Sek sie Re GA Inter Office Memorandum From: To: The General Manager The General Manager, All NBGs BU-Financial Inclusion The Zonal Manager, All Zones Head Office All LDM / AMOs Ref.No.: HO:BU-FI:SG:2023-24:609 Date : 11.09.2023 Financial Inclusion-PMJDY Addition / Modification / Revision of Commission Payable to BC / BCA on Various services provided through Fl Gateway. Approval: CRMC Dated 02.09.2023 Agenda Item No. 19 The Charges / Commission payable to BCs are being paid as per our FIIPMJDY-Master Policy Circular No. 114 / 207 dated 31.12.2020 and subsequent changes made thereafter from time to time as per requirements, Last such changes in the Commission structure were incorporated and circulated vide our Branch OM Ref No.HO:BU-FI:SG:2022-23:1 106 dated 14.02.2023.(Commission for newly added Services and Changes in commission structure of BCs at hardship centers). 2. Now, since the coverage target of Social Security Schemes (SSS) has been further revised from covering PMJDY customers to all eligible SB Account holders and achieve saturation in this regard. DFS has accordingly allotted a mammoth budget for enrolment of all eligible S/B customers under Social Security Schemes namely PMSBY & PMJJBY to our bank. Presently we are sharing an amount of Rs.30/- out of Rs.41/- received in case of PMJJBY and Re.1/ out of Rs.2/- received as commission per enrollment in these schemes. Since most of the PMJDY accounts opened are through our BC Channel and while opening these accounts they also convince / market these Micro Insurance products to these customers. The contribution towards enrollment of PMJDY / PMSBY / PMJJBY / APY through BC. Channel is commendable and can be used to achieve our targets for saturation in these schemes. To boost the enthusiasm of the BCs / BCAs at the ground level, it roposed to sacrifice our Banks share and pay the total commission received under these schemes to BCs/ BCAs .i.e Rs.33/ in case of PMJJBY and Rs.2/- in case of PMSBY for three months i.e. w.e-f. 01.09.2023 to 30.11.2023. (2 quarter of the Policy Period). Further, it was also observed that due to less commission of Rs.2/ for pass book printing (entries only) the BCs are not purchasing the Pass Book printers and providing this service to the customers. As the cost of the Pass Book printer is also ‘on the higher side. We proposed to increase this commission to Rs.5/- per passbook per day and maximum Rs.20/- per passbook / account per month. The commission payable for PMSBY & PMJJBY for this Policy Period Quarter (01.09.2023 to 30.11.2023) has been analysed and finalised after keeping in view the huge target of enrolments allotted under these schemes by DFS. Also to attract the BCs to purchase Pass Book Printers and provide Pass Book updation Service (for entries only) to the customers, it was decided to increase the commission on this, Service w.e-f. 01.09.2023. The required changes have been incorporated in the present Structure for smooth monthly payment to BCs. The addition / amendments have been duly approved by the delegated Authority-CRMC in its meeting dated 22.08.2023 vide its Agenda Item No. 19.3. The changes, proposed and approved are as under: a) Revision of commission for enrolment of Jansuraksha Schemes namely PMSBY & PMJJBY from Re.1 & Rs.22.50/- to Rs.2/ & Rs.33/- respectively for policy period 01.09.2023 to 30.11.2023. b) Revision in commission for Pass Book updation (printing) at BC Point from Rs.2/- to Rs.5/- per passbook per day with a maximum limit of Rs.20/- per passbook / account per month w.e.f. 01.09.2023. 4. The delegated Authority CRMC in its meeting dated 22.08.2023 vide Agenda Item No. 19 has approved the proposal for enhanced commission on PMSBY & PMJJBY for period 01.09.2023 to 30.11.2023 and enhancement of Commission payable for Pass Book entries at Bc Channel from Rs.2/ to Rs.5/ Per entry subject to maximum of Rs.20/ p.m. per Pass-Book / per customer w.e.f. 01.09.2023. All other commission rates for BCs / BCAs remain unchanged. The New commission structure will be effective w.e.f. 01.09.2023. We may reiterate that the commission payable to All Corporate BCs will be approved and paid centrally. For the Zones where Individual BCs are still active, the commission will be approved centrally and advised accordingly to the respective Zones who will pay the same at their end. No BC Commission payments should be made through Branches. 5. You are herewith advised to inform all the concerned, including Corporate BCs and Branches in your concerned Zones to publicise the revised rates of Commission payable to BCs /BCAs. 6. Few points for which we are continuously following up for compliance with all the NBGs / Zones, we once again reiterate as under: a) Engagement of more BCAs through Corporate BCs to reach the targeted goal of 25,000 BCs by 31.03.2023 (target date already surpassed) b) Regular Monitoring of BCs / BCAs as per our Master Policy Circular issued. ¢) Ensuring IIBF Certification of All BCs / BCAs. d) Ensuring Audit of all BC Points €) 100% enrolment under PMSBY/ PMJJBY for newly opened eligible PMJDY Accounts. f) To convince & get all the Individual BCs under the umbrella of Corporate BC as early as possible. 5. Please ensure compliance. (' arate) General ManagerAnnexure-I “Particulars Existing Charges Payable to BC/BCA/BF Proposed Charges Payable to BC/BCAIBF i) Account Opening Cash Deposit i) Rs.10 for BF For BC Rs.10 for normal account Rs.20 for account opened through eKYC (Aadhaar based) 1. Cash Deposit - AEPS ON-us and Card & PIN a) 0.40% of Transaction amount, max. Rs.20 per Transaction b) Per Transaction Limit Rs.20,000 c) Per day Limit Rs.49,999 d) Max Rs.50 per alc per day Rationale: Bringing down our commission rate at par with our peer banks and restricting the commission to Rs.50/ per day per Alc will discourage split transactions by BCs / BCAs No Change No Change 2. Cash Deposit - AEPS OFF-us and Card & PIN a) 0.80% of transaction amount, max. Rs.15 per transaction b) Per Transaction Limit Rs.10,000 c) Per day Limit Rs.20,000 Rationale: Bringing down the commission at par with peer Banks, the tin will be on no gain no loss as we are getting Rs.15 for AEPS OFF- us transactions from the bank whose customer is transacting with our BC. Presently the service is not operative as per NPCI directions) No ChangeCash withdrawal 1. AEPS Withdrawal ON-us and Card & PIN a) 0.40% of the transaction Amount, max. Rs.20 per transaction b) Per Transaction Limit Rs.10,000 c) Per day Limit Rs.20,000 d) Max Rs.40 per alc per day No Change Rationale: Bringing our commission rate at par with our peer banks and restricting the comm. To Rs.40/ per day per A/c will discourage split transactions! 2. AEPS Withdrawal-Off-us and Card & PIN a) 0.50% of the transaction Amt., max. Rs.15 per transaction No Change bb) Per Transaction Limit Rs.10,000 \c) Per day Limit Rs.20,000 i) Fund Transfer | a)0.50% of the tansacion Amount, (Remittance account to| Max. Rs.10 per transaction account within Bank & | ) Per transaction limit Rs.10,000 ‘i c) Per day limit Rs.20,000 one ‘ache, Bank BY @) Max RS.20 per ale per day No Change PIN) v) Remittance * 0.40% of the transaction amount, (For non-home Max. Rs.20 per transaction transaction): Cash + Per transaction limit Rs.10,000 Deposit through + Per day limit Rs.20,000 other than AEPS * Max Rs.40 per alc per day (MT) * No of transactions: maximum 2 No Change per day per account and maximum 10 per month per account vi) _Inter Bank No Charges to customer Remittance (through 0.5% of the transaction Amount, No Change UPI mode) Max. Rs.20, | Per day limit Rs. 10,000 Recurring Deposit | RIO. Flexi-RID @ Re 10 per account No Change viii) Term deposits [0.5 % of the transaction amount Max. (Mobilization) | Rs.25 | Max. Amt. Rs.100,000 (Only through | No Change | transfer handling i.e. through Cheque by [Branch or if online system is made | available then through ICT led devices) ‘Aadhaar Seeding | Rs.5 per account No Change (For successful seeding ) x) Rupay Card | Rs.5 per Ale for PMJDY account for No change Activation | activated (involving financial transaction) Rupay cards through BC outlet.xi) Accounts-Loan ‘Sourcing (Charges are same for BC/BF) *0.5% of Sanctioned Amount subject to following: Minimum Rs.100 and Maximum Rs.5000 (i) In_small loans (up to Rs.25,000) charges will be paid lump-sum (ii)In case of Sanctioned Limit over Rs.25,000 fees shall be paid in stages as: 100% of eligible amount at the time of Disbursement of Minimum 25% of the Sanctioned Loan amount. No Change’ xil) For renewal of CC] OD/ Crop Loan Limits subject to following: Minimum Rs.100 and Maximum Rs.5000 (i) In small loans (up to Rs.25,000) charges will be paid lump-sum {iin case of Sanctioned Limit over Rs.25,000 fees shall be paid in Disbursement of Minimum 25% of the Sanctioned Loan amount. No Change xiii) Recovery of loans / advances {through regular follow up only) security also. Standard Accounts (SASCAL) : Not to be tagged to BC/ BCA for Recovery NPA Accounts having Sanction Limit upto Rs.10.00Lakh only to be tagged to BC / BCA for recovery with a ceiling of maximum Commission of Rs.1.00Lakh per NPA Account. The slabs of commission payable to BCs will be the same which is paid to Recovery Agents as per NPA Management Policy 2020 para 11.1.9 (page no.172) and its subsequent modification from time to time. For ready reference, we are furnishing below the present slabs applicable to recovery agent excluding NPA accounts up to one year which are allocated to BC / BCA ensuring no overlapping with that of recovery agents: Suit filed / Non Suit fied /Decreed account (% of recovery amount) ‘Age of NPA With Without Security | Security ‘Over 1 Year 6% Th upto 1.5 Years Over 1.5 years 7% 8% upto 2 Years ‘Over 2 Years 8% We upto 3 Years ‘Over 3 Years O% 10% upto 5 Years ‘Over 6 Years 10% 10% ‘Same as above applicable to without No Change(Standard accounts and NPA upto one year old Accounts not to be allotted for Recoveries to BC / BCA. Recovery Accounts having | ‘sanction Limit of upto Rs.10.00 Lakh only to be Allotted for recovery to BC 1 BCA with a ceiling of Max Commission of Rs.1.00Lakh per Account) Note: Its worth mentoning here that BCHBFs are to be strict edvised not to resort to any coercive measures Ike possession of asses, ec. for recovery lest it may tigger regulatory provisions of debt Recovery Agenis, eto. Proper records should be ‘mainaind forthe incentives paid for recovery, assisted bby BCs fr aut purposes. xiv) SSS_ Enrolments (PMSBY, PMJJBY & APY) PMSBY : Re.1 per account (Provided by Insurance Company) PMJJBY:Rs.30 per account for full year, Quarter wise payable commission as per DFS guidelines is as under © June, July & August, full commission of Rs.30 is payable. © September, October Rs.22.50p is payable, © December, January and February, Rs.15 is payable. ‘©. March, April & May, Rs.7.50p is payable, (Provided by insurance Company) APY: Rs.60 per account (Provided by PFRDA /GO!) Note: Presently we are parting Rs.60 to BC agents for each enrolled APY alc, out of Rs.75 received from PFRDA. Ref No PFRDA Circular No PFRDA /03/05/1/0013/2017- PnD-APY dated 26.05.2022) {Changes if any will be governed by directions J guidelines of concerned authorities i.e. Gol / PFRDA. -Changes implemented vide PFRDA Circular Letter Ref No. PFRDA(03/05/1/0013/2017-PnD-APY 26.05.2022.) & November, PMSBY : Re.2 per account (Provided by Insurance Company)(01.09.2023 to 30.11.2023) PMJJBY:Rs.30 per account for full year, Quarter wise payable commissi DFS guidelines is as under: ‘© June, July & August, full commission of Rs.30 is payable. © September, October & November, Rs.22.50p is payable. (Changed to Rs.33/- for period 01.09.2023 to 30.11.2023 after sacrificing Banks share towards the ‘commission earned) ‘© December, January and February, Rs.15 is payable. ©. March, April & May, Rs.7.50p is payable. (Provided by Insurance Company) APY: Rs.60 per account (Provided by PFRDA /GOl) Note: Presently we are parting Rs.60 to BC agents for each enrolled APY alo, out of Rs.75 received ftom PFRDA. Ref No PFRDA Circular No PFRDA /03/05/1/0013/2017-PnD- APY dated 26.05.2022) (Changes if any will be governed by directions. 1 guidelines of concerned authorities Le. Gol / dated PFRDA/0SI05/1/0013/2017-PnD-APY 26.05.2022.) xv) SHG and JLG a) For formation and promotion — including credit linkage b) For Stationery and overhead expenses after savings linkage of SHG Not exceeding Rs.1,000 per SHG 7 JLG formed and credit linked with the Bank in stages as under. Rs.300 No Change No Change c) 4 Months | savings linkage of SHG d) Immediately after credit linkage of SHG Rs.300 Rs.400 No Change No Change xvi) Request for a New Cheque Book Rs.2 per request per account No Change| Current Account ‘Stop Payment of | Rs.2 per cheque No Change Cheque _ xviii) Cheque Rs.10 per cheque for collection ‘No Change’ | Collection xix) Cheque Status | No Charges / Free of cost No Change Enquiry xx) Balance Enquiry | No Charges / Free of cost No Change: xxi) Mini Statement | No Charges /Free of cost No Change xxil) Lodge | Rs.2 per complaint No Change complaint _ | xxiii) Track a| No Charges / Free of cost No Change complaint xxiv) Pass: Book | Rs.2 per Pass Book updation per day| RS. per passbook per day witha Update (only entries) maximum limit of Rs.20/- per passbook / account per month (only entries) xxv) Renew RID, TDR| Rs.10 per account No Change &MIC - xxvi) IMPS 0.25% of the Amount MinRs.5 Max No Change Rs.10 (IMPS allowed through. transfer from ‘Account only) xxvii) NEFT 0.25% of the Amount Min Rs.5 Max No Change Rs.10 (NEFT allowed through transfer from ‘Account only) Block Debt Card | Rs.2 per card No Change life- | Rs.5 per Certificate No Change certificate auth. through Jeevan Pramaan —_(Aadhaar enabled) xxx) Apply for Rupay | Rs.2_per card request Debit Cards (No Charges for first ime Rupay Debit Card Issuance) No Change xxi) Mobile Seeding | Rs.5 per successful Mobile Seeding No Change xxxii) Lead Generation | Rs.20 No Change Initiation for FRSB-RBI xxxii) Request Init NA Rs.10 Per account for PPF, SCSS AIC & SSA AIC xxii Request NA Rs.20 Per account Initiation for Pension AIC & NPS AIC xxxiv) Request NA (0.25% of Total Amount (Maximum Bond & SGB (Sovereign Golden Bond) 7 Rs.5000)Annexure II Commission Payable for BC / BCAs working in the Hardship States of Himachal Pradesh, Uttrakhand, J&K, Ladakh and North Eastern States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim & Tripura) a). Fixed Charges: We propose the changes in Fixed remuneration for BCs / BCAs working in the Hardship States of Himachal Pradesh, Uttrakhand, J&K, Ladakh and North Eastem States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim & Tripura) as under: Existing Fixed Charges Revised Fixed Charges A fixed remuneration of Rs.5000 (For! No Change BCs / BCAs performing a minimum of 100 transactions inclusive of account opening in a month and no bar on | Maximum Commission in the above mentioned hardship states also. If the commission amount payable is less than five thousand, only then the fixed remuneration of Rs.5000 will be payable and in case the commission amount payable is more than Rs.5000 p.m. then no fixed remuneration will be paid There will be no fixed charges / remuneration payable to BCs working in Rest of the States except as mentioned above. b). Variable Charges: No additional commission / incentive to BCs / BCAs working in the above mentioned Hardship States will be payable while calculating commission on variable basis and commission payable on all the services provided by BCs / BCAs will be at par with other States henceforth we. 01.03.2023 with no upper ceiling limit.