

on registered mobile number of the customer.
6. The user receives an OW on his registered mobile number and enters it into
the "BOI Credit control app".
7. Post validation, the user is prompted to create User ID / Password & MPIN.
The User ID is checked for duplicate, if unavailable then the User ID is
allocated to the customer else, the user will have to create a new user ID.
8. After successfully creation of user, the primary cardholder is registered and

the corresponding account is flagged in the back-end systems.
For the primary card entered by user, all the primary card and related add-on
cards are displayed in mobile application. Thus, the usage of the primary card and
all related active add-on cards can be control in the Card Control. Furthermore,
the Card Control receives the transaction messages for these cards.
User Login
User can login with his login credentials and start using the application. The login
process is described as below:
1. User views the login screen on start of the app
2. User will enter his credentials i.e. username and password
3. After validation, user will be able to view his card(s) and the controls related
to those cards.
4. User can now control his card(s) by setting up preferences for different
parameters using the Mobile Application

Control of Card(s)
User can control the preferences of the card using Card Control application on
their mobile. The application will provide the users with a list of card(s) for which
they can setup their own preferences. The application displays active and inactive
primary as well as the add-on cards that are linked to the primary card. User can
setup various controls on these cards. The different controls include:
1. Temporary Card Blocking

2. Spend Limit Configuration
3. Enable/disable International Transactions
4. Enable/Disable Payment Channels (POS, ATM, Online)
Temporary Blocking
User can lock or unlock the card(s) on a real time basis. This feature will give the
user the ultimate control over the cards from being misused, lost or stolen. All
transactions carried out by using any payment channels will be declined when the
card is in lock status.
The temporary blocking is a de-activation of the card that takes place only in the
Card Control; it does not affect the card status in the CMS. The primary cardholder
can lock I unlock the primary card as well as all add-on cards.
Spend limit Configuration

User can set different limits for a care on a real time basis. These limits will
primarily be Transaction and Monthly Limit per card. The transaction limit will cap
the transaction amount for a single transaction while monthly limit will cap the
maximum cumulative amount of transactions which are allowed during a month.
Any transaction which surpasses these limits will be declined by Card Control
System.
Limit
User can define a maximum amount for per transaction limit, for his primary card,
within default maximum transaction amount limit provided by Issuer (Bank). This
per transaction amount limit becomes the default one for each primary
cardholder's add-on card. User can change the per transaction limit parameter for
the add-on card by select the respective card.
A primary cardholder shall be able to define a maximum transaction amount limit

for one of his add-on cards within default maximum transaction amount limit
defined for his primary card.
Any transactions made on the card beyond the set limit have to be declined by
Card Control.
View Transactions
User can view the recent and past transactions instantly on the Card Control
application. The user will be able to view the history of the transactions which
have been authorized or declined by Card Control.
Recent transactions
User can view the recent transactions by selecting the "Recent Transactions"
option from the homepage. A maximum of last 10 transactions can be viewed in

the Card Control Application. The transaction would provide details of the
Merchant, Channel Used for Transaction, Amount, Date and Time of transaction,
and authorization status to the customer. The transaction(s) can be in approved,
declined or reversed state with an appropriate reason for decline, if any. The
process for the same is as under:
a. User opens the "BOI Credit control app" on his mobile, logs in with his
username and password
b. User selects the card for which he needs to view the recent transactions.
c. Card Control application pulls the data from the server and displays the
transaction history. There will be separate colour codes for approved &
declined transactions.
Session Management
This is a security feature which is aimed at preventing unauthorized access to Card
Control App. This feature prevents multiple login to the application using same
login credentials on different devices simultaneously. At a time, only a single
device can log to Card Control Application. If two devices logs in at a same time,
customer would be intimated regarding the same. If there has been a security
breach, he would be forced to change the password.
Other important features:

a. Enable/Disable International Transactions
b. Enable/Disable Payment channels (POS, ATM, Online)
c. Expense History
d. Expense Analyzer/Graph
e. Profile Management
f. Forgot Password
g. Reset MPIN
Hotlist Card
User can block his card(s) by hotlisting the card in the “BOI Credit control app”.
This feature will block the card from any kind of transaction usage. This feature is
extremely useful if the user feels his card has been compromised. Once the card
has been hotlisted in the app, the user will not have an option to de-hotlist the
card on the app. The process is irreversible.
To hotlist a card, the process flow will be as under:

User opens the “BOI Credit control app” on his mobile, logs in with his username
and password
 User selects a card that he intends to hotlist
 User will be prompted to enter MPIN to authenticate himself.
 If the MPIN is validated successfully, user will be prompted with a warning
pop-up & asked to confirm request. Else user will be prompted to enter
MPIN again.
 Once the user confirms the request, the application processes the request
of hot-listing the card and the request is sent to the CMS for the same.

“BOI CARD SHIELD” App for Debit Cards
(BC: 113/36 Dated: 30.05.2019)
CARD SHIELD gives you unprecedented control over how, when and where your
debit cards are used. Here are a few examples.
Turn Your Card On/Off

Have you ever had that panicky feeling when you misplace a card? CARD SHIELD
lets you turn the debit card off while you look for it so that no one else can use it.
If they try to, the transaction will be denied. Once you find the card and are ready
to use it, turn it back on.
Be Notified Whenever Your Card Is Used to Make a Purchase

How cool would it be to get a notification as soon as your card is used for a large
online purchase? CARD SHIELD delivers alerts directly to your iOS or Android
mobile device and lets you select the criteria used to generate the alerts. Be
notified of every transaction or set your notification preferences right from the
Mobile App.
Only Allow Transactions Near You

Now here's an awesome feature. Let's say you're traveling and you want to make
sure your card can be used in stores only when you are physically present. Turning
on the "My Location" control in CARD SHIELD and having your mobile phone in
your possession will ensures that you’re in-store transactions are approved.
Anyone else trying to use your card, in a different location, will have their in-store
purchases denied.
Share Your Card, But Set Limits

Wouldn't it be nice to loan your child a card but set limits on where it can be used
and the amount that can be spent? CARD SHIELD lets you share a card while
limiting its usage to a specific location or geographic region. You can also limit the
maximum amount that can be spent per transaction. Now your child can have a
good time at the amusement park but cannot come home with the latest gaming
console.
These are just a few examples of how CARD SHIELD can help you control and
manage your cards. For more information, refer to the Help section in the Mobile
App.
Registration:
User Registration – Account Creation
Download the app "BOI CardShield" onto your smartphone from App
Store (iOS) and Play Store (Android).
 For registration, click on New User and enter the card details. 6-digit
security code will be generated and sent on the registered mobile number
with Bank. Set your username and password. Use a minimum password
length of 8 or more characters including lowercase and uppercase
alphabetic characters, numbers and symbols.
 You will receive a confirmation email for successful registration.
 Login to your app using created Username and password.

Features:
Switch card on/off
 Cardholders can lock or unlock cards with a single touch.
 A card can be switched on for a short duration of time or purchase window.
 User can see and change card status instantly.
Control Preferences
Location
 My Location: Will only allow POS/ATM transactions in the geographical
proximity (city) of device’s location.
 My Region: More than one regions can be set for transactions authorization.
 International ATM/POS transactions can be controlled to allow or deny. To
enable/disable International transaction, switch on International feature
and add the country in which the card should work. If not enabled, the card
will function according to default functionality.
Merchant Types
 Cardholders can enable or disable merchant categories. For example,
cardholder can allow or deny gas station, entertainment, personal care, or
travel transactions etc.
 Parents can specify merchant establishment categories where dependents’
card can be used.
Transaction Types
 Cardholders can enable or disable specific types of transactions and
payment methods. For example, cardholder can allow or deny e-commerce
purchases.
 Parents and businesses can specify purchase types that can be made on
dependent cards.
Spend Limits
 Cardholders can set spend threshold for transaction amounts.
 Parents and businesses can specify dependent spend limits.
Alert Preferences
 Monitor alerts for various parameters as below. One can act instantly on
real-time transaction alerts and offers.
 My Location
 Region on a Map
 International
 Merchant Category
 Transaction Limit
 Low Balance
 Card Status Change
Recent Transactions
 Recent Transactions allows to view your latest transactions.
Linked Accounts
 Through Linked Accounts, the accounts linked to that card can be viewed.
If cards from different account are added, the balance and recent
transactions account-wise can be viewed.
 Low balance alert can be set account specific.

Shared Card Users
 Shared card user allows to control your Dependents card. Restricted access
can be given according to merchant categories and transaction types.
Introduction of RuPay Credit Cards

(BC: 113/23 Dated: 30.04.2019)
RuPay Credit Cards offers various benefits to card holders with superior customer
service and higher levels of acceptance. NPCI offers RuPay cards at low processing
fees. RuPay Credit Card is designed for Mass-Affluent segment with host of power
packed benefits /offers.
Two variants of RuPay Credit Cards:

• RuPay Platinum Credit Card
• Swadhan Platinum Credit Card(Credit Card Against TDR)
"RuPay Platinum" & "Swadhan Platinum Credit Cards" are International Credit
Cards and can be used in any Merchant Establishment (POS terminals) ,on ATMs
and for ecommerce transactions where RuPay Cards are accepted worldwide.
"RuPay Platinum" Credit Cards & "Swadhan Platinum" Credit Cards have the
following added advantages:
 Welcome Benefits: Exclusive Gift Vouchers from leading merchants
 Accidental Insurance Cover: Insurance Cover of up to Rs. 2.00 lacs on

RuPay Platinum & Swadhan Platinum Credit Card in case of loss of life or
permanent disability due to accident from NPCI.
 Concierge Services: Avail 24X7 host of referral services from Travel

assistance to Hotel reservations and Consultancy services.
 Cash Back and Merchant Offers: Cash back offers on Utility bill
payments, at Restaurants and at Eateries and also exclusive Merchant
Offers on (POS and Ecom) are being provided by NPCI from time to time.
The cardholders can avail latest offers available on RuPay Credit Card by
visiting the following URL. https://www.rupay.co.in/rupay-offers. Terms
and Conditions as per service provider applies.
RuPay Platinum Credit Card:
Valid for usage: In India and Abroad.
Eligibility: As per credit card management policy issued by Card Products

Department. Please refer Branch Circular No.113/04 dated01.04.2019.
SwaDhan RuPay Platinum: SwaDhan RuPay Platinum Credit card to be issued

to against TDR.
Eligibility: As per credit card management policy issued by Card Products

Department. Please refer Branch Circular No.113/04 dated01.04.2019.
Valid for usage: In India and Abroad.

Entrance Fee, Annual Membership Fees and Replacement Card Charges
without GST
Card Type Entrance Annual Replacement

Fee Membership Fee Charges
Principal Add-on Principal/Add-on
RuPay Credit 1500 1500 800 500
Platinum
SwaDhan Credit 0 0 0 0
RuPay
Platinum
Nil Charges for Staff / Ex-Staff / Senior Citizens
Marking of lien in Finacle: The branches while issuing credit card against TDR
need to ensure that the lien is marked in ALM menu in CBS with reason code Credit
Card against TDR. In case of enhancement of limit of the credit card the lien
amount has to be modified accordingly.
It is the duty of the branch staff to ensure that the lien is marked. In case the
customer wants to surrender the card, the branch needs to ensure that the
necessary dues are recovered.
Periodicity of Billing- Billing is done on the 15th of every month. Branch billing
customer's account will be debited on 5th of next month.
Issuing of Insta Pin: Insta pin to RuPay Credit Cards to be issued as per Branch
Circular No 110-237 dated 23.03.17. The pin serial number for RuPay Credit
Cards will begin with "6"
All other operational guidelines and Process flow to continue as mentioned in

Master Circular on Credit Cards 111/44 dated 19.06.2017 and Branch Circular
111/114 dated 11.10.2017 and the Branch Circular Reference No.113/04 dated
01.04.2019 on the Credit Card Management Policy issued by Card Products
Department.
Delegation for Sanction of Retail Credit Card shall be as under:

Delegation for Sanction shall be exercised by Branch Head as per limits applicable
to respective Scale of the Chief Incumbent of the Branch.
In proposing the limits, all sanctions at Head Office shall be routed through
respective Credit Committees.
ZLCC Shall be the Authority to approve Complimentary Card to be issued to

Customers of the Zone.

Delegation for Sanction of Retail Credit Card shall be as under:
Delegation for (Rs. Lakhs)
Sanction of Credit Proposed
Card Limit
JMG Scale-I @ 0.50
JMG Scale-II @ 1.00
JMG Scale-III @ 4.00
SMG Scale-IV @ 6.00
AMOLCC 6.00
SMG Scale-V @ 10.00
SZLCC 10.00
TEG Scale-VI @ 25.00
ZLCC 25.00
TEG Scale-VII @ -
NBGLCC / GMLCC 100.00
ED -
EDLCC 150.00
MD & CEO -
CAC 250.00
M.Corn Full Power
@-Branch Head
General Manager, Card Products Department, shall be the Authority to approve

Complimentary Credit Card to Whole Time Directors, Chief Vigilance Officer and
Top Executives.
Delegation for Sanction of Credit card against Term Deposit (SwaDhan
Card)
Delegation for (Rs. Lakhs)
Sanction of Credit Proposed
Card Limit
JMG Scale-I @ 2.00
JMG Scale-II @ 5.00
JMG Scale-III @ 7.50
SMG Scale-IV @ 10.00
AMOLCC 15.00
SMG Scale-V @ 30.00
SZLCC 40.00
TEG Scale-VI @ 50.00
ZLCC 75.00
TEG Scale-VII @ 100.00
NBGLCC / GMLCC 125.00
ED -
EDLCC 200.00
MD & CEO -
CAC 500.00
M.Corn Full Power
@-Branch Head
Sanction of corporate credit card excluding SwaDhan as per the extent
delegation of Power.

Other Charges for Credit Cards
Description of charges Charges
Interest free period For Cash Advance: Nil
For Other Transactions: 21-51 days
(applicable only on retail purchases and if previous
month's outstanding balance is paid in full)
Charges on Revolving Secured Credit (SwaDhan)
Credit 1.20% p.m. (15.40% p.a.) on daily balances
In case of default service charges is 1.70% p.m.
(22.45 % p.a)
Unsecured Credit (Other than SwaDhan)
1.70% p.m. (22.45% p.a.) on daily balances
(34.50 % p.a)
Minimum Repayment 10% of Total Outstanding, if revolving credit is opted
Amount + EMI (all EMI due) + other amount due.
Cash Advance Limit For both Principal and Add-on card:
50% of Spending Limit or available limit, whichever
is lower.
Cash withdrawal upto 40% of spending limit of
Primary card and upto 20% on Add-on Card.
Cash withdrawal per day Rs.50,000 for Platinum and
Rs.15,000 for rest variant
Cash Advance Charges BOI ATM: 2% (minimum Rs. 50) for each
transaction.
Other ATM: 2.5% (minimum Rs. 75) for each
transaction.
Overseas ATM: 2.5% (minimum Rs. 125) for each
transaction and Currency Conversion Charges,
presently 2%.
Interest on dues/overdue applicable

Star Easy Pay (EMI) Processing Charges — One-Time
1.00 % of the Purchase (Existing 2.20 %)
Finance Charge
1.25 % of the Purchase
(existing 1.50% p.m. on original amount)
(34.50 % p.a)
Prepayment Charges - Nil
Balance Enquiry Charges at BOI ATM: Nil
ATM Other Bank ATM in India: Rs. 20/-
Other Bank ATM Abroad: Rs. 25/-
Payment of charges Nil
(Cash/Cheque/Online/NEFT
/RTGS)


Description of charges Charges
Charges on over limit Secured Credit (SwaDhan)
account 1.70% p.m. (22.45 % p.a) on daily balances
(Purchase / Cash) Unsecured Credit (Other than SwaDhan)
2.50% p.m. (34.50 % p.a) on daily balances
Usage Over Spending Limit Rs. 100/- per occasion
Outstation Cheque For prevailing rates please refer to our website.
Processing charge Charges wef 15.12.2016 are as under:
Cheque Rs. Comm Rs.
Upto 5000 25
5001 - 10000 50
10001 — 100000 100
100001 — 500000 200
500001 — 1000000 225
Above 10,00,000 250
Payment Return Charges Rs. 100/ - per instrument.
PIN replacement Charges Rs. 50/- (per occasion)
Duplicate Bill Charges Rs. 50/- per quarter (after 12 months)
Retrieval of Charge Slip Actual or Rs. 100/- whichever is higher
Balance Transfer NIL
Processing Charges
Fuel Transaction Surcharge 2.5% of transaction amount (minimum Rs. 10) or
Actual charges claimed by the Acquirer bank,
whichever is higher.
Railway Ticket Rs. 30/- charged by
Purchase or Cancellation Railways + 2.5% (Min. Rs. 25/-) or Actual charges
Fee claimed by Railways / acquirer bank
Foreign Currency 2% Currency Conversion Charges for all currencies,
Transactions (excluding INR, being home currency).
For all types of transaction, including cash withdrawal
and transactions through POS/ecommerce/ online.
Goods and Services Tax  Applicable on all Fees, Interest and other Charges.
(GST)  The applicable GST would be dependent on place of
provision and place of supply.
 If POP and POS are in the same state then
applicable GST would be CGST and SGST/UTGST
else, IGST.
 GST for fee & Charges / Interest transactions Billed
on statement date will reflect in next month
statement.
 GST levied will not be reversed on any dispute on
Fee & Charges / interest.
Credit card against Term Deposit (SwaDhan Card)

 SwaDhan RuPay Platinum Credit card to be issued to against TDR.
 It is Chip card without Photo.
 Card valid in India, Nepal and at all foreign centres across the GLOBE,
wherever RuPay logo is displayed.
 Since it is a chip card it is safer for POS transactions; it would require PIN
for POS transaction

 Billing is done on the 15th of every month. Branch billing customer’s
account will be debited on 5th of next month.
 Welcome Benefits: Exclusive Gift Vouchers from leading merchants
National Common Mobility Card (NCMC)
Introduction to National Common Mobility Card (NCMC)

Ministry of Urban Development (MoUD) has come out with a National Common
Mobility Card (NCMC) model to enable seamless travel by different metros and
other transport systems across the country besides retail shopping and purchases.
A committee was formed with representatives of National Informatics Centre
(NIC), Centre for Development of Advance Computing (C-DAC), Bureau of Indian
Standards (BIS), National Payment Corporation of India (NPCI)and the Ministry of
Finance. After extensive study of various models being followed across the world,
the Committee recommended the EMV Open Loop Card with stored value-based
model and the same was approved. This card meets travel needs based on stored
value of money and can be used for travelling by any means of transport and also
enables account-based retail applications. Accordingly, this card does away with
the need of carrying separate cards for banking and transit requirements. With a
vision to create One Card for all Payments system, NPCI is working with Ministry
of Urban Development (MoUD), Government of India for implementation of
National Common Mobility Card Program (NCMC). This specification is dual
interface (contact & contactless) EMV card-based specification and is interoperable
based on open standards. This is aimed at low value payments for various
segments e.g. Transit, Smart cities, Toll, Parking and other low value merchant
payments in addition to the normal day to day retail payments. These
specifications would be capable of supporting not only payment products but also
transit applications like passes& government applications such as social security,
driving license, Id/access card etc. This will have increased customers convenience
as it would allow customers to use the same card for variety of needs.

Key Features of NCMC:
Bank of India Launched Contactless RuPay Classic Debit Card - National

Common Mobility Card (NCMC)"
With a vision to create One Card for all Payments system, Ministry of Urban
Development along with National Payments Corporation of India (NPCI) has come
out with a National Common Mobility Card (NCMC).

National Common Mobility Card (NCMC) is a dual interface (contact & contactless)
classic domestic EMV card which is interoperable and has an offline wallet as a
default option.
The amount in the offline wallet can be utilized for making low value payments for
various segments e.g. Transit, Smart cities, Toll. This will add to customer's
convenience as it would allow customers to use the same card for variety of needs.
As per RBI norms, transactions upto Rs.2,000/- can be processed without

a PIN. (RBl/2014-15/601-DPSS. CO. PD. No.2163/02.14.003/2014- 2015 Dtd
14th May 2015). The card will enable the customers to make electronic payments
by just waving the cards near the merchant terminal in lieu of dipping or swiping
them. These cards are based on the "Near Field Communication (NFC)
technology", which provides customers the improved convenience of speed as
these cards require significantly less time than traditional cards to complete a
transaction along with enhanced security as they remain in control of the
customer.
Salient Features
 The NCMC cards will be available in two variants Classic & Platinum. As of now
Bank is launching the Classic variant of NCMC debit card.
 The contactless debit card can be used for other purposes like any other Debit
Card for ATM cash withdrawal, shopping at merchant outlets (at pos), safe and
secure for online shopping (Ecom) and has an offline wallet which can be used
at transit, smart cities, toll.
 It is an advanced chip card with additional element (antenna) which will work
as sensor, due to which card will be required only to be tapped / waved near
the EDC /POS machine instead of swiping or inserting. Please note that
Contactless Payment may be made on the POS machines which are enabled for
RuPay Cards.
 While using this card the cardholder need not hand over the card to the
merchant. He has to simply go near the NFC terminal (EDC machine) and tap /
wave his card. Then the machine will capture the details of his card and process
the transaction and his account will be debited immediately with the amount he
has to pay and charge slip will be generated.
 As per R.B.I guidelines, PIN is waived for transactions upto Rupees 2000 for
contactless card transactions to enable the convenience and quick transaction
experience.
 At ATMs / non-NFC terminals and for transactions beyond Rs.2000/-, the

contactless card will continue to function like a normal credit / debit cards
requiring dip / swipe with PIN entry.
 The NFC terminals whether enabled for RuPay Cards or not will have the dip &
swipe facility for the all types of cards to be accepted.
 Maximum 3 NFC transactions are allowed per day

 In this type of card, two types of balance will be available as under:
i) Account Balance
ii) Card Balance (Stored Value)/Offline Wallet
There is no restriction upon the number of times in a day for the wallet
transactions.
i. Account balance: To be used for all online transactions across retail, E-
commerce, ATM.
ii. Card Balance (Stored Value)/Offline Wallet - to be used for all offline
transactions across transit, toll, parking, retail and smart cities. This value
will be reckoned as the card Wallet.
The Offline wallet balance limit for the NCMC cards will be as below
1. Classic Card - Rs.1,000=00
2. Platinum Card - Rs.2,000=00
As of now Bank is launching the classic variant of NCMC debit card which is for
domestic use only.
Balance in the offline wallet can be added/topped up in two ways

1. Through Cash
2. Through Debit Card
Through Cash:
i. A customer may approach a merchant authorized to perform top up
transaction
ii. The customer will pay the amount to be topped-up in Cash to the merchant
and the customer will tap the card on the POS and perform a money
add/reload transaction
iii. This money add transaction shall be authorized by the issuer host and
topped-up amount will be added at the host side in the wallet account
iv. This amount will be added into 'Card Balance' of RuPay contactless Card
post successful issuer authorization
Through Debit Card:

i. A customer may approach the merchant to perform top up of the card using
account.
ii. All such money add transactions shall be authorized by the issuer host.
iii. Dedicated RuPay contactless terminal will perform these transactions.
iv. Topped up balance will be added to the RuPay contactless card in 'Card
Balance' after successful approval from Issuer
Security
 The Contactless cards are just as secure as any other chip card and carry the
same multiple layers of security protection.

 Featuring a distinctive contactless mark, the cards have a tiny antenna
embedded into the card, which securely transmits payment information to and
from the contactless reader.
 During a contactless transaction the card never leaves customer's hand;

customer retains control of his card during the transaction, which significantly
reduces the risk of card loss and fraud due to counterfeit (skimming).
Usage Process
1. Customer has to look at the contactless symbol/logo the point of sale.
2. The cashier enters the purchase amount into the NFC terminal. This amount
is displayed on the NFC terminal reader
3. PIN authentication will be by-passed for low value transactions up to Rs.

2000/-
4. Beyond this transaction limit, the card will be processed as a contact payment
and authentication with PIN will be mandatory
5. Transactions are permitted on non- NFC terminals with PIN authentication.
6. On Non-NFC terminals, below Rupees 2000 even the PIN authentication is

mandatory as NFC feature will not work on such terminals.
Issuance and Annual Mainteance Charges

Particulars Charges
Issuance Charges Rs. 150/-
Annual Maintenance Charges Rs. 150/-
Card Replacement Charges Rs. 150/-
Repin Charges Rs. 60/-
Green Pin Free
Finacle Menu:
Branches can raise the request through menu "ADCREQ" as below:
Card Card lnstapin series Cash Purchase+

Type In for menu Withdrawal E.Comm.
ADCREQ limit per day
limit per day
RuPay "1” 7-series Rs. 15,000 Rs. 25,000
Procedure for issuance of RuPay Contactless NCMC Debit card

 Branch to invoke menu ADCREQ
 Select Option "A" and enter the account number Select the card type "1"
 The record will be added successfully.
 After the record is successfully verified a virtual account will be opened by the
system which is referred to the wallet account.
Note: The offline wallet payment feature may be available in select cities and
at select merchant.

 For Contactless RuPay Classic Nation Common Mobility Card (NCMC) the virtual
account will be 16-digit number ending with "1 ".
For example, request for the card is entered in the account number
010110110000023 the wallet account will be 0101101100000231 wherein 1
being the identifier of the RuPay virtual account.
Please note that offline wallet payment feature may be available in select
cities and at select merchants in due course.
What is Bank of India's Contactless RuPay Classic Debit Card (NCMC)?

 The RuPay National Common Mobility Card is a Contactless Card. It also has
the feature of offline wallet. Therefore, it is called as Debit and Prepaid Card. A
single card that can be used for making all kinds of payments at transport,
parking grocery, toll and transit.
 Can be used as in Domestic ATMs/POS/E.com.
 Supports offline transaction multi utility card of its kind.
What are the key features of RuPay Contactless?

 Service Compartments: It comes with a unique feature that enables acquirer to
create and use their own space on the card, referred to as 'Service
Compartment'. There may be multiple independent service compartments on
the same card catering to different business implementations.
Acquirers/merchants may build their own specific programs such as transit,
loyalty, etc. on these areas as per their business agreements with the card
Issuer.
 Multi-level Wallets: qSPARC specification supports creation of wallets in the card
at two different levels - Global i.e. at card level and Local i.e. at service level.
Global balance is maintained by issuers and local balance is maintained by
acquirers/operators. While the local balance may be utilized for transactions
only at service provider specific outlets, the global balance may be utilized for
payments at all outlets where RuPay chip cards are accepted.
 Shorter transaction processing time - Transactions amounting less than
Rs.2000 can be approved offline without additional factor authentication.
 Interoperability
What is contact, contactless and dual interface?

 Contact Interface: A card based on contact interface can interact with
terminal only when the card is in contact (dipped or swiped) with the terminal.
 Contactless Interface: A card based on contactless interface can interact with
terminal when the card is in the range of the terminal. The card does not need
to be in contact with the terminal to initiate a transaction.
 Dual Interface: These cards support the properties of both the contact as well
as contactless interface. A transaction can be initiated by either interface
depending upon the capabilities of terminal.
What is contactless technology?

Contactless cards have an embedded antenna in the plastic so that when they are
used at a contactless reader, they securely transmit purchase information to and
from the contactless reader.
During a contactless transaction, the card never leaves the hands of the customer.
This greatly reduces the risk of card loss and fraud through counterfeit/skimming.

The contactless card has its own, unique, built-in, secret key, which is used to
generate a unique code for every contactless transaction, thus making it more
secure
Is there a limit for a contactless transaction amount?
Payment through the contactless mode is allowed for a limit of maximum
Rs.2000/- for a single transaction in India. For any transaction amount more than
Rs.2000/- the customer will be asked to provide your Debit Card PIN.
How to identify whether a Contactless payment at a merchant can be
made?
If the merchant terminal has a contactless mark then it is NFC enabled. The
contactless symbol is a small logo that has four waves or four curved lines, just
like a toppled Wi-Fi-symbol.
Can I use my Contactless Card at other merchants who are not enabled
for contactless payment acceptance as well?
Yes, for the merchants not enabled for contactless payment acceptance, the
customer can use this card as normal dip or swipe transaction.
Could I be debited twice if I have more than one contactless card?
No, as contactless readers will only communicate with one card at a time. If the
shop's reader finds more than one contactless card in your wallet or purse, the
customer will be asked to select one card to pay.
Can I unknowingly have made a purchase if I walk past the reader?
No. Your card has to be waved within 4cm of the card reader for than half a second
and the retailer must have first entered the amount for the customer to approve.
Terminals can only process one payment transaction at a time, therefore reducing
transaction errors.
Is there any difference in the process for ATM and Internet transactions
for Contactless Card?
There is no difference in transaction process for ATM or any Ecom transactions.
For ATM transactions you need to enter the PIN and for Ecom transactions you
need to enter your PIN and OTP (One Time Password).
Can I use my contactless debit card if the purchase amount is more than
Rs.2000?
Yes, based on the amount of transaction the customer will be asked input the
Debit Card PIN. If the transaction amount is greater than 2000 the customer will
be required to enter their Debit Card PIN, for transactions less than 2000, the
customer will not be required to enter any PIN, provided the terminal supports
Contactless Transactions.
Can the cardholder use it for contactless payment if the card is in his
wallet or purse?
As long as the card is within a 4 Cm range, and is not being blocked by any metal
object which may prohibit the signal, one can use the card even from his/her purse
or wallet.
What are the other Uses?
In addition to the offline wallet that can be utilized for making low value payments
for various segments like Transit, Smart Cities, Toll, Parking, the card can be used
for making contactless payments at NFC enabled terminals which are being
progressively deployed by various merchants, these cards would also work as

regular debit cards i.e. a customer can withdraw cash from ATM, shopping at
merchant outlets, online/ecommerce transactions etc.
How will the cardholder come to know if the transaction is successful?

Cardholder will receive a charge slip from the merchant, and also receive an
SMS/Emailer on your registered contact details.
What is the validity of this card?

The validity of this card is 6 years from the date of issuance
What if the antenna embedded in the card gets damaged before the expiry
of the card?
Bank uses certified and established processes for manufacturing the card through
the vendors ensuring a long life for the card. However, given the instance that the
any of the elements of the card gets damaged, card holder may contact the
branch, and he /she will get replacement of his/her card.
How to identify whether a Contactless payment at a merchant can be

made?
If the merchant terminal has a contactless mark then it is NFC enabled. The
contactless symbol is a small logo that has four waves or four curved lines,
just like a toppled Wi-Fi symbol.
What happens if the card is lost or stolen? What are the risks associated
with the card if the card is stolen or lost?
In case of lost or stolen contactless debit Card
1) A fraudster may use the contactless card for a maximum value up to
Rs.2000/¬per transaction at a merchant location where the contactless
payments are accepted, before the loss is reported and the card is blocked.
2) The fraudster may do a maximum of three contactless transactions for a
maximum value not exceeding Rs. 6,000/- in a day.
3) The number of fraudulent transactions in a day will be dependent on; how
many contactless transactions have already been done on the card before
losing the debit Card.
4) The amount available in the offline wallet can be used at where the facility
is available.
Is this a "Chip card"?

Yes. This is a form of chip card technology. Like chip cards, it uses an advanced
computer chip embedded in the card's plastic to perform secure transactions.
Contactless Debit Card is secured with a Contact & Contactless Chip along with
Magstripe and NFC antenna. The NFC antenna is used for Contactless transactions.
The Chip and the magstripe portion are used for purchases at POS and
transactions at A TM and where Contactless payments are not accepted.
What are the liabilities of the customer in case of lost or stolen card?
In case of a lost or stolen contactless debit card, a customer may immediately
contact the Bank Customer Care to report the loss of his/her Debit Card. The Bank
will not be liable for any financial loss arising out of the unauthorized use of the
card until such time the customer hotlists the card. The customer can call on
18004251112, 022- 40429123 for hot listing the debit card.

Prepaid Cards
Product features:
These cards are General Purpose Reloadable (GPR) Pre-Paid Cards and will be
valid in India. At present it is affiliated with Visa International. It is a non-
personalized PIN enabled cards which can be issued and reloadable in INR. It is
accepted at all ATMs, POS and E-com channels in India. Cash withdrawal is
permitted for the card within predefined limit.
The maximum limit for the card will be Rs 50,000.00. Cardholder can load his/her
card multiple times in a month but within the monthly cap of Rs 50,000.00.
BOI GENERAL PURPOSE RELOADABLE PREPAID CARD

(Enhanced EMV chip based Prepaid Visa/Mastercard Card)
Features 1. Prepaid Cards can be issued in INR for a max of Rs.50,000/-
2. BOI Prepaid Cards are reloadable in nature and maximum value shall not exceed
Rs.50,000 at any given point of time.
3. This card would be used on all payment channels, via, Cash Withdrawal, POS and
ecommerce transactions.
4. This card will be PIN based. The branch will issue instapin separately when the card is
issued.
5. The card is valid for seven years from the date of issuance.
6. First transaction not necessary on ATM.
Note: Branches are to ensure that Full KYC of the purchaser as well as ultimate user is to be
obtained and kept on record.
These prepaid payment instruments shall be loaded/reloaded only be debit to the bank
account, which are subject to full KYC.
FEE Issuance Charges – Rs. 50/- + GST per card

Reloading charges – Rs. 50/- + GST per card
Repin Charges – Rs. 10/- + GST
Monthly Limits – Rs. 50,000/-
ATM withdrawal fees – Rs.10/- + GST
ATM Balance Inquiry charges – Rs.5/- + GST
Transaction Rs. 15,000/- on ATM per day

Limits Rs. 35,000/- on POS and eCom per day
Re-loadable All Cards issued will be re-loadable. These cards can be loaded/reloaded through Bank
Cards Branches. These cards will be loaded/reloaded in INR. Load/Reload transaction will not
happen if the card is not activated, hot listed, cancelled or expired.
Related 1. Inquiries regarding balance available, expiry date etc. can be made at our Service
Queries: Provider’s 24x7 Helpdesk No. 022 40426006.
2. Hot listing of gift card can be done 24x7 on All India Toll-free No. 1800 22 00 88
or 022-40426005 or via email through branch to email id
HeadOffice.CPDprepaidcard@bankofindia.co.in
3. In case of any enquiry from branch , email id :
HeadOffice.CPDPrepaidcard@bankofindia.co.in

Youfirst Prepaid CARD
Features 1. Youfirst prepaid Cards can be issued in Indian Rupees for a max limit of
Rs 50000/-. (Monthly cap of RS.50000/-)
2. Youfirst Prepaid Cards can be issued by any branch
3. Youfirst prepaid card is affiliated with Visa International. It is a non-
personalized PIN enabled cards which can be issued and reloadable in
INR.
4. It is accepted at all ATMs, POS and E-com channels in India.
FEE Issuance Charges: Rs 50/- per card
Reloading Charges: Rs 50/- per card
Re-PIN Charges: Rs 10/-
Cash Cash withdrawal is permitted for the card within predefined limit
withdrawal
from ATM
PROCEDURE 1. Branch will take KYC documents of the customers/Prepaid card holders.
FOR ISSUING 2. Branches will provide the customers on-boarding and loading/reloading
CARD details in prescribed format to boi.cards@youfirst.co.in with a copy to
HeadOffice.CPDSettlement@bankofindia.co.in
3. The loading or reloading of card shall be done only on receipt of the
customer’s details and transfer of amount to the Escrow account.
4. Card activation and loading of amount will be done on T+1 basis after
receiving of amount in designated account.
Related For any query/inquiry mail to boi.cards@youfirst.co.in
Queries: Contact Number: 022-49062022; 022-49062024
In case of any enquiry from branch, email id:
BOI INTERNATIONAL TRAVEL CARD

Features:
1. Available in currency: U S Dollars.
2. The card is a VISA Card.
3. Minimum loading of USD 250.00
4. Valid up to the expiry period mentioned on the card.
5. Backed by extensive VISA Network. (It can be used in over one million ATMs
and over 14 million Visa Merchant outlets across the world, except India,
Nepal and Bhutan.
6. Competitive Exchange rates.
7. Savings on cross currency charges (when used in other than currency
denominated countries)
8. Dedicated 27x7 help line.
9. Convenience of reloading the card for repetitive usages during the validity
of the card.
10.Fee of Rs.100/- for re-issue of card in lieu of lost card
11.BOI Travel Card can be issued by AD Category branch only
Related Queries:
Customer can call Bank of India 24-hour Customer Care Center for free
customer support. From within India, call Toll Free: 1800 22 0088 Mumbai: 022-
40426006.
In case of any enquiry from branch, email id:-

BOI GIFT CARD
HOBC 107/150 of 30.10.2013 & HO BC 109/61 dated 21.6.15
(Magnetic Strip Based Prepaid Visa Card - valid in India, Nepal & Bhutan)
Features 1. Visa Card (Domestic Card)
2. Non reloadable
3. Gift Cards can be issued in Indian Rs for a min of Rs. 500/- thereafter
in multiples of Rs.1/- with a maximum amount up to Rs. 10,000/-
4. BOI Gift Cards can be issued by any branch
5. Gift Card is acceptable at all Visa Merchant Establishments in India,
Nepal and Bhutan and can be used any number of times up to the
amount loaded (Balance available in the Gift Card)
6. The card is valid for one year from the date of
issuance (branch has to ensure that the card which are issued
must have at least one-year validity period.)
7. E.com transactions not allowed.
8. Free balance inquiry with transaction receipt indicating the balance
online at - http://www.bankofindia.co.in/giftcardform
Note: The enhanced features (limit & validity) are not applicable to the Gift
Cards already issued. Only the Gift Cards issued henceforth would
have these enhanced features.
However, the stock of Gift Cards available at the Branches be
continued to be issued for maximum amount of Rs 10,000/- and with
validity period of one year from date of issuance.
FEE Rs 50/- + GST irrespective of the amount
Cash withdrawal from ATM - NOT PERMITTED
PROCEDURE 1. Obtain application form duly filled in and duly signed by the
FOR purchaser of Gift Card (In case the purchase is not our customer then
ISSUING additional documents as listed below)
CARD 2. Enter the application particulars online on the basis of maker / checker
concept. Each branch would be given two User ids for entering the
application data and for verification of the same.
3. “Giftcard” Menu in CBS for entering the request.
4. The 12- digit reference no. on the envelope along with the amount is
to be entered. At a time, 5 requests can be entered if the reference
nos. are in series.
5. The amount in the online Application Form should be the total amount
i.e. Amount of Gift Card+ Amt of Fees.
6. After verification of the Online Application form, the gift card will be
activated. The beneficiary can use the card from the next day.
Documents The branches, whilst issuing Gift Cards, should ensure to collect the
required following documents from the applicant:
1. Up to Rs. 1000/- any acceptable identity document of the applicant.
2. Up to Rs. 5000/- any “officially valid document’ defined under Rule
2(d) of the Prevention of Money Laundering Act as proof of identity.
3. Above Rs. 5000/- and up to Rs. 10,000/-, KYC requirements of RBI,
issued from time to time is to be followed and documents obtained
accordingly.
Related 1. For issuance of Gift Card in lieu of Lost Card a charge of Rs. 100/- will
Queries: be levied.
2. Inquiries regarding balance available, expiry date etc. can be made at our
Service Provider’s 24x7 Helpdesk No. 022 40426006.
3. Hot listing of gift card can be done 24x7 on All India Toll-free No. 1800
22 00 88 or 022-40426005 or via email through branch to email id
HeadOffice.CPDprepaidcard@bankofindia.co.in
4. In case of any enquiry from branch, email id:
HeadOffice.CPDPrepaidcard@bankofindia.co.in

Credit Card
Eligibility for Credit Card
Individuals Deposit Customers: BOI Staff/ Ex-Staff Corporate Cards:
Resident/NRI NRI’s, students, Senior No-disciplinary action Proprietorship/Partnersh
/ Person of Citizens, House wives initiated/pending/con ip firm/ Private Limited
foreign Origin and small templated against Company/ Public limited
residing in businessmen, traders. him/her Company/ registered
India on institutions/ Societies
employment Net Worth: Min 1 Crore
and regular Profit making any two
source of years out of preceding 3
income financial years.
Age-18 Yrs. and above
Not Eligible of Credit Card: Mobile Number not seeded in account, Minor, Accounts in
the name of Government and Quasi-Government, Insolvent persons/entities, Illiterate
persons (except special schemes), Accounts operation is frozen by Court / Government
Authorities / Bank, Minor.
Document Obtained for Issue Credit Card: Application form along with Photograph,
KYC, ITR, Salary Slip (Three Months), Balance Sheet (For Corporate Card only)
Processing for Issue Credit Card: All New/fresh Credit Card Request must be processed
through CAPS except Corporate credit card (Corporate Card Sanction in Hardcopy Form).
Document Kept in Branch Record: All document obtained for Processing and CIBIL
Report, Sanction Memorandum, Sanction Letter
All New/fresh Credit Card Request must be processed through CAPS except
Corporate credit card.
Add on Card
For Corporate Credit Card Other than corporate Credit Card
Add-on card shall be issued to Add-on Cards, maximum up to 5
Director/ Proprietor/ Partner close relatives, as defined below, subject to minimum
/Executives /Employees of age criteria of 18 years: Parents, Spouse, Major Child,
Company/Firm Brother, Sister
 Specimen signature and KYC of all the add-on card holders are obtained and held on
record
 Request for issuance of add-on card shall be made by the Principal Card holder in writing
duly signed, with specimen signature on Bank’s record.
Credit Card Limit
Retail Staff / ex-staff Corporate Against TDR/Swadhan
20% of Gross Maximum 20% Minimum Minimum Rs. 24,000/-
annual of Gross Annual Rs1, 00,000/-. Maximum: Rs.250 Crore
income and Income. Maximum 2% of (80% of TDR amount)
also can be Staff on Tangible Net Worth of (Minimum Margin 20%)
considered up Probation: the Corporate as per
to 40% on Officer: last audited Balance
merits of the Rs.30,000/- Sheet
case. Clerk:
Rs.20,000/-
For Against TDR/Swadhan: Combined limit of Principal
Deposit to be held in the name of the proposed Card Card and all Add-on card
holder. Minimum Term Deposit should be for 12 months. shall not exceed the limit of
Auto-renewal must be available i.e. Auto-renewal flag sanctioned for Principal Card
must be set to “Y”.

Cash Withdrawal Limit:
 15% of the Principal Card Limit subject to minimum Rs. 1,000/- and maximum Rs.15,
000/- per day.
 15% of the Add-on card Limit subject to minimum Rs. 1,000/- and maximum Rs.15,
000/- per day.
 Maximum Card Limit shall be 50% of the Spending/Credit Limit.
 For Corporate Credit Cards, both Primary and Add on, limit for cash advance shall be
Nil.
Revolving Credit
 Card holder may opt for Revolving Credit, request in writing or through Call Centre /
electronic mode.
 This is available for all card holders, including Staff/Ex-Staff.
 Minimum 10% shall be payable at the end of each Billing Cycle and the balance allowed
to be carried over with applicable charges/Interest.
Easy Pay Scheme (EMI)
Minimum Purchase – Rs.5000/-, Minimum EMI – 3, Maximum EMI - *3=6, 9, 12……. up to
36
Purchase at POS, e-commerce (Cash withdrawal Not Request through Call center or
Applicable) email
Total interest payable for the full tenure @ +GST @ Toll Free no: 1800220088
One-time processing fees shall be charged along with first Email -
EMI Dinesh.brid@worldline.com
Renewal of Credit Cards
 Credit Card shall be automatically renewed, at least two months prior to expiry date of
the card.
 Renewed Card shall be delivered to Card holder’s registered address
 Card Not Renewal – Hot listed Card, Dues / EMIs / Revolving Credit amount / applicable
charges is not recovered, Customer not initiated transactions validated through Credit
Card during the last six months at the time of processing of card renewal
Replacement Card
Branches can issue Duplicate/Replacement Card in lieu of lost/misused card, only after-
I. verification of signature and mandate of the customer and
II. Ensuring hotlisting of the Card.
Replacement card shall be issued by Head Office, Card Products Department to the
customer’s address or the Branch through approved Courier/Speed Post and inform the
customer through SMS

Credit Card Billing Related Information:
 Billing dates for credit cards is 15th of every month for all variants cards.
 Bill period of 16th to 15th. due date will be 5th/ 6th /7th /8th of next month following billing
period irrespective of number of days in a month.
 Any credit amount in card before 03 working days of due date will be adjusted in current
billing amount.
 Excess credit amount in credit card above sanctioned card limit will be refunded to
charge account on due date in next billing.
 Limit of the card will be blocked for Debit balance/over drawn in Charge Account and
for NPA / Dormant / Invalid / Freeze Charge Account.
 If sufficient Balance is not available on due date in the charge account then amount
will not be debited and full card limit will be blocked. Advise card holder to maintain
sufficient balance in charge account. System will try debit the overdue outstanding
amount on daily basis, whenever sufficient balance will be available in charge account.
It will get debited and card limit will be restored within 48 hours.
 If amount credit card dues not recovered on due date then amount will become overdue
in credit card. So, penalty and interest will be applicable as per credit card management
policy.
 Hard copy of the Bill, free of cost, shall be sent through ordinary mail to the card holders
registered address.
 E-statement shall be sent to the card holder to the registered mail id in a password
protected mode using the data, known to the card holder only
 Limit Enhancement request must be sent along with Memorandum Sanctioned
by competent Authority (for Staff – SZLCC, Delegation follow Credit Card
Management Policy)
 Replacement Card request send through Email after hot listing the same (If
lost/damage etc.)
Charge Account for credit card must be Pension Account for BOI Ex- Staff and
Salary Account for present serving Staff.
TYPES OF CREDIT CARDS
MASTER VISA RUPAY
1. India Card 3. Visa Gold International 5. SwaDhan RuPay
2. Platinum International 4. Platinum Privileged Card Platinum
6. RuPay Platinum
International
Annual Maintenance Charges
Type of card AMC AMC Replacement Type Photo card
Primar Add-
y on
India Card 0 0 500 Domestic Photo &Non-
photo
SwaDhan RuPay 0 0 0 Internation Non-photo
Platinum al
RuPay Platinum 1500 800 500 Internation Non-photo
al
Visa Gold Int. 1500 800 500 Internation Non-photo
al
Visa Privilege 1500 800 500 Internation Non-photo
(Platinum) al
Master Platinum Int. 1500 800 500 Internation Photo card
al

 AMC is Nil for Staff/ Ex Staff/ Senior Citizens
DELEGATION (For Non-Staff) ₹ In Lakhs
Scale I II III IV V VI VII CAC M.Com
Credit card 0.50 1.00 4 6 10 25 100 2500 Full
Limit Power
Against TDR 2.00 5.00 7.50 10.00 30.00 50.0 100 2500 Full
0 Power
DELEGATION (Staff/ex-staff): Delegation as per normal loan sanctions practice.
However, Ceiling limit for Officers and Clerks under probation or who are yet to be
confirmed shall be ₹30,000/- and ₹20,000/- respectively.
Toll Free Number: 1800220088
Hot listing of Credit Land Line Number: 022-40426006/6005
Card Mail Id: wl-in.boicreditcards@worldline.com
All types of enquiry Toll Free: -1800 220 088,
Land Line: (022) 40426005/40426006
Merchant Enrolment Land Line: (022)61312937
 Branch cannot delete Credit Card from Link a/c through CCMNT Menu and Branch
cannot close the account.
 For close the a/c, First Hotlist the credit Card and send email to
HeadOffice.CPDcreditcard@bankofindia.co.in
 Hot listing through a/c Number then all card will be hot listed including add on Card
 Once card is hot listed cannot be Revoke and to replace automatically
 AMC will be recovering after hotlisting also for this year.
Fail transaction of Credit Card on ATM and POS, it will auto revere within 15 days and
adjusted in Bill.
If not Reverse then email to as per card : HeadOffice.Visachargeback@bankofindia.co.in,
HeadOffice.Masterchargeback@bankofindia.co.in,
HeadOffice.RupayChargeback@bankofindia.co.in
Reversal/Cancellation of transaction like IRCTC, Flip Cart reverse when amount is
recived from then if not recived with in TAT then Send email to as per card
HeadOffice.Visachargeback@bankofindia.co.in,
HeadOffice.Masterchargeback@bankofindia.co.in,
HeadOffice.RupayChargeback@bankofindia.co.in
BOI Credit control Apps for Credit Card
Download the app “BOI Credit Control” on your smartphone from App Store (iOS) and Play
Store (Android).
For registration:
1. Post installation, click on Registration Tab
2. Enter 16-digit Active Primary Card Number & Expiry in MM/YY
3. Post this customer will receive an OTP on registered Mobile Number
4. Enter OTP on the application and create User ID, Password & 6-digit MPIN
5. Once validated, a notification will be sent on registered mobile number regarding
successful registration
Features: - MPIN - This is a 6-digit number which is used for
 Lock/Unlock card authorizing the changes done to any of the
 Green Pin parameter in the application. This is also used for
 Set Card Limits authorizing a device when existing customer
 Card Usage changes the handset and login with existing
 Keep Track credentials.
 Notification Please contact Helpdesk Support- 022-33865300
 Account Summary Extn:22445/22446/22447/22448
 User Profile Management

Credit Card Loyalty/Offer
BOI Star Rewards Programme - For every Rs. 100/- spent through a BOI Debit Cards
on ECOM and POS, the customer earns 2 Reward Point. All the Points including Bonus Points
will be valued at Rs.0.25.
Circular Reference:
(1) Credit Card Management Policy Dated 01-04-2019 w.e.f. 19-03-2019
(2) Master Circular: 111/44 Dated 19.06.2017; Modifications: 111/67 Dated: 29.07.2017
(3) Against TDR: 111/114 Dated 11.10.2017; Operational changes: 107/147 dated
24.10.2013
(4) Service Charges Circular: Dated 12.12.2018 w.e.f.15.01.2019
(5) RuPay Credit Card:113/23 Dated 30.04.2019
(6) EMI Scheme on POS:112/79 Dated08.08.2018
Debit Card
 For Issue of Debit Card account must be Active, KYC complied and Mobile Number
seeded.
Eligibility: Operation Instruction:
 saving accounts,  Jointly Operated account not eligible for
 Current accounts Debit Card.
 Overdraft accounts.  For “Either or Survivor” OR “Any one of Us”, Card
 Cash Credit account may be issued to all joint account holders (The
 Kisan Credit Card (KCC) a/c number of cards issued in an account will not
 Special Schemes of a/c exceed the number of joint account holders).
 For “Former or Survivor”, In such case Debit
Not Eligible: Card shall be issued to Former/First Account
 Mobile Number Not seeded in a/c holder only joint accounts.
(Except Special Scheme)  For partnership (as per the operating
 Company, Trust, Club, Societies, instructions mentioned in the partnership
Government and Quasi-Government agreement)
Departments  For HUF Operative Accounts to KARTA with the
 Cash Credit (except KCC & Mudra) consent of all co-parceners.
 Illiterate persons (except special  For mandate, letter of authority/Application for
schemes) issuance of Debit Card is executed by all the
account holders.
 For NRE self or Power of Attorney (POA) /
Mandate.
 Illiterate persons – Aadhar enabled/biometric
card only. Allowed other cards only if under
special schemes
 Self-operated Minor’s Account where age is 15 years and above, with limited facility
(BINGO Card)
PIN/INSTA PIN:
Forms Personalised Debit Card Scheme  All Personalized Card PIN
of should be issued by
Card Non ‐Personalised Branch through ATMCRA
Visa Master Rupay or Card holder cans
How to issue Debit Card Generate Green PIN
 At the time of a/c open. through BOI ATM only.
 Enter in ADCREQ Menu (Personalized and Non-Personalized  Ready kit/Welcome Kit
 Ready Kit (Non-Personalized “Name not Printed on Card) PIN already Kept in Kit
 Welcome Kit (Non-Personalized) need not to issue

Replacement/Re-issue of Card RE-PIN:
Enter in ATMCRA for Personalised or reissue (Before reissue delete Branch can Issue Re-PIN
existing Card) the ready kit for Non-Personalised. (Charges through ATMCRA (Charges
applicable) applicable)
Renewal of Card Green PIN
All cards which are going to expire are auto Renew in Advance and Card Holder can
send to customer address. Generate/Regenerate the
Card not Renew: PIN through BOI ATM only
 Transactions not initiated during the last six months of expiry (For Generation of PIN,
date of the card, closed account, Cards are hotlisted/inactive. Necessary OTP send to Card
 Account closed/dormant/NPA holder registered Mobile
Delivery of Card number only)
All Personalised card (New/Renewal/Replacement) send to Activation of PIN/Green
Customer Address which is mention in cumm through Register post PIN
as per TAT it should be delivered within 7 days. If it is return then  Green PIN activated
send to Branch. (SMS is sending for return card). immediately
Card Track  PIN issued by Branch
Personalised Card can be track through CARDTRAK Menu in Finacle activate 4 times a day
(Return Card Also) after 3 day enter in Finacle. (11.00am; 1.00 pm; 5.00
Activation of Card pm and 9.00 pm)
 Personalized card already activated branch can Issue PIN or Types of PIN/INSTA PIN
Card holder can generate Green PIN through BOI ATM only 1. Master Card pins start
 Non-Personalized Card (Ready Kit/ Welcome Kit) with 4. Eg. 4000 0000
activated with in same day (twice in day by 2.00 p.m. and 9.00 9008
p.m.) 2. Rupay Pins start with
7 eg. 7000 0000 1234
3. Visa 4052 BIN Card
PIN start with 5 eg:
5000 0000 5647
4. Visa all other
BINs(except 4052)
start with 6 eg: 6000
0000 9876
VISA
Product BIN Code Cash Limit POS Valid In Whom to issue
Name Limit
VISA Classic 459845 C 15000 25000 International All SB, CD & OD
EMV
Visa PayWave 457624 M 50000 100000 International Only diamond a/c
VISA EMV 457624 E 50000 100000 International Only diamond a/c
Platinum
VISA Business 483830 V 100000 250000 International Only CD (6 months
Debit satisfactory
operation)
Master
Master Debit 526495 D 15000 25000 Domestic only All SB, CD & OD
Master 517394 I 15000 25000 International All SB, CD & OD
Titanium
Master EMV 557589 P 50000 100000 International Only diamond a/c
Platinum
Master BINGO 519622 B 15000 25000 Domestic only SB (Age-15-25)
Welcome KIT 519622 W 15000 25000 Domestic only Only SB
Master 514840 S 100000 250000 International Only CD (6 months
Business Debit satisfactory
operation)

RuPay
RuPay Debit 606998 Y 15000 25000 Domestic only All SB, CD & OD
RuPay NCMC 607947 1 15000 25000 Domestic only All SB, CD & OD
RuPay 652165 F 50000 100000 International All SB, CD & OD
Platinum
RuPay 607713 U 15000 25000 Domestic only All SB, CD & OD
SANGANI
RuPay Star 504493 A 15000 25000 Domestic only All SB, CD & OD
Vidhya
RuPay 15000 25000 Domestic only JAN DHAN a/c
Jandhan 607927 J (Govt. Scheme)
RuPay Kisan 15000 25000 Domestic only KCC a/c (Govt.
607002 K Scheme)
Mudra Card 15000 25000 Domestic only Loan a/c (Govt.
607036 Z Scheme)
RuPay Punjab 15000 25000 Domestic only a/c arthia code
Arthia 607265 L (Govt. Scheme)
RuPay Punjab 15000 25000 Domestic only a/c arthia code
Farmer 607265 G (Govt. Scheme)
RuPay 15000 25000 Domestic only
Haryana a/c arthia code
Arthia 607530 O (Govt. Scheme)
RuPay Dhan 15000 25000 Domestic only KCC account (Govt.
Aadhar 508505 H Scheme)
RuPay PMKVY 15000 25000 Domestic only PMKVY a/c (Govt.
508885 N Scheme)
 Govt. Scheme Debit Card Send Directly without any request from A/c Holder to Customer
address
 Cash Limit is per day limit on BOI ATM, per transaction is Rs.15, 000.
 Cash Limit for Other ATM only Rs.15, 000/- per day and per transaction is Rs.10, 000.
 POS/e com transaction limit is per day limit, no per transaction Limit
 Maximum 3 transaction on ATM per day.
Debit Card Charges (excluding GST) PIN Charges (excluding
GST)
Card Type New Annual New INSTA Green Re
Fee  Non-Personalized (Ready Kit PIN PIN
Classic 150 150 Welcome kit Rs.150 for new Free Free 100
Platinum 200 200  Additional/Replacement  Staff / Ex- Staff are free
Business 300 250 Card Rs.150. from any type of charges
Contact Less 200 200 in Staff account only
If Balance not available then it will debit when balance available
ATM transaction Charges on Debit Card Surcharges on Debit Card (IRCTC & Fuel)
BOI ATM Other Charge  2.5 + GST (18%) on transaction
ATM amount.
Financial Unlimited Free 3- Free in 20  Minimum Rs.25 IRCTC and Rs.10
Metro +GST on Fuel
5- Free in International transaction Charges
other
Non-Financial Unlimited Free 3- Free in 8 Financi 2.5 % + Currency
Metro +GST al Conversion
5- Free in Non- @25 Per transaction
other Financi
al
Charges not Applicable

 Star Doctor Plus (OD) – Free including Annual Charges
 Star Benefit CD Plus - Individual and Proprietorship free for 1st year. Annual charges from 2nd
yr. onwards.
 Star Diamond Savings Account – Platinum Debit Card Free including Annual charges.
 Star Power Salary Account - SB - Free ATM International Debit Card for 1st year, Annual Charges
applicable from next year.
 BOI Saral Salary Account Scheme - Free Debit Card to all. Free Platinum Debit Card to
employees with minimum take home salary of Rs.25000/ p.m. or AQB in S/B Account is Rs.1
Lakh.
 Star Suraksha Savings Bank Plus - Free Debit Card for first year, Annual Charges applicable
from next year.
 Star Senior Citizen Savings Bank - Free Global Debit cum ATM Card. NIL Annual Charges from
next year.
 Star Mahila Savings Bank - Free Global Debit cum ATM Card-NIL Annual Charges from next
year.
 Star Gurukul Savings Bank - Free global Debit cum ATM Card to all. NIL Annual Charges from
next year.
 Free Platinum Card for higher salary earners - Annual charges applicable from next year.
 Bingo Cards - Nil Issuance charges for the first year. Maintenance charges from the 2nd year
Hot listing of Debit Card
Toll-free / Landline number E-mail Toll Fee No.- 1800 425 1112
for hot listing. (27x7) Land Line:(022) 40429123 / (022 )40429127
Manual: (044) 39113784 / (044) 71721112
Email: PSS.hotcard@fisglobal.com (27x7)
Informing the branch in Branch send an email to - PSS.Hotcard@fisglobal.com (27x7)
writing
 Delete from ADCREQ Menu Card is not Hot listed immediately, it will hotlist by DC in two times
in a day
 Hot listing through a/c Number then all card will be hot listed including add on Card
 Once card is hot listed cannot be Revoke and to replace automatically
 AMC will be recovering after hotlisting also for this year.
Debit Card Disputed/Failed Transaction and Reversal
 If transaction fails during transaction on ATM and POS, it will auto reverse within 48 hours,
not reverse then process to ATMREV and POSREV.
 ATM and POS Refund claims also initiated though our Bank Website
Master VISA RuPay  Customers are getting SMS of ATM and POS
ATM Reversal 5 days 5 days 5 days Reversal, in each level acceptance, rejection and
POS Reversal 45 15 15 Pre arbitration also.
 Pre-arbitration: Rejected claims disputes in first level are raised in within 15 days for Visa and
RuPay, 45 day for Master of rejection of disputes in First level.
Debit Card Transaction Remarks
CWDR- ATM withdrawal MEDR- POS or e com transaction
CWRR- ATM Reversal MERR - POS or e com reversal transaction
transaction
Debit Card Apps - “BOI Card Shield”
Download the app “BOI Card Shield” onto your smartphone from App Store (iOS) and Play
Store (Android).
For registration:
6. Click on New User and enter the card details. 6-digit security code will be generated and sent
on the registered mobile number with Bank. Set your username and password. Use a minimum
password length of 8 or more characters including lowercase and uppercase alphabetic
characters, numbers and symbol
7. You will receive a confirmation email for successful registration.
8. Login to your app using created Username and password.
Feature of “BOI Card  BOI CardShield enables you to add multiple debit cards by using
Shield”: option “Manage account”.

 Switch card on/off BOI Card Shield allows you to add your dependent’s card through
the Card. OTP authentication. You can set control preferences and limits for
 Control by location them as well and receive alerts. This will allow you to monitor and
 Set Spend Limits track your dependent’s spending behavior.
 Set Transaction  Please contact Helpdesk Support +912233865300 extn:
Types 22445/22446/22447/22448
 Set Merchant
Categories
 Instant transaction
alerts
 Other Self Service
Debit Card Loyalty/Offer
BOI Star Rewards Programme - For every Rs. 100/- spent through a BOI Debit Cards on ECOM
and POS, the customer earns 1 Reward Point., All the Points including Bonus Points will be valued
at Rs.0.25.
Points earned Awarding Points Point Value How to Redeem
1 Point per Rs. 0 to Rs. 5,000 in Months 25 paise Visit -
Rs.100 www.boistarrewardz.com
1.5 Point per Rs. 5001 to 10,000 in Months 25 paise Toll Free Number –
Rs. 100 Customer will be awarded 0.50 18002099299
Bonus Point only for the (Customer can redeem star
transaction value between Rs. Points 27x7 by: Visiting
5,001/- to Rs. 10,000/- and not website ang logging into
your personal BOI Star
for all the transactions ones he
Rewardz account OR
crosses the Rs.5001/- threshold
calling our toll-free
limit.
Number from 9 am to 9 pm
2 Point per Rs. Rs. 10,001/- and above, in a 25 paise (Monday to Saturday)
100 month. Download the apps from
It is clarified that the Customer play store – BOI star
will be awarded 1 Bonus Point Rewardz
only for the transaction value
Rs. 10,001/- above and not for
all the transactions ones he
crosses the Rs.10, 001/-
threshold limit.
Airport Lounge Access
 RuPay and Master Platinum Card Holder access the Airport Lounge 2(Two) times in a Quarter,
Charges @Rs. 2 for RuPay and @25 for Master.
 Airport Lounge list available on RuPay and Master Website.

Offers on Debit Card

 Various offer of BOI Debit card of Master, RuPay and VISA available on time to time
 Offer details updated on in Bank/Scheme Website, BOI Twitter account and sending through
SMS also.

Reference/ Circular:
 109/083, 08.07.2015, INTRODUCTION OF BUSINESS CARDS - DEBIT & CREDIT
 107/223, 06.03.2014, Launch of Debit Card, specially designed for women account
holders
 107/144, 21.10.2013, Debit Cards: Operational Changes (Automatic Unblocking of cards)
 107/083, 01.08.2013, Pins for Personalized Debit Cards Change in Delivery Procedure
 107/029 18.05.2013 Mandatory Use of Debit ATM Card by Staff Members
 107/022 03.05.2013 Bank of India -Debit Cards - Master Circular
 105/127 28.10.2011 Launch of "BOI Star Reward Programme" for Debit Card Holders
 104/091 03.11.2010 Introduction of BINGO Cards Specially designed Debit Card for the
Youth
 104/083 13.10.2010 Introduction of Bank of India's Platinum Debit-Cum-ATM Card
 104/073 08.09.2010 StarConnect Retail Internet Banking Services - Addition of Facility
Debit-cum-ATM card Hot list/ Pin Change/ Reset and Unblock.
 103/098 02.09.2009 Issuance of Instant-Pin for ATM cum Debit Card at the Branch
 CEADC: CPD: NK: 2019-20/40 dated 30.05.2019 - “BOI Card Shield”
 113/076 09.07.2019 HO: PD:SB:2019-20: 16 REPORT FOR DEBIT CARDS RETURNED TO
BRANCH
 113/005 01.04.2019 CPD:CM:2019-20/02 Policy/2019-20 /02 "Debit Card Management
Policy”
 Service Charges Circular: Dated 12.12.2018 w.e.f.15.01.2019
This is only for handy and quick reference based on latest circular/ Policy for
Internal used only
Debit Card Limits Summary
Charges for Credit Card – At a glance.

Interest free period.
 For Cash Advance – Nil.
 For Other Transactions - 21-51 days (applicable only on retail purchases
and if previous month's outstanding balance is paid in full).
Charges on Revolving Credit.

Secured Credit (SwaDhan).
I. 1.20% per month (15.40% p.a.) on daily balances.
II. In case of default service charges is 1.70% p.m. (22.45 % p.a)

Unsecured Credit (Other than SwaDhan).
I. 1.70% p.m. (22.45% p.a.) on daily balances.
II. In case of default service charges is 2.50% p.m. (34.50 % p.a).
Minimum Repayment Amount - 10% of Total Outstanding, if revolving credit is

opted + EMI (all EMI due) + other amount due.
Cash Advance Limit - For both Principal and Add-on card.

a. 50% of Spending Limit or available limit, whichever is lower.
b. Cash withdrawal up to 40% of spending limit of Primary card and up to 20%
on Add-on Card.
c. Cash withdrawal per day Rs.50,000/- for Platinum card and Rs.15,000/- for
rest variant.
Cash Advance Charges.

a. BOI ATM - 2% (minimum Rs. 50/-) for each transaction.
b. Other ATM - 2.5% (minimum Rs. 75/-) for each transaction.
c. Overseas ATM - 2.5% (minimum Rs. 125/-) for each transaction and
Currency Conversion Charges, presently 2%.
d. Interest on dues / overdue applicable.
Star Easy Pay (EMI).

a. Processing Charges - One-Time i.e.1.00% of the Purchase (Existing
2.20%).
b. Finance Charge.
I. 1.25 % of the Purchase (existing 1.50% p.m. on original amount).
II. In case of default service charges is 2.50% p.m. (34.50 % p.a).
III. Prepayment Charges – Nil.
Balance Enquiry Charges at ATM.

a. BOI ATM - Nil.
b. Other Bank ATM in India - Rs. 20/-.
c. Other Bank ATM Abroad - Rs. 25/-.
Payment of charges (Cash / Cheque / Online / NEFT / RTGS) – NIL.
Charges on over limit account (Purchase / Cash).

a. Secured Credit (SwaDhan) - 1.70% p.m. (22.45 % p.a) on daily balances.
b. Unsecured Credit (Other than SwaDhan) - 2.50% p.m. (34.50 % p.a) on
daily balances.
Usage Over Spending Limit - Rs. 100/- per occasion.
 Outstation Cheque Processing Charge – As per prevailing rates.
 Payment Return Charges - Rs. 100/ - per instrument.
 PIN replacement Charges - Rs. 50/- (per occasion).
 Duplicate Bill Charges - Rs. 50/- per quarter (after 12 months).
 Retrieval of Charge Slip - Actual or Rs. 100/- whichever is higher.
 Balance Transfer Processing Charges – NIL.
 Fuel Transaction Surcharge - 2.5% of transaction amount (minimum Rs.
10/-) or
 Actual charges claimed by the Acquirer bank, whichever is higher.

 Railway Ticket Purchase or Cancellation Fee - Rs. 30/- charged by Railways
+ 2.5% (Min. Rs. 25/-) or Actual charges claimed by Railways / acquirer
bank.
 Foreign Currency Transactions - 2% Currency Conversion Charges for all
currencies, (excluding INR, being home currency). For all types of
transaction, including cash withdrawal and transactions through POS / e-
commerce / online.
Goods and Services Tax (GST).

a. Applicable on all Fees, Interest and other Charges.
b. The applicable GST would be dependent on place of provision and place of
supply.
c. If POP and POS are in the same state then applicable GST would be CGST
and SGST/UTGST else, IGST.
d. GST for fee and Charges / Interest transactions billed on statement date
will reflect in next month statement.
e. GST levied will not be reversed on any dispute on Fee and Charges /
interest.

Escalation Matrix
Nature of Issue E-MAIL ID Contact No.
Hot listing of Debit Card PSS.Hotcard@fisglobal.com (27x7) Toll Fee No.-
(For Branch/AMO/Zone/NBG as 1800 425 1112
well as Customer)  Compulsory mention a/c No. or Card No. Land Line:(022)
 If only account number is Provided then
40429123/ (022)
all card will be hot listed
40429127
 If only Card No. is provided then only
Particular Card will be hot listed Manual: (044)
39113784/ (044)
71721112
Bulk Hot listing of Debit Card Headoffice.CPDdebitcard@bankofindia.co.in
 Send mail in Proper format i.e. Notepad
file (Kept in KRISH folder)
Debit Card not active/activated,
Card invalid, not working on switch.support@fisglobal.com 9833996639
POS or online, OTP not received,  (For Branch/AMO/Zone/NBG use only)
Green PIN not Generate
Debit Card not Received (New Headoffice.CPDdebitcard@bankofindia.co.in 022-61312940
/Renewal/ Replacement)  Before email please Check through 022-61312939
“CARDTRAK” Menu in Finacle
Request for PINS & Ready Kits Headoffice.CPDdebitcard@bankofindia.co.in 022-61312940 & 39
Debit Card Apps (BOI Card HeadOffice.CPDCardShield@bankofindia.co.i
shield) related Issue n 022-61312946
Poonam.Kumari7@bankofindia.co.in
Insurance claims for Fraudulent
transactions through Debit Card HeadOffice.CPDInsurance@bankofindia.co.i 022-61312937
(Not for UPI and Internet n
Banking)
Card active but not reflecting in Kovendan.V@bankofindia.co.in
CARDSTAT Menu (Finacle) RAMYADEVIS.S@bankofindia.co.in
Gautam.Kumar5@bankofindia.co.in
ATM failed transaction, ATMREV nfs.isg@bankofindia.co.in 022-61319474 (Offus)
or any transaction refund issue HO.ATMcell@bankofindia.co.in 022-61319475 (Onus)
POS Failed transaction, POSREV POS.ISG@bankofindia.co.in 022-61319480
or transaction refund issue HO.ATMcell@bankofindia.co.in 022-61319481
pertaining to Debit Card
Finacle related issue on Debit Helpdesk.Escalation@bankofindia.co.in
card (Unable to add/ verify /  Also lodge a call on Service IP-11111
cancel and add in Stock etc) Manager
Any UPI transaction related Support.MobileApps@bankofindia.co.in

issue like BHIM / GPAY/ 022-67447025
PhonePay etc / BUPI TXN
SMS not received SMS.Alert@bankofindia.co.in 022-61312986
Card not display on Internet HO.InternetBanking@bankofindia.co.in 022-61319487/88
Banking or transaction related Boi.Starconnect@bankofindia.co.in 022-61319489/90
Issue BDIPG /STUBP TXN
Request for Welcome kit Headoffice.CBOD@bankofindia.co.in 022-61312976
Debit Card Insurance rupay@newindia.co.in 022-26591702
(Accidental) claim (RuPay only) Headoffice.Financialinclusion@bankofindia.co.in 022-66684658
Loyalty Reward points for Debit membersupport@boistarrewardz.com 1800 209 9299
and Credit Card nilambari.toke@loylty.com 022- 61312959
 Any query related to Debit card mail to Headoffice.CPDdebitcard@bankofindia.co.in -022-
61313940
 Always mark a copy to Headoffice.CPDdebitcard@bankofindia.co.in in each and every mail
request to vendor.

RuPay Chargeback
In case of any fraudulent ATM/POS/ECOM transactions (Debit/Credit Cards),
where customer claims that he/she has not done the transaction, kindly follow the
below mentioned process:
STEP-1: Hotlist the Card immediately.
For Debit Cards: Mail to pss.hotcard@fisglobal.com (Toll Free No.
18004251112, 022-40429123/7)
For Credit Cards: Mail to -
headoffice.cpdcreditcard@bankofindia.co.in;
CC to wl-in.boicreditcards@worldline.com
(Toll Free No. 022-40426005/6; 1800220088)
Step-2: Ask the customer to lodge the Police Complaint (if disputed amount is less
than Rs.50000/-) and FIR (if disputed amount is more than Rs.50000/-) It
may raise to Rs. 1,00,000/- next year.
NOTE: Police Complaint/FIR is compulsory only in case customer is filing
for Insurance (given in Step-4). No police Complaint/FIR is required for
lodging Chargeback (given in Step-3)
STEP-3: Chargeback/Reversal Request: To be lodged maximum within 60 days
from the date of transaction.
• For POS/ECOM Transactions (Finacle Narration starting with MEDR) –
Upload request in Finacle menu POSREV or customer can lodge the
same through Internet Banking. Please send mail for MEDR txn to -
POS.ISG@bankofindia.co.in and CC to -
ho.atmcell@bankofindia.co.in along with reversal Ref. No.
• For ATM Transactions (Finacle Narration starting with CWDR) - Upload
request in Finacle menu ATMREV or customer can lodge the same
through Internet Banking. Please send mail for CWDR txn to -
nfs.isg@bankofindia.co.in and CC to -
ho.atmcell@bankofindia.co.in along with reversal Ref. No.
• For Billdesk Transactions (Finacle Narration starting with
BDIPG/STUBP) – Mail all details of the transaction to -
Boi.Starconnect@bankofindia.co.in in below format.
Sr. Date of BDIPG/STUBP ref. Amount A/c no.
No. Transaction No. (in Full) (Rs.)
STEP-4: Insurance Claim:

• All thirteen documents (2 copies) to be submitted in one go for onward
submission to Insurance Company (attached herewith as insformat.rar). All
documents should be properly checked, verified and signed with bank seal.
Please refer the attached excel (Insurance_claim_checklist.xlsx) for further
clarification about the documents to be submitted. (As per email shared
with all zones/branches)
• All the documents need to be shared (only hard copy) at below mentioned
address within 180 days from the date of disputed transaction.
• In case of any clarifications: contact 022-61312942 or send mail
HeadOffice.Rupaychargeback@bankofindia.co.in
Address:
Bank of India, Head Office,
Card Product department – RuPay Chargeback,
First Floor, Star House 2, C-5, G-Block, Bandra Kurla Complex,
Bandra (E), Mumbai – 400051

Master Chargeback
ISSUER
NATURE OF RESOLUTION PROCEDURE AND RELATED TAT

QUERY/PROCESS
Chargeback for Chargeback to be lodged within 120 days from date of
disputed transaction transaction.
The e-mail or document provided for raising chargeback
should clearly mention the details related to transaction for
which chargeback is to be raised.
Representment time For Cash transactions after lodgment of charge back TAT is
8+2 days and for POS transactions TAT is 45+2 days.
Rejected Chargeback In case of rejection of chargeback, supporting documents are
provided to branches and/or customers. If requires, the Bank
can apply for pre-arbitration.
Pre arbitration /Pre After rejection of representment, pre
compliance arbitration can be raised within 30 days or time expired for
representment which is earlier.
Retrieval request for Retrieval request can be raised within 120 days from date of
copy for disputed transaction.
transaction
Arbitration / After rejection of Pre arbitration, Arbitration can be raised
compliance within 45 days or time expired for representment which is
earlier.
Good faith After expiry of chargeback time good faith request can be
raised but refund of disputed amount depend on the mercy of
acquirer bank.
ACQUIRER
Chargeback against When the Bank receive the chargeback against the Bank’s
Merchant for disputed merchant, the disputed amount will be debited from the
transaction merchant’s account on the same day/T+1 day.
The same is informed to branch and merchant via e-mail and
also ask for necessary document so that we can represent the
same.
Representment Once the Bank gets the required correct documents, the Bank
will credit the disputed amount back to the merchant’
account.
If merchant has not sent any document then after the expiry
of the 45 days, Bank will not be liable to refund the disputed
amount debited.
For lodgment of chargeback or any other query related to Master Credit Card,
below is the e-mail-id: Master chargeback Department
HeadOffice.Masterchargeback@bankofindia.co.in
Contact Number: 022-6132934

Visa Chargeback
Issuing Chargeback:
For all the Visa credit card complaints received through Emails/Call center/By
phone, process the chargeback for the reversal of the amount. Below are the
stages of chargeback with Time Limit.
Process Name Visa

Timelines for acquirer processing of all India domestic transaction
Transaction maximum up to 5 calendar days from date of transaction. Exception-
Processing Time Cruise liner, Lodging merchant (Hotel), Vehicle rental merchant for
Limits & Dates India domestic transaction- 7 calendar days.
Retrieval Request
for Copy for Retrieval request can be raised within 60 days from date of transaction
Disputed as per applicable reason code
Transaction
Chargeback for
Chargeback request can be raised within 60 days from date of
Disputed
transaction as per applicable reason code
Transaction
FOR Cash transactions after Lodgment of charge back TAT is 8

Re-presentment
days and for POS & E COM transactions TAT is 15 days
Time
After rejection of re-presentment, pre-arbitration can be raised
Pre-arbitration / within 10-15 days or time expired for re-presentment which is
Pre-compliance earlier.
After rejection of Pre-arbitration, Arbitration can be raised
Arbitration / within 5 days or time expired for re-presentment which is
Compliance earlier
After expiry of chargeback time good faith request can be
raised but refund of disputed amount on the mercy of acquirer
Good faith bank
Acquiring Chargeback:
The chargeback received against our merchants will be processed under acquiring
chargeback. Merchant Account will be debited once we receive the chargeback.
We follow up with Merchant/Branch for the supporting documents. Once we
receive documents from merchant and our chargeback will be accepted by the
Issuing bank, we will credit back the amount to merchant. Time Limits for the re-
presentment will be same as issuing as chargeback.
Escalation: HeadOffice.VisaChargeback@bankofindia.co.in
**************************

Forwarding letter
Date:
THE NEW INDIA ASSURANCE COMPANY LIMTED
Centralized Claim Hub, MRO –I
12th Floor, New India Centre, 17/A,

Cooperage Road, Mumbai – 400 039
Dear Sir,
Subject: INSURANCE CLAIM – BANK OF INDIA DEBIT/CREDIT CARD
This is with reference to the insurance claim of Mr. / Ms. (name). We hereby
confirm that the customer held an account in Bank of India and held a valid Bank
of India Debit/Credit Card at the time of the occurrence of the event for which the
claim is being made. We certify that the details of the customer as per the records
maintained by Bank of India are as follows:
Claim filed for I Lost Card Liability
II Purchase Protection
III Personal Accident
Name of the Customer
Date of Occurrence
Account Type and Number
Debit/Credit Card Number
Debit/Credit Card Valid From – Valid To
Policy No (to be filled as per advise
from Central Office)
First transaction Date of the
Debit/Credit Card
Residential Address
Date of Birth
We also confirm that the following documents (duly attested by a notary public,
gazetted officer or Bank of India, Branch Head) have been submitted as per the
requirements of The New India Assurance Company Ltd.:
(Please tick the documents enclosed)
I Lost Card Liability

 Completed Claim Form (English / Hindi)
 Attested copy of FIR / General Complaint to Police (If in regional language then
submit English / Hindi translation)
 Bank Statement (indicating forged transaction)
 Attested Copy of Final Report from Police (If in regional language then submit
English / Hindi translation)
 Certification from Bank of India certifying the Date & Time of blocking of the
Debit/Credit Card after intimation from Card Holder regarding the loss of the
same.

 Attested Identity proof of Claimant
II Counterfeit/Skimming card Liability

 Attested copy of FIR / General Complaint to Police (If in regional language then
submit English / Hindi translation)
 Bank Statement (indicating forged transaction)
 Attested Copy of Final Report from Police (If in regional language then submit
English / Hindi translation)
 Certification from Bank of India certifying the Date & Time of blocking of the
Debit/Credit Card after intimation from Card Holder regarding the loss of the
same.
 Attested Identity proof of claimant
III Purchase Protection
 Completed Burglary/ Fire Claim Form (English / Hindi)
 Attested copy of FIR / General Complaint / CR to Police
 Photocopy of Debit/Credit Card
 Proof of purchase (bill, charge slip, bank statement)
 Bank Statement (indicating transaction)
 Attested Copy of Final Report from Police
 Attested copy of fire brigade report in case of fire
 Advance letter of subrogation on a Rs. 20/- stamp paper in case of burglary /
theft
 Attested Identity Proof of claimant
III Personal Accident

 Attested copy of FIR to Police
 Attested copy of Panchnama / Inquest Panchnama
 Photocopy of Debit/Credit Card
 Attested copy of Post Mortem Report
 Attested copy of Statement of Witness, if any lodged with police authorities
 Original Death Certificate
 Burial Certificate (wherever applicable)
 Attested copy of Drivers License (In case of a motor / vehicular accident where
the deceased was driving)
Thanking you,
Yours Sincerely,
Branch Head
Branch Name
**************************

Claim Form
THE NEW INDIA ASSURANCE COMPANY LIMTED

CLAIMS-HUB, MUMBAI REGIONAL OFFICE –I
12th Floor, New India Centre, 17/A, Cooperage Road, Mumbai – 400 039.
Ph: 022-24620377, Fax: 022-22045100, email: ch11@newindia.co.in
Claim Form For All Risk Insurance
Notification of Physical Loss or Damage

(The issue of this form is not to be taken as an Admission of Liability)
PLEASE ANSWER ALL QUESTIONS FULLY

S. Details of Insured
N.
1 Name
2 Bank of India Debit

Card/Credit Card Number
3 Bank of India Account
number
4 Occupation
5 Address for
Correspondence
6 Contact no./ Email ID
7 Nature of loss/damage
(Cash/ Purchase)
8 Place & address where the
loss took place.
9 Date and time when loss
was first discovered
10 Is SMS facility activated
11 Date and time of SMS
received to lost amount
11 Estimated value of
loss/damage
12 Date & time of filing FIR
13 Name & address of Police
station
14 Have you sustained loss of
the same nature state
debit/credit card number
15 Any additional information
relevant to processing of
claim
16 Type of claim Lost Card /Skimming Cases

I/We hereby agree, affirm and declare that:
i. The statements/information given/stated by me/us in this claim form is

true, correct and complete.
ii. This is to certify that Mr.

__________________________________________ has a saving
/current/ other account
No.______________________________________ and possesses
debit/Credit/Other card no. ___________________________________
on which we have reported Lost card / counterfeit liability of Rs.
_____________ , we have verified the detail and found correct in all
respect and no claim is made of the same to another Institution/company.
iii. No material information which is relevant to the processing of the claim or

which in any manner has a bearing on the claim has been withheld or not
disclosed.
iv. If I/We have given/made any false or fraudulent statement/information,

or suppressed or concealed or in any manner failed to disclose material
information, the policy shall be void and that I/We shall not be entitled to
all/any rights to recover there under in respect of any or all claims, past,
present or future.
v. The receipt of this claim form/other supporting related documents does

not constitute or be deemed to constitute an agreement by the company
of the claim and the company reserves the right to process or reject or
require further/additional information in respect of the claim.
Signature of Bank of India with seal Signature of

Claimant
Branch Head/ Operation Head Name in full:-
Name in full: Address:-

S. R. No.-
Branch Name:
Designation:
**************************

Claim Voucher
THE NEW INDIA ASSURANCE COMPANY LTD
CLAIM VOUCHER
Received from THE NEW INDIA ASSURANCE COMPANY LTD / (Bank of India) through its
Policy Issuing Office (/ Bank of India Branch) the sum of Rs. __________ (Rupees
_______________ Only) in full and final settlement of my/our claim in respect of the
event dated __/__/____involving (description of event)_______________________
_____________________________________ lodged for Mr. / Ms.
_____________________ who had been using Credit/Debit card
No.__________________________ with Bank of India at
(Branch)__________________________ and was issued Credit/Debit Card No.
_________________
I / We agree that this payment absolves THE NEW INDIA ASSURANCE COMPANY LTD and
Bank of India from any future liability whether now or hereafter in respect of this even
Special Contingency Insurance Policy No. _____________________ and Serial
No.____________________
Name and Address of the Assignee: Please

affix a
revenu
Signature of the Assignee (in full)

Witnessed by:
Name Address Signature
1.
2.
Copy to be forwarded to AVP – Cards, Bank of India, Retail Banking Department, Central
Office
Ref: Policy No ______________________
S. No ______________________
**************************

LETTER OF SUBROGATION
(TO BE EXECUTED BY THE INSURED

AND THE WITNESS WITH THEIR SIGNATURE)
LETTER OF SUBROGATION
THE NEW INDIA ASSURANCE CO LTD

BO/DO
Centralized Claim Hub, MRO-I
12th Floor, New India Centre, 17/A
Cooperge Road,Mumbai-400039.
Dear Sirs,
Re : Cardholder’s Name._____________________
Debit / Credit card no.___________________
Account No. ___________________________
Interest Covered _______________________
We hereby acknowledge receipt of a sum of Rs.__________ (RUPEES

_____________________________) which you have paid to us and which we have
accepted in full & final settlement of our claim in respect of a claim preferred by us for loss
of property occurred due to ________________on _____________.
We further declared and agreed that by virtue of the aforesaid payment the underwriter
concerned became subrogated to all our rights, interest and remedies in respect of the
aforesaid subject matter in accordance with the laws governing the contract of insurance.
We also declare and agreed that the said New India Assurance Co Ltd. shall have
unequivocal rights and authority to use our name to the extent as may be necessary to
effectively exercise all or any such rights and or remedies that we will furnish them with
any assistance they may reasonable require of us when exercising such rights and whilst
on their part they will indemnify us against liability for costs, charges, expenses arising
out of and in connection with any proceedings which they may initiate in our name in
exercise of such rights and remedies.
DATED THIS _________DAY OF _________20___________AT ___________.
SIGNATURE OF THE INSURED (Bank of India):

NAME:
ADDRESS:
WITNESSED BY Assignee Signature

SIGNATURE Name
NAME Address
ADDRESS
**************************

Branch Investigation Report
Name of Claimant-
Card – Credit card / Debit card
Card no.-
Account no (in case of debit card)-
Type of card- Normal / Platinum

Maximum limit of insurance provided- upto one lac for Normal card / upto four
lac for Platinum card
Claimed amount on the card-
Date of fraud-
Place of fraud-
Date and time of request of hot listing-
Date and time of hot listing
Date of filing Police complain / FIR-
Date of filing Chargeback
Date of rejection of chargeback
Brief history of SMS delivered- Yes / No
TXN TXN SMS Registered Amount TXN details

DATE TIME Delivery Mobile no Debited (CWDR/MEDR/BDIPG)
Status
Any other information helpful in processing the claim

Brief detail of Incident of fraud-
Here I confirm that there is no involvement of any bank official/staff in this

fraudulent act and this is done by fully cloned card.
Name
Designation
Emp. Code- Signature with seal of Bank official
Date:
**************************

SMS Delivery Report
BANK OF INDIA
BRANCH -
SMS DELIVERY REPORT
TXN TXN CARD CBS A/C REGISTERED TXN TXN DETAILS DELIVERY
DATE TIME NO NO MOBILE NO AT THE AMOUNT STATUS
TIME OF TXN CWDR/ MEDR/
BDIPG YES/NO
**************************
Check List of Document
SR. CHECK LIST DOCUMENT FOR BRANCH FOR INSURANCE

YES NO
NO. CLAIM
1 INSURANCE CLAIM FORWARDING LETTER BY BRANCH
2 CLAIM FORM
3 CLAIM VOUCHER
4 LETTER OF SUBROGATION
5 INVESTIGATION REPORT BY BRANCH
6 SMS DELIVERY REPORT
7 INITIAL INTIMATION BY CARD HOLDER
8 POLICE COMPLAIN / FIR COPY / FINAL REPORT
9 CHARGE BACK REJECTION REPORT
10 HOTLISTING REPORT OF CARD
11 PHOTO COPY OF HOTLISTED CARD
12 ID PROOF OF CARD HOLDER
13 ACCOUNT STATEMENT
ALL ABOVE-MENTIONED FORMS ARE TO BE FILLED PROPERLY AND TO BE SIGNED
BY CUSTOMERS AS WELL AS BRANCH OFFICIAL WITH BRANCH SEAL WHERE EVER
REQUIRED
We attached herewith all claim forms and check list for record and needful action.
Please be guided by Branch circular No. 108/34 dated 03-05-2014 for dealing
with disputed
Card transactions.
*In case of wrongful withdrawal reported by customer, branch to follow
procedure as under*
>Hotlist the card on pss.hotcard@fisglobal.com

>Lodge the charge back claim in Finacle system (Menu- ATMREV for CWDR &
POSREV for MEDR and send mail to Internet banking dept. / star connect dept.
for BDIPG transactions)
>Wait for cooling period of 7 days for cash and 15 days for other than cash
transaction.
>The process of the activity can be obtained from HO ATM CELL / Star connect
dept.
>If chargeback is rejected, lodge insurance claim.
**For lodgment of insurance claim, Branch should submit the attached

documents.
Please ensure the Forms are filled in completely and get the signatures at proper
space on the forms
Claim form for all risk insurance --- to be signed by cardholder as well as by Branch
Head with seal.
For All insurance related issue contact to – 022-61312937

Email Id: HeadOffice.CPDInsurance@bankofindia.co.in
For chargeback Rejection Report of Debit card (CWDR / MEDR) –

HO ATM Cell
Contact no- 022-61319468, 9488, 9461, and 9487
Email Id: HO.ATMCell@bankofindia.co.in
For BDIPG txn – Internet banking dept.
Contact No - 022-61312988, 2990, 2991, 7501
Email Id: HO.InternetBanking@bankofindia.co.in
Chargeback rejection report of credit card (Master card)-022-61312934

Email Id: HeadOffice.Masterchargeback@bankofindia.co.in
Charge back rejection report of credit card (Visa card) – 022-61312935

Email ID: HeadOffice.Visachargeback@bankofindia.co.in
Charge back rejection report of credit card (RuPay card) – 022-61312942

Email ID: HeadOffice.rupaychargeback@bankofindia.co.in
Address where insurance claim document to be sent:

BOI Head office, Card product dept., Star House -2, 1st floor, C-4, G-Block,
Bandra Kurla complex, Bandra (E), Mumbai-400051.


Supporting Checklist
INSURANCE CLAIM DOCUMENT

CHECKLIST-
SR. NO.- RECEIVED DATE-
NAME OF CLAIMAINT-
CARD NO
DATE & NATURE OF TRANSACTIONS
/LOSS (MEDR/CWDR/BDIPG)
CLAIM AMOUNT (RS)
BRANCH NAME / ZONE
LINK SB A/C NO-
Additional Information about the
DOCUMENT REQUIRED
AVAILABLE Documents (for Branch clarification)
1. INSURANCE CLAIM FORWARDING
LETTER YES / NO Contained in attachment
2. CLAIM FORM YES / NO Contained in attachment
3. CLAIM VOUCHER YES / NO Contained in attachment
4. LETTER OF SUBROGATION YES / NO Contained in attachment
5. INVESTIGATION REPORT BY BRANCH YES / NO Contained in attachment
6. SMS DELIVERY REPORT YES / NO Contained in attachment
7. INITIAL INTIMATION BY CARD HOLDER YES / NO Written request from Customer to branch
To be received from Customer police
8. POLICE COMPLAIN / FIR COPY / FINAL complain upto Rs 50000/-, FIR with police
REPORT above 50000/- Police final report above one
YES / NO lac required.
FOR CWDR / MEDR TXN - BY HO ATM CELL,
9. CHARGE BACK REJECTION REPORT FOR BDIPG TXN- BY HO INTERNET
YES / NO BANKING DEPT.
10. HOTLISTING REPORT OF CARD Sent Mail for debit card to -

YES / NO PSS.Hotcard@fisglobal.com
If Card is lost, only branch confirmation in
11 .PHOTO COPY OF HOTLISTED CARD
YES / NO investigation report will do.
12. ID PROOF OF CARD HOLDER YES / NO To be obtained from Card Holder
13. ACCOUNT STATEMENT YES / NO From CBS / Finacle.
Remarks, if any
Address where insurance claim document to be sent:

BOI Head office, Card product dept., Star House -2, 1st floor
C-4, G-Block, Bandra Kurla complex, Bandra (E), Mumbai-400051
ATM/POS Online Refund - URLs

ATM Refund Claim
https://www.bankofindia.co.in/forms/AtmFailedTransaction
POS Refund Claim

https://www.bankofindia.co.in/forms/OnlinePOSTransaction
Online Bill Payments Refund Redressal

https://www.bankofindia.co.in/forms/RefundRedressal

Internet Banking – Key Features
Retail Internet Banking Corporate Internet Banking

Constitution  Individuals  Non-individuals
 HUF  Partnership
 Sole Proprietor  Trust
 Private Ltd Companies
 Public Ltd Companies
 Society
 Body Corporate
Trade Finance  No  Yes
Facility
Retail Internet Banking Transaction Limits

Transaction Type Default Transaction Maximum Daily
Limit (Per transaction Transaction Limit in
max. limit) in Rupees Rupees
Tax Payments / Custom 25.00 lacs No limit
NEFT 5.00 lacs 15.00 lacs

RTGS 15.00 lacs 25.00 lacs
Third Party Fund Transfer (within 5.00 lacs 15.00 lacs
Bank of India account)
IMPS payments 2.00 lacs 15.00 lacs
Utility Bill Payments 5.00 lacs 5.00 lacs
Self-transfers 15.00 lacs No limit
Corporate Internet Banking Transaction Limits

Transaction Type Default Transaction Limit (Per transaction
max. limit) in Rupees
Tax Payments 5 Crores
NEFT/RTGS 25.00 lacs
Third Party Fund Transfer 25.00 lacs

(within Bank of India
account)
Utility Bill Payments 10.00 lacs
Self-transfers 10.00 lacs
Bulk Upload RTGS / NEFT through Corporate Net Banking.

Corporate Internet Banking user can upload a file in pre-defined format and
processes the transaction in bulk for RTGS / NEFT. This facility will be extended to
all corporate internet banking users presently having the upload facility means
Profile ‘G’ has to be extended.

The file may contain both types of transactions RTGS and NEFT in a single upload
file, the system will identify the type of transactions (NEFT or RTGS) and
accordingly the same will be sent to the related gateways.
The data of the file will be validated for correctness of the IFSC and debit account.
The IFSC code will be verified with the details of IFSC code available in Internet
Banking database.
The facility will also support multilevel workflow i.e. multiple approvals can also
be defined for RTGS / NEFT Bulk Upload.
Using this module, the customer can initiate RTGS or NEFT payment without
registering beneficiaries. This module also saves the customer from the hassle of
managing hundreds of beneficiaries.
If the user is having multiple approvals for file upload facility, the same fund
transfer rule will be replicated for RTGS / NEFT file upload by default and hence
the existing users having file upload facility will be able to use this functionality
immediately after the same is moved to production.
The module is having all Limits related features. There is also a facility to define a
separate Monthly / Daily Transaction limit for RTGS and NEFT Upload Transactions.
The module will provide the status of uploaded file and about all the transactions
of the file. The user will be able to generate status wise report – which can be
saved / printed.
Process of uploading of RTGS / NEFT Bulk Upload File.

a. Corporate customer logs in to the corporate Internet Banking application
using his Corporate ID, User ID and password. The RTGS / NEFT upload
feature is placed inside the ‘Upload’ Menu option.
b. The customer clicks on the ‘Upload a File’ link in the file upload side menu.
On this page the customer has to select the debit account and type of file.
The customer has to enter the file name and description (for reference) and
the total debit amount and click on the ‘Browse’ button to select the file
from the ‘Choose file’ dialog box and click on ‘Upload File’ button.
c. Once the file content is successfully uploaded / received by the server, the
new web page is displayed. Based on the total debit amount the workflow
rules are also applied on the web page.
d. After successful validation of the workflow rules and validating the file
contents, the new web page is displayed to the customer. On this page the
details of the individual transactions mentioned in the uploaded file is
displayed. The user has to verify all the details and enter the OTP sent on
his registered mobile number and click on submit.
e. If the uploaded file fails in the validation checks then the customer is
informed about the errors in the new web page instead of displaying the
earlier page. All the errors caught in the validation checks are displayed to
the customer. The customer has to rectify these errors and upload the file
again.
f. Once the OTP is validated the customer has to enter his user ID and
transaction password to submit the request.

g. The transaction password is validated and the cyber receipt page is
displayed on successful authentication. On this page the customer is given
the provision to save the cyber receipt in excel format, print or send a mail
to his internal mailbox.
h. After the file is successfully uploaded, the system takes care of the rest of
the procedure to process the file. The uploaded files are processed at certain
pre-defined intervals. The customer can check the intermittent status by
accessing the ‘View File Status’ link on the side menu. On this web page the
collective status of the file is displayed.
StarToken NG
StarToken is the next generation Internet banking security solution that is being
offered by Bank of India to all its Internet Banking customers (Retail as well as
Corporate). StarToken works as a Two Factor Authentication (2FA) solution.
StarToken facilitates the Internet banking users with an extra level of security
while performing online banking operations. StarToken is powered by the next
generation REL-ID technology and is the first of its kind which provides security
against loss of funds due to theft of login credentials, phishing attacks and most
of the malicious software on the computers. StarToken provides the most secure
Internet Banking Environment to its users. With StarToken you do not need to use
any 3rd party browsers for doing banking on Internet.
StarToken protects you from the problem of Internet Banking frauds that are on
the rise every passing day. StarToken is for your overall Internet banking safety.
Below are some reasons;
a. StarToken controls the loss due to you losing your Internet banking
username and password.
b. StarToken protects you from the loss of your money (while performing
Internet banking) due to various known Internet banking threats such as
Man in the Middle, Man on the Machine and Man in the Browser.
c. If you are using StarToken, you are assured that you are connecting to
authentic Bank of India website and not a phishing website.
d. If you are using StarToken, then Bank of India can distinguish between you
and a thief on Internet, thereby protecting you – which is otherwise
extremely difficult without StarToken.
Introduction of BBPS Branch Module to our Customer in Finacle

(BC: 113/33 Dated: 22.05.2019)
Bank has introduced Bharat Bill Payment (BBPS) module for utility bills payment,
exclusively for our customers, which is to be linked to Bank’s Finacle System
through BBPS Branch Module using “BBPS” menu.
Following task can be performed using BBPS Branch Menu in Finacle-
 Recharge a DTH
 Pay
 Electricity bill
 Post-paid mobile
 Water
 Gas
 Post-paid landline
 Post-paid broadband bills
Etc… gradually more categories would be covered under BBPS
The major benefits of enabling Bank of India’s customers to use BBPS Menu are –

 Customer can pay utility bills by visiting the nearby branch and thus avoid
long queues.
 BBPS Menu offers our customers an additional platform to make utility bill
payments.
 As this is a part of Finacle, the said module can be to effect bill payments
PAN India at any of the Branches.
 Bank will earn revenue for every transaction done using BBPS Menu.
 CASA account will increase.
Non-delivery of Personalized Cheque book -

Intimation to customers through SMS on registered mobile no.
(Circular Letter: 2019-20/120 Dated: 27.02.2020)
Non-delivery of Cheque Books is a matter of great concern as this invites
unnecessary customer dissatisfaction, grievances and complaints. This is also
matter of concern as Branches are expected to devote precious time by handling
such cases and attempting multiple calls to individual customers for advising them
and requesting for collection from Branch. It is observed that at times undelivered
cheque books are lying in Branches unnoticed for a longer period whereas
customers are facing lots of challenges for non-receipt / late delivery of cheque
books.
To overcome the present challenges and to ease out the process, new menu
“DLVSMS" have been developed in Finacle system. Branches are advised/
expected to capture necessary information/details through the menu for
undelivered cheque books as and when the same is received undelivered at
branches. On verification of entry through the same menu, system generated
automatic SMS will be sent to the Customer's registered mobile number,
advising/informing them to collect their cheque book from the branch.
Upon receiving message as above, whenever customer approaches branch for

collection of said cheque book, Branches must ensure to correct their latest
communication address and update the system immediately in order to avoid late/
non-delivery of cheque books to their communication address in future. This will
save precious time of Branches, improve customer service and at the same time
latest information of customers will be available in FINACLE system.
SMS Based Requests/ Banking

Cheque Book Request
Circular Letter – 2015-16/71 dated 24.07.2015
Facilities: For SB, CD, CC, OD account holder
Pre requisite: -
- In Finacle, “Mobile No.” must be inserted in the appropriate filed in
CUMM (with country code)
- In Finacle, Cheque Book allowed field should be “Y”
- Account must have required minimum balance
- Account must be “Active” and not “Dormant”
- Customer ID must me “KYC compliant”
- 1st request of cheque book must be through branch by submitting
the required “Requisite Slip”
 Customer can request for “n” number of cheque books using “N” number of
SMS.
 Presently on SB account cheque is being deliver at “Communication
Address” and for rest type of account it is delivered to concern branch.

 Postal Code (PIN) is mandatory for overseas address (for NRI customer);
otherwise cheque book will be delivered to concern parent branch.
Format: -
CHBS<>15 Digit A/C No.<>ADR (Delivery- Customer address)
Send the message to 9212304242
CHBS<>15 Digit A/C No.<>BR (Delivery – Branch)
Send the message to 9212304242
NRI customer has to send his/her request by putting +91 before

9212304242. Thus, SMS is to be sent to +919212304242
[If request is not executed a message is send to customer – “Cheque Book

Request is Unsuccessful”]
Auto Generation:
Finacle will identify accounts in which 75% of Cheque leaves are utilized, a
request of personalized cheque book will be generated and the request will
be in “V” (verified) status.
{A system generated SMS will be sent to the customer advising “You have
utilized 75% of your cheques, we are processing your new cheque book
which will be delivered at your branch/home within 8/10 working days”}
IMT related request

@ Adding IMT Beneficiary:
IMT Ben 10DigitMob.NO#Ben Name#Ben Add#Ben PIN Code
Send the above message to +919223009988
@ Delete Benf.:-
IMT BENC#Ben Mob No. => +919223009988
QSAM (Query Service on Aadhaar Mapper):

A common code *99*99# has been adopted for all TSPs. It is called QSAM
(Query Service on aadhaar Mapper) that allows the users to check the Aadhaar
seeding status in the bank account along with the last updated date.
Dial -*99*99#
a. Know Aadhar Link Status
b. PMJDY A/C Overdraft Status
Missed Call Balance Enquiry:

Missed Call Balance Enquiry –
For domestic customers - 1. 9015135135
2. 9266135135
For NRI customers +919015190202
SMS in Vernacular Language

Presently, our customers are being provided various financial and non-financial
SMS alert messages only in English Language generated from various channels
like FINACLE, IB, MB, UPI, ATM, POS, e-COM. There are request from Customers
to consider providing such messages in their mother tongue for the benefit of
Customers in general who are not comfortable with English or have limited
knowledge of English language or take pride in using their mother tongue over
English language. Our bank has considered their requested and adapting new

process & feature through which customer would be in a position to receive such
messages in their preferred language. Accordingly, enhancement in CBS have
been made to accommodate customer preferred language. So far, following
languages are enabled based on State code available in permanent address field
in the customers master in Finacle as default preferred language for SMS alerts.
Since we are taking default preferred language based on permanent state code
available in customer master, all customer by default will receive SMS in the
language stated as above. However, we have provided facility to customers to
change / choose other languages or go back to English as preferred language. To
change SMS preferred language following options are available to
customers/Branches.
A. Branch (Offline):
 Invoke menu option CUMM in CBS.
 Select Function ‘M’ and enter Cust_id and press F4
 Press F6 and go to last page of CUMM and modify the Free _Code_3 after
selecting the language code from F2 menu.
B. SMS (Online):
 Customer may change preferred language by sending SMS using code
“UATLANG” keyword and sent on to no. 9212304242 using their registered
mobile number.
 As soon as they sent this code, customer will receive SMS which will provide
details of preferential language code available to choose and format in which
request has to be sent.
 Customer will text/message the preference language code in prescribed format

(i.e. <language_code><space><cust_id>) on long code 9212304242
 On successful completion of process, customer will get the status through SMS
on his/her registered mobile number.
 Kindly advise the customer that maximum limit for changing SMS vernacular
language using SMS mode is 2 times per day.

BOI Star Rewardz
BOI Star Rewardz is Bank of India’s Credit/Debit Card loyalty program. Every time
you use your Credit/Debit Card for shopping or making payments, you earn
StarPoints which can be redeemed to get products & services for free.
Objectives of the programme
The main objectives of the BOI Star Rewardz Loyalty Programme for Credit & Debit
Cards are: -
 To increase the transaction counts and purchases on POS and e-Commerce.
 To introduce a wide portfolio of redemption options to the customers.
 To generate additional revenue for the bank in the form of interchange.
 To increase customer base using BOI Credit cards.
 And to encourage our existing customers for cash less transactions.
On BOI Star Rewardz app you can

 Track your StarPoints
 Redeem them to get clothes, utilities, jewellery, kitchenware, electronics &
more for free
 Redeem Points for free mobile/DTH recharge
 Use Points to get free movie tickets
 Redeem Points on the spot at any store using mPoint
 Locate Max Get More partner stores to earn upto 5X Points
Earn Reward Points

Always shop using your Bank of India Credit/Debit Card & earn StarPoints. These
are equal to cash & can be redeemed to get anything for free. Shop at Max Get
More partner stores to earn Points faster.
Redeem your Reward Points anywhere using mPoint

With this new feature, your redemption options are unlimited. You can redeem
your Points at any store of your choice for any shopping - at your local grocery
store, medical store, restaurant, general store & more.
All you need to do is generate an mPoint QR Code for the amount you want to
redeem on your BOI STAR REWARDZ app. Show it to the shopkeeper/cashier who
will scan it on his smartphone using mPoint Business app. The amount is directly
transferred into his/her bank account and your StarPoints are redeemed against
the product/service.
In case of insufficient point balance, you can pay the remaining amount using your
debit/credit card to generate mPoint for the required value.
You can also redeem your StarPoints on app & choose from over 10,000 products
in our product catalogue, book movie tickets for free & get mobile/DTH recharge
for free.
Debit Card – Points:
To be able to start redeeming Bank’s Credit Card customers will need to achieve
a threshold of 100 Points.

Points need to be redeemed within three years (36 months excluding the month
of accrual) of accruing them. Unredeemed Points will expire at the end of 36
months.
Slabs Amount Spent Per Month Points per Rs. 100/- spent Per
Month
Slab 1 Upto Rs. 5,000/- 1 Point
Slab 2 From Rs. 5,001/- to Rs. 1.5 Points

10,000/-
Slab 3 Rs. 10,001/- and above 2 Points

(1 Star Point = Rs.0.25/-)
50% MORE Star Points (Loyalty Reward Points) to Sangini Debit Card Holders. You
get 1.5 Points in place of 1 Point for every Rs.100 spent, for every card usage at
POS/e-commerce transactions.
Credit Card - Points

To be able to start redeeming Bank’s Debit Card customers will need to achieve a
threshold of 100 Points.
Points need to be redeemed within three years (36 months excluding the month
of accrual) of accruing them. Unredeemed Points will expire at the end of 36
months.
2 Star Points for every Rs.100/- spent

1 additional Star point for every Rs.100/- – for purchases on preferred category.
(1 Star Point = Rs.0.25/-)

PoS & M-PoS
EDC/POS/MPOS/Bharat QR/BhimAadhar Familiarization

 For Merchant Acquisition Business
 Bank is installing Electronic Data Capture (EDC) machine or Point of Sale (POS)
terminal(s)/, QR Codes, Bharat QR Code, BhimAadhar pay system at merchant’s
outlet(s).
Merchant Category (as per RBI)
1. Small merchants (with turnover up to Rs.20 Lakhs during the previous financial
year)
2. Other merchants (with turnover above Rs.20 Lakhs during the previous financial
year)
Eligibility:
 Operative Account (Saving/Current Overdraft/Cash Credit) Holder of the Bank for at
least 6(six) months.
 The conduct of the account should be satisfactory.
 The requirement of six-month satisfactory conducted account may be diluted in the
following circumstances:
o Other Group accounts being more than 6 months old. 2. The Bank has
sanctioned the ME business loan. 3. In case of reputed / well known canvassed
accounts. (Satisfactory conduct of 2 years of a/c in any Public/ private Bank)
 Merchants having business in Jewelry, Diamonds, Handicrafts, Carpets should be
done only when their credentials, creditworthiness, integrity are well established
through enhanced due diligence.
 Any deviation in eligibility criteria listed above should be specifically approved by an
authority not lower than the Zonal Manager.
Not Eligible Merchant
1. Fire arms, Hazardous materials
2. Fake/banned/illegal Goods and services
3. Regulated goods for which authorization is not obtained
4. Fake/banned Drugs and unlicensed Medical Practitioner, Illegal tests
5. Trading of Live/endangered Animals/species, body parts
6. Activities involving copyright violation
7. Adult goods and services
8. Gambling and Gaming
9. Hacking, Cracking, Cheating and Forgery
10. Offensive/Crime Goods
11. Currency, Exchanges and Financial Products and Services
12. Foreign Contributions, Political Funding, Hawala Transactions
Document Required: Documents are submitted by
 Financial Documents of the Merchant Merchant
 If the merchant is corporate Audited  Application in the prescribed format
Financial statements for last three years has to be complete in all respect and
is required. signed.
 Limit for audited financial statement  Photograph (individuals & authorized
shall be applied as per relevant statute; personnel.
 Financial documents shall include 6  Know Your Customer Document,
months bank statement, ITR filed or including Proof of Identity and Proof
Audited Balance sheet. of Address for Merchant.

 If merchant is already enrolled by  Permanent Account Number (PAN)
 GST Registration number. In case of
another institution, status report from
small merchants, who do not have
the institution/banker shall be obtained.
 CIBIL/ Credit Bureau report for the registration number/ license, the copy
business entity and its partners/ of Aadhaar/ PAN should be obtained
directors/ promoters / proprietors/ Merchant should submit all principal
authorized signatories shall be financial statements like audited
generated and should be acceptable balance sheets, Income / Wealth Tax
to the Bank. Report should not returns etc. for past 3 years. If new in
contain any overdue or legal action business, then the personal IT /
for recovery of dues/ written-off Wealth Tax returns of the promoters,
accounts. If the issues are technical for previous years.
 If the applicant is Corporate:
or the details are not updated, based
on available documentary evidence,  UIN Number
the sanctioning authority may relax  Certificate of Registration /
the condition by incorporating full Incorporation,
details in the proposal.  Certificate of Commencement of
Inspection of Merchants (Once in Business
quarter)  Memorandum & Articles of
Merchant Business verified and recorded in Association and Board Resolution
inspection report/endorsement in (In case of Company) /
application. Authorization (in other cases).
Type of location: To Determine the type of Personal details of the authorized
location of the merchant, such as storefront, signatories.
indoor shopping mall, or office etc. Due Diligence:
Time of location: Period for which the  Proper due diligence shall be done
business has operated at the present while processing the request of
location. Merchant.
Type of Activity: Business activity, as The entity should be a legal entity
mentioned in the application, should be recognized by law, in cases other than
visible at the location. The expected individuals.
turnover must also be in line with the  The ME should be well established in
business activity. the business and should be in business
Market Report: Market report of the for a reasonable period – at least six
Merchant shall be taken. months. In case of new accounts,
whether canvassed or not,
 There should be no adverse market
reports.
 If the business premises as well as
residence of the proponents, both, are
rented, the proponent should be
residing in that place for at least 2
years or more.
All document of Merchants keeps in record along with, ME Enrolment Report,
Records of MID & TID and ME Do’s & Don’ts
Cost-Benefit Analysis -> Analysis before Approval -> Analysis on Annual Basis
 For carrying out annual analysis, the historical trend of last one year, shorter if installed within
the year, shall be taken into account.
 It shall be the responsibility of the Branch head to ensure that Annual Review is done.
Approval/decision of Zonal Manager shall be obtained and kept on record within 3 months of
expiry of one year, failing which the concessional rates may be withdrawn by Head Office.

Bulk Terminals
Merchants having more than 5 terminals, endeavor should be made to obtain security
deposits for the 3 years rental of all terminals in the form of TDR/ Bank Guarantee etc.
and lock in period of terminal should be 36 months. In deserving cases, relaxation may
be approved by General Manager, National Baking Group / Head Office.
Rent
Vendor - M/S Worldline (ATOS)
Terminal type Monthly
Rent
GPRS 975 + GST Printed Slip
PSTN 520 + GST Landline Phone with STD connection
Paytivo 6210 350 + GST Only e-charge slip not printed slip
Paytivo 7210 975 + GST Printed Slip
Vendor - M/S Indiatransact Services Ltd (ONGO)
GPRS 349 + GST 749 + GST one-time installation charges
MPOS 249 + GST 349 + GST one-time installation charges
Smart Phone with Internet Connection
Vendor M/S Synergistic Financial Pvt Ltd (Mosambee) through Worldline
MPOS 250 + GST Smart Phone with Internet
Connection
M/S Plutus Plus solutions (M/s Pine Labs) through Wordline
Model Multiple Sole acquiring
acquiring
ICT 220 Pine EDC (Internet connectivity) 320 + GST 570+GST
DGPRS (Desktop GPRS) Pine EDC (Including 320 + GST 670+GST
GPRS SIM)
GPRS (Handheld) Pine EDC (Including GPRS 320 + GST 975+GST
SIM)
Bharat QR
QR code 60 + GST 200 + GST one-time installation charges
BHIM Aadhar
Biometric Device 0 2065 + GST Installation Charges
 Rent Borne by Bank – Charges through Zone SUS071
 PL a/c for EDC/POS Machine Rent is PLOE096
 Close, Invalid/ Freeze etc a/c Rent Charged by respective Branch
SUS073, and it will be recovered from merchant only.
 Before De-installing the terminal/ Close the account, all pending rent
should be recovered.
MDR (Merchant Discount Rate)
The merchant discount rate is the rate charged to a merchant for payment processing
services on debit and credit card transactions. (This is the transaction fee, deducted
per transaction)
Debit Card Credit Card
Transaction up to 2000 - NIL  1.75 to 2.00 % as per
Transaction Small 0.40 bank Sanction
above 2000 Merchant +GST
other 0.90
Merchant +GST

Sanction Authority
Branches headed by Branch Managers up to Scale III Deputy. Any deviations
in any eligibility
Zonal Manager
norm/ MDR /
Branches headed by Scale IV Branch Head (Chief Manger) Rent: Zonal
Manager only
Only Bharat QR by Branch Manager
Other Facility
 Cash @ POS also available in all active for Cash @ POS terminals with
Incentive as per NPCI/RBI Guideline.
 International Card activation facility also available.
 Offline pre-authorization facility also available.
 Merchant customization facility also available.
Review of Merchants: -
Cost-Benefit Analysis, transaction -> Quarterly
Charge Back, Fraud, Conduct of Merchants-> Annually
Branches ensure yearly Review of Merchants are done by the branches Official
For Installation
Send Work order of Excel sheet with Sanction Memorandum to
headoffice.CPDedc@bankofindia.co.in
De-installation of terminal
 Send email to respective vendor as per escalation matrix or
headoffice.CPDedc@bankofindia.co.in with MID/TID and account number of
Merchants.
 After de-installing pending rent will be recover on next months.
Reference/ Circular:
 HO: CPD:PM:007 dated 28.02.2019
 110/181 dated 22.12.2016,
 110/173 dated 08.12.2016,
 110/125 dated 04.10.2013
 107/82 dated 01.08.2013
 Ref: HO: CPD: Accts: IVN: BRANCH CIRCULAR NO. 98/20, Sub: General
Instructions 2004-05/4, Date: 10.05.2004
This is only for handy and quick reference based on latest circular/ Policy
for Internal used only
***************************

POS (POINT OF SALE TERMINAL) – Some important tips
 This actually refers to the machine or terminal which is used at a Point of
Sale location for making payment. The payment is not by Cash but by using
the Plastic money, i.e., using a Card issued by any Financial Institution. Be
it a,
 Credit Card
 Debit Card
 Value Loaded Card i.e., Prepaid Card or
 Gift Card
 Thus, POS is a machine used to swipe a credit/debit/prepaid card so that
the sale can be completed by parting with the goods against the value
received through the swipe of the card.
 In other words, issuing of POS terminal actually refers to enrolling of a
merchant by the Bank, for accepting payment by electronic means, i.e.,
by Cards.
 Apart from issuing of Cards (both Debit and Credit Cards) Bank has to enrol
merchants also as this is another important activity which generates income
for the Bank.
 Professionals like Doctors, Lawyers, Chartered Accountants also providing
expert services for money. Thus, they are also doing business. Hence these
professionals also are falling in the category of merchants. Hence, they can
also be enrolled for accepting fees through cards for the services rendered
by them.
 Buying and selling of goods or services is the core activity of any merchant
Who can be provided PoS

 Any merchant or businessman carrying on a legitimate business activity, by
adhering to the rule of law and doing business to earn a living, is eligible to
apply for a POS terminal.
 Similarly, a professional offering professional services for money is also
eligible to be enrolled as a merchant.
 Customers of the Bank are enrolled for being our merchants. New Accounts
canvassed by our Marketing staff can also be provided POS.
Types of PoS
At present our Bank is issuing 3 types of POS Terminal machines:
1. PSTN Terminals:
 These terminals require Landline Telephone connections.
 Through dial-up facility these are connected and the approvals are
communicated. Fixed telephone connection is mandatory.
2. GPRS Terminals:
 These terminals do not need Landline telephones. These have a SIM
Card and similar to mobile phones, these get connected through the
SIMs

3. MPOS Terminals:
 These terminals are connected through Bluetooth with a Smartphone
(Android) and the transactions are processed. The APP has to be
downloaded from Play store.
 On the Smartphone and through the phone the device is connected
to network.
Requirements for providing PoS
 The Merchant should have a legitimate business or commercial activity
 The Merchant should be operating a satisfactorily conducted Current/C.C.
Account with the Bank for at least 6 months. In case the account is new the
account and the POS usage should be monitored and if needed, corrective
action to be taken immediately.
 The Merchant should have obtained a valid Licence for running the business
or activity he is engaged in.
 The financial position should be satisfactory i.e. the merchant should be
earning profit from the activity he is engaged in.
 Latest KYC Documents of the customer should be obtained and verified to
the satisfaction of the Branch.
 CIBIL report to be generated by the Branch and the score should be
satisfactory.
Cost Benefit Analysis – PoS:

 If the ME fulfils all the requirements as mentioned above, the Branch will
now work out a cost benefit analysis based on the turnover of the merchant
and the commission rate negotiated with the merchant.
 On the income side, the following parameters will be considered.
 Yield to the Bank, on the Deposits held by the merchant @6.7%
 Sale through Debit Cards – Commission @ 0.75% for value <2000
 Sale through Debit Cards – Commission @ 1.00% for value >2000
 Sale through Credit Cards – Commission @ the negotiated rate
 Rent of the POS Terminal (If ME has agreed to pay the same
 On the expenses side, the following items will be borne by the Bank
 Commission @ .8% to be paid to Visa/MasterCard on all debit card
transactions
 Commission @ 1.45% to be paid on all credit card transactions
 Rent for the POS to be paid to the Service providers
Approval:
 Branch has to submit the recommendations to the competent authority and
request approval for issuing POS to the merchant.
 While submitting the proposal, Branch will bring forth the following facts:
a) The account is conducted satisfactorily
b) The proprietor/Partner(s)/Company has obtained Licence for running the
business

c) The ME has submitted the KYC documents and also the fact that the
business premises owned/rented by the proponent
d) The cost benefit analysis is showing profit or loss
 If there is no deviation from the norms, Chief Manager and above can
approve enrolment of ME. However, if there is any deviation, then Zonal
Manager is the only competent authority for enrolling merchant
What is M-POS (Mobile POS Terminal)

An M-POS (Mobile point of sale) is a smartphone, tablet or dedicated wireless
device that performs the functions of an electronic point of sale terminal. With m-
POS one can harness the power of a smartphone, tablet or other mobile device to
accept payments on the spot.
Presently two variants of M-POS are being launched
1. App Based
2. M-Swipe
The App based M-POS will be available in two variants
a) Mosambee
b) Ongo Merchant
In the app-based M-POS there is a requirement of a smartphone or tablet on which
the app is downloaded and paired via Bluetooth of the smartphone or tablet with
the M-POS device.
M-Swipe variant of the M-POS is a standalone device and there is no requirement
of smartphone or tablet for carrying out the transaction.
Key Features of M-POS
• Suits small business men and merchants: From individuals offering
professional services to small to small and medium business set ups – M-
POS is a perfect payment solution. Smaller merchants cannot afford to use
traditional POS due to various reasons, but with M-POS all they need is a
smartphone with internet access. M-POS eliminates the requirement of a
fixed line, hassles of applying and maintaining POS from banks; thus saving
merchants time and money.
• Cheaper as compared to conventional POS machine: Compared to a regular
POS, MPOS comes with a much lesser monthly maintenance cost.
• Convenient to use: M-POS is a convenient option as employees can meet
consumers on the floor, help them check out without standing in line, and
aid them in their decision-making process without risk of consumers opting
for their phones as an aid.
Rental: Mosambee and M-Swipe machines will be provided by existing vendor
M/S Worldline @ monthly rental of Rs.350/- per terminal.
Ongo merchant M-POS will be provided by M/S India Transact Services Limited.
In this model there will be a onetime set up fee of Rs.749/- per M-POS terminal
and monthly rental of Rs.349/- per terminal.
Government of India has advised to charge Rs.100/- only as rental per month on
POS (Conventional/MPOS) to incentivise the merchants to use POS and promote
cashless banking. Zonal Managers are competent authority to take a view on it on
a case to case basis. It is suggested to charge Rs.100/- for first three months from
the date of boarding till 31.03.2017(Branch Circular No.110/181 dated
22.12.2016).

Merchant Discount Rate: In the normal POS terminal installations, for Debit cards
the MDR is as per the RBI guidelines (waived till 31.12.2016) and for Credit cards
we are charging @ 1.65% or as per sanction of Zonal Manager. The same MDR
rate shall be applicable for M-Swipe and Mosambee model whereas for the Ongo
model, it being an Aggregator model, the vendor shall be charging us MDR as
under, in lieu of end to end management with all expenses attributed to the
vendor:
a) Debit as per RBI guidelines
b) Credit Cards–Standard (1.4%), Premium (1.95%) & Super Premium
(2.20%)
c) Credit Cards-International Cards (2.50%).
BOI Mobile Functionalities
B OI Mobile is a Bank of India Mobile Banking

Application for Retail Banking Customers. “BOI
Mobile” app was launched on 1st August 2018. It
allows you to bank anytime, anywhere through
your mobile phone. You can access your banking
information and make transactions in your
Operative Accounts at absolutely free.
It’s completely safe. All the details entered in app
will be encrypted end-to-end across all networks.
It’s available in Google play store and apple store.
BOI customer can enrol themselves for mobile

banking application by downloading the app from
respective play store/App Store.
There are two types of Users.
1. View User
2. Financial user.
View users can view his account Balance, Account Details, Mini Statement and M-
Passbook
Financial users can perform all type of fund transfer related transactions including
bill payments.
Customer can convert himself from view user to financial user by using his debit
card credentials. This option will be available under settings menu.
Various functionalities are as follows: -
1. Registration as View User/Financial User
2. Change Transaction Password
3. Forgot Transaction Password
4. Change Login PIN
5. Forgot Login PIN
6. Multiple Languages (presently 12 languages)
7. Locator
8. Contact Us
9. FAQ

10. Balance Enquiry
11. Mini Statement
12. View Account Details
13. Generate MMID
14. View MMID
15. Loan statement
16. Loan Interest certificate
17. View Nominee details of Deposit Account
18. Term Deposit and Recurring Deposit opening
19. Pre closure of Deposit Account and Recurring accounts opened
through Mobile Banking
20. Interest Rate Chart
21. Passbook
a) Date wise
b) Last Month, 3 Months, 6 Months and 1 year
c) Last number of transactions
d) Last number of Days
22. Request for Account Statement through Mail and PDF
23. Fund Transfer
a) Self-Account
b) Third Party
c) IMPS – P2A (Account number & IFSC) & P2P (Mobile number
& MMID)
d) NEFT
e) RTGS
24. BBPS Bill Payment
25. Adding biller as Favorite
26. Bill Payment History viewing
27. Beneficiary management for fund transfer
a) Beneficiary Addition
b) Beneficiary Deletion
c) Make Beneficiary as Favourites
28. Opening and viewing Government schemes
a) Pradhan Mantri Jeevan Jyoti Bima Yojana - PMJJBY
b) Pradhan Mantri Suraksha Bima Yojana - PMSBY
29. Retrieval of Transactions
30. Request for Cheque book
31. Stop Cheque payment
32. Enquire Cheque Status
33. De-registration of User-ID
34. Transaction Limit Management for all Financial Transaction
35. Customer Profile
36. Refer a Friend
37. OTP Auto Fetch
38. Notification for Transactions

BOI Mobile Banking App Pre-Login FAQs
Introduction
 What is BOI Mobile?
BOI Mobile is a Bank of India Mobile Banking Application for Retail Banking
Customers. It allows you to bank anytime, anywhere through your mobile
phone. You can access your banking information and make transactions in your
Operative Accounts at absolutely free.
 Other Bank Customer can use BOI Mobile?

No. Currently it’s only available for BOI customers.
 BOI Mobile is safe to use?

Yes, it’s completely safe. All the details entered in app will be encrypted end-
to-end across all networks.
 How to Download the App?

It’s available in Google play store and apple store.
 Which OS version does this app support?

Any version of Android above 5.0.2 and iOS version 8.0 above is supported by
the Application.
Registration
 How to register with BOI Mobile?
BOI customer can enroll themselves for mobile banking application
by downloading the app from respective play store/App Store.
 What are the type of users?

There are two types of Users. View User and Financial user.
 What is view user?

View users can view his account Balance, Account Details, Mini Statement and
M-Passbook.
 What is Financial user?

Financial users can perform all type of fund transfer related transactions
including bill payments.
 How to convert from view user to financial user?

Customer can convert himself from view user to financial user by using his
debit card credentials. This option will be available under settings menu.
 If I don't have card how to convert from view user to financial user?
You can approach your parent Branch for Debit card facility to avail the facility
of financial user.
 I am getting a prompt “Sending SMS from your mobile failed” while

registration. What should I do?
Please check your mobile balance and network connectivity. Please reach us
on 1800 220 229for further assistance.

Existing User
Re-Installation for existing users.
 Can I change my mobile device?

Yes, you can change your mobile. Please download and install the app from the
play store/App Store.
 Do I have to follow the registration process for new device?
No, it’s not required Just re-activate by clicking proceed button in the first
page.
 Whether the registered SIM is mandatory for reactivation?
Yes, Registered SIM is mandatory for new device.
 I have changed my mobile number at branch but can I still use the BOI mobile
app?
Yes, Mobile application will ask for the update.
Accessibility
Login
 What are the various credentials used for Login?

You can use your user id / mobile number / customer id and Login PIN.
 How many times can I try with wrong login PIN?
Maximum 3 times per day.
 If my user id is locked then how to release it?
You have to wait for 24 hours to auto release or approach the bank for reset.
Forgot User ID
 What is Forgot User ID?
If you have forgotten your User ID this option will be used to retrieve the User
ID from server.
 What are the inputs do I need to give to retrieve the user id?
If you are view only user you need to provide OTP. If you are transaction user
you need to provide OTP and Transactions Password
 If I have forgotten transactions password or transaction password is expired

how do I reset?
If you have forgotten transactions password or if password has expired then
use Forgot Transactions Password link to reset the Transactions Password.
Forgot Login PIN

 What is Forgot Login PIN?
If you forget your Login PIN then use this option to reset the Login PIN.
 What are the inputs I need to give to reset the Login PIN?
View user can reset the pin with OTP facility and financial user needs to provide
OTP and Transaction Password.

BOI Mobile Banking App Post Login FAQs
My Account
Operative Accounts
 What are the accounts that will be showed under operative account?
All the Savings, Current and Overdraft account will be displayed under
operative account.
 How can I view Mini Statement or spending pattern of particular Operative

account?
You may click a particular account to view mini statement and spending
pattern.
 Can I initiate fund transfer from my operative account?

Yes, Fund Transfer facility is available
 Which type of Joint Accounts will be shown under My Accounts?

Accounts having or either or Survivor/ Former or Survivor will be available
under my account.
Loan Accounts
 Can I see all my loan account along with outstanding amount?
Yes
 Can I see summary or statement of a particular loan account?

Yes
 Can I download loan interest certificate of loan account?

Yes, you can download the loan interest certificate in PDF format up to Last 10
years.
Deposit Accounts
 Can I see all my deposit account along with current balance?
Yes
 Can I see summary of deposit accounts?

Yes
 Can I open new deposit account?

 Yes
mPassBook
 What is mPASSBOOK?
mPASSBOOK or mobile passbook is yet another innovative offering from Bank
of India. This is an electronic passbook which can be used for generating your
statement of a/c.
 Can I download the statement?
Yes, you can download the statement in PDF format in mobile.
 Can I send email of my statement?
Yes, you can send email statement of your account on your email id register
with bank.

Favourite Transaction
 What is Favourites?
Favourite option is used to save the successful transaction beneficiary as a
favourite one. You need not to enter the details again for further transactions
for the same Beneficiary.
 Can I delete the favourites?

Yes, it can be deleted by swiping the left side of the displayed favourite
Beneficiary nick name.
 Can I view the favourites?

Yes, details can be viewed by swiping the left side of the displayed favourite
Beneficiary nick name.
 Can I modify the favourites?

No
Service Request
Cheque book request
 Can I apply for cheque book request in mobile app?
Yes
 How many leaves of cheque book can I apply?
For current account 50 leaves and for savings account 25 leaves.
 Can I receive the cheque book delivery to my registered address?

Yes, it can be delivered to the registered address.
Cheque status
 How can I view my cheques status?
You can view the cheque status by entering the cheque number or by viewing
all cheques status after a particular date.
 What are the various type of cheque status that are available?
The cheques status displayed are
1. Un-used
2. Passed
3. Stopped
Stop cheque
 What type of cheque can I stop?
You can stop cheques that are not regularized.
Settings
Transaction Limit
 What is Transaction Limit?
Transaction Limit is the maximum amount which a user can transact for a
specific period i.e. Transaction limit facility is provided to restrict the quantum
of amount needs to be transact through Mobile application.
 Can I set daily, weekly and monthly transaction limit?

Yes.
 For Which transaction type can I set Transaction Limit?

Transaction limit can be set for
1. Self-account Transfer
2. Third party transfer
3. NEFT
4. RTGS
5. IMPS (Account No + IFSC)/ (MMID + Mobile)
 What is the minimum and maximum transaction limit?

Sr. Transaction Type Per Transaction Daily Limit
No.
1 Self-Link 50,000 2,00,000
2 Third Party 25,000 1,00,000
3 IMPS 25,000 1,00,000
4 NEFT 25,000 1,00,000
5 RTGS 3,00,000 3,00,000
Change Login PIN

 What is Change Login PIN?
User can change his existing login pin using this option.
Change Transaction Password
 What is Change Transaction Password?
User can change his/her existing Transaction Password using this option
Forgot Transaction Password
 What is Forgot Transaction Password?
User can reset his/her Transaction Password using this option
De-register, Change of Mobile Number.
 What is De-register?
User can deregister himself from mobile banking application using this option
and he will no more be a Mobile banking application user
Change Language
 What is Change Language?
User can change application language using this option.
Fund Transfer
Self-Account
 What is Self-Account fund transfer?
This feature allows user to transfer funds between their his/her own Bank of
India accounts. Self-Link fund transfer is available among Saving, Current and
Overdraft accounts. This facility is also available to NRE customers also.
 What are the conditions for Self-Transfer?
You can transfer funds between accounts having registered mobile number.
Third Party
 What is third party fund transfer?
This feature allows transfer of funds from your Account to another Bank of
India Customers A/C.
 I am unable to transfer to Third Party with the error “Unable to process please
try again later”.
Please verify beneficiary details. In case issue persists please contact us on
1800 220 229.

BHIM BOI UPI
Bank of India offers UPI application for the customers of BOI as well of other banks
to register in the app and link their accounts. Customer shall be able to Pay and
initiated collect money requests to their contacts.
All you need is to create your unique VPA (Virtual Payment Address), e.g.
abhayksinha@boi or your mobilenumber@boi (xxxxxxxxxx@boi)
Make payments easier using Virtual Payment Address (VPA) Pay & collect in BOI
UPI by Managing all your accounts in a single app.
What are the requirements for using UPI?

You should have following:
 An android phone with internet services
 An operative bank account
 The mobile number being registered with UPI, must be linked to the bank
account.
 Active debit card relating to this account for creating UPIPIN.
How do I register in the BOI UPI application?

 Tap Send SMS to verify your mobile number. An SMS will be sent from your
mobile for verification. The SMS should be sent from the mobile number
registered with the bank accounts.
 After your mobile number is verified, the New Registration screen is
displayed. Fill in the required details.
 Create four digits numeric password for logging in to application and
confirm the same.
Features of BHIM BOI UPI:

 Anyone (BOI customers and non-BOI customers) can use the BHIM BOI UPI
banking app to make payments from their mobile to anyone without
knowing the recipient's bank details
 You can add multiple bank accounts on the BHIM BOI UPI payment app
 You can perform instant fund transfer using UPI ID to any bank account
right from BHIM BOI UPI money transfer app
 You can link the beneficiaries just by using their UPI ID on the BHIM BOI
UPI mobile payment app
 Fund transfers are instant, 27x7, 365 days and absolutely free of cost and
take place in a completely safe and secure way
 You can also check the balance of your linked accounts right from the BHIM
BOI UPI app
How does BHIM BOI UPI work?

Getting Started
 Download the BHIM BOI UPI app from Google Play Store

 Select your preferred bank account
 Create a unique ID (for example – yourname@boi)
 Verify your account & set a UPI PIN
How to send money?

 Select your & receiver’s unique ID
 Enter amount
 Confirm mobile payment by entering UPI PIN
How to ask for money?

 Select your & sender’s unique ID
 Enter amount
 Receive money when sender approves the money transfer on his app
The new and improved interface allows you to manage your beneficiaries, pay to
VPA, Account/IFSC, Aadhar and QR Codes.
Following are the transaction sets supported

 User profile registration
 Payment address creation
 Authentication
 Authorisation
 PIN generation
Core transaction functionality

 Pay request
 Collect request
 Collect request approval (Payer approval through Mobile application)
 Debiting / Crediting Payer / Payee accounts
 Virtual address resolution for NPCI-UPI
 Support for all 2-party, 3-party and 4-party models of NPCI UPI

BHIM
BHIM (Bharat Interface for Money) is a rebranded version of UPI (Unified

Payment Interface) and NUUP (USSD). BHIM is developed by National Payments
Corporation of India (NPCI), based on the Unified Payment Interface (UPI). This
app is available for Indians only.
UPI (Unified Payment Interface) is a payment system which allows you to pay
directly from your bank account to different merchants without the hassle of typing
your card details, or net-banking/ wallet password. UPI brings this awesome idea
of "Virtual Payment Address" (Which looks something like 'abhaysinha@upi').
You don’t need to know the bank account number of the payee. This payment
system works on the mobile platform. Sending money through the UPI app is as
easy as sending a message. You are not required to give bank account details for
the fund transfer through the UPI payment system.
The BHIM app can be used on a smartphone or a regular feature phone, and soon
it will be improved so that one only has to use their thumb to make payments.
This UPI app supports all Indian banks which use that platform, which is built over
the IMPS (Immediate Payment Service) infrastructure and allows the user to
instantly transfer money between the bank accounts of any two parties. It can be
used on all mobile devices.
BHIM allow users send or receive money to other UPI payment addresses or
scanning QR code or account number with IFSC code or MMID (Mobile Money
Identifier) Code to users who do not have a UPI-based bank account.
BHIM allows users to check current balance in their bank accounts and to choose
which bank account to use for conducting transactions, although only one can be
active at any time.
Users can create their own QR code for a fixed amount of money, which is helpful
in merchant — seller — buyer transactions. They can also have more than one
payment address.
VPA (Virtual Payment Address – UPI ID)

The Virtual Payment Address or VPA is an address given to the user of UPI
payment system. We have to use VPA to transfer fund. The virtual payment
address replaces the bank account details. Thanks to the virtual Payment Address,
you don’t need anything else to transfer money.

UPI, USSD Payment
One can now make UPI-based transactions even without any app or an internet
connection.
Until now, you required an Android smartphone to make UPI-based transactions.

For making payments without internet, say from a feature phone, there is USSD-
based mobile banking. Now, along with the ‘BHIM’ app, the USSD platform has
also been upgraded with UPI integration.
In order to make UPI payments offline, you’ll first need to download the BHIM app
on your smartphone and complete the registration process (very soon direct USSD
based registration will be implemented). Once the SIM card and smartphone
binding is done with your bank account, you can use the BHIM app to make UPI
transactions, and when internet isn’t available, you can use USSD-based mobile
banking. Now let’s take a look at what all you can do with the new USSD platform.
Upon dialing *99#, you have the welcome screen with seven options –
1. Send money,
2. Request money,
3. Check balance,
4. My profile,
5. Pending requests,
6. Transactions and
7. UPI PIN.
Upon choosing the send money option – you can send money to the recipient by
either
 Entering their mobile number,
 Virtual Payment Address (VPA),
 Choose from already saved beneficiaries,
 Using IFSC code and account number, or
 Using MMID and mobile number.
After entering the payment address, it will fetch the recipient details and show his
/ her name. Enter the amount you want to transfer (minimum Re 1 and maximum
Rs 20,000), followed by entering 4-digit UPI PIN in the next step, and hit send.
Once the money is sent, it will ask you to either save the recipient for further
reference or exit.
Next option lets you request money. Select ‘2’ from the home screen, then enter
the VPA, followed by the amount in the next screen. This will send a collect money
notification to the recipient. The option ‘3’ lets you check the balance of your linked
bank account. You will be asked to enter the 4-digit UPI PIN and after verification,
the account balance will be displayed on the screen.
The fourth option is where you can check your profile details. Here, you can change
your bank account, select a different language (English or Hindi) and view your
details. There is also an option to change your payment address. By default, it is
your ‘phonenumber@UPI’ but if you want a customized one with ‘yourname@UPI’
you can get that too.

To change your bank account, select ‘1’ then enter first three letters of the bank
(BOI for Bank of India, ICI for ICICI bank, HDF for HDFC bank, and so on) or first
four letters of the IFSC code (BKID for Bank of India, ICIC for ICICI bank, CNRB
for Canara Bank, SBIN for State Bank of India), and do on. It will then show you
the linked account number, enter the number to select one as your default
account.
The last three options let you see if there are any pending ‘collect money’ requests,
past transactions or set or reset UPI PIN, or change your existing UPI PIN.
UPI 2.0
UPI 2.0 is a new and updated version of the previous UPI. In this new version,
users will get more new features which will make their experience more smooth,
and some bugs have also been removed, and it’s the better and advanced version
of the previous interface.
UPI 2.0 Key Features & Benefits

Some of the most useful features have been launched with the UPI 2.0. Some of
the new features of UPI 2.0 are overdraft account linking, enhanced transaction
limit, invoice in the inbox, one-time mandate, signed intent and QR code and many
more.
Transaction Limit Has Been Enhanced

This is also a great addition to the UPI 2.0 where the maximum transaction limit
has been increased up to Rs 2 lakh. So, now you can transact more money without
any hassle.
Over-Draft (OD) account as an underlying account in UPI

This feature lets you add your overdraft account to the main account. This option
is very helpful when you need to give more than you have in your main bank
account. Then you can use your overdraft account to spend the money. However,
you can spend money from your overdraft account until a certain limit, but,
overall, this feature is very helpful for users who use their current bank account
on UPI.
For any OD accounts, whenever a customer needs to check balance of his OD

account, customer's bank shall return 2 balances i.e. available & actual/usable
balance. All UPI Apps need to display the same",

 UPI acts as a digital channel for accessing the OD account. On-boarding and
registration processes for OD account remains same as the existing CASA
accounts.
 Customer discovers/fetches the existing OD account and links to UPI for

transaction.
 Customer has a choice to set new UPI ID/UPI Pin or use existing UPI ID/UPI Pin
(used for current linked UPI account), as decided by his/her bank.
 A transaction to OD linked UPI ID would mean a repayment of OD by the

customer.
 P2P & P2M transactions are allowed from a secured OD account. However, for
unsecured OD accounts, only P2M transactions are permissible (excluding the
categories prohibited by any regulator).
 Bank is responsible to get agreement on terms and conditions agreed with the
customer.
 All existing UPI dispute management rules shall apply for the transactions.
 The OD providing bank must take the required consumer consent and make
him aware about the terms and conditions of taking OD from the bank.
 The OD providing banks must communicate to the customer the due dates,
outstanding amount, interest charges or any such information required at
regular basis.
Note:
The customer account balances cannot be stored or used by PSP Bank or 3rd party
app provider for any purpose as 'Customer Sensitive payment data'. Members
may refer UPI circular no NPCl/UPl/OC No. 44/2017-18 dated January 11th 2018.
This applies to UPI 2.0 equally.
Invoice in the Inbox Function (view attachment & pay)

Most of the users care about their money, and while transacting online, the
majority of the users want to make sure that the transaction amount is set
correctly. That’s why National Payment Corporation of India (NCPI) has added this
feature on the UPI 2.0. For this function, users will get an invoice in their UPI inbox
before making the transaction where all the details about the transaction will be
mentioned clearly so that the user can make sure the amount he or she is
transferring is accurate.
(Using this feature customer can check/verify the invoice or attachment prior to
authorizing the payment via a secure link received in the collect/intent message.
To start with, the facility can be availed by verified merchants.)
 This creates a provision by which the merchants can share Invoices with
customers before the transaction is authorized.
 This provision requires all UPI Apps to display an option -'Click on attachment
to view details’ or equivalent and open the same in a browser or equivalent
display with the facility of 'Return’ back to the main app, to the user.

 This option is feasible for collect, intent and OR code-based transactions.
 Transaction history details should also reflect the link under which the Invoice
was presented and the same should be retained for at least 2 months by the
merchant.
One Time Mandate

This is the most interesting and helpful feature for most of the users who love to
shop online using cash on delivery as their payment method most of the time.
This feature can be used on UPI 2.0 while you purchase any product or get any
service like OLA etc. online.
Consumer can pre-authorize a transaction and block the funds in his account for
a debit to be initiated later. UPI mandate can be used in a scenario where money
is to be paid later after obtaining the service; however, the money in the account
gets blocked instantaneously. The customer accounts shall get debited when the
UPI mandate is executed by the merchant or payee. The mandate is digitally
signed and stored at customer’s account holding bank and also customer’s PSP
bank (app providing bank). During the debit the customer’s account holding bank
and customer’s PSP bank need to validate the digital signature and verify the
parameters.
 The mandate shall have key parameters such as "purpose code", "from & to
date", "amount” & "frequency” (set to 'One time').
 Customer can authorize one time use mandates to different or same payee’s at
the same time.
 UPI mandate can be created by push or pull transactions i.e. QR, Intent, Collect
or by create mandate option in UPI App. The mandate cannot be initiated by
Payee for Person to Person (P2P) transaction.
 A UPI Mandate creation is fully authorized by the consumer by two factor

authentications using 'what you know' (UPI Pin) and 'what you have' (Device
binding).
 User/Merchant can Create, Modify or revoke the UPI Mandate as per defined
rules. For some use cases the modification may not be allowed or allowed only
up to specific date.
 UPI mandate can be executed up to the amount authorized by the consumer.

Once executed and if partial, the remaining amount is returned to the
customer’s account. The customer’s bank shall remove the block after expiry of
the mandate.
 Till the time mandate is executed, the funds remain in blocked condition in
customer’s account and he/she continues to earn an interest depending on the
type of underlying account.
 All existing UPI dispute management rules shall apply for the transactions.
 The notification to customer on both stages, i.e. block and mandate execution
(debit) is mandatory.

 In case of revocation (wherever permissible), the block on the money should
be released immediately reinstating the money to the customer’s account. The
revocation date should be prior to the execution date/ expiry date.
 The bank providing mandate with block functionality shall return 2 amounts on
balance inquiry i.e. available and actual/usable balance or Sanctioned Limit
and Drawing Power. All UPI Apps need to display the same.
If you pay using the One Time Mandate feature of the UPI 2.0, it will automatically
block the amount on your account, but it won’t be deducted until you get the
product or service completely. This will prevent problems which comes when you
pay online but don’t get delivered to your address. If the order gets cancelled, the
amount will also be unlocked from your UPI 2.0 account, and you will be able to
reuse it.
Signed Intent And QR Code
This option let users use signed QR codes to accept payments online using UPI
2.0. This basically, makes sure that the merchant is trustworthy and verified. Then
the payment will be made securely by scanning the signed QR code. This feature
improves the connection between users and merchant and thus online
transactions will be easier to use for the normal public.
Aadhaar Pay - AePS
Aadhaar Enabled Payment System

In order to further speed track Financial Inclusion in the
country, Two Working Groups were constituted by RBI
on Micro ATM standards and Central Infrastructure &
Connectivity for Aadhaar based financial inclusion
transactions with members representing RBI, Unique
Identification Authority of India, NPCI, Institute for
Development and Research in Banking Technology
and some special invitees representing banks and
research institutions.
The working group on Micro ATM standards & Central

Infrastructure & Connectivity has submitted its report
to RBI. As a part of the working group it was proposed
to conduct a Lab level Proof of concept (PoC),
integrating the authentication & encryption standards
of UIDAI, to test the efficacy of Micro ATM standards
and transactions using Aadhaar before they are put to
actual use. The PoC was successfully demonstrated at
various venues.
We can say that AePS is a bank led model which allows online interoperable
financial transaction at PoS (Point of Sale / Micro ATM) through the Business
Correspondent (BC)/Bank Mitra of any bank using the Aadhaar authentication

The only inputs required for a customer to do a transaction under this scenario
are: -
 IIN (Identifying the Bank to which the customer is associated)
 Aadhaar Number
 Fingerprint captured during their enrollment
Objectives:
 To empower a bank customer to use Aadhaar as his/her identity to access
his/ her respective Aadhaar enabled bank account and perform basic
banking transactions like cash deposit, cash withdrawal, Intrabank or
interbank fund transfer, balance enquiry and obtain a mini statement
through a Business Correspondent
 To sub-serve the goal of Government of India (GoI) and Reserve Bank of
India (RBI) in furthering Financial Inclusion.
 To sub-serve the goal of RBI in electronification of retail payments.
 To enable banks to route the Aadhaar initiated interbank transactions
through a central switching and clearing agency.
 To facilitate disbursements of Government entitlements like NREGA, Social
Security pension, Handicapped Old Age Pension etc. of any Central or State
Government bodies, using Aadhaar and authentication thereof as supported
by UIDAI.
 To facilitate inter-operability across banks in a safe and secured manner.
 To build the foundation for a full range of Aadhaar enabled Banking services.
How to get it:

 Provide KYC (Know Your Customer) information to open a new account
 Aadhaar Number should be linked with bank a/c
Service Activation:
 None
 1-2 minutes post Aadhaar seeding
What is required for Transaction?

 Micro ATM
 Remember Aadhaar
 Give Bank name
 Present self (Aadhaar holder) with Bio-metrics (Finger and/or IRIS)
 Assisted mode
Transaction Cost:
 NIL to customer
 Merchant or BC may get charged or paid based on bank‘s discretion
Disclaimer: The transaction costs are based on available information and may vary
based on banks.
Services Offered:
 Balance Enquiry
 Cash Withdrawal
 Cash Deposit
 Aadhaar to Aadhaar funds transfer
 Payment Transactions (C2B, C2G Transactions)

Funds Transfer limit:
 Banks define limit. No limit for RBI.
Disclaimer: The funds transfer limits are based on available information and may
vary based on banks.
Service Available from no. of operators:
 118 banks
 Interoperable
BHIM Aadhaar Pay

BHIM Aadhaar Pay is meant for merchants to receive digital payments from
customers over the counter through Aadhaar authentication. It allows for any
merchant associated with any acquiring bank on BHIM Aadhaar Pay service, to
allow the merchant to accept payment from a customer of any bank, by
authenticating the customer’s biometrics – currently only fingerprints, directly
from the customer’s Aadhaar enabled bank account and receive the sale proceeds
instantaneously directly into merchant’s own bank account.
To be able to effect the same, the merchant must have an Android mobile with
the BHIM Aadhaar app and a certified biometric scanner attached with the mobile
phone on the USB port AND both the merchant and customer should have had
linked their Aadhaar numbers to their bank accounts respectively.
 Facilitates digital payments using thumb imprint on a merchant’s biometric

enabled device
 App is based on UPI
 App made for merchants and shopkeepers but payers enjoy the benefits
 BHIM Aadhaar Pay is a digital payment acceptance solution.
 It is a merchant mobile application using an Android smartphone and
biometric device
 Meant for merchants to receive digital payments from customers over the
counter through Aadhaar authentication
 Customer performs transaction by providing his Aadhaar number and
biometric.
 The transaction will be interoperable in nature allowing any bank customer
to transact on BHIM Aadhaar Pay.
 The merchant funds will be credited real time to the merchant account
linked at the time of registration after successful completion of the
transaction.
 The per transaction limit is Rs. 2000/-
 BHIM Aadhaar Pay is different from BHIM (NPCI UPI’s Product).
Features:
 Only Aadhaar number linked to Bank account required for making
payments.
 Fingerprints used for authentication.
 No need to remember passwords, Card PIN and wait for OTP.
Benefits:
 No need to carry any credit/debit card, cash, cheque or mobile wallets.
 Reduction of PoS terminals.
 Customer does not need to download any app when making payments.

 Mobile phone not required while making payments.
 More secured than cash, card, mobile wallets as customer needs to be
physically present for making payments.
Requirements for the merchant to start using BHIM Aadhaar Pay:
 Aadhaar seeded account with Bank.

 STQC Certified Biometric Reader with Micro USB / USB C-Type connector.
 Android smartphone with Android version 4.2 or higher with internet
connectivity and OTG support for connecting biometric device.
 Phone should be able to power the biometric reader.
Steps to follow before going Live:
 Download Bhim Aadhar Pay.

 Merchant should fill the Application form and sign the Merchant Agreement
 On boarding registration process and Agreement will be carried through
Zones
Process Flow of BHIM Aadhaar Baroda Pay:

Merchant Login
 Install Aadhar Payment Application in the smart phone.
 The icon will appear on phone screen after successful installation. Click on
the Application Icon to launch the application.
 Enter Aadhar Number of the Merchant and click on “Proceed”
 Application will redirect to fingerprint capturing page. Capture Fingerprints
of the Merchant for UID based authentication.
Merchant Pay Transactions:

 Click on Aadhar Pay option.
 Select the bank of the customer and enter Aadhaar number of customer
along with transaction amount. Click on “Aadhar Pay” to proceed with the
transaction.
 Click on “Yes” to confirm
 Application will redirect to fingerprint capturing page. Capture Fingerprints
of the customer for UID based authentication and click on “Proceed”.
 Below Receipt will be generated on phone screen after successful
transaction.
 Successful payment message displayed on mobile screen of the Merchant
with reference number.
 Click on “OK” to continue.
Cost of Biometric device provided to merchants are recovered as per

nature of Institutions provides as follow
Select Institution
 These institute are selected by the Government.
 Compulsory using digital payments as mode of accepting payment from the
customer like AIIMS, PDS.
 In such cases bank need to absorb the device cost instead of recovering
from the institute.

State Government Subsidies
 State government is facilitating the supply by offering devices at subsidized
rates.
 In such cases difference between the cost of the device and subsidy
obtained will be absorbed by the Bank.
Corporate Institutions
 Bank will collect cost of devices upfront from such Institutions.
Merchants in Tier 5 and Tier 6 cities
 NABARD provides subsidy for device provided to merchant who belongs to
Tier 5 and Tier 6 cities.
 In such cases difference between the cost of the device and subsidiary
obtained from the NABARD is absorbed by the bank.
BBPS - BOI BillPay
Bharat Bill Payment System (BBPS) - BBPS - The One stop destination for
all utility bills:
BBPS stands for Bharat Bill Payment System. The Bharat bill payment 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
.
Now days, more than 45 crore bills comprising
 Electricity
 Broadband postpaid
 Landline postpaid
 Mobile postpaid
 DTH
 Water and
 Gas are permitted under BBPS.
This initiative will provide a major push to digital payments as it is a big step
forward in formalizing the bill payment system in the country.”
Currently, approximately 50 large billers in five utility sectors have been on-
boarded.

Our Bank is now live on Bharat Bill Payment System-The One stop destination for
all utility bills
BOI Bill Pay is an integrated, inter operable and dedicated bill payment solution
that allows Bank Of India customers to make electricity, water, gas, mobile bill
payments and quick recharge for DTH and Prepaid Mobile using BOI Debit Card.
Payment option such as minimum, full, partial, excess, cut off (specified payment
duration) and penalty payment (payment after due date).
BOI Bharat QR
Bharat QR code is an interoperable payment acceptance solution that supports

Visa, MasterCard. Amex and RuPay cards & BHIM-UPI for wider acceptance. Bharat
QR code will enable rapid rollout of digital payments acceptance infrastructure
throughout the country, as it does not involve any upfront investment in Point of
Sale (PoS) machine.
To facilitate massive rollout in a short span of time, Bharat QR code-based

payment solution is introduced with following advantages:
 Bharat QR code does not require any upfront expenditure.

 Bharat QR code is a single unified QR code capable of accepting payments
from Visa, MasterCard, RuPay Cards for wider acceptance.
 Customer can easily make payments through Bharat QR code and does not
require to carry physical Debit or Credit card.
 The risk of data theft or security issues through tampered or cyber-
compromised point of sale devices is minimized.

 Bharat QR code supports dynamic QR codes, which may be printed on
electricity bills, gas bills and other utility bills to make payments to the
respective vendors.
 Merchants accepting the payment through Bharat QR code, receives the
amount directly in their Bank accounts.
Bank of India Bharat QR – Consumer app is a QR code-based payment solution

for Bank of India consumers. It offers a hassle free and secure way to make
payments to merchants.
It is a unique solution where the Mobile application can make payment without
the need of carrying a physical card.
Consumer scans the Qr code presented by the merchant and initiates the
payment through app.
Features:
 Interoperability among QR based payment products of different networks:
RuPay, Visa, MasterCard and Amex.
 Substitute for PoS Terminals.
 Low cost acceptance payment solution.
 Push based transaction i.e. transaction originates from card holder.
 No need to share physical card with merchant.
Requirement:
 Bank application which supports Bharat QR code (Required for the card
holder to make payment)
 Merchant’s Bharat QR code (Provided by bank to receive payment)
Way forward:
 28 Acquiring Banks and 28 Issuing Banks live on Bharat QR
 Future ready to accept payments from other channels like UPI, Aadhaar
Pay, IMPS, BBPS
Bank of India Bharat QR has a number of benefits as below:

1. Consumer pays by just scanning Qr code.
2. Link Multiple cards into the app for payment.
3. Notifications for Payments received.
4. Change mPin of app.
Payment Gateway
The Payment Gateway (PG) enables merchants, corporate and Government

entities to process online transactions via the use of Debit Card, Credit Card, IB,
UPI etc.
PG supports online payment whether on the Internet or any other electronic

channel such as Interactive Voice Recognition (IVR), kiosk, and call center with
secure protection and integrity.

How does it work?
Gateway checks for validity, encrypts transaction details, ensures they are sent
to the correct destination and then decrypts the responses which are sent back
to the shopping cart / billing / account system.
It is integrated with a variety of shopping cart software, databases, Internet

merchant accounts and protocol exchange servers.
Advantages of payment gateways

 This method of payment has many advantages over other methods, such
as:
 Much faster (and easier) than cheques or manual credit card processing
 Much more secure than manual credit card processing
 No need for the customer to jump between your site and a third-party site
(such as PayPal) to perform a transaction
Benefits to the Bank

 Current Account with the bank
 Good float preferably in current account
 Retention of existing customers
 Acquiring additional business through existing customer referrals due to
customer service
 Acquisition of new customers
 Readymade MIS to the merchants
Selection of merchants
 Our existing customers
 Through marketing
 Through tenders available in newspapers
 Through websites
Target Clientele:
 Schools College – Education Fees
 Govt Offices - MTNL etc. – Utility bills , Collection of royalty
 Collection of E-auction amt
 Collection on account of sale of books
 Collection of subscriptions
 Collection of donations etc.…
Customer Satisfaction:
 Ready availability of MIS
 Collection expenses avoided
Our Tie-ups:
 Billdesk
 Payu India
Basic Fee Structure

Credit Card Charges – 1.1% to 1.9%*
Debit Card Charges – 0.75% upto Rs. 2000/-*
1.0% over Rs. 2000/-*
Internet Banking – Rs.15.00 to Rs.17.00*
(*Service Tax as applicable)

Door Step Banking
Present day scenario in Banking has undergone tremendous change and the
stress is on availability of banking facilities at customer’s doorstep. With this in
mind, Bank of India has started providing Door Step Banking facilities to its
premium clients.
Eligibility:
 All Corporate customers having value/PSUs/Government departments.
 High Net Worth individuals.
 Full KYC compliance prior to commencement of the service.
Registration:
 Customers to apply for the service through the Branch where they
maintain their Account.
 Upon fulfilling the eligibility listed above, their request will be registered.
 Thereafter execution of Agreement with the Bank would be done.
 Customers to apply for the service through the Branch where they
maintain their Account.
 Upon fulfilling the eligibility listed above, their request will be registered.
 Thereafter execution of Agreement with the Bank would be done.
 Officer from Zonal office shall be nominated as coordinating officer and his
contact details shall be shared with the customer. In case of need,
customer/vendor can contact the coordinating officer for resolution of
issue
Services provided:
 Cash Pick on Daily/Call basis
 Cash Delivery
 Cheque pick up
 Delivery of DD/Pay-order
 For customers who register for cash pick up on daily basis, cheque pick
up/draft delivery would be done initially without any charges.
 Pick up on call basis: Registered customers to call branch minimum 24
hours in advance and inform quantum and time of pick up. Branch would
then tie up for pick up with the vendor (service provider).
Maximum Limit:
 For pick up – Rs.100.00 lakhs per day.
 For delivery – Rs.50.00 lakhs per day
Denomination:
 Notes below Rs.100/- will not be accepted.
Cheque Pick up:

 Cheques along with paying in slips will be collected by CE in tamper proof
sealed envelopes and handed over to the Branch. To prevent misuse,
customer to cross the cheques and write 15-digit account number on the
reverse of the cheque.

Draft Delivery:
 Delivery of DD will be done in tamper proof envelopes (issuance of DD by
debit to account) as per customer’s request in writing/cheque only.
Cash Delivery:
 Cash delivery will only be in packets of 100 pieces.
 Letter of Intent issued to vendor will contain details of persons to whom
cash is to be delivered with their photo id.
 Cash packets will be put in tamper proof bags in front of CCTV cameras
and CE, sealed with numbered tamper proof seals which will be written on
delivery order.
 Customer will confirm that the bag and seal are not tampered, tally the
seal number with the one on delivery order.
Charges:
In addition to vendor’s charges, Bank will also levy cash handling charges –
presently as under:
 Rs.25/- per pick up + Rs.8/- per packet (denomination – Rs.500/- /
Rs.2000/-)
 Rs.10/ - per packet (denomination – Rs.100/-)
 FREE - Up to 10 packets – (1 packet – 100 pieces)
 Incidental charges like parking charges for van at customer’s place, toll tax
etc would be to customer’s account.
 Service tax as applicable to be borne by customer.
 Charges will be debited to customer’s account on monthly basis based on
authorization.
Benefits:
 Helps retention of existing clients
 Income (after paying off vendor’s bill) can be substantial. Branch, hence,
to negotiate good terms with the customer.
 Availability of float balance would add to Bank’s income.
 Customised MIS is available. Based on this, both Bank & customer can
ensure deposition of amounts.
 Customer’s staff savings accounts can be opened and third party and retail
loan products can also be considered to them.
 Can enlist customer’s help for addition of clients.
NACH
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 centralized 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 & corporates including a refined
Mandate Management System (MMS) and an online Dispute Management System
(DMS) coupled with strong information exchange and customized 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.
NACH’s Aadhaar Payment Bridge (APB) System***, developed by NPCI has been
helping the Government and Government Agencies in making the Direct Benefit
Transfer scheme a success. APB System has been successfully channelizing the
Government subsidies and benefits to the intended beneficiaries using the
Aadhaar numbers. The APB System links the Government Departments and their
sponsor banks on one side and beneficiary banks and beneficiary on the other
hand.
NACH System can be used for making bulk transactions towards

distribution of: -
 Subsidies
 Dividends,
 Interest,
 Salary,
 Pension etc.
Bulk transactions towards collection of payments pertaining to-

 Telephone,
 Electricity,
 Water,
 Loans,
 Investments in mutual funds,
 Insurance premium etc.
NACH – CR:
NACH – CR is used by us (BOI) for affording credit to a large number of
beneficiaries who are our customers

Single debit to the sponsor bank’s account and multiple credits to different
destination banks’ account
Important Features & Benefits
 MICR settlement
 Multiple file processing in a single settlement
 Customized MIS
 Cost effective
 Availability of Recall option before settlement
 Online Dispute Management System (DMS)
NACH Debit:
 NACH-DR provide a better & efficient Mandate based debit services to the
banks.
 Automated processing and exchange of mandate information electronically
with well-defined timelines for acknowledgement / confirmation.
 Each mandate needs to be accepted/authorized by the debtor bank before
the User can initiate a transaction
 Each mandate is uniquely identified by Unique Mandate Reference
Number (UMRN) which makes tracking of multiple mandate details
easier for customers.
 Bank can leverage on the existing CTS instrument scanning infrastructure
for scanning and maintaining repository of the mandate’s images
Important Features & Benefits

 Standardization and digitization of mandates
 Minimal time taken to activate the Mandate – same day processing
possible
 Simplification of the mandate acceptance and recording process
 Reduced operational cost for the banks and its clients
 Higher revenues
 Complete audit trail of the mandate during its lifecycle
 Unique identifier number allocated to each mandate (UMRN)
 Mandates can be processed by the member for any branch across the
country
 Allows Corporate clients to directly upload files for approval
 Functions on International Messaging Standard - ISO 20022
Existing Clients:
DICGC for bulk outward credits;
Target Group of Clients:

 All branches of Bank who need to send huge no. of remittances to
customers of other banks.
 Dividend payments using NACH platform.
 NBFCs, Registrars and Transfer agents for corporates and mutual funds
like Karvy etc.
*** Aadhaar Payment Bridge (APB) System

Aadhaar Payments Bridge System facilitates end – to end processing of bulk
electronic payment instructions primarily facilitating the government departments
to disburse the Direct Benefit Transfers (DBT). In APB system, transactions are
routed to a bank based on the mapping of Aadhaar number to the IIN of a bank.

The participating banks have to perform a number of activities to complete the
mapping and un-mapping of Aadhaar number in the NPCI mapper database.
The APB System sub-serves the goal of Financial Inclusion and provides an
opportunity to the Government to attempt financial re-engineering of its subsidy
management program. The implementation of APB System has also led to
electronification of a large number of retail payment transactions which were
predominantly either in cash or cheque.
RTGS/NEFT/IMPS Contact Numbers and E-mail IDs
RTGS/NEFT/IMPS
RTGS Rtgs.boi@bankofindia.co.in (022) 67447092/ 93
(022) 61312984/ 61312992/
NEFT Boi.neft@bankofindia.co.in
61312997
IMPS Boi.imps@bankofindia.co.in (022) 61312994/ 61312995
UPI Support.MobileApps@bankofindia.co.in (022) 67447025
RTGS System
(Updated as on October 30, 2019)
1. The acronym 'RTGS' stands for Real Time Gross Settlement, which can be
explained as a system where there is continuous and real-time settlement of fund-
transfers, individually on a transaction by transaction basis (without netting). 'Real
Time' means the processing of instructions at the time they are received; 'Gross
Settlement' means that the settlement of funds transfer instructions occurs
individually.
2. Are the payments under RTGS final and irrevocable?

Considering that the funds settlement takes place in the books of the Reserve
Bank of India, the payments are final and irrevocable.
3. What are the benefits of using RTGS?

Ans. RTGS offers many advantages over the other modes of funds transfer:
 It is a safe and secure system for funds transfer.

 RTGS transactions / transfers have no amount cap.
 The system is available on all days when most bank branches are
functioning, including Saturdays.
 There is real time transfer of funds to the beneficiary account.
 The remitter need not use a physical cheque or a demand draft.
 The beneficiary need not visit a bank branch for depositing the paper
instruments.
 The beneficiary need not be apprehensive about loss / theft of physical
instruments or the likelihood of fraudulent encashment thereof.
 Remitter can initiate the remittances from his / her home / place of work
using internet banking, if his / her bank offers such service.
 The transaction charges have been capped by RBI.
 The transaction has legal backing.
4. How is the processing of RTGS different from that of National Electronic

Funds Transfer (NEFT) System?

Ans. NEFT is an electronic fund transfer system in which the transactions received
up to a particular time are processed in batches. Contrary to this, in RTGS, the
transactions are processed continuously on a transaction by transaction basis
throughout the RTGS business hours.
5. Is RTGS a 24x7 system or are there some timings applicable?
Ans. RTGS is not a 24x7 system. The RTGS service window for customer
transactions is available to banks from 7 am to 6 pm on a working day, for
settlement at the RBI end. However, the timings that the banks follow may vary
from bank to bank.
6. Is there any minimum / maximum amount stipulation for RTGS

transactions?
Ans. The RTGS system is primarily meant for large value transactions. The
minimum amount to be remitted through RTGS is ₹ 2,00,000/- with no upper or
maximum ceiling.
7. What about processing charges / service charges for RTGS

transactions?
Ans. With effect from July 01, 2019, the Reserve Bank has waived the processing
charges levied by it for RTGS transactions. Banks may pass on the benefit to its
customers.
With a view to rationalize the service charges levied by banks for offering funds
transfer through RTGS system, a broad framework of charges has been mandated
as under:
a) Inward transactions – Free, no charge to be levied.
b) Outward transactions - ₹2,00,000/- to 5,00,000/-; not exceeding ₹24.50/-;

(exclusive of tax, if any)
Above ₹ 5,00,000/-: not exceeding ₹ 49.50/-. (exclusive of tax, if any)
Banks may decide to charge a lower rate but cannot charge more than the rates
prescribed by RBI.
8. What is the essential information that the remitting customer needs to

furnish to the bank for making a remittance?
Ans. The remitting customer has to furnish the following information to a bank for
initiating a RTGS remittance:
i. Amount to be remitted
ii. The account number to be debited
iii. Name of the beneficiary bank and branch
iv. The IFSC number of the receiving branch
v. Name of the beneficiary customer

vi. Account number of the beneficiary customer
vii. Sender to receiver information, if any
9. How would one know the IFSC number of the receiving branch?
Ans. The IFSC number can be obtained by the remitter (customer) from his / her
bank branch. Alternatively, it is available on the cheque leaf of the beneficiary.
This code number / bank branch information can be communicated by the
beneficiary to the remitting customer. The list of IFSCs is also available on the RBI
website at the link http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0815.xlsx
10. Do all bank branches in India provide RTGS service? How can a
remitting customer know whether the bank branch of the beneficiary
accepts remittance through RTGS?
Ans. For a funds transfer to go through RTGS, both the sending bank branch and
the receiving bank branch need to be RTGS enabled. Presently, there are more
than 140,000 RTGS enabled bank branches, the list of which is available on the
RBI website at the link
http://rbidocs.rbi.org.in/rdocs/RTGS/DOCs/RTGEB0815.xlsx
11. What care should be taken while originating a RTGS transaction?
Ans. The following should be ensured while putting through a funds transfer
transaction using RTGS –
 Originating and destination bank branches are part of the RTGS network.
 Beneficiary details such as beneficiary name, account number and account
type, name and IFSC of the beneficiary bank branch should be available
with the remitter.
 Extreme care should be exercised in providing the account number of the
beneficiary, as, in the course of processing RTGS transactions, the credit
will be given to the customer’s account solely based on the account number
provided in the RTGS remittance instruction / message.
12. In RTGS, why is credit to the beneficiary given solely on the basis of
account number?
Ans. Transactions in RTGS happen in real time and it is not possible to match
name and account number before affording credit to the beneficiary. Since name
in the Indian context is spelt differently and would not really match with that
available with the beneficiary bank, the process of affording credit solely based on
the account number of the beneficiary has been enabled.
13. What is the time taken for effecting funds transfer from one account
to another through RTGS?
Ans. Under normal circumstances, the beneficiary branches are expected to

receive the funds in real time as soon as funds are transferred by the remitting
bank. The beneficiary bank has to credit the beneficiary's account within 30
minutes of receiving the funds transfer message.

14. Can a remitting customer initiate a transaction for a future date?
Ans. The RTGS system accepts future value dated transactions from the remitting
bank for settlement on RTGS working days up to three days’ in advance. Such
transactions will be placed in the queue and shall be settled on the basis of the
value date of the transaction.
15. Can a transaction be originated to draw (receive) funds from another

account?
Ans. No. RTGS is a credit-push system i.e., transactions can be originated by the
payer / remitter / sender only to pay / transfer / remit funds to a beneficiary.
16. Can an RTGS transaction be tracked? Would the remitting customer

receive an acknowledgement of money credited to the beneficiary's
account?
Ans. While the customers do not have the facility to track the transaction, the RBI
has implemented the feature of positive confirmation in an RTGS transaction.
Under this, the remitting bank would receive a message from RBI (through the
beneficiary bank) that the money has been credited to the beneficiary bank /
customer account. Based on this, the remitting bank should advise the remitting
customer that money has been credited to the receiving bank’s beneficiary
account.
17. Would the remitting customer get back the money if it is not credited
to the beneficiary's account? Is there any time frame prescribed for it?
Ans. Yes, if it is not possible to credit the funds to the beneficiary customer’s
account for any reason, the funds received by the RTGS member bank will be
returned to the originating bank within one hour of receipt of the payment at the
Payment Interface (PI) or before the end of the RTGS Business day, whichever is
earlier. Once the money is received back by the remitting bank, the original debit
entry in the customer's account needs to be reversed.
18. Is a customer eligible to get compensation for delay in returning the

payment?
In case of any delay in returning the failed payment, the originating customer is
eligible to receive compensation at current repo rate plus 2%.
19. Whom can a customer contact, in case of non-credit or delay in

credit to the beneficiary account?
Ans. The customer can contact his / her bank / branch if there is an issue of delay
/ non-credit to the beneficiary account. If the issue is not resolved satisfactorily,
complaint may be lodged at email to - cgmcepd@rbi.org.in or by post at following
address giving UTR number and details of the issue -
The Chief General Manager

Customer Education and Protection Department

1st Floor, Amar Building, Fort
Reserve Bank of India
SBS Road, Fort
Mumbai, 400 001
20. What is UTR number?
Ans. Unique Transaction Reference (UTR) number is a 22-character code used to

uniquely identify a transaction in RTGS system.
(These FAQs are issued by the Reserve Bank of India for information and general guidance
purposes only. The Bank will not be held responsible for actions taken and/or decisions
made on the basis of the same. For clarifications or interpretations, if any, one may be
guided by the relevant circulars and notifications issued from time to time by the Bank.)
Timings for RTGS

Sr.No. Event Time
1 Opening of Business 07:00 hours
2 Customer transactions (Initial cut-off) 18:00 hours
3 Inter Bank Transactions (Final Cut-f) 19:45 hours
4 IDL Reversal 19:45 hours – 20:00 hours
5 End of Day 20:00 hours
IMPS
The full form of IMPS is Immediate Payment Service. It is launched in 2010 by
Indian government and is facilitated by NPCI (National Payment Corporation of
India). As the name suggests, it completes transactions immediately. It is a
service which allows you to make payments using your mobile number. It uses
mobile number or Aadhaar number to connect to bank accounts and complete
payments. Hence, it is a secure method for transferring funds. The services of
IMPS are available 24X7 and even on holidays.
IMPS can be used to avail many services. One of the government’s most praised
service *99# banking is also based on IMPS.
How It Works?
IMPS uses mobile number or Aadhaar number to connect with a bank account.
When you send money to anyone using IMPS, it first connects you to your bank
account using your mobile number. Unlike NEFT and RTGS, it does not transfer
funds directly to the beneficiary’s account. But it first transfers funds from your
account to your mobile number. Then it transfers that fund from your mobile
number to his/her mobile number. And at last from beneficiary’s mobile number
to his/her account.
The Benefits of IMPS
 Real-time domestic fund transfer. Money will be credited in Beneficiary’s
account within a few seconds.
 IMPS is fast, safe, secure and cost effective.
 No minimum amount limit on transactions. You can even transfer ₹ 1 only
with IMPS.
 IMPS is available 24X7 and on holidays also.
 You can make intra bank as well as interbank payments.
 Can be used on a mobile phone, internet banking and even ATMs (IMPS
through ATMs are presently not available for BOI customers).

 Knowing beneficiary’s Account number and IFSC is not compulsory in
IMPS. You can transfer funds using MMID, Aadhaar number and mobile
number only.
 You get the Debit & Credit Confirmation by SMS immediately.
You can avail following services using the IMPS banking

1. Funds transfer using mobile number and MMID
2. Funds transfer using Aadhaar number (not applicable for BOI customer)
3. Funds transfer using IFSC and Account number
4. Fund transfer to “Chillr” or “Non Chillr” customers
5. UPI – It is a mobile app-based payment method which uses VPA of
beneficiary. UPI works on IMPS structure.
6. Merchant payments – You can pay to a merchant using his MMID.
7. USSD banking (*99# Banking) – It gives you fund transfer facility through
the feature phone
8. QSAM – By dialing *99*99# and providing Aadhaar number when
prompted for, you can know the Aadhaar and bank account link status.
ATMs
ATM machine is broadly classified in three categories
(1) White Label ATM (WLA)
(2) Brown Label ATM
(3) Bank own ATM
What is White Label ATM?

 The Automated Teller Machines (ATMs) which is set up, owned and operated
by non-banks is called as White Label ATM (WLA).
 Features and Functions of White Label ATM are same as that of Normal ATM
machines.
 Difference is this ATM machine does not have any branding of Bank.
 These machines are usually deployed by NBFC (Nonbanking Financial
Institutions).
 The basic idea about White Label ATM is to increase geographical spread of
ATM so that more number of people can be incorporated under financial
inclusion program.
What we should know about White Label ATM?

 White Label ATMs are like normal ATM. However, cash deposit or cash
acceptance facility is not permitted at the WLAs.
 At White Label ATM you will not find logo of any bank like ICICI, SBI etc.
You will find logo of White Label ATM operator on these ATMs.
 An Individual can use their ATM-cum-debit cards, credit card for the cash
withdrawal at these ATMs.
 In case of fail transaction while using white label ATM you need to report to
card issuing bank. ATM card issuing bank is responsible of resolving conflict.
 Cash Management at WLA will be done by sponsor bank. Sponsor bank will
make an arrangement with NBFC for the cash at respective locations.
 The Grievance Redressal Mechanism will be the same as that of normal
bank ATMs.
How White Label ATMs Functions?

White Label ATMs are operated by NBFC. NBFC need a bank sponsor to settles all
issues related to cash management, transaction settlement with other banks etc
for this ATM. The sponsor bank has to tie up with the other bank at the place
where it is not present.
What is Brown Label ATM?

 Brown Label ATM is sharing cost concept. In Brown Label ATM hardware is
owned by service provider, but cash management and network connectivity
are provided by sponsor bank.
 Features and functions of Brown Label ATM are same as that of normal ATM
Machine.
 This machine contains Logo of sponsor bank.
 Brown Label ATM is cost effective solution for the banks.
Difference White Label ATM, Brown Label ATM
What is Bank own ATM?

The Automated Teller Machines (ATMs) which is set up, owned and operated by
banks is called as bank own ATMs. Responsibility of cash management, AMC,
security lies with banks.
DCC - Dynamic currency conversion
Dynamic currency conversion (DCC) or cardholder preferred currency (CPC) is a

process whereby the amount of a Visa or MasterCard transaction is converted by
a merchant or ATM to the currency of the payment card's country of issue at the
point of sale. This enables our international Customers to feel at home, with the
convenience to pay in their home currency
 DCC allows customers to see the amount their card will be charged,
expressed in their home currency.

 Facility is optional and cardholder will be given the option to avail the facility
at the time of making payment to the merchant, otherwise he can settle in
local currency in INR.
 DCC feature will be provided to MEs on their request, where the existing
terminal will be replaced by new terminal with DCC capability, at no extra
cost.
Yield from foreign card holders and benefits:
 Approx. 0.25% (when settled in INR)
 Excess of 1%, may go up to even 2.5 %
 Financial incentive on each transaction
(Resulting in substantial growth in non-interest income)
Card Acceptance Infrastructure
General public and the stakeholders are requested to furnish their specific and
actionable comments by 15th April 2016 to the Chief General Manager,
Department of Payment and Settlement Systems, Reserve Bank of India, Central
Office, 14th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001. Comments
may also be furnished by email by 15th April 2016.
PREFACE
The Reserve Bank of India (the Bank) has been encouraging reforms in the
payment and settlement systems of the country, leveraging on the benefits
derived from developments in technology. The policy and regulatory framework
addresses the need to put in place a bouquet of payment options both for
individual as well as institutional users while addressing the safety and security
requirements of the systems and the users.
The Bank has also been sharing and signaling the desired developments in
payment and settlement systems in the country through its Payment Systems
Vision Documents. An over-arching Vision for payment systems in recent times
has been the need to ensure greater adoption of electronic payments and migrate
towards becoming a “less-cash” society.
The efforts of all stakeholders have resulted in a growing trend in electronic

payments. The question of importance is whether further developments in this
regard should be left to the users themselves (market forces) or whether this
growing trend should be “managed” through appropriate policy framework. While
market-forces led growth may address the “economics” of the payments eco-
system, it may not always meet the requirements of all segments of users. A
structured policy intervention to promote electronic payments may have the
advantage of not only addressing the requirements of all sections of society but
also enable setting of achievable targets within a definite time-span which can be
monitored, reviewed and changed, if necessary.
The Reserve Bank of India has prepared this concept paper on policy framework
for expansion of card acceptance infrastructure in the country in consultation with
a few stakeholders. The paper outlines the broad contours of a multi-pronged

strategy to enhance the growth in acceptance infrastructure and usage of cards
including further rationalization of merchant discount rates (MDR) or merchant
fees for debit card transactions. In the Fourth Bi-monthly Monetary Policy
Statement, 2015-16 it was announced that in order to promote electronic
payments and use of cards for transactions, the Reserve Bank will put in the public
domain a concept paper for proliferation of card acceptance infrastructure in the
country, especially in the tier III to tier VI centres.
Introduction
1.1 The use of electronic channels for accessing banking and payment services is
on the rise and is poised for significant growth in the country. The Reserve Bank
has been initiating new policies as well as reviewing existing policy measures for
facilitating demand and supply of electronic payment services and also ensuring
safety and security of such transactions. Recent announcements of the
Government also support and reinforce the migration from cash payments to
promotion of card and other electronic payments.
1.2 In the eco-system of electronic / alternate payment mechanisms, card

payments are perhaps most recognizable. Further, the developments in e-
commerce sector have also been significant in encouraging electronic payments,
including card payments (credit/debit), which are gradually gaining significance.
With the implementation of Prime Minister Jan Dhan Yojana (PMJDY), the card
issuance under RuPay network has seen a tremendous growth in a short span of
time. Given the high issuance of debit cards to accounts opened under the PMJDY,
with benefits to account holders linked to usage of their RuPay debit cards, the
imperative to ensure greater usage of cards as well as enhance growth of
infrastructure is significant.
1.3 Card payments include payments made using debit cards, credit cards or
prepaid / stored value cards. Further, card payments could be done face-to-face
(card present / proximity payments) or carried out remotely (card not present /
online payments). In all situations, card payments involve a card holder, a
merchant / entity with infrastructure to accept card payments, a bank/institution
which issues the card and a bank/institution which sets up the infrastructure for
accepting card payments.
1.4 As such, even as the growth in ATM infrastructure may be necessary in the
short and medium term to meet the cash requirements of consumers, the focus
of this paper is on card payments and possible strategies to enhance its
acceptance as a means of payment for purchase of goods and services including
increasing the growth of related acceptance infrastructure.
Policy framework for safety and security of transactions

1.5 In the context of encouraging card payments and also to ensure that safety
and security requirements of card transactions provide the necessary confidence
to its users, the Bank has put in place specific policy measures over the last few

years for both card-present (CP) transactions (face-to-face, proximity payments)
as well as card-not-present (CNP) transactions (remote, online payments).
1.6 Some of these measures include:
 Online alerts to the cardholder for all card transactions – both CP and CNP
transactions irrespective of value of transaction to alert customers for
transactions done using their card/s; particularly in case of fraudulent
transactions, customers are made aware immediately so that preventive /
corrective steps can be taken by them immediately;
 Requirement for additional factor of authentication (AFA) for all CNP
transactions to authenticate transactions based on information that the
customer alone is supposed to know;
 Requirement of PIN@POS for all card present transactions using debit cards
to prevent usage of cloned cards and to authenticate transactions with the
PIN which the customer alone is supposed to know;
 Issuance of cards for international usage only on specific request by
customers, and if issued, it has to be EMV chip and PIN card to prevent
fraudulent usage of cloned magnetic stripe cards or online use of cards in
other countries where AFA is not required / mandated;
 Setting threshold value for international transactions done using existing
magnetic stripe cards enabled for international usage so as to reduce /
minimize loss in case of fraudulent use of such cards; and
 Migration of all cards to EMV Chip and PIN to reduce fraudulent use of cloned
cards and increase safety in CP transactions
Extant regulatory framework for MDR

1.7 In order to encourage all categories of merchants to deploy card acceptance
infrastructure and also to facilitate acceptance of small value transactions through
card payments, the Reserve Bank had rationalized the Merchant Discount Rate
(MDR)1 for debit cards with effect from September 2012.
1.8 Since then, the MDR for debit card transaction has been capped at 0.75% for
transaction values upto Rs.2000/- and at 1% for transaction values above
Rs.2000/-
Card transaction: Illustrative Work Flow
1.9 In order to appreciate the economics of card payments, it may be useful to

have a perspective on the entities involved in a card transaction and the generic
work flow in a card transaction.
Entities involved in the transaction:
 Merchant location: Entity selling goods and services

 Acquiring Bank: The bank which has installed the POS terminal at the
merchant location

 Card network: RuPay/ Visa / MasterCard, etc. (transaction routing and
settling agency)
 Customer / Consumer: Cardholder
 Issuing Bank: The bank which has issued the card to the customer
Type of transactions:
 ON-US Transaction: where the issuing bank and the acquiring bank are the
same entity
 OFF-US Transaction: where the issuing bank and acquiring bank are
different entities
Economics of card payments
1.10 Any policy framework structured to drive acceptance of card payments both
from merchant as well as from the consumer side, has to balance the concerns,
issues and challenges arising from all stakeholders. The economics of card
payments has significant costs and benefits to all stakeholders, a brief outline
(illustrative but not exhaustive) of which is given below:
Benefits of electronic / card payments:
1.11 The benefits accrue not only to individual users of card payments but also
have potential of benefits for the economy as a whole by:
 Providing faster, more secure and convenient way of payment for purchase
of goods and services;
 Reducing in cash handling costs leading to increased savings;
 Lowering transaction costs through greater operational efficiency;
 Facilitating better financial intermediation; and
 Providing greater financial transparency by enabling recording of all
economic activity, helping in reducing the proliferation of grey economy and
increasing tax revenue.
Costs and issues associated with card payments:
1.12 Even though there is the potential to reap the above benefits, there are
certain costs and issues that are associated with card payments which inhibit their
greater adoption. Some of these are outlined below for different stakeholder
segments:
 Merchants – costs related to payment of merchant fees, transparency and

taxation, KYC documentation, certification process related to safety and
security of transactions/systems, etc. Other issues that act as deterrents
include the fact that there could be various stages in supply chain where
cash payments are still made; through cash payments transactions are
completed immediately whereas settlement of card payments takes some
time for processing; etc.

 Consumers – annual fees for cards, levy of convenience charges / surcharge
on use of cards, feel of convenience generally associated with cash
payments, etc. Other related issues pertain to safety and security concerns,
fraud protection mechanisms, concerns regarding consumer grievance
redressal mechanism, etc. Last but not the least is the lack of availability of
card payment option especially where the consumer spends for day-to-day
personal consumption.
 Card issuing banks – costs associated with card issuance, replacement /
maintenance, ensuring security requirements at all times, system for
addressing consumer complaints and grievances, education and marketing,
promotions, putting in place risk and fraud monitoring systems, processing
chargeback claims and fraud liability, etc.
 Merchant acquiring banks – costs related to acquiring merchants including
capital cost of equipment and maintenance, integration with merchant
systems, ensuring compliance with certification, education and training, etc.
In addition, investment and constant upgradation of security and risk
management systems, fraud protection (underwriting risk), credit
evaluation risk, regulatory compliance, etc. are also issues that acquiring
banks have to deal with.
1.13 The subsequent chapters address the various issues coming in the way of
enhancing the usage and acceptance of card payments, and examine certain
strategies that may facilitate in enhancing the card payments infrastructure.
IMT
Instant money transfer - Cardless Cash Withdrawal Facility
Innovative, safe, simple and hassle-free domestic money transfer with cash out
facility.
 Self Service – Bank’s customer can himself initiate the transaction.

 24 * 7 * 365, facility availed both by initiator and beneficiary/ receiver.
 Our customer can send money to any beneficiary/ receiver who need not
be the customer of BOI or any Bank.
 Beneficiary/ receiver can withdraw money from any BOI IMT enabled ATM
without using a card.
 It is useful when beneficiary/ receiver requires cash instantly or emergency
Cash.
 It is also useful when beneficiary/ receiver does not have a Bank Account
or bank account details are not known.
IMT can be initiated / sent by our Bank’s customer either through Retail Internet
Banking or our Bank’s any IMT enabled ATMs. The beneficiary / receiver can
withdraw money, from our Bank’s any IMT enabled ATM, without using a card.
The withdrawal details are partially communicated to the beneficiary / receiver on
his mobile phone and partially by the sender.
The sender of IMT has pre requisite of registering his beneficiary / receiver for a
successful IMT. The registration can be done by our customers either through our
Retail Internet Banking or through sending a SMS from his registered mobile
number.

IMT through Internet Banking
IMT can be sent to receiver/ beneficiary by simply using our Retail Internet
Banking facility (with fund transfer facility), as under
 Our Bank customers can login to Bank’s Retail Internet Banking facility and
initiate IMT. Customer first register receiver/ beneficiaries by entering the
beneficiary's name, mobile number, address and his/her Pin code, which is
a one-time process.
 Post Registration of a receiver/ beneficiary, sender can initiate IMT by
mentioning the IMT Amount and Sender Code (This code should be kept
and shared ONLY with receiver/ beneficiary, as the same shall be required
by receiver/ beneficiary to withdraw cash from the ATM) and authenticating
the transfer.
Once the IMT is successfully issued, sender receives an SMS on his or her
mobile number containing the details of the IMT. The details present in the
SMS are:
- Beneficiary/ Receiver Mobile number
- The IMT amount
- IMT Validity Date (In case beneficiary/ receiver omit to withdraw IMT by
this date, IMT shall be cancelled by the system and amount shall be
credited back to sender’s account. Charges for the IMT shall not be
reversed.)
- IMT ID (a unique code which can be used to refer IMT transaction)
Once the IMT is successfully issued, receiver/ beneficiary receives an SMS on his
or her mobile number containing the details of the IMT. The details present in the
SMS are:
- The IMT amount
- IMT Validity Date (In case beneficiary/ receiver omit to withdraw IMT by
this date, IMT shall be cancelled by the system and amount shall be
credited back to sender’s account. Charges for the IMT shall not be
reversed.)
- SMS Pin (System generated code, required for IMT withdrawal)
IMT through ATM
Bank’ customer can also initiate IMT from Bank’s IMT enabled ATM, by providing
following details –
- Beneficiary/ Receivers Mobile number
- The IMT amount
- Sender Code (This code should be kept secret and shared ONLY with
receiver/ beneficiary, as the same shall be required by receiver/
beneficiary to withdraw cash from the ATM)
Beneficiary/ receiver registration by the sender, as a one-time activity is

mandatory. This receiver/ beneficiary’s registration can be done by either through
SMS or Bank’s Retail Internet Banking. The details of the same are provided in
section - IMT Beneficiary/ Receiver Registration.
Once the IMT is successfully issued, sender receives an SMS on his or her mobile
number containing the details of the IMT. The details present in the SMS are:
- Beneficiary/ Receiver Mobile number

- The IMT amount
- IMT Validity Date (In case beneficiary/ receiver omit to withdraw IMT by this
date, IMT shall be cancelled by the system and amount shall be credited back
to sender’s account. Charges for the IMT shall not be reversed.)
Once the IMT is successfully issued, receiver/ beneficiary receives an SMS on his
or her mobile number containing the details of the IMT. The details present in the
SMS are:
- The IMT amount
- IMT Validity Date (In case beneficiary/ receiver omit to withdraw IMT by this
date, IMT shall be cancelled by the system and amount shall be credited back
to sender’s account. Charges for the IMT shall not be reversed.)
- SMS Pin (System generated code, required for IMT withdrawal)
Instances, wherein Beneficiary/ Receiver registration is not done, IMT shall be
kept on hold, and sender is expected to provide the Beneficiary/ Receiver, within
24 hours, omitting which IMT shall be cancelled. In case of hold IMT, a SMS shall
be sent to the sender.
IMT Beneficiary/ Receiver Registration

Our Customer, as a one-time activity has to register’s receiver/ beneficiaries
details with the Bank.
In absence of receiver/ beneficiaries details from the customer to the Bank, the
IMT shall be in hold status for a maximum of 24 hours, post which it shall be
cancelled by the system. Bank shall endeavor to confirm the receiver/ beneficiary’s
registration to the sender over SMS.
This receiver/ beneficiary’s registration can be done by either through SMS or
Bank’s Retail Internet Banking.
Internet Banking
Our Bank customers can login to Bank’s Retail Internet Banking facility register
receiver/ beneficiaries by entering the beneficiary's name, mobile number,
address and his/her Pin code, which is a one-time process. These details can be
subsequently deleted.
SMS
Our Bank customers can send an SMS to +919223009988 from their registered
mobile number, with following details/ format –
IMT <Beneficiary Mobile Number>#<Beneficiary name>#<Beneficiary
Address>#<Beneficiary Add. Pin Code>
IMT Beneficiary/ Receiver Registration Deletion

The receiver/ beneficiary’s registration already done can be deleted by either
through SMS or Bank’s Retail Internet Banking. The deletion described here in
does not have any impact on already initiated IMT, but will impact future IMT by
sender.
Internet Banking
Login to Bank’s Retail Internet Banking facility and delete receivers/ beneficiary’s
registration under option - View/ delete beneficiary.
SMS
Send SMS +919223009988, with following details/ format –
IMT BENC # <Beneficiary Mobile Number>

IMT Withdrawal
IMT can be withdrawn by the receiver/ beneficiary from Bank’s IMT enabled ATM,
as a Card less withdrawal, where in receiver / beneficiary has to provide the
following details –
 Mobile number on which he or she has received the IMT details
 The Sender's Code (Communicated by Sender)
 The SMS Pin (Communicated to receiver/ beneficiary over SMS)
 The IMT amount
 Withdrawal of IMT is also notified to Sender through SMS.
Presently, partial withdrawal of an IMT is not allowed, hence IMT is to be

withdrawn in full.
IMT Blocking
IMT gets blocked, in case the beneficiary/ receiver exceeds three retries to
withdraw an IMT with wrong credential/ details. Once blocked, Beneficiary mobile
number is marked as Blocked – i.e. s/he cannot withdraw any IMT.
IMT once blocked, gets unblocked on the immediate next day.
IMT Limits
The present limits for IMT transactions are as under:
Sender limit - Rs.10,000 per transaction (Min. Rs. 100.00 and thereof in
multiple of Rs.100.00)
Beneficiary / Receiver limit – Rs. 25,000 per month
IMT Charges
For Customers – The sender will be charged of IMT fee of Rs. 25.00 (inclusive of
taxes) for every IMT transaction, he or she issues to a receiver/ beneficiary. This
charge shall not be reversed, in case the IMT expires or is cancelled or beneficiary/
receiver details are not provided to the Bank, as per the prescribed process.
However, there shall not be any additional charges for cancellation of an IMT.
For Staff – Rs.10.00 for every IMT transaction.
IMT Validity
A life of a successful IMT is only 14 days.
The IMT cancellation/ withdrawal only during this period, post which IMT is
reversed. The reversal is done for the IMT amount, by crediting the sender’s
account. However, IMT Charges/ fee is not reversed
Cancel IMT
The sender can cancel an unpaid IMT issued by him or her from either Bank’s IMT
enabled ATM or from Bank’s Retail Internet Banking.
To cancel an IMT, the sender needs to select CANCEL IMT and provide the IMT Id
(on ATM) / Payment Id (on Internet Banking) to cancel the IMT. The IMT Id is
communicated to the sender during the initiation of the IMT transaction, while
Payment Id is listed on the Cancel IMT screen on Internet Banking.
Cancellation of IMT is also notified to Sender and Beneficiary/ receiver through

SMS.

Check Status
The sender can check the IMT issued by him or her either Bank’s IMT enabled ATM
or from Bank’s Retail Internet Banking.
To check the status of an IMT, the sender needs to select Check Status by
providing the IMT Id (on ATM) / Payment Id (on Internet Banking).
Electronic Toll Collection (ETC)
NHAI has rolled out program for Electronic Toll Collection on Toll Plazas on National
Highways to be called FASTag. Indian Highways Management Company Limited
(IHMCL) (a company incorporated by National Highways Authority of India) and
National Payment Corporation of India (NPCI) are implementing this program with
help from Toll Plaza Concessionaires, FASTag Issuer Agencies and Toll Transaction
Acquirer (select banks).
FASTag is a device that employs Radio Frequency Identification (RFID) technology

for making toll payments directly from the prepaid account linked to it. It is affixed
on the windscreen of your vehicle and enables you to drive through toll plazas.
FASTag has a validity of 5 years and after purchasing it, you only need to
recharge/ top up the FASTag as per your requirement.
FASTag offers near non-stop movement of vehicles through toll plazas and the
convenience of cashless payment of toll fee with nation-wide interoperable
Electronic Toll Collection Services.
Benefits of using FASTag:

1. Ease of payment – No need to carry cash for the toll transactions, saves
time
2. Near non-stop movement of vehicles leading to lower fuel cost.
3. Online Recharge – FASTag can be recharged online through Credit Card /
Debit Card /
4. NEFT/ RTGS or Net banking
5. SMS alerts for toll transactions, low balance, etc.
6. Online Portal for customers
7. Validity of 5 Years
8. Incentive: You can avail a cashback of 10% on all Toll payments using
FASTag in 2016-17
9. Other benefits are:
Environmental benefit Social benefit Economic benefit
 Reduced air pollution  Reduced toll payment  Reduced effort in

 Reduced use of paper hassles management at toll
 Analytics for better plaza
highway  Reduced effort in
management monitoring centrally
Incentive / discount on Toll payments using FASTag:

Customer can avail a cashback of 10% on all Toll payments using FASTag in FY
2016-17. The cashback amount for a particular month will be credited back to
your FASTag account within a week of subsequent month.

Adopting FASTag is voluntary at this stage of the program. However, it may be
made mandatory in future at some locations. FASTag is applicable for all
categories, kinds, makes and types of vehicles.
FASTag is presently operational at 240+ toll plazas across National Highways.

More toll plazas will be brought under the FASTag program in the future.
Charges for FASTag:
FASTag has a one time Fee of ₹ 200. The refundable security deposit depends on
the vehicle type. (Please check other details on website of Issuer Agencies.)
Buying FASTag and documents required:
The customer may visit any of the Point of Sale (POS) locations at Toll Plazas /
Issuer Agency to get your FASTag account created.
Customer need to submit a copy of the following documents along with the
application for
FASTag:
1. Registration Certificate (RC) of the vehicle.
2. Passport size photograph of the vehicle owner
3. KYC documents as per the category of the vehicle owner (viz. individual /
corporate): (ID and Address proof: Driving License/ PAN Card/ Passport/ Voter ID
Card/ Aadhar Card)
SMS Alert:
The customer will receive an SMS with requisite details to his registered mobile
number as soon as the toll transaction takes place. Periodic statement of account
may also be obtained on website of the Issuer Agency after registration by the
customer
Recharge:
You may recharge your FASTag account by making payment through cheque or
online through Credit Card/ Debit Card/ NEFT/ RTGS or through Net Banking.
FASTag account can be recharged upto ₹ 1,00,000.00 (Rupees One Lac only)
Tokenization

A big step to enable Secured Payments: -
The Reserve Bank has today released guidelines on tokenisation for debit / credit
/ prepaid card transactions as a part of its continuous endeavour to enhance the
safety and security of the payment systems in the country. Tokenisation involves
a process in which a unique token masks sensitive card details. Thereafter, in lieu
of actual card details, this token is used to perform card transactions in contactless
mode at Point of Sale (POS) terminals, Quick Response (QR) code payments, etc.
These guidelines permit authorized card payment networks to offer card
tokenisation services to any token requestor (third party app provider), subject to
conditions enumerated in these guidelines. A card holder may avail of these
services by registering the card on the token requestor’s app after giving explicit
consent. No charges shall be recovered from the customer for availing this service.
All extant instructions of Reserve Bank on safety and security of card transactions,
including mandate for Additional Factor of Authentication (AFA) / PIN entry shall
be applicable for tokenised card transactions also.
Jose J. Kattoor
Chief General Manager
RBI
Press Release: 2018-2019/1597
****************************
Tokenisation – Card transactions
RBI/2018-19/103
DPSS.CO.PD No.1463/02.14.003/2018-19
January 08, 2019
The Chief Executive Officer / President

All authorised card payment networks
Madam / Dear Sir,
Tokenisation – Card transactions

Continuing the efforts to improve safety and security of card transactions, Reserve
Bank of India had permitted card networks for tokenisation in card transactions
for a specific use case.
2. It has now been decided to permit authorised card payment networks to offer
card tokenisation services to any token requestor (i.e., third party app provider),
subject to the conditions listed in Annex 1. This permission extends to all use cases
/ channels [e.g., Near Field Communication (NFC) / Magnetic Secure Transmission
(MST) based contactless transactions, in-app payments, QR code-based
payments, etc.] or token storage mechanisms (cloud, secure element, trusted
execution environment, etc.). For the present, this facility shall be offered through
mobile phones / tablets only. Its extension to other devices will be examined later
based on experience gained.
3. All extant instructions of Reserve Bank on safety and security of card

transactions, including the mandate for Additional Factor of Authentication (AFA)
/ PIN entry shall be applicable for tokenised card transactions also.

4. All other instructions related to card transactions shall be applicable for
tokenised card transactions as well. The ultimate responsibility for the card
tokenisation services rendered rests with the authorised card networks.
5. No charges should be recovered from the customer for availing this service.
6. Before providing card tokenisation services, authorised card payment networks

shall put in place a mechanism for periodic system (including security) audit at
frequent intervals, at least annually, of all entities involved in providing card
tokenisation services to customers. This system audit shall be undertaken by
empaneled auditors of Indian Computer Emergency Response Team (CERT-In)
and all related instructions of Reserve Bank in respect of system audits shall also
be adhered to. A copy of this audit report shall be furnished to the Reserve Bank,
with comments of auditors on deviations, if any, from the conditions listed in
Annex 1, along with the compliance thereto. Further, a report on the details
provided in Annex 2 shall be submitted at monthly intervals to the Chief General
Manager, Reserve Bank of India, Department of Payment and Settlement
Systems, Central Office, Mumbai and by email.
7. This directive is issued under Section 10 (2) read with Section 18 of Payment
and Settlement Systems Act, 2007 (Act 51 of 2007).
Yours faithfully,
(P Vasudevan)
Chief General Manager
Encl.: As above
Annex 1
(DPSS.CO. PD. No.1463/02.14.003/2018-19 dated January 08, 2019)
Card tokenisation services
Tokenisation refers to replacement of actual card details with a unique alternate

code called the “token”, which shall be unique for a combination of card, token
requestor and device (referred hereafter as “identified device”).
Conditions
Tokenisation – de-tokenisation service
i. Tokenisation and de-tokenisation shall be performed only by the authorised card

network and recovery of original Primary Account Number (PAN) should be
feasible for the authorised card network only. Adequate safeguards shall be put in
place to ensure that PAN cannot be found out from the token and vice versa, by
anyone except the card network. Integrity of token generation process shall be
ensured at all times.
ii. Tokenisation and de-tokenisation requests should be logged by the card

network and available for retrieval, if required.

iii. Actual card data, token and other relevant details shall be stored in a secure
mode. Token requestors shall not store PAN or any other card detail.
Certification of systems of card issuers / acquirers, token requestors and their

app, etc.
iv. Card network shall get the token requestor certified for (a) token requestor’s
systems, including hardware deployed for this purpose, (b) security of token
requestor’s application, (c) features for ensuring authorised access to token
requestor’s app on the identified device, and, (d) other functions performed by
the token requestor, including customer on-boarding, token provisioning and
storage, data storage, transaction processing, etc.
v. Card networks shall get the card issuers / acquirers, their service providers and
any other entity involved in payment transaction chain, certified in respect of
changes done for processing tokenised card transactions by them.
vi. All certification / security testing by the card network shall conform to
international best practices / globally accepted standards.
Registration by customer
vii. Registration of card on token requestor’s app shall be done only with explicit
customer consent through Additional Factor of Authentication (AFA), and not by
way of a forced / default / automatic selection of check box, radio button, etc.
viii. AFA validation during card registration, as well as, for authenticating any
transaction, shall be as per extant Reserve Bank instructions for authentication of
card transactions.
ix. Customers shall have option to register / de-register their card for a particular
use case, i.e., contactless, QR code based, in-app payments, etc.
x. Customers shall be given option to set and modify per transaction and daily
transaction limits for tokenised card transactions.
xi. Suitable velocity checks (i.e., how many such transactions will be allowed in a
day / week / month) may be put in place by card issuers / card network as
considered appropriate, for tokenised card transactions.
xii. For performing any transaction, the customer shall be free to use any of the
cards registered with the token requestor app.
Secure storage of tokens
xiii. Secure storage of tokens and associated keys by token requestor on

successful registration of card shall be ensured.
Customer service and dispute resolution
xiv. Card issuers shall ensure easy access to customers for reporting loss of
“identified device” or any other such event which may expose tokens to
unauthorised usage. Card network, along with card issuers and token requestors,

shall put in place a system to immediately de-activate such tokens and associated
keys.
xv. Dispute resolution process shall be put in place by card network for tokenised
card transactions.
Safety and security of transactions
xvi. Card network shall put in place a mechanism to ensure that the transaction
request has originated from an “identified device”.
xvii. Card network shall ensure monitoring to detect any malfunction, anomaly,
suspicious behavior or the presence of unauthorized activity within the
tokenisation process, and implement a process to alert all stakeholders.
xviii. Based on risk perception, etc., card issuers may decide whether to allow
cards issued by them to be registered by a token requestor.
Understanding Tokenization
Tokenization is a process through which sensitive information or data is replaced
with a unique set of characters that retain all the essential information without
compromising the security of the sensitive information.
In the payments space, tokenization is the process of replacing the 16-digit

payment card account number with a unique digital identifier known as a ‘token’
in mobile and online transactions. This token then allows payments to be
processed without exposing sensitive account details that could breach security
and privacy.
Substitution methods like tokenization have been around for a while as a way to
separate data in ecosystems, and databases. Before tokenization was introduced,
encryption with reversible cryptographic algorithms was the preferred method of
protecting sensitive data. Unlike encryption, a process that encrypts cardholder
data at the origin, and then decrypts it at the end destination, tokenization
replaces sensitive cardholder detail with a stand-in token. Because of the random
assignation of tokens, it’s almost impossible to reverse-engineer or compromise a
token.
Let’s take a look at what happens from the time a customer uses his credit card
to the time where the payment is processed, to better understand the process of
tokenization.
 A credit card is swiped at a POS machine or is used for an online transaction
 The credit card number is passed to the tokenization system
 The tokenization system generates a string of 16 random characters to
replace the original credit card number.
 The tokenization system returns the newly generated 16-digit random
characters to the POS machine or e-commerce site to replace the
customer’s credit card number in the system.

What a token looks like?
There are two types of tokens, format preserving tokens and non-format
preserving tokens.
Format preserving tokens maintain the appearance of the 16-digit credit card
number.
Example:
Card number: 5945 8612 5953 6391
Format preserving token: 4111 8765 2345 1111
Non-format preserving tokens do not resemble the original credit card number
and can include both alpha and numeric characters.
There are specific format-preserving tokenization schemes which maintain the IIN
(first 6 digits) as well as the last 4 digits of the card number.
Example:
Card number: 5945 8612 5953 6391
Non-format preserving token: 25c92e17-80f6-415f-9d65-7395a32u0223
What is the impact of tokenization on online businesses?

Credit card tokenization helps online businesses improve their data security, from
the point of data capture to storage as it eliminates the actual storage of credit
card numbers in the POS machines and internal systems. But the greatest benefit
of tokenization is that it minimizes the impact of security breaches for merchants.
Since merchants are storing tokens instead of credit card numbers in their
systems, hackers will acquire tokens which are of no use to them. Breaches are
expensive, and many retailers and banks have experienced huge losses as a result
of data theft. Tokenization helps minimize this.
What is the impact of tokenization on customers?

Apart from the comfort that comes with knowing that your credit card is less likely
to get hacked, there’s also the fact that tokenization is very convenient for
customers in the case of fraud or theft. This works because of the fact that multiple

tokens are issued for the same card payment on different platforms that use
tokenization.
So even if a website you use gets breached and the tokens are acquired by the
hacker/miscreant, it’s difficult to reverse engineer the actual card number from it
as access to the tokenization logic will also be needed.
Does using tokenization make you PCI DSS compliant?

Storing tokens instead of credit card numbers is one alternative that can help to
reduce the amount of cardholder data in the environment, potentially reducing the
merchant’s effort to implement PCI DSS (Payment Card Industry Data Security
Standard) requirements.
The following key principles relate to the use of tokenization and its relationship
to PCI DSS:
 Tokenization solutions do not eliminate the need to maintain and validate
PCI DSS compliance, but they may simplify a merchant’s validation efforts
by reducing the number of system components for which PCI DSS
requirements apply.
 Verifying the effectiveness of a tokenization implementation is necessary
and includes confirming that a financial card number is not retrievable from
any system component removed from the scope of PCI DSS.
 Tokenization systems and processes must be protected with strong security
controls and monitoring to ensure the continued effectiveness of those
controls.
 Tokenization solutions can vary greatly across different implementations,
including differences in deployment models, tokenization and de-
tokenization methods, technologies, and processes.
Both tokenization and encryption are widely used today to protect sensitive data
stored in cloud services or internal applications. An organization can decide to use
encryption, tokenization or a mix of both depending on their use case. This also
depends on the different types of data that the organization wants to secure.
(Source – RBI & Razorpay)
BlockChain
First and foremost, Blockchain is a public electronic ledger - similar to a relational

database - that can be openly shared among disparate users and that creates an
unchangeable record of their transactions, each one time-stamped and linked to
the previous one. Each digital record or transaction in the thread is called a block
(hence the name), and it allows either an open or controlled set of users to
participate in the electronic ledger. Each block is linked to a specific participant.
The block chain is seen as the main technical innovation of bitcoin, where it serves
as the public ledger of all bitcoin transactions. Bitcoin is peer-to-peer, every user
is allowed to connect to the network, send new transactions to it, verify
transactions, and create new blocks, which is why it is called permissionless. This
original design has been the inspiration for other cryptocurrencies and distributed
databases."
Think of a situation where a bank's know-your-customer (KYC) check on a

corporate customer fails to show up a suspicious transaction done by the company

with another bank. What if banks could share and also monetise corporate KYCs,
including investigation reports and cross-border wire transfer reports, on a real-
time basis, on a secure, private, immutable and consensus-based shared digital
ledger?
Similarly, how much simpler would life become for a manufacturing company
mired in input credit claims under the goods and services tax (GST) if its system
automatically generated and shared pre-reconciled invoices with all its suppliers
over a seamless and secure cryptographic ledger that is replicated and
synchronised? This could help the company save hundreds of crores of rupees
stuck in working capital currently.
Thirty banks and non-banking finance companies (NBFCs) in India and the Middle
East including State Bank of India, ICICI Bank, Axis Bank and Yes Bank, are set
to share corporate KYCs and more through BankChain - a blockchain consortium
set up by financial technology firm Primechain Technologies. BankChain, now
rechristened Primechain Money, is going live with five blockchain platforms that
include cross-border remittances and peer-to-peer money transfers, and the
banks should start using them real-time from February 2018. Besides, IBM is
working on an invoice management blockchain solution for manufacturing
companies to tackle their GST woes.
Like their global counterparts, Indian companies and financial institutions are
rapidly taking to blockchain - the indelible ledger technology that became popular
for powering the digital cryptocurrency bitcoin. And, they're realising that there's
more to it than bitcoin or the other cryptocurrencies of its ilk, because of its
inherent advantages of privacy, security, consensus and transparency. The record
created on the ledger cannot be tampered with. They are encrypted and decrypted
using cryptographic public and private keys, and a member/ company can only
access records relevant to it. If a record is changed in one place, it has to be
changed everywhere.
APIs
Application programming interfaces (APIs) is relatively an old technical
composition, which has been around for a long time. It is a structured and
predetermined mechanism where two systems can exchange data with each other.
Essentially APIs were internally focused and were exposed externally only in a
very private manner or only to pre-identified partners. Open APIs is a combination
of API technology and contemporary thinking about open collaboration. It refers
to new dialogues, connections, and ways of working between participants in
emerging business ecosystems.
This composition is used widely these days by a lot of organizations in different

fields and one such looming field is financial services and the emerging trend in
the financial ecosystem which uses APIs is open banking technology (FinTech). It
is based on using application programming interfaces (APIs) that enable third-
party developers to build applications and services around a financial institution
(FI). It facilitates greater financial transparency and helps financial institutions to
innovate and create new revenue models. With the changing regulatory mandates,
open banking has been gaining significant momentum across the globe.

This shift towards open banking APIs is also driven by regulations like PSD2 in
Europe, the Monetary Authority of Singapore and the CMA in the UK, and these
aim at fostering greater collaboration among financial institutions. Regulations like
PSD2 mandates banks to open themselves, and the accounts of their customers,
to external parties creating different types of new market participants thereby
providing customers with more services. Effectively, the open bank API will allow
for unbundling as well as bundling of traditional banks’ services by smart
aggregators, be it non-bank competitors or other banks.
Today’s banks traditionally own their products, distribution and customer base and
have a monopoly on their customer’s account information and services. While
fintech’s have been able to develop some innovative approaches that accesses the
huge client base of the banks, but it has been a challenge, whilst getting access
to a bank’s data and functionality. The introduction of API in the banking service
would give both customers and businesses the freedom to access all bank data in
real-time, and basically providing them with more accurate and up to date
information on their finances.
The new regulations like PSD2 will further spin the ball forward in terms of creating
a more open banking environment. It will encourage competition and create an
opportunity for new products and services in this domain and this could be one of
the biggest and most transformational changes to hit banking since the advent of
the Internet.
Currently, many small and medium-sized enterprises use commercial software for
accounting purposes, but for the most part, these businesses have to add their
daily transaction data manually. The introduction of API in the banking service
would give both customers and businesses the freedom to access all bank data in
real-time, and basically providing them with more accurate and up to date
information on their finances. With this push, customers will be able to draw a
clear comparison and save on their accounts and have access to more personalized
resources for making sturdy banking decisions. In addition to this, customers will
have access to better loan terms as lenders would then have access to historic
transactional data to determine a borrower’s risk level.
An open API ecosystem will have to function on more layers than a bank-to-
consumer model and function as distributed economy, especially with scrunched
up applications where data can move in any direction. While this open API
ecosystem provides the required flexibility, it also increases the risk of
cyberattacks. Cyber threats are more sophisticated today than ever and they are
engineered to steal the data and assets from the organization or even cause a
major business disruption. Two key things for enterprises opening their API to the
internet to keep in mind are understanding the ecosystem and ensuring right
levels of data encryption and access methodologies are used alongside providing
only required control to the API consumers.
These new developments will further spin the ball forward in terms of creating a
more open banking environment. It will encourage competition and create an
opportunity for new products and services in this domain and this could be one of
the biggest and most transformational changes to hit banking since the advent of
the Internet.

As of now, we’re still at the early stages of a new era in API-driven payments
revolution. Banks, fintech companies, and merchants have so much to learn. This
technology is not only a new way to meet compliance obligations, but it also
represents a new way of doing business that must be embraced with open arms
and put to work.
AI (Artificial Intelligence’s)
Digital solution providers state that one robot can work 24/7 and replace up to
eight employees, without asking for days off or a raise. This is the major reason
why big global banks are increasingly turning toward Artificial Intelligence (AI)
technologies to stay competitive in the digital era.
AI has huge benefits, for both banks and their customers. The implications of AI
disruption in the financial sector is that the analysis of users’ habits, activities,
behavioral characteristics, and financial data products can be customized to meet
and anticipate each user’s unique and evolving needs. This makes it viable for
each user to have his/her own digital personal financial assistant.
The banking and financial sectors are slowly moving from the first digital age to
the second. AI, cloud computing, mobile-first and digital dashboards are already
the norm, and new technologies are being adopted.
These are the most relevant application areas of Artificial Intelligence technology
in banking and finance:
Personalized Financial Services
Automated financial advisors and planners assist users in taking financial
decisions. They monitor events, stock and bond price trends against the user’s
financial goals and personal portfolio, and offer recommendations regarding stocks
and bonds to buy or sell.
Smart Wallets
Digital wallets are billed in most tech circles as the future of real-world payment
technologies. With major players like Google, Apple, PayPal and others jumping
on the bandwagon and developing their own mobile-first payment technologies, it
appears to be a safe bet.
Underwriting
The insurance sector is utilizing AI systems that automate the underwriting
process and provide more granular information to take better decisions.
Voice Assisted Banking

This technology empowers customers to use banking services with voice
commands rather than a touch screen. The natural language technology can
process queries to answer questions, find information, and connect users with
various banking services.
Data-driven AI applications for lending decisions

Applications embedded in end user devices, personal robots, and financial
institution servers are capable of analyzing massive volumes of information,
providing customized financial advice, calculations and forecasts. These
applications can also develop financial plans and strategies, and track their
progress. This includes research regarding various customized investment
opportunities, loans, rates, fees, etc.

Customer support
As speech processing and natural language processing technologies mature, we
are drawing closer to the day, when computers could handle most customer
service queries. This would mark an end to waiting in line and hence result in
happier customers.
New Management Decision-making

Data-driven management decisions at low cost could lead to a new style of
management, where future banking and insurance leaders would ask right
questions to machines, rather than to human experts, which would analyze data
and come up with recommended decisions that leaders and their subordinates
would use and motivate their workforce to execute.
Reducing Fraud and Fighting Crime

Most industries operating on the World Wide Web are susceptible to fraudulent
users and the banking industry is no exception. This has led to an arms race
between online security providers and fraudsters involved in everything from
email scams to credit card frauds. As security providers improve, criminals change
their ways. AI tools, which learn and monitor behavioral patterns of users to
identify anomalies and warning signs of fraud attempts and occurrences, along
with collection of evidence necessary for conviction, are also becoming more
commonplace in fighting crime.
According to a Gartner study, by 2020, consumers will manage 85% of the total
business associations with banks through chatbots. Banks can offer advice on a
large scale and with better impact by using AI chatbots that can learn about
customer’s user habits. These engines can refer to the data from the past about
user transactions, offerings, credit card usage, investment strategies, fund
management pattern, etc., and make the recommendation to the user based on
the same aligned with best banking practices.
Banks can benefit from artificial intelligence models which can be done by taking
input from several financial market sources and offer trading platforms based on
the automated artificial intelligence systems.

SAMPLE QUESTIONS-
1. Which of the following is correct about Small Basic Saving Bank account?
A. KYC compliance has been waived
B. Customer is responsible for KYC compliance
C. Bank has relaxed KYC norms, as per RBI guidelines.
D. Any amount can be maintained in account
E. There is no restrictions with regard to maximum balance in account
Ans: C
2. Which of the following is not correct about Small Basic Saving Bank
account?
A. The aggregate of all credits in a Financial Year does not exceed Rs.
One lakhs
B. The aggregate of all withdrawals and transfers in a months does not
exceed Rs. Ten thousand
C. The balance in any point of time should not exceed Rs. Fifty
thousand.
D. The account to remain operational for 36 months.
E. The operations in account can be extended for another 12 months
provided customer applies and furnishes evidence of having applied
for any of the OVD during first 12 months of opening of account.
Ans: D
3. Risk categorization of customers in KYC policy to be reviewed-
A. Annually
B. Half yearly
C. Quarterly
D. Two years
E. Five years
Ans: B
4. Which of the following statement about guidelines on KYC / AML / CFT is
not correct?
A. The guidelines shall apply to the branches and majority owned
subsidiaries of Indian Banks located abroad.
B. A Bank can establish Correspondent Banking relationship with
another Domestic Bank after carrying out due diligence that another
bank is complying with KYC/AML /CFT guidelines
C. A Bank can establish Correspondent Banking relationship with a
Bank after carrying out due diligence that Shell bank is complying
with KYC/AML /CFT guidelines
D. The guidelines shall apply to the branches and majority owned
subsidiaries located in countries which do not apply FATF
recommendations
E. Any deviation to above guidelines should be reported to RBI
Ans: C
5. Branches of commercial bank should report suspicious transactions to-
A. Bank’s respective authority
B. RBI
C. Ministry of Finance
D. CBI

E. SEBI
Ans: A
6. PAN is compulsory for remittance like DDs / PSIs -
A. If the amount exceeds Rs.49,999.00
B. If the amount exceeds Rs.20,000.00
C. If the amount exceeds Rs.1,00,000.00
D. I the amount exceeds Rs.19,999.00
E. No such limit fixed.
Ans: A
7. As per KYC guidelines demand draft / pay order / mail transfer for
Rs._________ and above is issued only by debit to customer’s account or
against cheque and not against cash -
A. If the amount exceeds Rs.49,999.00
B. If the amount exceeds Rs.50,000.00
C. If the amount exceeds Rs.1,00,000.00
D. I the amount exceeds Rs.19,999.00
E. No such limit fixed.
Ans: B
8. Money laundering refers to-
A. Transfer of assets / cash from one account to another account.
B. Conversion of illegal money through banking channels.
C. Conversion of cash in to gold for hoarding.
D. Conversion of assets in to cash to avoid income tax.
E. Operating account occasionally.
Ans: B
9. As per provisions of Prevention of Money Laundering (PML) Act , Banks are
expected to preserve records transections , both domestic and international
for at least _____ years from the date of transection between the bank and
the client -
A. 6
B. 8
C. 5
D. 10
E. 12
Ans: C
10. Under Rule 3 of PML Rules 2005 Banks are not expected to maintain
following records-
A. Pertaining to identification of the customer and his address
B. All suspicious transactions whether or not made in cash and by way
of as mentioned in the rules.
C. All integrated transections exceeding Rs.10 lakhs
D. All cash transactions up to the value of Rs.one lakhs.
E. All cash transactions where forged or counterfeit currency notes have
been used as genuine.
Ans: C
11. H is the holding company and S is the subsidiary. S takes a loan from a
bank for which H gives its guarantee. Will this attract Sec 185 of Companies
Act 2013?

A. H cannot give guarantee to a loan taken by S
B. H can give guarantee for a loan taken by S as it is exempted by the
Section
C. H can give guarantee only if S is a wholly owned subsidiary
D. H will have to take Central Govt. Approval for the same
E. H will have to pass a unanimous resolution in General Meeting
Ans: B
12. ABC, a partnership firm is having current account with bank. Mr. A partner
of the firm was granted an advance which became NPA. There was no credit
balance in the SB a/c of A. Mr. A gave a letter in writing to transfer the
balance from current account and close the loan. Partners B & C object to
this. How will you deal with the situation?
A. Bank cannot appropriate credit balance of the firm to individual debit
balance of a partner.
B. Bank can transfer the amount as the partner has the right to give
such letter
C. Bank can transfer if majority of partners agree to the request.
D. Bank should get a current a/c cheque of the firm signed by A and
then execute transfer
E. A should be advised to do RTGS /NEFT from current a/c of the firm
for credit of his personal loan account.
Ans: A
13. Maximum number of members in a Pvt. Ltd. Company as per Companies
Act 2013 is
A. 100
B. 50
C. 200
D. No limit
E. 20
Ans: C
14. Maximum number of partners that can be admitted to a firm, carrying on
non-banking business is
A. 10
B. 20
C. 50
D. 100
E. 200
Ans: D
15. If Board of Directors of the company does an act which is “ultra vires” the
memorandum, the following is true.
A. Members can ratify the action in general meeting by ordinary
resolution
B. Members can ratify the action in general meeting by special
resolution
C. Registrar of companies can approve the act
D. No one can ratify such act and company is not bound by the same
however the directors will be personally liable for the act to third
parties.
E. Central Govt. on an application by the company can approve of such
act
Ans: D

16. Doctrine of Indoor Management means
A. Management is responsible for the internal affairs of the company
B. It applies to internal management policy
C. Third parties dealing with the company are entitled to presumption
that the internal rules/procedures are complied with and person
acting has authority to act
D. It refers to internal code of conduct of the company
E. It is management of management secrets of the company
Ans: C
17. A public limited company should have minimum shareholder (membership)
of ---
A. 2
B. 200
C. 7
D. No limit
E. 50
Ans: C
18. Creation of charge on immovable properties is by way of
A. Pledge
B. Hypothecation
C. Mortgage
D. Assignment
E. Sale
Ans: C
19. If loan is given by a rural branch(not a notified area) and property given as
security is situate at Mumbai (notified area) and borrower is a resident of
Bangalore (notified area) Equitable mortgage can be created at
A. Either Bangalore or Mumbai or any other notified place near the
branch where another branch of bank is situate
B. Bangalore only
C. Mumbai only
D. Any of the 3 places
E. The place where the branch is situate
Ans: A
20. Bank finances various loans against mortgage of properties. It obtains
refinance against the mortgage of already mortgaged properties from
another institution. This type of mortgage is called
A. Remortgage
B. Reverse Mortgage
C. Sub Mortgage
D. Secondary Mortgage
E. Conditional Mortgage
Ans: C
21. A tells B that he offers to sell his car for Rs. 50,000/. But B replies “I will
purchase it for Rs. 45,000/. Is there any contract? Why if yes or no?
A. Since B has offered to purchase for Rs.45,000/ this is a conditional
acceptance and results in contract as there is consideration also
B. B has only made a counter offer and not accepted the offer of A.
Hence there is no contract as no consensus ad idem
C. The contract made is voidable at option of A
D. Contract is voidable at option of B

E. B can force A to enter into a contract as he has accepted the offer for
Rs.45,000/
Ans: B
22. When does termination of an agency take effect?
A. Immediately on termination as against all parties
B. When notice of termination is served on the agent as against all
parties
C. By publication in the gazette/ newspapers
D. When the parties want it to take effect
E. As against agent when it comes to his notice and as against third
party when it bring to his notice.
Ans: E
23. What is the maximum no. of Directors in a Public Ltd Companies?
A. 20
B. 15
C. 12
D. 10
E. 7
Ans: B
24. What is Partnership at Will?
A. When no provision as to duration of partnership is mentioned or time
of dissolution not mentioned it is partnership at will
B. When the person becomes partner at the will of other partners
C. When a person becomes partner due to will of his father or parent
D. Firm in which partners are admitted at the will and pleasure of
partners
E. Any partner can leave the firm as per his will
Ans: A
25. One of the following is not an effect of non-registration of the firm. Which
is it?
A. Partner of unregistered firm cannot file a suit against other partners
or the firm
B. Unregistered firm cannot file a suit against third parties for enforcing
any claim arising out of contract
C. Partner of unregistered firm cannot sue for dissolution of the firm or
for accounts of a dissolved firm
D. Third party creditors cannot sue the firm or partners of an
unregistered firm for any breach of contract or money claim
E. Partner of unregistered firm cannot sue for exercising right of set off
against any claim from the firm or other partners
Ans: D
26. M a minor wanted to become a partner of a firm. Out of partners A is
managing partner, B& C are other partners. A did not give his consent.
Whether M can be admitted to benefits of partnership?
A. As majority of partners agreed M can be admitted
B. M’s parent can be admitted to partnership
C. M should be advised to get permission of court to become partner
D. As managing partner has given his consent M can be admitted to
partnership
E. Consent of all partners of the firm is required to admit minor to
benefits of partnership

Ans: E
27. G1 & G2 are guarantors for a loan. Bank releases G1 from the liability. G2
claims that he is not responsible for the loan any more due to the act of the
bank. Which of the following is true
A. Release of G1 automatically releases G2 also
B. Release of G1 does not release G2 as his liability is separate and
several and also G1 will be liable for balance outstanding as on date
of release of guarantee upto 3 years.
C. G2 can sue bank for collusion with G1 in respect of his release from
liability
D. G2 can approach court for his release
E. Bank has no right to release only one surety where there is more
than one
Ans: B
28. Which is incorrect statement with regard to “Contract of Indemnity &
Surety”
A. Indemnity is compensation for loss whereas surety is guaranteeing
performance of promise of repayment of money
B. In indemnity there are 2 parties whereas Surety there are 3 parties
generally
C. Insurance is contract of indemnity whereas surety contract is a
contract of guarantee
D. Loss is a precondition to invoke contract of indemnity whereas default
or breach is the trigger for contract of guarantee
E. Bank guarantee is a contract of indemnity
Ans: E
29. In terms of revised guidelines of Reserve Bank of India, the following is not
an ‘Officially valid document’ for KYC
A. Voter’s Identity Card
B. Driving License
C. Passport
D. Ration Card
E. Permanent Account Number Card
Ans: D
30. A partnership firm was dissolved. M was a minor whose share of assets
were 10,000/ A’s share 50,000/, B’s share 50,000/ C’s share Rs.50, 000/.
Liabilities of the firm to the bank were Rs.1, 70,000/ and no outsider
liabilities. What is the remedy available to bank?
A. Bank can recover from all partners including minor
B. After recovering Rs.1,60,000/ from share of partners including minor
balance amount of Rs.2500/ should be brought in by all other
partners including minor
C. Bank should recover Rs.1, 60,000/ from the assets of partners
including minor and balance should be brought in by major partners
equally.
D. Bank should recover Rs.1,50,000/ from major partners and ask them
to contribute Rs.20,000/ equally for bank’s loan, as minor is not liable
for make good the loss
E. Bank can recover Rs.1, 50,000/ from major partners and write off
balance of Rs.20, 000/.
Ans: C

31. BOI Savings Plus allows-
A. Auto sweep in SB in multiple of 10,000.00 on daily basis.
B. Auto sweep in SB in multiple of 5,000.00 on daily basis.
C. Auto sweep in SB in multiple of 10,000.00 on weekly basis.
D. Auto sweep in SB in multiple of 5,000.00 on weekly basis.
E. Auto sweep in SB in multiple of 10,000.00 on monthly basis.
Ans: A
32. Group Personal Accidental Death insurance cover under Jai Jawan Salary
Plus scheme is-
A. Rs.30 lakhs in case of death and Permanent Total Disability
B. Rs.15 lakhs in case of death and Permanent Total Disability
C. Rs.30 lakhs in case of death and Rs.15 lakh in case of Permanent
Total Disability
D. Maximum insurance cover is available is either 10 times Gross Annual
Income of account holder or Rs.30 lakhs in case of death and
Permanent Total Disability whichever is minimum.
E. Maximum insurance cover is available is either 10 times Gross Annual
Income of account holder or Rs.15 lakhs in case of death and
Permanent Total Disability whichever is maximum.
Ans: D
33. Which of the following statement is not correct about STAR Yuva Savings
Bank Scheme?
A. Target group – students, professionals without dependents,
professionals with dependents
B. Eligible Age 10 – 18 years under category A and 18-35 years in
category B.
C. Maintenance of AQB –for students up to 21 years - Nil, age group 21
– 35 years – Rs.5000/- in metro/urban & Rs. 2500/- in semi
urban/rural branches
D. Debit card – Bingo and other Debit Cards as per eligibility norms
under category A and category B.
E. Free 50 cheque leaves are available to all accounts opened under
scheme.
Ans: E
34. Eligibility for opening of BOI SALARY PLUS ACCOUNT is -
A. All permanent on regular pay roll employees of Universities / College
drawing Minimum take home pay Rs. Rs.10,000/- p.m.
B. All permanent on regular pay roll employees of Central Govt. / State
Govt., drawing Minimum take home pay Rs. Rs.10,000/- p.m.
C. All permanent on regular pay roll employees of PSUs/ Private sectors,
drawing Minimum take home pay Rs. Rs.10,000/- p.m.
D. A&B
E. A, B & C.
Ans: E
35. Which statement is not correct for BSBDS accounts?
A. Existing Basic banking SB/ Small SB accounts are allowed for
conversion to BSBDA. The account holder willing for conversion has

to approach in person at Branch counter and submit written
application in presence of Branch official.
B. The BSBDA shall be considered a normal banking available to all.
Opening of joint account not permitted.
C. No limit on number and value of deposits that can be made in a
month.
D. A customer must give a Declaration to bank in writing that he\ she
(customer) is not having a BSBD account in any other Bank.
E. Individual resident, singly or jointly (Maximum not more than 4 joint
holders) can open BSBD account.
Ans: B
36. Which statement is correct about Flexi Recurring Deposit accounts?
A. No Advance instalment is allowed for flexi instalments.
B. Loan/OD/Advance is not available against balance held in Flexi
Recurring Deposit accounts.
C. No Penalty for late instalments.
D. Joint accounts including Minors cannot be opened under the scheme.
E. Auto renewal facility available.
Ans: A
37. Which is the Salient feature of the scheme Current Deposit Plus Account?
A. Average Quarterly Balance Rs. 4 Lakh. Sweep in / out amount in
multiples of Rs.75,000.00.
B. Average Quarterly Balance Rs. 2 Lakh. Sweep in / out amount in
C. Average Quarterly Balance Rs. 4 Lakh. Sweep in / out amount in
D. Average Quarterly Balance Rs. 2 Lakh. Sweep in / out amount in
E. Average Quarterly Balance Rs. 5 Lakh. Sweep in / out amount in
Ans: A
38. Which is the Salient feature of the scheme Saving Plus Account?
A. Minimum Balance Rs.0.50 Lakh. Sweep in / out amount in multiples
of Rs.10,000.00
B. Minimum Balance Rs. 0.25 Lakh. Sweep in / out amount in multiples
of Rs.5,000.00
C. Average Quarterly Balance Rs. 0.50 Lakh. Sweep in / out amount in
D. Average Quarterly Balance Rs. 2 Lakh. Sweep in / out amount in
E. Average Quarterly Balance Rs. 1 Lakh. Sweep in / out amount in
Ans: A
39. Which statement is correct about Savings Bank Account for Pensioners?
A. Group Personal Accident Death Cover Insurance of Rs.5.00 lakhs on
debit card.
B. Debit card is not allowed in Savings Bank Account for Pensioners.

C. Overdraft facility – maximum amount 4 months pension amount
available.
D. Minimum daily balance Rs.500.00 required for accounts with cheque
book facility.
E. Free Customer induced Debit entries - unlimited.
Ans: A
40. Which of the following statement is correct about NRI current account?
A. The NRI customers can open NRI / NRO Current Account with any of
our BOI branch.
B. Taxation Funds in NRO Account are exempted from income tax in
India.
C. Funds in NRE Account are taxable under Indian Income Tax Act
D. Account can be held jointly by a Non-Resident Indian (persons of
Indian nationality or origin) / with a Resident Indian (Either or
Survivor basis).
E. The rules/guidelines for NRI will remain unchanged till closure of
account.
Ans: A
41. Short deposit can be opened for the period of -
A. 7 days to 179 days
B. 7 days to 180 days
C. 14 days to 179 days
D. 14 days to 180 days
E. 15 days to 179 days
Ans: A
42. Which of the following is incorrect in case of Current account for NRI
customers?
A. NRIs (individuals / entities of Bangladesh/ Pakistan nationality/
ownership require prior approval of RBI).
B. Any person resident outside India (other than a person resident in
Nepal and Bhutan) can open NRO current account.
C. NRE Account can be held jointly by a Non-Resident Indian with a
Resident Indian (Former or Survivor basis).
D. Taxation Funds in NRE Account are taxable under income tax in India.
E. NRO Account can be held jointly by a Non-Resident Indian (persons
of Indian nationality or origin) / with a Resident Indian only as a
Mandate / POA holder.
Ans: D
43. Which of the following is incorrect in case of Star Crystal Current account?
A. Star Crystal Current A/c is a part of the existing Current Deposits
(Scheme Code— CD201).
B. Average Quarterly Balance Rs.5,000/- per quarter.
C. The accounts under the said scheme cannot be converted to Tierised
account.
D. It was launched by the Bank in the year 2012 for Diamond Traders.
E. Free DD/PSI / RTGS /NEFT through branch up to Rs.5/- Lac each per
month
Ans: C

44. Which of the following Category of Tierised Current Accounts and their AQB
requirement is correct?
A. BOI SILVER Current Account Rs. 20,000/- to less than Rs.50,000/-
B. BOI GOLD Current Account Rs.1,00,000/- to less than Rs.5,00,000/-
C. BOI GOLD PLUS Current Account Rs. 1,00,000/- to less than
Rs.2,00,000/-
D. BOI Diamond Current Account Rs.10,00,000/- to less than
Rs.20,00,000/-
E. BOI Diamond PLUS Current Account Rs. 20,00,000/- and above
Ans: C
45. Which of the following is not a feature of Star Benefit CD Plus Account?
A. The account was launched on Bank's foundation day to cater to the
needs of small traders/manufacturers.
B. Average Quarterly Balance Rs.5,000/- per quarter.
C. Star Benefit CD Plus Current A/c is a part of the existing Current
Deposits (Scheme Code — CD201).
D. The accounts under the said scheme are covered under tierisation of
Current Deposit account.
E. Debit Card for individuals & Proprietorship concerns Free for First
year.
Ans: D
46. Appeal against DRT decision can be made with :
A. NCLT
B. Company Law Board
C. Supreme Court
D. Debt Recovery Appellate Tribunal
E. Debt Recovery Appellate Authority
Ans: D
47. Lok Adalat is one of the platforms where generally dispute is resolved
through compromise / avoid legal procedures. However, it has a limit to
hear the cases:
A. Rs. 10 Lakh
B. Rs. 25 Lakh
C. Rs. 6 Lakh
D. Rs. 20 Lakh
E. Rs. 12 Lakh
Ans: D
48. Star Sanjeevani Scheme is applicable to all accounts with ledger
outstanding up-to Rs. _____________ under Doubtful / Loss & Regular
written off as on 31-03-2019 :
A. Rs. 100 Lakh
B. Rs. 25 Lakh
C. Rs. 50 Lakh
D. Rs. 20 Lakh
E. Rs. 12 Lakh
Ans: A
49. The Branch Managers can settle dues up-to Max. ledger outstanding of Rs.
_______ under Star Sanjeevani Scheme?

A. Rs. 100 Lakh
B. Rs. 25 Lakh
C. Rs. 50 Lakh
D. Rs. 20 Lakh
E. Rs. 12 Lakh
Ans: C
50. The Branch Managers in Scale I & II can settle dues in regular written off
account up-to Max. ledger outstanding of Rs. _______ under Star
Sanjeevani Scheme?
A. Rs. 1 Lakh
B. Rs. 2 Lakh
C. Rs. 15 Lakh
D. Rs. 8 Lakh
E. Rs. 5 Lakh
Ans: E
51. Under BOI OTS 2019 scheme, NPA a/cs. (Asset code 31, 32, 33, 40 &
Regular W/O a/cs.) with O/S above Rs. 1.00 Crore and up-to Rs. 50.00
Crores as on 31.03.2019 and declared NPA as on 31.03.2018 are eligible ?
A. Rs. 10 Lakh & Rs. 1 Crore
B. Rs. 20 Lakh & Rs. 50 Crore
C. Rs. 1 Crore & Rs. 50 Crore
D. Rs. 1 Crore & Rs. 25 Crore
E. No minimum & Max. Rs. 25 Crore
Ans: C
52. Which is new menu introduced to enter the details of compromise Amount
/ OTS offered by a NPA customer through Web or by visiting the Branch
with following details.
A. COMPROTS
B. COMPOTS
C. COMPOFF
D. NPATOSTD
E. LNRES
Ans: B
53. The constituents of Stress Assets Management Vertical (SAMV) include :
A. Recovery Department
B. Credit Monitoring Department
C. Stressed Asset Resolution Department
D. a, b & c
E. a&c
Ans: D
54. Under this framework of EASE Guidelines, SAMV will cater to the Stressed
accounts having our bank exposure of Rs. ___________ and above.
A. Rs. 50 lakhs and above
B. Rs. 25 lakhs and above
C. Rs. 10 Crores and above
D. Rs. 25 Crores and above
E. Rs. 50 Crores and above
Ans: E
55. A financial creditor can initiate the proceedings under the IBC, in cases
where there is default in repayment of minimum amount of __________.

A. Rs. 1 Lakh
B. Rs. 2,000/-
C. Rs. 2 Lakh
D. Rs. 10 Lakh
E. Rs. 5 Crores
Ans: A
56. Who will be sponsoring applications under DAY-NULM?
A. DRDA
B. NGO
C. CEO Zila Parishad
D. Tahsildar
E. Urban Local Body
Ans: E
57. TAT for DAY-NULM cases is _____
A. 1 week
B. 2 week if loan amount is more than Rs.1 lakh
C. 15 days from submission of papers
D. 15 days if loan amount is more than Rs.5 lakhs
E. 3 weeks
Ans: C
58. What is the educational qualification for DAY-NULM applicant?
A. No formal education is required
B. 8th class pass
C. 10th
D. 12th
E. Literate
Ans: A
59. What will be the financial assistance to the beneficiaries of DAY-NULM?
A. 5.5% above 7%
B. All banks will be charging 7%
C. DRI rate
D. Difference between 7% and the rate charged by the bank provided
repayment of the loan is timely.
E. Difference between 7% and the rate charged by the bank.
Ans: D
60. What is the special benefit for DAY-NULM women SHGs?
A. Liberal repayment schedules
B. 3% interest subvention
C. An additional 3% interest subvention to women SHG who repay loan
on time.
D. capital investment by ULB
E. preferred treatment by ULB
Ans: C
61. Which is the nodal agency for implementation of the PMEGP scheme at
national level?
A. KVIC
B. State KVIC
C. KVIB

D. DIC
E. MSME
Ans: A
62. Maximum limit for service / business unit in PMEGP?
A. Rs.5 lakhs
B. Rs.10 lakhs
C. Rs.20 lakhs
D. Rs.25 lakhs
E. Rs.15 lakhs
Ans: B
63. In PMEGP, what is the per capita investment limit in hilly areas?
A. Rs.50 thousand
B. Rs.1 lakhs
C. Rs.1.5 lakhs
D. Rs.5 lakhs
E. Rs.10 lakhs
Ans: C
64. If PMEGP candidate is a general category candidate, then what should be
his own contribution?
A. Not required
B. 5%
C. 10%
D. 20%
E. 25%
Ans: C
65. Under second financial assistance for PMEGP, borrower in manufacturing
sector, he can get financial assistance up to Rs.________?
A. 50 lakhs
B. 75 lakhs
C. 1 Cr.
D. 5 Cr.
E. 10 Cr.
Ans: C
66. Which of the following activity is not covered under PMMY?
A. Crop loan
B. Retail trade
C. Wooden furniture shop
D. Dairy
E. Goatery
Ans: A
67. What is the MIS code for “Kishore” to be put in free code 3 while opening
PMMY account?
A. 300
B. 369
C. 370
D. 155
E. 305
Ans: B

68. CGFMU guarantee scheme is a product of _________.
A. NPCI
B. MUDRA
C. NCGTC
D. CGTMSE
E. CRISIL
Ans: C
69. Loan application under PMMY, above Rs.5 lakhs, has to be disposed-off
within _____ weeks if the application is complete in all respect and
accompanied by all documents as per check list.
A. 1 week
B. 15 days
C. 2 weeks
D. 3 weeks
E. Manager’s decision.
Ans: D
70. In case of PMMY, projected balance sheet of one year for start-up/ existing
unit for working capital limit and for term loan is required for limit of
Rs._____ & above.
A. 10 lakhs
B. 5 lakhs
C. 7.5 lakhs
D. 3 lakhs
E. 2 lakhs.
Ans: E
71. RBI is empowered to issue priority sector guidelines by the sections ______
& ________ of Banking Regulation Act 1949.
A. 6 & 11
B. 10 & 21
C. 21 & 35A
D. 35A & 15
E. 10 & 15
Ans: C
72. There are ____ categories under Priority Sector.
A. 5
B. 7
C. 9
D. 11
E. 3
Ans: B
73. Foreign Banks with less than 20 branches have to achieve Priority Sector
lending target by ________.
A. March 2020
B. March 2021
C. March 2022
D. March 2023
E. March 2024
Ans: A

74. Within agriculture target of 18% of ANBC or Credit Equivalent of Off-Balance
Sheet Exposure whichever is higher, there is a target of 8% of ANBC or
Credit Equivalent of Off-Balance Sheet Exposure prescribed for-
A. Farmers
B. Corporate farmers
C. BPL farmers
D. Small & Marginal Farmers
E. Marginal farmers
Ans: D
75. Loan to small & marginal farmers for purchase of agriculture land is covered
in ______ of agriculture sector in priority sector classification.
A. Priority lending
B. KCC
C. Agriculture infrastructure
D. Ancillary activity
E. Farm credit
Ans: E
76. Maximum sanction limit for agriculture infrastructure projects is
Rs.________________
A. 1 Cr./borrower
B. 10 Cr. /borrower
C. 25 Cr./borrower
D. 100 Cr./borrower
E. No limit
Ans: D
77. Loan to Customer Service Units or Agro-Clinic Agro-Business center
classified as ___________
A. Agriculture Ancillary
B. Agriculture Infrastructure
C. Farm Credit
D. Agriculture Business Module
E. Non- Farm Business
Ans: A
78. In order to consider factoring transactions in priority sector, important
condition is that the assignor must be _________________
A. Businessman
B. Manufacturer
C. Service provider
D. Micro, Small or Medium enterprise
E. Greenfield Businessman.
Ans: D
79. What is the criteria to classify any unit as Small under MSME(Mfg.activity)?
A. Original Cost of Investment in Plant and Machinery to be more than
Rs. 10.00 Lakhs, but (including and) up to Rs. 25.00 Lakhs
B. Original Cost of Investment in Plant and Machinery to be more than
C. Original Cost of Investment in Plant and Machinery to be more than

D. Original Cost of Investment in Plant and Machinery to be more than
E. No such criteria regarding original Cost of Investment in Plant and
Machinery.
Ans: C
80. What is the criteria to classify any unit as Micro unit under MSME (Mfg.
activity)?
A. Original Cost of Equipment’s acquired not to exceed Rs.10.00 Lakhs
B. Original Cost of Equipment’s acquired not to exceed Rs.25.00 Lakhs
C. Original Cost of Equipment’s acquired not to exceed Rs.200.00 Lakhs
D. Original Cost of Equipment’s acquired not to exceed Rs.500.00 Lakhs
E. No such criteria regarding original Cost of Investment in Plant and
Machinery.
Ans: A
81. In the case of imported machinery, the following shall not be included in
calculating the value of plant and machinery?
A. Import duty (excluding miscellaneous expenses such as);
B. Customs clearance charges; and
C. Sales tax or value added tax.
D. Transportation from the port to the site of the factory, demurrage
paid at the port
E. Shipping charges;
Ans: D
82. Waiver of CGTMSE coverage in eligible accounts to be approved by?
A. Branch Manager
B. SZLCC
C. ZLCC
D. NBGLCC
E. EDLCC
Ans: C
83. For assessment of Working Capital limit under MSE-Units with digital portion
turnover of _________________ in previous year, the projected turn over
to be further classified into two components - Digital and non-digital.
A. 33.33% and above
B. 50% and above
C. 40% and above
D. 25% and above
E. 66.67% and above
Ans: D
84. For non-digital transactions, working capital requirement to be carried out
as ________ % of the accepted projected turnover?
A. 33.33%
B. 37.50%
C. 31.25%
D. 25%
E. No such provision.
Ans: C

85. For digital transactions, working capital requirement to be carried out as
31.25 % of the accepted projected turnover?
A. 33.33%
B. 37.50%
C. 31.25%
D. 25%
E. No such provision.
Ans: B
86. Second financial assistance to existing MUDRA / PMEGP beneficiaries by way
of Term Loan / Working Capital limit can be now considered for
manufacturing sector to the tune of Rs. __________?
A. 5 Crores
B. 2 Crores
C. 2.50 Crores
D. 1 Crore
E. No such limit.
Ans: D
87. Second financial assistance to existing MUDRA / PMEGP beneficiaries by way
of Term Loan / Working Capital limit can be now considered for Trading
sector to the tune of Rs. ____________?
A. 25 Lakhs
B. 50 Lakhs
C. 2 Crores
D. 1 Crore
E. No such limit.
Ans: A
88. To avail second financial assistance to existing MUDRA / PMEGP, unit should
have been making profit for last _________ years & for such units UAM is
mandatory?
A. 1 year
B. 3 years
C. No such condition is stipulated
D. 5 years
E. 2 years
Ans: B
89. The minimum and maximum advance facilities available under Star SME
Liquid plus are Rs. __________ and Rs. ___________, respectively?
A. Rs.25 Lakhs and Rs.500 Lakhs, respectively
B. Rs.10 Lakhs and Rs.200 Lakhs, respectively
C. Rs.50 Lakhs and Rs.500 Lakhs, respectively
D. Rs.50 Lakhs and Rs.200 Lakhs, respectively
E. Rs.10 Lakhs and Rs.500 Lakhs, respectively
Ans: E
90. Amount of loan in Star SME Liquid plus scheme is assessed on the basis of
_________ of unencumbered value of property offered or _______ of
requirement whichever is lesser?
A. 50%, 50%
B. 75%, 75%

C. 50%, 75%
D. 40%, 60%
E. 60%, 80%
Ans: C
91. Under Star SME Contractor Credit, for established Contractors, engaged in
business for past 3 years, having audited financials in place. Finance can be
availed in form of Cash Credit, Bank Guarantee, Letter of Credit, etc., with
minimum of Rs. 10 Lakhs & maximum of Rs. 500 Lakhs.
A. Rs.25 Lakhs & Rs.500 Lakhs
B. Rs.50 Lakhs & Rs.500 Lakhs
C. Rs.10 Lakhs & Rs.200 Lakhs
D. Rs.100 Lakhs & Rs.200 Lakhs
E. Rs.10 Lakhs & Rs.500 Lakhs
Ans: E
92. Appraisal under Star SME Contractor Credit will be on 30% of average of
last 2 years turnover of which 2/3 should be fund based & 1/3 to be non-
fund based.
A. 25%, 2 years
B. 50%, 2 years
C. 25%, 3 years
D. 30%, 2 years
E. 30%, 3 years
Ans: D
93. Under BOI STAR Vyapar, the extent of finance under the scheme is capped
at Rs. 10 Crores (Minimum Rs. 10 Lakhs) Maximum Rs. 500 lakh for Micro
& Small Enterprises.
A. Rs.25 Lakhs & Rs.500 Lakhs
B. Rs.50 Lakhs & Rs.500 Lakhs
C. Rs.10 Lakhs & Rs.200 Lakhs
D. Rs.25 Lakhs & Rs.200 Lakhs
E. Rs.10 Lakhs & Rs.500 Lakhs
Ans: E
94. CGFSEL coverage is available for all new education loans
A. up to Rs. 4.00lakhs
B. up to Rs. 7.50lakhs
C. up to Rs. 10.00lakhs
D. up to Rs. 20.00lakhs
E. up to Rs. 15.00lakhs
Ans: B
95. Under educational loan scheme for studies in India and abroad,
A. Repayment period is 12 years after commencement of
repayment
B. Repayment period is 10 years after commencement of
repayment
C. Repayment period is 15 years after commencement of
repayment
D. Repayment period is 18 years after commencement of
repayment
E. Repayment period is 7 years after commencement of

repayment
Ans: C
96. Under BOI Star Doctor Plus (Retail) Personal /Vehicle Loan, what is the
maximum age at which total loan to be repaid
A. 65 years
B. 60 years or date of retirement
C. 70 Years
D. 75 Years
E. There is no upper age bar
Ans: D
97. The maximum quantum of finance can be given under pensioner’s loan:
A. 10 times net for unsecured & 20 times of net pension for secured
loans
B. 10 times net for unsecured & 10 times of net pension for secured
loans
C. 15 times net for unsecured & 15 times of net pension for secured
loans
D. 10 times net for unsecured & 15 times of net pension for secured
loans
E. 15 times net for unsecured & 20 times of net pension for secured
loans
Ans: C
98. Under Star Vehicle Loan scheme, the limit for in case of vehicles where
registration with RTA is not required:
A. 2 wheelers: 50,000/- ; 4 wheelers: 4 Lakhs
B. 2 wheeler: 50,000/- ; 4 wheelers: 2 Lakhs
C. 2 wheelers: 2 Lakhs; 4 wheelers: 5 Lakhs
D. No loan can be sanctioned under Star Vehicle Loan Scheme
E. No such limit is prescribed and the loan can be sanctioned on the
basis of eligibility of the borrower keeping the appropriate margin.
Ans: A
99. Which of the following is correct w.r.t. maximum repayment period allowed
under Star Vehicle Loan scheme:
A. 2 wheeler: 3 Years, 4 wheelers (Individual): 7 Years, Corporate/
Firms: 5 Years
B. 2 wheeler: 5 Years, 4 wheelers (Individual): 5 Years, Corporate/
Firms: 5 Years
C. 2 wheeler: 5 Years, 4 wheelers (Individual): 7 Years, Corporate/
Firms: 7 Years
D. 2 wheeler: 5 Years, 4 wheelers (Individual): 7 Years, Corporate/
Firms: 3 Years
E. 2 wheeler: 5 Years, 4 wheelers (Individual): 7 Years, Corporate/
Firms: 5 Years
Ans: E
100. Which of the following is incorrect w.r.t. Star Mitra Personal Loan Scheme:
A. Max Limit in the scheme is Rs. 1 Lakh
B. 10 times of net salary for salaried and 50% of net annual income
for self-employed/ Professionals
C. Repayment period 12 months to 84 months
D. No processing charges

E. No advance to NGOs can be given under the scheme.
Ans: C
101. Which of the following is correct w.r.t. Star Vidya Loan Scheme (maximum
loan):
A. List A: 20 Lakhs; List B: 10 Lakhs; List C: 7.5 Lakhs
B. List A: 10 Lakhs; List B: 10 Lakhs; List C: 7.5 Lakhs
C. List A: 10 Lakhs; List B: 7.5 Lakhs; List C: 4 Lakhs
D. List A: 20 Lakhs; List B: 7.5 Lakhs; List C: 4 Lakhs
E. List A: 15 Lakhs; List B: 10 Lakhs; List C: 7.5 Lakhs
Ans: A
102. Which of the following is correct w.r.t. BOI Doctors Plus Vehicle Loan
A. Max amount: 100 Lakhs (Only 1 vehicle)
B. Max amount: 50 Lakhs (up to 2 vehicles)
C. Max amount: 50 Lakhs (Only 1 vehicle)
D. None is correct
E. Max amount: 100 Lakhs (up to 2 vehicles)
Ans: E
103. Which of the following is correct w.r.t. Star Personal Loan Scheme
A. Salaried: 10 times of monthly NET; Unsecured: 10 Lakhs; Secured:
20 Lakhs
B. Salaried: 10 times of monthly NET; Unsecured: 5 Lakhs; Secured:
10 Lakhs
C. Salaried: 15 times of monthly NET; Unsecured: 10 Lakhs; Secured:
10 Lakhs
D. Salaried: 10 times of monthly NET; Unsecured: 10 Lakhs; Secured:
10 Lakhs
E. Salaried: 20 times of monthly NET; Unsecured: 5 Lakhs; Secured:
10 Lakhs
Ans: B
104. BOI Star Home loan cannot be granted for -
A. Construction of New house.
B. Purchase of New / Second hand Flat
C. Takeover of Home loan from other Banks/F.I.s.
D. Purchase of new shop.
E. To acquire household articles/ Solar PV along with house/flat.
Ans: D
105. Who are Eligible Proponents for BOI Star Home loan -
A. Salaried employees, Businessmen
B. Professionals & Self-employed, Proprietorship & Partnership Firms
C. HUF customer for housing for members of HUF, NRI.
D. A&B
E. A, B & C.
Ans: E
106. Eligible quantum of BOI Star Home loan is -
A. 72 times of monthly gross salary/ income or 6 Times of Annual Gross
B. 72 times of monthly Net salary/ income or 6 Times of Annual Net
Income based on ITRs
C. 60 times of monthly gross salary/ income or 5 Times of Annual Gross

D. 60 times of monthly Net salary/ income or 5 Times of Annual Net
Income based on ITRs
E. 50% of annual Gross Income based on ITRs.
Ans: A
107. Which is not correct about personal loans to be sanctioned to acquire
household articles/ Solar PV under BOI Star Home Scheme-
A. Max Rs.5.00 lakhs to acquire household articles / furniture :
B. Max Rs.10.00 lakhs for installation of Roof Top Solar PV including
equipment, installation and wiring cost
C. Both A & B not to exceed 15% of Home loan,
D. Both A & B Max Rs.10.00 lakhs
E. Repayment period same as repayment period of Home loan
Ans: E
108. Max. quantum of finance under BOI Star Home Scheme -
A. Rs.100 lakh for Repairs/Renovation
B. Rs.100 lakh for metros and Rs.50 lakhs for other places for Repairs
/ Renovation
C. Rs.500 lakh – for metros and Rs.300 lakh – for other places for
construction / purchase of house.
D. For purchase of plot: Rs. 200 Lakhs for metros only.
E. For purchase of plot: Rs. 200 Lakhs for metros and Rs.100 lakhs for
other places.
Ans: C
109. Which of the statement is not correct regarding repayment period BOI Star
Home Loan-
A. New construction/New purchase directly from Builder - Max. 30 years
including moratorium
B. New construction/New purchase directly from Builder - Max. 30 years
excluding moratorium
C. For 2nd home / Second hand home purchase - Max. 25 years with
No moratorium
D. Up to the age of 70 years of borrower (in joint a/cs age of senior),
E. For Repairs - Max. 20 years with moratorium of 6 months
Ans: B
110. Which of the following Moratorium period - Linked to floors of the building
is correct -
A. Up to 7 Floors: 18 months, which can be extended up to 24 Months
B. Up to 14 Floors : 24 months, which can be extended up to 30 Months
by approval of ZLCC
C. Up to 14 Floors : 30 months, which can be extended up to 36 Months
by approval of ZLCC
D. Beyond 14 Floors: 36 months, which can be extended up to 42
Months by approval of ZLCC.
E. Beyond 14 Floors: 36 months, which can be extended up to 48
Months by approval of ZLCC.
Ans: E
111. Net take home pay under Star Diamond Home Loan Scheme should be-

A. Min. 25% (Net of EMI) of Gross salary/ income for individuals.
B. Minimum 40% for Gross monthly income up to Rs.1 lakhs
C. Minimum 30% for Gross monthly income over Rs.1 lakhs to Rs.5
lakhs
D. Minimum 25% For Gross monthly income over Rs.5 lakhs
E. For firms/corporates: Min. DSCR=1.25
Ans: A
112. Which is not a feature of Star Diamond Home Loan Scheme-
A. Star Diamond Home Loan Scheme is an extension of Star Home Loan
Scheme
B. Quantum of loan: More than Rs.5.00 crore
C. Rate of interest: As per Star Home Loan Scheme
D. Eligible proponents: HNIs, Firms/ Corporates for their
Partners/Directors with average annual gross income of Rs.1.00
crore & above based on audited Balance sheet/ITRs during last 3
years
E. The scheme is open to all Indians without any stipulation of minimum
yearly average income.
Ans: E
113. Which of the following is not a feature of Star Diamond Home Loan Scheme-
A. Eligible Borrowers- NRIs having valid Indian Passport, PIOs holding
Foreign Passport.
B. Co-Borrower - All co-owners to be co-applicants for the loan. Co-
applicant also could be a resident Indian.
C. Full amount of margin (own contribution) to be paid by the borrower
before 1st disbursement of loan and come from debit of
NRE/FCNR/NRO account in India or through remittance from abroad.
D. Rental income of the property, wherever it is considered for
calculation of eligibility also could be credited directly to Loan
account.
E. Foreign National of Non-Indian origin closely associated with
Borrower can be included as a co-owner or co-borrower and his/her
income also could be considered for calculation of quantum of loan.
Ans: E
114. The Basel Committee on Banking Supervision is a committee of banking
supervisory authorities that was established by……………..
A. European countries
B. UAE
C. The central bank governors of the G-10 countries
D. Finance Ministers of G-10 countries
E. Governor of US Federal Reserve
Ans: C
115. Under Basel I Accord, BCBS fixed the minimum requirement of capital funds
for banks at………..
A. 5 per cent of RWA
B. 8 per cent of RWA
C. 9 per cent of RWA
D. 10 per cent of RWA
E. 1000 crore

Ans: B
116. Basel II accord was introduced by BCBS on………..
A. 1974
B. 1988
C. 1996
D. 2004
E. 2009
Ans: D
117. The Risks considered for capital requirements under modified Basel I, 1996
are…………
A. Credit risk, market risk and operational risk
B. Only Credit risk
C. Credit risk and operational risk
D. Credit risk and market risk
E. Liquidity risk and legal risk
Ans: D
118. The first pillar under Basel II talks about……………..
A. Supervisory review
B. Minimum capital requirements
C. Market discipline
D. Capital Conservation Buffer
E. Disclosure norms
Ans: B
119. As per Basel II framework, the total of Tier II capital permitted upto a
maximum of ………………..
A. 50 per cent of Tier I capital
B. 75 per cent of Tier I capital
C. 25 per cent of Tier I capital
D. 100 per cent of Tier I capital
E. 200 per cent of Tier I capital
Ans: D
120. Tier I capital of bank consists of its…………….
A. Authorized capital
B. Paid-up capital
C. Paid-up plus Term deposit from depositors
D. Paid-up equity capital plus core demand deposits
E. Issued and fully paid ordinary shares/common stock and perpetual
non-cumulative preference shares and disclosed reserves.
Ans: E
121. The minimum total capital requirement under Basel III is ………… % of total
RWA
A. 8.00
B. 9.00
C. 10.50
D. 11.50
E. 11.00
Ans: C
122. Who formulates BASEL guidelines?
A. World Bank
B. IMF
C. G20 group of governors

D. BCBS
E. Banking heads of European Union
Ans: D
123. Which of the following is correct definition of Probability of default (PD)?
A. It measures the remaining economic maturity of the exposure
B. It is estimated amount outstanding in a loan commitment if default
occurs
C. It measures the proportion of the exposure that will be lost if Default
occurs
D. It measures the likelihood that the borrower will default over a given
time horizon
E. It is the actual amount of off- balance exposure crystalized during
last FY
Ans: D
124. Which of the following is correct definition of Loss Given Default (LGD)?
A. It measures the remaining economic maturity of the exposure
B. It is estimated amount outstanding in a loan commitment if default
occurs
C. It measures the proportion of the exposure that will be lost if Default
occurs
D. It measures the likelihood that the borrower will default over a given
time horizon
E. It measures the likelihood the losses due to internal fraud
Ans: C
125. In line with BASEL-II guidelines, what was the minimum percentage CRAR
prescribed by Reserve Bank of India?
A. 9.00%
B. 8.00%
C. 7.00%
D. 6.00%
E. 11.50%
Ans: A
126. To calculate capital adequacy ratio, the banks are required to take into
account which of the following risks?
A. Credit risk and Operational risk
B. Credit risk and Market risk
C. Market Risk and Operational Risk
D. Credit Risk, Market risk and Operational risk
E. Credit Risk, Market risk, Operational risk and Liquidity risk
Ans: D
127. Which of the following statements is not correct regarding Basel III
implementation in India?
A. Minimum Tier 1 capital ratio should be 8%
B. Maximum Tier 2 capital should be 2%
C. Minimum total capital ratio should be 9%
D. Minimum total capital ratio plus capital conservation buffer should be
11.5%
E. Capital Conservation buffer (common equity) should be 2.50%
Ans: A
128. RBI implemented the Basel-III recommendations in India, w.e.f
A. 01.01.2013

B. 31.03.2013
C. 01.04.2013
D. 30.09.2013
E. 31.12.2013
Ans: C
129. Basel II capital regulations are based on 3 mutually reinforcing pillar. These
pillars are - 1. Minimum capital standards 2. Supervisory review of capital
adequacy 3. Risk management
A. All the 3 are correct
B. Only 1 and 2 are correct
C. Only 1 and 3 are correct
D. Only 2 and 3 are correct
E. Only 2 is correct
Ans: B
130. Under Basel II the option available to compute capital for credit risk are:-
A. The standardized approach
B. Risk management approach
C. Advance measurement approach
D. Basic Indicator Approach
E. Internal Rating Based (IRB) approach
Ans: E
131. Under Basel III, the options available to compute capital for operational risk
are
A. Standardized approach
C. Advance measurement Approach
D. Basic Indicator Approach
E. Internal Rating Based (IRB) approach
Ans: D
132. Under Basel III, the options available to compute capital for market risk
are:
A. Standardized approach
C. Standard Duration Approach
D. Basic indicator approach
E. The standardized approach
Ans: C
133. In India, the banks are required to maintain a minimum Pillar 1 capital to
risk weighted assets ratio (or minimum total capital to risk weighted assets
ratio) of………… a s o n ……………
A. 8%, 31st Mar each year
B. 9%, 31st Mar each year
C. 8%, on-going basis
D. 9%, on-going basis.
E. 10.50%, on-going basis
Ans: D
134. SHG under DAY-NRLM consist of 10-20 members, in case of special SHGs
like group in in difficult areas, group of physically challenged persons it may
start with minimum _____ members.
A. 5
B. 6

C. 7
D. 8
E. 9
Ans: A
135. Under DAY-NRLM normally exclusive women groups are formed, however
special category groups may consist of ______
A. Women
B. Men
C. Transgender
D. Both men and women
E. Children
Ans: D
136. Maximum amount of revolving fund that a DAY-NRLM SHG gets is _______
A. Rs.5,000
B. Rs.10,000
C. Rs.15,000
D. Rs.20,000
E. Rs.1,000 per member
Ans: C
137. In DAY – NRLM norms for good SHG i.e. regular meetings, regular saving,
regular internal lending, regular recovery, maintenance of proper books are
collectively called______
A. Panchatantra
B. Panchasutra
C. Panchopdesh
D. Panchoddesh
E. Panchak
Ans: B
138. Minimum rate of interest that DAY-NRLM SHG will be charged by
bank/financial institution is ___ and on maximum loan amount ____
A. 4%, Rs.3 lakhs
B. 7%, Rs.5 lakhs
C. 7%, Rs.10 lakhs
D. 7%, no limit since women SHG
E. 7%, Rs.3 lakhs
Ans: E
139. What is the minimum amount of transfer required for RTGS is _____.
A. Rs. 1 lakh
B. Rs. 2 lakh
C. Rs. 5 lakh
D. Rs. 50,000
E. No Limits
Ans: B
140. MICR code is used for ________.
A. For Code Banking Solution
B. For Electronic Funds Transfer
C. For Electronic Clearance of Cheques
D. For Cheque Truncation Services
E. None of the given options is true

Ans: C
141. Smart Money is a term used for ________.
A. Internet Banking
B. Credit Card
C. Mobile Apps
D. Demand Drafts of Banks
E. New currencies issued after demonetisation
Ans: B
142. The Indian Financial System Code (IFS Code) is an alphanumeric code that
uniquely identifies a bank-branch participating in the two main Electronic
Funds Settlement Systems in India. IFSC code consists of how many
alphanumeric codes?
A. 10
B. 11
C. 9
D. 12
E. 8
Ans: B
143. As per revised guidelines on BSBDA, Money Transfer (MT) (Cash to A/C) is-
A. Rs.10,000/- per trnx; Max. Rs.20,000/=per day/per beneficiary
B. Rs.5,000/- per trnx; Max. Rs.20,000/=per day/per beneficiary
C. Rs.15,000/- per trnx; Max. Rs.49,999/=per day/per beneficiary
D. Rs.25,000/- per trnx; Max. Rs.49,999/=per day/per beneficiary
E. Rs.10,000/- per trnx; Max. Rs.49,999/=per day/per beneficiary
Ans: E
144. "BOI Credit control app" offers the following controls and features:
A. Lock/Unlock card, Green PIN, Increase Card Limits as per AQB in
account
B. Lock/Unlock card, Green PIN, Set Card Limits, Account summary
C. Lock/Unlock card, Green PIN, Set Card Limits, Activate their dormant
account
D. Lock/Unlock card, Green PIN, Set Card Limits, Request for Add-on
Card
E. Lock/Unlock card, Green PIN, Set Card Limits, Pay Card dues using
this app
Ans: B
145. “BOI CARD SHIELD” App is for
A. Debit Cards
B. Credit Cards
C. Smart Cards
D. Kisan Cards
E. Debit and Credit Cards
Ans: A
146. What are the variants of RuPay Credit Card?
A. Rupay Platinum & Swadhan Titanium Credit Card
B. Rupay Platinum & Swadhan Classic Credit Card
C. Rupay Classic & Swadhan Platinum Credit Card
D. Rupay Platinum & Swadhan Platinum Credit Card
E. Rupay Titanium & Swadhan Titanium Credit Card

Ans: D
147. What is insurance Cover on Rupay Platinum & Swadhan Platinum Credit
Card in case of loss of life or permanent disability due to accident from
NPCI?
A. Up to Rs.10 Lacs
B. Up to Rs.8 Lacs
C. Up to Rs.6 Lacs
D. Up to Rs.4 Lacs
E. Up to Rs.2 Lacs
Ans: E
148. What is the full form of NCMC?
A. National Common Mobility Card
B. National Common Municipality Card
C. National Credit and Mobility Card
D. National Common Mobile Credit Payment
E. National Confidential Mobility Card
Ans: A
149. What is Annual Membership Fee for RuPay Platinum and Swadhan Platinum
Add-on Credit Card?
A. For RuPay Platinum – Rs.500 & For Swadhan RuPay Platinum -
Rs.100
B. For RuPay Platinum – Rs.600 & For Swadhan RuPay Platinum - Rs.Nil
C. For RuPay Platinum – Rs.650 & For Swadhan RuPay Platinum -
Rs.200
D. For RuPay Platinum – Rs.700 & For Swadhan RuPay Platinum -
Rs.250
E. For RuPay Platinum – Rs.800 & For Swadhan RuPay Platinum - Rs.Nil
Ans: E
150. What is the periodicity of various credit card billing?
A. Billing is done on the 15th of every month, debiting customer's
account 5th of next month.
B. Billing is done on the 5th of every month, debiting customer's account
15th of next month.
C. Billing is done on the 6th of every month, debiting customer's account
15th of next month.
D. Billing is done on the 16th of every month, debiting customer's
account 4th of next month.
E. Billing is done on the 5th of every month, debiting customer's account
21st of next month.
Ans: A
151. BOI International Travel Card is available in which currency
A. In US Dollar only
B. In US & Euro both
C. In Euro only
D. In Pound Sterling & US Dollar both
E. In Pond Sterling only
Ans: A
152. BOI Gift Card is a –
A. Master Card
B. RuPay Card
C. American Express Card

D. Discover Card
E. Visa Card
Ans: E
153. What is the Swadhan Credit Card (against TDR) limit –
A. Minimum Rs. 20,000/- & Maximum Rs.100 Crore
B. Minimum Rs. 24,000/- & Maximum Rs.250 Crore
C. Minimum Rs. 30,000/- & Maximum Rs.150 Crore
D. Minimum Rs. 40,000/- & Maximum Rs.200 Crore
E. Minimum Rs. 15,000/- & Maximum Rs.175 Crore
Ans: B
154. Credit Card Delegation (For Non-Staff) is-
A. Scale I – Rs.0.50 Lacs; Scale II – Rs.1.00 lacs & Scale III – 4.00 Lacs
B. Scale I – Rs.0.75 Lacs; Scale II – Rs.1.50 lacs & Scale III – 5.00 Lacs
C. Scale I – Rs.1.00 Lacs; Scale II – Rs.1.50 lacs & Scale III – 6.00 Lacs
D. Scale I – Rs.1.50 Lacs; Scale II – Rs.2.00 lacs & Scale III – 5.00 Lacs
E. Scale I – Rs.1.75 Lacs; Scale II – Rs.2.25 lacs & Scale III – 6.00 Lacs
Ans: A
155. Which of the following option is incorrect?
A. First time, it is mandatory to generate Debit Card Green PIN using
BOI Mobile Banking App
B. Debit Card Green PIN can be generated through BOI ATM
C. All Personalised Card PIN can be issued by Branch through Finacle
menu “ATMCRA”
D. Customer can change their Debit Card PIN through BOI Internet
Banking
E. Customer can unblock their Debit Card through BOI Internet Banking
Ans: A
156. In BOI Debit Card Renewal case, which is the correct option for renewing
the card-
A. Transactions not initiated during the last six months of expiry date of
the card,
B. All active cards which are going to expire are auto Renew in Advance
and send to customer address.
C. Closed account
D. Cards are hotlisted/inactive.
E. Account closed/dormant/NPA
Ans: B
157. Which option is Incorrect for BOI Credit Card Cash Advance Charges.
A. BOI ATM – 2.5% (minimum Rs. 75/-) for each transaction
B. BOI ATM - 2% (minimum Rs. 50/-) for each transaction.
C. Other ATM - 2.5% (minimum Rs. 75/-) for each transaction.
D. Overseas ATM - 2.5% (minimum Rs. 125/-) for each transaction and
Currency Conversion Charges, presently 2%.
E. Interest on dues / overdue applicable.
Ans: A
158. Credit Card Star Easy Pay (EMI) – which option is incorrect?
A. Processing Charges - One-Time i.e.1.00% of the Purchase (Existing
2.20%).
B. Processing Charges - One-Time i.e.0.50% of the Purchase (Existing
2.50%)

C. Finance Charge - 1.25 % of the Purchase (existing 1.50% p.m. on
original amount).
D. Finance Charge. - In case of default service charges is 2.50% p.m.
(34.50 % p.a).
E. Finance Charge. - Prepayment Charges – Nil.
Ans: B
159. What is per day limit of the BOI Sangini Debit Card?
A. Cash withdrawal - Rs. 15000/- & E-com txn - Rs. 25000/-
B. Cash withdrawal - Rs. 20000/- & E-com txn - Rs. 25000/-
C. Cash withdrawal - Rs. 25000/- & E-com txn - Rs. 50000/-
D. Cash withdrawal - Rs. 50000/- & E-com txn - Rs. 75000/-
E. Cash withdrawal - Rs. 10000/- & E-com txn - Rs. 15000/-
Ans: A
160. What is the default per transaction (max.) & per day (max.) RTGS limits for
BOI Retail Internet Banking customer?
A. Per transaction - 25 lacs & per day – no limit
B. Per transaction - 5 lacs & per day – 15 lacs
C. Per transaction - 2 lacs & per day – 15 lacs
D. Per transaction - 15 lacs & per day – 25 lacs
E. Per transaction - 15 lacs & per day – 50 lacs
Ans: D

प्रबंधन विकास संस्थान
प्लॉट संख्या – 30, सेक्टर – 11
सीबीडी बेलापुर,
नवी मु म्बई - 400614

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मनु भाकर

पदोन्नति परीक्षा हेिु संकेिात्मक अध्ययन सामग्री

Management Development Institute

The promotion process is around the corner and there is a lot

We at MDI are committed to disseminating knowledge amongst

This version of ‘Vijeta-March 2020’ incorporates the latest updates,

With best wishes,

First of all, please accept our gratitude that your acceptance to

It has benefitted the aspirants in the past & we are confident,

With best compliments,

2. Banking Law & Practice Page 20

3. Risk, Capital & Fund Management Page 43

4. F.I., Priority Sector & Agriculture Page 55

5. MSME Page 107

6. Retail Credit Page 157

7. Commercial & Institutional Credit Page 177

8. Credit-Monitoring & NPA Management Page 193

9. Foreign Exchange Page 221

10. Deposits Page 227

11. राजभाषा - Official Language Page 253

12. ITES/ADC/Card Products Page 261

13. Sample Questions Page 402

KNOW YOUR CUSTOMER (KYC)

Vijeta – March 2020 Page | 1

Vijeta – March 2020 Page | 2

Customer Identification Requirements (Indicative)

Vijeta – March 2020 Page | 4

Vijeta – March 2020 Page | 5

Vijeta – March 2020 Page | 6

Vijeta – March 2020 Page | 7

 Banks are expected to ensure that preventive measures are put

Combating Financing of Terrorism

 Any transaction which gives rise to a reasonable ground of

Freezing of Assets under Section 51A of Unlawful Activities

 Central Government is empowered to freeze, seize or attach

Vijeta – March 2020 Page | 8

Vijeta – March 2020 Page | 9

Vijeta – March 2020 Page | 10

Role of Ordering, Intermediary and Beneficiary banks

Ordering Bank / Intermediary Bank

Vijeta – March 2020 Page | 11

Vijeta – March 2020 Page | 12

Customer Education/ Training of Employees / Hiring

Identification of Beneficial Owner:

Enhanced Due Diligence (EDD)

Vijeta – March 2020 Page | 13

1. Passport (Within validity);

Address: In case the identity information relating to OVD submitted by the

Vijeta – March 2020 Page | 14

B. Simplified KYC norms:

Vijeta – March 2020 Page | 15

Vijeta – March 2020 Page | 16

Central KYC Registry

Vijeta – March 2020 Page | 17

Vijeta – March 2020 Page | 18

Vijeta – March 2020 Page | 19

The Indian Contract Act, 1872

Vijeta – March 2020 Page | 20

Vijeta – March 2020 Page | 21

The Indian Partnership Act, 1932

Negotiable Instruments Act 1881

Vijeta – March 2020 Page | 22

Vijeta – March 2020 Page | 23