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STC Monthly Bulletin
City Union Bank Ltd.,Staff Training College,Kumbakonam Page 1

CITY UNION BANK LTD.,

STC MONTHLY BULLETIN
FEBRUARY 2024
I) RBI -REGULATORY UPDATES:

1)Key highlights of Interim Budget for FY 2024-2025
Union finance minister has presented Interim Budget for the financial year 2024-25. The
full fledged budget is not presented due to the upcoming general elections. The key
highlights of the interim budget presented for FY 2024-25 are:
(a) The focus of the budget is upliftment of four major segments, that is, “Garib‟ (Poor),
„Mahilayen‟ (Women), „Yuva‟ (Youth) and “Annadata‟(Farmer).
(b) The budget contains a number of announcements and strategies indicating

directions and development approach for making India “Viksit Bharat” by 2047.
(c) Priority to Solar Power: 1 crore households to obtain 300 units free electricity every
month through rooftop solarization. Each household is expected to save Rs.15000 to
Rs.18000 annually.
(d) Healthcare cover under Ayushman Bharat scheme to be extended to all ASHA
workers, Anganwadi Workers and Helpers.
(e) Research and Innovation for catalyzing growth, employment and development- To
give greater focus for this, a corpus of Rs.1 lakh crore will be established with fifty-year
interest free loan to provide long-term financing or refinancing with long tenors and low
or nil interest rates. A new scheme will be launched for strengthening deep-tech
technologies for defence purposes and expediting “atmanirbharta‟.
(f)Capital expenditure outlay for Infrastructure development and employment generation

to be increased by 11.1 per cent to Rs.11,11,111 cr,that will be 3.4% of GDP.
(g) 3 major economic railway corridor programmes identified under the PM Gati Shakti
to be implemented to improve logistics efficiency and reduce cost. 40,000 normal rail
bogies to be converted to Vande Bharat standards.

(h) Under Green energy initiative Coal gasification and liquefaction capacity of 100 MT
to be set up by 2030. Phased mandatory blending of compressed biogas (CBG) in
compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic
purposes to be mandated.
(i) Central government has proposed to extend Long-term interest free loans to the
States for financing development of Tourism sector on matching basis
(j) A provision of Rs.75,000 crore rupees as fifty-year interest free loan is proposed to
support milestone-linked reforms by the State Governments under „Viksit Bharat‟
initiative.
(k) Government proposes to retain same tax rates for both direct taxes and indirect
taxes.
(l) To improve tax payer services, government has made two decisions. They are, i.
Outstanding direct tax demands upto Rs 25000 pertaining to the period upto FY 2009-
10 withdrawn ii. Outstanding direct tax demands upto Rs 10000 for financial years
2010-11 to 2014-15 withdrawn.
(m) Tax benefits to Start-Ups, investments made by Sovereign wealth funds or pension
funds extended till 31.03.2025.
(n) Tax exemption on certain income of IFSC units extended by a year to 31.03.2025
from 31.03.2024.
(o) Revised Estimates (RE) 2023-24:

i.) RE of the total receipts other than borrowings is Rs.27.56 lakh crore, of which the tax
receipts are Rs.23.24 lakh crore. ii). RE of the total expenditure is Rs. 44.90 lakh crore.
Iii). Revenue receipts at Rs.30.03 lakh crore are expected to be higher than the Budget
Estimate, reflecting strong growth momentum and formalization in the economy. iv). RE
of the fiscal deficit is 5.8 per cent of GDP for 2023-24.
(p) Budget Estimates 2024-25:

i.) Total receipts other than borrowings and the total expenditure are estimated at
Rs.30.80 and Rs.47.66 lakh crore respectively. Ii) Tax receipts are estimated at
Rs.26.02 lakh crore. iii.) Scheme of fifty-year interest free loan for capital expenditure to
states to be continued this year with total outlay of Rs.1.3 lakh crore. iv.) Fiscal deficit in
2024-25 is estimated to be 5.1 per cent of GDP. v). Gross and net market borrowings
through dated securities during 2024-25 are estimated at Rs.14.13 and Rs.11.75 lakh
crore respectively

2)Inoperative Accounts /Unclaimed Deposits in Banks- Revised

Instructions
RBI has recently issued revised instructions on Inoperative Accounts /Unclaimed

Deposits held with the banks. The key highlights of these revised instructions which will
be effective from April 1, 2024 are as follows:
(a) Transactions in the account initiated by the bank as per its extant policy such as
charges, fees, interest payments, penalties, taxes etc are considered as ‘Bank induced
transactions‟.
(b) a financial transaction initiated by or done at the behest of the account holder by the
bank/ third party, a non-financial transaction, or; KYC updation done through any means
are considered as ‘Customer induced transactions‟.
(c) A savings/ current account shall be treated as “inoperative‟, if there are no

“customer induced transactions‟ in the account for a period of over two years.
(d) The credit balance in any deposit account maintained with banks, which have not
been operated upon for ten years or more, or any amount remaining unclaimed for ten
years or more as mentioned in “Depositor Education and Awareness” (DEA) Fund
Scheme, 2014 is treated as Unclaimed Deposits and has to be transferred to DEAF
maintained with RBI with Unclaimed Deposit Reference Number (UDRN) generated in
CBS.
(e) Banks shall undertake atleast an annual review in respect of accounts, where there
is no customer induced transactions for more than a year. (f) The banks shall inform the
account holders in writing through letters or email or SMS that there has been no
operation in their accounts/deposits in the last one year, as the case may be. The alert
messages shall invariably mention that the account would become ”inoperative‟ if no
operations are carried out during the next one year and, the account holder would be
required to submit KYC documents afresh for reactivating the account in such case
(g) In case any response is received from the account holder giving the reasons for not
operating the account, the banks shall continue to classify the account as operative for
one more year and the account holder shall be advised to operate the account within a
period of one year (This is called ‘extended period).

(h) In case the account holder still fails to operate the account within the extended
period, the banks shall classify the said account as inoperative account after the expiry
of the extended period.
(i) The classification of an account as inoperative shall be for a particular account only
(j) For the purpose of classifying an account as ‘inoperative’, only customer induced
transactions and not bank induced transactions shall be considered. Transactions
happened on the basis of Standing Instructions (SI)/ auto-renewal instructions shall also
be treated as “customer induced transactions‟.
(k) The guidelines of inoperative accounts is not applicable for accounts opened for
specific purpose such as to receive Scholarships/subsidies etc.
(l) The transactions in inoperative accounts, which have been reactivated, shall be
monitored regularly, for at least six months, at higher levels (i.e. by controlling
authorities of the concerned branch) without the knowledge and notice of the customers
and the dealing staff.
(m) The banks shall ensure that amounts lying in inoperative accounts/unclaimed
deposits and reactivated inoperative accounts/ unclaimed deposits, are subjected to
concurrent audit.
(n) The bank shall contact the holder(s) of the inoperative account/ unclaimed deposit
through letters, email or SMS (if the email and mobile number are registered with the
bank). The email/ SMS shall be sent on a quarterly basis. If the customer is not
traceable, banks to contact introducers or nominee.
(o) Interest on savings accounts shall be credited on a regular basis irrespective of the
fact that the account is in operation or not.
(p) Inoperative accounts shall be activated only with proper KYC documents.
(q) The banks are not permitted to levy penal charges for non-maintenance of minimum
balances in any account that is classified as an inoperative account. No charges shall
be levied for activation of inoperative accounts.
(r) Banks shall host the details of unclaimed deposits {only name, address (without pin
code) and UDRN), which have been transferred to DEA Fund of RBI on their respective
websites, which shall be updated regularly, at least on a monthly basis. (s) Banks may
also consider imposing a cooling-off period on reactivation, with restrictions on the
number and amount of transactions, as may be applicable for newly opened accounts
with the bank.

3) Second Schedule to the RBI Act, 1934 – Norms for inclusion
Scheduled banks are those banks which are listed under Schedule II of RBI Act, 1934.
RBI has recently released eligibility norms for inclusion of Urban Co-operative banks in
the Second Schedule to the RBI Act, 1934.
Licensed Tier 3 (UCBs with deposits more than ₹1000 crore and up to ₹10,000 crore)
and Tier 4 (UCBs with deposits more than ₹10,000 crore) Primary (Urban) Co-operative
Banks, fulfilling the criteria stipulated for Financially Sound and Well Managed Urban
Co-operative Banks by RBI, subject to maintenance of minimum deposits required for
categorization as a Tier 3 Urban Co-operative Bank for two consecutive years, would be
the eligible financial institutions for the purpose of such categorization. Such UCBs with
the following criteria's shall be eligible for inclusion,
(a) CRAR of at least 3 per cent more than the minimum CRAR requirement applicable
to the UCB; and
(b) No major regulatory and supervisory concerns. Eligible UCBs may submit their
application for inclusion in the Second Schedule to the RBI Act, 1934 to the concerned
Regional Office of Department of Supervision with specified documents
4. Amendment to the Master Direction (MD) on KYC
As per RBI’s master directions on KYC AML norms, Regulated Entities (REs) have to
undertake Customer Due Diligence (CDD), as per the process laid out therein, for their
customers.
As per these guidelines, REs shall have the option of establishing a relationship with
Politically Exposed Persons (whether as customer or beneficial owner) provided that,
apart from performing normal customer due diligence. For this purpose, as per the
amended definition, “Politically exposed persons (PEPs) are individuals who are or have
been entrusted with prominent public functions by a foreign country, including the
Heads of States/Governments, senior politicians, senior government or judicial or
military officers, senior executives of state-owned corporations and important political
party officials.”

II) Updates from Banking &Financial Sector

1) After series of ‘violations’, Paytm may lose Payments Bank licence
The Reserve Bank of India (RBI) alerted the Directorate of Enforcement (ED) a few
months ago about possible money laundering and know-your-customer (KYC) violations
at Paytm, and the fintech services provider may lose its payments bank licence, given
infringements flagged by the banking regulator over the past few years. “Concerns
have been flagged to ED. There was gross violation of anti-money laundering provisions
and KYC norms,” said one of the persons aware of the details. “Several crores were
being transferred in between multiple accounts without any KYC; lakhs of prepaid cards
were issued sans any KYC, transferring large funds.” RBI had also uncovered data
breaches, with information flowing between the payments bank and One 97
Communications.
In an order issued on January 31, RBI asked Paytm Payments Bank to stop all basic
payment services through various platforms and technology railroads, including the
Unified Payments Interface (UPI), Immediate Payment Service (IMPS), Aadhaar-
Enabled Payment System (AEPS) as well as bill payment transactions, with effect from
February29. The person said flouting of norms is very serious and the entity’s banking
licence could be cancelled. Unlike in the case of cooperatives, RBI cannot directly
supersede a payments bank, as that would require the government's nod.
RBI also found KYC checks for hundreds of thousands of customers were missing, and
some of the accounts were either owned by individuals with past issues with
enforcement agencies or had abnormal balances, amounting to crores of rupees in
some cases. The central bank has flagged multiple instances of a single permanent
account number being used to open more than 1,000 accounts.
The RBI action was because the company could not cure certain defects despite the
earlier regulatory action in March 2022. In March 2022, the regulator had barred the
Noida-based company from onboarding new customers and directed it to appoint an
external auditor. In 2022, an RBI inspection found that many of the compliance reports
that the payments bank was submitting were not in line with requirements and, in some
cases, there were outright false claims.
The banking regulator also allegedly found violations of the Prevention of Money
Laundering Act, which led to the bank being barred from accepting fresh deposits, said
the person. Paytm Payments Bank started operations in 2017, riding on its post-
demonetisation success.The latest regulatory action is the third against Paytm. In 2018,
RBI had asked its payments bank to stop onboarding customers owing to issues with its
KYC process. The ban was lifted in January 2019.

2) Reversal of SDF and MSF during Weekends /Holidays
At present option to the Standing Deposit Facility (SDF) and the Marginal Standing
Facility (MSF) is available on an overnight basis on all days, including Sundays and
holidays, but reversal is permitted only on the next working day. As per statement
dated Dec. 08, 2023 of the Governor, RBI has decided to allow reversal of liquidity
facilities under both SDF and MSF even during weekends and holidays with effect from
Dec. 30, 2023.
The SDF/MSF bids triggered under the Automated Sweep-In and Sweep-Out (ASISO)
facility will now reverse on the next calendar day. In the case of a manual bid placed
through the e-Kuber portal, the choice with regard to tenor will be exercised by the
eligible entities at the time of placing of bid. Access to SDF/MSF will continue to be
available on all days, including Sundays and holidays.
3) Reporting of Reverse Repo transactions in Form A:

RBI has clarified that Reverse Repo transactions for original tenors up to and inclusive
of 14 days, shall be reported under Item III(b) of Form A (i.e., Money at call and short
notice) ,whereas original tenors of more than 14 days, shall be reported under Item III(c)
of Form A (i.e., Advances to banks)
4) Withdrawal of Rs 2000 bank notes in India:

The RBI has withdrawn 97.26 percent of the Rs.2,000 banknotes from circulation as of
May 19, 2023. As of Nov. 30, 2023, the total value of Rs.2000 banknotes in circulation
has dwindled to Rs.9760 crore, representing a significant reduction from the initial
Rs.3.56 lakh crore.
5) Banks have written off Rs 10.60 lakh crore in 5 years

The government has informed the Lok Sabha that all Scheduled Commercial Banks
have written off nearly Rs. 10.6 lakh crore in the last 5 years, 50 per cent of which,
belong to large industrial houses. It has also stated that nearly 2300 borrowers, each
having a loan amount of Rs. 5 crore or more, wilfully defaulted totaling to Rs 2 lakh
crore.
6) Unclaimed Deposits with Banks rise by 28%

There has been a 28 per cent annual increase in unclaimed deposits with the banks to
Rs 42,270 crore as on March 2023. As compared to Rs. 32,934 crore unclaimed
deposits with public and private sector banks in FY22, the amount increased to Rs.
42,272 crore at the end of March 2023, an increase of 28 per cent

7) Change in limit- Bulk Deposits for Urban Co-operative Banks

As per RBI guidelines “Bulk Deposit” means single Rupee term deposits of Rupees
fifteen lakh and above in case of UCBs. (In commercial banks it is Rs. 2 crore and
RRBs it is Rs. 1 crore).
On a review, RBI has decided to enhance the bulk deposit limit for Scheduled Primary
(Urban) Co-operative Banks, in Tier 3 and 4, to Rupees one crore and above. For other
UCBs, the previous limit of Rs. 15 lakhs remains the same
8) Annual Guarantee Fee Structure- Credit Guarantee Scheme for Co-

Lending
CGTMSE has recently increased the Ceiling on Guarantee cover offered for Co-lending
arrangement from ₹200 lakh to ₹500 lakh for secured facilities and from Rs. 100 lakh to
Rs. 200 lakh to unsecured facilities. In this regard, CGTMSE has recently updated fee
structure for the scheme
Slab Above 2 crore upto 5 crore (₹) Standard Rate (SR)* (%pa)
0-10 lakh 0.37
Above 10 lakh upto 50 lakh 0.55
Above 50 lakh upto 1 crore 0.60
Above 1 crore upto 2 crore 1.20
Above 2 crore upto 5 crore 1.35
*AGF will be charged on the guaranteed amount for the first year and on the
outstanding amount for the remaining tenure of the credit facility.
The above fee structure shall be applicable for all the loans sanctioned by eligible pair
of MLIs on or after January 01, 2024. 10% concession in guarantee fee will be provided
to special categories i.e. Women, SC/ST entrepreneurs, Person with disability (PWD),
Agniveers, north eastern entrepreneurs (upto limit of Rs. 50 lakh), MSEs located in
Aspirational districts and Zed certified MSEs.
9) APB/ACH credits in case of in-operative accounts

As per the existing practice, banks will return any of the APB (Aadhaar Payment Bridge)
/ ACH (Automated Clearing House) credits to accounts which are inoperative (return
code-53) and Dormant Accounts (return code 54).
NPCI according to latest RBI guidelines on in-operative accounts has instructed banks
not to return the credits to inoperative and dormant accounts under Direct Benefit
Transfer (DBT) with effect from 01.04.2024 under NACH system.

10) Messaging System in IMPS transactions

NPCI has issued instructions to member banks under IMPS system to migrate from ISO
8583 messaging system to API based XML format before 31st March 2022. The time
limit was further extended till 31st January 2024.
In this regard, NPCI has advised all banks to complete migration before 31st January
2024 and post which no IMPS transactions will be allowed with ISO 8583 messaging
system.
11) CCI Approval for Merger of Fincare SFB with AU SFB

The Competition Commission of India (CCI) has recently approved the merger of
Fincare Small Finance Bank Limited (Fincare) and AU Small Finance Bank Limited
(AU). The Proposed Combination involves the merger of Fincare and AU, with AU being
the surviving entity (merged entity).
The shareholders of Fincare will be allotted shares in the merged entity, post the
Proposed Combination. Fincare SFB is a small finance bank licensed from RBI in 2017
and head quartered at Bangalore. Whereas, AU Small Finance Bank was obtained SFB
license in the year 2015 and head quartered in Jaipur, Rajasthan.
12) Memorandum of Understanding between NPCI and Google Pay

Google India Digital Services (P) Limited (Google Pay) and NPCI International
Payments Ltd (NIPL), a whollyowned subsidiary of the National Payments Corporation
of India (NPCI) have signed a Memorandum of Understanding to expand the
transformative impact of UPI to countries beyond India.
The MoU has three key objectives.
(a) It seeks to broaden the use of UPI payments for travelers outside of India, enabling
them to conveniently make transactions abroad.
(b) The MoU intends to assist in establishing UPI-like digital payment systems in other
countries, providing a model for seamless financial transactions.
(c) It focuses on easing the process of remittances between countries by utilizing the
UPI infrastructure, thereby simplifying cross-border financial exchanges. The outlined
objectives will help accelerate UPI's global acceptance, providing foreign merchants
access to Indian customers who will no longer have to rely only on foreign currency
and/or, credit or forex cards for making digital payments and will have the option using
UPI powered Apps from India including Google Pay.

III) Updates from Financial & Economic Sector :

1) Direct listing of Indian cos on international exchanges of GIFT IFSC
The Department of Economic Affairs (DEA) has recently amended Foreign Exchange
Management (Non-debt Instruments) Rules and notified the “Direct Listing of Equity
Shares of Companies Incorporated in India on International Exchanges Scheme‟.
As per the notification government has permitted the direct listing of securities by Indian
companies on international exchanges of GIFT IFSC to boost foreign investments.
International stock exchanges at GIFT-IFSC- India International Exchange and NSE
International Exchange have been, currently, prescribed as permitted stock exchanges.
These exchanges are under the regulatory supervision of the International Financial
Services Centres Authority (IFSCA).
With this amendment, the public Indian companies will have the flexibility to access both
markets i.e. domestic market for raising capital in INR and the international market at
IFSC for raising capital in foreign currency from the global investors.
2) Companies Listing of equity shares in permissible jurisdictions

Rules
Government of India has recently notified Companies (Listing of equity shares in
permissible jurisdictions) Rules, 2024. The key highlights of this notification are,
(A) The provisions of these rules shall apply to unlisted public companies and listed
public companies.
(B) An unlisted public company, which has no partly paid-up shares, may issue equity
shares for the purposes of listing on a stock exchange in a permissible jurisdiction.
(C) Issue of equity shares shall include, offer for sale of equity shares by existing
shareholders of the unlisted public company for listing on a stock exchange in a
permissible jurisdiction.
(D) The unlisted public company shall file the prospectus in eForm LEAP-1 specified in
the Second Schedule along with the fees within a period of seven days after the same
has been finalized and filed in the permitted exchange.
(E) After the listing of the equity shares of a company on any of the stock exchanges in
a permissible jurisdiction, the company shall comply with Indian Accounting Standards
while preparing financial statements.
(F) Following category of companies are not eligible for listing under these guidelines.
(a) has been registered under section 8 or declared as Nidhi under section 406 of the
Act.
(b) is a company limited by guarantee and also having share capital.

(c) has any outstanding deposits accepted from the public as per Chapter V of the Act
and rules made there under.
(d) has a negative net worth.
(e) has defaulted in payment of dues to any bank or public financial institution or non-
convertible debenture holder or any other secured creditor provided that this clause
shall not apply if the company had made good the default and a period of two years had
lapsed since the date of making good the default.
(f) has made any application for winding-up under IBC 2016.
(g) has defaulted in filing of an annual return under section 92 or financial statement
under section 137 of the Act within the specified period
3) RBI (Commercial Paper and NCDs - maturity upto one year) Directions,
2024
RBI has recently reviewed it’s directions on Commercial Paper and Non-Convertible
Debentures of original or initial maturity upto one year and issued revised master
direction in this regard. The key highlights of these directions which are effective from
April 01, 2024 are,
(a) Commercial Paper (CP) means an unsecured money market instrument issued in
the form of a promissory note. Non-Convertible Debenture (NCD) means a secured
money market instrument with an original or initial maturity upto one year.
(b) CPs and NCDs may be issued by Companies, NBFCs, including HFCs, InvITs &
REITs, AIFIs, Any other body corporate, cooperative societies & LLPs with a minimum
net-worth of ₹100 crore, provided that the body corporate is statutorily permitted to incur
debt or issue debt instruments in India; and any other entity specifically permitted by the
RBI subject to the condition that all fund-based facilities availed, if any, by the issuer
from banks/ AIFIs / NBFCs are classified as Standard at the time of issue.
(c) All residents & Non-residents are are eligible to invest in CPs and NCDs. No person,
resident or non-resident, can invest in CPs and NCDs issued by related parties either in
the primary or through the secondary market
(d) CPs and NCDs shall be issued in dematerialised form and held with a depository
registered with SEBI. (e) CPs and NCDs shall be issued in minimum denomination of ₹5
lakh and in multiples of ₹5 lakh thereafter.
(f) The tenor of a CP shall not be less than seven days or more than one year. The
tenor of an NCD shall not be less than ninety days or more than one year. (g) The
primary issuances of CPs and NCDs, including both payment of funds to the issuer and
issue of CPs and NCDs to the investors, shall be settled within a period not exceeding
T+4 working days.
(h) Total subscription by all individuals, including Hindu Undivided Families, in any
primary issuance of CPs or NCDs shall not exceed 25 per cent of the total amount
issued.

(i) CPs shall be issued at a discount to the face value. NCDs shall be issued at a
discount to the face value or with fixed or floating rate coupon.
(j) Funds raised through CPs and NCDs shall ordinarily be used to finance current
assets and operating expenses. The end-use of the funds raised through a CP or an
NCD shall be disclosed in the offer document.
(k) The minimum credit rating, assigned by a Credit Rating Agency (CRA), for the
issuance of CPs and NCDs shall be “A3‟ as per rating symbol and definition prescribed
by SEBI. (l) CPs and NCDs shall be traded either in OTC markets including on
Electronic Trading Platforms (ETPs), or on stock exchanges approved by RBI. The
settlement cycle for OTC trades in CPs and NCDs shall be either T+0 or T+1.
(m) The buyback of CPs can be made only after seven days from the date of issue. The
buyback of NCDs can be made only after ninety days from the date of issue. (n) There
will be no grace period for repayment of CPs/NCDs.
(o) Primary issuance and secondary market trading hours shall be between 9:00 AM
and 5:00 PM on a working day or as specified by the Reserve Bank from time to time.
(p) Details of all issuances in primary markets of the CPs and NCDs shall be reported
by the Issuing and Paying Agents (IPAs) on the F-TRAC platform by 5:30 PM on the
day of issuance. All secondary market transactions in CPs and NCDs, executed in the
OTC market and/or on the recognised stock exchanges, shall be reported with time
stamp within 15 minutes of execution (the time when price is agreed) on the F-TRAC
platform by each counterparty to the transaction.
(q) Instances of default and repayment of defaulted obligation shall be reported by the
IPA on the F-TRAC platform by 5:30 PM on the day of default or the day of repayment
of defaulted obligations, as the case may be
4) Launch of PM- Janman Maha Abhiyan
In line with the Government’s efforts towards the vision of ‘Antyodaya‟ to empower the
last person at the last mile, PMJANMAN was launched for the socio-economic welfare
of Particularly Vulnerable Tribal Groups (PVTGs) in November 2023 , on the occasion
of Janjatiya Gaurav Diwas. PM-JANMAN, with a budget of approximately Rs 24,000
crores focuses on 11 critical interventions through 9 Ministries and is aimed to improve
socio-economic conditions of the PVTGs by saturating PVTG households and
habitations with basic facilities such as safe housing, clean drinking water and
sanitation, improved access to education, health and nutrition, electricity, road and
telecom connectivity, and sustainable livelihood opportunities.
The scheme is implemented by Ministry of Tribal Affairs, in collaboration with the State
governments and the PVTG communities.

5) Issue of Yen Denominated Green Bonds by REC Limited

Rural Electrification Corporation (REC) Limited, a Maharatna Central Public Sector
Enterprise under the Ministry of Power, has successfully issued its inaugural Japanese
Yen (JPY) 61.1 billion 5-year, 5.25-year and 10- year Green bonds, under its US$ 10
billion Global Medium Term Notes Programme. Proceeds from the issue of the Bonds
will be applied to finance the Eligible Green Projects in accordance with the Company’s
Green Finance Framework, RBI’s External Commercial Borrowings Guidelines and the
approvals.
This is the first Yen Green Bonds issuance by any Indian PSU. This issue is considered
as largest ever Euro-Yen issuance in South and South East Asia & Largest
Yendenominated issuance from India.
The transaction witnessed interest from both Japanese and international accounts, with
number of orders from each at 50%, international allocation being one of the highest for
any other Indian Yen deal. The notes will be rated Baa3/BBB– /BBB+
(Moody's/Fitch/JCR) and will be listed exclusively on Global Securities Market of India
International Exchange (India INX) and NSE IFSC in GIFT City, Gandhinagar, Gujarat.
DBS Bank, Mizuho, MUFG, and SMBC Nikko are the joint lead managers for the issue.
6) Appointment of Members of the Sixteenth Finance Commission

The Sixteenth Finance Commission was constituted on 31.12.2023 by Government of
India with Shri Arvind Panagariya, former Vice-Chairman, NITI Aayog as its Chairman.
Recently Government has appointed following members to the Commission with the
approval of the President of India.
The appointed members are, Shri. Ajay Narayan Jha (Full time Member), Smt. Annie
George Mathew (Full time Member), Dr. Niranjan Rajadhyaksha (Full time Member) &
Dr. Soumya Kanti Ghosh (Part time Member). The Sixteenth Finance Commission is
expected to make its recommendations available by October, 31, 2025, covering an
award period of 5 years commencing 1 st April, 2026.
Finance Commission is a constitutional body for the purpose of allocation of certain

revenue resources between the Union and the States. It was established under Article
280 of the Indian Constitution by the Indian President. Formed in the year 1951, it
defines the financial relations between the Centre and the states.
Finance commission acts like an executor to split the process of divisible taxes between
the State and Union Government or in the case of taxes that are collected by the center,
but the proceeds of which are distributed between the states.

IV) CONTEMPORARY BANKING:

Internal Ombudsman Directions,2023
The Internal Ombudsman mechanism was set up with a view to strengthen the internal
grievance redressal system of banks and to ensure that the complaints of the customers
are redressed at the level of the bank itself by an authority placed at the highest level of
bank’s grievance redressal mechanism so as to minimize the need for the customers to
approach other forum for redressal.
 A review of Internal Ombudsman schemes has been undertaken by the RBI in line
with the integration of the erstwhile three RBI Ombudsman Schemes as also with
the objective to improve the customer service standards in regulated entities. The
framework reaffirms that the Internal Ombudsman mechanism should work as
envisaged and the Internal Ombudsman shall be positioned as an independent,
apex level authority on consumer grievance redress within the regulated entities.
The Direction on Internal Ombudsman are applicable to all regulated entities w.e.f.
Dec. 29, 2023.
HIGHLIGHTS:
a) These guidelines are applicable to all banks having 10 or more branches in India,
Deposit-taking NBFCs (NBFCs-D) with 10 or more branches and Non-Deposit taking
NBFCs (NBFCs-ND) with asset size of Rs.5,000 crore and above and having public
customer interface.
b) The Internal Ombudsman shall either be a retired or serving officer, in the rank
equivalent to a General Manager of another bank / Financial Sector Regulatory Body,
having necessary skills and experience of minimum seven years.
c) The Internal Ombudsman shall previously not have been employed, nor presently be
employed, by the regulated entity or the regulated entity’s related parties.
d) Regulated entity may appoint more than one Internal Ombudsman depending upon
the volume of complaints received by them. e) The Internal Ombudsman shall not be
over 70 years of age before the completion of the tenure.
f) Regulated entity may appoint one or more Deputy Internal Ombudsman depending on
the volume of complaints received by them, who would assist the Internal Ombudsman

in the quality disposal of the complaints. g) The Deputy Internal Ombudsman shall
either be a retired or serving officer, not below the rank of DGM of another bank/FI
having necessary skills and experience of minimum five years and should not be more
than 70 years of age before the completion of the tenure.
h) Deputy Ombudsman reports to Internal Ombudsman. In the temporary absence of

the Internal Ombudsman, not exceeding a period of 15 working days, the Deputy
Internal Ombudsman may function as the Internal Ombudsman for the limited purpose
of reviewing the rejected complaints.
i) In the absence of Internal Ombudsman banks need to make temporary arrangement

with prior intimation to CEPD department of RBI. Alternative arrangement can be made
if the period of absence is more than 15 days. However, such temporary absence
should not exceed 30 days.
j) The appointment of the Internal Ombudsman / Deputy Internal Ombudsman is of

contractual nature and for a minimum & maximum period of 3 and 5 years respectively
and not eligible for reappointment.
k) The regulated entity shall conduct an internal audit of the implementation of these IO
directions on a yearly basis.
Role and Responsibilities of Internal Ombudsman:

The Internal Ombudsman shall not handle complaints received directly from the
complainants or members of the public but deal with the complaints that have already
been examined by the regulated entity but have been partly or wholly rejected by the
regulated entity. The following types of complaints shall be outside the purview of the
Internal Ombudsman:
a) Complaints related to corporate frauds, misappropriation etc., except those resulting

from deficiency in service, if any, on the part of the regulated entity;
b) References in the nature of suggestions and commercial decisions of regulated

entity. However, service deficiencies in cases falling under ‘commercial decisions’ will
be valid complaints for the Internal Ombudsman;
c) Complaints / references relating to (i) internal administration, (ii) human resources, or

(iii) pay and emoluments of staff in the regulated entity;
d) Complaints which have been decided by or are already pending in other fora such as
the Consumer Disputes Redressal Commission, courts, etc.;

The Internal Ombudsman shall analyse the pattern of complaints such as product /
category wise, consumer group wise, geographical location wise, etc., and suggest
means for taking actions to address the root cause of complaints of similar / repeat
nature and those that require policy level changes in the regulated entity.
Procedure for Complaint Redress by Internal Ombudsman:
 The regulated entity shall formulate a Standard Operating Procedure (SOP)

approved by the Committee of the Board handling Customer Service and Protection
and establish a fully automated Complaints Management Software wherein all
complaints that are partly or wholly rejected by the regulated entity’s internal
grievance redress mechanism are auto escalated to the Internal Ombudsman
within 20 days of receipt, for a final decision.
 The Internal Ombudsman and regulated entity shall ensure that the final decision is
communicated to the complainant within a period of 30 days from the date of receipt
of complaint by the regulated entity. The regulated entity shall provide read only
access to their Complaint Management Software so that all complaints are
accessible to the Internal Ombudsman who shall follow up cases of delayed
escalation.
Supervisory Oversight:
 The areas relating to customer service and customer grievance redress, as well as
the implementation of these Directions, shall be a part of the risk assessment and
supervisory review undertaken by the Deptt. of Supervision of the RBI in case the
regulated entity is a bank, NBFC and CIC and the Deptt. of Payment and Settlement
Systems of the RBI in case the regulated entity is an NBSP.
 Consumer Education and Protection Department of the RBI may review the cases
where the decision of the Internal Ombudsman has not been accepted by the
regulated entity and the aggrieved complainant approaches the RBI Ombudsman.
 The regulated entity shall put in place a system of periodic reporting of information
to Consumer Education and Protection Department, Central Office, Reserve Bank of
India, on a quarterly and annual basis as per formats and submit on or before the
10th day of the month following the quarter/year for which they are due.

V) CUB –HOME PAGE

City Union Bank posts 16% increase in Q3 net profit at ₹253 cr
-Business line -02.02.2024
Dr N. Kamakodi,M.D & C.E.O

CUB has reported a 16 per cent increase in its net profit at ₹253 crore for the quarter
ended December 31, 2023, when compared with ₹218 crore in the year-ago period,
helped by lower provisions amid a decline in operating profit.
Its operating profit fell 27 per cent at ₹364 crore when compared with ₹497 crore
in Q3 of the previous fiscal, according to a statement. Provisions (other than tax) and
contingencies were significantly lower at ₹46 crore when compared with ₹224 crore.
Interest income grew 10 per cent at ₹1,326 crore as against ₹1,206 crore, while non-
interest income reported was lower at ₹193 crore (₹224 crore). Net interest income
declined by seven per cent at ₹516 crore (₹556 crore).
Net interest margin (NIM) stood at 3.5 per cent in Q3 of this fiscal as against 3.88 per
cent a year ago.
Gross NPA reduced to 4.47 per cent as of the December 2023 quarter when compared
with 4.62 per cent in the year-ago quarter and 4.66 per cent in the preceding quarter.
Net NPA also dropped to 2.19 per cent from 2.67 per cent in the year-ago quarter and
2.34 per cent from Q2 of this fiscal.
Deposits of the bank increased by five per cent to ₹52,726 crore when compared with
₹49,997 crore, while advances grew two per cent to ₹44,017 crore (₹43,009 crore).
For the 9 months ended December 31, 2023, the company reported a net profit of ₹761
crore when compared with ₹719 crore in the year-ago period, an increase of six per
cent.
As of December 31, 2023, the Bank’s capital adequacy, as per Reserve Bank of India
(RBI) guidelines on Basel III norms, was 21.87 per cent and Tier-1 capital adequacy
was 20.83 per cent, well above regulatory requirements, it said

A.O. Important Circulars – January 2024

Date: 02 .01.2024-IBD/FLASH/2324/34
Dept: IBD -Circular No: 34 -Revision of interest rate for FCNR(B) and RFC Term
Deposits
Our Bank offers 0.50% p.a. on USD RFC savings account & 0% p.a on EUR, SGD &
GBP RFC savings account.
See the circular to know the details of revised rate of interest
Date: 03.01.2024
CO/CSD/2023-24 -
Dept: Computer Systems
Enhancement of Transaction Limit in Net / Mobile Banking
We have implemented OTP and Soft token as multifactor authentication (MFA) for
transaction approval in our Retail Net / Mobile banking.
For Retail customers, the Net banking default transaction limit is set as Rs 10.00 Lakhs
(Ten lakhs) per day and for mobile banking, the limit is set as Rs 10.00 Lakhs (Ten
lakhs) per day. Since authentication in retail Net banking and Mobile banking are
different, retail customer can collectively carryout transactions for Rs 20.00 Lakhs per
day.
For corporate customers, the default transaction limit is provided for Rs 50 lakhs and
the transaction authentication process remains to be up to Rs 10 lakhs using OTP/Soft
Token/Hard Token, upto Rs 50 lakhs using Soft token/ Hard Token .
Currently, the limit can be used for more than Rs 50 lakhs, customers are allowed to
use only for HARD TOKEN. NOW, we are allowing the customers using the limit
more than Rs.50.00 lakhs, the SOFT TOKEN based authentication can be
extended based on the special request.
Now-a-days transaction volumes are rapidly increasing and current limit seems to be
inadequate for few customers and we receive representations from the branches
/customers that the enhancement in the soft token approval limit to be considered.
Customers who use soft token, feel convenient and request additional limit increase for
soft token based authentications.
Hence it is proposed to increase the transaction limit on case to case basis with due
approval of the approving authority as mentioned below:

Type Limit Amount Reason Approving authority
Retail 1 Upto Rs.10 lakhs All normal transactions Default

2 Above Rs.10 Govt payments, Head, ACCD (Mail to
lakhs College fees, accd@cityunionbank.
Registration process, in)
SGB, etc.,
Corporate 1 Upto Rs. 10 lakhs All normal transactions default

2 Rs. 10 lakhs to 50 All normal Default
lakhs Transactions
3 Rs. 50 lakhs to Special request from P&D CMD
Rs. 1 crore customer (hard token /
soft token)
4 Above Rs. 1 crore Special request from P&D CMD
customer (only hard (Internal approval
token) from MD&CEO)
Branches can raise the ticket in the synergy tool, Choosing Skill group-> Net banking –
subskill group -> Limit enhancement.
Date: 03.01.2024
CO/CSD/2023-24 -Dept.: Computer systems
Clarifications on Tax Payments (GST & CBDT) through Branch and Online
Channel
Branches are hereby advised to refer CO: CSD Circular dated 02.12.2022 on GST
Payment facility through our Bank & Circular dated 05-01-2023 on Direct Tax Payment
facility through our Bank.
Our Bank is an authorised Agency Bank permitted to collect tax payments through our
branches on behalf of Central Board of Direct Taxes – CBDT and Central Board of
Indirect Taxes and Customs – CBIC, Government of India and approved by Reserve
Bank of India. Hence our bank facilitates the tax Payments through both offline and
online. Following are the modes through which customers can pay their tax payments
 E-Payment (Online)
 Over The Counter at Branches (OTC)
I a) GST Payments – Through Branch counter (OTC)
This mode allows the customer to pay their GST payments through our branches. Here
the journey starts from GST Portal (https://payment.gst.gov.in/payment/) and ends at
the Branch. There are three modes of payments allowed at branches.
 CASH
 CHEQUE
 DD

For the above modes of payment, customer walk-in to the branches with their challan
(Customer should have chosen as “OTC” in the GSTN portal with Cash / Cheque/
DD option). Payment needs to be processed based on the challan mode (Cash /
Cheque or DD). Branches to verify the challan copy received from the customer and
validate in our bank GST tax payment internal portal. The portal can be accessed in
our branch using ‘Single Sign-on’ – “GST Payments”. Receipts can be instantly
generated for Own bank cheque and Cash mode. For DD and other bank Cheque,
receipt will be generated subject to realization of the instrument. Maximum limit for any
of the mode of payment is Rs.10,000/- per challan.
I b) GST Payments – E-Payment (Online)

This mode allows the customer to pay their GST payments through our online channel
(Retail & Corporate Net / Mobile banking). Here the journey starts from GST Portal and
ends at GST portal. Payment receipt is instantly generated.
The e-payment process is briefed as below:

 Customer to generate the challan (CPIN) in GST portal,
https://services.gst.gov.in
 Input the GST details
 Customer to select payment mode as ‘E-Payment’
 Choose “City Union Bank” and would be redirected to our Net banking login.
 Login to Net banking using their credentials, choose the account, authenticate
using password and second factor authentication (MFA)
 On successful submission would be redirected to GST portal
 Receipt can be downloaded from GST portal instantly
II a) CBDT Payments – Through Branch counter (OTC)

This mode allows the customer to pay their direct taxes through our branch counter.
Here the journey starts at e-Filing portal TIN 2.0 (www.eportal.incometax.gov.in) and
ends at the branch.
 CASH
 CHEQUE
 DD
To make CBDT payments at our branches customer walk-in to the branches with their
challan with Cash / Cheque or DD. Branches to add the challan in maker level user
and verify the same checker user through ‘Single Sign-on’ –> “CBDT”.
II b) CBDT Payments – E-Payment (Online)
This mode allows the customer to pay their CBDT payments through our branches.
Here the journey starts from Income Tax Portal (www.eportal.incometax.gov.in) and
ends at the Branch. There are three modes of payments allowed at branches.

The e-payment process is briefed as below:

 Customer to generate the challan (CRN) in Income tax portal,
www.eportal.incometax.gov.in
 In e-Pay Tax choose the Type of Payment and click +New Payment menu
present in Top right corner.
 In New Payment page, select the type of tax by clicking Proceed option.
 Choose the Assessment year and Type of Payment and click continue.
 Enter Tax Break Up details by entering the amount in the shown box and click
Continue.
 Select the payment mode as Net Banking and choose City Union Bank Limited.
Click Continue to proceed for transaction.
 Review the details and continue to make payment by clicking PAY NOW.
 By agreeing to the terms and conditions Click Submit to Bank
 Verify and click Proceed to Payment by agreeing to the terms and conditions.
 It would be redirected to our Net banking login.
 Login to Net banking using their credentials, choose the account, authenticate
using password and second factor authentication (MFA)
 On successful submission would be redirected to Income tax portal
 Receipt can be downloaded from Income tax portal instantly
See the circular for further details
Date: 04.01.2024
CO/IBD/35/2023-2024 -Dept: IBD -Circular No: 35 File No: 35
Margin Deposit entry for Letters of Credit/ FCY Bank Guarantee Outstanding as
on 31st December 2023
Branches having outstanding under Letters of Credit/FCY Bank Guarantee as on 31st
December 2023 are hereby advised to enter the details of margin deposit held for such
outstanding. (Deposit amount should be entered in full rounded off to nearest rupee and
not in lakhs or crores).
The details of outstanding and the provision to enter margin deposit is available in ALL
MENU>>Single Signon Application >>MENU>>IBD >>Forex>>Data Entry for Margin
Deposit.
Branches are also advised to complete the data entry before 12 January 2024.
Date: 04.01.2024
AO/VIG /108 / 2023-24 -Cir. No. : 13 / 2023-24 -R. No. : 108 / 2023-24
Preventive Vigilance – Operational aspects
It is being emphasised to staff members in all the meetings, circulars and training
programs that the prescribed systems and procedures should be strictly adhered in all

the operational areas of Banking. We have come across instances where the system
and procedures with regard to cash operations and account operations have been
violated without giving thought to the possible reputational / financial repercussion.
Cash remittances:
It has come to our notice that cash remittances are being effected by staff carrying cash
in shoulder bag on a two wheeler which is a serious violation of our guidelines.
Branches are advised to strictly follow Standard Operating Procedures for cash
remittance issued by Accounts department. The same is placed in Single signon
Application [201CO]>>> AO AND CO >>> Accounts >>> Blanket Insurance Policy.
We enumerate below a few important aspects of the circular.

 Cash should be carried only in the remittance box. The remittance box should be
in steel trunk boxes with locking facilities. Hand bags or any other mode of
carrying cash should not be used.
 Cash should be carried in a car/van/auto-rickshaw by two staff members only
and not in two wheelers.
Account operations:
It has come to our notice that branches are obtaining mandate letter as permanent tool
to operate the account. We have also come across instances where a Mandate letter
has been used for effecting transactions and the same is kept undated and unfilled.
Such practices should be avoided to alienate legal and operational risk. Mandate letters
should be used for short term only (say less than 3 months).
Non-compliance with the above guidelines would be construed as a dereliction of duty,

and the appropriative disciplinary measures would be taken against the erring staff
members / officers.
DATE: 04.01.2024
DEPT: BDC CROSS SELLING
OPERATING MANUAL FOR INSURANCE BUSINESS
Our Bank is registered with Insurance Regulatory and Development Authority of India
(IRDAI) as a CORPORATE AGENT with exclusive License No CA0023 which has been
last renewed on 17.03.2022 for a period of 3 years till 31.03.2025. The Registration of
the Bank under Corporate Agent (Composite) has been issued by IRDAI under “IRDAI
(Registration of Corporate Agents) Regulations, 2015”.
Bank as a Corporate Agent undertakes distribution of Life Insurance, General Insurance

and Health Insurance Businesses of different Insurers registered with IRDAI. A
corporate agent who has been issued a license by IRDAI should comply with the

procedure specified by the authority from time to time. It has, now, become the
responsibility of the Corporate Agents to ensure proper soliciting of business and
servicing of policy holders. Keeping in view the above regulations a Branch Operating
Manual has been prepared for the benefit of branches and Specified Persons.
It is also reiterated that the set procedures are followed without fail. The user manual
can be accessed from the below path
Single SignonIntranetInformationOthersUser Manual
It is essential that all employees are aware of the procedures. Branch Managers are
advised to instruct their team members to go through the manual.
DATE: 04.01.2024
LIC’S “JEEVAN UTSAV”- PLAN NO.871
We are glad to inform that LIC of India has launched a new plan “JEEVAN UTSAV”
individual savings plan. It is a Limited Premium plan with Guaranteed Additions
throughout premium paying term. Some of the salient features of the plan are given
below:
This plan is available for age starting from 90 days to 65 years. It gives
guaranteed Life Long income & Life Long Risk cover. Minimum PPT is 5 years &
Maximum PPT is 16 years.
For each policy year for which premium is paid, the guaranteed additions @Rs.40 per
thousand Basic Sum Assured shall accrue at the end of each policy year during the
premium paying term.
On survival of the Life Assured after premium paying term, the policy holder can choose
from:
Option I- Regular Income Benefit- which is 10% of the Basic Sum Assured payable at
the end of each policy year, starting after 3 to 6 years of the deferment period.
Option II- Flexi Income Benefit- Policy Holder can opt for Flexi Income Benefit under
which 10% of the Basic Sum assured payable can be accumulated and withdrawn later,
subject to the terms & conditions of the policy. LIC shall pay interest on such deferred
Flexi Income payments @5.5% p.a. compounding
Additional Liquidity is available through loan .
Attractive High Sum Assured rebate available

Optional Riders
1. LIC’s New Term Assurance Rider
2. LIC’s Accidental Death and Disability Benefit Rider
3. LIC’s Accident Benefit Rider
4. LIC’s New Critical Illness Benefit Rider
5. LIC’s Premium Waiver Benefit Rider
The detailed brochure of this product is annexed with this circular.
Date: 05.01.2024
DEPT: HRMD
Payment to Labour Welfare Fund by all Branches in Tamilnadu& Puducherry
The Tamilnadu Labour Welfare Board, Chennai has issued demand notice to all our
branches in Tamilnadu and Puducherry, seeking contribution both from employer and
employees towards Labour Welfare Fund for the Year 2023. The amount so collected
from both the employees and employer has since been credited in the “sundry creditors”
head of the respective branches. Therefore, the branches are hereby advised to debit
the said head and remit the amount by way of Demand Draft in favour of "The
Secretary, Tamil Nadu Labour Welfare Board, Chennai-6” payable at Chennai. It should
be sent to the below mentioned address.
A specimen of Labour Welfare report is available in Intranet 2.0 under HRMD - >Labour
Welfare Fund. Branches are advised to submit compliance report for the above on or
before 15/01/2024 positively to the below mentioned address.
"The Secretary,
Tamilnadu Labour Welfare Board,
PB No. 718, DMS Compound,
Teynampet, Chennai-600006".
Date: 09/01/2024
CO/CSD/ /2023-24 -Dept: Computer Systems -R.No: 2023-24
Maintenance of ATM during Holidays
The uninterrupted functioning of ATMs/BRMs (Self Service Banking) is necessary for
enhanced customer service. Further, in order to provide effective competition, we need
to maintain our ATMs up and running on 24 x7 basis. We draw attention of the branches
to various circulars issued by P&D on monitoring the premises during holidays and
monitoring of uptime of ATMs / BRMs.
The Bank is making all out efforts in keeping the ATMs / BNAs up and running by 24 x 7
throughout the year. It is important that all our ATMs must work uninterruptedly during
holidays.
To accomplish this every branch has to ensure the following –

(1) keep a close watch on the functioning of all the ATMs attached to the Branch (onsite
& Offsite)
(2) load sufficient cash to meet the disbursement during holidays and to avoid cash out
(3) hold additional cash in the Branch itself towards loading in ATMs in between
holidays to avoid cash out during holidays,
(4) attend to cash blocks if any, take up with vendor / support team / ATMCell in case of
issues
The Branch Managers and Key-custodians need to exercise utmost care and vigil
during the ensuing holidays. The Branches to arrange for the required cash before start
of the holidays. As per the Accounts Department circular dated 10.01.2018, if there is a
shortfall, the branches should take up in advance and ensure that sufficient cash is
mobilized and kept ready for loading in ATMs.
In case, the cash position in the ATM is reducing to a lower level, during the holiday
period, alert will be provided through SMS to the Branch Managers. Branches should
load additional cash depending upon the disbursement of cash in various ATMs
attached to the Branch. We seek the co-operation of all the Branches for maintaining
the uptime of ATMs/BNAs for uninterrupted service to customers.
The Branches, which are providing cash to CRAs (Cash Loading Agency) for the
purpose of loading in Offsite ATMs, should plan and maintain cash at the Branch itself
for providing cash to the Vendors during holiday periods. This arrangement is required
for maintaining all the ATMs without Cash out as per the regulatory guidelines and
compliance submission.
The Cash Pooling branches shall coordinate with the other connected branches in that
centre, for providing cash to branches in advance (before start of holidays) for additional
ATM cash loading during holidays or provide cash to the needy branches as and when
the need arise.
At all Branches, the Key-custodians should be available in Station (with safe keys)
during the holidays for visiting the Branch, ATM Cash loading and monitoring of ATMs.
They should load cash in the Onsite ATMs / BRMs when there is a Cash Out / Low
Cash situation in the ATMs attached to the respective branches.
The key-custodians shall also hold the Branch Mobile with them for responding to any
down call information from ATMCell or RDMs or other authorities.

Date: 10/01/2024
A.O./2023-24
Appointment of Assistant General Manager
Let us extend a warm welcome to Shri. Neelasrikandan V R who has joined our Bank as
Assistant General Manager on 06.01.2024.He has served in various Banks in different
capacities with 27 years of experience. Before joining our bank, he was Deputy Vice
President in Catholic Syrian Bank.
He will look after Advances Department at Administrative Office, Kumbakonam.
Date: 10.01.2024
Dept: Advances, Micro Credit -Circular No: 3082
Collecting Net worth Details of Jewel Loan Borrowers
From 11.01.2024, while opening Jewel Loans, branches are advised to obtain the
appended Net worth declaration form along with the Jewel Loan documents. The
appended form to be obtained with all the Jewel Loans opened at the branches.
Borrower’s Net worth Declaration
1. Name :
2. Address:
3. Occupation :
4. Reported Annual Income :
5. Details of Asset and Liabilities
Liabilities Value Rs. Asset Value Rs.
Liability to our Immovable

Bank properties
Liability to other Moveable asset

banks
Other outside Others if any

liabilities
total total
6. Networth (Asset – Liabilities)

I herewith declare the above information provided by me are true and correct state of my
affairs as on date:
Borrower signature
Date:
Branches, kindly take note of the same and Accord compliance

Date: 10.01.2024
Dept: CRMD
Auction Schedule for NPA Jewel Loans - as on 31.12.2023
Branch attention is invited to RMD circular ref. 340 dated 08.08.2014 on overdue jewel
loan auction guidelines (Link: 2.0->AO/CO-> Advances- > JL Auction process ->Auction
related Docs – Download ->Jewel loan guideline).
Branches are aware that the jewel loan auctions are conducted periodically after
identifying the Jewel Loan NPA and Probable NPA.
Accordingly, auction process is to be initiated for those accounts, which turned into NPA
as on 31.12.2023.
The process involved is:

 Issuance of Recall Notice
 Issuance of Auction Notice
 Paper Publication
 Auctioning of Jewel loan which are remaining pending after all the above three
process.
The details of accounts as specified above, are published in Link: 2.0- >AO/CO->
Advances-> JL auction Process-> List of Final Accounts to be auctioned) as on
31.12.2023. Branches are hereby advised to follow the procedures as enumerated
below for completion of the auction in a time bound manner.
Auction Notice Link:
Intranet 2.0  A.O and C.O  Advances  Recall Notice JL Prob NPA
Schedule:
1. Issuance of Recall Notice already sent to the respective branches in 201-CO on
various dates
2. Issuance of Auction Notice on 10.01.2024
3. Paper Publication between 19th, 20th & 22nd January, 2024 (Refer Annexure -2 of
the circular)
4. Date of Auction between 01st, 02nd & 03rd February, 2024 (Refer Annexure -2 of the
circular )
A. Issuance of Recall Notice:

Issuance of Recall Notice already sent to the respective branches in 201- CO on
various dates
For incurring RPAD charges, Central Office will credit the amount of Rs.30/- (Per BPID)
to respective branch’s expenses payable head No 31041000(BRC). Branch may debit
the same from the branch’s expenses payable head, to meet out the RPAD charges.

B. Issuance of Auction notice and Paper publication

 Branches are hereby advised to issue the Jewel loan auction notice (Form No.64 –
Annexure – 2) to the respective borrowers individually on 10.01.2024. Auction notice
format will be made available to the branches.
 Branches to ensure that the final auction notice (form-64) should be served only for
those pending/outstanding accounts for which recall notices have already been issued
in the prescribed format.
C. Auction Schedule:
 Those branches who have issued the recall notice are hereby advised to pursue the
JL NPA as on 31.12.2023 Auction Schedule for issuance of auction notice, paper
publication and auction. (Refer Annexure -2 of the circular )
 Branches are hereby advised to ensure the correctness of Gross weight and Net
weight details from the list available in Link: 2.0- >AO/CO-> Advances-> JL auction
Process-> List of Final Accounts to be auctioned) and report back to CRMD by mail
(crmd@cityunionbank.in) if there is any discrepancy in the data with attached scan copy
of the DPN.
 For your ready reference the auction schedule (part I) and branchwise auction date
(part II) is given hereunder.
 Branches are advised to strictly follow the auction schedule (part I) for issuance for
auction notice, date of paper publication and date of auction - for the final auction dates
mentioned in part II. Branches should carry out the process as per the dates mentioned
in the list without fail and upload the receipts of postal /paper publication and update the
status in New Intranet Server>Advances>JL Auction Process>JL Auction Notice and
Paper Publication Charges.
For those accounts for which paper publication was made earlier, branches need not
give paper publication once again and instead issue the cancellation of auction
intimation letter (Annexure 6 in JL Auction Process) with revised Auction date to the
borrower in consultation with CRMD.
Branches are advised to ensure the following;

 Auction notice is sent to all borrowers (except where accounts are closed) on
10.01.2024 for which branch has to download from the 2.0 server.
 Paper publication is made as per the timeline mentioned without any deviations. 
Auction is conducted as per the schedule specified.
 For accounts where the claim is involved / borrower residing abroad, the borrowers /
claimant should be advised to keep an outstanding balance of Rs. 1000 only.

 Wherever permission given earlier, the same stands cancelled and no such request
will be entertained this time.
 Waiver for any of the account should be entertained by the branches, only after
remittance of substantial amount (outstanding balance should be less than Rs.1000) by
the borrowers. This is applicable to cases where claim is not preferred or pending /
borrower residing abroad.
 Branches are advised not to request waiver for issuance of recall notice / auction
notice/paper publication.
 For group NPAs, only if other facilities are regularized / closed, permission for waiver
of JL auction will be allowed.
 After paper publication, remittance in part should not be entertained.
Renewal of Jewel Loan accounts are not permitted.
 Regarding the Postage / Paper Publication charges, menu has been enabled in
201co. (AO/CO- Advances  JL auction process Notice and Paper publication
charges. In the above menu branches are advised to upload the acknowledgement
copy, based on the copy/invoice attached, payment will be remitted in Expenses
payable head.
Note: For those accounts which are closed, need not issue auction Notice and charges
received in excess or collected from borrower should be reversed to below Head, and
The Branches are requested to collect the applicable charges from the borrowers
individually while closing during Auction and remit the charges to internal head.
DATE: 11.01.2024
“GRAND FINALE 2024” – Campaign for Life Insurance Business TATA AIA &
BAJAJ ALLIANZ Period: 01.01.2024 to 31.03.2024
We are launching a campaign for the period 01.01.2024 to 31.03.2024 for the Life
Insurance business procured through TATA AIA & BAJAJ ALLIANZ, to encourage the
Branches/ BDMs / ROs to achieve their Fee Income Target for the Year. The details of
the campaign and the qualifying criteria is given below.
General Conditions
1.Business procured through any of the Companies mentioned above will be considered
for the qualification
2. Business logged in between 01.01.2024 & 31.03.2024 and issued up to 15.04.2024
will be considered.
3. BDMs / ROs joining midway will carry full target.
4. The qualifier must be working with the Bank when the Training Convention is
conducted.

5. Cheque dishonour/free look cancellation cases will not be considered.

6. In case of dispute, the decision by AGM BDC Cross Selling will be final and binding.
7. Bank at its discretion may change or withdraw the program without assigning any
reason.
DATE: 11.01.2024
“CUB LEAGUE”- CAMPAIGN FROM LIC OF INDIA Period: 01.01.2024 to 31.03.2024
We are happy to inform that LIC of India has launched a campaign for the period
01.01.2024 to 31.03.2024. The details of the campaign and the qualifying criteria is
given below:
Added attraction:
A convention cum training Seminar will be arranged by CO, LIC for all Branch Heads of
Branches procuring Premium of Rs.1 Cr and above during the campaign period
For RDMs
A convention cum training Seminar will be arranged by CO, LIC for RDMs where 80% of
Branches qualify in either of the 5 criteria mentioned above.
General Conditions
1. For Training, qualified Branch Heads would be felicitated with Citation and other
Officials would be felicitated with Certificate of Merit
2. For Training, qualified Branch Heads would be entitled to travel by Air by economy
class cheapest fare available. Other qualified Officials would be eligible for 2nd AC
railway fare only by shortest route
3. For attending the convention, every participants would be entitled to travel by Air by
economy class cheapest fare available
4. Any cooling off, cancellation & CDA cases would not be considered while finalizing
the results
5. The entire proposal deposit amount collected and adjusted during the campaign
period only be taken into account in finalization of result of the above campaign
6. Executive Director (M-B&AC) reserves the right to add/delete/modify any of the
conditions of the competitions. His decision will be final in all matters related to this
competition.
Every BDM / RO must make use of the latest Star Customer list shared by the CSRMs
with the Customer’s Age / Gender/ BDM & RO mapping and follow the activities
suggested as below:
1. Prepare a list of minimum 40 Star customers with age between 30 and 50 years
2. Add the contact numbers of the Customers listed, as per point no.1 above

3. BDMs & ROs to generate the Product Quotations in the LIC All in One APP with
customer’s name, current age and with minimum premium of 2 Lacs.
4. Product Quotations to be sent to Customers through WhatsApp at the earliest with
the following message:
5. Call the Customer after sending the Quotation and the message, fix an appointment
with the Customer for a detailed presentation
6. Meet the Customer on the appointed Day & Time along with the LIC Branch
Manager/ABM/CSRM with the Branch Specified Person.
7. Introduce the LIC Branch Manager/ABM/CSRM to the Customer and allow him/her to
explain the salient features of the Product Illustration sent.
8. Do follow up meetings along with the LIC Branch Manager/ABM/CSRM
9. Convert minimum 5-6 policies, with total premium as per the qualifying criteria given
above through Specified Person.
Branches may get in touch with their respective CSRM/Circle Heads in case of any
clarification.
Date: 18.01.2024
DEPT: HRMD -Other State Allowance and Key Holding Allowance in Intranet 2.0
The following modules are being processed for sanctioning by our HRMD for the
various purposes as detailed below:
 Key Holding Allowance
 Other State Allowance
At present, Branches/Departments are sending their request for the above purposes
through ticketing, mails, hard copies etc. In order to quicken the process of
sanction/Approval and make it hassle free, we have enabled the above said modules in
Intranet 2.0 (Intranet  AO/CO HRMD).
All the employees in Branches /Departments are hereby instructed to follow the below
said instructions, before sending such requests.
General Instructions
Key Holding Allowance
 The above module has been enabled to all the Branch Heads in Intranet.
 Branch Heads have to select the eligible employee name / number from the drop
down list every month.
 The above said menu will be enabled on or after 15th and the same will be disabled
on or before 22nd of every month

Other State Allowance

In order to facilitate the process smoothly, we propose to implement the following
procedures w.e.f 20.01.2024
 You are aware, those who are working other than home state are eligible to enter
the details in Intranet.
 Module has been enabled to enter the details with required documents.
 The required documents are displayed in the Intranet menu itself.
 Once the request is initiated, it will go to their immediate Supervisor concerned.
 After his/her supervisor verified and forwarded the employee’s request, it will go to
HRMD for further processing and sanctioning.
Note:
All the request for other state allowance should be entered in the above module only.
We will not consider any request through mail/ hard copy / ticketing w.e.f 20.01.2024.
However, in case of any query / clarification the same can be sent through ticketing
(HRMD  Payroll Changes  Other state allowance).
The eligibility to avail the other state allowance will be scrutinized by HR as per circular
dt.31.07.2023. In case of rejection due to ineligible, the same will be sent with reason in
the said menu.
Branch / Department heads are advised to circulate the same to all the employees of
their respective Branch/ Department concerned, for their information
Date: 19.01.2024
Dept: Advances, Micro credit-Circular No: 2024-24 / 3083-R No. 112
Jewel Loan Focus
Branches are well aware that we have been witnessing a decent growth under Jewel
Loan portfolio over the years, both under Agriculture category and Non-Agriculture
category.
A study of recent Jewel Loan progress data shows that we have seen incremental
growth under Agriculture Jewel Loan category, despite reduction in KCC Jewel Loan, on
account of stoppage. But, under Non Agriculture Jewel Loan category, the growth is not
that much, more particularly from Urban and Metro branches, where we have Non
Agriculture Jewel Loan category, the growth is not that much, more particularly from
Urban and Metro branches, where we have Non Agriculture Jewel Loan business only.
It is disheartening to note that, in those Urban and Metro branches, where not KCC
Jewel Loan is available, Jewel loan growth is negative as there has been NO focus on
Jewel Loan by those branches, which is not acceptable.

The list of those Urban and Metro branches, with negative growth from March 2023 is
attached and they are advised to focus on NEW CUSTOMERS and source as many
new customers as possible, instead of depending on existing customers.
Branch Managers of Urban and Metro category are advised to bestow their personal
attention in focusing on new customers for showing positive growth from March 2023
and also to start getting incremental growth under Jewel Loan segment.
RDMs of those branches (as per the list attached) are also advised to show personal
during their visits to branches, to ensure focus is given for Jewel Loan growth and also
to ensure availability of Jewel Appraiser. If not, appointment of Jewel Appraiser may be
arranged for IMMEDIATELY.
It is needless to mention that Agriculture Jewel Loan focus is highly required in Rural
and Semi Urban branches, as the KCC Jewel Loan closure is almost over by now.
Date: 22-01.2024
CO/CSD/2023-24-Dept.: Computer Systems
Features enabled in Ticketing Tool
Reference is invited to our circular dated 19.10.2023 on Implementation of new features
in Ticketing Tool. We have enabled the archived reports for branch / departments to
view the old / archived tickets without depending on ticketing tool support team and
Auto Approval Flow of Ticketing as chosen by branches.
1. Archived Reports:
Currently in the menu, branches can view the closed tickets raised from 19-Oct-2023 to
30-Nov-2023. Henceforth the archival of tickets will be carried out once in every three
months by CSD and the closed tickets for three months will be available in the same
menu.
The steps to be followed for viewing of closed tickets in synergy ticketing tool under
archival report menu are as follows:
For Branches:
1. Login in to Synergy Ticketing tool->Home Screen->Click on Archive
2. User has to choose the archival period (Ticket pertains to which period) - Mandatory
3. User may also give particular ticket no. or from and to date or skill group to filter and
fetch the exact archived tickets. – Optional
2. Auto Approval Flow as Chosen by Branches:
Currently branches are raising tickets and if it involves more other one department
approval, then they need to call the respective departments to forward the tickets to
another department. Also in department side after authorization if they forget to forward
the ticket then it is held with the same department.

To avoid manual interventions and follow up by branches to get the approval from
multiple departments, we have enabled “Approval Flow” in our ticketing tool. In this
approval flow, First branch user will select execution department as well as the approval
departments while raising the ticket. Immediately the ticket will be available in the first
approval department as chosen by branch. Once it gets authorized, automatically the
ticket will be moved to second approval department, third approval department and so
on as chosen by branches. (Branch can choose maximum of 3 Departments for
approval).
After authorization is done by the last approval department or entire approvals as per
defined flow in place, the ticket will be automatically available for execution team.
For example:
 Branch wishes to debit customer’s Current / OD account without cheque.
 In this case branch needs to select Execution department as CDPC and Approval 1
Department as Inspection.
 After ticket is raised by the branch, it will be available at Inspection department for
approval. Once they authorize the ticket will be moved to CDPC for execution (who
is the Execution team).
 In this flow branch should choose the department, skill group and subskill group
correctly in both approval as well as execution level.
 Also in this flow, rejection or send for clarification will be available at each Approval
department. Branch / Department can view the ticket history and easily find out the
status of ticket by themselves.
The procedure to raise the ticket in Approval Flow is as follows:
For Branch user:

Go to create ticket option  Choose Approval
Select Execution department in Department Column and
Select Approval Departments (maximum of 3) in the respective table column
Date: 22/01/2024
Dept: Legal
Pilot Testing of obtaining Legal/ Title Opinion Digitally
We have engaged M/s. Maatrum Technologies and Legal Ventures Pvt. Ltd., (Maatrum)
an online portal for obtaining legal/ title opinion on a speedy and time bound manner to
combat the delay in obtaining legal opinion at the branch level.

On a pilot basis for testing purposes, we have obtained the services at Administrative
office level which are satisfactory. Branches are instructed to submit the below
mentioned details along with soft copies of the following documents for all the pending
provisionally sanctioned credit proposals (above Rs.50 Lakhs) through E-mail to
legaldesk@cityunionbank.in
Details to be mentioned in Mail:-
1. Sanction Number (Newgen/ LAPS),
2. Borrower Name
3. Present Property Owner Name
4. Latest Registered Document Number and Year in the name of Present owner
5. Village name of the Property
6. Name of Sub Registrar Office [SRO] where the last document is registered (as per
sl.no.4)
Documents to be submitted (formats like .doc, .docx, .jpg, .pdf, .png, .xls, .xlsx, .tif, .tiff):-
1. All title Deeds (including all Parent documents viz., Sale Deed, Settlement Deed, Gift
Deed, Will/ Probate, Power of attorney, Partition Deed, Exchange/ Release Deed,
Mortgage Deed, Discharge Receipt, Sale Agreement, Tri- Partiate agreement, Lease
Deed, NOC from Lessor, Land Conversion orders, Court Orders/ Judgement etc.,)
2. Patta (Tamilnadu), Andhra &Telengana (Pahani/ Patta), Khata/ RTC Records

(Karnataka)/ Satbara, 7/12 Records (Maharashtra), Khasra (Madhya Pradesh) any
other Revenue Documents
3. Legal Heir-ship certificate/ death certificate, Succession Certificate (if applicable)
4. Constitution documents, viz., If the property is owned by partnership firmPartnership

deed, Limited liability partnership/ LLP- LLP deed, Limited CompanyMemorandum &
Articles of Association, Trust – Trust Deed etc., (if applicable)
5. Layout/ Building Plan approval, (if applicable) 6. Utility bills like Electricity, Property
Tax, Water Tax, Drainage tax etc.,
Apart from the above documents, any further requirements/ queries raised by Maatrum
shall be called for through the respective branch mail id. Branches shall submit the
queries by mail to legaldesk@cityunionbank.in. Once all the required documents are
submitted, officer at legal department shall co-ordinate with Maatrum and ensure legal
opinion is obtained within 2 business days.
For the above services M/s. Maatrum Technologies and Legal Ventures Pvt. Ltd will be
charging a flat fee of Rs.2500/- (plus GST) per opinion/ property. In addition, branches

are advised to utilize the services of branch empanelled advocates for obtaining
confirmatory opinion, original document verification and SRO search reports. Branches
are instructed to utilize the above service effectively for converting the credit proposals
on a speedy and time bound schedule.
After obtaining internal approvals, we shall enable the branches to directly submit the
details and documents to M/s. Maatrum Technologies and Legal Ventures Pvt. Ltd for
obtaining legal opinion.
Date: 23/01/2024
A.O./2023-24
Appointment of Deputy General Manager
Let us extend a warm welcome to Shri. Hari Kumar Kasa who has joined our Bank as
Deputy General Manager on 18.01.2024.He has served in various Banks & Corporates
in different capacities with 25 years of experience. Before joining our bank, he was Vice
President in Bank of Bahrain and Kuwait.
He will look after Risk Management Department at Administrative Office, Kumbakonam.
Date: 23-01-2024
CO/CSD/2023-24 -Dept: Computer Systems
e-BG (e-Bank Guarantee)
Earlier, on 8th November 2023, we had issued a circular on e-BG (e-bank Guarantee).
The e-BG was live for most of the states. The e-BG was not active for few of the states
due to pending approval from the government offices.
 West Bengal Maharastra  Kerala  Madhya Pradesh Telengana

We are happy to confirm that, we have now received approval from the government, for
City Union Bank entity to issue e-BG for the above mentioned states and, we may begin
to execute e-BG for these states including the ones which was mentioned in our earlier
circular.
Note:
a) Existing Physical Bank guarantee issued, cannot be amended/closed/invoked in e-
BG platform.
b) The article code and stamp duty calculator has already been shared in our circular
CO/CSD/2023-24 dated 8th November 2023
c) The below mentioned states have not yet launched e-Bg and for these states, the
branches still need to continue with Physical stamping for BG.
Chattisgarh  Chandigarh  Haryana
For any issues, you may contact ebg@cityunionbank.in

Date: 29.01.2024
CO/CMD/ 2023-24 -File No.1
Obtention of LEI for Borrowers – Ensure on time compliance by Branches
We draw your immediate attention of the branches to RBI circulars & our earlier circular
dated 7th May 2022 on obtaining Legal Entity Identifier(LEI) for Borrowers. RBI has
come out with revised guidelines to banks vide its circular
DOR.CRE.REC.28/21.04.048/2022-23 dated 21st April 2022.
Legal Entity Identifier code is a 20 digit number to be obtained from Legal Entity
Identifier India Ltd (LEIIL) used to uniquely identify parties to financial transaction
worldwide. RBI has advised the lender banks to obtain LEI code for the non individual
borrowers having exposure of Rs.5 crore or more from the banking system. “Exposure”
in terms of aggregate exposure of fund based & non fund based exposure including
investment exposure from the banks / FI’s.
Presently LEI is mandatory in respect of following:
1) For all payment transactions of value Rs.50 crore & above using centralized payment
systems viz RTGS/NEFT.
2) For the borrowers having exposure of above Rs.25 crore from the banking system
Now, RBI has fixed the timeline upto 30th April 2024, to obtain LEI code for the
borrowers having exposure of above Rs.10 crore upto Rs.25 crore. Although RBI
circular allows time until April 2024, we urge the branches to complete this LEI code
compliance on or before 9th February 2024. Borrowers who do not obtain LEI as per the
schedule given by RBI are not to be granted renewal/enhancement of credit facilities.
Branch has to advise the borrower to obtain LEI code from https://www.ccilindia-
lei.co.in. For any reference, please refer https://www.ccilindia-
lei.co.in/Documents/User%20Manual.pdf.
Once again branches are advised to obtain the LEI code for the borrowers having
exposure of Rs.10 crore or more on or before 9th February 2024.
Updation of LEI in Bancs:
We can update LEI code in the following menu in CBS:
Amend Customer Details => Change Identification details => Drop down 55: LEI
code=> 20 digit number to be entered
For any clarifications you may contact, P. Sudharsanam, L. Deepak & S. Lavanya –
9384811327

Date: 30.01.2024
CO/ADV/115/2023-24 -Circular No: 3085 R. No: 115 File No. : 30
Processing of Fresh MSME Proposals upto Rs.5.00 Crores through Newgen
Your attention is invited to our Circular No: 3075 dated: 15.11.2023 issued on
processing of MSME fresh accounts up to Rs.3.00 Crore on NEWGEN. Branches have
so far logged in 953 proposals amounting to Rs.752.20 crores till yesterday on
NEWGEN MSME application.
As the system is now stabilized, Bank has now proposed to increase the processing
amount from Rs.3.00 crores to Rs.5.00 crores (CUB exposure of the borrower) from
Feb 01, 2024 for all fresh / takeover proposals which do not include non – funded
facilities / having group exposure of above Rs.5.00 Crore.
We have also introduced the following new developments in this digital journey.
(a) Hitherto, GST returns were scanned and uploaded. From 01st February ’24
onwards, it is mandated that branches shall trigger the link to customers through
SMS/email for fetching the GST returns from the portal directly & digitally. The customer
shall consent the digital fetch of GST returns by confirming the OTP in the link triggered
by the provided.
(b) As we have integrated with various Fintechs for automation, we shall be charging an
upfront fee of Rs.5000.00 for all proposals which are logged irrespective of status of the
proposal whether sanctioned or rejected.
(c) In case of any entities applying for a fresh loans against existing security, it is now
made available in NEWGEN.
All the documents required for processing and for according final sanction (ie. Legal
Opinion, Valuation Report and BMIR / RDM report) should be uploaded in the work item
only and no documents should be sent by emails or attached in the ticketing tool.
Branches may note the above changes and ensure that all the fresh loans for Existing
customers having an exposure up to Rs.5.00 crore (existing+ proposed) and New to
Bank customer up to Rs.5.00 crore with Udyam Registration Certificate should be
mandatorily logged in NEWGEN only. The exceptions shall be permitted to be
processed in LAPS with the prior approval from AGM/DGMs of Credit Department.
Branches are also advised not to entertain reconsideration of any proposals in LAPS
which were rejected in NEWGEN ie.,Swim Lane – Red(rejected status).
Since all the proposals are strictly monitored and any defects if found any shall be
viewed seriously.

Date: 30.01.2024
Dept: HRMD
MD & CEO Speech on Importance of Business Contribution
We have uploaded a video recording by our MD & CEO in our Learning Management
System (LMS) about the importance of business contribution and achievement of
individual targets.
This video highlights the importance of calls and meetings with star customers and
CLOC opening of wishlist customers above threshold limit, which will be taken into
account for their career progression and for getting HR benefits. It also highlights the
importance of proper followup by Branch Managers & RDMs for effective conversion of
wishlist customers & achieving business targets.
Our MD & CEO also emphasized the usage of “Maatrum” software for obtaining legal
opinion and “NEWGEN” for login of proposals.
All the employees in Branches & Departments are hereby instructed to view the video
on or before 05.02.2024.
Date:30-01-2024
AO /Cir/110/2023-24 R. NO.2023-24/110 Circular No: 9
Department: Inspection
REVISED KYC POLICY BOOK UPDATED TILL OCTOBER 2023
In order to comply with the latest changes in RBI’s Master Directions on KYC & AML
guidelines, we have modified and brought out the revised KYC Policy Book.
The soft copy of revised KYC Policy Book is enclosed for your ready reference.
Branches / Departments are advised to go through the policy and act strictly as per the
guidelines.
Further, branches are advised to take a printout and keep the same for their reference
and also for Regulatory and or Inspecting Officials
NEW LINK FOR STC E-PORTAL IN 201 INTRANET

Please visit Staff College E-Portal in 2.0 Intranet @
201 INTRANET 2.0 VERSION HOME PAGE MENU AO & CO
HRMD STAFF COLLEGE

CUB- MILE STONE TARGETS

(Rs in crore) 31.03.2023 31.01.2024 Business Target –
Short term goal
Total Business 96372 96417 100000
Deposits 52399 52577
Advances 43973 43840
(C/D83.92%)
CASA 15658 (29.88%) 15138 (28.79%)
Current 4765 4309
Savings 10893 10829
Term Deposit 36741 37439
BUSINESS TARGETS (BUM)
Particulars Metro Urban Semi-Urban Rural
25% growth subject Rs25 Cr Rs20 Cr Rs15 Cr Rs10 Cr

to minimum of
BDM’s Rs 7 Cr Rs6Cr Rs5 Cr Rs4 Cr
RM’s Rs 4 Cr Rs3Cr Rs2.5 Cr Rs2 Cr
CASA –Target per SB: 6 # SB: 4# SB: 3# SB: 2#

staff per month CA: 3* CA: 2 CA: 2 CA: 1*
(#SB account (*Min1 (*Min1 (*Min1 (*Any current a/c
includes only CUB- Platinum Platinum or Platinum or variant)
SB a/c with min.MAB CA) Gold CA) Gold or Silver
of Rs7500/ -) CA)
New star Customer 300 250 200 100
additions of customers customers customers customers
CLOC above 1.00 0.75 0.50 0.25
threshold from new
customers
(Both BDM’s& RMs)
NB: 75% of team members achieving their BUM targets & CLOC opening targets
Disclaimer:
The Content materials in this bulletin are compiled from RBI circulars, CUB circulars, The Indian
Banker monthly magazine and other Banking & Finance Journals and articles of financial experts
from various leading news papers and web sites. It is just for reference to CUB staff members and
internal circulation only .This material is not to be reported, copied, forwarded or made available to
others. V.NAGARJAN
V.P- STC, KUMABAKONAM

CUB-DASH BOARD
CURRENT RATES (Subject to change as per RBI monetary policy)
Policy Rates (wef 08.12.2023) Reserve Ratios
Bank Rate 6.75% CRR# 4.50% (from 21.05.2022)
Repo Rate 6.50% SLR 18.00% (from 01.04.2020)
Standing Deposit Facility Rate (SDF) 6.25%
Fixed Rate Reverse Repo Rate(FRRR) 3.35%
M.S.F Rate 6.75%
For all S.B Accounts(Domestic /NRO / NRE)- wef 01.11.2021 -If average Balance is below Rs1
lakh-3.00% ; Rs1 lakh and up Rs10 lakh-3.50%; if above Rs10 lakh & up to Rs49.99Cr- 4% and
Rs50Cr & above-5%(for staff categories additional 0.50% over and above the rates applicable))
For Fresh & renewals made on or after 05.04.2023 of Term Deposits(Domestic / NRO )
(For NRO deposits, Senior citizen rate is not applicable & Bulk deposit shall not be accepted
under “Flexi Fix scheme & 1% penal charge will be levied on pre-closure of all time deposits
except Flexi Fix scheme and on death claim deposits)
Callable Bulk dep.(wef 09.12.2023)
Rate of Interest % p.a
(Rs2cr& above but below Rs25Cr)#
PERIOD
*Senior Domestic/NRO-(Rs in Cr)
**General
Citizens-60+ Rs2-<5cr Rs5-<10cr Rs10cr<Rs25cr
7 days to 14 days 5.00% 5.00% 6.20% 6.25% 6.35%
15 days to 45 days 5.50% 5.50% 6.30% 6.35% 6.45%
46 days to 90 days 5.75% 5.75% 6.35% 6.40% 6.55%
91 days to 180 days 6.00% 6.00% 6.50% 6.55% 6.75%
181 days to 270 days 6.25% 6.50% 6.50% 6.55% 6.75%
271 days to 364 days 6.50% 6.75% 7.10% 7.10% 7.15%
365 days to 399days 6.75% 7.00% 7.65% 7.65% 7.65%
400days 7.00% 7.50% 7.15% 7.15% 7.15%
401 days to 3 years 6.50% 6.75% 6.70% 6.70% 6.70%
6.70% 6.70% 6.70%
Above 3 years and upto 10 years 6.25% 6.50%
(Rs25Cr& above, Pl.refer AO cir.)
Tax Saver 6.50% 6.50% NA
**For staff categories additional 1.00% over &above the rates applicable for General public category
NRE Term Deposits (wef 18.01.2023: (Senior Citizen rate is not applicable) -%p.a
PERIOD ROI Callable Bulk NRE Term deposit (wef 9.12.2023)
Rs2-<5Cr Rs5-<10Cr Rs10cr<Rs25cr
365 days to399 days 6.75% 7.65% 7.75% 7.65%
400 days 7.00% 7.15% 7.15% 7.15%
401 to 3 years 6.50% 6.70% 6.70% 6.70%
6.75%- 6.70% 6.70%
Above 3 years to 10 years 6.25%
(Rs25Cr& above, pl.refer AO cir.)
# Refer the ROI offered for Non-Callable Bulk deposit (Domestic/NRO/NRE) in A.O circular dt08.12.23
OUR BANK’S MCLR(wef 01.01.2024)
MCLR Tenor ROI p.a Tenor ROI pa Tenor RO.I p.a
Overnight MCLR 7.45% Four year MCLR 8.75% Eleven year MCLR 9.80%
One month MCLR 7.70% Five year MCLR 8.90% Twelve year MCLR 9.95%
3 months MCLR 7.95% Six year MCLR 9.05% Thirteen year MCLR 10.10%
6 months MLCR 8.20% Seven Year MCLR 9.20% Fourteen year MCLR 10.25%
One year MCLR 8.40% Eight Year MCLR 9.35% Fifteen year MCLR 10.40%
Two Year MCLR 8.45% Nine Year MCLR 9.50% EBLR wef 01.01.2024 9.70%
Three Year MCLR 8.60% Ten year MCLR 9.65% Base Rate-ef01.01.24 9.00%

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STC Monthly Bulletin

City Union Bank Ltd.,Staff Training College,Kumbakonam Page 1

CITY UNION BANK LTD.,

I) RBI -REGULATORY UPDATES:

(b) The budget contains a number of announcements and strategies indicating

(f)Capital expenditure outlay for Infrastructure development and employment generation

City Union Bank Ltd.,Staff Training College,Kumbakonam Page 2

(o) Revised Estimates (RE) 2023-24:

(p) Budget Estimates 2024-25:

City Union Bank Ltd.,Staff Training College,Kumbakonam Page 3

2)Inoperative Accounts /Unclaimed Deposits in Banks- Revised

RBI has recently issued revised instructions on Inoperative Accounts /Unclaimed

(c) A savings/ current account shall be treated as “inoperative‟, if there are no

City Union Bank Ltd.,Staff Training College,Kumbakonam Page 4

City Union Bank Ltd.,Staff Training College,Kumbakonam Page 5

3) Second Schedule to the RBI Act, 1934 – Norms for inclusion

4. Amendment to the Master Direction (MD) on KYC

City Union Bank Ltd.,Staff Training College,Kumbakonam Page 6

II) Updates from Banking &Financial Sector

City Union Bank Ltd.,Staff Training College,Kumbakonam Page 7

2) Reversal of SDF and MSF during Weekends /Holidays

3) Reporting of Reverse Repo transactions in Form A:

4) Withdrawal of Rs 2000 bank notes in India:

5) Banks have written off Rs 10.60 lakh crore in 5 years

6) Unclaimed Deposits with Banks rise by 28%

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7) Change in limit- Bulk Deposits for Urban Co-operative Banks

8) Annual Guarantee Fee Structure- Credit Guarantee Scheme for Co-

9) APB/ACH credits in case of in-operative accounts

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10) Messaging System in IMPS transactions

11) CCI Approval for Merger of Fincare SFB with AU SFB

12) Memorandum of Understanding between NPCI and Google Pay

The MoU has three key objectives.

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III) Updates from Financial & Economic Sector :

2) Companies Listing of equity shares in permissible jurisdictions

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4) Launch of PM- Janman Maha Abhiyan

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5) Issue of Yen Denominated Green Bonds by REC Limited

6) Appointment of Members of the Sixteenth Finance Commission

Finance Commission is a constitutional body for the purpose of allocation of certain

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IV) CONTEMPORARY BANKING:

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h) Deputy Ombudsman reports to Internal Ombudsman. In the temporary absence of

i) In the absence of Internal Ombudsman banks need to make temporary arrangement

j) The appointment of the Internal Ombudsman / Deputy Internal Ombudsman is of

Role and Responsibilities of Internal Ombudsman:

a) Complaints related to corporate frauds, misappropriation etc., except those resulting

b) References in the nature of suggestions and commercial decisions of regulated

c) Complaints / references relating to (i) internal administration, (ii) human resources, or

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Procedure for Complaint Redress by Internal Ombudsman:

 The regulated entity shall formulate a Standard Operating Procedure (SOP)

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V) CUB –HOME PAGE

Dr N. Kamakodi,M.D & C.E.O

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A.O. Important Circulars – January 2024

See the circular to know the details of revised rate of interest