INDIAN OVERSEAS BANK

PAYMENT & SETTLEMENT SYSTEM

DEMAND DRAFT

Charges of IOB Demand Draft:

Amount Range Charges

Up to Rs. 5000 Rs. 25

Rs. 5000- Rs 10,000 Rs. 60
Rs. 10000- Rs. 100000 Rs. 5 per 100000
Above Rs. 100000 Rs. 4.50 per 100000

Demand draft is something which is recoverable in nature and that is needed

to be paid to a bank by a person where the amount to be paid is decided by
the payer. The request of any DD in Indian Overseas Bank needs to be made in
advance to avoid any kind of last-minute rush. For the person who already has
their account with IOB or in general with any bank the issuing of Demand Draft
becomes much easy when compared with the one who does not have an
account with the particular bank, and also the payment needs to be made in
cash by the person not having their account in the bank.

IOB Demand Draft Cancellation Charges:

Amount Range Charges

Upto Rs. 50 NIL

Rs. 50- Rs. 100 Rs. 30
Rs. 100-Rs. 1000 Rs. 80
Rs. 1000 and above Rs. 100
How one can get DD in IOB:
If one is having their account in the bank through which they have to take
Demand Draft, then the person has to issue a cheque in writing by paying it on
there name only in favour of the bank plus the amount charges. After than the
person needs to fill in the challan of DD by giving in the necessary
information’s required of the payee, name of the station on which it is payable,
bank account number, signature, etc. and further submit it at the counter.
And, after proper verification and everything the payee account would be
credited and the person paying the DD in favour of them will be debited.

DIFFERENT TYPES OF MOBILE BANKING APPS USED BY IOB

1. IOB Mobile- It provides the account summary and balance check of the
account and with this it is also used for fund transfer by using various
mediums like NEFT, RTGS and IMPS (Immediate Payment Service).
Account enquiry and fund transfer are its main features. Fund transfer is
can also be done for various day to day transactions required by an
individual.

2. IOB mPassbook- This provides the access to the customer’s passbook via
smartphone. One can search transaction history using the parameters
like date of transaction, amount of transaction done and the type of
account (Savings/ Current/ Deposit). Customers can view these data in
offline mode also.

3. IOB Nanban- It is used to check account balance and E-statement which

is a non-financial transaction on smartphones. Balance enquiry is its
main concern through which savings account, current account, deposit
account and loan status can be carried out.

4. BHIM IOB UPI- BHIM UPI transfer is available for IOB banking services
also making it easy for the consumer as there is a direct transfer of funds
24/7 by the means of QR code or valid UPI code of the user of the
merchant address and for which the banking details is also not required,
the money is sent/ received using virtual address.
CHEQUE COLLECTION POLICY
SPEED CLEARING SYSTEM: Through this system, customers have an option of
presenting their drawn cheques on other bank’s CBS Branch with the help of
Local Clearing and with this the person gets the clearance according to the
given time frame which is applicable. Though, this facility is only available at
selected centres/ branches only. For this the service charges which is
applicable is also collected from the customer for smooth functioning.

CTS (CHEQUE TRUNCATION SYSTEM): This system is introduced recently in the

certain centres where instead of physical exchange of cheques to drawee bank
given for clearing will be removed and the images will float for the payment or
warranted return. Because this system is new in the market slowly and steadily
the system will be introduced to every branch of IOB also.

IMMEDIATE CREDIT OF LOCAL/OUTSTATION CHEQUES: To avail this facility

the account holder should be fulfilling the following conditions-
 Having their account with the bank from at least 6 months and also all the
KYC norms must be completed by the customer.
 The bank has to verify any irregularities in the dealings from that account if
any and give their view regarding the same.
 No debts should be unpaid by the account holder at any case.
 The bank has not experienced any kind of difficulty while loan recovery of
any amount in the past.
The bank should also levy normal collection charges while providing
immediate credit for local or outstation cheques, but exchange charges
applicable for the same is not to be charged.

LOCAL CHEQUES: The maximum time taken for the clearance of local cheque
should not be more than 3 days at any case and if it is then the interest should
be paid according to the delay period.
MICR (Magnetic Ink Character Reading) and IFSC Code:
MICR and IFSC Code are two different things and is different for every bank and
its branches to distinguish it from its branches and acts as an identification for
the bank branch. IFSC stands for Indian Financial System Code and this IFSC
code is further used for the transfer of funds through various electronic means
like RTGS/ NEFT /CFMS (Centralised Funds Management System). The IFSC
Code of IOB starts with the same alphabet and number and only the last 4
digits are the distinguishing factor. For IOB it is a mixture of 11 alphabets and
numbers which is IOBA000_ _ _ _.
MICR Code is completely different for every bank branch and is a
9-digit number only. These IFSC and MICR codes are allotted to each bank by
RBI.

CBS (CORE BANKING SYSTEM)

Core Banking system is something that every customer of bank is given by the
banks so that the customers can access the bank details and perform basic
transactions from any of the member branch offices of that particular bank.
IOB has also upgraded their core banking system of with the
help of Oracle platform which is an ADF (Automated Data Flow) where the
automated data will be generated directly from the banks computer system
without any need of human intervention which have made the lives easy of the
bank employees. Earlier to this core banking system which is currently used by
IOB, IOB was using a Sybase platform which with the launch of the Oracle
platform was dumped. The cost of which is half of the installation of the ATM’s.
For the implementation of any kind of Core Banking System RBI asks to float an
RFP which stands for Request for Proposal for the implementation of CBS. And,
also the selection of any CBS platform provider goes through a common
Request for Proposal.
TYPES OF IOB DEBIT CARDS:
There are mainly three form of Debit card option which is present in every
bank which are Visa, Mastercard and RuPay. But, under these categorizations
we have several other IOB cards which are discussed as under:

VISA CARDS
1. IOB Visa Gold- Charges for issuance of this card is ₹ 200 + GST. The daily
cash withdrawal limit is ₹ 30,000 and the daily limit for usage in
Merchant Establishments (PoS) is ₹ 75,000. Annual maintenance fee
charged on this card is ₹ 150 plus GST which is charged from second year
onwards at the beginning of the year.

2. IOB Visa Platinum- Daily cash withdrawal limit and daily limit for usage in
merchant Establishments (PoS) is ₹50,000 and ₹2 Lakh respectively.
Charges for issuance of this card is ₹ 250 + GST and annual maintenance
fees is ₹ 200. This card also provides some of the additional benefits like
Travel Assistance where one can book air ticket with the help of
International Travel Agents using a toll-free number which is provided by
VISA only and also id if the ATM’s are not working of a particular country
then the customer can approach VISA office and can get the fund
transferred with these cards help.

3. IOB Visa Classic- Daily cash withdrawal limit and daily limit for usage of
Merchant Establishments is ₹ 20,000 and ₹ 50,000 respectively. Charges
for issuance of this card is ₹ 100 and the annual maintenance fee is ₹
150.

4. IOB SME Visa- Daily cash withdrawal limit and daily limit for usage at Pos
& Ecom is ₹50,000 and ₹ 1,00,000 respectively, Charges for issuance is ₹
150 and annual maintenance fee is ₹ 100. This card helps in monitoring
the business transactions and this card can be used by business man
only which has a restriction of usage in jewel shops and can only be used
for business transactions.

* All the amount which is given above will also include a nominal GST charges
which is an extra applicable amount. *
MASTERCARDS
1. IOB Mastercard- Daily cash withdrawal limit and daily usage limit in
Merchant Establishments is ₹ 20,000 and ₹ 50,000 respectively. Issuance
charges is ₹100 and annual maintenance fee is ₹ 150. This is the very
common card given by any bank to their bank account holders.

RUPAY
1. IOB Rupay Classic- All the details are same to that of an Mastercard
which is mentioned above, the only difference between Mastercard and
Rupay card is that Rupay cards can be used only in India but
Mastercard’s and Visa cards could be used all over the world. Rupay
cardholders will be eligible for the compensation on only 1 eligible card
per holder.

2. IOB Rupay Platinum- Daily cash withdrawal limit and daily usage limit in
Merchant Establishments is ₹ 30,000 and ₹ 75,000 respectively. The
issuance and annual maintenance fee of platinum Rupay card is ₹ 150.
This card provides personal accident (Death) and permanent disability
insurance of up to 2 Lakh rupees. There are various other services also
available in this card which is subject to vary as per the NPCI Policy.

3. IOB Rupay NCMC (National Common Mobility Card)- It is a new launch

which has the minimal risk and this risk is minimal because the
transaction is permitted against available balance in the Local wallet of
each service Id. In this PIN number is not required to be entered for the
transaction to be completed. It is also a combination of both contact as
well as contactless feature with Near Field Communication Technology.
The Near Field Communication Technology is a set of
communication that usually takes place between two electronic devices
with a distance of over 4 cm or less, offering a low-speed connectivity
through wireless methods.
TYPES OF IOB CREDIT CARDS:
IOB issues two types of credit cards which are (i)IOB Gold and (ii) IOB Classic.
Details of these two credit cards are as follows:

1. IOB Gold: Card limit of this is from ₹ 60,000 to ₹ 5 Lakh. No issuance

charges are charged for credit cards, but photo card charges of Gold card
cost ₹ 100. The cash advance interest on this card is 24% p.a. which is
charged from the date of the withdrawal till the time of its settlement.
Cash withdrawal is 40% of the credit limit and by using this card one can
purchase up to 50% of the credit limit at jewellery shop. Service tax and
Cess are applicable extra charges charged on the card and other than this
the card holder also needs to pay extra service charges at some of the
places like railway, petrol station, etc.

Various insurance facilities which come free of cost with IOB Gold Classic
cards are:
1. Personal Accident (Due to
Death)
a.) Air Crash- I. Self ₹ 10 Lakhs
II. Spouse ₹ 2 Lakhs

b.) Road/ Rail- I. Self ₹ 2 Lakhs

II. Spouse ₹ 1 Lakhs

2. Baggage Insurance ₹ 0.25 Lakhs

3. Purchase Protection ₹ 0.25 Lakhs

No other charges like Debit Card like annual maintenance cost etc are charged
in credit card facility.
 2. IOB Classic: Card limit of this is from ₹ 10,000- ₹50,000, no annual
maintenance charges and hot listing fee is charged. Hot listing fee is the
cost of replacing the existing card with new chip- based card. Cash charges
for withdrawal from any other bank can cost a customer 100 ₹.
The other information’s related to service charges and
tax remains same to that of a IOB Gold Card.

Various insurance facilities free of charge which comes in handy with IOB
Classic Credit card are as follows:

1. Personal Accident (Due to

Death)
a.) Air Crash- I. Self ₹ 4 Lacs
II. Spouse ₹ 2 Lacs

b.) Road/ Rail- I. Self ₹ 2 Lacs

II. Spouse ₹ 1 Lacs

2. Baggage Insurance ₹ 0.25 Lacs

3. Purchase Protection ₹ 0.25 Lacs

The minimum card limit for both of the cards is ₹ 10,000 and the maximum
credit limit is fixed at ₹ 5 Lakhs. The interest charged is fixed @24% per annum
on annualised method. Credit cards has flexible payment options available for
its card holder.