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A Reference Study Material for Promotion
Exercise (from Clerical to Officers’ cadre)

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2023-24
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Baroda Academy
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Bank of Baroda
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For internal circulation only

Do Not Print unless extremely required. Save Paper, Save Trees and
preserve Environment.

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 Disclaimer: Though all efforts have been made to incorporate
latest and correct information of the related topics but in case of
any doubt please refer Book of Instructions, reference books and
circulars of the Bank. This booklet is focusing mainly on the
written promotion exam within the Bank (based on previous
trends) and should not be considered as an instruction manual.

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Employees are supposed to update themselves by reading
Bank’s latest circulars & Bank guidelines.

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As regards, General Knowledge, Reasoning and English
Comprehensions, an attempt is made to reflect few of the many

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ways in which questions can be put forward. General Knowledge
may be tested from various spheres for e.g. Awards, Sports,

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Economy, etc. Same should not be construed static. Various

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resources available on internet may be referred for latest trend
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of questions in these areas. Please update yourself by reading
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latest banking industry/ other general awareness related news.
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The General Knowledge chapter is indicative only.

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 Sr. No. Topics Page No.

1. Banking Law & Practice 4

Banking Technology 60

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2.

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3. General Knowledge 81

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4. Rural Banking 100

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Reasoning & Problem Solving 149

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6. English 181

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 Banking Law & Practices

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1. Introduction:

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With the widening areas of banking operations, transactions which are undertaken by

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banks are ever growing, both in volume and veracity. Certain important provisions of laws
which embody rights, powers, duties, liabilities and responsibilities of a Bank, are briefly

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dealt with, in this chapter. Certain important provisions of following laws are covered:

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1.1. Negotiable Instruments Act, 1881: Certain important Sections are given below.

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Negotiable Instrument Act 1881: At a glance –

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 A Negotiable instrument means Promissory Note, Bill of Exchange or Cheque

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payable either to order or to the bearer.
 As per practice and usage and as per court decisions, certain instruments such as
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Treasury Bills , Certificate of Deposit, Commercial Paper, Gov. Promissory Note
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are also Negotiable instruments.

 Some Instrument like Railway Receipt , Bills of Lading, Warehouse Receipt etc.
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are also treated as Negotiable instruments as per Section 137 al Transfer of

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Property Act.
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 The main feature of a negotiable instrument that it in freely transferable and the
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title of the transferee will be better than transferor.

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 Promissory note: As per Sec 4, PN is in writing, containing unconditional

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undertaking or promise, signed by the maker, to pay a certain amount of money to

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or to the order of a certain person or to the bearer thereof. It requires payment of

stamp duty and can be demand PN or usance PN. There are 2 parties (maker and
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payee).
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 Currency /Bank notes are excluded from the definition of promissory note.
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 Bill of exchange: As per Sec 5. BOE s an instrument in writing containing an

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unconditional order, signed by maker, directing a certain person to pay a certain

sum of money only or to the order of a certain person or to the bearer of the
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instrument. In a Bill of Exchange, the person ordering for payment is called Drawer
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and the person directed to pay is called drawee. The beneficiary is called payee.
 Cheque is defined in Sec 6 of NI Act. Cheque is a bill of exchange but always
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payable on demand and drawee is always a banker. It also included truncated

cheque and electronic cheque. A cheque is similar to a Bill of Exchange.
 A negotiable instrument can be payable to bearer or order. If neither bearer nor
order is written it is treated as payable to order. If both bearer or order are written

4
 it is treated as payable to bearer.
 Inchoate Instruments: As per section 20 of the NI Act, an instrument on which
date, payee or amount is not mentioned is called as Inchoate or incomplete
instrument. Incomplete cheque can be completed by the Holder and the

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completion will not be treated as material alteration. An instrument without
signatures is not treated as an instrument at all.

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 Holder of a promissory note, bill of exchange or cheque means any person entitled

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in his own name to the possession thereof and to receive the amount due thereon
from parties thereto.

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 Holder in Due Course: defined in Section 9 of the NI Act. Holder in due course is

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a person who became processor of a NI for valuable consideration, in good faith
before becoming due, and without having any reason to believe that the person

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transferring the instrument was not entitled thereto.
 Negotiation of a Bearer Instruments: A bearer instrument is negotiated by mere

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delivery and no endorsement is required
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Negotiation of an order instrument: An order instrument can be negotiated by
endorsement followed by delivery. It may be noted that legal heirs cannot complete
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the negotiation of a negotiable instrument with endorsement by the deceased
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merely by delivery.
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 Endorsement: Signing of an instrument on the back or face thereof or on a slip of

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paper annexed there for the purpose of negotiation is called endorsement (Section
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15). The person who transfers the instrument is called endorser and the person to
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whom it is transferred is called endorsee.

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 Endorsement can be a Blank Endorsement(just sign at the back) , Endorsement

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in full (Indicates the name of endorsee), Conditional Endorsement ( impose a

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condition by endorser), Restrictive Endorsement (restricts further negotiation),

Sans Recourse Endorsement (excludes endorser liability).
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 Payment of cheques: A paying banker gets protection under Section 85 of the NI

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Act.
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 Payment in Due Courses: As per Sec 10, a payment would be considered in due
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course it. (a) Payment as per apparent tenor of instrument; (b) Payment in good
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faith and without negligence; (c) payment to person in possession of instrument d)

payment under circumstances which do not afford a reasonable ground for
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believing that he is not entitled to receive payment of therein.

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 Form of The cheque has not been given in the Act . It is simply a per practice.
However, RBI has prescribed formats per new cheque standards CTS 2010 and
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all banks providing cheque facilities to their customers, will issue only CTS-2010'
standard cheques across the country.
 Different ink: A cheque can be drawn in different inks, handwritings of different
script. Thus, a cheque is presented with different ink, handwriting script can be

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 paid.
 Language: The cheque should be written in Hindi, English or Regional languages.
Bank is within its powers to return a cheque written in a language other than the
language of that region.

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

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Signatures on Back: When a cheque is presented for payment, signatures of the
presenter are taken on the back as a witness of payment. If the presenter refuses

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to sign, the bank can take receipt on a separate paper.

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 Date of the cheques can be :
a) Ante dated : Cheque dated prior to its date of presentation. It is a valid cheque

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and can be paid.

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b) Post dated- Cheque dated subsequently to the date of presentation.
c) Stale Cheque- As per RBI guidelines , a cheque becomes stale after . months

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of its issue.
d) Impossible date- Line 31.11.2019. It should be paid on the last day of the month

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or within 3 months of the last day of the month.

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e) Cheque date is of holiday. Like 15.08.2019. It is valid cheque and can be paid
before it becomes stale.
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The amount written in words is called legal amount and amount written in figures
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is called courtesy amount.
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 As per Sec 18 of NI Act, if the amount written in words and figures differ, the
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amount written in words should be paid. In practice, the cheque is returned with
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reason” Amount in words and figures mismatch”.

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 Banking Hours: The payment of a cheque should be made only during banking
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hours otherwise it will not be a payment in due course. However, the payment of
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a reasonable amount can be made to drawer even after banking hours.In our bank
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it is Rs.5000/- as per books of instruction.

 Mutilation: if there is any mutilation of cheque, it should be confirmed by drawer
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or by collecting banker.
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 Material alteration: Any change in date, amount or name of payee is called

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material alteration. The change from order to bearer, or cancellation of crossing or

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converting special crossing to general crossing is also material alteration.

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However, bearer to order of completing an incomplete cheque is not material

alteration. If there is any material alteration on a choque can be paid only after
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confirmation from drawer under his full signatures.

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 General Crossing: Crossing is of two types - General or special crossing. If there

are two transverse lines anywhere on the face of cheque it is called General
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Crossing. The parallel lines can be with words and company or & co or not contain
any word. (See 123). For General crossing parallel lines are must. Any other thing
is not so material. A cheque on which name of some station like Indore is written
between two parallel lines will be called Generally crossed cheque. Crossing is

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 direction of drawer to paying banker. Accordingly, crossed cheque can be paid to
or through a bonk only in cash or through clearing) and not across the counter, to
payee or holder. A cheque wh General Crossing should be paid only to a bank.

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 Special Crossing # name of a bank is written on the face of a cheque with or

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without two parallel transverse lines it is called special crossing (Section 124).

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Parallel lines are not necessary. The name of bank can be written anywhere on

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the face of a cheque. Specially Crossed cheque can be paid only to the bank
whose name is mentioned on the cheque. A cheque crossed to two banks has to

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be returned unpaid unless crossed by one bank to another as his agent for

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collection.

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 RBI has directed banks not to collect “account payee” was for any person other
than the payee. RBI has clarified that the practice of collecting third party account

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payee cheques on behalf of co-operative credit societies who are their constituents

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can be allowed it the amount is up to Rs 50,000.

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 Payment cannot be made in case of (a) death, insolvency .insanity of customer
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or insolvency of partner or liquidation of company (b) stop payment (c) receipt of
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garnishee attachment order (d) post dated cheque (e) stale cheque. However,
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payment can be made in case of death of agent authorized signatory of a company,

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agent appointed by a customer, trustee, office bearer of society or club etc.) where
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cheque is not dated prior to date of authority to the agent and subsequent to date
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of death.
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 As per section 138 deals dishonor of Cheque for insufficiency etc. of funds in
the account. Where any cheque drawn by a person on account maintained by him
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with a banker for payment of any amount of money to another person from out of
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that account for the discharge, in whole or in part, of any debt or other liability, is
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returned by the bank unpaid, either because of the amount of money standing to
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the credit of that account is insufficient to honor the cheque or that it exceeds the
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amount arranged to be paid from that account by an agreement made with that
bank, such person shall be deemed to have committed an offence and shall,
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without prejudice to any other provision of this Act, be punished with imprisonment
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for a term which may be extended up to two years, or with fine which may extend
up to twice the amount of the cheque, or with both. The Provisions of the Article
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is also applicable in bouncing of cheques due to stop payment Instructions.

 In accordance with section 143A of the Amendment Act, any court while trying an
offence for dishonour of a cheque can now direct the drawer, who is the issuer of

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 the cheque, to pay interim compensation to the complainant. Under this section of
the Amendment Act, the court now has the authority to direct such interim
compensation in circumstances of a summary trial or a summons case wherein
the drawer pleads to be not guilty and upon the framing of any other charge. The

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amount of compensation payable cannot exceed 20% of the amount as stated in
the cheque. This amount has to be paid within a stipulated time period of 60 days

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from the date of the order passed by the court, or further within the extended period

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of 30 days, as may be directed by the court on showing sufficient cause for the
delay caused. On acquittal of the drawer, the court will consequentially direct the

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complainant to pay the drawer the prescribed amount along with the interest. The

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interest will be levied at the rate which was prevalent at the beginning of the
financial year. As per the section such recovery of the payment has to be made

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within a time period of 60 days in furtherance to a delay of 30 days.It has to be
further noted that the final compensation if awarded to the complainant on the

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disposal of the case, will be after the deduction of the interim compensation.

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 Section 148 of the Amendment Act provides that in the event of the conviction
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of the drawer of the cheque, if the drawer proceeds to file an appeal, the appellant
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court has the power to order the drawer of a cheque to deposit an amount. This
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deposited amount has to be a minimum of 20% of the fine or compensation

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awarded by the Magistrate Court in the appeal preferred against his/her conviction.
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This amount can be ordered anytime during the pendency of the appeal. The
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procedure relating to payment of the above stated fine and refund of the same if
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the appeal succeeds, is similar to what has been laid down in Section 143A of the
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Amendment Act.
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1.2. Indian Contract Act, 1872:

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Banking involves interaction between a banker and customer. A customer of a bank may
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be a depositor, borrower or any other person merely utilizing one of the various services
provided by the banker. The interaction of a bank with its customer creates certain
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obligations and gives certain rights to both the bank and the customer.
“All Agreements are contracts, if they are made by parties competent to contract, for a
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lawful consideration and with a lawful object, and are not expressly declared to be void.”
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All Banking transactions are therefore, separate contracts and the knowledge of Indian
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Contract Act is essential for each Banker.

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Section124. "Contract of indemnity" defined-

“A contract by which one party promises to save the other from loss caused to him by the
contract of the promisor himself, or by the conduct of any other person, is called a

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 "contract of indemnity".

Sec. 126 "Contract of guarantee", "surety", "principal debtor" and "creditor" -

A "contract of guarantee" is a contract to perform the promise, or discharge the liability,

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of a third person in case of his default. The person who gives the guarantee is called the
"surety", the person in respect of whose default the guarantee is given is called the

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"principal debtor", and the person to whom the guarantee is given is called the "creditor".

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A guarantee may be either oral or written.

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Section 148. ‘Bailment’, ‘bailor’ and ‘bailee’ defined. -

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A ‘bailment’ is the delivery of goods by one person to another for some purpose, upon a
contract that they shall, when the purpose is accomplished, be returned or otherwise

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disposed of according to the directions of the person delivering them. The person

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delivering the goods is called the ‘bailor’. The person to whom they are delivered is called

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the ‘bailee’.

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Section 172. "Pledge", "Pawnor", and "Pawnee" defined -
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The bailment of goods as security for payment of a debt or performance of a promise is
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called "pledge". The bailor is in this case called "pawnor". The bailee is called "pawnee".
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Section 182. "Agent" and "principal" defined -

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An "agent" is a person employed to do any act for another, or to represent another in

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dealing with third persons. The person for whom such act is done, or who is so
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represented, is called the "principal".]

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In form of Indian Contact (Amendment) Act, 2017 Chapter VI A (Special Provision relating
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to Farming Contracts) have been inserted containing Section 75A to 7L.

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1.3. Indian Partnership Act, 1932:

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A partnership is the relationship between persons who have agreed to share the profits
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of a business carried on by all or any of them acting or all. In India it is governed by the
Indian Partnership Act, 1932, and came into force on 1st October 1932. In the usual
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business of the partnership.

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According to Companies Act 2013, the number of partners in any association shall not
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exceed 100. However, the rules given under Companies (Miscellaneous) Rules, 2014
restrict the present limit to 50.
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Dissolution of a firm: A firm may be dissolved in the following manner:

 Dissolution by Court

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  Dissolution by agreement
 Dissolution by operation of law
 Dissolution on the happening of certain contingencies
 Dissolution by notice

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 Minim number of partners is 2. As per Companies Act 2013, maximum partners

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can be 100.
 Who can become a partner: An individual other than Minor , partnership firm,

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limited company.
 Who can not become a partner: Minor , insolvent, insance can not become partner

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because they are not competent to contract.

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 As per Supreme Court Judgment , HUF cannot become partner as HUF cannot be
liable for action of others.
 As per RBI, NBFC cannot become partner.

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 Registration of a partnership is optional.

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1.4. Reserve Bank of India Act, 1934:
The Act was enacted on 6th March, 1934 to constitute the Reserve Bank of India and
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came into force on 01.04.1935 and has been amended from time to time to meet the
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demands of changing times.
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RBI was established on the recommendations of the the Hilton Yong Commission.
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As per Section 24: RBI can issue bank notes of denomination of

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2,5,10,20,50,100,500,1000,2000,5000,10000
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As per Section 31: No person other than RBI/Central Govt. can draw , accept, make
/issue Bill of Exchange , Hundi or Promissory note payable to bearer on demand.
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Important rates:
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Bank Rate: Section 49 defines it as “The Standard Rate at which it (the bank) is prepared
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to buy or rediscount bills of exchange or other commercial paper eligible for purchase
under this Act”. The present bank rate is 6.15%.
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Cash Reserve Ratio: Section 42(1) defines the Cash reserves of scheduled bank to be
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kept with RBI. Every scheduled bank has to maintain with RBI an average daily balance
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the amount of which shall not be less than 3% of the total demand and time liabilities and
shall not exceed 15%. Presently the CRR is 4.50%.
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Statutory Liquidity Ratio (SLR):According to Section 24 (2-a) of the Banking Regulation

Act, every banking company in India whether scheduled or non- scheduled, is required to
maintain in India in Cash, Gold or unencumbered, approved securities an amount of

10
 which is not less than a certain percentage of the total of its demand and time liabilities
in India. This is known as Statutory Liquidity Ratio (SLR). The ratio keeps on changing
time to time. At present SLR is 18.00 %.

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1.5. BANKING REGULATION ACT, 1949:

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Some of the important provisions of the Act affecting day-to-day transactions at branches

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are discussed hereunder. The amendments made operative by the Banking Laws
(Amendment) Act, 1981 have also been incorporated herein.

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As per section 20, a bank can not grant loans or advances on the security of its own

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shares.

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As per section 24, banks are required to maintain SLR Statutory Liquidity Ratio)

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Barks should transfer to RBI monthly all deposits which have not been operated/claimed

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for the last 10

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years. (Section 26 A).

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Section 45 Y: Power granted to Central Govt to make rules for preservation of records
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Section 45Z: Return of paid instruments to customers after keeping a true copy of such
instruments
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Section 45ZA to 45 ZF relate to Nomination in deposits, safe custody and locker accounts.
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1.6. COMPANIES ACT, 2013:

In India, now companies are governed by Companies Act, 2013. Now All the companies
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are required to be registered under Companies Act, 2013. A company is a juristic person
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created by law, having a perpetual succession and common seal distinct from its
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members. Section 11 of the Companies Act provides that an Association or Partnership

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consisting of more than 10 in the case of Banking Business and more than 20 in the case
of other business shall be registered under the companies act. If not registered, the said
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association or partnership will be illegal.

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The business and the objects of a company and the rules and regulations governing its
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management is known by two important documents called Memorandum of Association

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and Article of Association.

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Registration of charges:
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Under Section 125 of the Act, the following charges created by a company, whether public
or private, on the security of its property or undertaking are void against the liquidator
and/or any creditor of the company unless the prescribed particulars of charge together
with the instrument, if any, by which the charges are created or evidenced or a copy

11
 thereof verified in the prescribed manner are filled with the concerned Registrar of
Companies within -30- days from the date of its creation.

As may be observed, equitable-mortgage created by deposit of title deeds, though without

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any instrument evidencing the charge, requires registration. However, a charge created

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by pledge of movables does not require registration.

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Highlights of Companies Act 2013:

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A. Immediate Changes in letterhead, bills or other official communications, as if full

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name, address of its registered office, Corporate Identity Number (21 digit number
allotted by Government), Telephone number, fax number, email ID, website

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address if any.

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B. One Person Company (OPC): It's a Private Company having only one Member
and at least One Director. No compulsion to hold AGM. Conversion of existing

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private Companies with paid-up capital up to Rs 50 Lacs and turnover up to Rs 2

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Crores into OPC is permitted.
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C. Woman Director: Every Listed Company /Public Company with paid up capital of
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Rs 100 Crores or more / Public Company with turnover of Rs 300 Crores or more
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shall have at least one Woman Director.

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D. Resident Director: Every Company must have a director who stayed in India for
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a total period of 182 days or more in previous calendar year.

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E. Accounting Year: Every company shall follow uniform accounting year i.e. 1 st
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April -31st March.

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F. Loans to director – The Company CANNOT advance any kind of loan / guarantee
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/ security to any director, Director of holding company, his partner, his relative, Firm
in which he or his relative is partner, private limited in which he is director or
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member or any bodies corporate whose 25% or more of total voting power or board
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of Directors is controlled by him.

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G. Articles of Association- In the next General Meeting, it is desirable to adopt Table

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F as standard set of Articles of Association of the Company with relevant changes

to suite the requirements of the company. Further, every copy of Memorandum
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and Articles issued to members should contain a copy of all resolutions /

agreements that are required to be filed with the Registrar.
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H. Disqualification of director- All existing directors must have Directors

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Identification Number (DIN) allotted by central government. Directors who already

have DIN need not take any action. Directors not having DIN should initiate the
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process of getting DIN allotted to him and inform companies. The Company, in
turn, has to inform registrar.
I. Financial year- Under the new Act, all companies have to follow a uniform
Financial Year i.e. from 1st April to 31st March. Those companies which follow a

12
 different financial year have to align their accounting year to 1st April to 31st March
within 2 years. It is desirable to do the same as early as possible since most of the
compliances are on financial year basis under the new Companies Act.
J. Appointment of Statutory Auditors- Every Listed Company can appoint an

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individual auditor for 5 years and a firm of auditors for 10 years. This period of 5 /

77
10 years commences from the date of their appointment. Therefore, those

65
companies have reappointed their statutory auditors for more than 5 / 10 years;
have to appoint another auditor in Annual General Meeting for year 2014.

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K. Constitution of National Financial Reporting Authority (NFRA). NFRA to perform

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its functions through such divisions as may be prescribed by the Central

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Government.

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1.7. Goods & Service Tax Act 2016

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Goods & Services Act was enacted in 2016 and came into effect from 01.07.2017.

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Features:
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1. GST would be applicable on “supply” of goods or services as against the present
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concept of tax on the manufacture of goods or on sale of goods or on provision of
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services. Four slabs have been defined 5%,12%,18%,28%. It would be applicable to

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all products except liquor for human consumption. First time SIN goods have been
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defined by the tax authorities.

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2. GST would be based on the principle of destination based consumption taxation as

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against the present principle of origin-based taxation.

3. It would be a dual GST with the Centre and the States simultaneously levying it on a
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common base. The GST to be levied by the Centre would be called Central GST
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(central tax- CGST) and that to be levied by the States [including Union territories with
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legislature] would be called State GST (state tax- SGST). Union territories without
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legislature would levy Union territory GST (union territory tax- UTGST).
4. An Integrated GST (integrated tax- IGST) would be levied on inter-State supply
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(including stock transfers) of goods or services. This would be collected by the Centre
so that the credit chain is not disrupted.
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In 2018-19, following key announcements were made:

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- Aadhar mandatory for registration of taxpayers under GST and it may become
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mandatory for claiming refunds.

- Quick Response (QR) code may be made mandatory in the Tax Invoice and Bill of
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supply at a later date to be notified.

1.8. Registrar of Companies

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 Registrars of Companies (ROC) appointed under Section 609 of the Companies Act,
covering the various States and Union Territories are vested with the primary duty of
registering companies and LLPs floated in the respective states and the Union Territories
and ensuring that such companies and LLPs comply with statutory requirements under

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77
the Act. These offices function as registry of records, relating to the companies registered
with them, which are available for inspection by members of public on payment of the

65
prescribed fee. The Central Government exercises administrative control over these

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offices through the respective Regional Directors.

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The charge of the financing Institutions on the assets of the company are required to be

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registered with the ROC within 30 days from the date of creation of charge. If the charge
has remained to be created within the stipulated time of 30 days, then also the charge
can be created by paying the additional fee by way of penalty.

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1.9. Central Registry (CERSAI)

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Central Registry of Securitization Asset Reconstruction and Security
Interest (CERSAI) is a central online security interest registry of India. It is primarily
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created to check frauds in lending against equitable mortgages, in which people would
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avail multiple finances against the same asset from different banks.
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CERSAI's mandate is to maintain a centralized data bank of equitable mortgages created

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and registered where it contains information on the equitable mortgage taken on a

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property along with details of the financial institution that has extended the loan as well
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as details about the borrower. CERSAI also allowed lenders to register transactions
of securitization and asset reconstruction.
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Under the provisions of Section 23 of the SARFAESI Act, 2002 particulars of any
charge creating the security interest over property is required to be filed with the registry
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(the timeline within 30 days from the date of creation is omitted w.e.f 24.01.2020).
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It means a timeline of 30 days is removed.

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1.10. SARFAESI ACT 2002

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This Act gives powers of “seize and desist” to banks. Banks can give a notice in writing
nl

(By Authorised officer) to the defaulting borrower requiring it to discharge its liabilities
within 60 days (Section 13 (2)). If the borrower fails to comply with the notice, the Bank
ow

may take recourse to one or more of the following measures (Section 13 (4):
A-take possession of the security for the loan
D

B-Sale or lease or assign the right over the security

C-Manage the same or appoint any person to manage the same.

14
 This act also provides for establishment of Asset Reconstruction Companies (ARCs)
regulated by RBI to acquire assets from Banks and Financial Institutions. The Act
provides for sale of financial assets by Banks and Financial Institutions to Asset
Reconstruction Companies. RBI has issued guidelines to Banks on the process to be

)
followed for sale of financial assets to ARCs.

77
65
1.11. THE INSOLVENCY AND BANKRUPTCY CODE, 2016
This act was passed by Parliament on 16.05.2016 to consolidate and amend the laws

12
relating to reorganization and insolvency resolution of corporate persons, partnership
firms and individuals in a time bound manner for maximization of value of assets of such

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persons, to promote entrepreneurship, availability of credit and balance the interests of

.(A
all the stakeholders. This act proposes to establish INSOLVENCY & BANKRUPTCY
BOARD to make a paradigm shift from the existing ‘Debtor in possession’ to a ‘Creditor
in control’ regime. National Company Law Tribunal will be the adjudicating authority

IT
under the aforesaid. This ACT envisages a “creditor in control” regime with financial

K
creditors exercising control through IPs in the event of a single default in repayment of

N
any loan or interest. This can be affected without any notice and the law is very stringent

A
as compared to the SARFAESI Act, 2002.

Key points: T
A
A. Corporate Insolvency Resolution Process
W

Application on default – Any financial or operational creditor(s) can apply for insolvency
A

on default of debt or interest payment subject to minimum monetary limit.

M

Appointment of Insolvency Professional – IP to be appointed by the regulator and

approved by the creditor committee. IP will take over the running of the Company.
U

From date of appointment of IP, power of Board of directors to be suspended and

K

vested in the IP. IP shall have immunity from criminal prosecution and any other
r.

liability for anything done in good faith

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Moratorium period – Adjudication authority will declare moratorium period during which
no action can be taken against the company or the assets of the company. Key
y:

focus will be on running the Company on going concern basis. A Resolution plan
B

would have to be prepared and approved by the Committee of creditors.

Credit committee - A credit committee of creditors will be constituted. Related party to
d

be excluded from committee. Each creditor shall vote in accordance to voting

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share assigned if 75% of creditor approve the resolution plan same needs to be
implemented.
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nl
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B. Liquidation Process
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Initiation – Failure to approve resolution plan within specified days will cause initiation of
Liquidation. Debtor can also opt for voluntary liquidation by a special resolution in
a General Meeting. Liquidator – The IP may act as the liquidator, and exercise all
powers of the Board of Directors. The liquidator shall form an estate of the assets,
and consolidate, verify, admit and determine value of creditors’ claims

15
 Order of priority for distribution of assets

• Insolvency related costs

)
• Secured creditors and workmen dues up to 24 months

77
• Other employee’s salaries/dues up to 12 months

65
• Financial debts (unsecured creditors)

12
• Government dues (up to 2 years)
• Any remaining debts and dues

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• Equity

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IT
1.12. Siebel CRM (SPGRS):
In SIEBEL CRM Complaint Module, Branch is an initiator of Complaint. Branch

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doesn’t have any Resolving rights. Branch can search for complaint lodged

N
through any source e.g. Branch, Contact Center, Online Portal, Resolver Groups

A
etc. Complaint view of branch comprises:
T
A
In order to bring in customer centricity in the provision of banking services, the Ministry
W

of
A

Finance, Govt. of India, has advised to implement a uniform and effective Public
M

Grievance
Redress System (PGRS) in PSBs to effectively to deal with such matters within the bank
U
K

URL of Siebel CRM (SPGRS) is https://crm360.bankofbaroda.co.in:8443/fins_enu

r.

Module can be accessed only through CBS network.

M
y:

Access Authority:
B

1. Branch User
d

2. Regional Office User

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3. Zonal Office User

4. Department User
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5. HO (Head Office) User

nl

6. Contact Centre User

7. IO (Internal Ombudsman) User
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Menu:
1. Customer Search
2. Creation of Complaint
3. Complaint Resolution
4. Complaint Reopen

16
 5. Complaint Tracking
6. Complaint History of Customer
7. Audit Trail of Complaint
8. Bounce Complaint to initiator

)
9. Query raised to departments for resolution of complaint

77
10. Complaint Escalation

65
11. IO Review
12. MIS Reports

12
13. Bulk Resolution

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COMPLAINTS Under Complaints TAB view for Branches, following options are
available:
a. Complaint List b. Complaint Search c. Bounced Complaint d. Referral

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Queries

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a) Complaint List: Complaint list Tab has following options:

N
i. All Complaints:

A
ii. Team Initiated Complaints:
T
b) Complaint Search: By using this option User can search Complaint by entering
A
either Complaint Number, Account Number or Mobile Number.
W

c) Bounced Complaints: Resolver group can bounce the Complaint to the Initiator
A

office for incorrect or incomplete information. For Branches Bounced Complaint have
M

option of Bounced to My Office. Using option Bounced to My Office Branch can see
Bounced Complaints to them and have to respond accordingly.
U

d) QUERIES: If Resolver Group wants clarification regarding complaint from other

K

Office/ Branch/ Region/ Zone/ Resolver Office can use option of Query. For Branches
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Query tab has option of My Unit Pending Query. User can view Query Pending with
M

their Department and to be responded. Branch User have to use Submit Query
Response to reply back for particular query raised by Resolver Group.
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B
d

1.13. CHEQUE TRUNCATION SYSTEM: CTS 2010

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Truncation is the process of stopping the flow of the physical cheque issued by a drawer
oa

to the drawee branch. The physical instrument will be truncated at some point en-route
nl

to the drawee branch and an electronic image of the cheque would be sent to the drawee
branch along with the relevant information like the MICR fields, date of presentation,
ow

presenting banks etc.

D

The images captured at the presenting bank level would be transmitted to the Clearing
House and then to the drawee branches with digital signatures of the presenting bank.
Thus, each image would carry the digital signature, apart from the physical endorsement
of the presenting bank, in a prescribed manner. The physical instruments are required to

17
 be stored for a statutory period. It would be obligatory for presenting bank to warehouse
the physical instruments for that statutory period. In case a customer desires to get a
paper instrument back, the instrument can be sourced from the presenting bank through
the drawee bank.

)
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65
Features of CTS-2010 Standard Cheques:

12
A. Features Visible through Naked Eye:

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1) Watermark of Bank's logo and Bank name (Dandy) are available for verification against
light or through UVR machine. CTS India water mark visible against light or through UVR
machine.

IT
K
2) Uniform /standard field placement for Date/Payee Name/Amount in words/Drawer
account number etc. in bilingual form.

N
A
3) Background colour of the cheques: At present background colour of the cheques for
different segment of accounts is as under: T
A
W

 For SB Account: Light gray

 For CA/OD Account: Light orange
A

 For CC Account:Light blue

M
U

4) Majority of the cheques are with printed account numbers and name of the Drawer.
K

Cheques with Account number and other details stamped are to be dealt more carefully.
r.

5) New Rupee Symbol in separate box preceding amount in figures.

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y:

6) Printers name on the left side with CTS 2010 identification.

B

7) RTGS/NEFT/IFSC Code: - Original cheques should have 11 (Eleven character) with

d

"BARB" followed by 0(zero) and branch 6 digit ALPHA code. If the branch ALPHA is less
de

than 6 character the last field will have XXX's.

oa

B. Features Visible through UVR:

nl
ow

1) Watermark of Bank's logo and Bank name in English and Hindi are available for
verification against light or through UVR machine.
D

2) CTS India water mark visible against light or through UVR machine.

3) UV logo:- Our Bank logo printed with special ink visible only through UVR machine.

18
 C. Other Features:

1) Void Pantograph: - Rectangular space below the Account number field with "VOID"
hidden/embedded. While the word VOID is hidden in all original cheques, the same is

)
visible in all photocopies. (If cheque is not genuine, word VOID cannot be visible in

77
photocopy.)

65
2) Micro Lettering i.e. lines provided for "Payee Name" and "Amount" are printed with

12
"BANK OF BARODA" that can be visible through magnifying glass only. In addition to
existing micro lettering feature i.e., printing of Bank's name (BANK OF BARODA),

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"Account Number" of customer is also being printed on personalized cheque.

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3) Background of the cheque (Logo & BANK OF BARODA) is printed with washable ink.
(Even a small drop of water will wash ink of original cheque, while this will not in case of

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scanned/xerox cheque.) In view of collecting banks responsibility under CTS clearing

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outward clearing cheques should also be scrutinized for genuineness at locations where
CTS clearing is implemented.

N
A
1.14. Banking Ombudsman Scheme 2006

T
A
The Ombudsman Scheme has been started by RBI under section 35 A of BR Act.

W

Applicable all Scheduled Commercial Banks including Private sector banks and
foreign Banks (including J&K State)
A


M

Ombudsman is appointed by RBI. The appointment will be for 3 years at a time.

 Scope - Complaints relating to deficiency in service in deposit, ancillary services,
U

non adherence of RBI guidelines on advances, delay in sanction or disbursement,

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time schedules, credit card and direct selling agents. The scope of scheme has
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been extended to internet banking, violation of code of banking services,

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 Before making a complaint to the Ombudsman, the complaint will be made to the
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bank. The complainant can file the complaint with the Ombudsman if no reply is
B

received within one month of lodging the complaint with bank or reply received is
not satisfactory.
d


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Maximum period within which complaint can be filed is 1 year from the date of
receiving the reply from bank. In case reply is not received from the bank,
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complaint can be lodged within 13 months from the date of making the complaint
to the bank.
nl

 Ombudsman will not entertain a complaint where (a) case is pending in the court
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(1) case has already been the decided by the court (iii) similar case has already
been decided Ombudsman.
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 Procedure: On receipt of complaint views of bank called to promote settlement by

agreement. If not settled within 1 month, Ombudsman shall announce award. Role
of the Ombudsman is that of Arbitrator with mutual consent.

19
  Maximum amount of award: Rs 20 lakh. In addition to this, award up to Rs 1 lakh
for mental agony.
 In case of credit card maximum claim is Rs 1 lakh.
 The complainant should accept the award within 30 days of receipt of the copy of

)
77
the award. The award shall not be binding on a bank unless the complainant gives
acceptance within 30 days from the date of receipt of copy of award.

65
 If complainant accepts the award, the bank should implement the award within 1

12
month of receipt of acceptance from the complainant and intimate compliance to
the Banking Ombudsman.

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 If Ombudsman rejects the complaint or award is not acceptable to the

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complainant, he can file an appeal to the Appellate authority (Deputy Governor,
RBI) within 30 days of the of the date of receipt of communication regarding award

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or rejection of the complaint.

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 Bank may also file appeal with Deputy Governor, RBI within thirty days from the

N
date on which the bank receives letter of acceptance of Award by complainant,

A
 In the case of bank, appeal may be filed by a bank only with the previous sanction
of the CMD or ED or CEO of the bank. T
A
 Non-implementation: If award is not implemented, report to Customer service
W

committee of the Board and make disclosure in balance sheet of the bank.
A

Integrated Ombudsman Scheme, 2021 – Overview

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•
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Centralised processing of complaints: All the complaints submitted through electronic

or physical mode to the Centralised Receipt and Processing Centre shall be assigned to
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the Offices of the Ombudsman for further examination. Hence, the complaints may be
M

received at any of the Nodal Offices irrespective of the territorial jurisdiction.

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• Timelines for submission of reply: 15 days

•
B

The Ombudsman may, at the request of the Bank in writing to the satisfaction of the
Ombudsman, grant such further time as may be deemed fit to file its written version and
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documents.
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• On verification of replied submitted by both the parties, Banking Ombudsman may

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 Reject the complaint,

 Pass an advisory, or
nl

 Pass an award
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• Bank may accept the ward/file an appeal against the Award.

• There shall be no right of appeal to the Bank in respect of the Award issued on
D

account of non-response or non-furnishing of information sought within the

stipulated time.
• Appellate Authority for filing Appeal - Executive Director in-Charge of the Department of
the Reserve Bank

20
 • Competent Authority to accord permission to file an Appeal: Chairman or the Managing
Director / Chief Executive Officer or, in their absence, the Executive Director / Official of
equal rank.

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65
1.15. Know Your Customer (KYC) Guidelines:

12
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Reserve bank of India has now come out with guidelines for “KNOW YOUR CUSTOMER”

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(KYC) with a view to put in place systems and procedures to help control frauds, identify money
laundering and suspicious activities and for scrutiny /monitoring of large value transactions.

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The guidelines are also applicable to foreign currency accounts / transactions.

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The four pillars under the policy

N
a) Customer Acceptance Policy -

A
b) Customer Identification procedure
c) Risk Management ( MLRC)
d) Monitoring of transactions
T
A
W

Reporting Requirements
A

a) Reports to be furnished to FIU-IND

M

Bank follows the detailed guidelines contained on compilation and manner /

procedure of submission of following reports prescribed by FIU-IND and ensure for its
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error free and timely submission to them.

K

a. Cash Transactions Report (CTR)

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b. Suspicious Transactions Report (STR);

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c. Counterfeit Currency Report (CCR);

d. Non Profit Organizations Transactions Report (NTR)
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e. Cross-Border Wire Transfer Report (EFT)

B

a) Cash Transaction Reports (CTRs):

d

Bank files following types of Cash Transactions to FIU-IND, New Delhi. -

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a. All cash transactions of the value of more than Rupees Ten Lakh or its equivalent in
foreign currency;
oa

b. All series of cash transactions integrally connected to each other which have been
nl

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
ow

transactions exceed Rupees Ten Lakh;

D

Time Schedule for Filing Cash Transaction Reports (CTR)

The Cash Transaction Report (CTR) for each month for Bank as a whole is submitted
to FIU-IND by 15th of the succeeding month as advised by Reserve Bank of India.

21
 In order to ensure above time schedule, various offices are required to ensure following
time schedule:
a. Data Centre submits CTRs for branches invariably on monthly basis (not on
fortnightly basis) by 04th of the succeeding month to Head Office in text format by e-

)
mail.

77
b. The Principal Officer of the bank ensures submission of CTRs for entire bank
every month to FIU-IND within the prescribed time schedule i.e. by 15th of the

65
succeeding month.

12
b)Suspicious Transaction Reports (STRs):

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.(A
Bank files all suspicious transactions as mentioned in the PMLA Rules to Financial
Intelligence Unit – India (FIU-IND). While determining suspicious transactions, bank is
guided by definition of suspicious transaction contained in PMLA Rules as amended

IT
from time to time. Bank also files Suspicious Transaction Reports (STR) to FIU-IND for

K
Mobile Banking Transactions as in case of normal banking transactions.
Definition of Suspicious Transaction in PMLA Rules:

N
“Suspicious Transaction" means a transaction whether or not made in cash which, to

A
a person acting in good faith –
T
a. Gives rise to a reasonable ground of suspicion that it may involve the proceeds of
A
crime; or
W

b. Appears to be made in circumstances of unusual or unjustified complexity; or

c. Appears to have no economic rationale or bonafide purpose; or
A

d. Gives rise to a reasonable ground of suspicion that it may involve financing of the
M

activities relating to terrorism.

U
K

It is likely that in some cases transactions are abandoned / aborted by customers on

being asked to give some details or to provide documents. Branches should report all
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such attempted transactions through the menu “AMLALERT” and Regional Offices
M

should file STRs on these attempted transactions, even if not completed by customers,
irrespective of the amount of the transaction.
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Did you know?

Indicative List of Suspicious Activities: Branches should do STR
B

(1) Transactions Involving Large Amounts of Cash through menu “AMLALERT and
Regional Offices should file
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(2) Transactions that do not make Economic Sense

STRs.
Activities not consistent with the Customer’s Business
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(3)
(4) Attempts to avoid Reporting/Record-keeping Requirements
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(5) Unusual Activities

(6) Customer who provides Insufficient or Suspicious Information
nl

(7) Certain Suspicious Funds Transfer Activities

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(8) Certain Bank Employees arousing Suspicion

(9) List of alert Indicators of suspicious activities/transactions to be monitored by the
D

operating staff at branch level:

Time Schedule for Filing Suspicious Transaction Reports (STR):

22
 Bank will adhere to the following time schedule and procedure for reporting STRs to FIU-
IND:
a. The Suspicious Transaction Report (STR) will be furnished within -7- days of arriving

)
at a conclusion that any transaction, whether cash or non-cash, or a series of transactions

77
integrally connected are of suspicious nature. The Principal Officer will record his reasons
for treating any transaction or a series of transactions as suspicious. It will be ensured

65
that there is no undue delay in arriving at such a conclusion once a suspicious transaction

12
report is received from the Regional Offices.
b. Regional Office will submit the STRs to the Principal Officer after validation in four days

K
of arriving at a conclusion that any transaction is suspicious one.

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c) Counterfeit Currency Reports (CCRs)

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All cash transactions, where forged or counterfeit Indian currency notes have been used

K
as genuine will be reported by the Principal Officer (PO) to FIU-IND in the specified format
(Counterfeit Currency Report – CCR) by 15th of the succeeding month. These cash

N
transactions will also include transactions where forgery of valuable security or

A
documents has taken place and will be reported in the form as prescribed by bank to FIU-
IND for the present. T
A
W

d) Non-Profit Organisation Transaction Report (NTR)

A

The report of all transactions involving receipt by non-profit organizations of value more
M

than rupees ten lakh or its equivalent in foreign currency is being submitted every month
U

to the Director, FIU-IND by 15th of the succeeding month in the prescribed format.
K

e) Cross-border Wire Transfer Report (EFT)

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M

Cross-border Wire Transfer Report is required to be filed with FIU-IND by 15th of

succeeding month for all cross border wire transfers of the value of more than five lakh
y:

rupees or its equivalent in foreign currency where either the origin or destination of
B

fund is in India. The Principal Officer at Head Office submits EFT to the Director FIU-
d

IND, New Delhi.

de

The objectives of the KYC framework are to ensure appropriate customer identification.
oa

In this connection branches to obtain all information necessary to establish the identity
/legal existence of each new customer, based preferably on disclosures by customers
nl

themselves. Mainly, KYC norms are for (1) Identification of the customer, (2) Proper
ow

introduction of the customer and (3) monitoring of large value transactions.

D

1) Customer Identification –
(a) Customer identification means undertaking client due diligence measures while
commencing an account based relationship including identifying and verifying the
customer and beneficial owner on the basis of one of the Officially Valid Documents
(OVDs).

23
 (b) Bank has a policy approved by its Board which clearly spells out the Customer
Identification Procedure to be carried out at different stages,i.e.,
i) While establishing an account-based relationship with the customer;
ii) Carrying out any international money transfer operations for a person who

)
is not an account holder of the Bank;

77
iii) When the branch has a doubt about the authenticity or adequacy of the
customer identification data it has obtained;

65
iv) When branches sell third party products as agents;
While selling bank’s own products, payment of dues of credit cards/sale

12
v)
and re-loading of prepaid/ travel cards and any other product for more than

K
Rs.50,000/-

.(A
vi) While updating identification data of the existing customer at prescribed
intervals.
vii) While carrying out transactions for a non-account based customer i.e. a

IT
walk-in customer, where the amount involved is equal to or exceeding Rs. 50,000/-

K
whether conducted as a single transaction or several transactions that appear to
be connected;

N
viii) When a branch has reason to believe that a customer (account-based or

A
walk-in) is intentionally structuring a transaction into a series of transactions below
the threshold of Rs.50,000/- T
A
W

2) The branches to undertake periodical updation of KYC data (including photograph/s)

after the accounts are opened. The periodicity of such updation should not be less
A

than once in five years in case of low risk category customers and not less than once
M

in two years in case of high and medium risk categories.

U

It has also been advised to enter all relevant information pertaining to customer and
K

account in Finacle and update CBS data regularly. In order to comply with the guidelines
r.

and ensure perfection in KYC and CBS data (report can be generated through RPTRA).
M
y:

KYC guidelines regarding enrichment of Beneficial Owner information.

B

The Beneficial Owner are identified in Non-Individual account (other than proprietorship,
d

listed public limited companies, Government Organization including PSUs), as following:-

de

a. Where the customer is a company: The Beneficial Owner is the natural person(s),
oa

who, whether acting alone or together, or through one or more juridical person, has a
controlling ownership interest or who exercises control through other means.
nl

Explanation- For the purpose of this sub clause- "Controlling ownership interest"
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means ownership of or entitlement to more than 25% of shares or capital or profits of

the company;
D

b. Where the customer is a partnership firm: The Beneficial Owner is the natural
person(s), who, whether acting alone or together, or through one or more juridical
person, has/have ownership of/entitlement to more than 15 per cent of capital or
profits of the partnership.

24
 c. Where the customer is an unincorporated association or body of individuals:
The Beneficial Owner is the natural person(s), who, whether acting alone or together,
or through one or more juridical person, has/have ownership of/entitlement to more
than 15 per cent of the property or capital or profits of the unincorporated association

)
or body of individuals.

77
Explanation: Term 'body of individuals' includes societies. Where no natural person

65
is identified under (a), (b) or (c) above, the Beneficial Owner is the relevant natural

12
person who holds the position of senior managing official.

K
Where the customer is a trust: The identification of Beneficial Owner(s) shall

.(A
include identification of the author of the trust, the trustee, the beneficiaries with 15 %
or more interest in the trust and any other natural person exercising ultimate effective
control over the trust through a chain of control or ownership.

IT
K
Branches are aware that they have to identify all the BO in the account and to

N
complete Customer due diligence process also for all BOs as being carried out for

A
individual customers.
T
A
As per circular issued by KYC-AML department, Branches are also advised to
W

ensure following:
A
M

 Identification of Beneficial owner is required for accounts of all Non individual

U

entities including advance accounts.

 All granular information is enriched in the system related to Beneficial Owner after
K

carrying out customer due diligence and obtaining their complete KYC
r.

information.
M

 Create the customer ID of Beneficial Owner mandatorily even if it is not

authorized signatory and to be linked with the account as BO.
y:

 Branch to also obtain the Beneficial Owner’s declaration from the entity and
B

Branch to satisfy upon the Information provided by the customer . The

same should be kept on record.
d
de

Enrichment of Beneficial owner information in Finacle :- .

oa


nl

As per the guidelines information of beneficial owner in case of non- individual

entities(other than proprietorship, Government accounts) have to be
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enriched/identified in finacle through HACM menu -> Related party Tab ->
designation code field and Code "BO" = "Beneficial owner" is to be selected from
D

drop down list.

 The branches have to enrich beneficial owner information only under designation
code and even if the information is already available in Relation Code field, the
same needs to be enriched again in designation code field, after which the
process of identification of BO will be completed.

25
 (Ref: HO:BR:112:213 Dt: 22/05/2020)
Freezing and Closure of Non- Compliant Accounts:
Branches shall opt for a phased closure of operations in this account as explained below:
1. Branches shall ‘Debit freeze’ such Non- KYC Compliant Accounts after giving two

)
77
notices of minimum 07 days period each to the customers to comply with KYC
requirements. Thereafter, ‘Debit freezing’ should be imposed.

65
2.Even after debit freezing of the account if the customer is not turned up to the
Bank, branch/office may also cease the operations in the account or close the

12
account after giving final notice of minimum 15 days period.

K
3.The account holders shall have the option, to revive their accounts by submitting the

.(A
KYC documents
4.On closure of the account the customer shall be communicated on his/ her valid e-

IT
mail address/ mobile number registered with the bank.
4. In case where wrong credits are received in the Non-KYC compliant freezed

K
accounts, Regional Manager is empowered to make a request to DGM, Data

N
Center for unfreezing of such accounts for reversal of such entry as a special case

A
on one time basis.
T
5. When the branches believe that it would no longer be satisfied about the true
A
identity of the account holder, it should submit a Suspicious Transaction Report (STR)
to HO for onward filing the same with Financial Intelligence Unit- India(FIU-IND.
W
A

Small Accounts:
M

In case an individual customer who does not have Aadhaar/enrolment number and PAN
U

and desires to open a bank account, banks shall open a ‘Small Account’.
K
r.

In ‘Small Account’ means a saving bank account in which:

M

 The aggregate of all credits in a financial year does not exceed rupees one lakh
 The aggregate of all withdrawals and transfers in a month does not exceed rupees
y:

ten thousand and

B

 The balance at any point of time does not exceed rupees fifty thousand.
 Not to allow Foreign Inward remittance
d
de

A small account shall remain operational initially for a period of twelve months, and
thereafter for further period of twelve months if the holder of such an account provides
oa

evidence, before the bank, of having applied for any of the OVDs within twelve months
nl

of the opening of the said account, with the entire relaxation provisions to be reviewed
ow

in respect of the said account after twenty four months.

Procedure to be followed in respect of foreign students:

D

Branches should follow the following procedure for foreign students studying in India:
a.Branches may open a Non Resident Ordinary (NRO) bank account of a foreign student
on the basis of his/her passport ( with appropriate visa & immigration endorsement)
bearing the proof of identity and address in the home country along with a photograph

26
 and a letter offering admission from the educational institution in India provided:

I. Branches should obtain a declaration about the local address within a period of -30
days of opening the account and verify the said local address.

)
77
II. During the 30 days period, the account should be operated with a condition of allowing
foreign remittances not exceeding USD 1,000 or equivalent into the account and a cap

65
of monthly withdrawal to Rs. 50,000/-, pending verification of address.

12
a. On receipt of proof of current address, the account would be treated as a

K
Normal NRO account and should be operated in terms of Reserve Bank of

.(A
India instructions on Non-Resident Ordinary Rupees (NRO) Account, and
the provisions of FEMA, 1999.
b. Students with Pakistani nationality will need prior approval of the Reserve

IT
Bank for opening the account.

K
N
1.16. Financial Intelligence Unit (FIU-IND) was setup in Nov.2004 and reports directly to the

A
Economic Intelligence Council headed by Finance Minister. The responsibility of FIU
T
includes collecting, analysing and sharing of information acting as a central repository
A
and coordinating with local and overseas agencies involved in anti money laundering
W

activities.
A
M

E-KYC:-
U

Acceptance of E-KYC as a process for KYC is launched by UIDAI-Unique Identification

K

authority of India is a valid process for KYC verification .The information authenticated &
r.

transferred by UIDAI carrying demographic details & photograph as a result of E-KYC

M

Process shall be treated as sufficient proof of identity. E-KYC is also accepted as a valid
y:

proof of identity for opening of Basic SB a/c at BC/KIOSK level.

B

CKYC: - Central KYC Registry is a centralized repository of KYC records of customers in

d

the financial sector with uniform KYC norms and inter-usability of the KYC records across
de

the sector with an objective to reduce the burden of producing KYC documents and
getting those verified every time when the customer creates a new relationship with a
oa

financial entity.(HO: BR: 108:129 dated 06.08.2016)

nl

The OVD (Officially Valid Documents) are:

ow

Passport/ Driving License with photo, Aadhaar card issued by the UIDAI, Voter ID issued
D

by the Election commission of India, job card under NREGA issued by the State
Governments,

Registration certificate of the firm issued by the Municipal corporation under the Shops

27
 and establishment Act, Certificate of incorporation in case of companies, Sales Tax/ IT
returns, in case of corporate a/cs.

List of ‘Officially Valid KYC Documents’ for Account Opening must be obtained from the

)
customers to verify the identity and address of the customers. It must be noted that only

77
the documents mentioned in the list provided by the RBI would be accepted by the

65
branches while opening of any new account. Branches would not have the discretion to
accept any other document for this purpose.

12
The RBI also enforces the compliance of stipulated norms in respect of Forex transactions

K
by the banks.

.(A
Anti Money Laundering:

IT
It is conversion of money, which is illegally obtained, so as to make it appear to originate

K
from a legitimate source. The main objective of the Act is:

N
A
1. To prevent, combat and control money laundering.
T
2. To confiscate and seize the property obtained from the laundered money.
A
W

3. To deal with any other issue connected with money laundering in India.
A

There are three independent steps or stages in Money Laundering -- Placement,

M

Layering and Integration

U
K

A) Placement - physical disposal of bulk cash proceeds derived from illegal activity
B) Layering - process of separation of illicit proceeds from their source by creating
r.

complex layers of financial transactions it conceals the audit trail.

M

C) Integration– re-injection of laundered proceeds back to the economy

y:
B

Punishment: Whoever commits the offence of money laundering shall be punished with
d

the rigorous punishment for a term not less than 3 years but which may extend to 7 yrs
de

and shall also liable to fine, which may extend to Rs.5 lacs. (HO: BR: 109:153 dated
01.09.2017 –KYC guidelines, Anti Money Laundering /CFT & Obligations under
oa

PMLA Act 2002 -Master Circular).

nl

1.17. FATCA- (Forign Account Tax Compliance Act):

ow

FATCA is an acronym for Foreign Account Tax Compliace Act, a new set of US Tax
Regulations brought in by the US Government to prevent the tax evasion by US Nationals
D

and the same enacted through the Internal Revenue Services (IRS). FATCA promotes
cross border tax compliance by implementing an international standard for the automatic
exchange of information related to US taxpayers. FATCA regulations require tax
authorities obtain detailed account information for US taxpayers on an annual basis.

28
 FATCA is intended to increase transparency for the Internal Revenue Service (IRS) with
respect to US persons that may be investing and earning income through non-US
institutions. While the primary goal is to gain information about US persons, FATCA
imposes tax withholding where the applicable documentation and reporting requirements

)
77
are not met.

65
CRS: CRS stands for Common Reporting Standards. The primary role of CRS is to
combat the problem of offshore tax evasion and avoidance/stashing of unaccounted

12
money abroad through mutual exchange of information among countries. 98 countries

K
are members of CRS.

.(A
Now FATCA CRS information can also be submitted through Baroda Connect.
(BCC:BR:111:247 dated 31.05.2019) FATCA details in CBS is managed through menu

IT
HFATCA. Following are mandatory fields in HFATCA:

K
1. Date of Birth

N
2. City of Birth

A
3. Country of Birth
4. PAN or Father’s Name T
A
5. Tax Resident Country
W

6. TIN or Tin equivalent

A
M

Guidelines in FATCA & CRS guidelines as under:

U

*Account of NRIs should be opened in NRE/NRO/FCNR category and not as domestic

K

accounts.
r.
M

*In cane of pre-existing customers (account opened upto 30-06-2014), if customer

submit the change in circumstances (any modification request in account, the branch to
y:

obtain the self-declaration from the customer and enrich the same in Find through
B

"HFATCA menu (BOB).

d

• In case of new customers accounts opened on or after 01:07 2014), branch to invariably
de

obtain the self-declaration in the preworbed format with the account opening form and
enrich the same in system through “HFATCA" menu.
oa

• FATCA CRS declaration ottained from the customers is to Opening Form kept with the
nl

Account.
ow

If the account is opened through RBO, copies of the FATCA CRS declaration is to be kept
D

at branches super scribing account number and Customer ID thereon.

Branches to generate the report through FATCARP" menu peridodically and enrich
the information of FATCA CRS declaration obtained from customer , wherever the same
is not enriched in CBS as per the report.

29
 FATCA-CRS declaration is to be obtained from each main holder as well as joint holders
separately .

)
(Refer to HO:BR:112:362 dated 02.09.2020)

77
Guidelines for updating FATCA CRS information in the account of SEAFARERS:

65
12
1.FATCA-CRS form in itself is a self-declaration for tax residency, no need to take any
additional self-declaration from the account holder.

K
.(A
2.As in some cases of seafarer, where TIN is not available, branch can enter valid VISA
number, Duty Discharge Identity Book(DDIB) & Continuous Discharge Certificate (CDC)
for Sea farers (for details refer Annexure -1), Passport number etc. in TIN field and

IT
mention the document name in the adjacent document type field HFATCA menu.

K
3.There is no need of any separate constitution code especially for updating FATCA CRS

N
information for seafarers in Finacle.

A
T
Therefore we request to all our branches to take a careful note of the above guidelines
A
and ensure strictly compliance the above mentioned guidelines for the FATCA-CRS
W

enrichment in the account of SEAFARERS.

A

(Refer to BCC:BR:112:600 dated 06.10.2020)

M
U

1.18. Citizen’s Charter

K

Citizen Charter gives the customers’ right as well as their demands on service from the
r.

bank. Citizen’s charter covers the following:

M
y:

1. Business hours to be prominently displayed at the branches.

2. Counters to remain attended to during business hours.
B

3. Space for customers in banking hall to be kept clean and tidy with proper seating
d

arrangements.
de

4. Branch premises to be kept clean and hygienic.

oa

5. Time norms for common Banking transactions to be displayed prominently in the

Banking Hall.
nl

6. At large branches “May I Help You” – counters to be located for customer’s

ow

convenience.
7. Commencement of working hours of Bank staff to be 15 minutes before
D

commencement of Banking hours.

8. Bank’s name board to be clean and visible with suitable lighting arrangements.
9. Branch authority’s name and designation to be displayed on Name Plate.
10. Name, address, telephone number and fax numbers of Regional and Zonal

30
 Authorities to be displayed in Banking Hall.
11. Customer’s Suggestions to be invited for better customer services.

The basic objective of the Citizen’s Charter is to empower the citizen in relation to

)
77
public service delivery. The basic principles of the Citizen’s Charter movement as
originally framed were:

65
i. Set standards of service;

12
ii. Be open and provide full information;
iii. Consult and involve;

K
iv. Encourage access and the promotion of choice;

.(A
v. Treat all fairly;
vi. Put things right when they go wrong;
vii. Use resources effectively;

IT
viii. Innovate and improve;

K
ix. Work with other providers.

N
A
1.19. Consumer Protection Act (COPRA)-1986, Modified in 2019:
T
A
1. COPRA was initially enacted during 1986 and implemented w.e.f. 15.4.1987. The
W

purpose of this act was to enable the consumers to enforce his right as a consumer
A

through simple legal procedures. Further, on 17th December 2002, an amendment

M

Act 2002 has been passed and implemented w.e.f. 15th March, the consumer day.
U

The Consumer Protection Bill, 2019 has been passed by the Lok Sabha on
Jul 30, 2019, and Rajya Sabha passed on Aug 06, 2019. This bill was
K

introduced in the parliament by the Minister of Consumer Affairs, Food and

r.

Public Distribution, Mr. Ram Vilas Paswan.

M

2. The act covers, all goods services including banking, insurance, transportation,
electricity, processing etc.
y:

3. Any consumer individually or jointly, consumer organisation can file complaint

B

within -2- years from the date of cause of action preferably within 3 months.
4. Legal heirs/ can continue as complaints of unfair trade practice or restrictive trade
d

practices against servive provider and charging of prices for the goods in excess
de

of the prices displayed.

oa

5. Definition of complaint amended to include complaints of unfair trade practices or

restrictive trade practices against service provider, failure to disclose final results
nl

of scheme of gifts & prizes amt. Prescribed fee payable on every complaint as
court fees - no fees earlier
ow

6. A person availing services for commercial purpose will not be a consumer under
the act.
D

7. The authority or jurisdiction are;

a) District forum for a complaint up to Rs. 100 lakhs.
b) State Commission from Rs. 100.00 Lac to Rs. 1000 lakhs.
c) National Commission above Rs. 1000 lakhs.

31
 1.20. Information Technology Act 2000:
The Act has given legal recognition to Electronic Data, Electronic Signature, Interchange,
Electronic Commerce (E-Commerce), more specifically to electronic records such as data

)
77
recorded, data generated through computer network, sound stored, received or sent in
an electronic form or stored in micro film or computer generated micro fiche, etc., thereby

65
making significant headway from the era of recognition of paper based documents alone

12
as legal mode.

K
Consequential amendments to Reserve Bank of India Act, Evidence Act, Indian Penal

.(A
Code and Banker’s Books Evidence Act.
1.21. Foreign Exchange Management Act (FEMA) 1999:

IT
Foreign Exchange Management Act (popularly known as FEMA) was enacted in 1999, it
came into effect from 1st June 2000. FEMA has made considerable improvement of

K
N
FERA Act 1974.

A
An Act to consolidate and amend the law relating to foreign exchange with the objective
T
of facilitating external trade and payments and for promoting the orderly development and
A
maintenance of foreign exchange market in India.
W

“Foreign exchange” under section 2(n) means foreign currency and includes, -
A
M

● deposits, credits and balances payable in any foreign currency.

U

● Drafts, travellers cheques, letters of credit or bills of exchange, expressed or drawn

K

in Indian currency but payable in any foreign currency.

● Drafts, travellers cheques, letters of credit or bills of exchange drawn by banks,
r.

institutions or persons outside India, but payable in Indian currency.

M

● “Foreign security” under section 2(O) means any security in the form of shares,
y:

stocks, bonds, debentures or any other instrument denominated or expressed in

foreign currency and includes securities expressed in foreign currency, but where
B

redemption or any form of return such as interest or dividends is payable in Indian

d

currency.
de
oa

Capital and Current Account Transactions:

nl

Current account transaction’ and ‘capital account transaction’ are two new expressions
ow

defined in conformity with the convertibility of rupee on current account. All current
account transactions are now permitted subject to certain restrictions.
D

All capital account transactions are now permitted subject to certain restrictions. Sections
5 and 6 of FEMA provide for the convertibility of rupee into other currencies for “current
account transactions” which are now freer as compared to the rupee and also, the
convertibility on capital account transactions.

32
 Separate definitions of “capital account transaction” and current account transaction”
have been given in FEMA

Section 2(e) read with section 6(1) and 6(3) deals with “capital account transaction”. While

)
the general exemption has been granted in respect of capital account transactions, it has

77
been provided that the Reserve Bank of India is empowered to place restrictions on

65
specified capital account transactions. A review of various Regulations shows that the
capital account transactions are now governed by greater number of restrictions than the

12
current account transactions.

K
Capital account transaction means a transaction which alters, the assets or liabilities,

.(A
including contingent liabilities: outside India of persons resident in India; or assets or
liabilities in India of persons resident outside India; and includes transactions referred to

IT
in section 6(3).

K
1.22. Types of Customers

N
A
A bank opens accounts for various types of customers like individuals, partnership firm,
T
trusts, companies, etc. While opening the accounts, the banker has to keep in mind the
A
various legal aspects involved in opening and maintenance of these accounts. Normally
W

banks have to deal with the following types of customers:

A
M

1.22.1. Individuals:
U

1. Normally the account should be opened with cash only and not with cheque, drafts.
K

This is to protect the bank’s interest under section 131 of the N. I. Act.
r.

2. Branch to follow all the guidelines for opening of the accounts under ‘KYC’ Norms
M

as mentioned in the chapter on deposits.

3. The account can be opened in the single name or joint name. Various types of
y:

operating instructions for the joint accounts of the individuals are as follows:
B

a) Jointly,
b) Either or Survivor,
d

c) Former or survivor,
de

d) All of them jointly or Survivors or Survivor,

oa

1.22.2. Minor:
nl

According to Section 3 of Indian Majority Act, a person attains majority at the age of 18,
ow

except in case where a guardian is appointed by a court, where the age of majority is 21.
As per Indian Contract Act, a minor is not capable to enter into the contract and any
D

contract with the minor is void. Following points are to be kept in mind:

● A minor of 10 years can open SB account and a minor of 14 years can open
Current account in his name. However, there is a specific ceiling to maintain a

33
 maximum balance in the account/s.
● Operations in the account – by minor or by natural guardian
● Legal guardian cannot open a joint account
● No overdraft is created in the account
●

)
Date of majority to be recorded in the account

77
● No joint account of two or more MINORS TO BE OPENED.

65
1.22.3. Illiterate Persons:

12
Some times illiterate person will approach to the bank / branch for opening of the account.

K
As per Indian Contract Act illiterate persons are competent to enter into contract so they

.(A
can open and maintain bank accounts. However, following precautions are to be taken
while opening and maintaining such accounts:

IT
● No cheque book should be issued

K
● No current account should be opened
● Joint account of two illiterates (close relatives can be opened) – operational

N
instructions should be jointly or survivor and not either or survivor

A
● Joint account of illiterate with literate close relative can be opened but no
T
cheque book should be issued (joint operation only.
A
W

1.22.4. Blind Persons:

A

As per Indian Contract Act, blind persons are competent to enter into contract. They can
M

open and maintain any type of bank accounts. However, following precautions are to be
U

taken while opening and maintaining such accounts:

K

● Various risks in operations of the account should be explained to the account

r.

holder
M

● Joint account with close relative can be opened

y:

● Cash receipts and payments should be made in presence of witness preferably

bank customer
B

● Account opening form etc. should be stamped “blind person”

d

● For withdrawal of the amount he/ she should come personally. However, on
de

merits, next of kin may be allowed to operate the account, if authorized.

● Cheque book can be issued
oa
nl

1.22.5. Partnership Firms:

ow

Definition of partnership – section 4 of Indian partnership act 1932 “ the relationship

between persons who have agreed to share the profits of a business carried on by all or
D

any of them acting for all”

The account to be opened in the name of the firm. The account opening form should be
signed by all the partners. A letter of partnership duly signed by all the partners should be
obtained. When a minor is admitted as partner in the firm, a letter of restrictive operations

34
 to be obtained.

Specific operational instructions duly signed by all the partners to be obtained. Stop
payment of the cheque by any partner even in case of it is signed by another partner.

)
Death, insolvency or lunacy of any partner – operations in the account should be stopped.

77
1.22.6. Limited Company:

65
Joint stock Companies are governed by the Companies Act, 2013. A Company is

12
incorporated under the Companies Act. The Company is a separate entity from its

K
members.

.(A
There are three types of the companies:

IT
(1) Public Limited Company (2) Private Limited Company (3) Government Company.

K
Certified true copy of the following documents to be obtained at the time of opening of the

N
account.

A
1. Certificate of incorporation
2. Memorandum of Association T
A
3. Articles of Association
W

4. Board Resolution to open an account with the bank and operational instructions
A

5. List of the present directors.

M

Following care to be taken while maintaining such accounts:

U
K

1. The account opening form should be signed as per the resolution passed by the
r.

Board
M

2. Introduction is not necessary for opening of the account because certificate of

incorporation issued by registrar of the companies itself serve the purpose
y:

3. Death of a director does not affect the operation in the account

4. A cheque payable to the company should never be deposited in the personal
B

account of director
d

5. While granting any credit facility, purpose clause of MOA of the company must be
de

verified
6. Provisions of section 180 (1)(d) of the Companies Act 2013 regarding borrowing
oa

in excess of Net worth to be observed.

nl
ow

1.22.7. Limited Liability Partnership:

It is an alternative corporate business vehicle that provides the benefits of the limited
D

liability , but allows its members the flexibility of organizing their internal structure as a
partnership based on a mutually arrived agreement.every LLP shall have at least two
partners.

The following persons can be partners in LLP. For example individuals, LLPs,

35
 Companies, Foreign Limited Liability Partnerships, LLPs incorporated outside India,
Foreign companies etc. A Cooperative society , society and corporation cannot be a
member of LLP.A person of unsound mind , undischarged insolvent , minor cannot be
admitted as partner of LLP a they lack capacity to contract.

)
77
LLP agreement is the main document governing the relationship between the partners

65
inter se & partners & the LLP.signature of each & every partner is not required in the
documents executed on behalf of LLP as it is a corporate entity.

12
1.22.8. Trust Accounts:

K
.(A
A trust is an obligation annexed to the ownership of property, arising out of confidence
reposed in a person/ group of persons and accepted by him/them for the benefit of
another or of another and the owner.

IT
The persons who, accepts the confidence are called trustees. The instrument/ document

K
by which the trust is created is called the ‘Trust Deed”.

N
A
While opening of the account of a trust following documents are required to be obtained:
T
(a) Registration certificate. (b) Trust deed. (c) Resolution of Board of Trustees (d)
A
Permanent Account Number or Form No.60 of the trust. ( e) Documents as mentioned
W

under Section 19, in respect of Beneficial owner, the managers, officers or employees
holding an attorney to transact on its behalf. f) Registration under Section 12AB of
A

Income Tax Act, if applicable.

M

1.22.9. Executor and Administrator:

U
K

A person to whom the execution of a will is entrusted by the deceased (testator) is called
the executor of the will. The executor is supposed to obtain a probate from the court.
r.
M

For a person who dies without leaving a will (intestate), the court appoints a person to
look after the property is called the administrator.
y:
B

Following precautions are to be taken while opening such accounts:

d

1. A copy of the probate or letter of administration should be obtained and verified

de

with the original

2. Account in the name of executor /administrator is opened in the style “xyz
oa

executor/administrator of the estate of …….deceased”

nl

3. No credit meant for the account of the estate of the deceased is made to the
ow

accounts of executor/administrator.
1.22.10. Joint Hindu Family:
D

The concept of HUF is recognized by law. As per the law whenever a Hindu dies, leaving
behind a business, it passes on to the heirs and property becomes the Joint Hindu Family
property. The eldest member is called ‘Karta’ and the male & female (except widow)
members of the family are called ‘coparceners’. Following precautions to be taken while

36
 dealing with such accounts:
1. HUF letter should be signed by the karta and all the major co-parcerners
2. The account is to be operated by the ‘Karta’ only

)
3. Names of the minor coparceners should be kept on record and on attaining the

77
majority a fresh letter of HUF duly signed by all to be obtained

65
4. Death, Lunacy, insolvency of the members does not effect the operations in the
account

12
K
.(A
1.22.11. CLUBS, ASSOCIATIONS:
Clubs, Associations, Committees, Funds etc are not a legal entity unless they are
incorporated under the Companies Act. As they have no contractual powers. Following

IT
points must be kept in mind while dealing with such accounts:

K
N
Clubs can be registered or un-registered. While opening an account in the name of

A
registered club, following documents should be obtained:
1. Copy of Certificate of Registration, T
A
2. Copy of bye law, rules and regulations.
W

3. Copy of resolution of the managing committee/governing body etc..

A

4. A list of the members of the managing committee.

M
U

5. No advance including TOD should be permitted.

K
r.

1.22.12. CO-OPERATIVE SOCIETIES:

M

The Society is registered under the Society Registration Act 1960. Documents to be
y:

obtained for opening of the account:

B

1. Copy of Certificate of Registration,

d

2. Copy of bye law, rules and regulations.

de

3. Copy of resolution of the managing committee/governing body etc.

oa

4. A list of the members of the managing committee.

nl

5. No advance including TOD should be permitted.

ow
D

1.22.13. LOCAL AUTHORITIES:

1. Examples are Municipal Corporations, Zilla Boards etc.
2. Bank must obtain copy of such statute and find out the provisions as to who would
authorize opening of the account.

37
 3. Generally these authorities have managing committees, with president, vice
president and treasurer and the treasurer is given powers to open and operate the
account.
4. No Overdraft should be given in the account

)
77
65
1.22.14. GOVERNMENT DEPARTMENTS:
a) Document showing name of the person authorised to act on behalf of the entity; b)

12
Officially valid documents (The passport, driving licence , or Proof of possession of

K
Aadhaar number, The Voter's Identity Card issued by the Election Commission of India,

.(A
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) and PAN/ Form 60 in respect of the person holding an attorney to transact on

IT
its behalf and c) Proceedings/ letter from competent authority of the Government
Department to open Bank account containing Title of the Account and Operating

K
Instructions to establish the legal existence of such an entity/ juridical person. d)

N
uthorization letter from Government Department in case of Opening of Savings Bank

A
Account, if Applicable. e) Latest Society Act Certificate, in case of societies f) Copy of
return filed with Registrar of society/Trust. T
A
W
A
M
U
K
r.
M
y:
B
d
de
oa
nl
ow
D

38
 )
77
65
12
BANKER CUSTOMER RELATIONSHIP

K
The banker is rendering various types of services to the customers and non-customers

.(A
also. During the course of such banking transactions various relationships arise. Various
relationships are as under:

IT
K
Transactions Relationship

N
Bank Customer

A
Deposit Account with bank Debtor Creditor
Loan from the Bank T
Creditor Debtor
A
Locker Lessor Lessee
W

Safe custody of Articles Bailee Bailor

A

Collection of Bills/ Cheques Agent Principal

M

Purchase of DD/ MT/ TT Debtor Creditor

U

Payment of Draft Trustee Beneficiery

K

Pledge of goods Pledgee Pledger

Mortgage Mortgagee Mortgager
r.
M

Standing instruction Agent Principal

Article left by the bank Trustee Beneficiery
y:

Hypothecation of goods Hypothecatee Hypothecator

B

Assignment of securities Assignee Assignor

d

Indemnity Indemnifier Indemnified

de

Clayton’s Rule:
oa

This rule is applicable mainly in case of overdraft & cash-credit account of other than sole
nl

proprietor firm and as per this rule the credit entry will set-off the debit entry, in
chronological order
ow

Termination of Banker-Customer relationship:

D

The relationship seizes once

 If customer closes the accounts
 If customer dies,
 If customer becomes insane or

39
  If customer becomes insolvent.
 Banker may close the a/c by serving notice to A/c holder

)
77
Classification of Legal Rights of Banker :

65
1. Right of General Lien.
2. Right of Set-Off.

12
3. Right of Appropriation.
4.

K
Right to Charge Interest, Commission, Incidental Charges etc.

.(A
Right of General Lien :

IT
'Lien' is the right of a creditor to retain in his possession the goods and securities owned
by the debtor until the debt has been repaid. This right does not confer the right of sale of

K
such goods and securities.

N
A
(a) Particular Lien:
T
A 'particular lien' gives the right to retain possession only of those goods in respect of
A
which the dues have arisen, e.g. a tailor retaining the possession of a suit he has stitched
W

for a customer until the stitching charges are paid.

(b) General Lien
A

A 'general lien' gives the right to retain possession of any goods in the legal possession
M

of the creditor until the whole of the debt due from the debtor is paid.
U
K

Banker has a right of general lien against his borrower. Sec.171 of the Indian Contract
Act, 1872 confers the right of general lien on the bankers as under –
r.
M

 Banker can retain as a security for a general balance of account, any goods bailed
to them.
y:

 It is available unless there is any explicit contract to the contrary.

B

 The 'Right of Sale' of goods under lien is also available to the banker. It is,
therefore, said that banker's lien is tantamount to an 'Implied Pledge'.
d

 Banker's right of lien is not barred by the Law of Limitation.

de

 If the bank has obtained a particular security for a particular debt only, then the
oa

banker's right gets converted into a particular lien.

nl

Where right of lien can be exercised:

ow

1. On all the goods and securities entrusted legally in the capacity as banker.
2. On goods and securities standing in the name of the borrower.
D

3. On the securities remaining in the possession of the banker even after the loan taken
against them has been paid, for the dues of the same borrower.
4. If the securities offered by the customer for a personal loan are given to the banker in
the capacity of a 'trustee', right of lien can be exercised.

40
 5. Cheques deposited by a customer for collection can be subject to banker's lien.
6. Only goods and securities are subject to banker's lien. Balance in account etc. are
subject to right of set-off and not lien.

)
77
65
12
Where right of lien cannot be exercised:

K
.(A
1. Specific contract at variance with this right.
2. Goods and securities entrusted to the banker as a 'trustee' or as an agent of the
customer.

IT
3. Where the goods or securities are owned by two or more persons, right of lien cannot

K
be exercised for the loan granted to any one of them.

N
4. Goods or securities given for safe custody.
5. Goods or securities kept in a safe deposit locker. The bank can exercise a particular

A
lien for recovery of unpaid locker rentals.
T
6. When bills or other documents are delivered by the customer with instructions to utilise
A
proceeds for a specific purpose.
W

7. Banker has no right or lien on documents or valuables left in his possession by the
A

customer by mistake or negligence.

M

8. No 'Right of Lien' can be exercised on the securities lodged to secure a loan, which is
yet to be granted.
U

9. Bank has no lien on deposits of partnership firm for the balance due from one of its
K

partners.
r.

10. To exercise the right of lien the possession of the goods and security or the property
M

must be obtained lawfully in the capacity of the banker and not otherwise.
y:

Right of Set-Off:
B

1. It is a statutory right, which enables it to combine several accounts of a customer in

d

his own right unless there is any agreement expressed or implied to the contrary.
de

2. Even though the Right of Set-Off is available to a banker as a legal right, banks usually
oa

take a letter of set-off from the customer to overcome future legal complications and
also it dispenses with the need of notice.
nl

3. Even where such letters are obtained, a reasonable notice should be given to a
ow

customer before exercising the right of set-off to avoid complications arising out of
exercising the right without notice e.g. Bank has exercised a right of set off against a
balance of ` .10,000/- lying in savings bank account of a customer without giving any
D

notice. Meanwhile, the customer has issued a cheque favouring Mr.X for ` .5,000/-
which is returned unpaid due to set-off. The customer may sue the bank for 'wrongful
dishonour'.

41
 4. The customer has no corresponding right of set-off to combine his several accounts
for the purpose of withdrawal e.g. customer has two accounts with a branch. He has
drawn a cheque for ` .5,000/- in the first account. There is insufficient balance in the
account to pay the cheque but there is sufficient balance to pay the same in the second

)
account. Customer cannot assume that bank will pay the cheque adjusting the

77
balance in the second account.

65
12
K
Where right of set-off is applicable :

.(A
1. Against customer's two or more accounts provided both/all the accounts are in the
same name and same right of the customer.

IT
2. Two or more accounts though with different title but belonging to one person, right of

K
set-off can be applied. For example customer's personal savings bank account and

N
customer's loan account of a proprietorship firm in which the customer is the
proprietor.

A
3. It can be applied to recover the firm's debts from partner's individual account, provided
T
the partners are jointly and severally liable. In case of joint accounts also this is
A
applicable.
W

4. It can be exercised even if two accounts are in different branches.

5.
A

It is applicable only in debts which are due and becoming due. It is not applicable on
M

future debts.
6. It is available in case of time barred debts also.
U

7. In case of insolvency of a person or liquidation of a company all future

K

debts/contingent liabilities become due immediately. In such cases right of set-off is

r.

available.
M

8. Where a customer has a loan account and a current account with credit balance and
banker holds security for the loan, on the insolvency of the customer, banker can
y:

combine these accounts and appropriate the security for the consolidated balances of
B

these accounts.
9. Whenever a branch receives a garnishee order or income tax attachment order, the
d

bank will exercise its right of set-off on amount due and then operate the order.
de

Where right of set-off is not applicable:

oa

1. It is not applicable if by specific agreement they are to be kept separated.

nl

2. Bankers cannot set off the credit balance of customer's personal account
for a joint loan account of the customer with another person unless both the
ow

joint accountholders are jointly and severally liable.

3. It is not available for future or contingent debts.
D

4. It is also not available if a customer has two accounts, one in personal name
and another as a trustee / administrator / executor/agent/guardian of a
minor.

Right of appropriation:

42
 When there are two or more accounts wherein amounts are due from the customer to the
bank, and the customer deposits some money without indicating the account to which it
should be credited a question arises as to the appropriation of the said amount.Secs.59,

)
60 and 61 of the Indian Contract Act, 1872 deal with appropriation of payments:

77
65
12
Sec.59: Where a debtor, owing several distinct debts to one person, makes a payment to
him, either with express intimation, or under circumstances, implying that the payment is

K
to be applied to the discharge of some particular debt, the payment, if accepted, must be

.(A
applied accordingly.

Sec.60: Where the debtor has omitted to intimate, and there are no other circumstances

IT
indicating to which debt, the payment is to be applied, the creditor may apply it at his

K
discretion to any lawful debt, actually due and payable to him from the debtor, whether its
recovery is or is not barred by the law of limitation of suits.

N
A
Sec.61: Where neither party makes any appropriation, the payment shall be applied in
T
discharge of debts, in order of time, whether they are or not barred by the limitation of
A
suits. If the debts are of equal standing, the payment shall be applied in discharge of each
W

proportionately.
A

Clayton’s Rule:
M

In case of running accounts like current account or cash credit accounts, normally there
U

is no specific appropriation of funds to exact debit. In such cases it is the first item on the
K

debit side that is discharged or reduced by the first item on the credit side. This principle
was originally formulated in Devaynes v. Noble known as Clayton’s Case. The same
r.

clause is incorporated in Section 61 of the Indian Contract Act, 1872.

M

This rule is applicable in case of

Death or insolvency or insanity of a borrower or joint borrower
y:

A death, insolvency, insanity retirement of partner in a firm or death

B
d

Banker's right to charge interest, commission, incidental charges etc.:

de

1. Banker has the right to charge interest on amount advanced by the bank, charge
oa

commission, exchange, incidental charges etc. for services rendered and sold to a
customer.
nl
ow

2. It is an implied term of any loan agreement that the bank may debit customer's account
with the amount of interest. Similarly it is an established practice that banks cannot
D

refuse payment of a cheque on the ground that if payment is made, no amount will be
left for charging interest, commission or incidental expenses.

Garnishee Order and Attachment Order:

43
 Garnishee means a judgement debtor’s debtor (i.e. banker) and the order is issued for
recover private dues by a competent court under section 60 of The Code Of Civil
Procedure (CPC), 1908 at the request of a creditor to attach his debtor’s fund in the hand
of garnishee (Order XXI and Rule 46).

)
77
Attachment order is issued by the Government authority say Income Tax, Sales Tax,
Customs department for recovery of statutory dues from a person under the respective

65
law which governs the concern department.

12
K
Particulars Garnishee Order Attachment Order

.(A
Issuing Authority Competent Court of Law Government Department i.e.
Income Tax, Sales Tax,

IT
Customs Department etc.

K
Under which Act Section 60 of Civil Procedure Code, Respective law governing the

N
1908. concerned department.

A
Depositor called Judgement debtor T Assessee
A
W

Bank called Judgement debtor’s debtor Assessee’s debtor

A

Stages Involved First Order Nisi is issued and after Always issued in absolute form.
M

that order absolute issued.

U
K

Issued to recover Recover of Private Due Recover of Statutory due

r.

Applicable to On clear balance available with the Amount in the account at the
M

(Amount) garnishes at time of receipt of order. time of receiving order and

y:

future credit also attachable.

B

Joint accounts, Not Applicable Applicable pro-rata basis.

d

order single name

de

Order in name of Not applicable for accounts in name Not applicable for accounts in
oa

partner, trustee, of firm, trust, company i.e. accounts name of firm, trust, company
executor, liquidator, in fiduciary capacity etc. i.e. accounts in fiduciary
nl

director of a capacity etc.

ow

company, etc
D

Order in name of Individual Account of partner/ director Individual Account of partner/

partnership/ is attachable. director is attachable.
company.

44
 Deceased Applicable. Applicable

Preference of Attachment order will have the Attachment order will have the
Order, If received preference over Garnishee Order. preference over Garnishee

)
However, banker’s right of set-off is Order. However, banker’s right

77
simultaneously or is
pending for superior. of set-off is superior.

65
payment

12
DUTIES OF A BANKER

K
.(A
The banker is bound by duties arising out of banker-Customer relationship.
These are-

IT
 Duty to honour cheques drawn by customers on their accounts.

K
 Duty to maintain secrecy/confidentiality of customers' accounts.
 Duty to render proper accounts for services rendered.

N
A
T
Guidelines related to Bait Money /Decoy money and maintenance of Cash
A
Remittance Register (HO:BR:109:124 Date: 21.07.2017 )
W
A

Bait money is basically a small quantity of currency notes information which has been
M

duly noted by the designated Bank Officials and is kept in safe custody so that in case of
any unfortunate happening, such as theft, that information can be used to track the
U

criminals
K
r.

Therefore it is advised as under.

M

1. Certain serial numbers, preferably of high value denominations should be noted in

y:

separate log book called “Bait Register.”

2. Currency notes of noted serial numbers should be kept separate in cash box. There
B

should not be any indication that it is a Bait money.

d

3. If these currency is used by cashier it should be noted in “Bait Register” and fresh Bait
de

money should be created. i.e. serial numbers of other currency notes should be noted.
4. When incident of decoity /burglary takes place such Bait money should be passed on
oa

to culprits, wherever possible.

5. Serial numbers of currency notes noted in Bait register should be informed to police for
nl

tracing the culprit.

ow

Branches are advised to maintain cash remittance register with full details such as Date,
D

amount of remittance, schedule number, name of branch, names of Officer/Business

Associate/Sahayak/Guard etc., and the same should be made available for verification
during inspection/audit of the branch.

45
 Common instructions for receipts and payments:

(i)Legal tender money :

)
Rupee, coins and half rupee coins are legal tender for any amount. Coins of other

77
denominations are legal tender only upto a restricted amount. Branches are not,
therefore, bound to accept small coins in big quantities if they are tendered for credit of

65
current or savings bank accounts or in repayment of dues to the bank.

12
K
(ii)Exchange of notes:

.(A
Exchange of notes (other than soiled/mutilated notes) over the counter should be
discouraged as far as possible, more so to strangers. All remittances should be made

IT
to the credit of an account and withdrawn in required denominations.

K
(iii)Defacing of notes:

N
A
No seal, rubber stamp, initial or signature should be affixed on the notes. They should
T
be affixed only on the denomination slips attached to the packets of notes.
A
W

Reserve Bank of India has advised that such defacement not only spoils the
appearance, shortens the life of the notes but may also render them liable for refusal
A

of exchange value in case their genuineness cannot be ascertained due to such

M

defacement. Notes should be handled carefully by staff.

U
K

(iv) Cash received during the day should be sorted out into issuable and non-issuable
(i.e. soiled) notes and denomination-wise packets containing 100 pieces each be made
r.

with distinctive colour labels attached to them and the same be tied with the help of
M

cotton thread. After this the cashier will tie the same with the help of note banding machine
in a vertical manner. Mutilated and imperfect notes should not be mixed up with soiled
y:

notes. The cashier should sign on the denomination slips. All packets should be
B

rechecked and the cashier rechecking them should countersign on the labels. There after
d

the packets would be tied up with the help of note banding machine (as per its capability)
de

on the opposite side of the packet in vertical manner and also on the horizontal side of
the packet i.e. cross banding or only horizontal side (cross banding). The places where
oa

the bands are crossed on the face of the note packets, a sticker each at all the places be
pasted.
nl
ow

(v)The non-issuable notes sorted out separately should be sent to nearest currency chest
branch at the time of next remittance or at periodic intervals. Till such time it could be
D

transferred to joint reserve so as to avoid day to day handling the same.

(vi) Soiled/Mutilated/Imperfect notes:

Facilities for exchange of soiled/mutilated/imperfect notes should be .

46
 ● Soiled note means a note which, has become dirty due to usage and also includes a
two piece note pasted together wherein both the pieces presented belong to the same
note, and form the entire note.

)
● Mutilated banknote is a banknote, of which a portion is missing or which is composed

77
of more than two pieces.

65
● Imperfect banknote means any banknote, which is wholly or partially, obliterated,

12
shrunk, washed, altered or indecipherable but does not include a mutilated banknote.

K
● All
banks are authorized to accept soiled banknotes for full value. They are expected to

.(A
extend the facility of exchange of soiled notes even to non-customers. All branches of
commercial banks are authorised to adjudicate mutilated banknotes and pay value for
these, in terms of the Reserve Bank of India (Note Refund) Rules, 2009.

IT
K
Soiled bank notes and mutilated banknotes are exchanged for full value.

N
● For denominations of Rs 1, Rs 2, Rs 5, Rs 10 and Rs 20, the area of the single largest

A
undivided piece of the note presented is more than 50 percent of the area of respective
T
denomination, rounded off to the next complete square centimeter.
A
W

● For denominations of Rs 50, RS 100, RS 500 and RS 2000, the area of the single largest
undivided piece of the note presented is more than 80 percent of the area of respective
A

denomination, rounded off to the next complete square centimeter.

M
U

● Banknotes in denominations of Rs 1, Rs 2, Rs 5, Rs 10 and RS 20, cannot be

K

exchanged for half value.

r.

●A mutilated banknote in denominations of Rs 50, Rs 100, Rs 500 or Rs 2000, can be

M

exchanged for half value if, The undivided area of the single largest piece of the note
presented is equal to or more than 40 percent and less than or equal to 80 percent of the
y:

area of respective denomination, rounded off to the next complete square centimeter.
B
d

What types of banknotes are not eligible for payment under the Note Refund Rules?
de

A banknote for which:

oa

● Thearea of single largest undivided piece of note presented is less than or equal to
nl

50% of area of the note for denominations of Rs 1, Rs 2, Rs 5, Rs 10 and Rs 20.

ow

● Thearea of the single largest undivided piece of the note is less than 40% for
D

denominations of Rs 50, Rs 100, Rs500 or Rs 2000.

A banknote which:

● Cannot be identified with certainty as a genuine note for which the Bank is liable under

47
 the Act.

● Has been made imperfect or mutilated, thereby causing the note to appear to be of a
higher denomination, or has been deliberately cut, torn, defaced, altered or dealt with in

)
any other manner, not necessarily by the claimants, enabling the use of the same for

77
making of a false claim under these rules or otherwise to defraud the Bank or the public,
carries any extrinsic words or visible representations intended to convey or capable of

65
conveying any message of a political or religious character or furthering the interest of

12
any person or entity.

K
● Has been imported into India by the claimant from any place outside India in

.(A
contravention of the provision of any law.

Cash verification:

IT
1. Balancing of cash:

K
 Cash balance book with denomination and no. of currency notes be filled in by the

N
head cashier and the cash is to be verified by Branch manager/authorized officials at

A
the end of the day.
T
A
 The Cash balance book should be signed by both the head cashier and joint
W

custodian and should be kept in joint custody along with the cash.
A
M

2. Verification of cash:
U
K

a. Metro /Urban Branches

r.
M

 Where the custody of cash is with the Joint Manager and head Cashier
verification of cash should be carried out once in a week by another authorized
y:

Officer of the branch by rotation.

B

 Surprise Monthly cash verification should be done by Branch manager invariably

d
de

once in a month and report should be sent to Regional office.

oa

b. Semi urban / Rural branches

nl

• Where the custody of cash is with the Joint Manager and head Cashier verification
ow

of cash should be carried out once in a week by another authorized Officer of the
branch by rotation.
D

• Surprise Monthly cash verification should be done by Branch manager invariably

once in a month and report/certificate in standard format should be sent to
Regional office.

48
 • Where the custody of cash is with the Joint Manager and head Cashier at a branch
manned by one Officer, verification of cash is done by an official deputed by
Regional Office from nearby branch or from Regional Office, once in a month.

)
77
3. External cash verification:

65
At the time of statutory audit / regular branch inspection, auditor/ inspecting

12
officer should verify denomination wise cash available in Branch's vault with the

K
cash book at the time of opening of business hour and should incorporate the

.(A
details in their report. In case of any discrepancy, full details should be reported
to RO immediately.

IT
Preventive Vigilance in Operations

K
N
A. Intersol Transfer and clearing Transaction:

A
T
a) All Cheques received for transfer / clearing transactions should be screened
A
under ultraviolet ray machine for safe guarding against non apparent
W

chemical alteration in the tenor of the cheque.

b) Any message pertaining to the cheque flashing in the FINACLE system
A

such as “CHEQUE ALREADY PASSED” and “CHEQUE NOT ISSUED”

M

should not be ignored and base branch be contacted to ascertain the

U

genuineness of the cheque/transaction –written confirmation should be

K

obtained from the base branch.

c) In case of high value transfer transaction, i.e. cheque of Rs2 lakh and
r.

above, base branch should be contacted for ascertaining genuineness for

M

taking a decision on the cheque/transaction and written confirmation by

y:

email/ fax should be obtained before passing the cheques. In case of

cheque below Rs2 lakhs base branch may be contacted in case of doubt.
B

d) In case of transfer cheque of Rs2 lakh and above, if confirmation is not

d

received from base branch, the cheque should be taken on collection basis
de

and should be sent to the base branch on next working day under advice to
the customer. The same is also applicable for transfer cheque of less
oa

than Rs2 lakhs where there is a doubt and confirmation is not received
from the base branch.
nl

e) In case of high value cheques presented in clearing, and in case of doubt

ow

(for small value cheques) CBO should contact the base branch and
ascertain the genuineness of the cheque.
D

f) Base branch to immediately respond to confirmations sought by debit

initiating branches under Inter-sol transactions. Base branch should also
maintain proper record of inter-sol transaction confirmed by them.
g) Cheques presented at the branch where neither the drawer nor the payee
maintains account and for which permission is not granted by Branch Head/

49
 BH2 for processing the transaction it should be returned on the same day
to the payee by Regd. Post on address recorded in the system.
h) Branches to comply with the guidelines for Inter-sol transactions for
remittance through RTGS/NEFT also. However, for better customer

)
service, Branch Head 1 and BH2 have been authorised to undertake any

77
Inter-sol transactions subject to observation of stipulated safeguards,
procedure and precautions.

65
i) Branch Heads are advised to check Inter-Sol transfer transactions on daily

12
basis to monitor the transactions allowed during the day by the branch.
j) Base branches to download the report in the morning 10 a.m i.e.

K
immediately after the branch is opened, at 12 noon and finally at 3.00

.(A
p.m. Base branches will get the list of cheques drawn on their branch along
with phone number of customer and phone number of branch where the
cheque is presented. Base branches to contact their customers and confirm

IT
the genuineness of transaction.

K
N
B. Screening of cheques through Ultraviolet Ray machines:

A
a) All cash cheques/ draft for Rs 10,000/ and above should be screened under
T
ultraviolet ray machine before passing for payment.
A
b) Clearing and transfer cheques/draft for Rs 50,000/ and above should be
W

examined under ultraviolet ray machine before passing for payment.

A

c) All the branches i.e. collecting branches and paying branches whether under
M

Cheque Truncation System (CTS) or not should strictly adhere to the procedure
of scanning of clearing cheques.
U

d) Even cash cheques/drafts below Rs.10,000/ and clearing/ transfer

K

cheques/drafts below Rs50,000/ should be scrutinized under ultraviolet ray

r.

machine, when the passing officer finds any unusual circumstances such as
M

cheques having uneven surface or cheques which look faded etc.

e) All clearing transfer cheques/ drafts of Rs10,000/ and above and below
y:

Rs50,000/ for which payment/credit has been affected during working hours
B

should be examined under the ultra violet ray machine at the end of the day,
either by passing officer or by the back office department so that fraud, if any,
d

can be detected on the same day. For this purpose branches may have one
de

additional ultraviolet ray machine, if necessary.

f) All the cheques received for payment ( cash, transfer or clearing) for Rs 2 lakhs
oa

and above must be screened / examined through Ultraviolet Ray machine to

establish:
nl

 That the cheque presented for payment is genuine.

ow

 There are no unauthorised alterations / modifications on cheque.

g) After examination of the cheque through Ultra Violet Ray machine, passing
D

officer should certify by putting rubber stamp on the back of the cheque as
under :
“Examined through Ultra Violet Ray Machine and found correct,
thereafter passed for payment”

50
 C. Cheque favouring Yourself / Bank of Baroda:

a) Customers should be educated that whenever cheques are issued favouring

)
"Yourself' or in favour of "Bank of Baroda", the purpose along with

77
beneficiary details, IFS code etc., must be written on the back side of

65
cheque under customer signature so that fraudulent transactions may be
avoided. The frontline staff must ensure that the above details are written by

12
the customers on the back of the cheque while accepting and debiting the
cheques. Passing officer must re-verify the same while authorizing the

K
transactions.

.(A
b) When cheques are received, transfer/clearing (as the case may be) stamp
should be affixed on them immediately and should be kept at proper place
which should be beyond the access of customers.

IT
c) The cheques may be kept in drawer should be locked whenever staff has to

K
leave the counter for any purpose. cheques should not be kept on table or

N
counter where anybody can pick up.

A
d) Whenever high value cheques favouring “ Yourself ” or “Bank of Baroda”,
Account (Account No. or name of payee) are received through 3 rd party or
T
through employees of account holder’s organization, the credentials of payee
A
must be ascertained from the drawer to avert any fraud.
W
A

D. Remittance through RTGS/NEFT:

M
U

a) Request for remittance of funds through RTGS/NEFT by way of tendering

K

cheque in drop box is not desirable. Cheque drop box facility is for collection
of cheques.
r.

b) Wherever RTGS/NEFT request is not given by customer himself or his

M

authorized representative the transaction should be initiated after obtaining

confirmation from the customer. For processing such transactions, branch to
y:

follow as under:
B

 The Passing officer (first) to obtain confirmation from customer and then
d

to obtain authority from BH1/BH2 for executing of such transactions. In

de

case of debit in advances account, the confirmation to be done by the

officer looking after the advances department.
oa

 Record of confirmation and authority of BH1/BH2 must be noted on back

of the cheque.
nl

c) Request for RTGS/NEFT favouring third party should not be entertained

ow

through Email/fax. Signature of customer’s should be verified on cheque as well

as RTGS/NEFT voucher.
D

d) While performing RTGS/NEFT transactions at base branch level, SMS alert will
be sent to remitter customer as under:
 On successful insertion of record in RTGS/ NEFT module i.e. at entered
stage if transaction amount is Rs 5000/ and above.

51
  On successful verification of record in RTGS/NEFT module i.e. at
verified stage.
e) There will be gap of 15 minutes between entered stage and verified stage.
Only BRH user can verify such transaction before 15 minutes.

)
f) Entry of RTGS transaction is restricted to 15 minutes before the last time

77
window defined in SETVAR for RTGS transactions. Therefore, branches are
advised to complete entry of RTGS transactions by 4:00 PM.

65
12
K
E. Registration of Mobile number/ Change of Mobile number:

.(A
a) Customer should visit the branch personally for such request as changing of

IT
mobile number is a vital change.
b) Request submitted through third party, other than the customer, should not be

K
entertained.

N
c) Request for change of mobile number should not be entertained by any other

A
mode such as email, letter received through courier etc.
T
d) Application (along with photograph) from customer should be accepted as per
A
revised format attached with the circular.
W
e) Verify the photograph and signature available in the system or records
available with the branch.
A

f) For verification of genuineness of customer, branch to take his / her

M

identification / KYC documents.

U

g) Branch should contact the customer on old/existing mobile number before

K

changing the same at the same time when application is submitted by the
customer and obtain confirmation from the customer.
r.

h) Branch may further verify the same through passbook or cheque book of
M

customer.
i) Without making discreet inquiry, mobile number of the customer should not be
y:

changed.
B

j) Branch should not entertain the request for changing the mobile number until
they fully satisfy themselves for genuineness of the request.
d

k) Cooling period of 48 hours has been configured in system for activation of new
de

mobile number.
oa

F. Other measures:
nl
ow

a) Branch should not issue account statement to customer without obtaining

written request (duly signed) from customers and only after verifying his/her
D

identity.
b) Four eye principal should be complied with and no transactions should
be entered and posted by same user. If it is done in case of urgency, it
should be verified by second user invariably.

52
 c) Branches should not be closed without completing day end activities
invariably.
d) Many customers are receiving telephone calls for asking their details like
account number, Debit card number, PIN, OTP, Password etc., Customers

)
should be educated not to share such information with anybody as bank

77
is not asking such information from their customers.
e) To educate the customers to be careful and not lured by social media friends.

65
f) Not to rely on information on name of caller given through True callers as it is

12
not authentic. It give information on name of caller which was entered by the
person. It accepts any name.

K
g) Branch should update the change /revised mandate of authorized signatory in

.(A
the system immediately after due verification from the account
holder/government department.
h) To be careful while dealing with high value transactions in Government

IT
Accounts

K
G. Cash withdrawals in newly opened SB account:

N
A
a) In newly opened account, system gives alert of New account, when such
alert is received branches should be careful and examine the account.
T
b) A report is generated through the system “ NEWACTR” which gives details
A
of transactions for Rs.50000/ and above in newly opened accounts. The
W

Report should be generated on daily basis and transactions be monitored.

A

c) Whenever there is huge cash withdrawal/deposit in the newly opened

accounts the matter must be referred to Branch Head for appropriate
M

reporting and action.

U

d) If suspected of money laundering or suspicious transactions, it should be

K

reported to STR cell, HO, Baroda.

r.
M

Office Accounts:
y:

If the account is in freeze status, and cash transaction in part is posted in cash
B

account, the remaining leg of transaction if branch is not able to post in customer's
account, it is posted by system automatically in proxy account. If it is posted in
d

proxy account, it should be reversed immediately by posting it in " G/L New

de

Intermediary" account. Customer should be advised the reason for freeze and on
oa

submission of required documents account should be unfreezed , and then entry

from New Intermediary account should be reversed
nl
ow

Introduction of system level Check for Credit entries outstanding for more
than 3 days in New Intermediary Account: credit in the account it entries ate
D

outstanding for more than 3 days. The check is effective from 16/10/2020 Please
note that no credit entries except entres related to transfer to DEA Fund will be
allowed within the SOL. (Reference : HO:BR:112:411 dated 17.10.2020)

53
 GST:
Goods and Services Tax (GST) — A brief overview
Goods and Services tax, commonly known as GST, is an indirect tax regime which is levied
on manufacture, sales and consumption of goods as well as on the services at a National

)
level.

77
GST regime has put an end to multiple taxes like Excise, VAT, Service Tax, Luxury Tax, and

65
Entertainment Tax, Octroi etc. which were levied on different products and services by both
Central and State Governments.

12
K
GST is a dual taxation regime, where taxes are levied on the basis of place of consumption/

.(A
destination. There are three elements of tax under GST:

IT
a. Central Goods and Service Tax (CGST) : This would become part of revenue of the

K
Central Government

N
A
b. State/Union Territory Goods and Service Tax (SGST/UTGST): This would form part
of revenue for State/Union Territory Government T
A
W

c. Integrated Goods and Service Tax OGST): This would initially go to the Central
A

Government and then will be distributed to the State/UT governments.

M

For all the services provided by our bank, the rate of tax remains constant at 18%, but the
U

same will be bifurcated into 9% each for CGST and SGST, wherever applicable.
K
r.

The determination of the element of GST to be levied on a particular transaction is based on

M

the location of supplier of services and on the location of receiver of those services.
y:
B

a. If the supply of services is within the state then CGST and SGST/UTGST would be
d

levied.
de

b. On the other hand if the supply of services is outside the state, then IGST would be
oa

levied.
nl

The GST council has finalised a four tier GST tax structure of 5%, 12%, 18% and 28%, with
ow

the lower rates for essential items and the highest rates for luxury and de-merit goods
D

including luxury cars, tobacco etc. Rates of tax applicable to a particular good can be
identified on the basis of the HSN code (a unique code allotted to each good & service) of
the product. Services, however, are taxed at the rate 18%.

54
 TDS:

As implied, w.e.f. 01.10.2018, there would be two different taxes which are to be

)
deducted at source while making payment to vendors

77
 TDS under Income Tax

65
 GSTTDS under GST act.

12
GSTTDS is applicable only where the vendor is registered irrespective of any amount of

K
payment made to the vendor. System will calculate 2% of the invoice value and reflect

.(A
the same in GSTTDS field. Once the transaction is verified, system will post the amount
of GSTTDS in respective GST TDS account i.e. in case of intra state transaction 1 %
each will be posted in CGST TDS & SGST TDS accounts and in case of inter state

IT
transactions 2% will be posted in IGST TDS account.

K
N
A
 GSTTDS from the payment made to the other PSUs/Central
T
Government/State Government/Local Authority and government agencies:
A
As per notification issued by the Ministry of Finance on 05/11/2018 & on
W

31/12/2018 GSTTDS is not required to be deducted from the payment made to the
A

following:
M

 A department or establishment of the Central/State Government

U

 Local Authority
K

 Government Agencies
 An authority or board set up by an act of parliament or a state legislature or
r.
M

established by any government with 51% or more participation by way of

equity or control.
y:

 Society established by the Central/State Government or a local authority

B

under Societies Registration Act 1860

 Public Sector Undertaking
d
de

Now a separate PSU flag has been provided in the Vendor Master module under the
VENPAY menu. PSU flag is to be selected as yes only in case the vendor is a
oa

PSU/Central/State Govt. in all other cases PSU flag is to be selected as No.

nl
ow

 TDS on Cash Withdrawal: In order to discourage cash transactions and move

D

towards less cash economy, Govt. has inserted a new section 194N for levy o TDS
at the rate of 2% ( 20% if PAN is not available) on cash payments in excess of one
crore rupees in aggregate made during the year, by a banking company, to any
person from one or more accounts maintained by the recipient. There are

55
 exemption on this account for certain constitution code/customer type i.e.
Central/State Govt./ Local & Quasi Govt./ Public Sector Banks etc.

 TDSCON menu is provided for concession provided on account of interest

)
paid to the customer: There are three modules in TDSCON as

77
65
 Total Exemption
 Form 15G/H

12
 Income Tax Exemption

K
.(A
 Change in Threshold Limit for TDS on Interest payment u/s 194A and on Rent
Payment u/s 194I: As per interim Budget 2019-20, Threshold limit for tax

IT
deduction at source u/s 194A Interest income, other than interest on securities,

K
paid by a Banking company, has been increased from Rs.10000/- to Rs.40,000/-.

N
Further, threshold limit for tax deduction at source u/s 194I i.e. on rental income

A
has also been increased from Rs.1,80,000/- to Rs.2,40,000/-.
T
Amendment in section 194N of Income Tax 1961: TDS on cash withdrawal applicable
A
from 01st July 2020 - Menu "ITCASH" for Capturing ITR Status,
W
A

In order to discourage cash transactions and move towards less cash economy, Govt
M

inserted a new section 194N under union budget 2019 to provide for levy of TDS at the rate
U

of two percent (2%) on cash payments in excess of one crore rupees in aggregate made
K

during the Financial year, which is in effect from 1" Sept 2019.
r.

SERVICE CHARGES:
M

Revised Service charges for Saving accounts: ( HO/BR/112/393 dt 29.09.2020)

y:

Service charges related to following services are revised w.e.f.01 .07.2020.

B

Concessions are given to SB customers in in Rural-Semi Urban areas and pensioners

d

and Senior citizen account holders

de

1 Ledger Folio charges - ADC transactions are excluded

2Transaction charges
oa

3 Charges for issuance of Duplicate Statement /passbook

4 Issue of Letter of acknowledgement/duplicate TDR in case of loss of TDR
nl

5 Cheque book issuance charges

ow

6 Addition/deletion of Names in Joint accounts/changes in operational instructions

7 Stop payment instructions- loss of chequebook
D

8 Cheque returned charges

9 Issuance of Balance certificate, Interest certificate
10 Closure of account within a year
11 Issuance of solvency certificate
12 Issuance of DD/BC, Cancellation, RTGS charges

56
 13 Attestation of customer's signature
14 Cash handling charges , Cash deposit, Cash withdrawal charges

Major Changes:

)
77
Cash handling charges:

65
For CA/OD/CC/Other Accounts: (Base and local Non base branch)

12
Beyond Rs.100000/- per day per account, Rs.1/- per thousand or part thereof. Minimum
Rs.50/- maximum Rs.20000/-

K
.(A
Regional Manager has been authorized to reduce / waive the cash handling charges on
case to case basis on the merit of each case subject to cost benefit analysis.

IT
Cash Deposit:

K
a. Savings bank account- Metro-Urban (Base, Non Base and Outstation branch)
Chargeable Beyond 3 transactions in a month (excluding Alternate Channel transactions)

N
- Rs.50/- per transaction.

A
b. Savings Bank accounts Rural /Semi Urban branches (excluding BSBD/Financial
Inclusion accounts**) T
A
(Base, local Non- Base and Outstation branch)
W

b.1 Pensioners and Sr. Citizen at any branch

Chargeable Beyond 3 transactions in a month (excluding Alternate transaction) - Rs.40/-
A

per transaction
M

Channel
U
K

**For BSBD and Fl accounts there are no service charges

r.

Cash Withdrawals:
M
y:

a.CA/CC/OD (Base branch, local non base and outstation branch)

Beyond First three transactions per month (excluding withdrawals from ATM) charges of
B

Rs.150/- per transaction.

d

b.Savings bank- Urban -Metro branch (Base, local Non- Base and Outstation branch)
de

Beyond First three transactions per month (excluding withdrawals from ATM) charges of
Rs. 125/- per transaction.
oa

C. Savings Bank- Rural/Semi-Urban C. Savings Bank branches Base, local Non- Base
nl

and Outstation branch) c.1 Pensioners and Sr. Citizen at any branch
ow

Beyond First three transactions per month (excluding withdrawals from ATM) charges of
D

Rs. 100/- per transaction.

However, Maximum withdrawal allowed at outstation branch is Rs. 50000/- per day to
account holder only.

57
 Issuance of Cheque book.
Current Account:
In case of Current Account, after issuance of 1st cheque book of -20- leaves at the time
of opening of account. charges for subsequent cheque book @ Rs.5/- per leaf.

)
77
Cash Credit/Overdraft:
In case of CC/OD account cheque book charges @Rs.5/- per leaf will be levied from the

65
issuance of first cheque book at the time of opening an account

12
Wherever cheque books are printed by the customer after obtaining permission of
Stationary and Security Form Department, Head Office, Baroda, the cost of paper should

K
be recovered from the customer at the rate of Rs. 1000/- per 1000 leaves (over and above

.(A
charges to be paid by customer directly to the printer for printing.)

 Charges for Closure of A/cs -within a year

IT
Saving Account : Metro-Urban : No charges ,

K
1. if the account is closed within 14 days of first customer induced credit into the
account.

N
2. No charges, if account is closed due to death of account Holder.

A
Rs. 300- : if account is closed beyond 14 days but within 1 year of the first customer
T
induced transaction.(Excluding small Savings bank and Basic Savings Bank accounts).
A
Saving Account: Rural/Semi urban branches ,Senior Citizen and Pensioners at any
W

branch : No charges
1. if the account is closed within 14 days of first customer induced credit into the account.
A

2. No charges, if account is closed due to death of Account Holder.

M

Rs 275/- : if account is closed beyond 14 days but within 1 year of the first customer
U

induced
K

transaction. (Excluding Small Savings bank and Basic Savings Bank accounts).
r.
M

TERM DEPOSITS:
y:

 Interest on FDR will be paid on half-yearly compounded quarterly basis except

B

Baroda Regular Income scheme.

 Premature Closure of Term Deposits: No penalty for premature payment will be
d
de

levied in case of premature payment of deposits upto Rs.5 lacs provided it remained
with the bank for a minimum period of 12 months. For deposits more than Rs.5 lac
oa

and less than Rs.1 crore, which remained for less than 12 months, interest should be
paid after deducting penalty of 1% from such applicable rate or the contracted rate
nl

whichever is lower in the cases which are subject to charging penalty.

ow

 Premature Closure of Recurring Deposits: Interest should be paid after deducting

penalty of 1% from such applicable rate or the contracted rate whichever is lower in
D

the cases which are subject to charging penalty.

 Overdraft/ loan available against Fixed Deposit : Yes, but except Baroda Tax
saver and Baroda advantage (non callable) scheme, Overdraft / Loan against
deposit provided on demand up to 95 % of the outstanding balance in the account

58
 as on date of loan. Interest will be charged as per Bank’s extant guidelines from
time to time.

 Overdraft/ loan available against my Recurring Deposit : Yes, but except Baroda

)
Holiday saving scheme, Overdraft / Loan against deposit provided on demand upto

77
95 % of the outstanding balance in the account as on date of loan. Interest will be
charged as per Bank’s extant guidelines from time to time.

65
 Overdraft/ temporary advance given against FD/ RD in the name of a minor:

12
This facility is not available to Minor account in single name and HUF. Where a

K
deposit is in the name of a minor, jointly with

.(A
parents / natural guardian, the overdraft facility is restricted to Rs 10,000/-.
Premature closure of Tax Savings Deposit: At the request of customer
Prepayment allowed only after completion of 5 years at its discretion and pay interest at

IT
1% below the rate ruling on the date of making deposit, for the period for which the

K
deposit has actually remained with the Bank.

N
 Charges for premature closure of Baroda Advantage FD (Non-callable):

A
Premature withdrawal of the deposits made under the scheme shall not be allowed
T
before maturity for any reason whatsoever except In case of death of the depositor
A
(individual category) wherein, FD to be transferred in the name of nominee/ legal heirs
W

after adhering to the extant guidelines. Deposits below Rs.1 crore will be auto-
renewed for a period of minimum 12 months in callable deposits.
A

 Deposits above Rs.1 crores will be auto-renewed in non-callable deposit only if

M

renewal instructions are given at the time of account opening else the maturity
U

proceeds will be credited to customer’s account.

K

 Eligibility to open Capital Gain Account Scheme: Any person / firm / association
r.

of persons / company / HUF etc. intending to avail of the benefits under Section 54,
M

54B, 54D, 54F and 54G of the Income Tax Act, 1961 (43 of 1961) may open above
mentioned accounts. However details of section mentioned above is available on
y:

Income tax website.

B
d
de
oa
nl
ow
D

59
 Banking Technology
Bob World Internet
Bank will not provide Internet Banking facility to the following type of customers:
 Illiterate account holders, Dormant accounts, Inoperative accounts, Minor account,
holders (Below age of 15), Accounts where garnishee / attachment order is received

)
Finacle Menu Options to be used by the Branches

77
● HDCR - For new registration of Bob World Internet.

65
● HREGPW – Submitting Request for regeneration of Passwords. Now the use of

12
this menu option has been very limited after launching GREEN PASSWORD.
● ACUID- Create new Bob World Internet User id for corporate customers.

K
a. Delete existing Bob World Internet user id for corporate customers.

.(A
b. Change customer rights (from transaction to view and vice versa).
● MOBUPLD- Mobile number and Email Id updation of Corporate user after HDCR
● CUSTMOB- Mobile number updation of Retail user.

IT
● HBDTM – Inquiry of Customer Type in Net Banking

K
● HBDTM – Changing the customer from Retail and Corporate
● HBDTM – Deletion of Net Banking from a particular Customer Id
●
N
For disabling the Net Banking facility from Ac, branch has to send a mail to Bob
A
World Internet Operations team with scanned request letter of customer
T
● In Case of Retail & Corporate CIF Issue – Create a fresh ( CRLC/VRC,
A

CCCR/VCCR ) and Change it by HCCA, Now Use HBDTM

W

● Retail Customers: Revised limits

A
M

Category Type of Transaction Per Daily TAX Payment/Self-

U

Txn Linked
K

Retail_Default SHP/TPT/NEFT/RTGS (In 10 25

r.

Lakhs)
M

Unlimited
Retail_Default IMPS(Lakhs) 2 2
y:
B

● Corporate Customers: Revised limits

ed

Category Type of Transaction Per Daily TAX Payment/Self-

d

Txn Linked
oa

Corporate Default SHP/TPT/NEFT/RTGS/B 30 75 Unlimited

nl

ULK UPLOAD(In Lakhs)

ow

Corporate Default IMPS 2 2

D

● The default limits for addition of beneficiaries for Retail and Corporate customers in a
day are as under:

60
 No. of Beneficiary Retail Corporate
Total Number Of Beneficiaries per day (any mode of 25 50
payment).

)
77
65
12
K
.(A
IT
K
N
A
Bharat Bill Payment System (BBPS)
T
A

Bharat BillPay is an initiative of national importance which offers real time bill payment
W

service to customers/ non customers across geographic and demographic lines.

A

Bank is participating in two roles:

M

As Customer Bharat Bill Payment As Biller Bharat Bill Payment Operating Unit
Operating Unit (Customer BBPOU) (Biller BBPOU)
U

Current Scope
K

The current scope of Bharat BillPay covers repetitive payments for everyday utility services
r.

such as Mobile Pre-paid, Electricity, Water, Piped Gas, DTH recharge, Telecom postpaid
M

(Mobile, Landline & Broadband), Municipal Taxes and Services, Mutual Funds, Credit cards,
Institution fees (Schools and Colleges), Insurance Premium, Housing Society, FASTag
y:

Recharge, Booking and Payment of Gas Cylinder, Subscriptions, Loan Repayment, Cable,
B

Hospital Collection, Recurring Deposit/ EMI Deposit/ Instalment Deposit, Clubs and
associations, etc.
ed

a) Customer Operating Unit (COU) – For customer/non-customer to facilitate bill payment and
d

recharge through six various channels/mode of payments.

oa

At present 20,262 billers are available under BBPS out of which 19,764 are educational
institutes.
nl

b) Biller Operating Unit (BOU) – For biller on-boarding, to facilitate electronic collection of
biller’s bill payments and recharges under categories approved by NPCI.
ow

 Charges: No extra charge is being levied by the Bank for this service for electronic
D

transactions. Only Rs. 2 + GST is applicable for payments at BC points (excluding DTH,
credit card and LPG gas categories of billers)

61
 BHIM AADHAR BARODA PAY
BHIM Aadhaar Baroda Pay is a digital payment acceptance solution from Bank of Baroda.
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.
BHIM AADHAR Baroda PAY-involves provision of a micro USB based biometric finger
print capturing devices to Merchants, which is to be attached to their Mobile Devices for
accepting payments.

)
77
Requirements for the merchant to start using BHIM Aadhaar Baroda Pay
✔ Aadhaar seeded account with Bank of Baroda.

65
✔ STQC Certified Biometric Reader with Micro USB / USB C-Type connector.
✔ Android smartphone with Android version 4.2 or higher with internet connectivity and

12
OTG support for connecting biometric device.
✔ Phone should be able to power the biometric reader.

K
.(A
Steps to follow before going Live
✔ BHIM Aadhaar Baroda Pay Application is available on Play store.
✔ Merchant has to download 2 Mobile Applications from the Play Store as follows :

IT
● IDEMIARD Services
● BHIM Aadhaar Baroda Pay

K
Purchase Limit

N
✔ Minimum Rs. 10/-
A
✔ Maximum Rs. 10,000/-
T
A

BHIM Baroda Pay (UPI)

W
A

UPI enables all bank account holders to send and receive money from their smartphones
M

by creating a Virtual Payment Address (VPA) / UPI ID of their choice and link it to any bank
account. The VPA / UPI ID acts as their financial address and users need not remember
U

any bank account information for sending or receiving money.

K

 Who can use UPI services?

r.

✔ Mobile number should be registered with bank accounts.

M

✔ Saving account holders with mode of operation “Self” and “Either or Survivor” (except
NRE/NRO & Sukanya Samridhi).
y:

✔ Current Account holders with mode of operation “Sole Proprietor”.

B

✔ OD Account holders with scheme code OD002, OD003, OD004, OD005, OD006,
OD016, OD017, OD023, OD026, OD028.
ed

✔ At a time only single Customer Id accounts can be linked to send or receive money.
d

However, soon customers will be able to link accounts having more than one
oa

customer ID linked to the mobile number

✔ Debit Card is mandatory for linking of Account and setting of UPI PIN for transacting
nl

through BHIM Baroda Pay – UPI App.

✔ When the customer sets the UPI PIN for one account, the UPI PIN will be valid for all
ow

linked accounts under the customer ID.

 Transaction Limits:
D

Txn – Transaction, Min – Minimum

Transaction Per txn Per day Min. Amount No. of txns per day
Type (amount) (amount) per txn
Fund transfer Rs.25,000/- Rs.1,00,000/- Rs.1/- 10
(P2P) (24 hrs rolling limit)

62
 Fund Rs.5000/- Till 24 Hrs Old Rs.1/- 10
Transfer(P2P) (PIN Set or limits applicable (24 hrs rolling limit)
After Reset) post cooling
Setting/Resettin period
g of UPI PIN
IPO (ASBA) Rs.2,00,000/- Not Applicable Not Applicable Not Applicable

Fund transfer Rs.1,00,000/- Rs.1,00,000/- Rs.1/- 10 (24 hrs rolling

(P2M) Rs.2,000/- limit)
(in case of

)
77
Online Mode
where Merchant

65
is un-verified)
USSD (*99#) Rs.5,000/- Rs.5,000/- Rs.1/- 10

12
K
.(A
Corporate Merchants (Requiring facility of Merchant portal / major customizations /
Technical integration)

IT
Merchants having good business relationship with Branch, maintaining substantial deposits with

K
the branch and requiring facility of Merchant portal / major customizations / Technical integration

N
are classified as corporate merchants.
A
T
1. Branch Official / RDM / ZDM forward the lead by taking detail from the prospective merchant
A

and forward to UPI department on email id – upidigital@bankofbaroda.com /

W

missiondigital@bankofbaroda.com.
A

2. After receiving the requirement from the Branch / Region / Zone, feasibility for merchant on-
M

boarding and integration will be checked with timeline for development / delivery and
U

integration cost.
K

3. Commercials will be decided on the basis of costing involved and merchant’s banking
r.

relationship with Bank and proposal will be sent to merchant.

M
y:

Standard commercials for corporate merchants:

B

Sl. Description of Fee Charges exclusive of GST Purpose

ed

1 Initial setup / In standard API based or QR code To cover the cost

Integration cost integration Minimum Rs.25,000/- + incurred by Bank for
d

G.S.T. integration /
oa

However, in case of any customization.

customization / new requirement, this
nl

cost will be charged based on the

ow

integration cost paid by Bank to

vendor.
D

Annual To cover the cost

2 maintenance/ Minimum Rs.5,000/- + G.S.T. incurred by Bank for
support fee providing support to
merchant.

63
 3 Security deposit Minimum Rs.1,00,000/- Security deposit to
cover normal
chargeback
4 Merchant Discount NIL
Rate (MDR)

E-RUPI
e-RUPI, a new digital payment mode under UPI is launched by Hon’ble Prime Minister on

)
02nd August 2021. e-RUPI is a one-time redeemable payment voucher in form of QR Code

77
or an SMS string which will be delivered to the beneficiary’s mobile phones and can be

65
redeemed at specific accepting centers without any credit or debit card, mobile app or
internet banking.

12
e-RUPI is basically a prepaid voucher which can be issued by Banks (issuing entities) on

K
behalf of Sponsor (any Corporate or Government agency) to a beneficiary (any citizen)

.(A
which will be delivered in form of a QR Code or SMS string strictly in digital mode. The
beneficiary will be able to redeem the prepaid voucher at designated location with voucher
acceptance infrastructure. Bank of Baroda is one of the leading Banks, van guarding this

IT
project on the issuing and accepting sides alike. Our Bank is fully supporting the e-RUPI

K
payment mode with issuing and redeeming of vouchers.

N
Baroda e-Gateway
A
Internet Payment Gateway (IPG) is a payment and settlement infrastructure which a
T
merchant uses to collect payment from their customer for online sale of products or services.
A

IPG shields the business unit from complex technical infrastructure required for e-commerce
W

business. It provides necessary access to payment system including Interchange agencies

A

like Master/Visa/Rupay, card issuing bank, aggregators, settlement bank etc.

M

Chargeback & Refund procedure:

U

Refund procedure:
K

Bank provides control panel login id to merchant for downloading MIS & may refund
r.

transaction amount partially or fully.

M

Dispute Management (Chargeback):

y:
B

Dispute/Chargeback begin when a cardholder reports a problem to the card issuer for many
reasons, primary among which are customer disputes, duplicate payments, processing
ed

errors, authorization issues, fraud and non-fulfilment of copy requests. Chargeback results
in debit of merchant’s account for which acquirer bank (BOB) ask supporting documents
d
oa

from merchant & after successful re-presentment get back the disputed amount.
Reconciliation and Settlement:
nl
ow

 Merchant will be settled for domestic card transactions by BOB on T+1 (working
days) for IPG and in T+2 (working day) for Paypoint where T is the transaction date.
D

For international cards T+3 (working days).

 Bank’s aggregator will settle the net-banking funds to merchant on T+2 (Working
days) for IPG and T+3 (Working days) for Paypoint where T is the transaction date.

64
  Merchant is provided an access to aggregator’s web-portal for monitoring and
downloading transactions and settlement report

 Queries related to transaction processing will be managed by IPG team.

 Any refund/ reversal which are initiated by the merchant are credited back into
customer account via Online or Offline mode of refund as applicable. Amount is
credited into customer’s account within 3 to 5 working days.
5.6 Baroda Pay Point
❖ Baroda Pay Point is a web / mobile based collection portal for all the payment and

)
77
administrative activities of educational institute such as school, college and

65
universities who do not have their own websites or developer.
Established for Minimum -1- year as Educational Institute. Must be affiliated to

12
respective board or University
❖ Baroda Pay Point Colony World is a web/mobile based application for collection of

K
society charges and other administrative charges of residential societies. Residential

.(A
Societies who don't have their own websites for collecting society charges from
members.
❖ Baroda Pay Point Get-eKart is a Mobile/ Web store platform which enables the

IT
merchants to launch their own e-commerce and mobile store platform. Retailer who

K
want to take their business online like small Kirana stores, departmental stores,

N
fashion stores etc.
❖ 24x7 easy access through mobile App and web portal.
A
T
bob World
A
W

The bank's Mobile Banking application is the support of this digital adoption providing
A

access of more than 220 + services on finger tips of the customer.

M

bob World is introduced as an umbrella sub-brand to include all digital products of the
U

Bank. In line with the branding exercise, nomenclature of Bank's mobile banking
K

application m-Connect+ has been renamed as bob World application.

r.

● B3 digital account - New to bank customers can open a B3 (bob World Benefits Bonanza)
M

digital savings account instantly using remote Video KYC. The account opening process
is completely digital with zero physical touch points and is packed with exclusive benefits
y:

like OTT subscription, benefits on charges, reward points and many more.
B

● bob World application is an all-In-one app to cater to the customer's requirements of

ed

banking and beyond. A brand new User Interface and streamlines user experience has
been created to provide a refreshed look and feel of the application.
d
oa

The application has been designed on the following 4 pillars, encompassing nearly 220
nl

services: a) SAVE b) INVEST c) BORROW d) SHOP

ow

Who can avail?

 Savings Account (age 15 & above, mode of operation – Self, Either or Survivor,
D

Anyone or Survivor) – eligible for registration, view and transaction rights.

 Baroda Champ Account (age 10 & above, mode of operation – Self) – eligible for
registration, view and transaction rights.
 Current Account (mode of operation – Self, Either or Survivor, Anyone or Survivor,

65
 Proprietor) – eligible for registration, view and transaction rights.
 In joint accounts with mode Either or Survivor, Anyone or Survivor, registration can be
done as per choice of all account holders. Application to be signed jointly. All other
joint accounts and schemes are not eligible for mobile banking.
 Overdraft account (mode of operation – Self, Either or Survivor, Anyone or Survivor,
Proprietor) – eligible for registration, view and transaction rights. Only the following OD
schemes are eligible for mobile banking – OD002, OD003, OD004, OD005, OD006,
OD016, OD017, OD023, OD026 and OD028.


)
Eligible NRI accounts (NRE - SB201, SB205, SB206, SB224, and SB252. NRO -

77
SB301) eligible for registration, view and transaction rights.

65
 CC accounts are eligible for balance enquiry only but are not eligible for registration.
They will be auto-fetched provided CC account holder is already registered using other

12
eligible account schemes.

K
 PPF accounts are auto-fetched in mobile banking if your PAN is updated properly in

.(A
both customer id and PPF account.
 SSY accounts have to be added manually by parents or guardians of girl child in their
mobile banking before they can view balance, transfer funds, and request statement.

IT
 All deposit accounts with mode of operation Self, Either or Survivor, Anyone or

K
Survivor will be visible.

N
All loan accounts with mode of operation Self, Either or Survivor, Anyone or Survivor
A
will be visible.
T
A

Major Changes in bob World:

W
A
M
U
K
r.
M
y:
B
d ed
oa
nl
ow
D

66
 Credit Score – Customers can now view their Credit Score provided by M/s Equifax Credit
Information Services Private Limited. The first credit score is absolutely free of cost.
Second score pull onwards customers shall be charged Rs. 20 + GST
Cash on Mobile Card less cash withdrawal up to Rs. 5000/- per day from Bank of Baroda
ATM using OTP shown in app. OTP can be generated by going to Cash on Mobile option
in the application. It will not be sent as SMS. OTP is valid for 15 minutes only and can be
used on Bank of Baroda ATMs.
Mobile banking application bob World can be downloaded via respective Play stores.

)
77
Never download applications from unknown/unverified sources. Confirm the genuineness
of the Bank of Baroda’s Mobile Banking application under “App info” section of Playstore /

65
Appstore.

12
 Android 4.5 & above – Google Playstore
 iOS 9.0 & above – Apple Appstore

K
.(A
New features launch in bob World :
 Apply for IPO(Initial Public Offering)-ASBA
 Feedback & Support – Lodgement of Complaints in App

IT
 Revised Wealth management Services flow to buy/sell Mutual Funds.

K
 Bolder Icons and reimagined UI/UX journeys

N
 Bob world Gold for Senior citizens customers A
 Smart Serarch

T
Contribution of NPS
A

 Demat Account Opening


W

Enhanced Personal Loan flow to apply Loans

A

Transaction Limits
M
U
K

# Service No. Minimu Maximu Maximu Per Per month

of m m m week(Rs.)
r.

txn Amount amount amount

M

in a (Rs.) per per day

y:

day transacti (Rs.)

B

on
(Rs.)
ed

1 Cash on Mobile 100 5,000 5,000 10,000 25,000

d

2. Fund Transfer - Self

5 Un-limited Un-limited Un-limited Un-limited
oa

Transfer
3. Fund Transfer – Third
nl

5 2,00,000 5,00,000 10,00,000 20,00,000

party
ow

4a. Fund Transfer

(Beneficiary 2,00,000 2,00,000 5,00,000 15,00,000
D

payments) – IMPS 5
4b. Fund Transfer (Instant
25,000 50,000 2,00,000 5,00,000
payment) – IMPS
5. Fund Transfer
(Beneficiary 5 2,00,000 5,00,000 10,00,000 20,00,000
payments) – NEFT

67
6. Fund Transfer
(Beneficiary 30 2,00,000 2,00,000 5,00,000 10,00,000 20,00,000
payments) – RTGS
7. BillPay/Recharge/Paym
ent Services
Mobile / DTH Recharge
Quick Bill Pay 5 25,000 50,000 1,00,000 2,50,000
Registerd Bill Pay
Scan to Pay

)
77
Tonetag
8 BOBcard payment No Limit No Limit No Limit No Limit No Limit

65
9. Merchant Eco-system
Bus/Flight/Hotel No Limit No Limit No Limit No Limit No Limit

12
Recharge & Gift Card 5 10,000 25,000 50,000 1,00,000

K
10. Fixed/Recurring
1000 Un-limited Un-limited Un-limited Un-limited

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Deposit

WhatsApp Banking is a New Digital Delivery Channel which uses Social Media Platform

IT
for providing basic banking services using WhatsApp messenger which will act as a delivery

K
channel for Bank’s customers/ non-customers. The WhatsApp Baking service is available
to the customer’s on both Android and iOS mobile handsets.
N
A
Bank’s WhatsApp Business Account Number 84 33 888 777
T
A
W

Baroda GIFT CARD

A
M

Now Bank launched new INR prepaid variants with enhanced features on our foundation
U

day with RUPAY network. Issuance of existing variant of cards was withdrawn from 09th
K

August, 2020 and issuance of cards from new prepaid system started from 10th August,
2020.
r.
M

 Can be purchased by both customers and Non customers of Bank.

 Available as both Physical and Virtual variant.
y:

 Card is a RuPay Platinum Mag stripe card.

B

 Maximum amount that can be loaded on to the card is Rs.10,000/- and minimum load
ed

amount is Rs.500/-.

d

Retail users can purchase up to 10 gift cards in a year in both physical and virtual forms.
oa

 Corporate customers can purchase any number of cards in any form either physical or
virtual
nl

 The maximum amount up to which a corporate customer can purchase gift cards in a
ow

single transaction is Rs.1 crore only and aggregate Rs.10.00 crore in a financial year. If
the purchase in a single transaction surpasses the limit of Rs. 1 crore, then the same is
D

to be referred to Head Digital Banking through in-charge prepaid cards for approval.

Baroda Gift Card Value (In Rs.) Issuance fee excluding GST (In Rs.)

68
 Between 500/- and 2000/- 50/-
Between 2,001/- and 10,000/- 100/-
Lost Card Replacement Fees 100/-
Lost Card Cancellation Fees 100/-

Differences between physical and virtual card

)
 Both the cards are similar in terms of usage and issuance except for a few features

77
which are detailed below.

65
 Purchaser needs to provide mobile number along with date of birth of the beneficiary
mandatorily for issuance of virtual Gift card.

12
 Minimum amount of load is Rs.100.

K
.(A
 Card can only be used at E com websites. As physical form of the card is not present,
the card cannot be used at POS Terminals
 Issuance fee for virtual card is NIL.

IT
 Card holder needs to visit customer service portal as per the link available in prepaid

K
N
card section of our banks website to retrieve card details and use the card.

A
There will be no replacement in case of virtual card as there is no actual loss of
physical card.
T
A
W
A

Baroda TravelEasy Multi Currency Forex Card

M
U

Bank has launched foreign currency variant of prepaid cards called ‘ Baroda TravelEasy
K

Card' in USD currency since 27th Aug 2012 from Forex Authorized branches. There after
many other currencies have been added to the Baroda TravelEasy card portfolio.
r.
M

With the advancements in technology and market changes, Single currency product is
withdrawn from market on 31st may 2020 and a new improved Baroda Multi currency forex
y:

card was launched.

B

Salient features of Baroda TravelEasy Multi Currency Forex card:

ed

 Card can be issued to both customers and Non customers of Bank.


d

Card is a VISA Platinum EMV Chip NFC (contactless) enabled card.

oa

 Card can be loaded with three currencies i.e. USD, GBP & EURO.
 The USP of the card is immediate activation and ready to use on real time basis.
nl

 Card will be valid for a period of minimum three years from the date of activation or the
ow

date printed on the card whichever is earlier.

 Card is Reloadable in nature and can be reloaded any number of times, within the overall
D

limit of the customer as per FEMA guidelines.

 Card can be loaded with 10,000 units of currency in a single transaction and up to 25,000
units of forex currency in a day
 Card can be used at all VISA accepted POS / E-Com terminals and ATM machines.
 International ATM withdrawal is allowed up to USD 2,000 per day. Per day limit of E-
Com / POS transactions is USD 10,000 or equivalent.

69
  Customer will get SMS alerts for all transactions on registered mobile number.
 To manage various currencies, Baroda TravelEasy Multi currency forex card is
supported with a Baroda TravelEasy mobile application which can be downloaded by
customers from Playstore. It allows customer to manage cross currency and also has
other value added services like International ATM locator, finger print based login and
lock / unlock card.
 Live offers from VISA based on location are available on Baroda TravelEasy mobile
application.
 As part of security features, customers can enable or disable ATM / POS / ECOM or all

)
channels of the card through customer self-service portal or Baroda TravelEasy mobile

77
application.
 A Retail user can purchase only one card with an ID (Passport) i.e. there can only be

65
one active card with a person at any given point of time. If the card is lost or damaged,

12
same will be replaced on the underlying ID.
 Corporate customers can purchase any number of cards subject to completion of Full

K
KYC of each card holder and fulfilment of KYC / FEMA / Bank guidelines.

.(A
Availability:

IT
Baroda TravelEasy Card would be available for issuance at all our 222+ B Category

K
branches only. Other branches may direct their customers to nearest ‘B’ category branch

N
or approach the nearest ‘B’ category branch and facilitate issuance of Baroda TravelEasy
A
Multi Currency Card for their own customers.
T
Load Forex:
A


W

Card can be loaded by choosing load option from any branch of bank irrespective of the
card issuing base branch.
A

 Maximum amount permissible to be loaded on the card is based upon the purpose of
M

visit and trip duration within the overall limit of USD 2,50,000 per customer per year, as
U

per FEMA act.

K

 The overall limit with in which the card can be loaded with different currencies is
equivalent in USD overall limit.
r.

 User needs to select Load option under travel card menu option and enter KIT number
M

through which all the detail from earlier issuance will be auto populated.

y:

Branch maker will have to select the currency to be loaded and amount, based on which
Currency conversion tax, conversion amount, reload fee, GST and total debit amount
B

will be auto calculated.

ed

 Process flow that is to be followed in case of reload of card for non-customer is same
as that of customer except for collection of funds in prepaid card collection account prior
d

to load.
oa

 Only one currency can be loaded at a time and if the customer opts to load, two different
currencies at a time, the same will be counted as two different transactions and branch
nl

user has to perform two loads accordingly.

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 Branch needs to proceed for load after ensuring that the fund is received in prepaid card
collection account and also after authenticating the transactions details with the details
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submitted in application and supporting documents.

Tax Collection at Source (TCS) on Liberalized Remittance Scheme (LRS):

70
  As per the amendment in finance bill 2020, section 206C sub section (1) G, authorized
dealers are liable to collection “Tax Collection at Source” (TCS) for overseas remittances
under LRS.
 Currently, we allow remittances through MCFX card only for purpose code that fall under
Travel purpose. Visit purposes other than Travel will not be allowed to load through
MCFX.

Applicable rate of LRS for different Purpose codes is as follows –

)
LRS Purpose Code Applicable TCS Eligible Limit for Tax

77
wavier
S0301 – Business Travel 5% None

65
S0303 – Travel for pilgrimage

12
S0304 – Travel for Medical Treatment
S0306 – Other Travel

K
S0305 – travel for education with 0.5% Tax applicable for amount

.(A
education Loan > INR 7 Lakhs remitted in
a FY.
S0305 – travel for education without 5% Tax applicable for amount

IT
education Loan > INR 7 Lakhs remitted in

K
a FY.

Green PIN:
N
A
The Green PIN facility has been made available for all debit card variants (Chip and non-chip,
T
personalized and Non-personalized debit cards of all the variants). Hence, any debit card
A

holder of our bank can set/re-generate his/her debit card PIN through Green Pin functionality.
W
A

Baroda Reloadable Card

M

Baroda Reloadable card available in INR currency. Card can be reloaded multiple number
of times. This makes it perfect dole out for recurring overheads like pocket money, travel
U

allowance, daily/monthly wage, meal allowance etc.

K

 Card can be purchased by both customers and Non customers of Bank.

r.


M

Card is a RuPay Platinum EMV Chip card.

 Card will be valid for a period of minimum three years from the date of activation or
y:

the date printed on the card whichever is earlier.

B

 Maximum amount that can be loaded on to the card is Rs.1,00, 000 at a time
ed

 Card can be used at all RuPay accepted E Com and POS terminals and ATM machines
& ATM withdrawal is allowed.
d

 A Retail user can purchase only one card i.e. there can only be one active card with a
oa

person at any given point of time. If the card is lost or damaged, same will be replaced
nl

on the ID.
ow

 Corporate customers can purchase any number of cards subject to completion of Full
KYC of each card holder.
D

 Cardholder can check available balance and/or transaction details online

through https://bobprepaid.enstage.com/prepaid/cms/customer/index.jsp

Schedule of Charges

71
 S. No. Type of Charges Amount (Rs. )
1 Issuance Fee 100/-
2 Annual Maintenance Fee ( Re load ) NIL

3 Replacement Card Fee 100/-

Lost/Stolen/Damaged/Expired
4 ATM Withdrawal Fee 22/-

)
5 ATM Balance Enquiry Fee 12/-

77
6 PIN Lost ( PIN reset ) 100/-

65
12
Self Service Passbook Printer

K
Self Service Passbook Printer is an automated kiosk where in customer can print their

.(A
passbook on their own. SSPBP kiosk recognizes the account details from the Magnetic
Strip/QR code placed on the Passbook. Through these details, kiosk fetches the account
and transaction details and prints it on passbook. Customer can use this facility 24x7 from

IT
the SSPBP machine installed in E-lobby/ATM cabin.

K
N
A
SMS Banking/Missed Call Facility
T
Weblink: https://www.bankofbaroda.co.in/missed-call-facility.htm
A
W

A SMS to be sent from their registered mobile number to 8422009988

A

Services offered are:

❖ Balance Enquiry
M

❖ Mini Statement
U

❖ Cheque Status
K

Customer has to send a SMS text as under:

r.

1 For Balance enquiry - BAL <space> last 4 digit of account number

M

2 For Mini statement - MINI <space> last 4 digit of account number

y:
B

3 For Cheque status - CHEQ <space> last 4 digit of a/c no <space> cheque no.
ed

4 For Aadhar seeding - 12 digit aadhar number <space> last 4 digit of a/c no
d

For Registration of
oa

5 preferred account REG <space> last 4 digit of a/c no <space> cheque no.
nl

BLOCK<space>C<space> Last Four Digit of Card Number or

ow

BLOCK<space>A<space> Last Four Digit of Account

6 Debit Card Blocking Number
D

Subscribe or
7 Unsubscribe ACT/DEACT<space> Last Four Digit of Account Number
8 PMJDY OD Request ODREQ <space> Y

72
 PMJJBY /PMSBY
9 Enrolment PMJJBY/PMSBY <space> Nominee Name <space> Y

Missed Call facility for ―Balance Inquiry

Customers, who have registered their mobile number, can get balance of their accounts by
just giving a missed call from their registered mobile number to mobile number 8468 00
1111 for Account Balance & 8468 00 1122 for Mini Statement .

)
77
Salient features of the facility are as under:-
❖ Balances of account under Saving, Current, Cash Credit and Overdraft schemes are

65
provided through this facility.

12
❖ Customer may have more than one account with same mobile number. Customer can
use this facility maximum ―3 times in a day, system will not respond thereafter.

K
❖ This service is available only for resident accounts i.e. accounts with domestic mobile

.(A
❖ The mini statement can be used only once in a day.

IT
Baroda Fastag (NETC- National Electronic Toll Collection)

K
N
A
Government of India has undertaken an initiative to build India’s highway network. This
emphasises the need for instituting toll collection points on large scale, which leads to a
T
framework for creating an automated and interoperable electronic tolling structure across
A

the country’s highway network. For providing a composite solution on Electronic Toll
W

collection, National Highways Authority of India (NHAI) & Indian Highway Management
A

Company Ltd. (HMCL) have authorized NPCI.

M

This will enable the customers hassle free toll payment service by just affixing the Baroda
FASTag (based on radio-frequency identification technology (RFID)) on a vehicle’s
U

windscreen, the amount of toll will be automatically debited from the tag balance of the
K

customer.
r.

✔ Baroda FASTag has a validity of 5 years and after purchasing it

M

✔ Available for any individual/Corporate for both customers and non-customers.

y:

FASTag charges
B

Issuance Fees – Rs 100 (inclusive of GST)

ed

Replacement fees – Rs 50+ GST

d

Minimum first recharge

Vehicle Class Description Tag Deposit (Rs.)
oa

Amount (Rs.)
nl

4 Car/Jeep/Van 100.00 200.00

ow

Light Commercial
5 100.00 140.00
vehicle 2-axle
D

7 Bus 2-axle 100.00 300.00

6 Bus 3-axle 100.00 300.00
5 Mini-Bus 100.00 300.00
7 Truck 2 – axle 100.00 300.00

73
 6 Truck 3 – axle 100.00 300.00
12 Truck 4 – axle 100.00 300.00
12 Truck 5 – axle 100.00 300.00
12 Truck 6 – axle 100.00 300.00
Truck Multi axle ( 7
15 100.00 300.00
and above)
Earth Moving
16 100.00 300.00
Machinery

)
77
65
ATMs and Cash Recyclers

12
Cash withdrawal limit from ATM is maximum Rs.1,00,000/- and maximum 10 withdrawal
transactions depending upon the card variant.

K
Salient functionalities available in Cash Recyclers are as follows:

.(A
Cash Deposit condition for customers
 Daily transaction limit for account without PAN (Permanent Account Number) registered

IT
in CBS is Rs. 49,900/-. There is no restriction on number of transactions of cash deposit
till daily limit of Rs. 49,900/- is reached. This limit also includes the cash deposited over

K
the counter at the branches.

N
 Daily transaction limit with PAN registered in CBS is Rs. 2,00,000/- without any restriction
A
on number of transactions. This limit also includes the cash deposited over the counter
T
at the branches.
A
W

Cash Deposit without Card Transaction

 Cash Recycler machine facilitates customer to deposit the Cash in Savings / Current /
A

Cash Credit / Overdraft account by giving the account number (Card-less Transaction),
M

where per transaction and per day limit is of Rs. 20,000/- subject to daily transaction
U

limit without PAN (Permanent Account Number) registered in CBS of Rs. 49,900/-.
K
r.

Cash Withdrawal
M

This facility is exactly like ATM operations and available with Debit / ATM Card only. The
Cash Recycler dispenses cash deposited by customers using Cash Acceptor facility.
y:

 Other Bank customers having Debit / ATM Card can also use Cash Recycler for Cash
B

Withdrawal only.
Maximum cash withdrawal limit per transaction for our Customer is Rs. 15,000/-, however
ed

per day Cash withdrawal limit is as per the variant of Debit Card.
d

Managed Service Migration

oa

 Bank has outsourced the Managed Services for CAPEX ATMs/Cash Recyclers and Site
construction for ATMs. Bank has now identified 3 new Managed Services vendors M/s
nl

AGS, M/s HITACHI, and M/s FSS.

ow

RuPay Insurance Program 2022-23 (HO:BR:114:326)

D

NPCI has extended RuPay Insurance Program for RuPay PMJDY (including Samagra &
Bharnashah variant) and RuPay Premium (Rl)Pay Platinum & Select variant) cards for the
Financial Year 2022-23. New India Assurance Company Ltd. and TATA AIG General
Insurance Company Ltd. shall continue to be the Insurance partner of NPCI for RuPay
PMJDY and RuPay Premium Cards respectively.

74
 Debit Card - Insurance coverage

Debit card transactions Please refer circular No BCC:BR:114:509 Dated 27th July,2022
regarding insurance coverage for Debit card transactions from M/s National Insurance
Company Limited. In order to safeguard our customer's interest against fraudulent siphoning
of money from their accounts using their Debit Card credentials, Bank has obtained new
Debit card Insurance package policy from M/s National Insurance Company Limited. The
policy will be effective from 27thJuly, 2022 and valid up to 26th 2023.

)
77
Debit Card Issuance

65
● Consumer Debit Card can be issued in Individual accounts (including NRE & NRO)

12
having mode of operation as “Self”, “Either or Survivor”, “Anyone or Survivor” and “Sole
Proprietor”.

K
.(A
Other Information on Debit Card Usage:

Recently, to improve user convenience and increase the security of card transactions, RBI

IT
has issued following guidelines vide its circular ref no. DPSS.CO.PD

K
No.1343/02.14.003/2019-20 dated 15th Jan 2020 -

N
 At the time of issue / re-issue / renewal, all the debit card will be enabled for use
A
only at contact-based points of usage [viz. ATMs and Point of Sale (PoS) devices]
within India.
T
 Existing cards which have never been used for Online / International / Contactless
A

transactions shall be mandatorily disabled for this purpose.

W
A

Hence, to comply with the RBI guidelines mentioned in the above circular and to prevent
M

the cardholder from any fraud, Bank has made the following changes in the Debit Card
issuance / usage (refer circular ref no. BCC:BR:112:401 dated 9th Oct 2020) –
U

 All the new card issued after 9th October 2020 are enabled only for use at ATM and
K

POS terminal.
 Disablement of Online / International / Contactless transaction for the existing
r.
M

cardholders which have never been used these facilities.

y:

Customer can enable Debit Card for Domestic Online and International transactions using
Baroda M-Connect Plus (Mobile Banking App) and Bob World Internet (Internet Banking).
B

 Domestic - Number of free transactions on other Bank’s ATMS:

ed

 Number of mandatory free ATM transactions for savings bank account customers at other
bank’s ATMs is three transactions per month (inclusive of both financial and non-
d

financial transactions) for transactions done at the ATMs located in the six metro
oa

centres, viz. Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.
nl

 Except the six metros mentioned above there will be five free transactions per month
ow

(financial or non-financial) at all other centres for Savings Bank customers, as existing.
D

 There is no restriction for using our bank ATM by our customers up to permissible number
of transactions as per card variant.

 The charges that shall be levied to the Savings Bank Account Customer after permissible
free transactions on other Bank’s ATMs are as under –

75
  Rs 20/- plus GST per transaction for Financial Transaction.
 Rs.10/- plus GST per transaction for Non-Financial Transaction.

 For current/ Overdraft account holder: Rs 20/- plus Service Tax for every Financial
transaction and Rs.10/- plus service tax per transaction for Non-Financial Transaction;
No transactions are free for these account holders for usage of Debit Card on other
Bank’s ATMs.

 Fee / Penalty for decline of Debit Card Transactions due to insufficient fund in the account
(ONUS & OFFUS Transactions, w.e.f. 1st August 2020): Rs.20/- per declined

)
77
transactions. (BSBD Accounts-Fee/Penalty Exempted)

65
ATM International Usage charges:
No ATM cash withdrawal transactions are free in overseas. Charges for International

12
Transactions are as under -

K
 For Financial transactions:

.(A
 Classic Variant: Rs. 250+GST
 Platinum Variant: Rs. 450+GST
 For Non-Financial transactions: Rs. 30+GST

IT
Debit card Hot-listing/Blocking

K
N
In case of card lost, the customer should immediately get it blocked through following modes
A
A. Self Service Channel – Instant 24X7 Debit Card Blocking option
T

 Bob World (Mobile Banking Application)

A

 Bob World Internet (Internet Banking)

W

 WhatsApp Banking
A
M

B. Assisted Channel
U

 Base Branch (available during branch operations time): “DCARDBLK” Menu option has
K

been provided in CBS/Finacle to block the debit card. An SMS alert will be sent as a token
of confirmation to the Debit card holder on their registered mobile number, whenever a
r.

debit card is hot listed/blocked.

M

 Contact Centre (24X7) at 1800 258 44 55 or 1800 102 44 55.

y:

In addition to this customer can set limit (from 0 to maximum limit of Debit Card variant) for
ATM and POS / E-Com transaction through the Debit Card Limit setting option available in
B

Baroda M-Connect Plus (Mobile Banking App) and Bob World Internet (Internet Banking).
ed

Baroda Deposit Card:

d

Our Bank has introduced Baroda Deposit Card for our corporate customers maintaining
oa

Current account, Cash Credit, Overdraft accounts to deposit cash through Cash Recyclers.
The corporate customer can utilize the cash deposit facility using Cash recycler’s machines
nl

with this card. Customer can be issued up to 10 deposit cards per account.
ow

Eligibility: Only CA, CC and OD accounts (other than individual and sole proprietorship
D

accounts are eligible.

Previous Conditions for deposit of cash in recycler machine with and without debit card
● Deposit Cash amount of Rs. 20,000/- to any account without any debit card in cash
recycler machine.
● Max Rs. 2 Lakh if PAN is available in the account (OLD limit).

76
 ● Can Deposit Rs. 49,900/- when having Debit Card of the account holder.

This card is apparently similar to a Debit Card but it can be used only for depositing cash in
a designated accounts. It will be issued to Non-individual Customer on specific request.
Limits:
● Withdrawal: Card will be having Zero Cash withdrawal/purchase limit through POS &
E commerce.
● Cash Deposit: Maximum Cash that can be deposited in a day is Rs 5,00,000 per
account which can be enhanced as per Business Requirement.
● No of Add on Cards: Maximum 10 Baroda Deposit Card can be issued for an account.

)
77
Usage: Card can be used only at Bank of Baroda Cash recyclers for Pin change & Cash
deposit facility.

65
Charges: Annual Charges (Rs. 150 +18% GST) per card shall be recovered from card holder
in line with other existing debit card variants.

12
K
Summary of Debit Card variants

.(A
Charges:

IT
K
N
A
T
A
W
A
M

Different variants of Debit cards in our Bank

U
K

Sr. Vari Withdrawal Daily Limit Daily International Contactless

r.

No. ant Name Frequency Cash Limit Usage Usage

M

Withdrawal (POS/ E- (Yes/No) (Yes/No)

y:

com)
B

1 RuPay Select 20 1,50,000 5,00,000 YES NO

ed

2 RuPay Platinum 10 50,000 1,00,000 YES NO

d
oa

3 RuPay Classic 4 25,000 50,000 NO NO

4 RuPay PMJDY 4 25,000 50,000 NO NO
nl
ow

5 RuPay 4 25,000 50,000 NO NO

Bhamashah
D

6 RuPay Samagra 4 25,000 50,000 NO NO

7 RuPay BKCC 4 25,000 50,000 NO NO

77
 8 RuPay Mudra 4 5,000 5,000 NO NO
(Kishore, Shishu
& Tarun)
9 IFFCO co- 25,000 50,000 NO NO
branded RuPay
Classic
10 RuPay NCMC 10 50,000 1,00,000 NO YES

)
77
qSparc

65
Domestic

12
11 Baroda RuPay 3,000 3,000 NO NO

K
Classic

.(A
Champ**
12 Visa Platinum 10 50,000 2,00,000 YES NO

IT
13 Visa Platinum DI 10 50,000 2,00,000 YES YES

K
Contactless

N
14 Visa Contactless 10 50,000
A
2,00,000 YES YES
T
15 Visa Classic 4 25,000 50,000 NO NO
A

16 Baroda VISA 20 2,00,000 5,00,000 YES YES

W

Vyapaar
A
M

Business
U

17 MasterCard 10 50,000 100,000 YES NO

K

Platinum
r.

18 MasterCard DI 10 50,000 100,000 YES YES

M

Contactless
y:

Platinum
B

19 Baroda 2,00,000 5,00,000 YES YES

ed

Radiance
d
oa

(MasterCard
World)
nl

20 MasterCard DI 4 25,000 50,000 NO NO

ow

Classic
D

21 Baroda BPCL 4 50,000 1,00,000 YES YES

Co-Branded
Debit Card

78
 22 Bob World 50 5,00,000 1000,000 YES YES
Opulence Card
– Super
Premium Visa
Infinite Debit
Card
23 Bob Wold 30 3,00,000 5,00,000 YES YES

)
77
Sapphire Card –

65
Premium VISA

12
Signature Debit

K
Card

.(A
24 Bob World 150000 500000 Yes yes
Yoddha Debit

IT
Card

K
N
** Baroda RuPay Champ Combined limit including ATM/POS/Ecom is 3000.
A
T
 Withdrawal limit per transaction from Bank of Baroda ATM: 15000/-.
A

 Withdrawal limit per transaction from other Bank’s ATM: 10000/-.

W

“bob World Wave”

A
M

Wearable Payment Solution is one of the most prominent technology which has
U

significantly evolved in past few years. In order to broaden the product range in wearable
K

form factor and to provide latest technology to our customers under digital umbrella, Bank
is launching Wearable Payment Solutions branded as “bob World Wave” for customers.
r.

The payments are based on RuPay Classic NCMC rails.

M

In the initial phase Bank is launching the smart watch variants of the “bob World Wave” in
y:

association with M/s GOQii Technologies Pvt. Ltd., who is a leading company in the field
B

of fitness band / tracker / watches under the RuPay card variants.

ed

Customer can do the following transaction using the bob World Wave:
d

A. ATM – Cash withdrawals: Not available.

oa

B. POS (enabled for contactless payments) / E-Commerce

Maximum Per day limit at POS / E-Commerce (For Domestic Usage only) INR 1,00,000/-
nl

C. Contactless Mode
ow

Maximum per transaction limit using Contactless mode. INR 5,000/-

(For Domestic Usage only)
D

No. of daily Contactless transaction Limit. (For Domestic Usage only) 5

The benefits of bob World Wave (Smart Watch variants) to customers are as under -
 bob World Wave is designed to ensure expedient and seamless digital payments
with just a tap on the device to meet the demands of our evolving customers.
 Contactless transactions up to 5,000/- without PIN (Tap and Pay).

79
  Transaction limit on any NFC / RFID enabled POS up to INR 1,00,000/- per day
with PIN authentication.
 Customer can also perform e-commerce transactions up to INR 1,00,000/- per day
by referring Non Payment Dummy card provided along with the device through CVV
and OTP authentication.
 Secured transactions with EMV Technology.

National Portal Platform (JanSamarth) - A single window for all credit linked subsidy
schemes.

)
77
Government of India has initiated ATMANIRBHAR BHARAT ABHIYAN, a slew of
economic measures to make the country self-reliant. Under this initiative, Government has

65
introduced National Portal for Credit Linked Government Schemes. The primary aim is to

12
make this platform a single window for all credit linked subsidy schemes in the country and
make this platform single source for all loan applications which involve Government

K
subsidy.

.(A
The Platform would connect various stakeholders of the financial ecosystem i.e.
Applicants, Central Government Agencies, State Governments, Implementing Nodal
Agencies e.g. NABARD, SIDBI, etc. together on a single platform to promote inclusive

IT
development and ease of doing business. The Platform would also have entire digital loan
processing up to In-principle sanction stage integrated in the system.

K
Introduction to National Portal
N
A
• National Portal is an online marketplace, which enables the loan aspirants to make their
T
loan application online.
A

• The platform will have real time digital experience through integration with UIDAI, NSDL,
W

CBDT, Credit Bureau, Nodal agencies etc

• The platform will act as single source for all loan applications which involve Government
A

subsidy.
M

• This initiative was taken to ease loan approval process for the individual for Retail loans
U

and MSME/AGRI Business in India which involve govt. subsidy. The Platform facilitates
K

complete contactless journey of the applicant upto In-principle sanction of

Retail/Business/Agri loans.
r.

• The analysis process is done from the various sources of the loan applicant's financial
M

profile such as IT returns, GST, Bank Statements, Bureau Reports, etc. and the in principle
sanction is accorded based on the rule engines as per Bank's product specific eligibility
y:

criteria.
B

• All banks will be integrated with the platform and loan applications will flow to banks/
ed

branches online.
• Subsidy will be managed through the platform in next phase of implementation.
d

• Data in respect of performance of the scheme, pendency, will be available to

oa

Branches/Regional Offices/Zonal Offices/ HO/Ministry through Banker interface

nl
ow
D

80
 GENERAL KNOWLEDGE

)
77
About our Bank

65
A Saga of Vision and Enterprise - It is a story scripted in corporate wisdom and

12
social pride. It is a story crafted in private capital, princely patronage and state
ownership. It is a story of ordinary bankers and their extraordinary contribution in

K
the ascent of Bank of Baroda to the formidable heights of corporate glory. It is a

.(A
story that needs to be shared with all those millions of people - customers,
stakeholders, employees & the public at large - who in ample measure, have
contributed to the making of an institution.

IT
K
Our Mission - To be a top ranking National Bank of International Standards

N
committed to augmenting stake holders’ value through concern, care and

A
competence.
T
Our Founder - The bank was founded by the Maharaja of
A
Baroda, Maharaja Sayajirao Gaekwad III on 20 July 1908. The
W

bank, along with 13 other major commercial banks of India, was

A

nationalised on 19 July 1969, by the Government of India and

M

has been designated as a profit-making public sector

undertaking (PSU).
U
K

Our Logo - Our logo is a unique representation of a universal symbol. It

r.

comprises dual ‘B’ letterforms that hold the rays of the rising sun. We call this the
M

Baroda Sun.
y:

The sun is an excellent representation of what our bank stands for. It is the single
B

most powerful source of light and energy – its far reaching rays dispel darkness
to illuminate everything they touch. At Bank of Baroda, we seek to be the source
d

that will help all our stakeholders realise their goals. To our customers, we seek
de

to be a one-stop, reliable partner who will help them address different financial
needs. To our employees, we offer rewarding careers and to our investors and
oa

business partners, maximum return on their investment.

nl

The single-colour, compelling vermillion palette has been carefully chosen, for its
ow

distinctiveness as it stands for hope and energy.

D

We also recognize that our bank is characterised by diversity. Our network of

branches spans geographical and cultural boundaries and rural-urban divides.
Our customers come from a wide spectrum of industries and backgrounds. The

81
 Baroda Sun is a fitting face for our brand because it is a universal symbol of
dynamism and optimism – it is meaningful for our many audiences and easily
decoded by all.

)
Our new corporate brand identity is much more than a cosmetic change. It is a

77
signal that we recognize and are prepared for new business paradigms in a
globalised world. At the same time, we will always stay in touch with our heritage

65
and enduring relationships on which our bank is founded. By adopting a symbol

12
as simple and powerful as the Baroda Sun, we hope to communicate both.

K
Our Core Values - Our Bank has adopted six core values which we have been

.(A
following throughout the Globe across multiple locations & countries and which
are the guiding principles based on which operate:

IT
1-Integrity: We are ethical & transparent in our words, actions and dealing with
all stakeholders - सत्यनिष्ठा - हम अपिे नहतधारक ों के साथ वाणी, कार्य और व्यवहार में

K
िैनतक और पारदर्शी हैं ।

N
2-Cusomter Centricity: Our customers ‘interests lie at the core of all our

A
actions. - ग्राहक केंद्रीर्ता - हमारी सभी गनतनवनधर् ों का केंद्र हमारे ग्राहक का नहत है ।
T
3- Courage: We are resilient in the face of adversity and having faith in our
A
beliefs. - साहस - हम नवपरीत पररस्थथनतर् ों में भी धैर्य बिाए रखते हैं और अपिे मूल् ों पर
W

नवश्वास करते हैं ।

A

4-Passionate Ownership: We display energy, enthusiasm & commitment

M

towards our Bank and we work together for our Bank. - उत्साहपूणय स्वानमत्व - हम बैंक
U

के प्रनत ऊर्ाय , उत्साह और अपित्व का भाव रखते हैं तथा एक साथ नमलकर बैंक के नलए कार्य
K

करते हैं ।
5-Innovation: We create value with break-through ideas. - िव न्मेनिता - हम िवीि
r.

नवचार ों से मूल्सोंवधयि करते हैं ।

M

6-Excellence: We strive for continuous improvement in our polices, systems &

y:

processes. उत्कृष्टता - हम अपिी िीनतर् ,ों प्रणानलर् ों और प्रनिर्ाओों में लगातार सुधार करिे
B

का प्रर्त्न करते हैं ।

d
de
oa
nl
ow
D

82
 Offices & Branches

Bank’s Administrative and Functional Set Up – Indian Operations –

)
1) Head Office

77
2) Corporate Office
3) Zonal Office

65
4) Regional Office

12
5) Branches/ offices (Metro/Urban/Semi-Urban/ Rural)

K
Corporate Offices & Head Office

.(A
Baroda Corporate Centre, Plot No. C-26, Baroda Bhavan, R C Dutt Road, Alkapuri,
Block G, Bandra Kurla Complex, Bandra Baroda – 390007
(East), Mumbai 400051

IT
K
Branch Network (as of 31.10.2022)

N
Area No. of Branches

A
Metro 1778
Urban 1475
Semi-Urban
T 2074
A
Rural 2839
W

Total (Domestic) 8166

A

Total Office (Domestic) 254

M

Foreign (Overseas) Branches/Offices 94

U

Total (Global) 8514

K

Controlling Offices
r.

Zonal Offices 18
M

Regional Offices 148

y:

Corporate Office 1
Head Office 1
B
d

Domestic Subsidiary Overseas Subsidiary

de

 BOB Financial Solutions Limited.  Bank of Baroda (Botswana) Ltd.

 BOB Capital Markets Ltd.  Bank of Baroda (Kenya) Ltd.
oa

 Baroda Global Shared Services  Bank of Baroda (Uganda) Ltd.

 Bank of Baroda (Guyana) Ltd.
nl

Limited
 Baroda BNP Paribas Asset  Bank of Baroda (New Zealand) Ltd
ow

Management India Private Limited  Bank of Baroda (Tanzania) Ltd

 Baroda BNP Paribas Trustee India  Bank of Baroda (UK) Limited
D

Private Limited
 Nainital Bank Ltd.

83
 Joint Venture Company (J.V.)
 India First Life Insurance Company Limited
 M/s India Infradebt Ltd.
Overseas Associate

)
● Indo-Zambia Bank Ltd. (Lusaka).

77
● India International Bank (Malaysia), Berhad

65
Sponsored RRBs
● Baroda-UP Gramin Bank

12
● Baroda Rajasthan Kshetriya Gramin Bank
● Baroda Gujarat Gramin Bank

K
.(A
Banks merged with Bank of Baroda - As many as 10 banks have been merged and 2
amalgamated with Bank of Baroda during its journey so far:
❖ Hind Bank Ltd (1958)

IT
❖ New Citizen Bank of India Ltd (1961)

K
❖ Surat Banking Corporation (1963)

N
❖ Tamil Nadu Central Bank (1964)
❖ Umbergaon People Bank (1964)

A
❖ Traders Bank Limited (1988)
❖ Bareilly Corporation Bank Ltd (1998) T
A
❖ Benares State Bank Ltd (2002)
W

❖ South Gujarat Local Area Bank Ltd (2004)

❖ Memon Cooperative Bank Limited (2011)
A
M

Banks amalgamated with Bank of Baroda -

U

❖ Vijaya Bank (2019)

K

❖ Dena Bank (2019)

r.
M

Board of Directors - The constitution of the Board of Directors is as follows:

y:
B
d
de
oa
nl
ow

Dr. Hasmukh Adhia Shri Sanjiv Chadha

Non-Executive Chairman Managing Director & CEO
D

84
 )
77
65
Shri Ajay K Khurana Shri Debadatta Chand
Executive Director Executive Director

12
K
.(A
IT
Shri Joydeep Dutta Roy

K
Executive Director

N
A
T
A
W
A

Shri Amit Agrawal

M

Director Smt. Parvathy V. Sundaram Shri Ajay Singhal

U

Director Director
K
r.
M
y:
B
d

Smt. Soundara Kumar Mr. Srinivasan Sridhar Shri Alok Vajpeyi

de

Shareholder Director Shareholder Director Shareholder Director

oa

People Initiatives: Bank is endowed with a competent and motivated employee base
nl

which is engaged in handling the extensive business operations of the Bank across the
ow

globe. Strategic HR interventions like, according cross border and cross cultural work
exposure to its managers, hiring diverse functional specialists to support line
D

functionaries and complementing the technical competencies of its people by imparting

conceptual, managerial and leadership skills, gave the Bank competitive advantage.

85
 People initiatives were blended with IR initiatives to create an effectively harmonious
workplace, where everyone prospered.
Bank’s HR policies and strategic human resources development initiatives have made
the Bank a breeding ground for business leaders. The Bank provided several leaders to

)
77
the industry men who went on to build other great institutions. Bank’s human resources
initiatives are given in detail in the following link. Https://Www.Bankofbaroda.In/About-

65
Us/Human-Resources

12
New Technology Platform: Bank has made substantial progress in its end-to-end
business and IT strategy project covering the Bank’s domestic, overseas and subsidiary

K
operations. All Branches, extension counters in India, overseas business and five

.(A
sponsored regional rural banks are on the core banking solution (CBS) platform.
Bank has been providing to its customers Internet Banking, viz., Baroda Connect and

IT
other facilities such as online payment of direct and indirect taxes and certain State

K
Government taxes, utility bills, rail tickets, online shopping, donation to temples and

N
institutional fee payment. Bank has a wide network of ATMs across the country and has
also launched mobile ATMs in select cities. Initiatives have been taken to provide

A
corporate customers with facilities like direct salary upload, trade finance and State Tax
T
payments etc. Bank has introduced Mobile Banking (Baroda M-connect) and prepaid
A
gift cards.
W

Bank has implemented the Global Treasury Solution in its key territories like UK, UAE,
A

Bahamas, Bahrain, Hong Kong, Singapore and Belgium. Bank has taken various
M

technological initiatives in overseas operations such as implementation of Centralized

U

SWIFT activity through Data Centre in Mumbai, Payment Messaging System with Anti
K

Money Laundering check, Anti Money laundering Compliance and Online List Matching
solution. While Bank implemented Transaction-based Internet Banking facility for its
r.

customers in Uganda, Botswana, UAE, New Zealand, Kenya, Mauritius and Seychelles,
M

a view based e-banking facility was made available in Fiji, Oman, Tanzania and UK.
y:

Marketing Initiatives: Ever since its rebranding in 2005, Bank has consistently
B

promoted its major strengths viz. large international presence; technological

advancement and superior customer service etc. Bank had introduced the sub brand
d

Baroda Next, state of the art-straight from the heart to showcase how it has utilized
de

technology to nurture long term relationships for superior customer experience. The sub
brand has been reinforced by alternate delivery channels such as internet banking,
oa

ATMs, mobile banking etc and robust delivery outfits like retail loan factories, SME loan
nl

factories, city sales office etc. Bank’s constant endeavor to strengthen its branch/ATM
network combined with well-informed staff offering personalized service at its various
ow

touch points have enhanced customer interactions and satisfaction. Thus the Bank has
firmly positioned itself as a technologically advanced customer-centric bank.
D

Corporate Social Responsibility – Bank has a long legacy and tradition of contributing
actively to the social and economic development of the communities in which it operates

86
 through various development activities in the realm of education, health, human welfare
and other social activities. Bank of Baroda always transcends from business interest
and reaches out to weaker section of society, with a view to make a meaningful
difference to them.

)
77
Bank helps in importing training to unemployed youth for gainful employment through
our 64 RESETI Centres in ten States/UT. Up to 31.03.2020 Baroda RSETIs have

65
trained 5,03,145 youth out of which 85,685 are SC, 1,11,296 ST, 42,645 minorities and
1,57,231 are other backward communities.

12
Bank has also providing knowledge sharing, problem solving and credit counselling

K
through our 87 Financial Literacy and Credit Counselling Centres (FLCC). Since

.(A
inception 30,94,565 persons have been benefited from the services of FLCCs.
Bank also undertakes other activities viz. healthcare, sanitation, education/literacy,

IT
drinking water facility, other eligible activities as listed under Schedule VII of Companies

K
Act 2013.

N
Financial Indicators –

A
Audited Financial Results (Rs. In crore) - Amalgamated Entity

Parameter
T30.09.2021 30.09.2022
A
W

Total Global Deposit 9,59,483 10,90,172

A

Total Global Advances 7,34,033 8,73,496

M

Net Profit 2,088 3,313

U

Gross NPA (%) 8.11 5.31

K

Net NPA 2.83 1.16

r.

Capital Adequacy Ratio 15.55 15.25

M

Domestic NIM (%) 2.85 3.33

y:

❖ Bank's present BPLR 12.90 % (w.e.f. 12.10.2022)

B

❖ Base Rate: 8.60 % (w.e.f. 12.10.2022)

d
de

❖ MCLR: 8.05 % (1 year MCLR w.e.f. 12.11.2022)

oa

❖ BRLLR (Baroda Repo Linked Lending Rate): 8.50 % w.e.f. 12.11.2022 (Current
nl

RBI Repo Rate i.e. 5.90 + Mark Up (2.60 %)

ow
D

About Reserve Bank of India

The Reserve Bank of India was established on April 1, 1935 in accordance with the
provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve

87
 Bank was initially established in Kolkata but was permanently moved to Mumbai in
1937. The Central Office is where the Governor sits and where policies are formulated.
Though originally privately owned, since nationalisation in 1949, the Reserve Bank is
fully owned by the Government of India. RBI has Has 27 regional offices, most of them

)
in state capitals and 04 Sub-offices (Mumbai, Kolkata, New Delhi and Chennai)

77
65
About Banks Nationalization in India

12
It was on July 19, 1969, when then prime minister Indira Gandhi announced the

K
nationalisation of 14 commercial Indian banks with deposits of over Rs 50 crores. 14

.(A
banks that were nationalised banks in 1969: Allahabad Bank, Canara Bank, United
Bank of India, UCO Bank, Syndicate Bank, Indian Overseas Bank, Bank of Baroda,
Punjab National Bank, Bank of India, Bank of Maharashtra, Central Bank of India,

IT
Indian Bank, Dena Bank and Union Bank. In 1980, six more banks were nationalised.

K
The government decided to nationalise banks to encourage businesses in order to

N
serve better the needs of the country's economy.

A
Key Rates as on 26.11.2020:

Reserve Bank of India

T
A
W

Cash Reserve Ratio to be maintained under section 42 of

4.50%
A

Reserve bank of India Act 1934

M

Statutory Liquidity Ratio to be maintained under section 24 of

U

18.00%
Banking Regulation Act 1949.
K

Repo Rate 5.90 %

r.
M

Reverse Repo Rate 3.35 %

y:

Bank Rate 6.15 %

B

Marginal Standing Facility Rate 6.15 %

d
de

Subsidiaries of RBI:
oa

1. DICGC- Deposit Insurance and Credit Guarantee Corporation of India

nl

 Insures all deposits (such as savings, fixed, current and recurring deposit)
ow

 Under DICGC Act 1961

2. BRBNMPL-Bharatiya Reserve Bank Note Mudran Private Limited
D

 Augment the production of bank notes in India

 Reserve Bank which runs two banknote printing presses in Mysuru and Salboni.
 Under the Companies Act 1956

88
 3. ReBIT- Reserve Bank Information Technology Private Limited
 Established in 2016
 ReBIT delivers and manages IT Projects of RBI
4. IFTAS- Indian Financial Technology and Allied Services
 Wholly owned subsidiary of RBI

)
77
 IFTAS has taken over the Indian Financial Network (INFINET)

65
12
Functions of RBI:

K
 Monetary authority

.(A
 Regulator and supervisor of the financial system
 Manager of foreign exchange
 Issuer of currency

IT
 Banker to the government

K
N
Repo rate: the rate at which the RBI lends money to commercial banks in the event of

A
any shortfall of funds.
T
A
Reverse repo rate: the rate at which the RBI borrows money from commercial banks
within the country, which can be used to control the money supply in the country.
W
A

MSF: rate refers to the rate at which the scheduled banks can borrow funds overnight
from RBI against government securities.
M
U

CRR: is the amount of funds that banks have to maintain with the RBI at all times.
K

SLR: is the amount of funds that banks have to maintain with the RBI at all times in the
r.

form of gold or government authorized securities (Bonds).

M
y:

Types of banks in India

B

Under the RBI Act 1934, banks were classified as Schedules banks and Non-scheduled
d

banks.
de

 Scheduled banks: Scheduled banks are those which are entered in the second
oa

scheduled of the RBI Act, 1934. The paid up capital and reserve of aggregated
value should not be less than Rs. 5 lac. All commercial banks, Regional rural
nl

banks, State cooperative banks are scheduled banks.


ow

Non-scheduled banks: Non-scheduled banks are those which are not included in
the second scheduled of the RBI Act, 1934. The paid up capital is less than Rs. 5
lac. RBI has no specific control over these banks.
D

89
 DigiSaathi
DigiSaathi is a 24-hour information hotline for digital payment goods and services. The
Platform is set up, controlled, and maintained by NPCI on behalf of a group of payment
system operators and participants (banks and non-banks) in order to help the Indian

)
77
payments industry flourish. Various payment industry participants (banks and non-
banks) have joined to create the www.digisaathi.info website, chatbot, IVR, or any

65
mobile and/or web application (collectively, the "Platform") for end customers using the
payment products/services offered by various payment industry participants to obtain

12
information about digital payment products and services, in line with the Reserve Bank

K
of India's vision. The working committee for DigiSaathi includes NPCI, State Bank of

.(A
India, Bank of Baroda, Axis Bank, GPay, Indian Banks Association (IBA) and Amazon
Pay, among others
UPI123Pay

IT
K
UPI 123PAY is an instant payment system for feature phone users who can use Unified

N
Payments Interface (UPI) payment service in a safe and secure manner. Through UPI
123PAY, feature phone users will now be able to undertake a host of transactions

A
based on four technology alternatives. They include calling an IVR (interactive voice
T
response) number, app functionality in feature phones, missed call-based approach and
A
also proximity sound-based payments. Under this payment method, there are 4
W

solutions going live - UPI payment through pre-defined IVR number, Missed Call pay,
payment functionality implemented by OEM (feature phone mobile manufacturers) and
A

Proximity sound based technology and Voice Based Payments.

M
U

E-RUPI
K

e-RUPI, a new digital payment mode under UPI is launched by Hon’ble Prime Minister
r.

on 02nd August 2021. e-RUPI is a one-time redeemable payment voucher in form of

M

QR Code or an SMS string which will be delivered to the beneficiary’s mobile phones
and can be redeemed at specific accepting centers without any credit or debit card,
y:

mobile app or internet banking. e-RUPI is basically a prepaid voucher which can be
B

issued by Banks (issuing entities) on behalf of Sponsor (any Corporate or Government

agency) to a beneficiary (any citizen) which will be delivered in form of a QR Code or
d

SMS string strictly in digital mode. The beneficiary will be able to redeem the prepaid
de

voucher at designated location with voucher acceptance infrastructure. e-RUPI should

not be confused with Digital Currency which the Reserve Bank of India is contemplating.
oa

Instead e-RUPI is a person specific, even purpose specific digital voucher.

nl

MCLR
ow

Marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below
D

which a bank is not permitted to lend. MCLR replaced the earlier base rate system to
determine the lending rates for commercial banks. RBI implemented MCLR on 1 April
2016 to determine rates of interests for loans. It is an internal reference rate for banks to

90
 determine the interest they can levy on loans. For this, they take into account the
additional or incremental cost of arranging an additional rupee for a prospective buyer.
MCLR is calculated internally by the bank on the basis of four components –Marginal
Cost of Funds, Cash Reserve Ratio (CRR), Tenure Premium and Operating Costs.

)
77
Repo linked lending rate (RLLR)

65
Banks offer loans at a certain rate of interest. If this interest rate is linked to the repo
rate, it is called repo linked lending rate (RLLR). As per an October 2019 circular from

12
RBI, banks must link their retail loans to external benchmark lending rates (E-BLR). As
a result, most banks have adopted the repo rate as their benchmark.

K
.(A
RLLR = RBI’s repo rate + Margin/spread charged by the bank
The margin or spread that the bank charges stays the same for all the loan applicants.

IT
However, based on the RBI circular, banks have the permission to charge their
borrowers risk premium. The risk premium that the banks charge to the borrower is

K
based on their risk analysis considering a particular applicant and differs from one

N
applicant to another.

A
Why was RLLR introduced? - Whenever the RBI revises the repo rate, the Marginal
T
Cost of Funds based Lending Rate or MCLR of banks gets impacted. Any cut in the
A
repo rate means that the banks can lower the MCLR and vice versa. However, it has
W

been observed that there is a time lag in the passing of repo rate cuts from banks to the
A

borrowers. In case MCLR linked interest rate, the entire repo rate cut benefit is not
M

passed on. In RLLR loans, the transmission is quicker as compared to MCLR loans.
Typically, in the case of MCLR-based loans the reset period is 12 months. When the
U

interest rate is on a downward trend, the RLLR home loans would suit borrowers.
K

Conversely, they may hurt borrowers in the rising interest rate scenario.
r.
M

Digital Banking Unit

y:

A Digital Banking Unit (DBU) is a specialized fixed point business unit / hub housing
certain minimum digital infrastructure for delivering digital banking products & services
B

as well as servicing existing financial products & services digitally, in both self-service
d

and assisted mode, to enable customers to have cost effective/ convenient access and
de

enhanced digital experience to / of such products and services in an efficient, paperless,

secured and connected environment with most services being available in self-service
oa

mode at any time, all year round. DBUs of banks will be treated as Banking Outlets
(BOs). The main objective behind establishment of Digital Banking Units (DBUs) is to
nl

provide various digital services to customers under one roof. Primary aim of the initiative
ow

is to improve customer service and to provide the additional services through self and /
or employee assisted mode. Our Bank is in process of launch of 9 Digital Banking Units
D

shortly in selected location in initial phase and thereafter extending DBU in all Regions /
Zones. For more please refer circular no. BCC:BR:114: 688 dated 13.09.2022.
Door Step Banking Services

91
 Doorstep Banking is one of the key action points of the roadmap for banking reforms
under the EASE (Enhanced Access & Service Excellence) reforms brought out by the
Department of Financial Services. PSB Alliance Doorstep Banking Service is a facility
introduced in this regard to cater to both financial and non-financial banking needs of

)
the customers of all Banks under a single umbrella.

77
Bank of Baroda is one of the member Banks under the PSB Alliance Door Step Banking

65
initiative taken by PSB Alliance through which customers can avail major Banking
transaction services at their Door Step. It shall be implemented by Door Step

12
Banking(DSB) agents in 100 major Centers across the Country for offering different

K
financial as well as non financial services.

.(A
Centralized Positive Pay System (CPPS)

IT
Through Centralized Positive Pay System, our customers can reconfirm the key details

K
of issued cheques through various Alternate Delivery Channels and through Branches.

N
Such key details will be cross checked by the CTS system with Truncated Image/details

A
of the cheque presented by other Banks in CTS clearing. Cheques will be passed
T
instantly by the passing officer of CBO, if details are matched and cheque otherwise is
A
in order i.e. Signature tallied, sufficient funds etc. Hence, customers are now not
W

required to wait for the confirmation call from the Branch/CBO on the day of
presentment of issued cheque. This facility available is for all the cheques for
A

Rs.50,000/- and above. Customers have to provide following mandatory inputs to the
M

Bank in advance for the captioned confirmation:- 1. Account Number, 2. Cheque

U

Number, 3. Cheque Amount (must be Rs.50000/- or above), 4. Payee's Name, 5.

K

Cheque Date & 6. Transaction Code (available on the right hand side of the MICR band
of the cheque)
r.
M

Who’s who in Indian Banking Industry?:

y:

1. Ministry of Finance
B

Union Finance Minister Nirmala Sitharaman

d
de

Secretary (Financial Services) Vivek Joshi

oa

2. Reserve Bank of India

Governor Shaktikanta Das

nl
ow

Deputy Governor Shri Mahesh Kumar Jain

D

Dr. M.D. Patra

Shri M. Rajeshwar Rao

92
 Shri T. Rabi Sankar

3. SEBI Chairman Ms. Madhabi Puri Buch

4 IBA Chairman A K Goel

)
77
6 SIDBI Chairman Shri Sivasubramanian Ramann

65
7 IRDA Chairman Debasish Panda

12
8 NHB Chairman Shri Sarada Kumar Hota

K
.(A
Who’s Who:

IT
Name Position

K
Smt. Droupadi Murmu President of India

N
A
Shri Jagdeep Dhankhar Vice President
Shri Narendra Modi T
Prime Minister of India
A
Om Birla Speaker of Lok Sabha
W
A

Shri Suman Bery Vice Chairman, NITI Aayog

M

Shri Rajiv Kumar Chief Election Commissioner

U

Arun Kumar Mishra Chairperson, National Human Rights Commission

K

Sh. Girish Chandra Murmu Comptroller and Auditor General of India

r.
M

Chairperson, National Commission for Backward

Dr. Bhagwan Lal Sahni
Classes
y:

Manoj Soni Chairman, UPSC

B

M.S. Swaminathan Chairman, National Commission on Farmers (NCF)

d
de

Yashvardhan K. Sinha Chief Information Commissioner (CIC)

oa

S. Kishor Chairman, SSC

nl

V K Tripathi Chairman, Railway Board

ow

Heads of Important Offices in India and World:

D

Name of the Post Name of the Officer

93
 Chairman of the Rajya Sabha Jagdeep Dhankhar (Vice President)

Chief Justice of India (CJI) Justice D.Y. Chandrachud

)
77
Lok Sabha Speaker Om Birla

65
Leader of the Lok Sabha Narendra Modi

12
Leader of the Rajya Sabha Shri Piyush Goyal

K
.(A
Pro tem Speaker Virendra Kumar Khatik

Chief Election Commissioner Rajiv Kumar

IT
K
Comptroller and Auditor General of India (CAG) Girish Chandra Murmu

N
A
Attorney General of India R. Venkataramani

Cabinet Secretary of India T

Rajiv Gauba
A
W

Principal Secretary to the Prime Minister Pramod Kumar Misra

A
M

National Security Advisor Ajit Doval

U

Home Secretary Ajay Kumar Bhalla

K
r.

Finance Secretary T. V Somanathan

M

Defence Secretary Ajay Kumar

y:
B

Foreign Secretary Vinay Mohan Kwatra

d
de

Revenue Secretary Tarun Bajaj

oa

Solicitor General of India Tushar Mehta

nl

Principal Scientific Adviser Ajay Kumar Sood

ow

Chief Economic Advisor Dr. V. Anantha Nageswaran

D

Vice-chairperson NITI Aayog Suman Bery

94
 Governor, Reserve Bank of India Shaktikanta Das

Central Vigilance Commissioner Suresh N. Patel

)
77
Chief Information Commissioner Yashvardhan Kumar Sinha

65
UN Ambassador (Permanent Representative) Ruchira Kamboj

12
Director, RAW Samant Goel

K
.(A
Director of the Intelligence Bureau (IB) Tapan Deka

Director, CBI Subodh Jaiswal

IT
K
Director-General, NIA Dinkar Gupta

N
A
Director-General, National Security Guard M.A. Ganapathy

Chairman, ISRO T
S. Somanath
A
W

Chairman, SEBI Madhabi Puri Buch

A
M

Chairperson, Atomic Energy Commission K N Vyas

U

Chairman, National Commission for Minorities Iqbal Singh Lalpura

K
r.

Chairman, National Commission for Scheduled Vijay Sampla

M

Castes
y:

Chairperson, National Commission for Women Rekha Sharma

B

Chairman, National Commission for Backward Bhagwan Lal Sahni

d
de

Classes
oa

Chairman, Telecom Regulatory Authority of P D Vaghela

India
nl
ow

Chairman, 15th Finance Commission of India N K Singh

D

Chief of the Army Staff General Manoj Pande

Chief of the Naval Staff Admiral R. Hari Kumar

95
 Chief of the Air Staff Air Chief Marshal VR Chaudhari

)
Banking terminologies:

77
 Insolvency:

65
- Insolvency is a financial state where an entity is not able to repay its debt that
it owes to its financial or operational creditors.

12
- Insolvency is a financial status: your debts are greater than the fair market

K
value of your assets & you're unable to pay your debts as they generally

.(A
become due.
- State of being not able to pay back the liabilities.
- Condition of having more debts (liabilities) than total assets.

IT
 Bankruptcy:
- Bankruptcy is a legal procedure for liquidating a business or property owned

K
by an individual, which can't fully pay its debts out of its current assets.

N
- Bankruptcy is a legal status: it's a legal procedure whereupon an insolvent

A
person files for protection from her creditors so that they cannot commence or
T
continue legal proceedings (like a wage garnishment) against her to recover
A
their debts.
W

- In return for this protection, she surrenders her assets to the bankruptcy
trustee who becomes the legal owner of her assets. The trustee then sells her
A

assets and distributes the sale proceeds amongst her creditors.

M

- And if she has no assets in the first place, her creditors end up getting
U

nothing. They then write off their debts against her as a business loss.
K

 Liquidation:
- Liquidation is a term which is given to the process of dissolving or winding up
r.

of the company. This is done by selling off all the assets of the companies
M

and paying the proceeds gathered to any of the outstanding creditors of the
company.
y:

 Basis Point: One- hundredth of 1% point normally used for indicating cost of
B

finance.

d

Diversification: The process of allocating or spreading capital investments into

de

varied assets to avoid over-exposure to risk.

 EMI: EMI or Equated Monthly Installment, as the name suggests, is one part of
oa

the equally divided monthly outgoes to clear off an outstanding loan within a
stipulated time frame.
nl

 Mortgage: A legal agreement that conveys the conditional right of ownership on

ow

an asset or property by its owner to a lender as security for a loan

D

96
 Banking Abbreviations:

ACS Automated Clearing System IBA Indian Banks Association

ADR American Depository Receipt ICAAP Internal Capital Adequacy
AEPS Aadhar Enabled Payment System Assessment Process

)
77
ALCO Asset Liability Committee IFSC Indian Financial System Code
ALM Asset Liability Management KCC Kisan Credit Card

65
AMFI Association of Mutual Funds in India KVP Kisan Vikas Patra
ANBC Adjusted Net Bank Credit KYC Know Your Customer

12
ASBA Application Supported by Blocked LRS Liberalised Remittance Scheme

K
Amount LTCG Long Term Capital Gains

.(A
ATM Automated Teller Machine MCLR Marginal Cost of Lending Rate
BBPS Bharat Bill Payment System IMPS Immediate Mobile Payment Service
BHIM Bharat Interface for Money MICR Magnetic Ink Character Recognition

IT
BIS Bank of International Settlements MUDRA Micro Units Development and
BPLR Benchmark Prime Lending Rate Refinance Agency

K
BSBDA Basic Savings Bank Deposit NABARD National Bank for Agriculture and

N
Account Rural Development

A
CAGR Compound Annual Growth Rate NACH National Automated Clearing House
CASA Current Account Saving Account T
NDTL Net Demand Time Liabilities
A
CBS Core Banking Solutions NBFC Non Banking Finance Companies
CIBIL Credit Information Bureau of India Ltd NEFT National Electronic Funds Transfer
W

CII Confederation of Indian Industries NPA Non Performing Assets

A

CRAR Capital to Risk- Weighted Assets NPCI National Payments Corporation of

M

Ratio India
U

CRILC Central Repository of Information on NPS National Pension Scheme

K

Large Credits NRE Non Resident External Account

CRR Cash Reserve Ratio NRO Non Resident Ordinary Account
r.

CSR Corporate Social Responsibility PACS Primary Agricultural Credit Societies

M

CTS Cheque Truncation System PCA Prompt Corrective Action

CVV Card Verification Value RTGS Real Time Gross Settlement
y:

DEAF Depositor Education and Awareness RWA Risk Weighted Assets

B

Fund SARFAESI Securitisation and

DICGC Deposit Insurance and Credit Reconstruction of Financial Assets and
d

Guarantee Corporation of India Enforcement of Security

de

DRAT Debt Recovery Appellate Tribunal Interest Act

oa

DSCR Debt Service Coverage Ratio SGB Sovereign Gold Bond

ECGC Export Credit Guarantee Corporation SFMS Structured Financial Messaging
nl

ECS Electronic Clearing System Services

EMI Equated Monthly Installment SHG Self Help Group
ow

EPS Earnings Per Share UPI Unified Payments Interface

FDI Foreign Direct Investment USSD Unstructured Supplementary
D

FEMA Foreign Exchange Management Act Services Data

FERA Foreign Exchange Regulation Act WMA Ways and Means Advances
WPI Wholesale Price Index

97
 Schemes Related to Banking:

Pradhan Mantri Jan-Dhan Yojana (PMJDY) - Pradhan Mantri Jan-Dhan Yojana

(PMJDY) is National Mission for Financial Inclusion to ensure access to financial

)
services, namely, a basic savings & deposit accounts, remittance, credit, insurance,

77
pension in an affordable manner. Under the scheme, a basic savings bank deposit
(BSBD) account can be opened in any bank branch or Business Correspondent (Bank

65
Mitra) outlet, by persons not having any other account.

12
K
Benefits under PMJDY

.(A
 One basic savings bank account is opened for unbanked person.
 There is no requirement to maintain any minimum balance in PMJDY accounts.
 Interest is earned on the deposit in PMJDY accounts.

IT
 Rupay Debit card is provided to PMJDY account holder.

K
 Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY

N
accounts opened after 28.8.2018) is available with RuPay card issued to the

A
PMJDY account holders.
 An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
T
 PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri
A
Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana
W

(PMSBY), Atal Pension Yojana (APY), Micro Units Development & Refinance
A

Agency Bank (MUDRA) scheme.

M

Atal Pension Yojana - Atal Pension Yojana (APY) is a Government of India Scheme
U

administered by PFRDA through NPS. The objective of the APY is to encourage the
K

persons to save small amounts during their productive years to enable them to draw a
r.

pension in old age. APY is based on defined benefit for providing fixed minimum
M

pension ranging from Rs 1000 to Rs 5000 p.m.

y:

Salient features
B
d

 Under the APY, a fixed monthly pension ranging between Rs. 1000 to Rs. 5000
de

for the subscribers, if he/she joins and contributes between the age of 18 years
and 40 years, depending on their contributions.
oa

 The benefit of fixed minimum pension is guaranteed by the GoI.

nl

 GoI will also co-contribute 50% of the contribution amount or Rs. 1000 per
ow

annum, whichever is lower.

 GoI co-contributes to each eligible subscriber’s account, for a period of 5 years,
D

i.e., from 2015-16 to 2019-20. who joins on or before 31st December 2015.
 GOI co-contribution is available for the subscirbers who are not covered under
any statutory social security scheme and are not income tax payers

98
 Pradhan Mantri Mudra Yojana - Pradhan Mantri MUDRA Yojana (PMMY) is a scheme
launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10
lakh to the non-corporate, non-farm

)
small/micro enterprises. These loans are

77
classified as MUDRA loans under
PMMY. These loans are given by

65
Commercial Banks, RRBs, Small

12
Finance Banks, Cooperative Banks,
MFIs and NBFCs. The borrower can

K
approach any of the lending institutions

.(A
mentioned above or can apply online
through this portal. Under the aegis of
PMMY, MUDRA has created three

IT
products namely 'Shishu', 'Kishore' and

K
'Tarun' to signify the stage of growth /
development and funding needs of the

N
beneficiary micro unit / entrepreneur and

A
also provide a reference point for the
next phase of graduation / growth. T
A
W

NEWS & UPDATES

A
M

 Banking News (Domestic and International) can be accessed at Baroda Gurukul

U

at the following path:

K

Baroda Gurukul > Social Learning > Digital Library > News Flash Folder
r.
M

News Flash also covers Knowledge Bite which are Banking (or related) terms helpful
to common banker.
y:
B
d

 Gist of Circulars (HO, BCC and RBI) can be accessed at Baroda Gurukul at the
de

following path:
oa

Baroda Gurukul > Social Learning > Digital Library > Gist of Circulars folder
nl
ow

Other suggested reads – FinTalk (https://www.bankofbaroda.in/newsletter-fintalk-

D

archive.htm) and Bank of Baroda Press Release at

https://www.bankofbaroda.in/media/press-releases

99
 RURAL BANKING
“RURAL & AGRICULTURE” BUSINESS SEGMENT

Agriculture occupies a very important place in the Indian Economy. It supports various
sectors of the country by providing food grains to the growing population, supplies raw
material to industries, generates purchasing power and demand for consumer goods in

)
rural areas and also plays a significant role in exports. Agricultural credit is a critical

77
resource support to farm sector in India, given the dependence of a large section of its

65
population on agricultural activities. In the recent times, multiple challenges have led to
stress in the agricultural sector, which also got manifested in episodes of untimely

12
deaths of distressed farmers. Farm loan waiver is often suggested as a possible
solution to such distress situations.

K
.(A
Agriculture credit is an important prerequisite for agricultural growth. Agricultural
policies have been reviewed from time to time to provide adequate and timely
availability of finance to this sector. Rural credit system assumes importance because

IT
for most of the Indian rural families, savings are inadequate to finance farming and other

K
economic activities. This coupled with the lack of simultaneity between income

N
realization and expenditure and lumpiness of agricultural capital investments. The
A
institutional credit system is critical for agricultural development and its role has further
increased in the liberalized economic environment. In India a multi-agency approach
T
comprising co-operative banks, scheduled commercial banks and regional rural banks
A

(RRBs) has been followed to allow credit to agricultural sector.

W
A

Demand for credit to meet requirements of agriculture has increased considerably

M

owing to use of modern technology, increase in use of fertilizers, insecticides and

U

pesticides, increase in irrigation facilities, and increase in coverage under high yielding
K

varieties programme. Besides, it is also necessary to encourage activities allied to

agriculture for increasing the income of poor farmers and providing full employment to
r.

them. In view of high importance of agriculture in Indian economy, efforts are being
M

made by Reserve Bank of India, NABARD, Public Sector Banks and Government
Agencies to increase the flow of bank credit to agriculture.
y:
B

We are having a very specific business segment “Rural & Agri Banking” which is
d

contributing significantly in accelerating the pace of rural development by providing

de

finance to farmers by way of providing various agriculture products. We extend loans

for agricultural activities and a host of services for farmers well-tuned to the rural
oa

market, and aim to make a Self-Reliant Rural India.

nl

“Rural & Agri. Banking” segment of our Bank constitutes mainly of the following sub
ow

segments:
 Agriculture Finance
D

 Micro finance (SHGs/JLGs etc.)

 RRBs sponsored by our Bank

100
 PRIORITY SECTOR LENDING – GENERAL

Evolution of Agricultural Finance in India and Policy Milestones

Sr. Year Particulars

No.
1. 1967 The Scheme of social control over banks was initiated in December 1967,
to ensure equitable distribution of credit
2. 1968 The National Credit Council was set up mainly to periodically assess the

)
demand for bank credit from various sectors of the economy and to

77
determine the priorities for grant of loans and advances having regard to
the availability of resources

65
3. 1974 Public sector banks were advised that their priority sector lending should

12
reach a level of not less than one-third of their outstanding credit by March
1979

K
4. 1978 Private Sector banks were also advised to and lend at least one-third of

.(A
their total advances to the priority sector by the end of March 1980
5. 1980 It is decided that banks should raise the proportion of their advances to
priority sector to 40 per cent by March 1985.

IT
6. 1982 Working Group (Shri A. Ghosh) constituted by RBI, recommended

K
modifications in sub targets of different segment of Priority Sector and

N
weaker sections.
7. 1989
A
Reserve Bank introduced the service area approach (SAA) and Annual
Credit Plan (ACP) system as tools for reaching out to the rural areas.
T
8. 1995 GoI established the Rural Infrastructure Development Fund (RIDF) with
A

NABARD.
W

9. 1998 Kisan Credit Card (KCC) was introduced to provide hassle free credit to
A

farmers.
M

10. 2006- Pursuant to the budget announcement, the Union Government introduced
07 the interest subvention scheme.
U
K

The Business Correspondents (BCs) and Business Facilitators (BFs) were

r.

rolled out for the first time by the Reserve Bank of India.
M

11. 2009- Introduction of the prompt repayment incentive (PRI) of 3 per cent under
10 the Interest Subvention Scheme, for farmers who repaid their loans on or
y:

before the due date to inculcate repayment habits.

B

12. 2012 Priority Sector Lending (PSL) guidelines were revised by the Reserve
Bank to widen the eligible activities
d

13. 2015 Based on the recommendation of Internal Working Group PSL guidelines
de

revamped-
 The distinction between direct and indirect agricultural credit was
oa

dispensed with.
nl

 A sub-target of 8% of ANBC or CEOBE, whichever is higher,

prescribed for Small & Marginal Farmers.
ow

 Focus shifted from ‘credit in agriculture’ to ‘credit for agriculture.

14. 2016 Priority Sector Lending Certificate (PSLC) introduced by RBI to incentivize
D

the banks towards lending to priority sector.

 PSLC General
 PASLC Agriculture
 PSLC Micro
 PSLC SF/MF

101
 15. 2020 Revised PSL guidelines with emerging national priorities and to encourage
and support environment friendly lending policies to help achieve
Sustainable Development Goals (SDGs).

Based on Recommendations made by the ‘Expert Committee on Micro,

Small and Medium Enterprises (Chairman: Shri U.K. Sinha) and the
‘Internal Working Group to Review Agriculture Credit’ (Chairman: Shri M.
K. Jain).

Categories under priority sector

1. Agriculture 2. Micro, Small and Medium 3. Export Credit 4. Education

)
77
Enterprises
5. Housing 6. Social Infrastructure 7. Renewable 8. Others

65
Energy
Targets /Sub-targets for Priority sector

12
The targets and sub-targets set under priority sector lending for all scheduled

K
commercial banks operating in India are furnished below:

.(A
Categories Domestic scheduled Foreign banks with less than 20
commercial banks and branches
foreign banks with 20

IT
branches and above
Total Priority 40 per cent of Adjusted Net Bank 40 per cent of ANBC (as computed

K
Sector Credit [computation of ANBC is below) or CEOBE whichever is

N
given below] or Credit Equivalent higher; out of which up to 32% can
A
Amount of Off-Balance Sheet be in the form of lending to Exports
T
Exposure, whichever is higher. and not less than 8% can be to any
A

other priority sector

W

Agriculture 18 per cent of ANBC or Credit Not applicable

Equivalent Amount of Off-
A

Balance Sheet Exposure,

M

whichever is higher.
U

Out of which a target of 10

K

percent# is prescribed for Small

and Marginal Farmers (SMFs).
r.

Micro 7.5 per cent of ANBC or Credit Not applicable

M

Enterprises Equivalent Amount of Off-

y:

Balance Sheet Exposure,

whichever is higher
B

Advances to 12 percent# of ANBC or Credit Not applicable

d

Weaker Sections Equivalent Amount of Off-

de

Balance Sheet Exposure,

whichever is higher
oa

# Revised targets for weaker sections will be implemented in a phased manner as indicated
below
nl

ANBC- Adjusted Net Bank Credit

ow

CEOBE- Credit Equivalent Amount of Off-Balance Exposure

D

Financial Year Small and Marginal Farmer Target Weaker Sections Target
2020-21 8% 10%
2021-22 9% 11%
2022-23 9.5% 11.5%
2023-24 10% 12%
All domestic banks and foreign banks with more than 20 branches are directed to
102
 ensure that the overall lending to Non-Corporate Farmers (NCFs) does not fall below
the system-wide average of the last three years’ achievement. The applicable target
for lending to the non-corporate farmers for FY 2022-23 will be 13.78% of ANBC or
CEOBE whichever is higher. All efforts should be made by banks to increase the
Farm Credit) higher than the NCF target.

DESCRIPTION OF ELIGIBLE CATEGORIES UNDER PRIORITY SECTOR

1. AGRICULTURE:
The lending to agriculture sector will include (i) Farm Credit (Agriculture and Allied

)
77
Activities), (ii) Agriculture Infrastructure and (III) Ancillary Activities
I. Farm Credit Individual Farmers:

65
Loans to individual farmers [including Self Help Groups (SHGs) or

12
Joint Liability Groups (JLGs) i.e. groups of individual farmers, provided

K
banks maintain disaggregated data of such loans] and Proprietorship

.(A
firms of farmers, directly engaged in Agriculture and Allied Activities,
viz. dairy, fishery, animal husbandry, poultry, bee-keeping and
sericulture. This will include:

IT
i. Crop loans including loans for traditional/non-traditional

K
plantations, horticulture and allied activities.

N
A
ii. Medium and long-term loans for agriculture and allied activities
T
(e.g. purchase of agricultural implements and machinery and
A

developmental loans for allied activities).

W

iii. Loans for pre and post-harvest activities viz. spraying, harvesting,
A

grading and transporting of their own farm produce

M
U

iv. Loans to distressed farmers indebted to non-institutional lenders.

K

v. Loans under the Kisan Credit Card Scheme.

r.
M

vi. Loans to small and marginal farmers for purchase of land for
y:

agricultural purposes.
B

vii. Loans against pledge/hypothecation of agricultural produce

d

(including warehouse receipts) for a period not exceeding 12

de

months subject to a limit up to ₹75 lakh against NWRs/eNWRs and

up to ₹50 lakh against warehouse receipts other than
oa

NWRs/eNWRs.
nl

viii. Loans to farmers for installation of stand-alone Solar Agriculture

ow

Pumps and for solarisation of grid connected Agriculture Pumps.

D

ix. Loans to farmers for installation of solar power plants on

barren/fallow land or in stilt fashion on agriculture land owned by
farmer.

Corporate Farmers, FPO/FPC of Individual Farmers, Partnership

Firms and Co-Operatives of Farmers engaged in Agriculture and
Allied Activities
103
 a. Loans for the following activities will be subject to an aggregate
limit of Rs. 2 crore per borrowing entity:
i. Crop loans to farmers which will include traditional/non-
traditional plantations and horticulture and loans for allied
activities.
ii. Medium and long-term loans for agriculture and allied
activities (e.g. purchase of agricultural implements and
machinery and developmental loans for allied activities).
iii. Loans for pre and post-harvest activities viz. spraying,
harvesting, grading and transporting of their own farm
produce.

)
77
b. Loans up to ₹75 lakh against pledge/hypothecation of agricultural

65
produce (including warehouse receipts) for a period not exceeding
12 months against NWRs/eNWRs and up to ₹50 lakh against

12
warehouse receipts other than NWRs/eNWRs.

K
.(A
c. Loans up to Rs. 5 crore per borrowing entity to FPOs/FPCs
undertaking farming with assured marketing of their produce at a
pre-determined price.

IT
II. Agriculture i) Loans for construction of storage facilities (warehouse, market
Infrastructure yards, godowns and silos) including cold storage units/cold storage

K
chains designed to store agriculture produce/products,

N
irrespective of their location.
A
ii) Soil conservation and watershed development.
T
iii) Plant tissue culture and agri-biotechnology, seed production,
A

production of bio-pesticides, bio-fertilizer, and vermi composting.

W

iv) Loans for construction of oil extraction/ processing units for

production of bio-fuels, their storage and distribution infrastructure
A

along with loans to entrepreneurs for setting up Compressed Bio

M

Gas (CBG) plants.

U
K

For the above loans, an aggregate sanction limit of Rs. 100 Crore per
from the banking system, will apply.
r.

III. Ancillary i) Loans up to Rs. 5 crore to co-operative societies of farmers for

M

Service purchase of the produce of members.

ii) Loans up to Rs. 50 crore to Start-ups, as per definition of Ministry
y:

of Commerce and Industry, Govt. of India that are engaged in

B

agriculture and allied services.

iii) Loans for Food and Agro-processing up to an aggregate
d
de

sanctioned limit of Rs. 100 crore per borrower from the banking
system.
oa

iv) Outstanding deposits under RIDF and other eligible funds with
NABARD on account of priority sector shortfall.
nl

v) Loans for setting up of Agri-clinics and Agri-business centres.

ow

vi) Loans to Custom Service Units managed by individuals,

institutions or organizations who maintain a fleet of tractors,
bulldozers, well-boring equipment, threshers, combines, etc., and
D

undertake farm work for farmers on contract basis.

vii) Bank loans to Primary Agricultural Credit Societies (PACS),
Farmers’ Service Societies (FSS) and Large-sized Adivasi Multi-
Purpose Societies (LAMPS) for on-lending to agriculture.
viii) Loans sanctioned by banks to MFIs for on-lending to agriculture
sector as per the conditions specified for Bank loans to MFIs
(NBFC-MFIs, Societies, Trusts, etc.) for on-lending.
104
 ix) Loans sanctioned by banks to registered NBFCs (other than MFIs)
as per conditions specified for Bank loans to NBFCs for on-lending.

Small & Marginal Farmers

 Marginal Farmers: Farmers with landholding up to 1 Ha.
 Small Farmers: Farmers with landholding of more than 1 Ha. and up to 2 Ha.

Micro, Small and Medium Enterprises (MSMEs)

The definition of MSMEs will be as per Government of India (GoI), Gazette Notification
S.O. 2119 (E) dated June 26, 2020 read with circular RBI/2020-2021/10 FIDD.MSME &

)
77
NFS.BC.No.3/06.02.31/2020-21 read with FIDD.MSME & NFS. BC. No.4/06.02.31/2020-
21 dated July 2, 2020, August 21, 2020 respectively on ‘Credit flow to Micro, Small and

65
Medium Enterprises Sector’ and updated from time to time. Further, such MSMEs should

12
be engaged in the manufacture or production of goods, in any manner, pertaining to any
industry specified in the First Schedule to the Industries (Development and Regulation)

K
Act, 1951 or engaged in providing or rendering of any service or services. All bank loans

.(A
to MSMEs conforming to the above guidelines qualify for classification under priority
sector lending.

IT
Export Credit: Export credit under agriculture and MSME sectors are allowed to be
classified as PSL in the respective categories viz. agriculture and MSME.

Domestic banks
Incremental export credit
K
N
Foreign banks with 20 Foreign banks with less
A
branches and above than 20 branches
T
Incremental export credit Export credit upto 32
A

over corresponding date of over corresponding date of percent of ANBC or Credit

W

the preceding year, up to 2 the preceding year, up to 2 Equivalent Amount of Off-

per cent of ANBC or percent of ANBC or Credit Balance Sheet Exposure,
A

CEOBE whichever is Equivalent Amount of Off- whichever is higher.

M

higher, subject to a Balance Sheet Exposure,

U

sanctioned limit of up to Rs. whichever is higher.

K

40 crore per borrower.

r.

Education
M

Loans to individuals for educational purposes, including vocational courses, not

y:

exceeding Rs. 20 lakh will be considered as eligible for priority sector classification. Loans
currently classified as priority sector will continue till maturity.
B
d

Housing
de

Bank loans to Housing sector as per limits prescribed below are eligible for priority sector
classification:
oa

Purpose of Loan Centre Overall Cost Loan Amount

For Metropolitan Rs. 45 Lakh Rs. 35 Lakh
nl

purchase/construction of Other Centres Rs. 30 Lakh Rs. 25 Lakh

ow

a dwelling unit
For Repairs to damage Metropolitan As above Rs. 10 Lakh
D

units
Other Centres As above Rs. 6 Lakh

Social infrastructure
Purpose Loan Amount
Setting up schools, drinking water facilities and sanitation Up to Limit of Rs. 5 Crore
facilities including construction/ refurbishment of household per borrower
toilets and water improvements at household level, etc.
105
 For building health care facilities including under ‘Ayushman Up to Limit of Rs. 10
Bharat’ in Tier II to Tier VI centres. Crore per borrower

Renewable Energy
Purpose Loan Amount
For purposes like solar based power generators, biomass Up to Limit of Rs. 30
based power generators, wind mills, micro-hydel plants and Crore per borrower
for non-conventional energy based public utilities viz. street Up to Limit of Rs. 10
lighting systems, and remote village electrification Lakh per borrower for
individual households

)
77
Others
Purpose Loan Amount

65
Loans provided directly by banks to individuals and -

12
individual members of SHG/JLG satisfying the criteria as
prescribed in Master Direction on Regulatory Framework for

K
Microfinance Loans Directions, dated March 14, 2022.

.(A
SHG/JLG for activities other than agriculture or MSME, viz., Not exceeding Rs. 2
loans for meeting social needs, construction or repair of Lakh
house, construction of toilets or any viable common activity

IT
started by the SHGs

K
Loans to distressed persons to prepay their debt to non- Not exceeding Rs. 1

N
institutional lenders. Lakh
Start-ups, as per definition of Ministry of Commerce and
A Up to Rs. 50 Crore
Industry, Govt. of India that are engaged in activities other
T
than Agriculture or MSME.
A
W

Weaker Sections
Priority sector loans to the following borrowers will be considered under Weaker Sections
A

category:-
M

No. Category
U

1. Small and Marginal Farmers

K

2. Artisans, village and cottage industries where individual credit limits do not
r.

exceed Rs. 1 lakh

M

3. Beneficiaries under Government Sponsored Schemes such as National Rural

Livelihoods Mission (NRLM), National Urban Livelihood Mission (NULM) and
y:

Self Employment Scheme for Rehabilitation of Manual Scavengers (SRMS)

4. Scheduled Castes and Scheduled Tribes
B

5. Beneficiaries of Differential Rate of Interest (DRI) scheme

d

6. Self Help Groups

de

7. Distressed farmers indebted to non-institutional lenders

8. Distressed persons other than farmers, with loan amount not exceeding Rs. 1
oa

lakh per borrower to prepay their debt to non-institutional lenders

nl

9. Individual women beneficiaries up to Rs. 1 lakh per borrower

10. Persons with disabilities
ow

11. Minority communities as may be notified by Government of India from time to

time
D

12. Overdraft availed by PMJDY account holders as per limits and conditions
prescribed by Department of Financial Services, Ministry of Finance

Priority Sector Lending Certificates

The outstanding priority sector lending certificates 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
106
 Reserve Bank of India guidelines on Priority Sector Lending Certificates issued vide
Circular FIDD.CO.Plan.BC.23/04.09.001/2015-16 dated April 7, 2016.

Monitoring of Priority Sector Lending targets

To ensure continuous flow of credit to priority sector, the compliance of banks will be
monitored on ‘quarterly’ basis. The data on priority sector advances has to be furnished
by banks at quarterly and annual intervals as per the reporting formats prescribed vide
Circular FIDD.CO.Plan.BC.No.17/04.09.001/2016-17 dated October 6, 2016 on Priority
Sector Lending – Revised Reporting System.

Non-achievement of Priority Sector targets

)
77
Scheduled Commercial Banks having any shortfall in lending to priority sector shall be
allocated amounts for contribution to the Rural Infrastructure Development Fund (RIDF)

65
established with NABARD and other Funds with NABARD/NHB/SIDBI/ MUDRA Ltd. as
decided by the Reserve Bank from time to time. The achievement will be arrived at the

12
end of financial year based on the average of priority sector target /sub-target

K
achievement as at the end of each quarter.

.(A
Non-achievement of priority sector targets and sub-targets will be taken into account while
granting regulatory clearances/approvals for various purposes.

IT
K
BARODA KISAN CREDIT CARD

N
SCHEME CODE CC 003- For Short Term Crops
A
IN FINACLE CC 025- For Long Term crops
T
OBJECTIVES/ Production Line of Credit:
A

PURPOSE Kisan Credit Card Scheme aims at providing adequate and timely credit
W

support from the banking system under a single window to the farmers for
A

their cultivation & other needs as indicated below:

M

a) To meet the short term credit requirements for cultivation of crops

U

including fodder crops.

K

b) Post-harvest expenses.
r.

c) Produce marketing loan.

M

d) Consumption requirements of farmer household.

e) Working capital for maintenance of farm assets and activities allied to
y:

agriculture, like dairy, poultry, fisheries, piggery, sericulture etc.

B

f) Investment credit requirement for agriculture and allied activities.

ELIGIBILITY  All farmers –individuals/joint borrowers who are owner cultivators.
d

 Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers.

de

 Recorded / registered Share croppers and tenant farmers who are

oa

cultivating crops for a period not less than five years.

 The individual tenant farmers / share croppers cultivating crops on oral
nl

lease basis who are resident of the village at least for a period of three
years continuously and cultivating lands and raising crops for a
ow

reasonably long period, but not less than three years could also be issued
BKCC with a farm credit limit upto Rs.10000/- in general and in
D

exceptional cases not exceeding Rs.25000/-as approved by our Board.

 Now, Staff & its family members i.e. spouse, unmarried children & mother,
father is eligible for getting loan in this scheme if inherited agriculture land
stands in their name. The Power of sanctioning and PSR will be vested
as under;

S.No Branch/office Sanctioning PSR

107
 Authority Authority
1 Staff at Branches Dy. Regional Regional Head
Manager of the
Region
2 Staff at Regional Regional Manager Zonal Head
office and other of the Region
offices reported to
regional head (LDMs,
RSETIs
etc.)

)
3 Staff at Zonal Office Dy. Zonal Head of Zonal Head

77
and other offices Zone

65
established in that
particular Zone like

12
Zonal Inspection
Centre, Training

K
Centre, RRBs etc.)

.(A
4 Staff at Head Office or Dy. Zonal Head / Zonal Head /
Corporate Office Zonal Head of GM Rural &
Concerned Zones Agri Banking

IT
where the and CSR as

K
financing branch is the case may

N
situated be.
A
*One scale higher norms must be followed in case of sanctioning and
PSR.
T
Age Criteria Minimum 18 years - Maximum up to 70 years as on the date of availing facility
A

(if the age of land holder exceeds 70 years, in such case the legal heir to be
W

made co borrowers).
A

CROPS KCC accounts are bifurcated into short term and long term crops.
M

GROWN / CROP (i) Short term crops are further bifurcated into
SEASONS 1. Mono crop (Kharif / Rabi): farmer cultivates only one short duration crop
U

in a year during Kharif/Rabi season, it is called as Mono Crop.

K

2. Double / Multiple crop: farmer cultivates two or more crops in a year, it

r.

is called Double or Multiple Crops.

M

3. Single crop for 12 months: farmer grows only one crop in a year then it
is called as Single crop for 12 months. Example (a): If a farmer request for
y:

loan for Banana cultivation which has got a longer harvesting period upto 12
B

then it is called as Single crop for 12 months.

(ii) Long Term Crop: The crops with crop season longer than one year are
d

long duration crops. Example: If a farmer cultivates Sugarcane crop whose

de

duration is more than 12 months, it is called as long term crop. Example

Sugarcane
oa

QUANTUM OF Loan Amount

nl

LOAN & Minimum: Rs. 5000/-

MARGIN Maximum: No Ceiling
ow

Margin:
D

For Crop Loans no separate margin need to be insisted as the margin is in

built while fixing the Scale of Finance.
TYPE OF  Production Line of Credit in the nature of revolving Cash Credit and
FACILITY would provide for any number of withdrawals and repayments within the
limit.
 Investment Line of Credit: Demand/ Term Loan

108
 ASSESSMENT PPRODUCTION LINE OF CREDIT
OF LIMIT All Farmers other than Marginal Farmers:
Scale of finance as decided by DLTC
X
Extent of area cultivated
______________________________
= Crop Production Limit
+
25 % of limit towards Farm Maintenance
+

)
15% / 25% / 35% of limit towards Family Maintenance (Max. Rs. 1 Lakh)

77
+
Premium for Crop Insurance and or accident insurance including PAIS,

65
health and asset insurance.

12
___________________________________
= Production Line of Credit

K
.(A
First year Limit for crop cultivation arrived at as above plus 10% of the limit
towards cost escalation/increase in scale of finance for every successive
year (2nd, 3rd, 4th and 5th year) i.e. for 5 years is to be provided.

IT
K
Branches will pay interest at Savings Bank rate on the credit balance if any

N
maintained by the borrower in the situation of surplus with him in his
production credit account.
A
T
ASSESSMENT OF INVESTMENT LINE OF CREDIT
A

Quantum of finance for investment credit may be decided as per the needs
W

expressed by the farmer for various investment and other purposes, subject
A

to following:
M

1. Farm Income 6 times of net annual income

U

(Farm Receipts- Expenses incurred)

K
r.

OR
M

3 times of total annual farm receipts/value of

y:

crops
B

(Anticipated from the farm, taking into

consideration the type of crops, area under
d

cultivation, etc.)
de

Plus
Other income / 3 times of net anticipated annual income/profit
oa

income from allied from economic Activities /allied activities

nl

activities and (existing and proposed to be undertaken) /salary

salary income, if income if any.
ow

any.
OR
D

2. Value of Security 75% of value of land mortgaged as collateral

security and 100% of value of other securities
like assignment of LIC Policy (surrender value),
pledge of KVPs/ NSCs/Bank’s TDR/Gold
Ornaments etc.
Whichever is less out of 1. Farm Income and 2. Value of Security

109
 Category of Parameter Category of Farmer
Farmer KCC Green KCC Silver KCC Gold
No. of years New and existing More than 3 More than 5
of agri borrower years and up to years with
relationship dealing with us for 5 years excellent
less than 3 years repayment
history.
Family 15% 25% 35%
Maintenance
(Max. Rs. 1

)
Lakh)

77
Farm 25% 25% 25%
Maintenance

65
Interest  As per RBI guidelines, Interest Subvention @2% for limits up to Rs 3 lacs,

12
Subvention & is available from the date of disbursement up to the repayment due date
Prompt (ISS) (not exceeding 12 months) or the actual date of repayment by the farmer,

K
Repayment whichever is earlier.

.(A
Incentive (PRI)
 As per RBI guidelines, Additional interest subvention to farmers for
prompt repayment (Currently @3%) is also available from the date of

IT
disbursement up to the actual date of repayment which should be on or
before repayment due date, subject to a maximum period of one year

K
from the date of disbursement.

N
A
Total Limit made under Production line of credit must be bifurcated into
crop loan and consumption limit in CBS System and accordingly interest
T
to be charged and subvention is only to be claim on crop loan component
A

only not and on consumption limit.

W

ISSUE OF ATM  It is mandatory for issuance of ATM enabled KCC RuPay cards to all
A

ENABLED KCC eligible KCC holders.

RUPAY CARDS
M

 It should be highlighted that the card has no issuance charges and also
(BKRC)
U

the added advantage of personal accident insurance cover of Rs.1.00 lac

K

(free of cost), offered by Rupay.

 As per RBI directives, request from the customer is mandatory for issuing
r.

debit card in the account.

M

No Dues RBI has dispensed with obtaining No Due Certificate (NDC) from individual
Certificate borrowers, including SHGs, JLGs in Rural and Semi Urban areas for all
y:

types of loans.
B

The guidelines to be adopted for due diligence are as under-

d
de

Loan Particulars Due diligence procedure

For all loans amount up to Self-declaration/Affidavit by the applicant
oa

Rs.1 lac
For all loan amounts Credit history check/obtaining credit report
nl

more than Rs. 1 lac and from credit information companies like
ow

up to Rs.5 lacs CIBIL/Equifax/Experian/Highmark etc. with

whom Bank has/will tie-up.
D

For loans above Rs. 5 In addition to credit history check as mentioned

lacs above, information search by writing to all other
Banks operating in the center where our
branch is functioning and the applicant’s
residence/village, with an auto deadline
(Maximum 7 days). The branch should send
the letter by Regd.Post.

110
 IRAC Norms  The extant guidelines for income recognition, asset classification and
provisioning will continue to apply for loans granted under Kisan Credit
Card Scheme. Accordingly, BKCC accounts will become ‘overdue’, if the
principal and interest remains unpaid on due date of payment
 The ‘overdue’ BKCC loans will be classified as NPA if it remains overdue
for a period of two crop seasons in case of short duration crops (Maximum
24 months from the repayment due date) and one crop season in case of
long duration crops ( Maximum 18 months from the repayment due date),
as the case may be.
 The crops with crop season longer than one year are long duration crops

)
77
and crops which are not long duration crops will be treated as short
duration crops.

65
 Depending upon the duration of crops raised by the agriculturists, NPA

12
norms would also be made applicable to agriculture term loans availed by
the agriculturists.

K
As per RBI guidelines the crop season for each crop, which means the

.(A
period up to harvesting and marketing of the crops raised, would be
determined by the State Level Bankers’ Committee in each State. In
absence of any specific guidelines by SLBC the bank’s guidelines will be

IT
followed by branches in state.

K
Other Important The revenue records when obtained first time, it should not be older than 6

N
Points (Six) months. Thereafter fresh revenue records should not be insisted upto 3
A
years unless on local inquiry there is an addition / decrease in land area /
survey number or any adverse change.
T
A

Since the limit is fixed by taking into account the requirement of the farmer on
W

annual basis for all seasons and all farm activities and there is no restriction
A

on number of transactions in the production credit account owing to mono

M

crop problems, the farmer may be allowed to avail loan for the next crop
before liquidation of the existing dues.
U

PMFBY Pradhan Mantri Fasal Bima Yojana

K

PMFBY replaced the earlier schemes viz; National Agriculture Insurance

r.

Scheme (NAIS) & Modified National Agriculture Insurance Scheme (MNAIS).

M

Farmers growing the notified crops in the notified areas are eligible for
y:

coverage. However, farmers should have insurable interest for the notified/
B

insured crops. Farmers are also required to essentially submit Aadhaar

Number and declaration about the crop sown/ crops intended to be sown.
d
de

The scheme will work on an “Opt-out” mode for the existing loanee farmers.
oa

The farmers can choose not to participate in the scheme, by giving a signed
declaration, mentioning that the farmer does not want to participate in the
nl

scheme any time during the year for the upcoming season but at least 7 days
ow

before the enrolment cut-off date.

D

Farmers, who do not give any signed declaration for opting out in the
concerned branch, need to be compulsorily enrolled for the scheme.

The loanee farmer who has opted out from the schemes will not be
considered by branch for coverage under crop insurance for all his crops and
areas and till the time farmer submits an application for Opting in, irrespective
of number of seasons or years.

111
 Maximum Insurance
Sr. charges payable by
Season Crops
No. farmer (% of Sum
Insured)
1 Kharif All foodgrain and Oilseeds 2.0% of SI or Actuarial
crops (all Cereals, Millets, rate, whichever is less
Pulses and Oilseeds crops)
2 Rabi All foodgrain and Oilseeds 1.5% of SI or Actuarial
crops (all Cereals, Millets, rate,whichever is less
Pulses and Oilseeds crops)

)
3 Kharif Annual Commercial/Annual 5.0% of SI or Actuarial

77
and Rabi Horticultural crops rate, whichever is less
Perennial horticultural /

65
commercial crops (pilot basis)

12
Personal  All BKCC holders (Existing and new) are covered under the policy
Accidental  The age of the BKCC holder should be 18 years and above but not

K
Insurance exceeding 70 years in order to become eligible for coverage

.(A
Scheme (PAIS)  In case of Joint accounts, first holder will be eligible for insurance
coverage. If the age of 1st holder is above 70 years as on date of accident,
other holder will be eligible for insurance claim if he was authorized to hold

IT
BKCC in his name and was authorize to operate the BKCC account.

K
 The entire premium payable on the policy will be borne by the Bank and

N
will be paid by Head Office and will not be debited to the a/c of the
A
beneficiary/ BKCC holder.
T
Accidental death/ Permanent Disability Rs. 50,000/-
A

Loss of two limbs or one limb and one eye Rs. 50,000/-
W

Loss of one limb or one eye Rs. 25,000/-

A
M

TATKAL LOAN SCHEME

U
K

PURPOSE An instant credit for farming community to meet the emergent funds
r.

requirements for Agriculture and domestic purposes during off season.

M

ELIGIBILITY: Individual Farmers/Joint borrowers who are existing Baroda Kisan

Card (BKCC) Holders.
y:

TYPE OF LOAN Term Loan repayable in 3-7 years or Overdraft facility for a period of
B

12 months.
MAXIMUM LOAN Limit may be fixed as under:
d

AMOUNT BKCC Limit up to Maximum Tatkal Limit

de

Up to Rs. 10.00 Lacs 50% of BKCC limit subject to max of Rs.2.00

oa

lacs
More than Rs. 10 lacs Rs.3.00 lacs
nl

Tatkal limit now being sanctioned should be within the eligible limit under
Investment Line of Credit in BKCC i.e. the income and value of security
ow

conditions should be met and this Tatkal limit should be deducted from the
eligible/available quantum of finance for investment credit also.
D

SECURITY:  Existing security under BKCC to be extended.

 The existing norms of no collateral security up to Rs.1.60lac to be
followed if combined limit is within Rs.1.60 lac.
REPAYMENT In half yearly/ Yearly instalments depending upon the income
(FOR TERM generation and cropping pattern.
LOAN)

112
 MINI DAIRY

PURPOSE To establish new small dairy units with -2- to -10- milch animals
ELIGIBILITY: Individuals, farmers, members of NGOs/SGHs/JLGs.
TYPE OF LOAN Term Loan
AGE Minimum: -21- years
Maximum: up to -65- years, as on the date of availment of facility
LOAN AMOUNT  No. of animals to be financed under scheme
o Minimum: 2 & Maximum: 10

)
 Maximum amount of loan:

77
Maximum No. of animal financed under the scheme X Per animal cost (as

65
given by respective Regional Offices of NABARD)

12
Buffaloes producing more than -7- litres of milk per day and cows producing
more than -8- litres of milk per day ONLY are to be financed under the

K
Scheme.

.(A
Margin 10%
Repayment Maximum period: Not exceeding –5- years (including moratorium period of
three months).

IT
Other Conditions  Branch to inspect the unit within a fortnight from the date of disbursement

K
and the report should be kept on Bank’s record.
 Back ended subsidy is provided by NABARD as per eligibility and their
N
scheme guidelines. A
T
A
W
A
M

FINANCING CONSTRUCTION OF FARM BUILDINGS AND STRUCTURES

U
K

PURPOSE For construction of farm house cum dwelling unit on own farm also, for
r.

reimbursement of expenses incurred for farm house cum dwelling unit

constructed recently from own sources to good clients selectively
M

ELIGIBILITY: All persons engaged in cultivation of crops as owners of land or as

y:

permanent tenants or as lease-holders (for a reasonably long period) and

who have adequate productive utility of proposed construction.
B

NATURE OF Term Loan

d

FACILITY
de

QUANTUM OF Depending up on the cost of project and subject to assessment under

LOAN Investment line of credit of BKCC.
oa

MARGIN 15%
nl

25% for reimbursement but property should have been constructed /

purchased recently, not prior to 24 months.
ow

REPAYMENT  For Farmhouse cum dwelling unit: Maximum 15 years.

(FOR TERM  For others maximum 7-10 years depending upon the project
D

LOAN) undertaken.
 Loan repayment will be synchronized with income generation from the
farm activities.
 The instalments may be fixed on half yearly/yearly basis based on
cropping pattern.

113
 BARODA ANIMAL HUSBANDRY & FISHERIES KISAN CREDIT CARD

Purpose Short Term & Long Term credit requirements of the farmers involved in
activities related to Animal Husbandry and Fisheries
Eligibility Dairy, Poultry & Small ruminant
Dairy/poultry farmers, JLGs, SHGs including tenant farmers rearing dairy
animals/Poultry/birds and having owned /rented /leased sheds.
Fishery
Inland Fisheries And Aquaculture
 Fishers, Fish Farmers, SHGs, JLGs, Women groups.
 The beneficiary must own or lease any of the fisheries related activities

)
77
and license.
Marine Fisheries

65
 Fishers, Fish Farmers, SHGs, JLGs, Women groups who own or lease

12
registered fishing vessel/boat and possess necessary fishing
license/permission.

K
Quantum of Minimum: Rs. 3000/-

.(A
Loan Maximum: Rs. 10 Lakh (Working Capital + Term Loan)

Project Cost having loan requirement of more than Rs 10.00 lakhs will be

IT
considered separately as per existing guidelines of the Bank.

K
Fixation of Credit Working Capital Limit

N
Limit
Scale of finance as decided by DLTC for Animal Husbandry & Fisheries
A
X
T
No. of Unit/Animals
A

+
W

10% of limit towards post-harvest /household /consumption requirement

+
A

20 % of limit towards repairs and Maintenance expenses of assets and

M

Insurance
U

___________________________________
K

= Working Capital Limit

r.

First year Limit arrived at as above plus 10% of the limit towards cost
M

escalation/increase in scale of finance for every successive year (2nd, 3rd,

y:

4th and 5th year) i.e. for 5 years is to be provided.

Farmers who are already having KCC Crop Loan will not be eligible for 10%
B

limit towards household/ consumption requirements & 20% of limit towards

d

repairs and maintenance expenses of assets.

de

Investment Line of Credit

oa

Quantum of finance for investment credit may be decided as per scale of

Finance given by NABARD.
nl

Interest  Interest subvention is to be provided on a maximum limit of Rs 2.00 lakh

ow

Subvention & for working capital limit to farmers involved in animal husbandry and
Prompt fisheries.
D

Repayment  Additional interest subvention 3% per annum to such of those farmers

Incentive repaying in time i.e. from the date of disbursement of the working capital
loan upto the actual date of repayment by farmers or upto the due date
fixed by the banks for repayment of loan, whichever is earlier, subject to
a maximum period of one year from the date of disbursement".
Repayment Working Capital: As per cash flow /income generation pattern of the
Period activity.
114
 Term Loan: Monthly, Quarterly, Half Yearly as per income generation
pattern of the activity.
Activity Repayment period
Dairy Animals 4-5 Years
Poultry and small 3-7 years depending up on the economic
ruminant viability of the project.
Fishery 3-7 years depending up on the economic
viability of the project.
Coverage under All the Loans sanctioned under the Scheme are to be compulsorily covered
CGTMSE/CGFM under credit guarantee fund for Micro Units (CGFMU). Premium of

)
U Guarantee Coverage to be paid by Borrower and would be debited in loan

77
account as per Guidelines of NCGTC.
Update the Guarantee Cover Code for all eligible accounts in finacle as

65
under-

12
ACM MIS Codes  update guarantee cover code as “CGFMU”
IRAC Norms As applicable to Agriculture and allied activities.

K
.(A
LENDING TO AGRICULTURE & OTHER PRIORITY SECTOR AND RETAIL ADVANCES

IT
AGAINST THE SECURITY OF GOLD ORNAMENTS /JEWELLERY/COINS

K
N
Purpose Agriculture, allied activities, other priority and any purpose except
speculation
A
Eligibility  All individuals including staff members being the true owner of the gold
T
ornaments/jewellery & specially minted gold coins sold by the banks
A

(maximum up to 50 grams per borrower).

W

 The applicant must be local resident having Saving Bank account. If the
A

applicant doesn't have Savings Bank account, it is to be opened first

M

before extending gold loan.

Age  Minimum: 18 Years
U

 Maximum; 70 years
K

Limit  Maximum loan limit under the scheme is Rs.25.00 lakh per borrower
r.

against the pledge of gold ornaments/ jewellery.

M

 Minimum loan limit: For BKCC Gold loan: Rs.1.61 lakh and there is no
minimum limit for other products.
y:

 The credit limit should be-

B
d

1. Need based OR
de

2. Advance value of gold ornaments/jewellery given daily by the treasury

dept. OR
oa

3. 75% of the appraised value of the gold ornaments/jewellery by the

assayer
nl
ow

Whichever is lower among the above Three

D

For BKCC Gold Loan

 The composite limit is to be arrived at considering the eligibility of the
applicant under either of the segments or both the segments
The eligible 1st Year limit under the scheme will be lower of –
 Composite limit arrived at for both the segment i.e. Short Term Crop Loan
and Working capital for Animal Husbandry & Fisheries activities.
 Loan requested by the applicant.
 Advance value of the Gold ornament/ Jewellery & coin to be pledged for
115
 the facility

At the time of subsequent Annual Review/Renewal of Limit/DP

Lower of the-
 Lower of the advance value of the gold ornament / Jewellery pledged with
the Bank as on the date of review of Limit/Drawing Power OR
 The Annual Limit assessed as per the initial sanction is to be considered.
Security Minimum 18 carat gold jewellery/ornaments/specially minted coins /hall
marked gold jewellery/ornaments.
For BKCC Gold Loan

)
Primary: Hypothecation of standing crop & assets created out of Bank

77
finance.
Collateral: Pledge of Gold ornaments /Jewellery/Gold coins sold by the

65
Banks (weight of which should not exceed 50 grams per customer).

12
Margin 25% on value of gold ornaments/jewellery/specially minted gold coins as
appraised by Bank's approved assayer

K
.(A
For BKCC-Gold: Nil
Advance of Gold  To be done on daily basis taking into consideration average of the last 30
days closing price of gold.

IT
 The same will be advised/ circulated to the Branches/ offices by Treasury

K
Department.

N
 In case the advance value is not advised by Treasury Department on any
A
particular day on account of some reasons like holiday/ strike etc.
advance value of the previous day may be considered by the Branches
T
for arriving at the loan limit.
A
W

Bank has introduced Finacle Menu “GLDRTM” to automate the advance

A

value of the Gold in the finacle.

M

Tenor Maximum 12 Months, except in Gold Loan EMI scheme.

For Gold Loan EMI: Maximum 36 months subject to annual review.
U

Gold Loan Approval from the Vertical is to be obtained prior to opening of any Gold
K

Shoppe Loan Shoppes under Zones /Regions, subject to complying all guidelines of
r.

SOP and subsequent communication from our Vertical from time to time.
M

Sanctioning  Branch Managers are empowered to sanction these loans under their
Authority DLP.
y:

In case of Gold Loan Shoppe

B

 The In-charge of "Gold Loan Shoppe" will be the sanctioning authority for
Gold Loans up to and inclusive of Rs.3.00 lakhs per borrower.
d

 Loans above Rs.3.00 lakhs per borrower will be sanctioned by the Branch
de

Manager of the Branch under his Discretionary Lending Powers (OLP)

oa

where "Gold Loan Shoppe" will be operational.

 Wherever one officer is posted in the "Gold Loan Shoppe", sanctioning
nl

powers will remain with the Branch Head as per existing guidelines.
 All sanctions by In-Charge of "Gold Loan Shoppe" will be submitted to the
ow

Controlling Office for PSR noting.

 Wherever, the assayers registered with Income Tax Dept for wealth tax
D

Assayer
purpose are available, their services should be utilized for assaying the
gold ornaments.
 In the areas/centres where assayers registered with income tax
department are not available, the practice of availing the services of
assayers of traditional goldsmith artisans who have sufficient experience
having good reputation & standing and agreeable to our bank’s terms and
conditions be followed by the branches.
116
  Age of the assayer should not be below the age of 30 years and above
60 years.
 Assayer should be willing to examine the jewellery within the branch
premises during business hours on all working days.
 Gold loans to Jewel Appraiser/his relatives should not be permitted.
However, other loans and advances to the Jewel Appraisers/their
relatives may be permitted by the sanctioning authorities under their
normal powers.
Valuation/Asses  Weighing and valuation of gold ornaments is to be done by assayer at the
sment of Gold Branch premises in the presence of Branch Manager / officer and the

)
Ornaments/ borrower concerned.

77
Jewelry  Once gold jewellery is appraised, the same should not be parted with.
 In case, for any reason the jewels are handed back to the intending

65
borrower, they should be reappraised before granting the loan and the

12
reappraisal charges in such cases are to be borne by the borrower.
Safe keeping of  After assaying, the gold ornaments are to be put in a bank pledged gold

K
pledged gold approved thick polythene cover and to be sealed.

.(A
ornaments/  The jewel loan card be prepared in triplet & one copy to be kept inside
jewellry the jewel packet, another be attached outside the jewel packet & the third
be given to the borrower for reproducing the same at the time of

IT
redeeming the jewellery.

K
Assayer Charges At the time of Amount Remark

N
Initial appraisal of 50 paisa per Rs. 100 net To be recovered from
A
gold ornaments at assayed value of gold Borrower by debit of his
the time of sanction ornaments. deposit account.
T
Min. Rs. 25 & Max. Rs.
A

350 per assaying(*)

W

Re-appraisal for 50 paisa per Rs. 100 net To be paid to the debit of
A

sanction amount of assayed value of gold Branch’s PL Sundry

M

loan above Rs. 3 ornaments. Charges (others)

Lakhs. Min. Rs. 25 & Max. Rs. account
U

250 per assaying(*)

K

20% Re-appraisal of Rs. 100 per packet (*) To be paid to the debit of
r.

the loan sanctioned Branch’s PL Sundry

M

and outstanding at Charges (others)

the end of the account
y:

quarter.
B

5% Re-appraisal at Rs. 100 per packet (*) To be paid to the debit of

the time of Internal Branch’s PL Sundry
d

Audit of the branch Charges (others)

de

by ZIAD. account
oa

If the assayer engaged for reappraisal is from outstation, the actual bus fare or second class
train fare can be paid to him.
nl

*GST
ow

 Amount of assaying charges inclusive of GST at the time of initial assaying to be recovered
from the borrower is to be credited to banks P/L account and the assaying charges is to be
D

paid to the assayer by debiting banks P/L account.

 The designated P/L for making payment to valuers is XXXX0054511078.

SECURITY FOR OTHER LIABILITIES:

Though the borrower would have paid the dues in Gold loan accounts the branch has got the
right to retain the jewels as security for any of the other liabilities of the borrower under any
account either as a principal borrower or guarantor.
117
 NEW TRACTOR LOAN SCHEME

Parameter Tractor Loan- Agri Tractor Loan- Agri Tatkal Tractor Loan –
end use & Agri. cum commercial Based on KYC
Hiring End use documents.
(LA434) (LA435) (LA436)
Landholding A minimum land Land holding up to 2.5 NA
holding of 2.5 acres acres of agriculture

)
77
of agriculture land land (single or jointly
(single or jointly owned) required.

65
owned) is required. Proof of land record to
Proof of land record be obtained/

12
to be obtained/ maintained by the

K
maintained by the Bank

.(A
Bank
Residence Local resident for a period of at least 3 years in service area of branch
stability (residential stability should be confirmed by documentary evidence issued by

IT
GOI).
Age Norms Borrower’s age should not be less than 18 years & should not exceed 70

K
years at the time of agreement, in case borrower’s age exceed 70 years,

N
family members (blood relation and/or legal heir) who satisfy the above
A
criteria need to sign the agreement as co-borrower.
T
Minimum 15% 20% 30%
A

Margin
W

Tractor HP No restriction of tractor HP range.

A

However, under Agriculture Finance Scheme No. 2 PURCHASE OF

M

TRACTORS AND OTHER HEAVY AGRICULTURAL MACHINES, Tractors

U

with Horse power up to 35 HP only be considered for farmers with land

K

holding below 6 acres of irrigated land or corresponding acreage prescribed

for different categories of land under State land ceiling Act.
r.

Rate of 14.50% fixed 14.00% fixed 13.00% fixed

M

Interest
y:

Repayment 72 months (6 Yrs.) 72 months (6 Yrs.) 60 Months (5 Yrs.)

Period & Monthly/Quarterly/Ha Monthly/Quarterly Monthly/Quarterly
B

Frequency* lf Yearly (Based on the (Based on the cash flow

d

cropping pattern in with the applicant, this will

de

(Based on the case of Agri purposes be decided by the

cropping pattern in and cash flow in case sanctioning authority).
oa

case of Agri purposes of commercial

and cash flow in case operations. This will
nl

of commercial be decided by the

ow

operations. This will sanctioning authority)

be decided by the
D

sanctioning authority)
Moratorium Half Yearly-180 Quarterly-90 Quarterly-90
(days) Quarterly-90 Monthly-30 Monthly-30
Montyhly-30
Processing 1% of Loan amount. (50% waiver of which may be obtained from Regional
Charges Authority in deserving cases)

118
 Payout/ (A) PAYOUT PAYMENT TO TRACTOR DEALER:
Incentive to
Dealer/ Sales
Executives
Number of Tractor Loan account Payout Payment to
Disbursed in a quarter from single Tractor Dealer (%
Tractor Dealer of Loan amount) *
All Zones except Lucknow Zone
Lucknow
1 to 5 1 to 5 1.00

)
77
6 to 10 6 to 15 1.50
Above 10 Above 15 2.00

65
*10% of the pay-out to Tractor Dealer to be retained till receipt of RC with

12
Bank's lien.

K
(B) PAYOUT PAYMENT TO TRACTOR DEALERS SALES EXECUTIVE:

.(A
Incentive of Rs. 1500/- per tractor is to be paid to sales executive of
Tractor Dealer.
In case of Tractor dealers operating in different locations across the Regions

IT
in Zone,

K
Regional Head may decide payment of payout/ Incentive based on the

N
aggregate numbers of Tractor Loans disbursed during a particular quarter,
A
across all Branches of our Bank in Region.
Incentive to Product Schem No. of Payout structures (per case)
T
BC e code cases
A

Incentiv Amount On After

in disburs e to be submissi complet
W

Finacle ed in paid on on of ion of 1

A

the disburse PDD year if

M

month ment within 60 account

U

(50% of Days of remains

Incentive Disburse standar
K

) ment d (40%
r.

(10% of of
M

Incentive Incentiv
) e)
y:

Tractor LA434 1-2 3000 1500 300 1200

B

/ 3-4 4000 2000 400 1600

LA435 5 & 5000 2500 500 2000
d

/ above
de

LA436
oa

LA404 NA 1500 750 150 600

CIBIL Criteria For all parties to the agreement, a CIBIL score of 0. -1 and anything >650 will
nl

be the eligible norm. A score above 650 is considered to be good for rural
ow

products. If CIBIL report reflects any irregularity/overdue, a regularized

statement of account to be obtained.
Field To be prepared in the prescribed format for capturing the details of field
D

Inspection inspection. Annexure II ( it will remain part of the appraisal Note and will be
kept with file)
Viability of Based on the tractor’s usage a FCF (Free cash flow) calculation sheet is to
proposal be prepared and satisfied upon. Format is enclosed as Annexure III in circular
BCC:BR:111:159 dated 30.03.2019.

119
 Asset Assets are categorized under A, B, C based on their sales and exit price. The
Categorizatio asset categorization will decide the margin contribution (LTV) which will be
n subject to minimum as mentioned in above in margin. The asset
categorization will be advised by the corporate office time to time which may
differ state to state.
LTV/DLP LTV calculated on the DLP/Invoice price whichever is lower. Max. LTV of
(Dealer DLP is as under-
Landed Price) A-85% A-80% A-70%
B-80% B-75% B-65%
C-75% C-70% C-60%

)
LTV Deviation 1. Up to 5% in LTV on A and B category asset by Regional Authority

77
2. Up to 3% in LTV on C category asset by Regional Authority
Post Invoice Bill & Insurance Policy (with Bank’s clause) should be ensured

65
Disbursement immediately after disbursement. RC book to continue as a post disbursement

12
Document document which should be obtained within 60 days of the disbursement.

K
.(A
FINANCE AGAINST WAREHOUSE / STORAGE/E-NWR RECEIPTS

IT
ELIGIBILITY: Individual Farmers (including SHGs or JLGs), Proprietorship firms of

K
farmers, corporate farmers, Farmer producer companies of individual

N
farmers, partnership firms and co-operatives of farmers directly engaged in
Agriculture and Allied activities.
A
NATURE OF Demand Loan: For Farmers
T
FACILITY Cash Credit (Pledge): For Others
A

MARGIN Minimum 30%. The margin may be increased considering the

W

volatility in price for the particular commodity or as prescribed by the

A

Collateral Manager whichever is higher.

SECURITY Pledge of Agricultural Commodity and duly discharged/Lien marked
M

warehouse receipts.
U

TENOR Maximum 12 Months.

K

ASSESSMENT  For loans to individual farmers including SHGs or JLGs, proprietorship

r.

OF LIMIT firms of farmers, corporate farmers, farmer’s producer’s

M

organizations/companies of individual farmers, partnership firms and

co-operatives of farmers up to a limit of Rs.5.00 Lakhs, assessment
y:

of the limit may be done based on the value of the commodity

B

held/proposed to be held net off margin.

 For loan limits above Rs.5.00 Lakhs, limits to be sanctioned based on
d

the landholdings of the farmer or the land of their group

de

members/constituents and the crop harvested thereon. It is to be

ensured by the branch that the pledged commodity is not
oa

disproportionate to the landholding of the borrower/s.

 For sanctioning warehouse receipt to our existing food & agro
nl

processing units, assessment may be done based on the value of the

ow

commodity held/proposed to be held net off margin.

Tie up At present bank has tie up arrangement with following collateral
D

Arrangement managers
with Collateral  National Bulk Handling Corporation(NBHC)
Managers  Shree Shubham Logistics Limited
 Arya Collateral warehousing services Pvt. Ltd.
MoU to conduct MoU with M/s NCDEX e- Markets Limited (NeML) – to conduct e-auction of
e-Auction Pledge Commodities Financed by Bank against Warehouse Receipts/
Storage receipts.
120
 OTHER In case of individual farmers availing crop loan from Branch, the facility
CONDITIONS shall be routed through BKCC crop loan account.
 No commitment charge to be levied under the scheme as the activity
is seasonal.
 QIS statements, Stock/ Book Debt statements need not to be obtained
under this scheme. Instead, the D.P. is to be calculated on the value
of Warehouse Receipts pledged net of required margin.
 Before release of the facilities, the verification of the stocks
represented by the warehouse receipts is invariably done in all the
cases. Goods shall be inspected at periodic intervals thereafter also,

)
minimum at bimonthly interval (except where it is linked to the credit

77
rating of the facility) to ensure upkeep of its quality. The visit report is
to keep on record invariably.

65
FINANCING Our Bank has tie-up with both the repositories NERL & CDSL, for financing

12
AGAINST E- against the e- NWRs issued by them. For Convenience of the branches a
NWRS detailed process flow covering all the aspects of financing against e-

K
NWRs issued by NERL is as below-

.(A
1. Farmer/ Miller/ Processor approach a WDRA accredited Warehouse/
cold store to store his/her agriculture commodity.
2. The warehouse man after taking custody of the stock, enters all the

IT
relevant information on a digital platform managed by the repository

K
i.e. NERL and issue an e-NWR in the name of the depositor.
3. The depositor approaches branch for availing finance against the

N
stock deposited with the warehouse/ cold store.
A
4. The concerned Branch will raise a request to Rural & Agri Banking
T
Department, Head office via mail for creation of user-id for branch
A

officials for enabling the branch officials to access the NERL portal.
W

5. Head office will create user-id for branch officials and intimate the
same to them.
A

6. Branch will obtain the request letter/ loan application from the
M

customer for the proposed credit facility against the stock deposited
U

with the warehouse

K

7. Branch will process the loan as per the extent guidelines

8. Upon sanction and completion of documentation and other formalities,
r.

now branch to note lien on e-NWR on digital platform (portal) of NERL,

M

prior to release the sanctioned amount this lien must be noted by the
y:

branch.
9. After noting our charge/lien on e-NWR branch to take printout from
B

the portal (indicating Banks charge) and keep it on branch records.

d

Branch can generate report of pledge stock from the portal and can
de

cross verify during inspection of stock.

10. When borrower repays the loan along with interest and charges,
oa

branch can remove the lien/charge noted on the e-NWR.

nl
ow

AGRICULTURE INFRASTRUCTUTRE FUND

D

Purpose/Objective Financing facility for investment in viable projects for post-harvest

of the scheme management infrastructure and community farming assets through
incentives & Financial support in order to improve Agriculture Infrastructure.
Implementation The Scheme will be operational from 2020-21 to 2029-30.
period of the
scheme
121
 Eligible projects Post-Harvest Management Projects like:
 Supply chain services including e-  Sorting &grading units
marketing platforms
 Warehouses  Cold chains
 Silos  Logistics facilities
 Pack houses  Primary processing
centers
 Assaying units  Ripening Chambers.

Viable projects for building community farming assets including –

)
 Organic inputs production  Projects identified for providing

77
supply chain infrastructure for

65
clusters of crops including
export clusters.

12
 Bio stimulant production units  Projects promoted by

K
Central/State/Local
 Infrastructure for smart and Governments or their agencies

.(A
precision agriculture under PPP for building
community farming assets or

IT
post-harvest management
projects

K
Eligible

N
Beneficiaries  Primary Agricultural Credit Societies
A  Joint Liability Groups
(PACS).
 
T
Marketing Cooperative Societies Multipurpose Cooperative
A

Societies
 
W

Farmer Producers Organizations Agri-entrepreneurs,

(FPOs) Startups
A

 Farmers  Central/State agency or

M

 Self Help Groups Local Body sponsored

U

Public-Private Partnership
K

Projects
r.

Type of Facility Term Loan

M

All loans under this financing facility will have interest subvention of 3% per
Interest
annum up to a limit of Rs. 2 crores. This subvention will be available for a
y:

Subvention
maximum period of 7 years. In case of loans beyond Rs.2 crore, then
B

interest subvention will be limited up to 2 crores.

Any Grant or subsidy available under any present or future scheme of
d

Margin
Central/State Government shall be considered as promoter’s contribution.
de

However minimum 10 % of project cost shall be mandatory as promoter’s

contribution.
oa

Credit guarantee coverage will be available for eligible borrowers from this
Credit Guarantee
nl

financing facility under Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore. The fee for this
ow

coverage will be paid by the Government. In case of FPOs the credit

guarantee may be availed from the facility created under FPO promotion
D

scheme of DAC&FW
Loan Tenure & Term Loan will be repayable in 3 to 15 Years (Including Moratorium period
Repayment. of Minimum 6 Months & Maximum 2 Years period)
Repayment can be fixed monthly/quarterly/half yearly/yearly based on the
cash flow of the project

122
 Classification of Loan to the eligible borrowers with an aggregate sanctioned limit up to
Advances Rs.100 Crores per borrower from the Banking system are to be classified
under Agricultural Sector.

ANIMAL HUSBANDRY INFRASTRUCTURE DEVELOPMENT FUND

Eligible Dairy Processing

projects Establishment of new units and strengthening of existing dairy processing

)
units with quality and hygienic milk processing facilities or any other

77
activities related to dairy processing.

65
Meat processing and value addition infrastructure

12
 Establishment of new meat processing unit and strengthening of existing

K
meat processing unit in semi urban areas for sheep/goat/ poultry can be

.(A
processed.
 Meat products like Sausage, nuggets, ham, salami, bacon making or
any other value addition unit can also be established as an integral part

IT
of the meat processing unit.

K
 The project cost of each meat processing plant should compulsorily

N
include Effluent Treatment Plant (ETP), Meat Microbiological Testing
A
Laboratory, Residue Testing laboratory, Cold storage for holding the off,
skin/ hide processing areas and their preservation and refrigeration
T
facilities for holding the chilled products and value added products for
A

minimum of 24 hours.
W
A

Animal Feed Plant

M

Establishment of Animal Feed manufacturing and strengthening of existing

units/ plant
U

Eligible  Individual entrepreneurs

K

Beneficiaries  Private Companies

r.

 Micro, Small & Medium Enterprises (MSMEs)

M

 Farmers Producers Organizations (FPOs)

 Section 8 companies (Non-profit Organizations)
y:

Type of Facility Term Loan

B

Interest 3 % for all Eligible Entities

 The Department of Animal Husbandry and Dairying will directly pay the
d

Subvention
de

interest subvention to the Scheduled Bank. Initially the Department will

pay interest subvention amount in advance upfront to the lending bank
oa

for the First year based on request of scheduled Bank. Interest

subvention from the 2nd onwards would be released on the non-NPA
nl

borrower entitlement claimed by the Scheduled Bank every year in

ow

advance
 The Eligible entities will not be able to get interest subvention, if the
D

eligible entities is defaulter of re-payment of loan amount in any given

year
Margin  Minimum 10% for Micro & Small Units,
 15 % for Medium Enterprise
 25% other categories of enterprises
Loan Tenure &  Maximum period- 10 Years inclusive of moratorium of 2 years on
Repayment. principal amount

123
  Bank shall ensure that maximum re-payment period should not exceed
10 years from the date of first disbursement inclusive of moratorium of
2 years on repayment of principal
 Repayment can be fixed month/quarterly/ half yearly/ yearly based on
the cash flow oh the project
Classification  Loan to the eligible borrower with an aggregate sanctioned limit up to
of Advances Rs. 100 Crs per borrower from Banking system are to be classified under
Agriculture Sector
 If the limit exceeds Rs. 100 Crs per borrower from banking system –
MSME/SME expanded/others as per the extant guidelines of the Bank.

)
Submission of All eligible entities will submit the proposal with complete detailed project

77
the Project report through ‘ Udyami Mitra Portal Developed by SIDBI’
Proposal

65
12
K
.(A
FINANCING FOOD & AGRO BASED UNITS

Eligibility  Individual, Proprietorship, Partnership Concerns, Private Limited

IT
Companies, Public Limited Companies and Limited Liability Partnership

K
Concerns,
 Other constitution of borrowers permissible by ministry of food processing
N
industries and as per RBI circular/ guidelines.
A
Credit Rating Minimum internal Rating should be BOB 6/ MSMEBOB 6
T
RAROC Accounts with exposure upto Rs. 50.00 Crores financed under this scheme
A

are delinked from RAROC at account level for considering the proposal and
W

allowing concessions in the accounts.

A

For borrowers enjoying exposure above Rs. 50.00 Crores, prevailing

M

guidelines as per GCEMP in respect of RAROC will continue to be followed

U

under the Scheme.

K

Nature of  Term Loan/ Demand Loan/ Cash Credit/ Cash Credit against Warehouse
r.

Facility Receipt/ Bank Guarantee/ Letter of Credit/ BP/ BD/SBLC, Export Credit
pre-shipment and post-shipment.
M

Note:
y:

 To consider combo limit of Cash Credit (Hypothecation of stock & Book

debts) or LOC as per Bank's guidelines.
B

 The concessions/relaxations available under the Scheme may also be

d

extended on the export credit facilities granted to a borrower covered

de

under the Scheme. However, rate of interest are to be charged/ recovered

on the export credit facilities as applicable on MSME units and circulated
oa

from time to time. Further, other charges are to be recovered on the export
credit facilities, as per the Bank's extant guidelines.
nl

Purpose  Working capital requirements

ow

 Financing new project i.e. acquisition/ construction of land & Building and
Plant & Machinery based on the project cost including takeover of existing
D

units.
 Non Fund based facilities ( i.e. Bank Guarantee and Letter of Credit)
Limit  All the benefits/concessions/relaxations under the scheme are applicable
upto sanctioned limit of Rs. 100.00 Crores.
 (However, the aggregate sanctioned limit per borrower from the Banking
system not to exceed Rs.100.00 Crores)
Margin  Stocks & Book debts: 25 %
124
  Plant & Machinery: 25%
 Land & Building: 30%
Method of As per extant guidelines on working capital assessment for MSME units.
Assessment
of Limit
Repayment In suitable monthly/ quarterly instalments after initial moratorium period.
of Term Loan Total loan period not to exceed -84- months including moratorium period.
Calculation The calculation of the immovable/ hard Security Coverage for pricing
of Immovable purpose will be derived as following table:
/ hard Sr. Name of Property Haircut to Eligible Hard
security No. taken/applied Security Coverage

)
77
to be considered
after Haircut

65
1. Liquid security (FD/LIC Nil 100% face value of

12
Policy etc.) other than FDRs NSCs, KVPs
margin on NFB limits can etc. and surrender

K
be considered for value for LIC

.(A
computation of the policies.
eligible security
coverage for pricing

IT
without any haircut.

K
2. CGTMSE 25% of 75% of coverage
coverage available.

N
available
A
3. Plant & Machinery* 40% of WDV as 60% of WDV as per
T
per last last available
A

available Balance sheet. In

W

Balance sheet case, new Term

Loan is proposed for
A

purchase of Plant &

M

machinery, 60%
U

cost of P&M to be
K

considered.
Residential/ Commercial -- Realizable value of
r.

4.
property the property
M

5. Industrial Property 20% haircut on 80% of the market

y:

market value value

 Every three years valuation to be obtained by Banks empaneled
B

valuer in respect of Plant & Machinery certifying the residual age of

d

the machineries and w.d.v. value of the machines.

de

Period  12 months for working capital

 Up to 144 months for term loan (including up to -24- months moratorium
oa

period), subject to annual Review

 Activity clearance for financing units engaged in Vegetable Oil and
nl

Activity
Clearance Vanaspati Oil is to be obtained as per GCEMP.
ow

 However, for the units engaged in Cotton Ginning & Pressing Mills and
Cotton Seed Oil Extraction Activities (i.e. Comprehensive Units), activity
D

clearance is not required if the majority of the sales is from cotton Ginning
& pressing activity.
Peak & Non-  Sanctioning Authorities have been allowed to sanction additional working
Peak limits capital limit upto 25% of the sanctioned Cash Credit Limit, keeping in view
the peak season requirement of the customer, subject to observing the
amount and period specified for granting adhoc facility under their DLP
(where peak and nonpeak limits have not been sanctioned separately)
125
  In Cotton Ginning, Pressing sanctioning of Peak-level (October to June)
and Non-peak level limits (July to September), bringing the Cash Credit
account in credit once in a year etc. are to be continued.
Stock Audit  Where and non-peak limits are sanctioned, Stock/Book Debt Audit to be
carried out annually during the peak season.
 On other cases, existing guidelines will continue as per GCEMP.
Other  If trading activities are also undertaken by the unit, the ratio of trading
Conditions sales in total sales should not be more than 49% in a financial year.
Otherwise, the benefits available under the scheme will not be
admissible.
 Exposure can be considered only upto CR 6 rated accounts in respect of

)
77
green field project under "Other Food Processing Sector". However, in
respect of takeover accounts pertaining to "Other food processing

65
Sector", existing criteria in respect of combined rating will continue as CR
5 rating. (Other Food Processing Sector denotes all Food Processing

12
Industries other than Sugar, Edible Oil and Vanaspati, Tea and Coffee).

K
 2. In case of greenfield projects, additional 0.50% Rate of Interest to be

.(A
charged over and above the interest rate mentioned above irrespective
of credit rating specified in scheme till achievement of DCCO. After
achievement of DCCO (i.e. Date of commencement of commercial

IT
operation) normal rate of interest to be charged as per scheme
guidelines.

K
 Wherever CIBIL CMR rating is available, exposure to be restricted upto

N
CMR 6 rated account. However, If a company is not having a CMR rating
A
for any reason, it may be treated as unrated and may be considered by
T
sanctioning authority under his DLP based on merits.
A
W
A
M

NEW OVERDRAFT SCHEME FOR WORKING CAPITAL ASSISTANCE TO FOOD & AGRO
U

PROCESSING UNITS
K

Parameter Guidelines
r.

Eligibility  All Advances to new/existing (including take over from other banks)
M

Food and Agro based processing units under "Agriculture"

 Individual, Proprietorship, Partnership concerns, Private Limited
y:

Companies, Public Limited companies and Limited Liability

B

Partnership Concerns.
 lf trading activities are also undertaken by the unit, the ratio of
d
de

trading sales in total sales should not be more than 49% in a

financial year.
oa

(Working Capital Limit should be under Sole banking Arrangement.)

Credit rating The units having internal rating up to BOB6 /MSME 6 will be eligible
nl

under this scheme

ow

Purpose Working capital requirements.

Scheme Code OD035
D

Interest table code is MCL5 ( 12 months BRLLR+SP). The Branch will

have to adjust the load above this in "account preferential DR" field.
Nature of facility Overdraft (Against Land & Building). However, sanctioning authority
may allow Non-Fund based Working Capital facilities, viz, Letter of
Credit and Bank Guarantee by earmarking the overdraft limit.
Limit Minimum Limit – 10.00 Lacs
Maximum Limit – (Rs. In lacs)
Rural 100.00
126
 Semi Urban 300.00
Urban & Metro 400.00
Method of assessment (i) 25% of projected sales of the borrower for Micro and Small
of Limit enterprise and 20% of the projected sales for medium
enterprise and SME expanded units (other than retail trade).
(ii) 60% of the realizable value of the property.
Lower of (i) & (ii) to be allowed as overdraft limit of the borrower.
Adhoc Limit Sanctioning authority can grant Adhoc limit up to 10% of sanctioned
limit for one month within the DLP of the Branch. Adhoc limit to be
considered up to two occasion in a year.

)
Rate of interest for adhoc facility to be 1% above the rate of interest

77
on regular limit. Adhoc limit to be considered in accounts subject to –
a) Conduct of account is satisfactory.

65
b) Turnover in the account is satisfactory.
 40% of the realizable value of property mortgaged. Regional

12
Margin
Head is authorized to reduce the margin up to 35% in deserving

K
cases.

.(A
 Two valuation for cases where the valuation is more than Rs.
200.00 lacs and the lower valuation will be considered as
Global Credit Exposure Management Policy 2018.

IT
K
Period 12 months

N
Commission on 50% of the applicable charges.
A
BG/LC
Cash Handling Regional Managers have been authorized to reduce/waive the cash
T
Charges handling charges on a case to case basis, on merits.
A
W

Collection Charges on 100% waiver of the Collection charges on collection of cheques issued
collection of cheques in favour of the Borrower by Food Corporation of India, Cotton
A

Corporation of India.
M

However actual out of pocket charges to be recovered.

U

Collection/Remittance/ 50% Concession is allowed. However actual out of pocket charges to

K

Intersol Charges be recovered.


r.

Documentation D. P.Note as per discretion of the borrower.


M

Letter of continuing security.

 Hypothecation of Goods covering stocks and Book Debts.
y:

 Equitable mortgage of the property.

B

 General form of Guarantee signed by the Directors/ Other

guarantors.
d

 Undertaking from the borrower to exclusively deal with our

de

Bank.
 Other documents/ Undertakings as per bank’s extant
oa

guidelines.
nl

Sanctioning Authority As per Discretionary lending powers.

ow

Proposal under this scheme are delinked with SME Loan

Factories and to be processed at Branch/Region/Zone level as
per their respective DLP.
D

Security Mortgage of factory land and building and/or any other property(Land
& Building) belonging to unit or Promoters of the unit, or close relatives
of the promoters, viz. father, mother, Spouse, son , son’s wife,
daughter, daughter’s husband, brother, brother’s wife , sister, sister’s
husband only , provided they stand as guarantors.) (Please note that
property should not be in the name of HUF).

127
 In case of residential/commercial building, age of property should not
be more than 25 years at the time of sanction.
For properties which are older than -25- years, Regional Head may
authorize such cases on selective basis, subject to ascertaining
structural soundness of the building by obtaining an Approved
Engineer’s certificate, certifying structural soundness and residual life
of the building, which should be at least -10- years more.
The branch will further be required to carry out inspection of the
property every year at the time of review of facility and obtain structural
soundness report from Architect every 3rd year along with valuation of
property and also ensuring that at any time the residual life of the

)
77
property is not less than 5 years.
If the property is purchased within last -3- years, the registered value

65
as per sale deed or the distress value as per valuation report
whichever is lower is to be accepted as the security value.

12
(Note: If the present realizable value is higher than the Registered

K
value (Sale deed Registered within last 3 years) and if it requires to

.(A
consider present realizable/ Market value as value of property, for any
reason, deviation approval from Regional Authority to be obtained for
the same based on merits.)

IT
- Hypothecation of Stock and Book Debts (Collateral Security).

K
- Personal guarantee of promoter directors/owners of property.

N
- Third party guarantee at discretion of sanctioning authority.
A
T
Extant guidelines for valuation of properties, obtaining of title
A

clearance and registration with statutory agencies with Sub-

W

Registrars and ROC, CERSAI etc., should be complied with.

Note: Exclusively vacant land as security is not permitted under
A

the scheme. However the same can be permitted along with other
M

eligible securities. The value of the vacant land shall not exceed
U

50% of the total security value.

K

Periodicity of Stock/Book debts statement to be obtained on Quarterly basis, i.e.

submission of February, May, August and November every year. This being a
r.

stock/book debts collateral security, certification by chartered accountant is not

M

statement mandatory. However, end use of the funds should be ensured through
details in the stock statement for monitoring purpose.
y:

Insurance Security/Property charged/mortgaged should be insured as per Bank’s

B

norms.
Stock Audit Since the facility is backed by 100% immovable security, stock audit
d
de

in the account is proposed to be waived.

Classification Overdraft facility to be classified under "Agriculture" under Priority
oa

Sector.
Branches shall open the accounts under this Scheme in a special
nl

scheme code OD035.

ow

Financial Ratio for Financial ratios (including takeover account) be as under:

D

Credit
Appraisal under the Particulars Benchmark
Scheme Micro & Medium General Acceptable
Small Enterprise Incl. SME Level
Enterprises expanded
Current 1.17 1.20 1.33 1.00
Ratio

128
 Debt Equity 3.00 3.00 3.00 4.50
Ratio
(TTL/TNW)
Debt Equity 4.50 4.50 4.50 5.00
Ratio
(TOL/TNW)

Lower ratios (other than takeover accounts) can be considered by the

sanctioning authority on a case-to-case basis, on merits, depending
upon the specific nature of unit etc. and after incorporating justification
for the same in the sanction note.

)
77
Guidelines for In respect of takeover of accounts under the scheme, takeover norms
Takeover for Agriculture advance accounts stipulated in the Global Credit

65
of accounts under the Exposure Management Policy 2019-20 and other guidelines issued

12
Scheme from time to time, other than relaxation mentioned in this note, are to
be followed.

K
Deviations allowed in All other norms for takeover of facilities as per the Global Credit

.(A
norms for takeover of Exposure Management Policy 2019-20 and other guidelines issued
accounts from other from time to time, other than the relaxation mentioned in this note, are
Banks/Fls under the to be followed.

IT
Scheme
Credit rating applicability would be as per loan policy/Bank’s

K
Other Conditions -
guidelines from issued from time to time.
-
N
Borrower to route the entire sales and all other transactions
A
through their overdraft account with the branch. Borrowers will
T
not be considered for Working Capital Assistance both under
A

the scheme as well as under usual scheme simultaneously.

W

- However, existing borrowers enjoying finance under any other

scheme can have the facilities transferred into overdraft against
A

land and building, if they so desire, after compliance of terms

M

and conditions.
U

- Pre-sanction inspection to be conducted and report to be kept

K

on record
- Inspection of stock and Book Debts to be carried out on
r.

Quarterly basis and inspection report to be kept on record.

M

- In case any defect is observed during inspection of the security,

y:

branch will be required to ensure substitution of the security

having requisite value immediately or ensure liquidation of the
B

facility at the earliest but not later than 12 months period in any
d

case
de

- Audited Balance Sheet and Profit and Loss Account, GST

Returns, Income Tax, etc. be obtained and kept on record at
oa

the time of annual review.

- Sales to be verified from GST Return.
nl

- Property mortgaged should be insured as per Bank’s Norms.

ow

Obtaining insurance of stocks may not be a condition for

sanction of facility. However, Branches may counsel their
D

Borrowers to have the stock insured in their own interest at their

cost.
- Any deviation other than mentioned herein above to be allowed
by Corporate Office Credit Committee headed by Executive
Director.

129
 FINANCING OF SELF HELP GROUPS (SHG)

WHAT IS SHG?
Self Help Groups (SHGs) are small homogeneous groups of people having a desire to
collectively perform common purpose(s)/activities. People who are homogeneous with
respect to social background, heritage, caste or traditional occupations come together for a
common cause to raise and manage resources for the benefit of group members.
 Groups could be formal (registered) or informal (unregistered).
 Membership of the group could be between 10 to 20 persons. However, In case of special
SHGs i.e. groups in the difficult areas, groups with disabled persons, and groups formed

)
in remote tribal areas, this number may be a minimum of 5 persons. If membership

77
number exceeds 20, the SHG should preferably be registered.
 From one family, only one person can become a member of an SHG.

65
12
FACTORS FOR VIABILITY OF SHGs:
 Members should be resident of the area and be homogenous. Homogeneity can be in

K
terms of caste, occupation, farm size, sex or income level.

.(A
 The group should preferably consists of either only men or only women. Mixed groups are
generally not preferred.
 The principle of savings first and credit thereafter should be followed.

IT
 There should be regular meetings, transparency in operations of the group and

K
participatory decision making,

N
 There should be election of group leaders and rotation in group leaders at regular
A
intervals.
 Proper maintenance of records is another important factor for viability of SHGs and its
T
evaluation. Adherence to credit terms, sense of group liability and peer pressure etc are
A

other factors.
W
A

In a nutshell, a disciplined SHG should be practicing ‘Panchasutras’ i.e. 1.Regular meetings;

M

2.Regular Savings; 3.Regular Inter-loaning; 4.Timely repayment and 5.Proper Book Keeping
and maintenance of Records.
U
K

DAY-NRLM (DEENDAYAL ANTYODAYA YOJANA - NATIONAL RURAL LIVELIHOODS

r.

MISSION)
M

Purpose Under DAY-NRLM, emphasis is laid on providing financial assistance to

SHGs through multiple doses of credit over a period of time to enable the
y:

group to access higher amounts of credit for taking up sustainable

B

livelihoods and improving the quality of life. SHGs may avail either Term
Loan (TL) or Cash Credit Limit (CCL) or both based on their requirements.
d
de

The loans may be used by members for meeting social needs, high cost
oa

debt swapping, construction or repair of house, construction of toilets and

taking up sustainable livelihoods by the individual members within the
nl

SHGs or to finance any viable common activity started by the SHGs.

ow

In order to facilitate use of loans for augmenting livelihoods of SHG

members, at least 50% of loans above ₹ 1 lakh, 75% of loans above ₹4
D

lakh and at least 85% of loans above ₹6 lakh should be used primarily for
income generating productive purposes. MCPs prepared by SHGs would
form the basis for determining the purpose and usage of loans.
Eligibility/  SHGs should be in active existence for at least 6 months as per their
Lending books of accounts (and not from the date of opening of S/B account).
Norms

130
  SHGs should be practicing ‘Panchasutras’ i.e., regular meetings,
regular savings, regular inter-loaning, timely repayment and up-to-date
books of accounts.
 SHGs should qualify as per grading norms fixed by NABARD. As and
when the federations of the SHGs come into existence, the grading
exercise may be done by the federations to support the banks.
 The existing defunct SHGs are also eligible for credit if these are
revived and continue to be active for a minimum period of three months.
Financial  DAY-NRLM, MoRD, will provide Revolving Fund (RF) support as
Assistance corpus ranging between ₹10,000 - ₹15,000 per SHG to strengthen their
To The SHGs institutional and financial management capacity and build a good credit

)
77
history within the group. SHGs in existence for a minimum period of 3/6
months and follow the norms of good SHGs known as ‘Panchasutras

65
i.e. Regular meetings, Regular savings, Regular internal lending,
Regular recoveries and Maintenance of proper books of accounts, and

12
which have not received any RF earlier will be eligible for such support.

K
 Capital Subsidy has been discontinued under DAY-NRLM.

.(A
 Community Investment Support Fund (CIF) will be provided by MoRD
to the SHGs promoted under DAY-NRLM in all blocks and will be routed
through the village level/cluster level federations, to be maintained in

IT
perpetuity by the federations. The CIF may be used by the federations

K
to advance loans to the SHGs and/or to undertake common/collective
socio-economic activities
Documents
N
 Application Form along with KYC of Office bearers
A
Required  Resolution of the SHG for availing bank Loan and authority to office
T
bearers to open and operate the account.
A

 Seal of the SHG.

W

 Letter of Sponsorship from the Sponsoring agency, if any.

A

Nature Of TL/DL and CC

Facility
M

Method Of Emphasis is laid on the multiple doses of assistance under DAY-NRLM.

U

Assessment This would mean assisting an SHG over a period of time, through repeat
K

And Loan doses of credit, to enable the group to access higher amounts of credit for
r.

Limit taking up sustainable livelihoods and improving the quality of life.

M

(Minimum &
Maximum SHGs may avail either Term Loan (TL) or a Cash Credit Limit (CCL) or
y:

Limit) both based on their requirement. In case of need, additional loan may be
sanctioned even though the previous loan is outstanding, based on the
B

repayment behavior and performance of the SHG.

d
de

Cash Credit Limit (CCL): In case of CCL, banks are advised to sanction
a minimum loan of ₹ 6 lakh to each eligible SHG for a period of 3 years
oa

with a yearly drawing power (DP). The drawing power may be enhanced
annually based on the repayment performance of the SHG. The drawing
nl

power may be calculated as follows:

ow

I. DP for First Year: 6 times of the existing corpus or minimum of Rs. 1.5
lakh whichever is higher.
D

II. DP for Second Year 8 times of the corpus at the time review/
enhancement or minimum of Rs.3 lakh, whichever is higher
III. DP for Third Year: Minimum of Rs.6 lakh based on the Micro credit plan
prepared by SHG and appraised by the Federations /Support agency
and the previous credit history.
IV. DP for Fourth Year onward: Above Rs.6 lakh, based on the Micro credit
plan prepared by SHG and appraised by the Federations /Support
agency and the previous credit History
131
 Term Loan: banks are advised to sanction loan amount in doses as
mentioned below:
I. First Dose: 6 times of the existing corpus or minimum of Rs. 1.5 lakh
whichever is higher.
II. Second Dose: 8 times of the existing corpus or minimum of Rs. 3 lakh
whichever is higher.
III. Third Dose: Minimum of Rs.6 lakh, based on the Micro credit plan
prepared by the SHGs and appraised by the Federations /Support
agency and the previous credit history
IV. Fourth Dose onwards: Above Rs.6 lakh, based on the Micro credit plan

)
77
prepared by the SHGs and appraised by the Federations /Support
agency and the previous credit History.

65
Note: Corpus is inclusive of revolving funds, if any, received by the SHG,

12
its own savings, interest earned by the SHG from on-lending to its

K
members, income from other sources, and funds from other sources in

.(A
case of promotion by other institutes/NGOs.
Repayment Repayment schedule for Term Loans may be as follows:
a) The first dose of loan may be repaid in 24-36 months in

IT
monthly/quarterly instalments.
b) The second dose of loan may be repaid in 36-48 months in

K
monthly/quarterly instalments.

N
c) The third dose of loan may be repaid in 48-60 months based on the
A
cash flow in monthly/quarterly instalments.
T
d) From the fourth dose onwards loans may be repaid between 60-84
A

months based on the cash flow in monthly/quarterly installments.

W

All credit facilities sanctioned under DAY-NRLM would be governed by the

A

asset classification norms issued by Reserve Bank of India from time to

M

time.
U

Interest  The scheme is limited to Women Self Help Groups under DAY-NRLM
K

Subvention in rural areas only.

scheme  For loans up to ₹ 3 lakh under the scheme, banks will extend credit at
r.

a concessional interest rate of 7% per annum. For outstanding credit

M

balance upto ₹ 3 lakh, banks will be subvented at a uniform rate of 4.5%

per annum during FY 2022-23.
y:

 For loans above Rs. 3 lakh and up to Rs. 5 lakh under the scheme,
B

banks will extend credit at interest rate equivalent to their 1 year-MCLR

d

or any other external benchmark based lending rate or 10% per annum,
de

whichever is lower. For outstanding credit balance above Rs. 3 lakh

and upto Rs. 5 lakh, banks will be subvented at a uniform rate of 5%
oa

per annum during FY 2022-23.

 Interest Subvention will be payable only for the period during which an
nl

account remains in standard category.

ow

 Women SHGs promoted by other agencies and following the DAY-

NRLM protocols will also be eligible for benefit of subvented loans
D

subject to prior submission of the details of such SHGs on the DAY-

NRLM SHG database.
 In order to avail the interest subvention on credit extended to the
women SHGs, banks may ensure that the accounts of SHGs (both
savings and loans) under DAY-NRLM are appropriately identified in
their CBS with unique codes assigned by DAY-NRLM/SLRMs.
 In order to avail the interest subvention on credit upto ₹ 3 lakh extended
to women SHGs under DAY-NRLM @7% as well as on credit above ₹3
132
 lakh and upto ₹5 lakh extended to SHGs, all banks are required to
submit claim certificates on quarterly basis to the Nodal Bank.
Security And  For loans to SHGs up to ₹10.00 lakh, no collateral and no margin will
Margin be obtained. No lien should be marked against savings bank accounts
of SHGs and no deposits should be insisted upon while sanctioning
loans.
 For loans to SHGs above ₹10 lakh and up to ₹20 lakh, no collateral
should be obtained, and no lien should be marked against savings bank
account of SHGs. However, the entire loan (irrespective of the loan
outstanding, even if it subsequently goes below ₹10 lakh) would be
eligible for coverage under Credit Guarantee Fund for Micro Units

)
77
(CGFMU).
 For loan to SHGs above ₹10 lakh and up to ₹20 lakh, a margin not

65
exceeding 10% of the loan amount exceeding ₹10 lakh may be obtained
as per the bank’s approved loan policy.

12
Coverage For covering eligible SHGs under CGFMU in Finacle, branches are

K
Under advised to carry out the following to get the accounts marked in Finacle:

.(A
CGFMU  Open the Cash Credit /Loan accounts of the SHGs sponsored by DAY-
NRLM only in identified schemes codes i.e LA440, LA528, CC019 and
CC032 as ONLY these scheme codes have been mapped in Finacle for

IT
CGFMU cover.
 To obtain consent from the eligible SHGs (in the attached format) for

K
N
covering the loan account under Credit Guarantee Fund Scheme for
Micro Units at the time of sanctioning of credit facility/ execution of the
A
document.
T
 Update the Guarantee cover code for all eligible accounts in Finacle as
A

under:
W

HACM  MIS Code  Update Guarantee Cover Code as “CGFMU”

 Ensure that only SHG loan accounts above Rs10 lakh and up to Rs 20
A

lakh where no collateral is charged and no lien is marked against their

M

savings bank account of SHGs, (irrespective of the loan outstanding,

U

even if it subsequently goes below Rs10 lakh) are covered under

K

CGFMU.
 For Cash credit or Over Draft: 12 months subject to annual review.
r.

Repayment
 For Demand/ Term Loans: as per credit plan and term of sanction which
M

may vary from 24 months to 84 months or as per the norms respective

y:

scheme/Project for project financing.

B

Repayment Loan Repayment (in monthly/quarterly

instalments)
d

First year/ first dose 24-36 months

de

Second year/ Second 36-48 months

dose
oa

Third year/ Third dose 48-60 months based on the cash flow
nl

Fourth year/ Fourth 60-84 months based on the cash flow

dose onwards
ow

NPA Norms All facilities sanctioned under DAY- NRLM would be governed by the Asset
Classification norms issued by Reserve Bank of India from time to time.
D

Discretionary
Lending Scale DLP for unsecured advances (Clean Loan)
Powers in case of Financing to SHGs (in Rupee
(DLP) lakh)
Existing Powers Revised Powers
JMG/S I 5.00 6.00
MMG/S II 5.00 10.00
133
 MMG/S 10.00 10.00
III
For loans to SHGs above Rs. 10 lakh, normal DLP as per extant guidelines
will be applicable depending on the security stipulated/obtained.
Credit 1. In order to facilitate women SHG members to graduate to
Facilities to entrepreneurs, extending loans up to Rs 10 lakh may be considered to
SHGs individual members of select matured well performing SHGs, which are
more than 2 years old and have accessed at least one dose of bank
loan with timely repayment. The individual should be running a viable
economic enterprise. The loan may be extended in accordance with the
lending policy of the Bank in place.

)
77
2. One woman in every SHG under DAY-NRLM may be provided a loan
up to Rs 1 lakh under the MUDRA scheme, if she is otherwise eligible.

65
12
K
.(A
FINANCING FARMER PRODUCER COMPANIES/ORGANIZATION (FPC/FPO)

Parameters Proposed Guidelines

IT
Definition Farmer Producer Companies: It is a company of farmer producer members

K
incorporated / registered under section IX A of the Indian Companies Act,

N
1956 (including any amendments there to or reenactment thereof) and
A
incorporated with the Registrar of Companies (RoC)
T
Farmer Producer Organizations: It is a society of farmers registered under
A

Cooperative Societies Act of the State including Mutually Aided or Self-reliant

W

Cooperative Societies Act bv whatever name it is called.

A

Target Group Farmer Producer Company /Organizations (FPC / FPO)

M

Purpose Loan facilities may be considered for any agriculture-based activities by the
FPC/FPO benefitting their farmer as
U

1) For agriculture and allied activities viz. dairy, fishery, animal husbandry,
K

poultry, bee keeping etc.

r.

2) Purchase of Input material for supplying to the farmers.

M

3) Warehouse receipt finance.

4) Infrastructure for marketing activities.
y:

5) Setting up of Common Service centers / Common Facilities.

B

6) Setting up of Processing Centre.

7) Common Irrigation Facility.
d

8) Custom Purchase/Hiring of Farm Equipment.

de

9) Purchase of High-Tech Farming Equipment.

10) Purchase of produce from members for forward linkage.
oa

11) On lending to members for their various agriculture needs as mentioned

nl

above.
12) Other productive agricultural purposes - based on investment plan
ow

submitted.
D

Note: These are indicative list of activities, however applications may be

considered for FPOs towards any other activities related to agriculture and
allied activities.
Eligibility All registered Farmer Producer Company with at least 3 months of operations
since registration.

134
 Note: FPCs / FPOs applying for collateral free loan based on Credit
Guarantee from SFAC under EGCGF, any other nodal agency (including
CGTMSE) shall comply with the eligibility criteria as specified in the Credit
Guarantee scheme document.
Nature of Cash Credit / Term Loan
Facility
Quantum of Minimum - Rs 3.00 Lakhs Maximum loan limit - Rs 500.00 Lakhs
Loan
Margin (Term For farm credit related activities: Minimum 15% For others: As per MSME
Loan) norms
Security  Hypothecation of assets like crop, livestock, equipment, machines etc.,

)
77
created out of bank’s finance.
 Mortgage of assets created out of bank’s finance.

65
 Mortgage/charge on land#.

12
 Personal Guarantee of Director/(s}.
 Third party guarantee, wherever available.

K
.(A
# In case of lease land or occasions wherever there are genuine difficulties
for creation of mortgage/charge on agriculture land where activity is
proposed, other marketable agricultural /residential/commercial immovable

IT
property/ies can be considered as security by the Sanctioning Authority.

K
N
Note I: In case of availability of Credit Guarantee, wherever land is
A
considered as primary security on which unit is established and hypothecated
assets are situated, mortgage/charge on land needs to be created as per
T
existing guidelines.
A
W

Note II: Credit Guarantee is available for collateral free loans to FPCs/FPOs
by various agencies like SFAC/NABARD/NCDC/ CGTMSE etc. Wherever
A

applicant is interested to avail such facility by payment of requisite premium,

M

it is not necessary to consider immovable property as additional collateral

U

security to the extent of credit guarantee is available and third party

K

guarantee.
r.

Note III: While financing to FPO/FPC for allied activities, mortgage/charge on

M

land has to be done after considering local rules, state and revenue acts.
y:

Method of A. Facilities towards farm credit activities:

B

Assessment Lesser of 1 and 2 mentioned below

d

1 Farm Income 6 times of net annual income (Farm

de

Receipts - Expenses incurred)

OR
oa

3 times of total annual farm receipts/value

of crops.
nl

(Anticipated from the farm, taking into

ow

consideration the type of crops, area under

cultivation, etc.)
D

Plus
Other income / 3 times of net anticipated annual
income from income/profit from economic Activities /
allied activities, allied activities (existing and proposed to be
rental and salary undertaken)/salary income if any.
income

135
 B. Other facilities:
Working capital and Term loan requirements are to be assessed on the
methods and benchmark ratios as formulated for MSMEs in Global Credit
Exposure Management Policy.
Security i. For cases without credit guarantee coverage: 75% of value of
coverage land/immovable property mortgaged/lien /charged as security and 100%
of value of other securities like assignment of LI policy (surrender value),
pledge of KVPs/NSCs/Banks TDR/Gold Ornaments, etc.
ii. For cases with Credit Guarantee on collateral free loans: No collateral

)
security required. However, primary security on which unit is established

77
and hypothecated assets situated, mortgage/charge on land needs to be
created irrespective of their value.

65
Maximum The maximum loan amount to be financed will be lower of the limits arrived

12
permissible as per “method of assessment” and the “security coverage” (for cases without
loan amount credit guarantee coverage).

K
Credit rating Facilities towards Farm Credit activities: No Rating Other facilities: As

.(A
applicable in MSME advances.
Period of loan CASH CREDIT: For 12 months subject to renewal thereafter.
and repayment TERM LOAN:

IT
Repayable in 3 to 7 years period including moratorium of 3 to 12 months

K
depending upon the purpose of loan, economic life of asset and cash flow of

N
the activity.
A
Repayment of the Term Loan can be fixed at monthly/ quarterly/ half yearly/
T
yearly rests based on the proposed activity/ cash flow of the project
A

considered for financing.

W

Disbursement  The Term Loan disbursement can be made in multiple tranches based on
A

the requirement of the project and progress of work.

 Payment may be made directly to the suppliers/seller.
M

Registration Branches need to register Bank’s charge with the concerned authorities, for
U

of charges securities offered/ stipulated for availing the credit facilities from the Bank.
K

Branches to ensure filling of bank’s charge with ROC against the credit
r.

facilities extended to FPCs within the stipulated time.

M

Insurance Assets created out of Bank’s finance and securities charged to the Bank to
secure the credit facilities to be adequately insured with Banks clause. Copy
y:

of the Insurance Policy to be kept on Branch record.

B

Finacle Term Loan: LA431

Scheme Code Cash Credit: CC026
d

Other Terms  Technical feasibility of the project to be verified by the branch before
de

and sanction of any credit facility to the FPO/FPC.

Conditions  Branch has to carry out the Pre-sanction and Post-disbursement
oa

Inspection and reports be kept on branch record.

 Branch to ensure that the Guarantee Claim in respect of the credit facility
nl

to the FPC / FPO is lodged with the respective agency in the form, manner
ow

and within such time as may be specified by them.

 Further, Branches should promptly notify the concerned agencies any
D

default in repayment of the loan by the FPO/FPC.

 Branch to obtain an undertaking from the FPC / FPO to the effect that they
shall not create any charge on the assets charged to the bank as security
for the credit facilities sanctioned to them without prior permission of the
Branch/ Bank.

136
  Branches to comply with all other terms and conditions with regard to
appraisal, follow up, due diligence, monitoring and recovery of loans as
per extant guidelines of the bank.

GROUP LOAN SCHEME (JOINT LIABILITY GROUP)

PURPOSE / The scheme aims at the following objectives.

OBJECTIVES  To augment flow of credit to tenant farmers cultivating land

)
77
either as oral lessees or sharecroppers and small farmers who
do not have proper title of their land holding through formation

65
and financing of JLGs.
 To build mutual trust and confidence between banks and

12
tenant farmers

K
 To extend collateral free loans to target clients through JLG

.(A
mechanism.
 To minimize the risks in the loan portfolio for the banks through
group approach and credit discipline.

IT
The finance to JLG is expected to be a flexible credit product
addressing the credit

K
requirements of its members, the credit may be extended in the form

N
of BKCC for crop production, consumption, marketing and other
A
productive purposes.
T
ELIGIBILITY  Tenant farmers cultivating land either as oral lessees or
A

sharecroppers and small farmers who do not have proper title of

W

their land holding are eligible for finance through formation of Joint
Liability Groups.
A

 Small & Marginal farmers.

M

TYPE OF  Term Loan: Investment line of credit

U

FACILITY  Working capital: Production line of credit

K

Note: Both facilities in single or jointly can only be provided in the form
of Baroda Kisan Credit Card (BKCC)
r.

LOAN AMOUNT  For tenant farmer: Maximum Loan of Rs.1,00,000/-

M

 For JLG: Maximum Loan of Rs.10.00lakhs

y:

 For small & marginal farmers: Maximum loan as per assessment

norms for BKCC
B

CREDIT Branch may conduct a thorough credit appraisal to avoid under or

d

APPRAISAL over financing. The finance to JLG should cover the credit
de

requirements of its members for crop production, marketing and

investment credit, besides other productive purposes in agriculture
oa

and allied activities. All other norms of financing including rate of

interest, margin on security, documentation, coverage under crop
nl

insurance scheme and personal accident insurance, etc. be

ow

followed by the branch as per

norms.
D

MARGIN As per criteria mentioned above under the chapter

“GENERAL GUIDELINES ON AGRICULTURE FINANCE”
PERIOD Same as per BKCC Scheme

137
 OTHER  Personal Accident Insurance Scheme for BKCC holders.
GUIDELINES  Crop coverage is available under Pradhan Mantri Fasal Bima
Yojana.
 The branch officers are expected to maintain harmonious relations
and continuous close contact and relationship with the JLG leader
and other members so as to convert them into good reliable
customers of the Bank. Maintenance of good credit history by the
JLGs will gradually lead to lowering of the bank’s own transaction
costs in terms of intensity of appraisal and
monitoring.

)
77
SHAHARI BAGWANI YOJNA

65
ELIGIBILITYIndividuals:

12
 Should possess independent house having 500 sq. ft of open
space for gardening. For raising of roof garden, similar area of

K
open encumbered roof space must be available.

.(A
 Should have regular source of income. Salaried person.
Professionals and business men having steady income will be
covered under the scheme. Salary certificates of the employees

IT
and income tax assessment orders of others individuals should

K
be obtained
 Tenants staying in privately rented houses should not be

N
financed. However owners can be financed even if they are not
A
staying in the house.
T
Institutions:
A

 Proprietary or partnership firms, trusts and societies can be

W

financed under this scheme. Privately owned schools, Offices,

guest houses, hospitals and hotels having at least 1000 square
A

feet of open space for gardening are eligible. Parking place and
M

play areas should be counted as garden space.

U

 Borrowing institution should have ownership or long-term or

K

lease right (at

least five years) on the property.
r.

QUANTUM OF  A unit cost of Rs. 33,000/- be taken for every 1000 square feet of
M

FINANCE garden space.

y:

 Area measuring 500 to 1000 square feet should be reckoned as

1000 square feet. Maximum amount of loan is Rs. 3 lacs for
B

individual and Rs.30 lacs for institutions.

d

 Loans for less than 20000/- should not be considered.

de

 Take-home pay norm (40 % after all deductions) should be

observed for individuals. For commercial establishments,
oa

repayment schedule should be fixed based on cash flow.

MARGIN Upto Rs. 1.00 lacs – Nil Above Rs. 1.00 lacs – 15 %
nl
ow

SECURITY Accordingly the security requirements under the scheme are

stipulated as under;
D

Category Primary Security Collateral Security

Size of Loan Criteria
Salaried Hypothecation Upto Rs. Nil
1.00 lacs

138
 Employees of plants/ Crop Above Rs. Undertaking letter from
and garden 1.00 lacs employer for routing of
equipment. upto Rs.3.00 salary through the
lacs branch backed by
standing
instructions.
Other Hypothecation Upto Rs. Nil
individuals of plants/ Crop 1.00 lacs
and garden Above Rs. Third party guarantee
equipment. 1.00 lacs of an individual with
upto Rs.3.00 worth not less than that

)
77
lacs of the
borrower.

65
Institutions Hypothecation Upto Rs. Nil

12
of plants/ Crop 1.00
and garden lacs

K
equipment. Above Rs. Collateral Security of at

.(A
1.00 lacs least 50 % of loan
upto Rs.3.00
amount plus personal
lacs guarantee of partners/

IT
trustee

K
s
/promoters.

N
REPAYMENT 12 to 24 monthly installments for individuals 12 to 36 monthly
A
installments for institutions.
T
A moratorium maximum upto 3 months may be considered on case to
A

case basis.
W

APPLICATION As per applicability to the particular case, Salary certificates,

Employers Undertaking letters, standing instructions, trust deed, Bye-
A

law of society, Resolution, Partnership deed, Income tax return etc.,

M

should be taken along with

U

application form.
K

OTHER  The scheme is basically intended to encourage and facilitate

CONDITIONS kitchen garden or decorative horticulture to be undertaken by
r.

owners, occupants and housewives.

M

 The activity need not be commercial.

y:

 There are institutions available in major cities who conduct short

term courses for developing kitchen garden and roof gardens.
B

Rotary club and some NGOs also conduct summer classes on

d

such subject either free of cost or nominal payments. The potential

de

borrower may be encouraged to undergo such courses on

developing kitchen gardens and roof gardens.
oa

 The finance made under this scheme will be eligible for

classification under Agriculture.
nl

 The garden place should be properly protected by boundary walls

ow

or fences or parapet walls.

 Finance can be extended at all centres (Urban, Metropolitan, Semi-
D

Urban and Rural). This scheme is only for Horticultural crops in

residential sites.
 No internal credit rating is required.

139
 FINANCING PROTECTED CULTIVATION

PARTICULARS REMARK
PURPOSE Loan facilities may be considered for the following activity/ies:
I. Towards construction of Green House/Poly house
II. Towards construction of Shade Net House
III. Towards construction of plastic tunnels & walk in tunnels
IV. Towards construction of anti-bird/anti hail nets
V. Towards plastic mulching
VI. Towards setting up of projects under hydroponics

)
77
VII. Towards setting up of projects under aquaponics
VIII. Towards setting up of projects under aeroponics

65
IX. Towards purchase of components/ equipment for use under above
structures

12
ELIGIBILITY  Individual Farmers including Self Help Groups (SHGs) of Joint Liability

K
Groups (JLGs) i.e. groups of individual farmers and Proprietorship firms of

.(A
farmers, directly engaged in Agriculture and Allied Activities.
 Landless agricultural labourers, tenant farmers, oral lessees and
sharecroppers whose share of landholding is within the limits prescribed for

IT
Small and Marginal Farmers.
 Corporate Farmers (Private Limited Company, LLPs, etc), Farmer Producer

K
Organizations (FPOs)/(FPCs) Companies of Individual Farmers,

N
Partnership firms and Co-operatives of farmers engaged in Agriculture and
Allied Activities.
A
T
A

Note: In case of Lease Holder, the repayment period including moratorium

W

should not exceed the remaining period of lease.

NATURE OF Term Loan
A

FACILITY
M

QUANTUM OF Need based funding without any ceiling

U

LOAN
K

AGE CRITERIA Individuals

Minimum Age: 18 years
r.

Maximum Age: No upper limit. However, if age of the applicant is more than
M

65 years, legal heir/(s) of applicant having age less than -65- years to be added
as co-applicant and /or guarantor.
y:
B

Non Individuals: No age criteria

 Loan limit up to Rs. 1.00 Lakh: Nil
d

MARGIN
de

 Loan limit of > Rs. 1.00 Lakh: Minimum 15% of the total project cost.
SECURITY Up to the cost of economic unit  Hypothecation of crops
oa

(wherever applicable) or Rs 1.60  Hypothecation of

lakh whichever is lower structure/equipments/ machinery
nl

purchased or created out of bank

ow

finance
For loans above Rs 1.60 lakhs  Hypothecation of assets like
D

Crop, livestock, equipment,

machines, etc. created out of
Bank finance.
 Mortgage of assets created out of
bank’s finance.
 Mortgage/charge on land#
 Third Party guarantee, wherever
available.
140
 # In case of lease land or occasions wherever there are genuine difficulties for
creation of mortgage/ charge on the agriculture land where activity is proposed,
other marketable residential/commercial /agricultural immovable property/ies
can be considered as collateral security by the Sanctioning Authority.
ASSESSMENT Maximum eligible limit of the borrower will be assessed as lower of the below:
OF LOAN LIMIT
1. Farm Income 6 times of net annual income
(Farm Receipts - Expenses incurred)

OR

)
77
3 times of total annual farm receipts/value of crops
(Anticipated from the farm, taking into consideration the

65
type of crops, area under cultivation. etc.)

12
PLUS
Other income 3 times of net anticipated annual income/profit from

K
/income from economic Activities / allied activities (existing and

.(A
Allied proposed to be undertaken)/salary income if any.
activities,
rental and

IT
sa1ary
income

K
OR
2. Value of
N
75% of value of land/ immovable property mortgaged /
A
Security lien/ charged security and 100% of value of other
T
securities like assignment of LI Policy (surrender value),
A

pledge of KVPs/NSCs/ Bank's TDR/Gold Ornaments

W

etc.
TENURE OF  Repayable in 3 to 9 years period depending upon the purpose of
A

LOAN & investment, economic life of asset and cash flow of the activity.
M

REPAYMENT  Moratorium period- A period of 3 to 12 months subject to cash flow of the

U

project.
K

 Repayment of the term loan can be fixed monthly/quarterly/half

/yearly/yearly based on the cropping pattern/cash flow of the borrower.
r.

DISBURSEMENT  The Term Loan disbursement can be made in multiple tranches based on
M

the requirement of the project and progress of work.

 Payment may be made directly to the suppliers/seller.
y:

REGISTRATION  Branches need to register Bank's charge with the concerned authorities, for
B

OF CHARGE securities offered/ stipulated for availing the credit facilities from the Bank.
d

 Branches to ensure filling of bank's charge with ROC against the credit
de

facilities extended within the stipulated time.

INSURANCE Assets created out of Bank's finance and securities charged to the Bank to
oa

secure the credit facilities to be adequately insured with Banks clause at the
cost of borrower. copy of the Insurance Policy to be kept on Branch record.
nl

PRE-PAYMENT Nil
ow

CHARGES
CLASSIFICATION Agriculture
D

IRAC NORMS As per purpose of advance.

FINACLE LA-431
SCHEME CODE
OTHER TERMS  Branch to process the loan applications compliance with the laid down
AND norms of financing.
CONDITIONS  The borrower should have experience or should have undergone training
from relevant department / agencies in undertaking such projects.

141
  The borrowers without any experience or training on cultivation projects
should hire skilled manpower with experience for maintaining such projects.
 Technical feasibility of the project needs to be verified and upon by the
branch prior to processing and sanction of protected sufficient satisfied the
loan proposal.
 All statutory licenses, permissions from respective authorities / departments
for setting up unit/project to be obtained and kept on record.
 The borrower should have a market linkage or plan for marketing the
harvested produces.
 End use of funds sanctioned by the bank needs to be verified.
 Bank reserves the right to inspect the project as and when required.

)
77
 Branch to inspect the unit within a fortnight from the date of disbursement
and the report should be kept on Bank’s record.

65
 All other terms and conditions with regard to appraisal, follow up, due
diligence, monitoring and recovery of loans as applicable, to be adhered.

12
K
.(A
PM FORMALIZATION OF MICRO FOOD PROCESSING ENTERPRISES (PM FME SCHEME)

Objective of  Increased access to credit by existing micro food processing

IT
the scheme entrepreneurs, FPOs, Self Help Groups and Co-operatives
 Integration with organized supply chain by strengthening branding &

K
marketing

N
 Increased access to common services like common processing facility,
A
laboratories, storage, packaging, marketing and incubation services
T
 Strengthening of institutions, research and training in the food
A

processing sector; and

W

 Increased access for the enterprises, to professional and technical

support.
A

Quantum of Need based funding to be considered looking to the requirement of the

M

Loan and project/borrower

U

Nature of
K

Facility Term loan and Working Capital in the form of Term Loan/Demand
Loan/Cash Credit/Bank Guarantee/Letter of Credit/SP/BD, Export Credit
r.

pre-shipment and post-shipment.

M

Margin Beneficiary contribution should be minimum of 10% of the project cost with
y:

balance being loan from Bank.

Period  -12- Months for Working Capital
B

 Upto 84 months for Term loan (including upto -12- months moratorium
d

period) Subject to annual review.

de

Eligibility A. Eligibility Criteria for Individual Micro Enterprises:

Criteria
oa

 Existing micro food processing units in operations.

 Existing units should be those identified, in the SLUP for ODOP (One
nl

District One product)* or by the Resource Person on physical

ow

verification. In case of units using electrical power, electricity bill

would support it being in operations. For others units, existing
D

operations, inventory, machines and sales would form the basis.

 -The enterprise should be unincorporated and should employ less
than 10 workers.
 The enterprise should preferably be involved in the product identified
in the ODOP of the district. Other micro enterprises could also be
considered.
 The applicant should have ownership right of the enterprise
142
  Ownership status of enterprise could be proprietary / partnership firm
 The applicant should be above 18 years of age and should possess
at least VIII standard pass educational qualification
 Only one person from one family would be eligible for obtaining
financial assistance. The “family” for this purpose would include self,
spouse and children
 Willingness to formalize and contribute10% of project cost and obtain
Bank loan
 Cost of the land should not be included in the Project cost. Cost of
the ready built as well as long lease or rental workshed could be

)
included in the project cost. Lease rental of workshed to be included

77
in the project cost should be for a maximum period of 3 years only.

65
B. Eligibility Criteria for Co-operatives/FPOs:

12
 FPO should have minimum turnover of Rs.1 crore and preferably be

K
engaged in processing of ODOP produce.


.(A
The cost of the project proposed should not be larger than the
present turnover;
 The members should have sufficient knowledge and experience in

IT
dealing with the product for a minimum period of 3 years.
 The cooperative/FPO should have sufficient internal resources or

K
sanction from the State Government to meet 10% of the project cost

N
and margin money for working capital.
A
T
C. Eligibility Criteria for Seed Capital for SHGs:
A


W

Only SHG members that are presently engaged in food processing

would be eligible as per PM formulation of Micro and food processing
A

units.
M
U

D. Eligibility Criteria for Credit Linked Grant for Capital Investment for
K

SHGs:
r.

 The SHGs should have sufficient own funds for meeting 10% of the
M

project cost and 20% margin money for working capital or sanction
of the same as grant from the State Government.
y:

 The SHG members should have for a minimum period of 3 years’

B

experience in processing of the ODOP product.

Subsidy A. Support to Individual Micro Enterprises
d
de

Individual micro food processing units (proprietary / partnership firm) would

oa

be provided credit-linked capital subsidy @35% of the eligible project cost

with a maximum ceiling of Rs.10.0 lakh per unit. Beneficiary contribution
nl

should be minimum of 10% of the project cost with balance being loan from
Bank.
ow

B. Support to Group Category :

D

The Scheme would support clusters and groups such as FPOs/SHGs/

producer cooperatives along their entire value chain for sorting, grading,
assaying, storage, common processing, packaging, marketing,
processing of agri-produce, and testing laboratories.

FPOs and Producer Cooperatives would be provided the following

support: i) Grant @35% with credit linkage (As per guidelines of PM

143
 Formalization of Micro Food Processing Enterprises Scheme (PM FME
Scheme)
C. Support to Self Help Groups (SHGs):

A number of SHGs are undertaking food processing activities. The

Scheme proposes to provide following support to SHGs.
Seed capital:

i. Seed capital @ Rs. 40,000/- per member of SHG for working capital
and purchase of small tools would be provided under the scheme.

)
77
ii. Priority would be given for SHGs involved in ODOP produce in giving
seed capital.

65
iii. All the members of an SHG may not be involved in the food processing.
Therefore, seed capital would be provided at the federation level of

12
SHGs.

K
iv. This would be given as grant to the SHG federation by SNA/SRLM.

.(A
SHG federation would provide this amount as a loan to the members
of SHGs to be repaid to the SHG

IT
Support to individual SHG member as a single unit of food processing

K
industry with credit linked grant @35% with maximum amount being Rs 10
lakh.
N
A
Support for capital investment at federation of SHG level, with credit
T
linked grant @35%. Maximum limit of grant in such cases would be as
A

prescribed by implementing agency.

W

Method of As per the extant guidelines for assessment for MSME Units
A

Assessment
M

Credit Benefit of credit guarantee coverage for loans offered under this Scheme
U

Guarantee should be provided to the borrower under the Credit Guarantee Trust for
K

Coverage Micro & Small Enterprises through the National Credit Guarantee Trustee
Company under their usual terms & conditions. Interest subvention of 2%
r.

under the Interest Subvention Scheme for incremental credit to MSMEs

M

2018 would also be available to the borrowers on the outstanding balance

y:

Classification Loan for Food and Agro processing unit upto an aggregate sanctioned limit
of Advance of Rs. 100.00 Crores per borrower from the banking system is to be
B

classified under “Agriculture” under priority sector.

d
de

FINANCING TO FARMERS FOR PURCHASE OF FOUR-WHEELERS i.e.JEEPS SUVS

oa

STATION WAGON ETC.

nl

Types of Demand Loan / Term Loan

ow

Facility
Purpose  For purchase of any new four wheeler including jeep, SUV, station wagon,
D

Rural Transport Vehicle etc. for using in their farm management activities.
 Financing of Used vehicles has been discontinued.
Eligibility/  Farmers including those engaged in Allied activities having family income
Beneficiar sufficient to repay the loan. In case the main source of income is from allied
y activities income certificate from Revenue Authorities/IT returns, etc to be
obtained

144
 If the main source of income of the farmer is from land based activity.
 Farmers with minimum land holding of 4 acres perennially irrigated land or
8 acres of seasonally irrigated lands
 The Regional Head is authorized to reduce the land holding criteria by
50% i.e.up to 2 acres for perennially irrigated lands and 4 acres of
seasonally irrigated lands, on merits, provided the crops grown by the
farmer is generating sufficient income to ensure repayment.
Age Minimum -21 years
Maximum-up to 70 years as on date of availment of facilities.
Subject to:
 In case borrower’s age is in the bracket of 65-70 years, the proposal to be

)
77
considered on case to case basis with prior approval from Regional Head.
 If the age of applicant/landholder exceeds 60 years, in such cases the son

65
to be made co-borrower.

12
Banking Loan can be extended to the existing /new farmer including those engaged in
Relationsh allied activities.

K
ip In applicable cases endeavour to be made to issue BKCC to the eligible farmers

.(A
who avail loan under the scheme.
Maximum New Vehicle: Rs. 15.00 Lakh*
loan *Deviation – Regional Head is authorised to increase the limit upto 50%i.e. Rs.

IT
Amount 22.50 Lakh and Zonal Head is authorised to increase the limit upto 100% i.e.

K
Rs. 30 Lakh
Within the eligibility worked out as under:

N
A
Farm Income 4 times of net annual income
T
A

OR
W

2 times of total annual farm receipt /values of crop, which

A

is lower
M

(Anticipated from the farm, taking into consideration

U

types of crops, area under cultivation, etc)

K

PLUS/OR
Other 3 time of Net anticipated annual income/profit from
r.

incomes/incomes economic activities /allied activities (existing and

M

from allied activities proposed to be undertaken) salary if any

y:

and salary income

if any
B

Margin 15%
d

Rate of One Year MCLR + Strategic Premium + 0.25%

de

interest
Repaymen 7 Years
oa

t Loan repayment will be synchronized with the income generation from the farm
activities. The due dates to be fixed taking into account the time taken for receipt
nl

of sale proceeds of the crop.

ow

The instalments may be fixed on monthly/quarterly/half yearly/ yearly based on

cropping patter/income generation.
D

Incentive  Payment of payout to all Car Dealers @ 1% of Car Loan amount disbursed
Payout against the leads directed by them and converted in to real business.
 Payment of service charges of Rs.1000/- per car loan to the Sales Executive
of Car Dealers against the leads directed by them and converted in to real
business.
Incentive Payout structures (per case)
to BC

145
 Incentive Amount to be paid On submission of After completion
on disbursement PDD within 60 of 1 year if
(50% of Incentive) Days of account remains
Disbursement standard (40% of
(10% of Incentive) Incentive)
1500 750 150 600
Insurance Comprehensive insurance of the vehicle with Bank’s clause.
Classificati Agriculture (Farm Credit)
on
Scheme LA427

)
Code

77
Other  Banker's Cheque / demand draft issued by the bank while disbursing loans

65
guidelines should be super scribed "Purpose: four wheeler Loan to Mr./Mrs.______."
 In case of the existing farmers the Branch to ensure about satisfactory

12
track record of the borrower. However, in case of new farmer, Branch to
satisfy that the conduct of their account, if any, with other Bank'/ FI is

K
satisfactory.

.(A
 Other terms and conditions for financing Four Wheelers by the Bank to
be adhered to.

IT
K
N
SCHEME FOR FINANCING TWO WHEELER (MOTORCYCLE SCOOTER) LOANS TO
A
FAMERS
T
Types of Demand Loan / Term Loan
A

Facility
W

Purpose Purchase of new Two Wheelers (Motorcycle/scooters)

A

Eligibility/ All new and existing farmers engaged in Agriculture and / or agriculture allied
M

Beneficiary activities having repayment capacity assessed by the branch based on crops
grown / allied activities / other sources.
U

Age Minimum -21 years

K

Maximum-up to 65 years as on date of availment of facilities.

r.

If the age of farmers exceeds 60 years, in such case the son to be made co-
M

borrower.
Maximum Rs.3.00 lacs
y:

loan Amount It will compromise of:

B

1. Cost of vehicle i.e. invoice price.

2. One-time vehicle tax and registration charges.
d

3. Comprehensive insurance for first years

de

Note-cost of accessories not to be included.

oa

The limit is assessed based on the income and repaying capacity of the farmer
nl

as under:
Farm Income 6 times of net annual income
ow

OR
3 times of total annual farm receipt /values of crop,
D

which is lower
(Anticipated from the farm, taking into consideration
types of crops, area under cultivation, etc)
PLUS/OR
Other 3 time of Net anticipated annual income/profit from
incomes/incomes from economic activities /allied activities (existing and
allied activities and proposed to be undertaken) salary if any
146
 salary income if any

Margin For Loan Amount upto Rs. 1 Lakh: 10 %

For Loan Amount above Rs. 1 Lakh: 25 %
Rate of One Year MCLR + Strategic Premium (Ref: BCC:BR:108/179 Dated
interest 21.04.2016)
Repayment For Loan amount upto Rs. 1 Lakh
 Repayment schedule coincide with harvesting season. (As per Banks

)
77
Norms). Maximum period- not exceeding -5- years
 Loan repayment will be synchronized with the income generation from the

65
farming & allied activities.
 The due dates to be fixed taking in to account the time taken for receipt of

12
sale proceeds of the crop.

K
 The instalments may be fixed on monthly / quarterly / half yearly/ yearly

.(A
basis depending upon cropping pattern/ allied activities / other source of
income.

IT
For Loan amount above Rs. 1 Lakh
Instalment frequency will be monthly with a maximum moratorium period of 1

K
month.

N
Security Hypothecation of vehicle A
Insurance Comprehensive insurance of the vehicle with Bank’s clause.
T
Classificatio Agriculture (Farm Credit)
A

n
W

Scheme LA416
Code
A

Disbursemen Full cost of the vehicle (Bank Loan amount plus Margin/Contribution by
M

t the borrower) is to be disbursed by issuance of Banker’s Cheque/Demand

U

of Loan Draft/NEFT in favour of authorised dealers as per the quotation.

K

No service charges for issuing DD/BC/NEFT.

Banker’s Cheque / demand draft issued by the bank while disbursing loans
r.

should be super scribed “Purpose: Two-wheeler Loan to

M

Mr./Mrs.______________________.”
Incentive to
y:

Incentive Amount to be paid on On submission of PDD

BC disbursement (80% of within 60 Days of
B

Incentive) Disbursement (20% of

d

Incentive)
de

500 400 100

Other  Branch to process and decide on the loan applications considering all our
oa

guidelines prescribed norms under Agriculture and specifically the repaying capacity
nl

of the borrower.
 In case of the farmers engaged in allied activities (main source of income
ow

is from allied activities), any of the income proof (IT return / certificate
issued by Revenue authorities/ panchayat / Municipal authorities / other
D

income proof to the satisfaction of the Branch).

 After due appraisal, the branch will convey its decision. In case of sanction
of loan, sanction letter will be sent to the applicant for execution of loan
documents and disbursement of loan.
 Loan documents as per Bank’s requirement will then executed by the
borrower in presence of Bank’s Official.
 The borrower has to deposit the margin money with the Branch only.

147
  Comprehensive Insurance with Bank Clause is to be taken without fail.
Copy of the insurance policy to be kept on bank’s record.
 In the sanction letter it should be clearly stated that Bank reserve the
right to inspect the vehicle purchased out of the Bank’s loan.
 Branch to inspect the vehicle within fortnight from the date of disbursement
and the report should be kept on Bank’s record.
 In case of the existing farmers the Branch to ensure about satisfactory
track record of the borrower.
 However, in case of new farmer, Branch to satisfy that the conduct of their
account, if any, with other Bank / FI is satisfactory.
 All other terms and conditions with regard to appraisal, follow up,

)
77
monitoring and recovery of Two Wheeler loans as applicable, to be
adhered to.

65
12
K
.(A
IT
K
N
A
T
A
W
A
M
U
K
r.
M
y:
B
d
de
oa
nl
ow
D

148
 Reasoning & Problem
Solving

)
77
65
REASONING AND PROBLEM SOLVING

12
A. Reasoning

K
.(A
Type -1

In each series, look for the degree and direction of change between the numbers. In other words, do

IT
the numbers increase or decrease, and by how much:

K
N
A
1. Look at this series: 2, 1, (1/2), (1/4)…………. What number should come next?
T
A
W
A

a). (1/3) c). (1/8)

M

b). (2/8) d). (1/16)

U
K

Answer: Option C
r.
M

Explanation:
y:

This is a simple division series; each number is one-half of the previous number. In other terms to say, the
B

number is divided by 2 successively to get the next result.

d

4/2 = 2
de

2/2 = 1
oa

1/2 = 1/2
nl

(1/2)/2 = 1/4
ow

(1/4)/2 = 1/8 and so on.

D

2. Look at this series: 7, 10, 9, 12, 11, 14, ... What number should come next?

149
 A. 7 B. 10

C. 12 D. 13

)
77
Answer: Option D

65
Explanation:

12
K
This is a simple alternating addition and subtraction series. In the first pattern, 3 is added; in the
second, 1 is subtracted.

.(A
3.Look at this series: 22, 21, 23, 22, 24, 23, ... What number should come next?

IT
A. 22 B. 24

K
N
C. 25 D. 26

A
Answer: Option C

Explanation:
T
A
W

In this simple alternating subtraction and addition series; 1 is subtracted, then 2 is added, and so on.
A
M

Type -2
U
K
r.
M

In these series, you will be looking at both the letter pattern and the number
pattern. Fill the blank in the middle of the series or end of the series.
y:
B
d

4
SCD, TEF, UGH, ____, WKL
de

.
oa

A. CMN B. UJI
nl

C. VIJ D. IJT
ow

Answer: Option C
D

Explanation:

There are two alphabetical series here. The first series is with the first letters
only: STUVW. The second series involves the remaining letters: CD, EF, GH, IJ,

150
 KL.

5. CMM, EOO, GQQ, _____, KUU

)
77
A. GRR B. GSS

65
C. ISS D. ITT

12
Answer: Option C

K
.(A
Explanation:

The first letters are in alphabetical order with a letter skipped in between each segment: C, E, G, I, K.

IT
The second and third letters are repeated; they are also in order with a skipped letter: M, O, Q, S, U

K
N
A
Type -3

T
Three of the words will be in the same classification, the remaining one will not be. Your answer will be
A
the one word that does NOT belong in the same classification as the others.
W

6. Which word does NOT belong with the others?

A
M

A. inch B. ounce
U
K

C. centimeter D. yard
r.

Answer: Option B
M

Explanation:
y:
B

An ounce measures weight; the other choices measure length.

d
de

7. Which word does NOT belong with the others?

oa
nl
ow

A. tulip B. rose

C. bud D. Daisy
D

Answer: Option C

151
 Explanation:

Tulip, rose, and daisy are all types of flowers. A bud is not.

)
77
65
12
Type -4

K
Each problem consists of three statements. Based on the first two statements, the third statement

.(A
may be true, false, or uncertain.

IT
K
8. Tanya is older than Eric. Cliff is older than Tanya.

N
Eric is older than Cliff. If the first two statements are true, the third statement is

A
A. true
T
A
W

B. false
A

C. uncertain
M
U

Answer: Option B
K

Explanation:
r.
M

Because the first two statements are true, Eric is the youngest of the three, so the third statement
must be false.
y:
B

9. All the trees in the park are flowering trees.

d
de

Some of the trees in the park are dogwoods.

All dogwoods in the park are flowering trees.
oa

If the first two statements are true, the third statement is

nl
ow
D

A. true

B. false

C. uncertain

152
 Answer: Option A

Explanation:

)
All of the trees in the park are flowering trees, So all dogwoods in the park are flowering trees.

77
65
Type -5

12
In each of the following questions, arrange the given words in a meaningful sequence and thus find the

K
correct answer from alternatives.

.(A
10. Arrange the words given below in a meaningful sequence.

IT
K
1. Key 2. Door 3. Lock

N
A
4. Room 5. Switch on
T
A
W

A. 5, 1, 2, 4, 3 B. 4, 2, 1, 5, 3
A
M

C. 1, 3, 2, 4, 5 D. 1, 2, 3, 5, 4
U
K

Answer: Option C
r.

Explanation:
M

The correct order is :

y:
B

Key Lock Door Room Switch on

d
de

1 3 2 4 5
oa

11. Arrange the words given below in a meaningful sequence.

nl

1. Poverty, 2. Population, 3. Death, 4. Unemployment and 5. Disease

ow
D

A. 2, 3, 4, 5, 1 B. 3, 4, 2, 5, 1

C. 2, 4, 1, 5, 3 D. 1, 2, 3, 4, 5

Answer: Option C

153
 Explanation:

The correct order is :

Population Unemployment Poverty Disease Death

)
77
2 4 1 5 3

65
12
K
Type -6

.(A
In each of the following questions find out the alternative which
will replace the question mark.

IT
K
N
12. CUP : LIP :: BIRD : ?

A
T
A
W

A. BUSH B. GRASS
A

C. FOREST D. BEAK
M
U

Answer: Option D
K

Explanation:
r.

Cup is used to drink something with the help of lips. Similarly birds collects grass with the help of beak to
make her nest.
M
y:

13. Ornithologist : Bird :: Archealogist : ?

B
d
de

A. Islands B. Mediators
oa

C. Archealogy D. Aquatic
nl
ow

Answer: Option C

Explanation:
D

As Ornithologist is a specialist of Birds similarly Archealogist is a specialist of Archealogy.

Type -7

154
 Here it is to verify what is true or not.

14. A train always has

)
77
A. Passengers B. Driver

65
C. Guard D. Engine

12
K
Answer: Option D

.(A
Explanation:

IT
There is no train without engine other options are valid when train is running.

K
N
15. Yesterday I saw an ice cube which had already melted due to heat of a nearby furnace.

A
T
A
W

A. Always B. Never
A

C. Often D. Sometimes
M
U
K

Answer: Option B
r.

Explanation:
M
y:

Since the ice cube had already melted due to the heat of a nearby furnace so after this ice cannot
B

remain as ice cube.

d
de

Type -8
oa
nl

Each of the following questions consists of five figures marked A, B, C, D and E called the Problem
Figures followed by five other figures marked 1, 2, 3, 4 and 5 called the Answer Figures. Select a
ow

figure from amongst the Answer Figures which will continue the same series as established by the
five Problem Figures.
D

16. Select a figure from amongst the Answer Figures which will continue the same series as

155
 established by the five Problem Figures.

Problem Figures: Answer Figures:

)
77
65
(A) (B) (C) (D) (E) (1) (2) (3) (4) (5)

12
K
A. 1 B. 2

.(A
C. 3 D. 4

E. 5

IT
K
Answer: Option C

N
A
Explanation:

T
In each step, element at the upper-right position gets enlarged, inverts vertically and reaches
A
the lower-left corner; the existing element at the lower-left position, is lost and a new small
W

element appears at the upper-right position.

A
M
U
K

17. Select a figure from amongst the Answer Figures which will continue the same series as
r.

established by the five Problem Figures.

M

Problem Figures: Answer Figures:

y:
B
d
de

(A) (B) (C) (D) (E) (1) (2) (3) (4) (5)
oa
nl

A. 1 B. 2
ow

C. 3 D. 4
D

E. 5

Answer: Option B

156
 Explanation:
In each step, the elements move in the sequence.

Type -9

)
77
Each of the following questions consists of two sets of figures. Figures A, B, C and D constitute the
Problem Set while figures 1, 2, 3, 4 and 5 constitute the Answer Set. There is a definite relationship

65
between figures A and B. Establish a similar relationship between figures C and D by selecting a
suitable figure from the Answer Set that would replace the question mark (?) in fig. (D).

12
K
.(A
IT
18. Select a suitable figure from the Answer Figures that would replace the question mark (?).

K
N
Problem Figures: Answer Figures:

A
T
A
W

(A) (B) (C) (D) (1) (2) (3) (4) (5)

A
M
U

A. 1 B. 2
K

C. 3 D. 4
r.
M

E. 5
y:

Answer: Option C
B

Explanation:
d
de

The half-shaded leaf rotates 135oACW and the unshaded leaf rotates 135oCW.
oa
nl

19. Select a suitable figure from the Answer Figures that would replace the question mark (?).
ow

Problem Figures: Answer Figures:

D

157
 (A) (B) (C) (D) (1) (2) (3) (4) (5)

A. 1 B. 2

)
77
C. 3 D. 4

65
E. 5

12
Answer: Option B

K
Explanation:

.(A
Each one of the upper elements is replaced by an element similar to the lower element(s) and each
one of the lower elements is replaced by an element similar to the upper element(s).

IT
K
N
Type -10

A
T
From amongst the figures marked (1), (2), (3) and (4), select the figure which satisfies the same conditions of
A
placement of the dots as in figure (X).
W
A
M

20. Select the figure which satisfies the same conditions of

U

placement of the dots as in Figure-X.

K
r.
M
y:
B
d
de

A. 1 B. 2
oa

C. 3 D. 4
nl
ow

Answer: Option D
D

Explanation:

In fig. (X), one of the dots lies in the region common to the
circle and the square only and the other dot lies in the region
common to all the three figures -the circle, the square and the
triangle. In each of the alternatives (1), (2) and (3), there is no

158
 region common to the square and the circle only. Only fig. (4)
consists of both the types of regions.
21. Select the figure which satisfies the same conditions of placement of the dots as in Figure-X.

)
77
65
12
K
A. 1 B. 2

.(A
C. 3 D. 4

IT
Answer: Option C

K
Explanation:

N
A
In fig. (X), the dot is contained in the region common to the triangle and the circle only. Out of the
T
four alternatives, only fig. (3) contains a region common to the triangle and the circle only.
A
W

Type -11
A
M

22. Choose the figure which is different from the rest.

U
K
r.
M

(1) (2) (3) (4) (5)

y:
B
d
de

A. 1 B. 2
oa

C. 3 D. 4
nl

E. 5
ow

Answer: Option A
D

Explanation:

The pins, equal in number to the number of sides in the main figure are attached to the midpoint of a
side of the main figure in case of figures (2), (3), (4) and (5). In fig. (1), these pins are attached to a

159
 vertex of the main figure.

23. Choose the figure which is different from the rest.

)
77
65
12
(1) (2) (3) (4) (5)

K
.(A
A. 1 B. 2

IT
C. 3 D. 4

K
E. 5

N
A
Answer: Option C
T
A
Explanation:
W

In all other figures, the two line segments are parallel to each other.
A
M
U

Type - 12
K
r.

A cube is a 3 - dimensional solid object bounded by 6 sides, with three meeting at each vertex.
M

It features all right angles and a height, depth and width that are all equal ( length = height = width ).
y:
B

Important Facts:
d
de

I. A cube has 6 square facesor sides. (from Img 1)

oa

II. A cube has 8 points (vertices). (from Img 1)

nl

III. A cube has 12 edges. (from Img 1)

ow

IV. Only 3 sides are visible at a time ["Joint Sides"] and these
joint sides can never be on opposite side to each other.
D

V. Most dice are cube shaped, featuring the numbers 1 to 6 on

the different faces.

VI. 11 different ‘nets’ can be made by folding out the 6 square faces of a cube. (from Image 2)

160
 )
77
65
12
K
.(A
IT
K
N
A
Problem on cube/Dice
T
A
W

A cube (or a colour cube) can be categorised after cutting it into four categories:
I.) Central cube (Yellow): In middle of faces & has only one coloured side.
A
M
U

Total number of cubes with singe color on any side with the formula:
K

6(X-2)2
r.
M

II.) Middle Cube (Green): In middle of edges and have two coloured sides.
y:

Total number of cubes with singe color on any side with this formula:
B
d

12(X-2)
de
oa

III.) Corner cube (Blue): Cubes on corners and have 3 coloured sides.
nl

A cube can have only 8 cut-corner cubes with colors on three sides.
ow

Hence answer will be always the same - 8.

D

IV.) Inner Cube (No Color): Cubes inside faces and has no coloured side.

We can find out the total number of cubes without any color on any side (inner cube) with this
formula: (X-2)3

161
 Question Type 1 : Determining the opposite sides

Question Type 2 : Cutting a Colorful Cube

)
77
Examples: Question Type 1

65
1. Study these cubes and find out the numbers on opposite sides of front facing sides of these.

12
K
.(A
IT
K
N
Explanation:

A
To solve this question we'll follow this rule - 'Only 3 sides are visible at a time (called "Joint Sides") and
T
these joint sides can never be on opposite side to each other.'
A
W

1. From cube A and B - 1, 2, 3, 4 and 5 can never be on opposite side of 3 (common number in cube A and
A

B).
M

Hence the answer will be = 6

U
K

2. From cube B and C - 1, 3, 4, 6, and 5 can never be on opposite side of 5

r.

(common number in cube B and C).

M
y:

the answer will be = 2

B

3. From cube A and C - 1, 2, 3, 5 and 6 can never be on opposite side of 1

d
de

(common number in cube A and C).

oa

the answer will be = 4

nl

Conclusion :
ow

Opposite to 1 = 4
D

Opposite to 3 = 6

Opposite to 5 = 2

Examples: Question Type 2

162
 A solid cube of each side 8 cm, has been painted red, blue and black on pairs of opposite faces.

It is then cut into cubical blocks of each side 2 cm.

)
77
65
12
K
.(A
IT
K
N
A
T
A
How many cubes have no face painted?
W
A

A) 0 B) 4 C) 8 D) 12
M
U

Explanation : option C
K
r.

Cubes have no face painted = Inner cubes (No Colour): We can find out the total number of cubes
M

without
y:

any colour on any side (inner cube) with this formula: (X - 2)3
B

Implementation of formula: X = 4
d
de

(4 - 2)3 = 23 = 8
oa
nl

Type - 13
ow

Choose the alternative which is closely resembles the mirror image of the given combination.
D

A. 1 B2 C3 D4

163
 Answer: Option B

Type - 14

)
77
Choose a figure which would most closely resemble the unfolded form of Figure (Z).

65
12
K
.(A
IT
K
A. 1 B 2 C 3 D 4

N
Answer : Option : C

A
Type - 15
T
A
Choose the alternative which is closely resembles the water-image of the given combination.
W
A
M
U
K

A1 B2 C3 D4
r.
M

Answer : Option : D
y:

Directions 1 : Study the following information carefully and answer the questions
B

given below:
d

Four friends Amrita, Deepa, Smita and Rhea complete their PhD in different number of years. The
de

one who took maximum time took eight years to complete her PhD while the one who took the least
time took only three years to complete it. Rhea took more time only than Amrita and completed her
oa

PhD in five years. Smita did not take longer time than Deepa to complete her PhD.
nl

Questions:
ow

1. How many years did Amrita take to complete her PhD?

D

1) 8 2) 3 3) 4 4) Either 6 or 7 5) Cannot be determined

ANS : 2

164
 2. How many years did Smita take to complete her PhD ?

1) 8 2) 3 3) 4 4) 7 5) Cannot be determined

)
77
ANS : 5

65
12
3. Who amongst the following took the maximum number of years to complete PhD ?

K
1) Amrita 2) Rhea 3) Smita 4) Deepa 5) Cannot be determined

.(A
ANS : 4

IT
K
EXPLANATION : Rhea take more time only than Amrita that means in four above persons

N
Amrita takes leat time i.e 3 years and Rhea takes 5 years . Remaining two takes more than 5 years .

A
Smita did not take longer time than Deepa that means Deepa is taking maximum time for
T
completion of Ph D i.e 8 years and Smita is taking either 6 or 7 years.
A
W

4. How many meaningful English words can be formed with the letters TEID using
A

each letter only once in each word?

M
U

1) None 2) One 3) Two 4) Three 5) More than three

K

ANS : 4
r.

Explanation : EDIT , TIDE, DIET

M
y:
B

5. If it is possible to make only one meaningful word with the second, fifth, eighth and
the eleventh letters (when counted from left hand side) of the word DEVELOPMENT,
d

which would be the second letter of the word from the left ? If more than one such
de

word can be formed, give X as the answer. If no such word can be formed, give Z as
your answer.
oa

1) E 2) L 3) T 4) X 5) Z
nl

ANS : 1
ow

Explanation : E L M T ----→ MELT

D

Directions 2 : Study the following information carefully and answer the questions
given below:

165
 Eight friends P, Q, R, S, T, V, W and Z, out of whom one is a Pilot, Professor, Businessman, Doctor,
Lawyer, Banker, Cricketer or an Architect (but not necessarily in the same order), are sitting among
a circular table, facing the centre.

)
77
▪ S who is a banker sits third to right of Z
▪ The professor and the architect are immediate neighbors of each other, neither the professor

65
the architect is an immediate neighbor of either Z or S.
▪ Cricketer and the pilot are immediate neighbors of each other. Neither Z nor W is a pilot.

12
▪ The one who is a professor sits second to the right of T who is a lawyer. V who is a cricketer is

K
not an immediate neighbor of the banker.

.(A
▪ Only R sits between the professor and the doctor. P sits third to the right of the pilot

Questions:

IT
K
1. Which of the following pairs represents the immediate neighbours of the doctor ?

N
A
1) Professor-businessman 2) Pilot – professor 3) Cricketer - businessman 4) Lawyer –
architect 5) None of these T
A
ANS : 3
W
A
M

2. What is the position of the businessman with respect to the pilot?

U

1) Third to the left 2) Second to the left 3) Immediately to the right 4) Fourth to the right
K

5) Second to the right

r.
M

ANS : 1
y:

3. Who sits third to the right of the professor ?

B

1) The banker 2) Q 3) The cricketer 4) The lawyer 5) None of these

d

ANS : 3
de

4. Which of the following is true regarding R ?

oa

1) He is a doctor 2) He is an immediate neighbour of the pilot 3) R sits between Q and T

nl

4) He is an immediate neighbour of the professor 5) None is true

ow

ANS : 4
D

5. How many people sit between the ‘banker’ and ‘W’ when counted in
anticlockwise direction from the banker?

166
 1) None 2) One 3) Two 4) Three 5) Four

ANS : 3

)
77
6. Who amongst the following is a pilot ?

65
1) P 2) Q 3) R 4) Z 5) None of these

12
ANS : 2

K
.(A
7. What is the profession of Z ?

1) Businessman 2) Architect 3) Professor 4) Doctor 5) None of these

IT
K
ANS : 4

N
A
8. Who amongst the following sits exactly between T and Q ?
T
A
1) Cricketer 2) Architect 3) Professor 4) Doctor 5) Banker
W

ANS : 5
A
M
U

Help
K

P Architect Q Pilot R Businessman S Banker T Lawyer V Cricketer W Professor

r.

Z Doctor
M
y:

Directions 3 : Study the following information carefully and answer the questions
B

given below:
d

A, B, C, D, E and F are seated in a circle facing the centre. A and C are seated adjacent to each other
de

and E and B are also seated adjacent to each other. B is to the immediate left of F. There are two
oa

persons between D and E. A is not seated adjacent to E.

nl

Questions:
ow

1. How many persons are seated between F and E if we go anticlockwise from F to E ?

D

1) 1 2) 2 3) 3 4) Cannot be determined 5) None of these

ANS : 3

167
 2. Who is to the immediate left of E?

1) C 2) B 3) F 4) Cannot be determined 5) None of these

ANS : 1

)
77
65
Directions (Q. 3-5): Four of the following five are alike in a certain way based on their seating
positions in the above arrangement and so form a group. Which is the one that does not belong to

12
the group ?

K
3. 1) BA 2) BD 3) CF 4) DE 5) FC

.(A
ANS : 3

IT
K
4. 1) BEC 2) CAD 3) FDA 4) DFB 5) ADF

N
ANS : 3

A
T
A
5. 1) AC 2) EB 3) CE 4) AF 5) DA
W

ANS : 4
A
M
U

Help Seatig arrangement B F D A C E ( Anti Clock wise )

K
r.
M

Directions 4 : Study the following information carefully and answer the questions
given below:
y:
B

Q, R, S, T, U and V are seated to a straight line facing North. S is second to the right of T and T is
second to the right of Q. R is to the left of Q and is second to the left of V.
d
de

Questions:
oa

1. How many persons are seated between T and V?

nl

1) 1 2) 2 3) 3 4) 4 5) None of these
ow

ANS : 5
D

2. Four of the following five are alike in a certain way based on their seating position
in the above arrangement and so form a group. Which is the one that does not belong
to the group ?

168
 1) QV 2) VT 3) US 4) UT 5) RQ

ANS : 4

)
77
3. What is Q's position with respect to S?

65
1) Third to left 2) Immediate Next 3) Second to left 4) Fifth to left 5) None of these

12
ANS : 3

K
.(A
4. Which of the following represents persons seated at the two extremes ?

1) RQ 2) US 3) SQ 4) SR 5) None of these

IT
K
ANS : 4

N
5. If S : T and T : Q, then U : ?

A
1) T 2) V 3) Q 4) S 5) R
T
A
ANS : 2
W

Help Seating arrangement R Q V T U S ( starting from left )

A
M
U

Study the following information carefully and answer the questions given below:
K

P, T, Q, U, S and R are standing in a straight line facing North. S is standing third from the left end
r.

of the line. R is fourth to the right of T. Neither P nor R is at the end of the line. Q is second to the
M

left of P.
y:

Questions:
B

1. Who amongst the following is standing fourth from the left end of the line?
d
de

1) Q 2) R 3) P 4) U 5) None of these
oa

ANS : 3

2. If TQ : SP then, ? : RU
nl
ow

1) QS 2) TS 3) SP 4) QT 5) None of these

ANS : 3
D

3. Who amongst the following are at the extreme ends of the line?

1) TU 2) TR 3) RU 4) TP 5) US

169
 ANS : 1

Directions (Q. 4-5): Four of the following five are alike in a certain way based on their positions in

)
77
the above arrangement and so form a group. Which of the following does not belong to the group ?

65
4. 1) SRP 2) QPS 3) PUR 4) TSQ 5) TSU

12
ANS : 5

K
.(A
5. 1) UR 2) PS 3) QT 4) SR 5) RP

ANS : 4

IT
K
N
Help Seating arrangement T Q S P R U ( Starting from left side )

A
T
A
W

6. Statements: Some red are blue. Some blue are grey. All grey are white. No white is black.
A

Conclusions: I. No black is grey. II. Some blue are white. III. Some black are red.
M

IV. No black is red.

(1) Only I and II follow
U

(2) Only either III or IV follows

K

(3) Only I and either III or IV follow

(4) Only I, II and either III or IV follow
r.

(5) None of these

M

ANS : 4
y:

7. Statements: All red are white. Some white are pink. Some pink are yellow. No yellow is blue.
B

Conclusions: I. No blue is pink. II. Some pink are red. III. Some blue are red. IV. Some blue are
pink.
d

(1) None follows

de

(2) Only either I or IV follows

oa

(3) Only I follows

(4) Only III & IV follow
nl

(5) All follow

ANS : 2
ow

8. Statements: Some blue are black. Some black are grey. All grey are red. All red are pink.
D

Conclusions: I. Some red are black. II. Some pink are black. III. Some pink are grey. IV. Some red
are blue.
(1) Only I & II follow
(2) Only II & III follow
(3) Only I, II and III follow

170
 (4) All follow
(5) None of these
AN : 3

9. Statements: All green are pink. Some pink are black. Some black are blue. All blue are white.

)
77
Conclusions: I. Some black are white. II. Some blue are pink. III. Some pink are green. IV. No green
is white.

65
(1) None follows
(2) Only I and III follows

12
(3) Only III follows
(4) Only either I or II follows

K
(5) None of these

.(A
ANS : 2

10. Statements: Some blue are white. All white are red. All red are pink. Some pink are yellow.

IT
Conclusions: I. Some yellow are red. II. Some yellow are white. III. All red are white. IV. Some
yellow are blue.

K
(1) None follows

N
(2) Only I follows

A
(3) Only II follows
(4) Only II & III follow T
A
(5) None of these
ANS : 1
W
A

B. Problem solving:
M
U
K

1. A train running at the speed of 60 km/hr crosses a pole in 9 seconds. What is the length of the train?
r.
M
y:

A. 120 metres B. 180 metres

B

C. 324 metres D. 150 metres

d
de

Answer: Option D
oa

Explanation:
nl
ow

5 50
Speed= 60 x =
18 m/sec 3 m/sec.
D

50
Length of the train = (Speed x Time) = x9
3 m = 150 m.

171
 )
77
2.If a person walks at 14 km/hr instead of 10 km/hr, he would have walked 20 km more. The actual
distance travelled by him is:

65
12
A. 50 km B. 56 km

K
.(A
C. 70 km D. 80 km

IT
Answer: Option A

K
Explanation:

N
A
Let the actual distance travelled be x km.

x x + 20 T
A
Then, =
W

10 14
A

14x = 10x + 200

M

4x = 200
U
K

x = 50 km.
r.
M

3. A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum
y:

is:
B
d
de

A. Rs. 650 B. Rs. 690

oa

C. Rs. 698 D. Rs. 700

nl
ow

Answer: Option C
D

Explanation:

S.I. for 1 year = Rs. (854 - 815) = Rs. 39.

S.I. for 3 years = Rs.(39 x 3) = Rs. 117.

172
 Principal = Rs. (815 - 117) = Rs. 698.

4. There is 60% increase in an amount in 6 years at simple interest. What will be the compound

)
interest of Rs. 12,000 after 3 years at the same rate?

77
65
A. Rs. 2160 B. Rs. 3120

12
C. Rs. 3972 D. Rs. 6240

K
.(A
E. None of these

IT
Answer: Option C

K
Explanation:

N
A
Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years. T
A
W

100 x 60
R= = 10% p.a.
A

100 x 6
M

Now, P = Rs. 12000. T = 3 years and R = 10% p.a.

U
K

10
C.I.
r.

= Rs. 12000 x 1+ 3- 1
M

100
y:

331
B

= Rs. 12000 x
1000
d
de

= 3972.
oa

5. The cost price of 20 articles is the same as the selling price of x articles. If the profit is 25%, then the
value of x is:
nl
ow

A. 15 B. 16
D

C. 18 D. 25

173
 Answer: Option B

Explanation:

)
77
Let C.P. of each article be Re. 1 C.P. of x articles = Rs. x.

65
S.P. of x articles = Rs. 20.

12
Profit = Rs. (20 - x).

K
20 - x
x 100 = 25

.(A
x

2000 - 100x = 25x

IT
125x = 2000

K
N
x = 16.

A
T
A
6. Two students appeared at an examination. One of them secured 9 marks more than the other and
W

his marks was 56% of the sum of their marks. The marks obtained by them are:
A
M

A. 39, 30 B. 41, 32
U
K

C. 42, 33 D. 43, 34
r.
M

Answer: Option C
y:

Explanation:
B
d
de

Let their marks be (x + 9) and x.

oa

56
Then, x + 9 = (x + 9 + x)
nl

100
ow

25(x + 9) = 14(2x + 9)

3x = 99
D

x = 33

So, their marks are 42 and 33.

174
 7. A is two years older than B who is twice as old as C. If the total of the ages of A, B and C be 27, the
how old is B?

)
77
A. 7 B. 8

65
C. 9 D. 10

12
E. 11

K
.(A
Answer: Option D

Explanation:

IT
K
N
Let C's age be x years. Then, B's age = 2x years. A's age = (2x + 2) years.

A
(2x + 2) + 2x + x = 27
T
A
5x = 25
W

x = 5.
A
M

Hence, B's age = 2x = 10 years.

U
K

8. A man has Rs. 480 in the denominations of one-rupee notes, five-rupee notes and ten-rupee notes.
r.

The number of notes of each denomination is equal. What is the total number of notes that he has ?
M
y:
B

A. 45 B. 60
d

C. 75 D. 90
de
oa

Answer: Option D
nl

Explanation:
ow
D

Let number of notes of each denomination be x.

Then x + 5x + 10x = 480

175
 16x = 480

x = 30.

Hence, total number of notes = 3x = 90.

)
77
65
9. A grocer has a sale of Rs. 6435, Rs. 6927, Rs. 6855, Rs. 7230 and Rs. 6562 for 5 consecutive months.
How much sale must he have in the sixth month so that he gets an average sale of Rs. 6500?

12
K
.(A
A. Rs. 4991 B. Rs. 5991

C. Rs. 6001 D. Rs. 6991

IT
K
N
Answer: Option A

A
Explanation:
T
A
W

Total sale for 5 months = Rs. (6435 + 6927 + 6855 + 7230 + 6562) = Rs. 34009.
A
M

Required sale = Rs. [ (6500 x 6) - 34009 ]

U

= Rs. (39000 - 34009)

K

= Rs. 4991.
r.
M

10. Two numbers are respectively 20% and 50% more than a third number. The ratio of the two
numbers is:
y:
B
d

A. 2 : 5 B. 3 : 5
de

C. 4 : 5 D. 6 : 7
oa
nl

Answer: Option C
ow

Explanation:
D

Let the third number be x.

176
 120x 6x
Then, first number = 120% of x = =
100 5

)
77
150x 3x
Second number = 150% of x = =

65
100 2

12
K
6x 3x
Ratio of first two numbers = : = 12x : 15x = 4 : 5.

.(A
5 2

IT
11. What least number must be added to 1056, so that the sum is completely divisible by 23 ?

K
N
A
T
A
A. 2 B. 3
W

C. 18 D. 21
A

E. None of these
M
U
K

Answer: Option A
r.

Explanation:
M
y:
B

23) 1056 (45

d

92
de

---
oa

136
nl

115
ow

---
D

21

---

177
 Required number = (23 - 21)

= 2.

)
77
1. In the first 10 overs of a cricket game, the run rate was only 3.2. What should be the run rate in the
remaining 40 overs to reach the target of 282 runs?

65
12
K
A. 6.25 B. 6.5

.(A
C. 6.75 D. 7

IT
K
Answer: Option A

N
Explanation:

A
282 - (3.2 x 10) 250 T
A
Required run rate = = = 6.25
40 40
W
A
M
U
K
r.

13. The average age of 30 boys of a class is equal to 14 years. When the age of the class teacher is included
M

the average becomes 15 years. Find the age of the class teacher.
y:
B

A. 40 yrs B. 45 Yrs C. 50 Yrs D. 55 yrs

d
de

Explanation:
oa
nl

Total ages of 30 boys = 14x30 = 420 yrs

ow

Total ages when class teacher is included : 15X31 = 465 yrs

Age of the Class teacher = 465-420= 45 Yrs

D

Option B

Direct Formula :

178
 Age of New entrant = New Average + No. of old memebersX Increase in average

i.e. 15+ 30 (15-14) = 45 years. Option B

)
77
65
14. A boy buys oranges at 9 for Rs.16 and sells them at 11 for Rs.20. What his gain or loss percent?

12
K
Explanation:

.(A
The above problem can be written in the format as given below:-

IT
K
N
Purchase 9 16

A
Sales 11 20
T
A
W

% of profit or loss = 9x20 - 16x11

A

-----------------x 100
M
U

16x11
K
r.

= 25/11 %
M

Since the sign is + , there is a gain of 25/11 %.

y:
B
d

15. 16 men can do a piece of work in 10 days. How many men are needed to complete the work in 40 days?
de
oa

Explanation:
nl
ow

M1D1W2= M2D2W1
D

i.e. 16x10= M2 X 40

179
 M2 = 4 Men. Answer: 4 men are required.

-------------------------------------------------------------------------------------------------------

16. A is 3 years older to B and 3 years younger to C, while B and D are twins. How many years older is C to

)
D?

77
65
a)2

12
b)3
c)6

K
d)12

.(A
e)24

IT
Answer: Option C

K
N
Explanation:

A
Since B and D are twins, so B = D. T
A
Now, A = B + 3 and A = C - 3.
W
A

Thus, B + 3 = C - 3 D + 3 = C-3 C - D = 6.
M
U

17. In a group of cows and hens, the number of legs are 14 more than twice the number of heads. The
K

number of cows is
r.

A. 5
M

B. 7
y:

C. 10
B

D. 12
d
de

Answer: Option B
oa
nl

Explanation:
ow

Let the number of cows be x and the number of hens be y.

D

Then, 4x + 2y = 2 (x + y) + 14 4x + 2y = 2x + 2y + 14 2x = 14 x = 7.

180
 ENGLISH
Direction:

)
77
Please read the following paragraph carefully and answer the questions given

65
below it:

12
K
Bank believes in creating and maintaining Enterprise-wide strong credit & risk culture on

.(A
an on-going basis. The Bank strikes a balance between the business growth and the
incremental risk for deciding the business plan and strategy for each year, but as a
matter of policy, the bank seeks to maintain a low risk profile, however with due

IT
flexibility so as to capture remunerative business at all points of time.

K
Accordingly the bank mends its lending channel to suit its risk–return trade off policy

N
suitably blended to business needs. For the period under review, in addition to laying

A
stress in meeting specific commitments in terms of RBI and Government of India
directives, the focus area and target markets are:
T
A
Small and Medium Enterprises (SMEs) are likely to grow faster in view of high priority
being accorded to this segment.
W

It is aimed that Retail Finance grows further with specific thrust on Housing Loans.
A

Infrastructure Financing is also accorded added focus.

M
U

Financing of need-based requirements of various sectors especially health, housing,

education, employment; manufacturing sector, agriculture including irrigation and
K

promotion of exports on the lines of policy announcements made by Government of

r.

India.
M

Considering the dynamic nature of Target Market and risk perception, Credit Policy
y:

Committee will identify the focus industries and sectors to suitably capture business
potential of the new emerging sectors from time to time.
B
d
de

1. Bank believes in creating and maintaining a strong ___________culture on an on-

going basis.
oa

a) Target
nl

b) Business strategy
ow

c) Credit
D

d) Risk
e) Credit & risk

181
 2. The Bank strikes a balance between the business growth and the incremental risk for
deciding the _______for each year.
a) Risk plan

)
b) Credit Plan

77
c) Strategic plan

65
12
d) Business plan

K
e) Growth plan

.(A
3. Bank seeks to maintain a low risk profile as well as the due flexibility so as to capture
__________.

IT
a) Remunerative business

K
b) Credit risk

N
A
c) Business risk
d) Business targets T
A
W

e) Strategic targets.
A

4. Bank mends its lending channel to suit its ______trade off policy suitably blended to
M

business needs.
U

a) Credit risk
K

b) risk–return
r.
M

c) Market risk
y:

d) Strategic risk
B

e) Business risk
d
de

5. Laying stress in meeting specific commitments in terms of RBI and Government of

India directives, which one is not the focus area.
oa

a) Large Corporate
nl

b)Housing Loans
ow

c)Infrastructure Finance
D

d)Health
e) Agriculture

182
 6. Credit Policy Committee identifies the focus industries and sectors to suitably capture
business potential of the new________.
a) Priority Sector

)
b) Manufacturing Sector

77
c) Agriculture Sector

65
12
d) Emerging sectors

K
e) Education sector.

.(A
Direction: Choose the word/group of words which is most similar in meaning to

IT
the following words.

K
7. Abundant:

N
A
a) Plentiful
b) Scarce T
A
W

c) Shortage
A

d) Deficient
M

e) Complete
U
K

8. Conceal:
r.

a) Prevent
M

b) Paste
y:

c) Hide
B
d

d) Confine
de

e) Limit
oa

9. Credible:
nl

a) False
ow

b) Truce
D

c) Worth
d) Falter
e) Believable

183
 10. Peasant:

a) Labourer

)
77
b) Worker

65
c) Caretaker

12
d) Farmer

K
e) House keeper

.(A
11. Compassion:

IT
K
a) Kindness

N
A
b) Carelessness
c) Weakness T
A
d) Dullness
W
A

e) Performance
M
U
K

Please fill in the blanks with the most appropriate word from those given below:
r.
M

12. I ________ for my duties last Monday.

y:

a) Join
B

b) Joined
d
de

c) Reported
oa

d) Report
nl

e) Admitted
ow

13.________ is better than cure.

D

a) Treatment
b) Prevention
c) Caring

184
 d) Health
e) Fitness
14. I am not sorry________what I have done.

)
77
a) To

65
b) And

12
c) Since

K
d) For

.(A
e) Of

IT
15. There is nothing__________worry about.

K
a) To

N
A
b) On
c) For T
A
d) In
W
A

e) From
M

16. Soldiers______hard for victory.

U
K

a) Try
r.

b) Tried
M

c) Trying
y:

d) Work
B

e) Fight
d
de

17. We ________searching for the circular for long.

oa

a) Had
nl

b) Have
ow

c) Haven’t
D

d) Have been
e) Have to
18. Customers now expect Banks to ______satisfy but create a wow experience for
them.

185
 a) Only
b) Fully
c) Invariably

)
77
d) Definitely

65
e) Not only

12
19. Deteriorating asset quality has _____pressure on the profitability of Banks.

K
a) Let

.(A
b) Create

IT
c) Cause

K
d) Causing

N
A
e) Put

T
20. ________ large scale retirement in the next few years, Banks are likely to face the
A
challenge of grooming the new recruits in a very short span of time.
W

a) By
A
M

b) With
U

c) Through
K

d) In view of
r.
M

e) For
y:

21. In wake of demonetization unified payment interface (UPI) is_____ to gain

popularity among masses.
B
d

a) mostly
de

b) probably
oa

c) likely
nl

d) ideally
ow

e) obsolutely
D

22. The norm_____has been that banks reduce their lending rates after Reserve bank
Of India announces its monetary policy.
a) till now

186
 b) so far
c) upto now
d) till then

)
77
e) which

65
12
Direction: Identify the incorrect part of the sentence. If the sentence is correct as

K
it is given and 'No correction is required', mark (e) as the answer.

.(A
23). I & Sonu /will take care /for the/activities on Monday
(a) (b) (c) (d) (e) no error

IT
24.This is /the Player who win /the bronze/in the Competition.

K
N
(a) (b) (c) (d) (e) no error

A
25).The Golden rule is/ to behave with a person /as I will like others /to behave with us.
T
A
(a) (b) (c) (d) (e) no
W

error
A

26.).His statement/is very much/ similar about/ yours.

M

(a) (b) (c) (d) (e) no error

U
K

27.) My friend has been/ married with/ the richest man/ of this village.
r.

(a) (b) (c) (d) (e) no error

M

28.) He left to /Mumbai for some/official work /this morning.

y:

(a) (b) (c) (d) (e) no error

B
d

29.) Before make/a good presentation/you should/practice a lot.

de

(a) (b) (c) (d) (e) no error

oa

30.) I do not know/ why you did not go./ If I were you,/I should have gone.
nl

(a) (b) (c) (d) (e) no error

ow
D

Choose the most suitable preposition

187
 31) Simran has an inclination _____ working in advances department.
(a) upon
(b) at

)
77
(c) in

65
(d) for

12
(e) on

K
32.) I beg _____ differ on this issue.

.(A
(a) of

IT
(b) from

K
(c) by

N
A
(d) to
(e) on T
A
33.).The Rajasthan Royals struggled______ score runs and were eventually defeated
W

____ the Delhi dare

A
M

Devils.
U

(a) for; from

K

(b) to; by
r.
M

(c) to; from

y:

(d) at; by
B

(e) at; from

d

34.) Stock statement is to be submitted to the bank ____the seventh of every month.
de

(a) of
oa

(b) from
nl
ow

(c) by
(d) to
D

(e) on

35.) You must beware ______ fraudsters.

188
 (a) of
(b) from
(c) by

)
77
(d) to

65
(e) on

12
36.) What is the time ____ your watch?

K
(a) of

.(A
(b) from

IT
(c) by

K
(d) to

N
A
(e) on
37).She gazed ____ the beautiful scenery. T
A
(a) at
W
A

(b) in
M

(c) by
U
K

(d) to
r.

(e) on
M
y:

Write the word opposite in meaning to the following words

B

38.) Reluctance:
d
de

(a) Refusal
oa

(b) Dearth
nl

(c) Acceptance
ow

(d) Perseverance
D

(e) Disagreement.

39.) Retain:

189
 (a) Regain
(b) Abandon
(c) Refuse

)
77
(d) Rebound

65
(e) Rigour

12
40). Approach:

K
(a) Retreat

.(A
(b) Calm

IT
(c) Reverse

K
(d) Land

N
A
(e) Encroach
41.) Enormous: T
A
(a) Big
W
A

(b) Great
M

(c) Massive
U
K

(d) Tiny
r.

(e) Amorphous
M

42). Illuminate:
y:

(a) Culminate
B

(b) Retaliate
d
de

(c) Shadow
oa

(d) Incarninate
nl

(e) Darken
ow

43.) Adversity:
D

(a) Animosity
(b) Prosperity
(c) Complexity

190
 (d) Favoritism
(e) Unanimity
44.) Cautious:

)
77
(a) careful

65
(b) caring

12
(c) care

K
(d) Lazy

.(A
(e) Careless

IT
45.) Demolish:

K
(a) Prepare

N
A
(b) Create
(c) Break T
A
(d) Build
W
A

(e) Flourish
M
U
K

Identify the correct meaning of the following words:

r.

46.) Abbreviate:
M

(a) Shorten
y:

(b) Create
B

(c) Elongate
d
de

(d) Comprehend
oa

(e) Collate
nl

47.) Buoyant:
ow

(a) Light
D

(b) Disgraced
(c) Sorry
(d) Cheerful

191
 (e) Sad
48) Hazardous:
(a) Useful

)
77
(b) Dangerous

65
(c) Useless

12
(d) Inflammable

K
(e) Breakable

.(A
49.) Dearth:

IT
(a) Complete

K
(b) Death

N
A
(c) Prevent
(d) Preserve T
A
(e) Shortage
W
A

50.) Extrovert:
M

(a) Favourable
U
K

(b) Extra
r.

(c) Incoming
M

(d) Outgoing
y:

(e) Stable
B
d
de

Fill in the blank with the correct Verb

oa

51.) Call me _____ you need any help.

nl

(a) Can
ow

(b) Could
D

(c) Shall
(d) Should
(e) May

192
 52.) You _____ proceed as per the approved plan.
(a) May
(b) Will

)
77
(c) Could

65
(d) Would

12
(e) Can

K
53.) The vigilant officer _______the fraud.

.(A
(a) Avoid

IT
(b) Prevent

K
(c) Avert

N
A
(d) Averted
(e) Stopped T
A
54.) Aditya cleared the exam in the first ______
W
A

(a) Attempt
M

(b) Try
U
K

(c) Trial
r.

(d) Attempted
M

(e) Tried
y:
B

Write the word similar in meaning to the following words

d
de

55.) Corpulent:
oa

a.) Lean
b.) Gaunt
nl

c.) Emaciated
ow

d.) Obese
D

56.) Commence:

193
 a.) To End
b.) To Begin
c.) Nearing Finish

)
77
d.) To Run

65
57.) Conjecture:

12
a.) Grave

K
b.) Outward

.(A
c.) To Guess

IT
d.) To Claim

K
58.) Contradict:

N
A
a.) Predict
b.) To Support T
A
c.) External
W
A

d.) To oppose by words

M

59.) Detest:
U
K

a.) Love
r.

b.) To hate intensely

M

c.) Neglect
y:

d.) To support
B

60.) Deteriorate:
d
de

a.) Appreciate
oa

b.) Recover
nl

c.) To make worse

ow

d.) Strengthen
D

Q No Ans Q No Ans Q No Ans Q Ans Q No Ans Q An Q No Ans

194
 No No s

1 E 10 D 19 E 28 A 37 A 46 A 55 D

2 D 11 A 20 D 29 A 38 C 47 D 56 B

)
77
3 A 12 C 21 C 30 D 39 B 48 B 57 C

65
4 B 13 B 22 B 31 D 40 A 49 E 58 D

12
5 A 14 D 23 C 32 D 41 D 50 D 59 B

K
6 D 15 A 24 c 33 B 42 E 51 D 60 C

.(A
7 A 16 b 25 C 34 C 43 B 52 a

IT
8 C 17 D 26 C 35 A 44 e 53 D

K
9 E 18 E 27 B 36 c 45 D 54 A

N
A
T
A
W
A
M
U
K
r.
M
y:
B
d
de
oa
nl
ow
D

195
 Direction:
Please read the following paragraph carefully and answer the questions given
below it:

)
Baroda Traders Loan (BTL) is one of the key products of Retail Loan basket available

77
against the security of immovable property/ies, which caters to the financial needs of

65
business entities engaged in trading of permissible goods. The product provides hassle
free advances for trading activities and therefore has received good response from the

12
traders as well as our operational units. The credit limits are assessed on the basis of
the accepted projected turn over and the advance value of the property offered as

K
security.

.(A
We have launched new Credit Rating Model for Traders Loans up to Rs.200/- Lacs.
Hence, Credit Rating for limits up to Rs.200/- Lacs under Baroda Traders Loan is to be

IT
done under the new Retail Rating Models (under BTL Model) which is hosted on LAPS

K
system. Facilities of limit more than Rs. 200/- Lacs shall continue to be rated in

N
BOBRAM.

A
Bank has increased the ceiling on maximum limit to be sanctioned under Baroda
T
Traders Loan Scheme to Rs.100/- lacs for rural branches Rs.300/- Lacs for Semi-Urban
A
Branches, Rs.500/- lacs for urban branches and Rs.1000/- Lacs for Metro Branches
w.e.f. 23.05.216. Further, product “Baroda Traders Loan against Gold Ornaments/Gold
W

Jewellery/Gold Coins” has been discontinued.

A
M

As per the scheme guidelines of Baroda Traders Loan, Borrowers are not considered
any ad- hoc/ excess over the limit sanctioned under the Scheme. Based on the
U

feedback received from Zones/Regions, a need was felt to meet the emergent working
K

capital requirement arising out of peak season requirements, delayed payments by

r.

debtors, tax payment etc.

M

With a view to cater to such financial needs of our existing Baroda Traders Loan
y:

borrowers, a new Retail Loan Asset product named “Baroda Traders Gold Card
Scheme” has been launched. The Scheme provides for sanctioning of additional limit to
B

the extent of 20% of the sanctioned limit under Baroda Trader Limit or 70% of realizable
d

market value of immovable property (including realizable market value set aside for
de

sanctioning of regular Baroda Traders Limit), whichever is lower.

oa

This should enable our operating units to satisfy the needs of our existing borrowers
with good track record. With the modification in ceiling on maximum limit coupled with
nl

launching of Baroda Traders Gold Card Scheme, our Baroda Traders Loan product
ow

has become more competitive and robust.

1. BTL caters to the needs of which sector?
D

a) Corporate Sector
b) SMEs
c) Trading
d) Agriculture

196
 e) Individuals

2. How is the credit limit of the traders assessed?

a) The credit limits are assessed on the basis of the accepted projected turn over

)
and the advance value of the property offered as security.

77
b) The credit limits are assessed based on the annual turnover.
c) The credit limits are assessed based on the projected turnover

65
d) The credit limits are assessed based on the advance value of the property

12
offered as security
e) All of the above

K
.(A
3.The new rating model is used for the limits up to what amount?

IT
a) Rs.500.00 lacs
b) Rs. 10.00 lacs

K
c) Rs.100.00 lacs

N
d) Rs.200.00 lacs

A
e) Rs 5.00 lacs
T
A
4.BOBRAM has to be used for what amount?
W
A

a) Above Rs.10.00 lacs

M

b) Above Rs.100.00 lacs

c) Above Rs.200.00 lacs
U

d) Above Rs.150.00 lacs

K

e) None of the above

r.
M

5. What is the product discontinued for the Traders under Traders’ Loan?
y:

a) Traders’ Loan against Gold Ornaments

B

b) Traders’ Loan against Gold Jewellery

d

c) Traders’ Loan against Gold Coins

de

d) Traders’ Loan against i, ii and iii as above

e) Traders’ Loan against Stock
oa
nl

6. What is the name of the newly introduced scheme for existing Traders’ loan
ow

borrowers ?
D

a) New Baroda Traders’ Loan

b) Baroda Traders’ Loan 2
c) Baroda Traders Gold Card Scheme
d) BOB Traders credit card scheme
e) None of the above

197
 Direction: Choose the word/group of words which is most similar in meaning to
the word printed in bold as used in the passage:

)
77
7. KEY:

65
12
a) A means of access

K
b) explanation

.(A
c) important
d) waste

IT
e) product

K
N
8. Basket:

A
a) Bag
T
A
b) Cover
W

c) Case
A
M

d) Cup
U

e) Group
K

9. Needs:
r.
M

a) Requirements
y:

b) Food
B

c) Money
d

d) Loan
de

e) Interest
oa

10. Borrowers:
nl
ow

a) Customers
b) Depositors
D

c) Prospects
d) Traders
e) Traders who have availed BTL

198
 11. Robust:
a) Coffee
b) Vigorous

)
77
c) weak

65
d) Dull

12
e) Perform

K
Please fill in the blanks with the appropriate words as mentioned below:

.(A
12. I ______the Bank ten years back. / I have _____

IT
a) Join

K
b) Joined

N
A
c) Joining
d) Admit T
A
e) Admitted
W
A

13. ______aim is to become the top executive of the Bank.

M
U
K

a) My
r.

b) I
M

c) We
y:

d) They
B

e) Our
d
de

14. I am sorry______what I have done.

oa

a) To
nl

b) And
ow

c) Since
D

d) For
e) Of
15. There is nothing new ______the sun.

199
 a) Under
b) Above

)
77
c) Over

65
d) From

12
e) Below

K
16. The soldiers die______our country

.(A
a) To

IT
b) On

K
c) For

N
A
d) In
e) From T
A
17. We have been searching______the circular
W
A

a) For
M

b) About
U
K

c) Around
r.

d) On
M

e) To
y:

18. Traditionally banking is associated with______of resources from public to lend them
B

to needy and
d

deserving borrowers.
de

a) Sourcing
oa

b) Raising
nl
ow

c) Accepting
d) Taking
D

e) Lending
19._______of assets is an activity which banks are allowed to undertake.

200
 a) Leasing
b) Lending
c) Borrowing

)
77
d) Pledging

65
e) Consolidating

12
20. Banks have to play an important role in employment generation, poverty alleviation

K
and nation building ________economic development.

.(A
a) By
b) With

IT
c) Through

K
N
d) In view of

A
e) For
T
A
21. Please choose the correct sentence from the following:
W

a) Based on the value of security charged to the bank, the stipulated margin is
A

reduced and the advance value is calculated subject to overall limits.

M

b) Based in the value of security charged to the bank, the stipulated margin is
U

reducing and the advance value is calculated subject to overall limits.

K

c) Based on the value of security charged to the bank, the stipulated margin is
r.

reducing and the advance value is calculating subject to overall limits.

M

d) Based on the value of security charged to the bank, the stipulated margin
reduced and the advance value calculated subject to overall limits.
y:
B

e) Based the value of security charged to bank, the stipulated margin is reduced
and the advance value is calculated subject to overall limits.
d
de

22. Please choose the correct sentence from the following:

a) The mechanisation, computerisation process in Indian Banks largely follow the
oa

recommendations of the Rangarajan Committee.

nl

b) The mechanisation and computerisation process in Indian Banks largely follow

ow

the recommendations of the Rangarajan Committee.

c) The mechanisation and computerisation process in Indian Banks largely
D

following the recommendations at the Rangarajan Committee

d) The mechanisation and computerisation process in Indian Banks largely followed
recommendations for the Rangarajan Committee.

201
 e) The mechanisation and computerisation process in Indian Banks largely
following the recommendations of Rangarajan Committee.
23. Please choose the correct sentence from the following:

)
a) Cheque Truncation a process in which physical movement by Cheques with out

77
a bank, between bank, between banks and clearing house are curtailed or
eliminated, being replaced by whole or in part by electronic records of their

65
content (with or without their images) for further processing and transmission.

12
b) Cheque Truncation is a processes in which physical movement
of Cheques within a bank, between banks, between banks and clearing house is

K
curtailed or eliminated, being replaced by whole or in part on electronic records

.(A
of their content (with or without their images) by further processing and
transmission.

IT
c) Cheque Truncation are a process in which physical movements

K
about Cheques within a bank, between banks, between bank and clearing house
is curtailed or eliminated, being replaced in whole or in part by electronic records

N
of their content (with or without their images) for further processing and

A
transmission.
T
d) Cheque Truncation is a processs in which physical movement for Cheques within
A
a bank, between bank, between banks and clearing house is curtailed or
W

eliminated, being replaced by whole or in part by electronic record of their

A

content (with or without their images) for further processing and transmission.
M

e) Cheque Truncation is a process in which physical movement of Cheques within a

U

bank, between banks, between banks and clearing house is curtailed or

K

eliminated, being replaced by whole or in part by electronic records of their

content (with or without their images) for further processing and transmission.
r.
M

24. Please choose the correct sentence from the following:

y:

a) Nevertheless, to enable banks to take uniform and concerted action

expeditiously, particularly to provide financial assistance to agriculturists, small
B

scale industrial units, artisans, small business and trading establishments

d

affected by natural calamities, the following guidelines are commended.

de

b) Nevertheless, for enable banks to take uniform and concerted action

expeditiously, particularly to provide financial assistance to agriculturists, small
oa

scale industrial units, artisans, small business and trading establishments

nl

affected by natural calamities, the following guidelines is commended

ow

c) Nevertheless, in enable banks for take uniform and concerted action

expeditiously, particularly to provide financial assistance to agriculturists, small
scale industrial units, artisans, small business and trading establishments
D

affected by natural calamities, the following guidelines are commended

d) Nevertheless, to enable banks to take uniform and concerted action
expeditiously, particularly for provide financial assistance at agriculturists, small

202
 scale industrial units, artisans, small business and trading establishments
affected by natural calamities, the following guidelines are commended
e) Nevertheless, to enable banks for take uniform and concerted action
expeditiously, particularly to provide financial assistance to agriculturist, small

)
scale industrial unit, artisan, small business and trading establishments affected

77
by natural calamities, the following guidelines are commended

65
25. Please choose the correct sentence from the following:

12
a) The identification of the wilful default should be made keeping in view the track
records of the borrowers and should not be decided on a basis of isolated

K
transactions/incidents.

.(A
b) The identification about the wilful default should be made keeping in view the
track record of the borrowers and should not be decide on the basis of isolated

IT
transactions/incidents.

K
c) The identification the wilful default should made keeping in view the track record

N
of the borrowers and should not be decided on basis of isolated

A
transactions/incidents.
T
d) The identification of the wilful default should be made keeping in view the track
A
record of the borrowers and should not be decided on the basis of isolated
W

transactions/incidents.
A

e) The identification of the wilful default should be make keeping in view the track
record of the borrowers and should not be decided on the basis of isolated
M

transactions/incidents.
U
K
r.

Direction: From the paragraph given below please choose the correct synonyms
M

(meanings) as numbered:
y:

Vigilance (1) function is aimed at bringing about a higher order of morality (2) as well as
rationality in the conduct (3) of affairs of public service. Vigilance is not to be construed
B

(4) as an administrative chore (5). True vigilance acts proactively, aimed at preventing
d

corrupt (7) practices, rather than reacting to acts of corruption by way of detective
de

and/or punitive (8) acts.

oa

The success of vigilance functions in an organization is judged by the effectiveness (9)

in prevention (10) of unhealthy practices rather than by number of cases detected and
nl

punished. Vigilance, therefore, is not simply a police function but one of management of
ow

human (6) conduct.

D

26. Characteristics of human beings

27. Behaviour
28. Watchfulness

203
 29. Morally deprived
30. Right moral conduct
31. Stop from happening

)
77
32. Extremely severe

65
33. Impressive

12
34. Routine task

K
35. Interpret

.(A
IT
Direction: From the paragraph given below please choose the correct antonym
from the numbered words:

K
N
Interest for Normal (1) Transit Period (NTP) as per FEDAI Rules for export (2) bills

A
purchased (3) is to be recovered separately at the time of purchase/
negotiation/discount of export bills. For realisation of export bills purchased before
T
expiry of Normal Transit Period (NTP) interest for unexpired (8) period is to be refunded.
A
W

In case of early realisation of export bill purchased proportionate (5) interest will be
A

refunded from the value date of realisation i.e.credit (6) to nostro account in case of a
foreign (7) currency bill, and debit to vostro account in case of a Rupee bill, upto the
M

last(9) date of normal transit period in the case of demand bill and upto the notional due
U

date / actual due date (which ever is earlier(4) ) in case of usance bill.
K

Such a refund shall become payable only on receipt of relative credit advice/ statement
r.

of account by bank. Also, overdue interest and other charges, if any, at the applicable
M

rates are to be charged for late (10) realisation. The SITB will advise the SWAP Costs
/ Gains, if any, in the cases of early realisation.
y:
B

36. Later
d

37. Debit
de

38. Import
oa

39. Sold
nl

40. Abnormal
ow

41. Expired
D

42. Early
43. Domestic
44. Disproportionate

204
 45. First

Direction: Which of the phrases (a), (b), (c) and (d) given below each statement

)
should replace the phrase printed in bold in the sentence to make it

77
grammatically correct ? If the sentence is correct as it is given and 'No correction

65
is required', mark (e) as the answer.

12
46. According to the Dun & Bradstreet research (2012), the MSME sector in India is
highly heterogeneous in terms of size of the enterprises, variety of products and

K
services, and levels of technology.

.(A
a) broadly heterogeneous in terms of the size
b) largely heterogeneous in terms of the size

IT
c) highly heterogeneous in terms for the size
d) hugely heterogeneous in terms on the size

K
e) No correction required

N
47. While cyber-attacks have become more unpredictable and electronic payment

A
systems vulnerable to new types of misuse, it imperative that banks introduce certain
T
minimum checks and balances to minimise the impact of such attacks and to
A
arrest/minimise the damage.
W

a) it is imperative that banks introduce

A

b) it are imperative that banks introduce

M

c) it is imperative that banks introduces

d) it is imperative that banks introducing
U

e) No correction
K

48. Our Bank has adopted a very balanced people strategy to create a composite
r.

and responsible Human Resource culture in the Bank that can drive growth and also
M

adequately face various challenges of the current times, viz. the large retirements,
massive induction of talent, huge training requirements and challenges of succession
y:

and productivity.
B

a) Our Bank has adopt a very balanced people strategy

d
de

b) Our Bank has adopts a very balanced people strategy

oa

c) Our Bank is adopted a very balanced people strategy

nl

d) Our Bank has adopted a very balance people strategy

ow

e) No correction
D

49. The Baroda Manipal School of Banking is a special initiative taken jointly by Bank
of Baroda to Manipal Global education to train students for a Banking career in Bank
of Baroda on a “first-day, first-hour” productivity model.
a) jointly with Bank of Baroda and Manipal Global education
b) jointly by Bank of Baroda and Manipal Global education

205
 c) joint by Bank of Baroda and Manipal Global education
d) jointly for Bank of Baroda and Manipal Global education
e) No correction
50. Special efforts was made in the year under review to fulfill the growing

)
aspirations of the employees for faster career progression, thereby, motivating

77
employees for higher productivity.

65
a) Special efforts were made in the year under review
b) Special efforts were made during the year below review

12
c) Special efforts were made during the year under review

K
d) Special efforts was made during the year below review

.(A
e) No correction

Q No Ans Q No Ans Q No Ans Q No Ans Q An Q An Q No An

IT
No s No s s

K
N
1 c 9 a 17 a 25 d 33 9 41 8 49 B

A
2 a 10 e 18 b 26 6 34 5 42 10 50 a
T
A
3 d 11 b 19 a 27 3 35 4 43 7
W

4 c 12 b 20 e 28 1 36 4 44 5
A

5 d 13 a 21 a 29 7 37 6 45 9
M
U

6 c 14 d 22 b 30 2 38 2 46 e
K

7 c 15 a 23 e 31 10 39 3 47 a
r.
M

8 e 16 c 24 a 32 8 40 1 48 e
y:
B
d

Write in the below mentioned sentences whether the words in bold are common, proper
de

or abstract nouns.
oa

51. One Should always speak the truth.

nl

a) Common
b) Proper
ow

c) Abstract
D

52. I have two children.

a) Common
b) Proper
c) Abstract

206
 53. Still waters run deep.
a) Common
b) Proper

)
77
c) Abstract

65
54. Who teaches you grammer.

12
a) Common
b) Proper

K
c) Abstract

.(A
55. Jawahar Lal Nehru was the first Prime Minister of India.

IT
a) Common

K
b) Proper

N
c) Abstract

A
56. It was Edison who invented Phonography. T
A
a) Common
W

b) Proper
c) Abstract
A
M

Choose the correct form of verbs in the following sentences:

U
K

57. Janet______Karate class every Sunday.

r.

a) attended
M

b) attends
c) has attended
y:

d) has been attending

B
d

58. The delivery man_____the parcel already.

de

a) delivered
b) has delivered
oa

c) delivering
d) is delivering
nl
ow

59. The athletes______for Canada tomorrow.

a) left
D

b) leave
c) are leaving
d) have been leaving

207
 60. Adi______his room for the past hour.
a) is painting
b) painted
c) had painted

)
d) has been painting

77
65
61. Last night the clouds_____in the sky.
a) are thundering

12
b) have been thundering

K
c) thundered

.(A
d) have thundered

62. The girl_____in the park when a dog entered into the park.

IT
a) played

K
b) is playing

N
c) was playing

A
d) Plays
T
A
63. The meeting______due to lack of quorum.
W

a) is postponed
b) postponed
A

c) has postponed
M

d) has been postponed

U
K

64. Be patient. The circus____in a few minutes’ time.

r.

a) is starting
M

b) starts
c) will start
y:

d) will be starting
B
d

65. The bridge across the river_____two hundred years ago.

de

a) Built
b) is built
oa

c) was built
nl

d) had built
ow

66. She_____when I arrived.

D

a) was leaving
b) left
c) has left
d) had left

208
 67. When you arrive I_____.
a) will sleep
b) sleep
c) sleeping

)
d) will be sleeping

77
65
68. She_____a book when the light went off.
a) read

12
b) has read

K
c) will be reading

.(A
d) was reading

69. I_______in that town for 10 years before I moved to New Delhi.

IT
a) lived

K
b) was living

N
c) will be living

A
d) had been living
T
A
70. I_____my friend yesterday.
W

a) met
b) will meet
A

c) am meeting
M

d) have met
U
K
r.
M

Answer Key:
y:

Ques. Ans. Ques. Ans. Ques. Ans. Ques. Ans. Ques. Ans.
B

51. C 55. B 59. C 63. D 77. D

d
de

52. A 56. B 60. D 64. B 68. D

oa

53. A 57. B 61. C 65. C 69. D

54. c 58. b 62. c 66. D 70. A

nl
ow
D

209
 Test Your Knowledge

1. For the SHG to be eligible to avail loan, it should be in active existence since
the last 6 months as per the _____ of SHG.
a) Books of Account
b) SB Account opening date
c) Application form information

)
77
d) Credit report

65
(Ref: BCC:BR:112/616 Date: 12.10.2020)

12
K
2. The prime objective of the _______ is to tide over any contingency arising from

.(A
the loss of birds and replace the birds as a startup inventory of such a batch so
that the poultry units remain viable.
a) Collateral Security

IT
b) Liquid Security

K
c) Poultry Risk Fund

N
d) Primary Security
A
T
(Ref: BCC:BR:114/482, Date: 27.07.2022)
A
W

3. The units having internal rating up to ______ will be eligible for finance under
recently launched Scheme for financing Poultry Units in the identified 12 zones?
A

a) BOB 4/MSME BOB 4

M

b) BOB 5/MSME BOB 5

U

c) BOB 6/MSME BOB 6

K

d) BOB 7/MSME BOB 7

r.

(Ref: BCC:BR:114/482, Date: 27.07.2022)

M
y:

4. What is the minimum immovable/liquid security coverage under the Scheme

B

for working capital & Term Loan assistance to Poultry Units?

ed

a) Above 50%
b) Above 60%
d

c) Above 75%
oa

d) Above 100%
nl

(Ref: BCC:BR:114/482, Date: 27.07.2022)

ow

5. As per Priority Sector Lending guidelines the target for ‘Weaker section’
D

advances for FY 2022-23 is___?

a) 10% of Non Fund Based Portfolio
b) 11% of ANBC
c) 11.50% of ANBC
d) 12% of Fund Based Exposure

210
 (Ref: BCC:BR:112/531, Date: 05.09.2020)

6. Which of the following is not factored in while sanctioning BKCC production

credit _____?
a) Value of Land
b) Length of association with Bank

)
77
c) Age of the Borrower
d) Crop duration

65
(Ref: BCC:BR:111/160, Date: 30.03.2019)

12
K
.(A
7. What is the minimum immovable/liquid security coverage under the Scheme
for working capital & Term Loan assistance to Poultry Units?
a) Above 50%

IT
b) Above 60%

K
c) Above 75%

N
d) Above 100%
A
(Ref: BCC:BR:114/482, Date: 27.07.2022)
T
A
W

8. If the customer has availed of a gold loan of Rs. 2.50 lakhs in July 2022. Now
A

the same customer has sanctioned another loan of Rs. 2 lakhs, then processing
M

charges are to be calculated for _______. (Processing charges are waived up

to Rs 3 lakhs).
U

a) The newly availed limit for i.e. Rs. 2 lakh.

K

b) The full limit i.e. Rs. 4.50 lakh.

r.

c) The limit above Rs. 3 lakh i.e. Rs. 1.50 lakh.

M

d) No processing charges are to be applied.

y:

(Ref: BCC:BR:114/549, Date: 24.08.2022)

B
ed

9. Under DAY-NRLM, loans up to Rs. 3 lakh to SHG, banks will be subvented at

d

a uniform rate of ____% per annum.

oa

a) 1.50%
b) 3%
nl

c) 4%
ow

d) 4.50%
D

(Ref: BCC:BR:114/479, Date: 27.07.2022)

211
 10. For loan to SHGs above ₹10 lakh and up to ₹20 lakh, a margin not exceeding
____ of the loan amount exceeding ₹10 lakh may be obtained as per the bank’s
approved loan policy.
a) 5%
b) 10%
c) 20%
d) No margin for loans to SHG

)
77
(Ref: BCC:BR:114/380, Date: 09.06.2022)

65
12
11. What is the maximum per transaction limit using Contactless mode using Baroda
BPCL Debit card:

K
a) 10000/-

.(A
b) 5000/-
c) 2000/-

IT
d) 15000/-

K
N
BCC:BR:113:553, 18th Sept 2021 A
T
12. How many total numbers of daily Contactless transactions can be done on
A

Contactless mode using Baroda BPCL Debit Card:

W

a) 10
A

b) 5
M
U

c) 4
K

d) 15
r.

BCC:BR:113:553, 18th Sept 2021

M
y:

13. What is the Maximum daily limit to add money using Baroda BPCL Debit Card in
B

prepaid wallet Contactless transaction:

ed

a) 1000/-
b) 5000/-
d
oa

c) 2000/-
nl

d) 10000/-
ow

BCC:BR:113:553, 18th Sept 2021

D

14. What is the Maximum cash withdrawals per transaction limit on our ATMs by Baroda
VISA Vyapaar Debit Card:
a) 15000/-
b) 10000/-

212
 c) 25000/-
d) 10000/-
BCC:BR:113:703, 16th Nov 2021

15. What is the Maximum cash withdrawals per transaction limit on other Bank’s ATMs
using Baroda VISA Vyapaar Debit Card:

)
77
a) 15000/-

65
b) 10000/-
c) 25000/-

12
d) 5000/-

K
.(A
BCC:BR:113:703, 16th Nov 2021

IT
16. What is the maximum per day limit at POS/Ecom using Baroda VISA Vyapaar Debit

K
Card:
a) 150000/-

N
b) 200000/-
A
T
c) 100000/-
A

d) 500000/-
W
A

BCC:BR:113:703, 16th Nov 2021

M
U

17. How much number of transactions of cash withdrawals allowed per day using Baroda
K

VISA Vyapaar Debit Card:

r.

a) 20
M

b) 15
y:

c) 10
B

d) 5
ed

BCC:BR:113:703, 16th Nov 2021

d
oa

18. What is the Card Re-issuance / Replacement Charges of Baroda VISA Vyapaar
Debit Card:
nl

a) Rs. 200 + taxes

ow

a) Rs. 100 + taxes

b) Rs. 150 + taxes
D

c) Rs. 50 + taxes

BCC:BR:113:703, 16th Nov 2021

19. What is the finacle command for Re-issuance of Baroda VISA Vyapaar Debit card:

213
 a) HDCR
b) HOPNACCT
c) DCISS
d) HMCEC
BCC:BR:113:703, 16th Nov 2021

)
77
20. What is the menu to block the undelivered Debit Cards beyond three months from
the date of receipt:

65
a) DCISS

12
b) HDCR

K
c) HOPNACCT

.(A
d) DCARDBLK
BCC:BR:114:52, 28th January 2022

IT
21. The Debit cards which are undelivered and in blocked status for more than

K
_____________ period, all such debit cards to be destroyed into several pieces in

N
presence of two officers of the branch and proper records to be maintained for future
A
reference.
T
a) 90 days
A

b) 120 days
W

c) 1 year
A
M

d) 180 days
U

BCC:BR:114:52, 28th January 2022

K

22. What are the facility not available in our WhatsApp Banking:
r.

a) Account Statement
M

b) Disabling of UPI
y:

c) Account Blocking (Debit Freeze)

B

d) Credit Card bill payment

ed

(BCC:BR:114:126, 25th Feb 2022)

d
oa

23. What are the new features which is not available in bob World:
a) Apply for IPO - ASBA
nl
ow

b) Feedback & Support

c) Wealth Management Services
D

d) Health Meter
(BCC:BR:114:197, 21th Mar 2022)

214