Training Material From Clerk To S 1 2015-16 PROMOTION-STUDY-MATERIAL-2015 For Clericals

लिपिक से अधिकारी वर्ग श्रेणी–1 CLERK TO SCALE-I OFFICER
TYPES OF CUSTOMERS, BANKER CUSTOMER RELATIONSHIP,

BANKER‟S DUTIES & & RIGHTS, AND NOMINATION
1. A customer is a person who maintains an account with a bank. This definition of the D
customer is available as per:
a. Banking Regulation Act

b. Negotiable Instrument Act
c. RBI Act
d. KYC guidelines of RBI
e. Consumer Protection Act 1987
2. Banks do not disclose the affairs of the customer‘s account and maintains secrecy in C
terms of which Act among the following:
a. BR Act Section 27
b. RBI Act Section 17
c. Banking compaies (Acquisition & Transfer of Undertakings) Act 1970 Section43
d. Banking Secrecy Act Section 43
e. KYC guidelines of RBI
3. What is the relationship between a Banker and a Customer maintaining deposit A

account with a bank:
a. Debtor and Creditor

b. Trustee and Beneficiary
c. Principal and Agent
d. Creditor and Debtor
e. Bailer and Bailee
4. What is the relationship between a Banker and a Customer in case of safe custody of B
articles:
a. Bailer and Bailee
b. Bailee and Bailer

c. Trustee and Beneficiary
d. Principal and Agent
e. Creditor and Debtor
5. What is the relationship between a Banker and a Customer when a locker is rented E
out by a bank to a customer:
b. Lessor and Lessee

e. Lessee and Lessor
पन्ना Page 1
6. What is the relationship between a Banker and a Customer when a banker allows an E
overdraft in an current account

e. Creditor and Debtor
7. For a Loan to be raised, a person assigns his insurance policy in favour of the bank. B
The relationship between the banker and customer will be of:
b. Assignee and Assignor

e. Lender and Borrower
8. What is the relationship between a Customer and a Banker when a banker is acting on D
the standing instructions of a customer:

9. What is the relationship between a Banker and a Customer when a customer deposits C
some amount with a bank without giving full details of his account and banker retains
the amount in the sundry account:

10. In case of collection of Cheques and bills, the relationship of the banker with the D
customer is that of:
a. Creditor and Debtor

d. Agent and Principal
11. What is the relationship of the bank and RBI when bank is handling the currency C
chest:
a. Creditor and Debtor

c. Agent and Principal
d. Trustee and Beneficiary
12. Out of the following, which relationship between the bank and customer is not D
correctly stated:
a. Shares given for sale - Agent and Principal

b. Garnishee order - Debtor and Creditor
c. Payee of Draft - Trustee and Beneficiary
d. Articles left by mistake - Debtor and Creditor
e. Standing Instruction - Agent and Principal
13. Banker Customer relationship comes to an end under which of the following E
circumstances:
a. Death of Customer
b. Insolvency of the Customer
c. Insanity of the Customer
d. a and b
e. a to c
14. Under which of the following situations, the clayton‘s rule relates to: c
a. Payment of Cheques
b. Right of Set-off
c. Right of appropriation
d. b and c
e. None of the above
15. Clayton‘s rule applies to following type of loan accounts: E
a. Demand loans
b. Term Loans
c. Cash Credit accounts
d. Overdraft accounts
e. c and d above
16. Which of the following statement is correct regarding Garnishee Order and attachment B
order:
a. Attachment order is issued by competent court and Garnishee order is

issued by government authority
b. Attachment order is issued by government authority and Garnishee

order is issued by competent authority
c. Both the orders are issued by competent court
d. Both the orders are issued by government authority
17. What is the relationship between court and bank in case of garnishee order: C
a. Bank as Debtor and Court as Creditor

b. Bank as Creditor and Court as Debtor
c. Bank as Garnishee and Court as Court
d. Bank as Garnishee and Court as attached
18. In the process of issuing a garnishee order court first issues: A
a. Order Nisi
b. Order Attachment
c. Order Primary
d. Order Absolute
19. The right of set-off of a banker has been conferred on the banks in which of the B
following?
a. Negotiable Instruments act

b. Indian Contract act
c. RBI act
d. Civil procedure Code
e. Criminal procedure code
20. Who is a garnishee in case of a bank account, where a garnishee order is served: C
a. Judgement Debtor
b. Judgement Creditor
c. Judgement debtor‘s debtor ie bank called garnishee
d. Cash credit customer
e. Overdraft customer
21. The bank received garnishee order on savings account of Mr Sham at 11:00 a.m., C
who deposited Rs 5000/- at 12:30 p.m. i.e. after service of the order than which of
the following statement is right:
a. The order would apply to this amount also

b. The bank will refuse to accept the deposit
c. The order will not apply to this amount
d. The order will apply if court is informed
22. Out of the following statements related to Garnishee and Attachment order, which D
statement is right:
a. Garnishee order is applicable on all sums received after receipt of order and
attachment order is applicable only on all sums available at the time of receipt of
order
b. Attachment order is applicable for a joint account of A & B for order in the
name of A, to full extent
c. Garnishee order is applicable for a joint account of A & B for order in the name
of A to the pro rata extent
d. Attachment order is applicable on all sums received after receipt of order and
Garnishee order is applicable only on all sums available at the time of receipt of
order
23. On which of the following accounts, the garnishee order issued by a court or D
attachment order issued by income tax officer under section 226(3) of the Income
Tax Act 1961, does not apply:
a. Current Account
b. Savings Account
c. Cash Credit account with credit balance
d. Unutilized amount in overdraft limit
24. Who among the following would be natural guardian of a Hindu minor widow: E
a. Her Father
b. Her Mother, after death of her father
c. Her father in law
d. Her mother in law if the father in law has expired
e. c and d above
25. You are working in the loans department of the branch. A 17 year old person requests C
the bank to grant a loan against his FDR
a. Bank would accede to the request as it is a secured loan

b. Bank would not accede to the request as loan is to a minor
c. Bank cannot grant a loan but can make a premature payment, if such
request is received
d. None of the above
26. Who is the guardian of a Muslim Minor on death of the father: E
a. Mother
b. Grandfather, if no will from his father is there
c. Brother/ Sister
d. If there is will, the executor
e. b and d
27. The liability of a minor co-parceners for the loan raised by karta for HUF business is: C
a. Unlimited
b. Nil
c. To the extent of his share in the family property
d. No Co-parcener is liable
28. An HUF cannot become partner in a firm as per Supreme Court Judgement because: d
a. The no of partners including no of co-parceners of HUF can exceed 20

with passage of time
b. Because minors are also coparceners hence they cannot become
partners
c. HUF cannot be made liable through an agreement by action of 3 rd
parties
d. Any of the above
29. Which of the following cannot be a partner in a partnership firm, as per march 2011 C
guidelines of RBI:
a. A Partnership Firm
b. A Company
c. An NBFC
d. All of the above
30. Which of the following statement is true: C
a. Partnership is defined u/s 4 of Indian Partnetship Act and it can be

formed in writing only
b. An HUF, a company and a partnership firm, can become partner in
another firm
c. As per Section 25 of Indian partnership Act, the partners are liable
jointly and severally for all debts of the firm
d. All of the above
31. U/s 30 of Indian partnership Act: D
a. A major and minor can constitute a partnership firm

b. A minor will be personally responsible for the losses
c. A minor can be sleeping partner in a firm
d. A minor can be admitted to the firm for benefits only
e. b and c
32. Under which of the following circumstances, a partnership firm is dissolved where: D
a. Any of the partner dies

b. Any of them has been declared insolvent
c. All the partners agree to dissolve

d. In all these circumstances
33. Our customer Mr. A, while opening the VSU, had nominated his mother. But he wants A
to change it to his wife‘s name now but the deposit is not matured as on date.
Whether the change can be permitted?
a) Yes can be permitted now
b) Yes but only at the time of renewal of deposit
c) No it cannot be permitted
d) None of the above
34. Whether fresh nomination should be insisted during renewal of deposit? B
a) Yes
b) No it should not be insisted as previous nomination made shall continue to be in

force
c) None of the above
35. Mr.X, the deposit holder expired and he has nominated Mr.Y, his son for the account. b
But his wife and daughter have come to the branch and objected the payment to
Mr.Y. How should we deal with the situation?
a) We should not settle the claim in favour of the son (nominee)
b) We should settle the claim in favour of the son (nominee)
c) We should seek succession certificate and verify the claim of the legal heirs
d) We should settle the claim in favour of wife of the deceased
e) None of the above

36. One of our customers, who had a Fixed Deposit of Rupees One lakh, expired recently. C
As the deposit would mature only next year, the nominee is requesting for an LTD.
Can the loan be sanctioned?
a) Yes we can sanction eligible amount as LTD to the nominee
b) Neither we can sanction LTD nor can we do premature closure of the a/c
c) No loan shall be granted to the nominee on the deposits of the deceased however
if the nominee requests for pre-closure that may be entertained without charging
penal interest.
d) All of the above

37. Which of the following type of a/c can be covered under the ‗Nomination Facility‘? D
a) Deposit A/cs
b) Safe Deposit Lockers
c) Safe Custody of Articles
d) All of the above
38. Out of the following which statement is right in respect of the Nomination ? C
a) There can be only one nominee for a deposit a/c whether held singly or jointly
b) There can be more than one nominee for a Safe Deposit Locker held jointly.
c) Both a & b
d) All of the above
39. M/s Ram & Co, a partnership firm wants to appoint M/s. Santa and Banta Associates, C
their solicitors firm as the nominee. Can we accept the same?
a) Yes with an exception of allowing nomination in the name of individual not firm
b) Yes we can accept the nomination in the name of the firm
c) No as facility of Nomination is not available to Partnership concerns
d) All of the above

40. Out of below, who is a high risk customer? E
a) Antique Dealers
b) Arms and Ammunition Dealers
c) Politically exposed persons of foreign origin
d) Customers living in High-Risk countries
e) All of the above

41. Out of the below, who is a medium risk customer? E
a) A/cs having aggregate credits more than Rs 5.00 crores during previous year
b) Trust a/cs
c) Non Face to Face Customers
d) Fiduciary and Pooled A/cs
e) All of the above

42. A/ Holder in due course is the holder of an instrument who satisfies following D
condition?
a) Consideration b) Before Maturity c) Good faith d) All of the above
43. Holder in due course is defined under which section of N.I. Act? C
a)7 b)8 c)9 d)10 e) 13

44. Endorsements are defined under which section of N.I. act? D
a) 10 b) 11 c) 12 d)15 e) 13
45. Garnishee
d order is issued in how many stages? B
a) 1 b) 2 c) 3 d) 4 e) 5
46. Who and under what circumstances issues Garnishee order? A
a) Competent Court on the application of Judgement creditor in a situation where the

Judgement debtor refuses to pay debt.
b) Competent Court on the application of Judgement debtor in a situation where the

Judgement creditor refuses to pay debt.
c) Income Tax Department on default of payment of taxes by Judgement debtor
d)Excise and Taxation Department on default of Excise/ Sale tax by the

Judgement debtor
47. Which of the following is correct regarding the duties of the Bailee ? C
a) To take as much care of the goods as a man of ordinary prudence would take care
of his own goods
b) Not to make unauthorized use of goods
c) Not to mix bailor‘s goods with his own
d) To return the goods bailed when the money due thereon is paid
e) All of the above

48. A has a term deposit maturing on 02.10.2009 and 03.10.2009 is Holiday. on C
04.10.2009 the customer has requested for repayment of the deposit.
a) Interest will be paid only upto 02.10.2009
b) Interest will be paid upto 03.10.2009 to be calculated form the date of deposit
c) interest will be paid as per the maturity amt +additional two day interest(at
the contracted rate) on the maturity amount
d) interest will be paid as per the maturity amt +additional one day interest(at
the interest rate prevailing on the date of maturity) on the maturity amount

49. Under Limited Liability Partnerships Act, 2008 the firm has the capability of: c
a) only being sued
b) only to sue
c) of Suing and be sued
d) Neither sue nor being sued
e) none of the above are correct
50. In case of LLP Designated Partner should obtain Designated Partner Identification b
Number (DPIN) from
a) the state Government b) the Central Government
c) company law board d) not required in case
e) Registrar of Companies
ANSWER SHEET
TYPES OF CUSTOMERS, BANKER CUSTOMER RELATIONSHIP,
BANKER‟S DUTIES & & RIGHTS, AND NOMINATION
1 d 11 c 21 c 31 d 41 e
2 c 12 d 22 d 32 d 42 d
3 a 13 e 23 d 33 a 43 c
4 b 14 c 24 e 34 b 44 d
5 b 15 e 25 c 35 b 45 b
6 e 16 b 26 e 36 c 46 a
7 b 17 C 27 c 37 d 47 e
8 d 18 a 28 d 38 c 48 c
9 c 19 b 29 c 39 c 49 c
10 d 20 c 30 c 40 e 50 b
KYC / AML/ CFT
1. A Chit –Fund Company has approached one of our Branch and wants to open FD a/c C
for Rs 10 crore for a period of 3 years
a) Branch will issue FDR, which will help in achieving business target
b) Branch will issue FDR after getting consent from RBI
c) Branch will not issue as RBI directives do not allow FDRs in the name Chit fund
Companies
d) Branch can issue FDR only for a period of One year
e) Branch will issue FDR after getting consent from Regional Office
2. What is the cut off point amount of a cash transaction, under KYC that requires to be C
reported to FIU-IND
a) upto Rs 10 lac
b)Rs 10 Lac
c) above Rs 10 lac
d)Rs 20 Lac and above
e) All transactions
3. Under KYC guidelines banks are obtaining photograph of the account holders. What is b
the objective for this ?
a) for Customer verification
b) for proper identification
c) for tracing the person in case of fraud at a later stage
d) for safeguard against money laundering
4. In terms of KYC guidelines of RBI, a Demand Draft by accepting CASH can be issued d
for amount upto:
a) Rs 100000/- b) Rs 20000/- c) Rs 50000/- d) Rs 49999/-

5. Cash Transaction Report is part of ______ and is submitted with in ____ days of d
close of the month
a) Ombudsman scheme, 30 days
b) Money laundering, 25 days
c) KYC, 7 days
d) KYC, 15 days
e) BCSBI guidelines, 15 Days
6. Under KYC, which of the following documents can be accepted as a document of proof d
of name, address and activity of a proprietary concern
a)Sales Tax registration certificate
b)Service Tax registration certificate
c)Professional tax registration certificate
d)SSI certificate or Trade Licence under Shop & Establishment Act
e) Any of Above
7. As per Prevention of Money laundering Act , the Banks are required to maintain c
record of transaction for a period of ___from the date of cessation of the transaction
a) 2 years b)5 years c) 10 years d) 20 years e) 12 years
8. The customers who are categorised under ―PEPs‖ should be classified under c
a) Low Risk
b) Medium Risk
c) High Risk
d) Very High Risk
e) No Risk
9. As per the latest guidelines Updation of KYC for Low Risk Customers the periodicity is
a) At least every two years d

b) At least every five years
c) At least every eight years

d) At least every ten years
e) At least every three years
10. The Suspicious Transaction Report (STR) be furnished within ______ days of arriving
at a conclusion that any transaction, whether cash or non-cash, or a series of
transactions integrally connected are of suspicious nature a
a) 7 days
b) 15 days
c) 30 days
d) 90 days
e) 45 days
11. Stop Payment instruction can be accepted by e
a) Request letter duly signed by the drawer

b) Request received through E-mail received from the registered E mail i.d.
c) Stop payment received through Interactive Voice Response(IVR)
d) Only a & b
e) a to c
12. If the address provided by the account holder is the same as that on Aadhaar letter, a
a) it may be accepted as a proof of both identity and address.

b) Aadhaar document is not acceptable for KYC compliance.
c) Aadhaar can be accepted as supplementing document
d) Aadhaar can not be accepted as supplementing document
13. The Reserve Bank of India, has advised that the following two additional documents c
are included in the indicative list for opening current accounts of Proprietary concern:
a) The complete Income Tax return(not just the acknowledgement) in the name
of the sole proprietor where the firm‘s income is reflected, duly
authenticated/acknowledged by the Income Tax Authorities.
b) Utility bills such as electricity, water, and landline telephone bills in the name
of the proprietary concern.
c) Pan No of the Proprietor
d) Both a& b
e) Both a& c
14. As per latest guideline Of KYC/ AML, 'Beneficial Owner' shall mean d
a) the natural person who ultimately owns or controls a client

b) the person on whose behalf a transaction being conducted
c) a person who exercise ultimate effective control over a judicial person
d) All of the above

15. As per recent RBI communication, Banks should not allow opening and/or holding of
an account on behalf of a client/s by professional intermediaries, like Lawyers and
Chartered Accountants, etc., d
a) if they are unable to disclose true identity of the owners of the account/funds
due to any professional obligation of customer confidentiality.
b) if they are unable to disclose the true nature and purpose of transactions on
whose behalf the account is held.
c) If their obligation inhibits bank's ability to know and verify the true identity of
the client on whose behalf the account is held
d) All the above
16. As per KYC guidelines, the banks cannot have correspondent arrangements with c
‗Shell Banks‘. For this purpose, the ‗Shell bank ‗ mean
a) a bank having no existence but on paper only
b) a bank incorporated outside India and having a branch in India
c) a bank incorporated in a country where it has no existence and it is not regulated

by a regulating authority
d) a bank incorporated outside India and banned by UNO to have operations other
than in country of incorporation
e) a bank incorporated and operating in Tax heavens
17. Details of large sized cash transactions and suspicious transactions are maintained by e
banks under KYC to meet the requirements of:
a) Customer account secrecy
b) tracking unauthorized transactions
c) tracking unaccounted transactions
d) tracking tax evasion
e) tracking Money laundering activities
18. For opening a Savings Bank account of a Self Help Group, which of the following c
statement regarding KYC verification is correct?
a) verification is to be done for all members of the group
b) verification is to be done for all members and office bearers
c) verification is to be done for Office bearers alone
d) KYC verification is not applicable for SHG
19. A Customer undertakes a large amount of Cash transaction through his account. In c
spite of enquiring from him, he does not provide the details. It will be reported to
a) Local police
b) b) RBI
c) c) FIU-IND
d) d) it is personal issue for the customer
e) No reporting is required.
20. Under KYC guidelines, where a customer does not comply with the KYC requirement a
his account can be closed.
i) decision to close the account should be taken at a high level
ii) account should be closed after giving due notice to the customer
iii) account should be closed after explaining reasons to the customer
a) i to iii all are correct
b) i and iii only are correct
c) i and iii only are correct
d) ii and iii only are correct
e) None is correct
21. Current Account customers (excluding listed companies regulated entities) if b
aggregate credits to the account is in excess of Rs.5.00 crore during the previous
year are required to be categorized under
a) Low Risk
b) High Risk
c) Medium Risk
d) No categorization is required in case of current accounts
22. PMLA and the Rules notified there-under impose an obligation on banking companies, c
financial institutions and intermediaries of the securities market to verify identity of
clients, maintain records and furnish information to the __________________
a) RBI
b) IBA
c) Financial Intelligence Unit-India (FIU-IND).
d) Ministry of Finance GOI
e) Police Authorities
23. The Bank is supposed to send notice to a medium Risk category locker holder to
operate the locker or surrender if, it is not operated for:
c
a) one year b) two years c) three years d) five years e) ten years
24. Pan is required to be quoted as per RBI‘s KYC Guidelines if the amount of transaction c
in cash is
C
a) Above Rs 50000/- b) Less than Rs 50000/-
c) Rs. 50000/- or above d) Rs. 100000/- & above
e) Above Rs 25000/-
25. In a Basic SB deposit account what is the maximum no of deposit and cash
withdrawal (including ATM) transaction per month:
a) No such ceiling can be imposed.
b) 2
c) 4
d) 10
e) 5
KYC/AML /CFT
1 c 12 a 23 c
2 b 13 d 24 c
3 b 14 d 25 c
4 d 15 d
5 d 16 c
6 e 17 e
7 c 18 c
8 c 19 c
9 d 20 a
10 a 21 c
11 e 22 c
Customer service committees, Consumer Protection Act,

BCSBI, Best practices code
1. Which of the following are not the recommendation of Damodaran Committee
a) Collect mobile phone numbers of pensioners, willingness to accept SMS

b) Branches should create awareness about Reverse Mortgage Scheme among
pensioners/senior citizens.
c) Branches should create awareness about availing Housing Loan Scheme
among pensioners/senior citizens
d) After the demise of a pensioner the pension will be converted into family
pension. For such pensions the Savings Bank accounts which are opened in
―Either or Survivor‖ type should be converted to individual account.
e) All the above are recommendations of Damodaran Committee
2. The proposal for setting up the BCSBI was based on the recommendation made by
the ___________________ on Procedures and Performance Audit on Public
Services.
a) Tarapore Committee
b) Ghosh Committee
c) Rangarajan Committee
d) Pillai Committee
e) Naik Committee
3. Banking Ombudsman is appointed by
a) Central Government
b) Indian Bank's Association
c) Reserve Bank of India
d) None of the above.
e) Respective State Government
4. BCSBI was formed as per the recommendation of
a) Narasimhan committee
b) Rangarajan committee
c) Sri Krishna committee
d) SS Tarapore committee
e) Ghosh Committee
5. As per fair practice code for lenders, copy of loan agreement and related documents
to be given to
a) borrower on request in writing

b) guarantor on request in writing
c) both a and b
d) to borrower and guarantor even without request
e) a or b
6. Bank shall reimburse wrongly debited ATM transactions in terms sec 18 Payment &
settlement System Act 2007 within ----- days receipt of complaint
a) 7
b) 25
c) 30
d) 12
e) 15
7. Financial intelligence Unit (FIU) is a part of
a) RBI
b) IBA
c) MINISTRY OF HOME AFFAIRS
d) MINISTRY OF FINANCE
8. Under RTI act Any person who, does not receive a decision within the time specified
in, or is aggrieved by a decision of the Central Public Information Officer or State
Public Information Officer, as the case may be, may within ---------days from the
expiry of such period or from the receipt of such a decision prefer an appeal to such
officer who is senior in rank to the Central Public Information
a) 45 days
b) 30 days
c) 15 days
d) 60 days
9. Which of the following is FALSE with regard to Consumer Protection Act:
a) Consumer Protection Act – is a three tiered quasi judicial mechanism (District

Forum, State Commission and National Commission) implemented w.e.f.
April 15, 1987
b) It is applicable through out India except Jammu & Kashmir.
c) CPA covers all Goods & Services including Banking, Insurance, Transport,
etc.
d) A consumer individually or jointly, any voluntary consumer organization,
Central or State Govt can file a complaint
e) All the ABOVE are TRUE.
10. District Forum is established by
b) State Government
c) RBI
d) Ministry of Commerce of respective State Government
e) Ministry of Finance
11. State Commission is established by

b) State Government
c) RBI
12. National Commission is established by
b) State Government
c) RBI
13. To be appointed as President of District commission , the person shall be , or has

been qualified to be a
a) High court Judge

b) District Magistrate
c) District Judge
d) Supreme Court Judge
e) Any of the above
14. Subject to other provisions the jurisdiction of a District Forum is the value of the
goods or services and the compensation , if any claimed does not exceed
a) Rs 5 lacs
b) Rs 10 lacs
c) Rs 20 lacs
d) Rs 50 lacs
e) No Limit
15. Subject to other provisions the jurisdiction of a State Commission is the value of the
goods or services and the compensation , if any claimed exceeds ___ but does not
exceed ___
a) Rs 5 lacs , 20 lacs
b) Rs 10 lacs, 100 lacs
c) Rs 20 lacs , 100 lacs
d) Rs 50 lacs , 100 lacs
e) No Limit
16. Any person aggrieved by the order by passed by District Forum may prefer an
appeal to the state Commission within a period of ___
a) 15 days
b) 30 days
c) 60 days
d) No time limit
e) 45 days
17. If the order of the District forum involves payment of any amount by the person
preferring the appeal , the appeal cannot be filed at State Commission without
payment of
a) 25 % of the amount ordered amount to be paid or Rs 25000 , whichever is more
b) 25 % of the amount ordered amount to be paid or Rs 25000 , whichever is less
c) 50 % of the amount ordered amount to be paid or Rs 25000 , whichever is more
d) 50 % of the amount ordered amount to be paid or Rs 25000 , whichever is less
e) 60 % of the amount ordered amount to be paid or Rs 25000 , whichever is less
18. If the order of the State Commission involves payment of any amount by the person
preferring the appeal , the appeal cannot be filed at National Commission without
payment of
a) 25 % of the amount ordered amount to be paid or Rs 25000 , whichever is more
b) 25 % of the amount ordered amount to be paid or Rs 25000 , whichever is less
c) 50 % of the amount ordered amount to be paid or Rs 35000 , whichever is more
d) 50 % of the amount ordered amount to be paid or Rs 35000 , whichever is less
e) 60 % of the amount ordered amount to be paid or Rs 35000 , whichever is less
19. For filing any complaint before a District forum, State Commission or National
Commission the limitation period is ___ from the date of cause of action.
a) 30 days
b) three years
c) two years
d) no limitation period.
e) 60 days
20.
Obtention of photograph in case of Savings account with non-cheque facility and
term deposit accounts upto Rs 10000/- are exempted . this was on the
recommendation of which committee
a) Jilani Committee
b) Vyas Committee
c) Nayak Committe
d) Ghosh Committee.
e) Tarapore Committee
21.
Which Committee has recommended –Banks may be allowed to lend and borrow
short term funds up to 6 months in overseas markets.
a) Jilani Committee
b) Shere Committee
c) Nayak Committee
d) Sodhani Committee
22.
PAN quoting for deposit of cash with banking Company is compulsory, if the amount
exceeds
a) Rs 10000 or above
b) Rs 20000 or above
c) Rs 50000 or above
d) Rs 100000 or above
e) Rs.49999 or above
23. With the adoption of "Code of Bank's Commitment to Customers" by member Banks
of BCSBI, the following voluntary codes of IBA would not be applicable to them:
a) Bankers' Fair Practice Code

b) Fair Practice Code for Credit Card Operations
c) Model Code for Collection of Dues and Repossession of Security
d) All of the above
24. The Banking Codes and Standards Board of India (BCSBI) was set up as a
collaborative effort of ___________________, as an independent and autonomous
watch dog to monitor and to ensure that the banking codes and standards,
voluntarily adopted by banks, are adhered to, in true spirit by banks in delivering
the services, as promised, to their customers.
a) IBA and Member Banks

b) RBI and Banks
c) RBI and Finance Ministry
d) BCSBI and Banks
e) RBI and IBA
25. The BCSBI will not handle _________________ of complaints and grievances which
will continue to be handled by _______________.
a) Individual cases, Banking Ombudsman

b) Individual cases, Reserve Bank of India
c) Individual cases, IBA
e) Both (a) and (b)
26. Code of Bank's Commitment to Customers represents each member bank's
commitment to minimum standards of service to individual customers in relation to

products and services offered by the bank, like
a) Deposit accounts, Loans & Advances and Guarantees

b) Credit Cards and Internet Banking
c) Settlement of accounts of deceased account holders
d) All of the above
e) (a) and (b) only
27. Which Committee have recommended for Legal aspects of Bank Frauds – 2001
a) Padmanabhan
b) Dr. N. L. Mitra
c) V. S. Vyas
d) Malhotra Committee
28. Which committee recommended setting up Depository ?
a ) Bhave Cmmittee
b) V. S. Vyas
c) Dr N . L Mitra
e) Malhotra Committee
29. How many Depositories are there now ?
a) two b) NSDL c) CDSL d) All the above e) Five

30. The Swavalamban Yojana Scheme is a
a) Employment Generation Scheme for Rural Poor

b) Employment Generation Scheme for Urban poor
c) National Pension Scheme
e) Pension Scheme for Bankers‘
31. BCSBI is located at
a) Bangalore b)New Delhi c) Mumbai d) Pune e) Kolkatta
32. BCSBI monitors _____________________ compliance with its commitments, by

ensuring that the bank has the appropriate system and procedures in place, at all its
branches, for rendering customer service as committed to by the banks and that
these are effectively in operation.
a) Only Nationalised Banks

b) Only Private Banks
c) Only member Banks
d) Only Co operative Banks
e) Only Foreign Banks
33. Code of Bank's Commitment to Customers represents each member bank's
commitment to minimum standards of service to individual customers in relation to

products and services offered by the bank, like
a)Deposit accounts,
b)Loans & Advances and Guarantees
c) Credit Cards, Internet Banking Settlement of accounts of

deceased account holders
d) All of the above
e) Only a & c
34. Member banks of BCSBI would put in place the grievance redressal mechanism in
their banks, such as:
a) Have a Help desk / Helpline at the branch

b) Display at each branch name and contact number of Code Compliance Officer
c) Display Name and address of the Banking Ombudsman.
d) All of the above
e) Only a & b
35. Limitation period for appeal against order of One Consumer Court to another
Consumer Court under Consumer Protection Act is
a) 30 days from date of order

b) 45 days from date of order
c) 45 days from date of receipt of order
d) 30 days from date of receipt of order
e) 60 days from date of order
ANSWERS:
01 c 08 b 15 c 22 c 29 d
02 a 09 e 16 b 23 d 30 c
03 c 10 b 17 d 24 b 31 c
04 d 11 b 18 d 25 a 32 c
05 d 12 a 19 c 26 d 33 d
06 a 13 c 20 d 27 b 34 d
07 d 14 c 21 d 28 a 35 a
LIABILITY PRODUCTS
1. What is the additional interest rate for Senior Citizens applicable for the NRO/NRE
deposits below Rs. 1crore from the period of 1 year to 5 years.
a)0.50% b) 1% c)No Additional for NRO/NRE deposit
d)2% e) 1.50%
2. What is the additional interest rate for Ex-Staff Senior Citizens applicable for the
NRO/NRE deposits below Rs. 1crore from the period of 1 year to 5 years.
a)0.50% b)1% c)1.50% d)2%
e)No Additional for NRO/NRE deposit for ExStaff Sr.Citizen
3. What is additional ROI applicable for SENIOR CITIZENS under Capital Gains Scheme
& Vijaya Tax Savings Scheme?
a) 0.50% b)1% c)1.50% d)No additional rate applicable
e)2%
4. What is additional ROI applicable for Retired Staff Members under Capital Gains
Scheme & Vijaya Tax Savings Scheme?
a) 0.25% b) 1% c) 1.50% d) 2%
e) Additional rate as applicable to Senior Citizens - 0.50% only.
5. Bulk Deposits of Rs.5 crores & above can be opened by
a) Any Branch
b) Only by Branch identified by HO
c) Cannot be opened
d) Forex Branch
e) Only Branches in Metro Cities.

6. Vijaya Tax Savings Scheme offers additional interest for Senior Citizens
a)Yes b) NO c) Only SOMETIMES depending on amount
7. The Maximum amount that can be invested under Vijaya Tax Savings Scheme is
a) 100000, b)125000 c)150000 d)No Limit e)200000
8. ______________ are not eligible to form the part of the V- Parivar scheme
a) Minor accounts – V- GenUth scheme accounts

b) NRO accounts
c) V- Platinum savings accounts
d) V-Saral Savings Bank Accounts (Now VBasic)
e) NRE
9. Accounts to be opened with initial deposit as prescribed for savings bank account and
the combined average ___________ balance of accounts constituting the Parivar
Account shall be _________
a) monthly; Rs. 25,000/-

b) monthly; Rs. 1,00,000/-
c) quarterly; Rs. 1,00,000/-
d) quarterly; Rs. 50,000/-
10. Under V-Basic Savings Bank Deposit – Small Account, the aggregate of all
withdrawals and transfers in a month should not exceed Rs. __________
a) 1,00,000/- b) 50,000/- c) 25,000/- d) 10,000/- e) No LIMIT
Under V-Basic Savings Bank Deposit – Small Account, Balance in the account should
not exceed ………………. at any point of time.
11.
a) 1,00,000/- b) 50,000/- c) 25,000/- d)10,000/- e) NO LIMIT
12. Under V- Basic Savings Bank Deposit – Small Account, the total credits put together
should not exceed ________ in a financial year.
a) 1,00,000/- b) 50,000/- c) 25,000/- d) 10,000/- e) NO LIMIT
13. In the case of newly opened SB Accounts, cheque book can be issued only
______________.
a. on production of printed ―Letter of Thanks‖ sent by the branches, ensuring

correctness of the address of the account holder
b. if the account holder is not having ATM card
c. if the account is opened with proper introduction
d. after six months from the date of opening, the six months account
operations should be satisfactory to branch manager, then only the
cheque book will be given.
14. As per our Deposit Manual of Instruction, the branches can accept the term deposits
for the minimum period of ___________ and maximum period _______, but this
norm is not applicable for special scheme products.
a. 7 days; 10 years
b. 15 days; 10 years
c. 7 days; 5 years
d. 15 days; 5 years.
e. 7 days, No Time Limit.

15. Form ___ is required to be submitted by a person aged ABOVE 60 years for claiming
exemption from Deduction of Tax at source.
a)15G B) 15H C)24Q D)26Q E)Form61

16. Form ___ is required to be submitted by a person aged BELOW 60 years for claiming
exemption from Deduction of Tax at source.
a)15G B) 15H C)24Q D)26Q E)Form6

17. From the following who is not eligible to open V_Balika Savings Bank Account?
a) All SC/ST Girls who pass class VIII

b) All Girls who pass class VIII examination from Kasturba Gandhi Balika
Vidyalaya (irrespective of whether they belong to SC/ST).
c) Girl child should be unmarried
d) Girl Child studying in private unaided school
e) No specific rules all are eligible
18. What is the eligibility to open the V-Payroll savings bank account?
a) Minimum Number of Employees in the organization should be 10

b) Average net salary of the employee not less than Rs.5,000/- per month
c) Any of the above
d) Both (a) & (b)
e) Either a or b
19. Whenever a deposit presented for premature withdrawal, the rate of interest shall be
payable to the deposit is _____________
a) The contracted rate at which the deposit accepted will applicable

b) The rate applicable for period of deposit remained with the bank
c) The contracted rate or the rate applicable for period of deposit actually
remained with the bank whichever is lower is applicable
d) The contracted rate or the rate applicable for period of deposit actually
remained with the bank whichever is lower, less penalty if any, for such
premature withdrawal.
e) Rate will be decided by Individual Banks as per their Policy
20. Which of the following Deposit is issued at Discount on Maturity value
a)VSamman b)VSamruddhi c)VSiddhi d)444 e)555
21. Which of the following Deposit Schemes offers additional rate of interest for Staff
Members & ExStaff?
a)Capital Gains b)VSamruddhi
c)Vijaya Tax Savings Scheme
d)Both a & c e)Both a & b
22. What is the Rate of Interest applicable for VSamruddhi Deposit
a)9.20% b) 9.00% c)9.35 %
d) Interest as applicable for general deposits
e) 8.75%
23. The size of issue and denominations under V-Samruddhi Deposits is:
a) Rs.5,000/-, Rs.10,000/-, Rs.15,000/-, Rs.50,000/- & Rs.1.50 lakh

b) Rs.5,000/-, Rs.10,000/-, Rs.25,000/-, Rs.50,000/- & Rs.1.00 lakh
c) Rs.5,000/-, Rs.15,000/-, Rs.35,000/-, Rs.50,000/- & Rs.1.50 lakh
d) Rs.5,000/-, Rs.15,000/-, Rs.35,000/-, Rs.60,000/- & Rs.1.50 lakh
e) Any Denomination in units of Rs.1000/-
24. Maximum Loan that can be given against Loans against Term Deposits under
VSamruddhi Scheme is: (on Discounted Value)
a)90 b)80 c)75 d)70 e)85%
25. Deposits under ―Vijayashree Units‖ can be opened and partially withdrawn in Units
of
a) Rs.500 b) Rs.1000 c) Rs.2000 d) No Units specified e) Rs.1500
26. Which of the following is a ‗False‘ Statement with regard to Deposit scheme of Senior
Citizen?
a) No additional interest rates for Sr.Citizens on bulk deposits i.e. deposits of Rs. 1
crore & above.
b) The additional interest rates for the deposits below `1 crore has been increased
from 0.25% to 0.50% .a.
c) The additional interest rate for Sr. Citizens will be applicable for the deposits for
minimum period of 1 year and maturity of less than 5 years only.
d) No additional Interest Rate for NRO/NRE deposits.
e) All the Above Statements are TRUE.
27. What is the penal interest charges on the premature closure of Term Deposits by
Survivors/Nominees on settlement of the account ?
a) 1.5 % b) 1.0 % c) 0.5 % d) 0.0 % e) 2%

28. Which of the following is true regarding introduction in opening SB account ?
a) Introduction is a must b) Introduction is optional
c) Introduction is compulsory under Sn 131 of NI Act
d) Introduction is not necessary for opening SB account
provided other KYC provisions totally complied.
f) None of the above
29. In the case of claim payment in a minor account what of the following is true ?
a) claim amount can be given to all the legal heirs only
b) claim amount can be given to any one of the legal heirs only
c) claim amount can be given to anybody authorized by the legal
heirs only
d) claim can be given to the guardian only
e) Both a and b are right
30. Name the present SB Campaign of our Bank which aims for mobilization of SB
accounts, and will be valid till 29th February 2016.
a) SB Utsav b) ‗Each One Reach One to make Vijaya Bank Number One‘
c) ‗‗Rekindle the Relationship‘ d) Powerpair campaign e) SB Vijayotsav
31. Which of the following is False with regards to our Present SB Campaign:
a) Each one of the Vijayees to canvass a minimum of 1 SB account per week and
a minimum of 4 SB accounts per month.
b) The accounts should be opened with the stipulated minimum deposit as
applicable.
c) The account should be in operative status for a minimum period of 1 year from
the date of its opening.
d) Accounts opened under V-Payroll, V Gen-Uth and Pradhan Mantri JanDhan
Yojana are also Included from the SB mobilization drive.
e) KYC norms should be strictly adhered to, while opening the accounts.
32 Which of the following is not TRUE in respect of NRE DEPOSITS:
a) NRE accounts can be opened with funds remitted from abroad through Banks
by way of Demand Draft / Telegraphic Transfer / SWIFT transfer.
b) With Foreign Currency Notes / Foreign Travellers Cheques while on visit to
India.
c) Transfer from NRE Account at other Banks.
d) NRE accounts can be opened by transfer of funds from NRO to NRE.
e) All the above are TRUE.
33 Which of the following is not TRUE in respect of NRO DEPOSITS:
a) NRO accounts can be opened with funds remitted from abroad through Banks
by way of Demand Draft / Telegraphic Transfer / SWIFT transfer or through
local funds
b) Conversion of Local SB Accounts into NRO.
c) NRO accounts can be opened by transfer of funds from NRE to NRO.
d) No Repatriation is permitted from NRO deposits
34. Which of the following is ―NOT TRUE‖ in respect of Repatriation rules for NRE
Deposits?
a) Current income like rent, dividend, pension, interest etc; in India of the
account holder, net applicable taxes, is eligible for repatriation in NRE
Accounts, subject to maximum of USD one million, net of applicable taxes, for
all bonafide purposes per calendar year.
b) Funds can be remitted in Foreign Currencies payable in convertible Indian
Rupees and in foreign currency.
c) There is no MAX. Cap for remittance abroad for NRE ACCOUNTS.
d) The Interest earned in NRE Accounts are also eligible for Repatriation without
any limit/cap.
e) ALL the above are TRUE.
35. Which of the following is NOT TRUE in respect of FCNR-B Deposits
a) FCNR B Deposits can be opened for a minimum period of ONE year and Maximum
period of FIVE years
b) FCNR B deposits can be opened in EURO, US $, GB Pounds, Canadian Dollars and
Australian Dollars.
c) Interest earned as well as the principal amount is repatriable freely and can be
remitted abroad in the currency of depositor's choice. These funds can also be
credited to NRE SB A/c after conversion into Indian Rupees and the balances in
NRE account are also repatriable abroad.
d) If FCNR (B) deposits are withdrawn prematurely within the deposit period of 1
year, no interest is payable. Premature withdrawals after 1 year (if deposits
placed for longer periods) will be subject to penal interest of 1% below the rate
applicable for the period the deposit has remained with the bank.
36. Which of the following is NOT TRUE in respect of Resident Foreign Currency Deposit
Account (RFC) Deposits
a) RFC Account can be maintained in the form of a Current or Savings or Term

Deposit (minimum period 1 month, maximum period 3 year with applicable
simple interest) account in cases where the account holder is an individual
and in the form of current account or term deposit account in all other cases.
b) credits in RFC accounts are allowed from –
I. Remittances from outside India representing, Funds in Bank accounts

outside India held by NRIs Income such as dividend, interest, profit,
rent etc. earned on eligible assets held abroad, Sale proceeds of
eligible assets,
II. Pension or other monetary benefits received from outside India arising
out of employment taken up outside India prior to returning to India,
III. Interest earned on RFC account,
IV. Foreign Currency Notes / TCs brought back by returning NRIs and
Balances in NRE / FCNR Accounts of the account holder.
c) As regards Debits to The Account, the funds in a RFC account are free from all
restrictions regarding utilisation of the Foreign Currency balances including
any restriction on investment outside India.
d) All the above are TRUE.
e) Both a & b are NOT TRUE.
37. Which of the following is NOT TRUE in respect Exchange Earners‘ Foreign Currency
(EEFC) account
a) EEFC account can be opened by the exporter customer in major currencies,

namely USD, GBP and EUR to park their export receipts in foreign currency
without converting to INR. The facility is available with all our B – Category
branches .
b) It will enable the exporter to meet his payment obligations in foreign currency
(such as ECB repayment, repayment of FCNR (B) loan, payment for import
bills etc.,) without going through conversion process and thereby avoiding
exchange loss arising on account of such conversions.
c) The EEFC account is presently opened as a non-interest bearing current
account as per the extant guidelines of RBI.
d) The balance available in the EEFC account can be utilised by the exporter for
remittance towards any permitted current account or capital account
transactions as per FEMA regulations.
e) All the ABOVE are True.
38. Which of the following is NOT TRUE with respect to Inoperative Account:
a) All savings Bank and current accounts without customer as well as third party
induced, debit as well as credit transactions for over a period of two years,
should be classified as inoperative.
b) There may be instances where the customer has given a mandate for crediting
dividend on shares to Saving Bank account and there are no other operations
in the SB account. The same should be treated as a customer induced
transaction since the dividend on shares is credited to SB account as per the
mandate given by the customer. As such the account should be treated as
operative account as long as the dividend is credited.
c) In view of the above guidelines, for the purpose of classifying an account as
inoperative, both the types of transactions i.e. debit as well as credit
transactions induced at the instance of customers as well third party should
be considered.
d) All the Above are TRUE.
e) Both a & c are Not TRUE.
39. Which of the following is TRUE as regard Incidental charges for non maintenance of
Minimum balance?
a) Incidental Charges of Rs.100/- on in-operative accounts (both Savings Bank

and Current accounts maintained at branch/CAD,HO) for not maintaining
minimum balance.
b) No Incidental Charges on in-operative accounts (both Savings Bank & Current
accounts maintained at branch/CAD,HO) for not maintaining minimum
balance as per latest direction of RBI.
c) It is left to the discretion of the Bank to levy Incidental charges
d) All the Above are TRUE
e) Both a & c are TRUE
40. What is the Rate of Interest applicable for Term Deposits opened under ―Capital
Gains Scheme‖?No Interest applicable
a) Interest as applicable to NRE applies

b) Interest as applicable to Domestic&NRO applies
c) 1% additional interest over & above Domestic Deposit Rate
d) Only 4%
41. Which of the following is ―FALSE‖ with regard to CAPITAL GAINS Scheme?
a) Opening of Joint A/c. is permissible under the Scheme.

b) Deposits may be made in one lump sum or in stages at any time on or before
the due date of furnishing the return of income under sub section (1) of
section 139 of the Act.
c) In case of deposit under account 'A' , the depositor will be issued with a pass
book wherein all amounts of deposits, withdrawals together with interest due
shall be entered under the signature of the authorised officer of the branch. In
the case of deposit under Account 'B' , a deposit receipt with principal amount
of deposit, date of deposit, rate of interest, date of maturity of deposit etc.,
will be issued to the depositor.
d) Cheques book facilities are not permitted to CG A - Account A in view of the
system of withdrawal prescribed under the Scheme.
The minimum period of maturity of the deposits in Account 'B' is 15 days and
maximum is for any number of years. However in the case of these accounts
exemption may be available to the tax payer only if the capital gains are utilised
within a specified period as per the provisions contained in Sections 54, 54B, 54D,
54E and 54G of the Income Tax Act..
ANSWERS
1 c 11 b 21 b 31 d 41 a
2 e 12 a 22 d 32 d
3 a 13 a 23 b 33 d
4 e 14 a 24 c 34 a
5 b 15 b 25 b 35 e
6 a 16 a 26 e 36 d
7 c 17 d 27 d 37 e
8 d 18 d 28 d 38 d
9 c 19 d 29 d 39 b
10 d 20 b 30 b 40 c
Negotiable Instruments Act
1. Negotiable Instruments act is applicable in the state of:

a) All States except Union territories
b) the whole of India
c) the whole of India except J & K
e) Whole of India except Arunachal Pradesh
2. If no time is specified in a promissory note or bill of exchange, such

instrument is considered as
a) Inchoate instrument
b) Invalid instrument
c) Payable on demand
d) Not negotiable instrument
e) None of these
3. An order cheque was issued to Miss Rita Sharma as a gift on her marriage.
She is married to Mohit Solanki. The regular endorsement in this case will be :
a) Rita Sharma
b) Rita Sharma ( Now Rita Solanki)
c) Rita Sharma nee Rita Solanki
d) either b or c
e) none of the above
4. Which of the following is not a negotiable instrument as per NI Act 1881

a) Promissory note
b) Bill of Exchange
c) Cheque
d) Bank's Term deposit Receipt
5. Under Sec 138 of Negotiable instrument Act, the punishment for bouncing of
cheque is not applicable in case if
a) The cheque is issued for a vendor who supplied a machine
b) The cheque is issued for discharging a term loan
c) The cheque is issued to a friend from whom the drawer has borrowed
some money
d) The cheque issued to a charity club
e) None of these
6. Public holidays are declared under section _____ of NI Act.

a) 21 b) 22
c) 13 d) 25
e) None of these
7. Under Section 138, the maximum punishment for dishonor of cheque for want
of funds is
a) imprisonment for a term which may extend to two years
b) imprisonment for a period of one year
c) fine which may extend to twice the amount of the cheque

d) a or c or both
e) None of these
8. To be a holder in due course in the case of an order instrument:

a) a person should be its payee or endorsee
b) the instrument must be regular and complete in all respects
c) the instrument must have been received for valuable consideration before
the amount mentioned therein became due without having sufficient
cause to believe that any defect existed in the title of the transferor
e) all the above
9. Which of the following is not a material alteration?

a) Changing the date of the cheque
b) Changing the payee name
c) Changing the amount of the cheque
d) Converting order cheque to bearer cheque
10. in case of digital signature which is also known as electronic signature , the
number of key(s) used are
a) One b) Two(public & private)
c) Three d) Not required
11. Noting of a Bill of Exchange means:

a) the fact of dishonor recorded by Notary Public
b) the fact of dishonor recorded by the holder
c) Entering its due date in `due date diary`
d) getting the acceptance on the bill itself
e) getting particulars of a bill noted in a court of law
12. Noting of a bill or Promissory note is done by

a) Oath Commissioner b) First Class Magistrate
c) Holder d) Notary Public
e) Bank
13. As per provisions of sec 22 of NI actv 1881 days of grace are

allowed in case of
a) Cheques b) Usance Bills
c) Usance Promissory Notes d) Demand Bills
e) both b & c
14. ‗Allonge‘ refers to

a) the stamp affixed on an usance bill
b) the sheet of paper used in writing a bill
c) the sheet of paper attached to a negotiable instrument for making
endorsement
d) the cheque return memo used by the bankers
e) None of these
15. The word `Kite flying ` is used in case of

a) Dealing in exchange of foreign currency
b) Dealing in accommodation bills
c) Dealing in Lottery Business
d) a &c
16. A savings bank account was opened on 27.03.2015, and cheques book was
issued on 04.04.2015. on 08.04.2015 , a cheque was received by the paying
bank for Rs 25000/- which bears the date 15.03.2015 The cheque will
a) not be passed and returned with remark ―impossible date‖
b) be returned with the remark `Cheque dated prior to opening of account
c) be passed , if otherwise in order as ante date cheque is valid
d) Be returned with the reason `drawers confirmation required`
e) either b or d
17. Which of the following is a negotiable instrument out of the following - i)

airway bill, ii)Bank Note, iii) Letter of credit, iv) Currency Notes,
v)demand draft
a) i, ii, iii, iv, b) i, iii, iv, v
c) ii, iii, iv, v d) i, ii ,iv ,v
e) v only
18. A truncated cheque is defined under section ___ of NI act

a) 6 b) 13(a)
c) 6(a) d) 10
e) 9
19. Which of the following is not recognized by the NI Act 1881?

a) General Crossing b) Special Crossing
c) Not negotiable crossing d) Account Payee crossing
e) None of these
20. Inchoate Negotiable Instrument means:

a) Post-dated cheque b) Pre-dated cheque
c) Lost Instrument d) Incomplete Instrument
e) None of these
21. A cheque for Rs.100 is presented in clearing where payee‘s name is not
written. The cheque should be
a) can be paid by ascertaining the payee‘s name from the collecting branch
b) The cheque should be returned with reason ‗Cheque incompletely drawn.‘
c) as the amount involved is very small, the manager can pass the cheque
at his discretion
d) Should be paid as it is presented through clearing
e) None of these
22. On 30th Sep 2014, a customer presents a cheque across the counter for cash
payment. The cheque bears the date 31/09/2014. The cheque. Should be
returned with the remark
a) ‗Impossible date‘
b) The cheque is payable on 30th Sep 2014
c) The cheque is payable on 01st Oct 2014

d) The date should be changed and signed by the drawer to be passed
e) None of these
23. The time limit during which the bank has to return the dishonored cheque to
the customer is
a) one week b) two days
c) 24 hours d) One month
e) when the customer visits the branch
24. Banks are required to place before Audit/Management Committee the

information related to dishonored cheques on
a) Monthly basis b) Quarterly basis
c) Half Yearly basis d) Yearly basis
e) No such norms is fixed
25. In case a bill is presented to drawee , then what is the period which he has to
give his acceptance ?
a) 3 days including holidays
b) 3 days excluding holidays
c) 48 hours including holidays
d) 48 hours excluding holidays
e) 48 days excluding Sundays
26. A Bill dated 01.01.2015 is payable 2 months after sight and it was sighted on
15.01.2015. The due date for payment would be
a) 15.03.2015 b) 18.03.2015
c) 17.03.2015 d) 21.03.2015
e) 16.03.2015
27. what will be due date for a bill dated 10th November 2014 payable 4 months
after date
a) 15th March 2015 b) 13th March 2015
th
c) 15 March 2015 d) 11th March 2015
28. If a Promissory note is payable in instalments, the period of grace period is

available :
a) Only Once case
b) On each instalment
c) Only on last instalment
d) no grace period is available for Promissory note
29. In case of a Promissory Note , the time for payment is not mentioned , then it
is
a) invalid instrument
b) inchoate instrument
c) no payment can be demanded
d) payable on demand
30. A Promissory Note date 01.01.2015 is payable one month after its due date ,
it can be paid up to:

a) 01.01.2015 b) 04.02.2015
c) 02.02.2015 d) 03.02.2015
e) 31.01.2015
ANSWERS
Q no Ans Q no Ans Q no Ans

1 B 11 A 21 B
2 C 12 D 22 B
3 D 13 E 23 C
4 D 14 C 24 B
5 D 15 B 25 D
6 D 16 c 26 B
7 D 17 e 27 B
8 e 18 a 28 B
9 e 19 d 29 D
10 b 20 d 30 b
Legal aspects of banking – RBI Act, BR Act, Limitation Act, Companies

Act, Partnership Act, Indian Contract Act, Income Tax Act, RTI Act (All
Acts other than NI Act) Compliance and frauds, inspection and audit,
RBIA latest developments and physical security
1 Who can be the Central Assistant Public Information Officer at Head Office under RTI D
Act, 2005?
a) AGM stationed at Head Office

b) CM stationed at Head Office
c) DGM stationed at Head Office
d) GM stationed at Head Office
e) Any of the above
2 If the information requested for is held by and the subject matter relates to other D
public authority/CPIO [i.e CPIO of other R.O‘s, H.O. or other organisation], the
recipient CPIO shall transfer within …….. days of the request, to that other CPIO
and inform the applicant immediately
a) 5
b) 7
c) 30
d) 10
e) 15
3 Who can make a request under the RTI Act, 2005 E

a) Only Citizens of India
b) Company
c) Society
d) All of the above
e) None of these
4 The CAPIO on receipt of an application seeking information under the Act will send it B
…………………… to the concerned CPIO directly
a) immediately
b) within 7 days
c) within 10 days
d) within 30 days
5 It is ……………………. for the applicant to give reasons for seeking information E

a) Optional
b) Necessary
c) Not Necessary
d) Sometimes necessary
e) None of these
6 If a citizen is not satisfied with the decision of the Appellate Authority of the Bank, D
he/she can prefer a 2nd Appeal to the ……….………
a) CVO
b) Ombudsman
c) Central Information Commission
d) Consumer Forum
7 RTI Act extends to D

a) except the State of Sikkim
b) except the State of Jammu and Kashmir
c) except the State of Tamilnadu
d) All of the above
e) None of these
8 Under which of the following circumstances a partnership firm is dissolved? E

a. any of the partners die
b. any of them declare as insolvent
c. all partners agree to dissolve
d. All the above
9 Limited Liability Partnership Act , 2008 applies to

a) the whole of India
b) the whole of India except the State of Jammu and Kashmir
c) the whole of India except the State of Tamilnadu
d) the whole of India except the State of Sikkim
e) None of these
B
10 ………… Majority of Partner can expel any other partner in a Limited Liability
Partnership
a) Simple Majority
b) 75 %
c) 80 %
d) None unless power to do so has been conferred by express agreement
e) 67 %
11 Subject to contract between the partners,-

(a) every partner has a right to take part in the conduct of the business;
(b) every partner is bound to attend diligently to his duties in the conduct of the
business;
(c) any difference arising as to ordinary matters connected with the business may be
decided by a majority of the partners, and every partner shall have the right to
express his opinion, before the matter is decided, but no change may be made in
the nature of the business without the consent of all the partners; and
(d) every partner has a right to have access to and to inspect and copy any of the
books of the firm.
(e) All of the above are correct
12 In the absence of any usage or custom of trade to the contrary, the implied authority
of a partner empowers him to-
(a) submit a dispute relating to the business of the firm to arbitration,
(b) open a banking account on behalf of the firm in his own name,
(c) compromise or relinquish any claim or portion of a claim by the firm,
(d) withdraw a suit or proceeding filed on behalf of the firm,
(e) None of these
13 In the absence of any usage or custom of trade to the contrary, the implied authority
of a partner -
(a) does not empower him to admit any liability in a suit or proceeding against the
firm,
(b) does not empower him to acquire immovable property on behalf of the firm,
(c) does not empower him to transfer immovable property belonging to the firm, or
(d) does not empower him to enter into partnership on behalf of the firm.
(e) does not empower him to any of the above
14 Which of the following is correct
(a) A Firm may convert into a Limited Liability Partnership

(b) A Company may convert into a Limited Liability Partnership
(c) Both (a) and (b)
(d) Neither (a) nor (b)
(e) Either (a) or (b)
15 An individual shall not be capable of becoming a partner in Limited Liability

Partnership if :
(a) he is an undischarged insolvent
(b) he has been found to be of unsound mind by a court
(c) he has applied to be adjudicated as insolvent and his application is still pending
(d) All of the above
(e) None of the above
16 Every Limited Liability Partnership shall have

(a) atleast two partners
(b) atleast three partners
(c) atleast four partners
(d) atleast five partners
17 HINDU SUCCESSION ACT, 1956 applies to


e) None of these
18. The following persons are Hindus, Buddhists, Jainas or Sikhs by religion, as the case
may be:-
(a) any child, legitimate or illegitimate, both of whose parents are Hindus,
Buddhists, Jainas or Sikhs by religion;
(b) any child, legitimate or illegitimate, one of whose parents is a Hindu, Buddhist,
Jaina or Sikh by religion and who is brought up as a member of the tribe,
community, group or family to which such parent belongs or belonged;
(c) any person who is a convert or re-convert to the Hindu, Buddhist, Jaina or Sikh
religion.
19 A person shall be disqualified under Hindu Succession Act from succeeding to any
property on the ground of any
(a) disease
(b) defect
(c) deformity
(d) Both a and b
20. Hindu Succession Act 1956 applies-

(a) to any person, who is a Hindu by religion in any of its forms or developments
including a Virashaiva, a Lingayat or a follower of the Brahmo, Prarthana or Arya
Samaj;
(b) to any person who is Buddhist, Jaina or Sikh by religion; and
(c) to any other person who is not a Muslim, Christian, Parsi or Jew by religion
unless it is proved that any such person would not have been governed by the
Hindu law or by any custom or usage as part of that law in respect of any of the
matters dealt with herein if this Act had not been passed.
21. Reserve Bank of India Act, 1934 extends to

e) None of these
22 Governor of RBI is appointed by:

(a) Board of RBI directors
(b) Indian Banking Association
(c) Central Government
(d) CAG
23 A Nationalised bank maintains Currency Chest in the capacity of___________

with RBI.
(a) Agent and Principal
(b) Bailor and Bailee

(c) Licensor and Licencee
(d) None of the Above
(e) Either a or b
24 Commercial banks can obtain fund by way of rediscounting of eligible bills with RBI
under section:
a) 17(2) and 17(3) of RBI Act 1934
b) 17(5) of RBI Act
c) 17(1) of Banking Regulation Act
d) Section 19 of RBI Act
25 U/s 49 of RBI Act, which of the following is done by RBI :

(a) Issue of Notes
(b) Announcement of Bank Rate
(c) Government Business
(d) Maintenance of Currency Chest
26 Under Section 5(n) of Banking Regulation Act, secured loans or

advances
mean:
(a) Loans and advances which have been granted against security of assets, the market
value of which is not less than the amount of such loan or advance at anytime.
(b) Loans and advances which are granted keeping mortgage of land.
(c) Loans and advances which are granted against 3rd party guarantee.
(d) Secured by any assets
(e) All of the above
27 As per Section 5(f) of Banking Regulation Act, demand liabilities mean
(a) Deposit in saving and current accounts

(b) Liabilities which are payable on demand
(c) Liabilities which are payable after a pre determined period
28 As per Banking Regulation Act , 199 "fortnight" shall mean the period
from
(a) Saturday to the second following Friday, both days inclusive

(b) Monday to the second following Saturday, both days inclusive
(c) Saturday to the second following Friday, both days excluded
(d) Monday to the second following Saturday, both days excluded
(e) None of the Above
29 Banks can undertake the business of banking and ‗banking‘ as a term has
been defined under
(a) Banking Regulation Act Section 5 (n)
(b) Banking Regulation Act Section 5 (b)
(c) Banking Regulation Act Section 5 (f)
(d) Banking Regulation Act Section 5 (c)
30 Which of the following is correct as regards Cancellation of Stamp
(a) Whoever affixes any adhesive stamp to any instrument chargeable with duty which
has been executed by any person shall, when affixing such stamp, cancel the same so
that it cannot be used again
(b) Whoever executes any instrument on any paper bearing an adhesive
stamp shall, at the time of execution, unless such stamp has been already
cancelled in manner aforesaid, cancel the same so that it cannot be used again.
(c) Any instrument bearing an adhesive stamp which has not been cancelled
so that it cannot be used again, shall so far as such stamp is concerned, be deemed to be
unstamped.
(d) The person required by sub-section (1) to cancel an adhesive stamp may cancel it by
writing on or across the stamp his name or initials or the name or initials of his firm
with the true date of his so writing, or in any
other effectual manner.
(e)All of the above are correct
31 A owes B Rs. 1,000.A sells a property to B, the consideration being Rs. 500 and the
release of the previous debt of Rs. 1,000 Stamp-duty is payable on
(a) Rs. 1000. (b) Rs. 1500 (c) Rs. 500 (d) NIL (e) Rs. 2000
32 "Legal proceeding" as defined in THE BANKERS' BOOKS EVIDENCE ACT, 1891 means,-
-
(a) any proceeding or inquiry in which evidence is or may be given;

(b) an arbitration
(c) any investigation or inquiry under the Code of Criminal Procedure, 1973
33 The Finance Bill 2013 has introduced a new section 194-IA providing for TDS
@ 1% to be deducted on purchase value of immovable property if the same exceeds
............... per property.
(a) Rs. 50 Lakhs (b) Rs. 15 Lakhs (c) Rs. 20 Lakhs (d) Rs. 10 Lakhs (e) Rs. 25000
34 TDS is to deposited by bank within:

(a) 7 days from the close of the month in which deduction is made
(b) 7 days from the date on which deduction is made
(c) 15 days from the date on which deduction is made
(d) 15 days from the close of the month in which deduction is made
(e) None of the Above
35 For the purposes of Income Tax Act, An individual is said to be resident in India in any
previous year, if he —
(a) is in India in that year for a period or periods amounting in all to one hundred and
eighty-two days or more ; or
(b) having within the four years preceding that year been in India for a period or periods
amounting in all to three hundred and sixty-five days or more, is in India for a period
or periods amounting in all to sixty days or more in that year
(c) Either a or b
(d) Both a and b
(e) None of these
36 Interest payment is subject to TDS:

(a) if interest on FDR exceeds Rs. 10000 in a financial Year
(b) any amount of interest payment, if it is an NRE Account
(c) any amount of interest payment ,if it is an NRO account
(d) Both a and c
(e) Both a and b
37 Form 15 G is required to be submitted by a person aged _________ years for

claiming exemption from deduction of tax at source
(a) between 60 and 80 (b) above 60 (c) below 60 (d) Both a and c (e) above 80
38 Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the
month of February, 2015 was
(a) 15 March 2015
(b) 22 March 2015
(c) 31 March 2015
(d) 07 March 2015
(e) 20 March 2015
39 What is the due date for furnishing Copies of declaration received in Form No. 60/61
(not being — received at the time of opening a bank account) during October 1, 2014
to March 31, 2015 to the concerned Director (Investigation)
(a) 15 April 2015

(b) 22 April 2015
(c) 30 April 2015
(d) 07 April 2015
(e) 20 April 2015
40 What is the due date for filing Quarterly statement of TDS/TCS deposited for the
quarter ending March 31, 2015
(a) 15 May 2015

(b) 22 May 2015
(c) 31 May 2015
(d) 15 April 2015
(e) 30 April 2015
41 No deduction is required to be made when the aggregate amount of commission and

brokerage income credited or paid or likely to be credited or paid during the financial
year does not exceed .........
(a) Rs. 1000 (b) Rs. 1500 (c) Rs. 5000 (d) NIL (e) Rs. 2000
42 No deduction is required to be made where the aggregate amount of rent credited or

paid during the financial year does not exceed ..................
(a) Rs. 100000 (b) Rs. 180000 (c) Rs. 150000 (d) NIL (e) Rs. 200000
43 TDS u/s 194J ie., TDS from Fees for Professional or Technical Services or
Royalty is NOT required to be made where the aggregate amount of such sums paid or
credited during the financial year does not exceed ............
(a) Rs. 30000 (b) Rs. 18000 (c) Rs. 15000 (d) Rs. 10000 (e) Rs. 20000
44 Deduction of tax at source from MICR processing charges is

(a) not done
(b) done by treating the same as commission or brokerage
(c) done by treating the same as technical services
(d) branches to work out required modalities for tax deduction in consultation with other
member Banks
(e) branches/offices to collect no tax deduction certificate issued by the assessing officer
from the Bank managing the clearing house operations
45 TDS from payments has to be deducted after ............ service tax component
(a) including
(b) excluding
(c) including 50 %
(d) excluding 50 %
46 Wherever the declaration in Form No.60 and 61 is obtained from the customer the
branch/office head should demand .............. while accepting declaration in Form
No.60 and 61
(a) Identity Proof (b) Proof of Address (c) PAN Card (d) Undertaking (e) Indemnity
Bond
47 As per the provisions of law, furnishing of wrong PAN as well as TAN in the
challans, certificates, statements or other documents attracts penalty of ....
(a) Rs. 10000 (b) Rs. 1000 (c) Rs. 15000 (d) Rs. 25000 (e) Rs. 20000
48 A cheque issued by the director of a limited company is presented for payment

after death of the director which the bank pays. But the Co. raises the claim on
the plea that the bank can not pay such cheque after death of the director.
(a) bank can not pay the cheque as the drawer expired.
(b) Bank can pay the cheque as the Co. is still a legally competent person to contract and
the director signed as agent of the Co.
(c) Bank should contact the Co. because the loss will be of the Co. in case of dispute.
(d) Either a or c
(e) Both a and c
49 Minimum No. of Directors in a Public Limited Co.

(a) 4 (b) 3 (c) 7 (d) 10 (e) 2
50 In a Pvt. Limited Co., the minimum and maximum number of shareholders can
be,
(a) 2 and 20 (b) 2 and 50 (c) 100 and 1000 (d) 20 and 50 (e) 20 and 100
51 While opening the current account of a Pvt. Company, which of the following
document is not insisted by the banks:
(a) Certificate of incorporation

(b) Memorandum of Association
(c) Commencement of business certificate
(d) Article of association
(e) Resolution from Board of Directors
52 A company may be formed for any lawful purpose by—

(a) seven or more persons, where the company to be formed is to be a public company
(b) two or more persons, where the company to be formed is to be a private company
(c) one person, where the company to be formed is to be One Person Company that is to
say, a private company
(d) Either a or b or c
53 A company shall, on being so requested by a member, send to him within seven days
of the request and subject to the payment of such fees as may be prescribed, a copy
of :—
(a) the memorandum (b) the articles
(c) every agreement and every resolution referred to in sub-section (1) of section 117, if
and in so far as they have not been embodied in the memorandum or articles
(d) All of the above (e) None of the above
54 A public company may issue securities under Companies Act 2013 —

(a) to public through prospectus (herein referred to as "public offer")
(b) through private placement (c) through a rights issue or a bonus issue
(d) Any of the above (e) None of the above
55 Every company shall keep at its registered office,—

(a) where a contract of service with a managing or whole-time director is in writing, a
copy of the contract
(b) where such a contract is not in writing, a written memorandum setting out its terms
(c) Both a and b
(d) Neither a nor b (e) Either a or b
ANSWERS
1 B 11 E 21 A 31 B 41 C 51 C
2 A 12 E 22 C 32 D 42 B 52 D
3 D 13 E 23 A 33 A 43 A 53 D
4 A 14 C 24 A 34 A 44 C 54 D
5 C 15 D 25 B 35 C 45 B 55 C
6 C 16 A 26 A 36 D 46 B
7 B 17 B 27 B 37 C 47 A
8 D 18 D 28 A 38 B 48 B
9 A 19 E 29 B 39 C 49 B
10 D 20 D 30 E 40 A 50 B
RETAIL LENDING SCHEMES
1 Maximum____ month salary/income could be sanctioned under V-Home loan:
a. Up to 75 times of Monthly average income for other than salaried class (Monthly
average of past 24 months).
b. Up to 75 times of Monthly average income (Monthly average of past 36 months).
c. Up to 75 month‘s gross salary, based on last drawn salary.
d. (a) and (c) above.
e. None of the above.
2 Maximum repayment period permitted under V-Cash is ________
a. 60 Months b. 84 Months c. 48 Months d. 72 Months e.None of the above
3 What is the margin to be stipulated towards land cost under Home Loan if land is
purchased and then house constructed?
a. 25% b. 30% c. 50% d. 40% e. None of the above
4 What is the exit age stipulated for pensioners under V-Cash?
a. 72 years b. 65 years c. 75 years d. 70 years e. None of the above
5 What is the margin to be stipulated for an Education loan ( IBA scheme) of Rs.4.00
lakhs?
6 What is the maximum quantum of finance for studies abroad under Education Loan (IBA
scheme) to be considered under priority sector category?
a. 20 lakhs b.30 lakhs c. 10 lakhs d. 15 lakhs e. None of the above
7 What is the maximum age limit for salaried class under V-Wheels?
a. 60 years who undertake to draw pension through our bank.

b. In case of non-pensioners and those who do not want to draw pension
Through our bank, the account shall be closed before the retirement.
c. 70 years
d. (a) And (b) are correct.
8 What is the margin for purchase of old vehicle under V-Wheels?
9 What is the maximum repayment period available under V-Wheel ?
a. 60 months b.48 months c. 84 months d. 72 months e.None of the above
10 What security is to be obtained for a V-Rent loan of Rs.1.00 lakh?
a. EMDTD with first/ pari-passu charge on the property whose rent is charged to
the loan.
b. EMDTD with first/ pari-passu charge on any property.
c. Nil
d. (a) and (b) above.
11 A Customer‘s requirement for purchase of Refrigerator, Air conditioner, heater,

Sound system, Television for personal use can be met through which retail loan
scheme?
a. V-Equip b. V-Restaurant c. V-Professional d. V-Cash

12 What is the maximum quantum of loan that can be given under V-Vyapar:
a. Rs.2.00 cr b. Rs.3.00 cr c. Rs.1.00 cr d. Rs.5.00 cr e.None of the above
13 Maximum amount of loan that can be sanctioned under V-Cash for salaried and
Pensioners is ______ & ______ respectively.
a. 3 lakhs and 1 lakhs

b. 2 lakhs and 1 lakhs
c. 6 lakhs and 2 lakhs
d. 2 lakhs and 1 lakhs
e. 5 lakhs and 2 lakhs
14 V-Mortgage can be sanctioned for a maximum period of _______ months.
a. 84 months b.120 months c.60 months e.72 months

e.None of the above
15 What is the maximum quantum of loan under V- Restaurant?
a. 1 crore b. 2 crore c.3 crore d. 5 crore e.None of the above
16 What is the maximum ceiling for Working Capital under V- Restaurant?
a. 25 lakhs b.20 lakhs c.50 lakhs d.1 crore e.None of the above
17 What is the maximum quantum of loan under V- Vehicle?
a. 1 cr b.2 cr c.3 cr d.5 cr e. None of the above
18 What is the maximum repayment period available under SRTO?
a. 48 months b.60 months c.84 months d.72 months e.None of the above
19 Margin specified under SRTO for new vehicle is _____.
a. 20% on cost of the vehicle including Body building charges, insurance and Road
Tax
b. 10% on cost of the vehicle including Body building charges, insurance and Road
Tax
c. 25% on cost of the vehicle including Body building charges, insurance and Road
Tax
d. 15% on cost of the vehicle including Body building charges, insurance and Road
Tax
20 What is the exit age limit for salaried class___ under V-Mortgage?
a. 65 years b.60 years c.62 years d.75 years e.None of the above
21 What is rate of switch over fee payable under Home loan for switching over from
existing rate to current card rate?
a. 1.00% of the outstanding liability+ as un availed portion of the loan on the date
of switch over)
b. 1.00% of the outstanding liability(+applicable Service Tax) as on the date of
switch over
c. 0.50% of the outstanding liability(+applicable Service Tax) as on the date of
switch over
d. 1.25% of the outstanding liability(+applicable Service Tax) as on the date of
switch over
22 To obtain guarantee cover for housing loan provided to low income group customer
under CRGFT scheme, carpet area of the house financed should be:
a. Up to 450 sq ft b.Up to 430 sq ft c. Up to 425 sq ft d.Up to 400 sq ft

e.None of the above.
23 To be eligible for loan under V-Doctor scheme a Qualified Registered Medical

Practitioners should have minimum of ____ year experience.
a. 5 b. 4 c.3 d.2 e.None of the above
24 What is the maximum quantum of loan under V- Doctor scheme?
a. 1 cr b. 5 cr c.3 cr d.2 cr e.None of the above
25 A Payroll customer having salary mandate could be sanctioned V-Cash if minimum

____ month salary is credited in the a/c prior to the loan.
a. 6 month b.3 month c.1 month d. 2 month e.None of the above
26 When a V-Cash loan could be renewed by the customer?
a. 12 months from disbursement of loan if repayment is satisfactory

b. Any point of time
c. On completion of satisfactory repayment of 24 months
d. After one year from the date of sanction
27 Maximum repayment period permitted under V-Home loan is _____
a. 20 years b. 30 years c. 25 years d. 15 years e.None of the above
28 ___ month average net salary/pension could be sanctioned under V-Cash loan for
salaried class/pensioner.
a. 12 months b. 18 months c.24 months d.15 months e.None of the above
29 What is the exit age for non-salaried class under V-Mortgage scheme?
a. 60 years b.65 years c. 75 years d. 70 years e.None of the above
30 To be eligible for V-Mortgage loan the minimum annual gross income of the
customer should be _______.
a. 3 lakh b. 5 lakh c. 6 lakh d. 4 lakh e. None of the above
31 V –Mortgage loan can be sanctioned as :
a. Secured Term loan and working capital both

b. Secured Term loan only c. Working capital only
c. Non Fund based facility only d. None of the above
32 What is the minimum and maximum amount that can be sanctioned under V-
Mortgage loan?
a. Rs.5 lakh and 2 cr b. Rs.5 lakh and 3 cr c. Rs.5 lakh and 5 cr

b. Rs.5 lakh and 1 cr e. None of the above
33 Maximum repayment period for Term loan under V-Vyapar loan is ___
a. 60 months b. 72 months c. 120 months d. 84 months

e.None of the above
34 A Branch Head in Scale I and Scale II can sanction V-Home loan up to:
a. Rs.5 lakhs and Rs.15 lakhs b. Rs.10 lakhs and Rs.15 lakhs
c.Rs.5 lakhs and Rs.10 lakhs d. Rs.10 lakhs and Rs.20 lakhs
e.None of the above
35 Maximum loan amount under MSE Vijay is _________
a. Rs.50 lakhs b. Rs.25 lakhs c.Rs.100 lakhs d. Rs.200 lakhs

e.None of the above
36 Collateral Security for a loan under MSE Vijay ___
a. Upto 10 lakh no collateral security.

b. No collateral security and no 3rd party guarantee is required
c. No collateral security only 3rd party guarantee is required
d. Collateral security equal to loan amount is required
37 What is the maximum quantum of loan under Vijaya Kisan Home Loan?
a. Rs.5 lakh b. Rs.25 lakh c. Rs.15 lakh d. Rs.20 lakh

e..None of the above
38 What is the exit age fixed under Vijaya Kisan Home Loan scheme?
a. 75 years b.65 years c.60 years d.70 years e. None of the above
39 Which statement is correct regarding guarantee under V-Cash loan to a pensioner:
a. Spouse guarantee is mandatory.

b. Wherever loans are guaranteed by the spouse, no further guarantee of relative
/ dependent is required.
c. In case guarantee of spouse is not available, dependent‘s guarantee is to
be taken mandatorily.
d. (a), (b),and (c) above are correct.
40 Under IBA Model Education Loan Scheme a Branch Head of Scale II can sanction
unsecured loan of Rs._____
a. Rs.5.00 lakhs b. Rs.7.50 lakhs c. Rs.4.00 lakhs d.Rs.3.00 lakhs

41 Housing Loan cannot be given for :
a. Purchase/ Repairs/Renovation of House or flat

b. purchase of land only
c. Farm house d. (b) and (c) are correct e. None of the above
42 Repayment of principal loan component under V-Partner scheme shall be in:
a. monthly/quarterly installment
b. quarterly/half yearly installment
c. annual installment
d. single bullet payment at the end of the tenor
43 The quantum under V-Partner scheme per applicant cannot exceed :
a. 1 cr b. 2 cr c.5 cr d. 3 cr e. None of the above
44 Which statement is correct regarding guarantee under V-Cash loan to a salaried

person:
a. Spouse guarantee is mandatory.
b. Spouse guarantee is waived.
c. third party guarantee acceptable to the Bank is mandatory.
d. (b) and (c) are correct.
e. None of these.
45 Existing entities having satisfactory operating history of minimum___ months can

avail credit facility under V-SOD, if they were dealing with other banks.
a. 6 b.12 c. 24 d. 18 e. None of the above
46 Current ratio stipulated for sanctioning loan under V-SOD is:
a. 1.33:1 b. 1.20:1 c. 1.10:1 d. 1.00:1 e. None of the above
47 Which is the loan scheme introduced by our bank exclusively for Senior citizens having
own house:
a. V-Rent b.V-Reverse Mortgage c.V-Mortgage d. V-Cash e. V-Samman
48 What is the tenor of V Reverse Mortgage Scheme?
a. 1 to 3 years b. b. 2 to 5 years c. c. 5 to 10 years

d. 7 to 15 years e. None of the above
49 What is the minimum & maximum amount that can be given under V Reverse
Mortgage Loan:
a. Min. 2 lakh & Max 100 lakh b. Min. 1 lakh & Max 100 lakh
c. Min. 5 lakh & Max 200 lakh d. Min. 5 lakh & Max 100 lakh
e.None of the above
50 Which one of the following is not true in the context of V-Reverse Mortgage?
a. Minimum tenor of the loan is 10 years and maximum is 15 years.

b. The tenor of the loan can be reduced to 5 years by Regional Head.
c. Prepayment charges are applicable in case of takeover by other banks.
d. The loan will be liable for foreclosure if the borrower is not stayed in the house
for a continuous period of one year.
51 _____% margin is to be maintained on the appraised value of jewels in case of Jewel

Loan Cash Credit/Over draft(CC-605).
a. 30% of the value of gold per gram rate adviced daily by HO

b. 40% of the value of gold per gram rate adviced daily by HO
c. 20% of the value of gold per gram rate adviced daily by HO
d. 25% of the value of gold per gram rate adviced daily by HO
52 The limit under Jewel Loan Cash Credit/Over draft is sanctioned for a period of
________ year and to be reviewed/renewed______.
a. 3 year & annually b. 1 year & annually c. 2 year & annually

c.0 year & annually. D. None of the above
53 Quantum of loan that can be sanctioned under V-Professional is
a. 85% of the project or 10 lakhs whichever is less

b. 90% of the project cost or 15 lakhs whichever is less
c. 80% of the cost or 15 lakhs whichever is less in case of vehicle
d. (b) & (c) are correct
54 Loan for a 4-wheeler under V-Wheels , which of the following is correct:
a. Minimum Gross Annual Income should be Rs.4.00 lakh.

b. Minimum Gross Annual Income of Rs.4.00 lakh is waived.
c. Minimum net take home salary/Income should be 30%.
55 DSCR of 1.5 is insisted for Term Loans under V-Professionals if the loan amount is
more than
a. 2 lakh b. 5 lakh c. 10 lakh d. 3 lakh e. None of the above
56 For availing the facility for Interest subsidy under Education Loan(IBA Model), the
income ceiling is fixed as _____
a. Rs.5.00 lakhs p.a. b. Rs.4.50 lakhs p.a. c. Rs.3.00 lakhs p.a.

d.Rs.4.00 lakhs p.a. e. None of the above
57 To be eligible for interest subsidy, the Educational loan amount should not exceed
Rs._____ lakhs for studies in India.
a. 10 lakh b.15 lakh c. 7.5 lakh d. 5.0 lakh e. None of the above
58 Margin required for education loan(IBA Model) above 4 lakhs for study in India is:
a. Nil b. 5% c. 10% d. 15% e. None of the above
59 Margin specified for loan up to 10 lakh under MSE Vijay is ______
a. Nil b. 5% c. 10% d. 15% e. None of the above
60 Maximum repayment period available under MSE Vijay is ____ months.
a. 60 months b. 72 months c. 84 months d. 120 months e.None of the above
61 What is the minimum amount that could be sanctioned under V-Rent :
a. 4.00 lakhs b. 1.00 lakhs c. 3.00 lakhs d. 5.00 lakhs e.None of the above
62 Housing loan for purchase of old house/flat of more than 30 year and up to 40 years
old can be considered with whose permission:
a. General Manager b. Regional Head c.Executive Director d. Cannot be given

e.None of the above
63 For Loan under V-Wheels ,which of the following is correct:
a. 3rd party guarantee is not mandatory for below 10 lakh loan.

b. 3rd party Guarantee is mandatory for 10 lakh and above loan.
c. 3rd party guarantee of local resident is mandatory for NRI borrower.
d. (a) , (b) and (c) are correct.
64 Maximum cap for working capital limit under V-Doctor is Rs.20 lakhs, however General
Manager can permit the same up to ____ lakhs.
a. Rs.30.00 lakhs b. Rs.40.00 lakhs c. Rs.50.00 lakhs d. Rs.75.00 lakhs

65 Maximum cap for working capital limit under V-Restaurant is Rs.20 lakhs, however
Regional Manager can permit the same up to ____ lakh.
a. Rs.30.00 lakh b. Rs.40.00 lakh c. Rs.50.00 lakh

d. Rs.75.00 lakh e. None of the above
66 Interest rate under V-Wheels for 4 wheelers is ____
a. BR+0.50% b. BR+0.40% c. BR+0.25% d. BR+1.00%

67 Interest rate under V-Home Loan for 90 lakh loan is __ floating.
a. BR+0.50% b. BR+0.10% c. BR+0.25% d. BR+0.05%

e.None of the above
68 Net take home salary / income for V-Home loan should be:
a. Annual income Up to Rs.10 Lakh—30%

b. Annual income above Rs.10 lakh up to Rs.50 Lakh—20%
c. Annual income above Rs.50 Lakh—10%
d. (a) , (b) and (c) are correct.
69 How much interest concession could be provided for Retail Loans given to SC/ST
customers under Priority/Non Priority category up to 5.00 lakhs:
a. 0.50% b. 1.00% c. 1.50% d. 1.25% e. None of the above
70 The maximum amount of loan that can be sanctioned under V-Equip to Non-salaried
class is:
a. Rs.2 lakhs b. Rs.3 lakhs c. Rs.2.5 lakhs d.Rs.5 lakhs e.None of the above
71 The maximum amount of loan that can be sanctioned under V-Equip to Pensioner
drawing pension through our Bank is:
a. Rs.2 lakhs b. Rs. 3 lakhs c. Rs. 2.5 lakhs d. Rs. 1.5 lakhs e.None of the above
72 Maximum loan that can be sanctioned under V-Solar lighting is:
a. 50000 b. 25000 c. 50000 d. 40000 e. None of the above
73 Maximum repayment for V-Solar is ___ month and Holiday period is __month:
a. 48 & 3 b. 60 & 6 c. 60 & 3 d. 48 & 6 e. None of the above
74 What is the amount that can be given under V-Mortgage and V-Rent by scale I, II and
III branch Heads?
a. Rs.5 lakh,Rs.10 lakh,Rs.20 lakh

b. Rs.5 lakh,Rs.20 lakh,Rs.40 lakh
c. No loan can be sanctioned by scale I, II, III Branch Heads.
d. Rs.10 lakh,Rs.20 lakh,Rs.25 lakh
75 Which of the following is correct regarding V-Home Loan:
a. Loan component for non moveable fixed assets/fittings is limited to 20% of the
construction/ acquisition cost or Rs.10.00 lakh, whichever is less.
b. Loan component for non moveable fixed assets/fittings is limited to 10% of the
construction/ acquisition cost or Rs.5.00 lakh, whichever is less.
c. For Old Houses beyond 30 years where sanctioned plan is not available, it
need not be insisted but confirmation from the local competent Authorities
should be obtained.
d. (a) and (c) are correct.
76 Maximum moratorium period permitted under V-Doctor scheme is ___ months
a. 6 months b. 12 months c. 18 months d. 3 months e. None of the above
77 Maximum quantum of loan available under V-Cashew is ___
a. Rs.500 lakhs b. Rs.300 lakhs c. Rs.100 lakhs d. Rs.200 lakhs

78 Under V-Cashew scheme margin stipulated for a loan of Rs.10 lakhs is:
79 Rate of interest to be charged for a loan to pensioner under V-Cash is:
a. BR+2.50% b.BR+4.05% c. BR+3.05% d. BR+3.00%

80 Maximum repayment period permitted under V-Cashew scheme is ___

81 Maximum amount that can be sanctioned under V-Mangala scheme is ___
a. Rs.3.00 lakh b. Rs.1.00 lakh c. Rs.2.00 lakh

b. Rs 3.00 lakh or 10% of Home Loan sanctioned whichever is lower
c. None of the above
82 Interest rate to be charged for a loan under V-Mangala is _____
a. BR+2.25 b. BR+2.45 c. BR+3.25 d. BR+3.75

83 Maximum repayment period permitted under V-Mangala is _____
a. 5 years b. 4 years c. 6 years d. 3 years

84 Security to be obtained under V-Mangala is _______
a. Nil, as it is a clean loan

b. Continuing security of housing loan property mortgaged to bank.
c. Assets purchased out of loan amount
d. (b) and (c) both e. None of the above
85 Repayment Period for loan under JL TL Agri (Non Subvention) loan(JL-708) is:

b. None of the above
86 Which of the following is correct in respect of V-Mortgage loan:
a. Loans upto 1 crore can be sanctioned where collateral security offered is vacant site
or plot allotted by Statutory Development Bodies like BDA, MUDA, DDA, etc.
b. The plot should be in the name of first time allottee.
c. For loan amount above Rs.1 crore, land with building should only be taken as
security.
d. (a), (b) and (c) are correct.
87 Which of the following is correct in respect of V-Vyapar:
a. Loan extended to the traders , manufacturers and MSME units.

b. Non fund based limit enhanced to 50% of the sanctioned limit.
c. Sales Tax Return to be obtained every year.
d. (a),(b) and (c) are correct.
88 What is correct with respect to loan under Vijaya Top Up Loan scheme:
a. Maximun qhantum of loan can be 75% of the amount repaid in the existing Housing
Loan Account.
b. Borrower is regular in repayment for a period of at least one year, without any
default history.
c. All individuals who have availed housing loan of Minimum 10 Lakh from our bank
can avail.
d. (a), (b) and (c) are correct.
89 Minimum and Maximum amount cap under Vijaya Top Up Loan scheme is:
a. 1 lakh and 10 lakh b. 2 lakh and 20 lakh c. 1 lakh and 20 lakh

d. 2 lakh and 20 lak e. None of the above.
90 Maximum repayment period under Vijaya Top Up Loan scheme :

b. None of the above
91 What is the minimum period after which V-Home loan can be given to same
Family for 2nd Unit:
a. 1 year b. 2 year c. 3 year d. 4 year e.None of the above.
92 Minimum and maximum loan that can be sanctioned under V-Home loan:
a. 1 lakh and No Limit b. 2 lakh and 1 crore c. 1 lakh and 3 crore

d. No Limit on Minimum and Maximum. e. None of the above.
93 What should be the maximum Loan component for financing of purchase cost of site ,
out of total quantum of loan:
a. shall not be more than 30% of total loan quantum.

b. shall not be more than 40% of total loan quantum.
c. shall not be more than 50% of total loan quantum.
d. shall not be more than 20% of total loan quantum.
94 2nd valuation report to be obtained if loan amount is Rs._____and above

Under V-Home loan.
a. 25 lakhs b. 50 lakhs c. 75 lakhs d. 100 lakhs e.None of the above.
95 What is the margin under V-Home loan of 1 cr. for construction of a house:
a. 20% b. 25% c. 30% d. 40% e. None of the above.

96 Which of the following is correct regarding V-Home loan:
a. Margin to be infused on prorata basis.
b. For borrowers having annual income upto Rs.12 lakh, 25%margin to be infused
upfront at the time of drawal of 1st tranche.
c. For borrowers having annual income of above Rs.12 lakh, margin to be infused on
prorata basis.
97 Holiday period under V-Home loan is:

a. 3 month for Purchse of ready built house/flat.
b. 18 month Construction of house/purchase of flat under Construction except
few exceptions.
c. 12 month from 1st release in case of expansion and 6 months from 1st
release in case of repair/ renovation.
d. Repayment starts next month onwards in the case of take over .
e. All of the above are correct.
98 Which of the following is correct regarding to V-Home loan:
a. Guarantee from spouse is to be insisted.

b. In case spouse is not alive or legally separated(divorced) ,no other personal
guarantee is required.
c. If loan is availed by one of the parents jointly with major children guarantee of the
spouse need not be insisted.
d. If the guarantee of the spouse is not available for any other valid reason loan can be
sanctioned with Regional Head permission.
99 Which of the following is correct as per Education loan IBA Scheme :
a. Caution deposit, Building fund/refundable deposit supported by Institution

bills/receipts, can be considered subject to the amount Does not exceed 10%
of the total tuition fees for entire course.
b. Purchase of books/equipments/instruments/uniforms/computer/study tour/
project work, thesis etc. can be considered, subject to it does not exceed
20% of total tuition fees for the entire course.
c. For loan upto Rs.7.50 lakh repayment period is up to 10 years.
d. For loan above Rs.7.50 lakh repayment period is up to 15 years.
100 Which of the following is correct as per Education loan Management quota:
a. Tangible collateral security, the extent of 150% of loan amount.

b. Maximum 10 lakh can be sanctioned under the scheme and Maximum
repayment period is 10 years.
c. Not eligible for claiming central interest subsidy under the scheme.
d. Minimum 60% marks in equivalent grade in the qualifying examination.
101 Which of the following is correct regarding Padho Pardesh scheme:
a. Scheme to provide interest subsidy to the students of minority community under

Education Loan( IBA scheme).
b. For Educational Loans for Overseas Studies for Masters and PHD courses.
c. Total income from all sources of the student/parents shall not exceed Rs.6.00
lakh per annum.
d. (a) , (b) , and (c) are correct.
102 What is the margin for purchase of equipment/machinery/vehicles and on acquisition of

premise or expansion/renovation/modernization of existing premise under V-Doctor:
a. 25% and 35% b. 35% and 25% c. 15% and 30% d. 20% and 40%
e.None of the above
103 Which of the following is correct regarding V Dhanya-Rice, Flour, Dal Mill scheme:
a. 25% margin for purchase of equipment/ machinery/ vehicles etc., 35% margin
for acquisition of premise or expansion/renovation/ modernization of existing
premise and 25% margin for stock in trade.
b. Maximum Repayment period is 84 month & holiday period is 12 month.
c. Collateral security equal to loan amount if not covered under CGTMSE.
d. Maximum Loan Amount is Rs.5 cr , Rs.3 cr and Rs.2 cr respectively.
104 Which of the following is correct regarding Education Loan for Premier Central
Institutions and Indian School of Business(ISB):
a. Maximum amount of Finance is Rs.20 lakh.
b. 5% Margin for ISB, For Premier Central Institutions 0% margin up to Rs.4 lakh
and 15% margin for above Rs.4 lakh loan.
c. No collateral security for ISB, For Premier Central Institutions no collateral
security up to Rs.10lakh and 100% collateral security for above Rs.10 lakh loan.
d. All of the above are correct.
105 Which of the following is correct regarding CGTMSE:

a. Maximum Loan / Working Capital facility guaranteed is Rs. 100 Lakh per eligible
borrower.
b. Credit without any collateral security and third party guarantee.
c. The activities under retail trade, educational institutions, training institutions and
SHG/JLG are excluded.
d. Loan with Interest rate more than 4% over the Base Rate are not eligible.
ANSWERS: RETAIL LENDING SCHEMES
1 D 11 A 21 A 31 B 41 D 51 D 61 B 71 D 81 D 91 A 101 D
2 A 12 D 22 B 32 C 42 A 52 B 62 B 72 B 82 B 92 A 102 A
3 B 13 C 23 C 33 C 43 C 53 D 63 D 73 C 83 A 93 C 103 E
4 A 14 B 24 B 34 D 44 D 54 D 64 C 74 C 84 B 94 D 104 D
5 B 15 C 25 C 35 C 45 B 55 A 65 A 75 D 85 A 95 B 105 E
6 A 16 B 26 A 36 B 46 D 56 B 66 B 76 C 86 D 96 D
7 C 17 C 27 B 37 C 47 B 57 A 67 D 77 A 87 D 97 E
8 B 18 C 28 B 38 A 48 D 58 B 68 D 78 B 88 D 98 E
9 C 19 A 29 C 39 D 49 A 59 D 69 B 79 C 89 A 99 E
10 C 20 A 30 A 40 B 50 A 60 C 70 A 80 B 90 C 100 E
PRIORITY SECTOR, FINANCIAL INCLUSION, SUBSIDY SCHEMES & CGTMSE
1. For domestic banks and foreign banks with 20 or more branches in India, which of the
following target is not mandatory
a). Priority Sector Target- 40% of ANBC or credit equivalent amount of off balance
sheet exposure whichever is higher
b). Agriculture Loans - 18% of ANBC or credit equivalent amount of off balance
c). Weaker section loans - 10% of ANBC or credit equivalent amount of off balance
d). Micro and Small Enterprises - 18% of ANBC or credit equivalent amount of off
balance sheet exposure whichever is higher
e). None of the above
2. Target for direct agricultural advances as per RBI norms for domestic commercial
banks is:
a). 40% of ANBC or credit equivalent amount of off balance sheet exposure
whichever is higher
b). 13.5% of ANBC or credit equivalent amount of off balance sheet exposure
whichever is higher
c). 18% of ANBC or credit equivalent amount of off balance sheet exposure
whichever is higher
d). None of above
e). All of the above
3. Which of the following statement regarding indirect agriculture advances is not

correct?
a). Maximum amount of such advances can be 4.5% of ANBC
b). Amount above 4.5% of ANBC is part of Priority Sector
c). Amount above 4.5% of ANBC is not part of Agriculture lending
d). Amount above 4.5% of ANBC is neither part of priority sector nor of agriculture
loans.
4. Which of the following statement regarding our bank‘s achievement as on 31.03.2014

is incorrect?
a). Priority sector - 35.55% of ANBC
b). Agriculture advances - 13.29% of ANBC
c). Weaker section - 9.92% of ANBC
d). All of the above
5. Which of the following statement regarding our bank‘s achievement as on 31.12.2014

is incorrect?
a). Priority sector – 32.14% of ANBC
b). Agriculture advances – 12.78% of ANBC

c). All of the above
d). None of the above
6. Our bank has setup Vijaya Krishi Vikas Kendras (VKVKs) during FY 2013-14 in Sangli
(Pune Region) and Bagalkot (Hubli Region) to focus exclusively on high value/hi-tech
agricultural projects through a cluster of branches
a). True b). False
7. Priority sector guidelines have been amended w.e.f. Jul 20, 2012, on the
recommendations of:
a). C S Murthy Committee b). Y H Malegam Committee
c). M V Nair Committee d). Deepak Mohanty Committee e). S.S. Johl Committee
8. Interest concession of 1% is available to SC/ST beneficiaries for all types of loans

under Priority Sector and Retail Loans under Non-Priority sector upto Rs. _______.
a). 2 lakh b). 5 lakh c). 10 lakh d). 15 lakh e). No limit
9. In order to enhance the coverage of GCC Scheme to ensure greater credit linkage for
all productive activities within the overall Priority sector guidelines and to capture all
credit extended by banks to individuals for non-farm entrepreneurial activities, the
GCC guidelines have been revised by the Reserve Bank India. The quantum of Limit
under revised Vijaya General Credit Card is:
a). 25000/- b) 50000/- c). 100000/- d). No ceiling e). None of the above
10. Education loan for studies in India / abroad can be classified under priority sector with
limit of Rs.____ & Rs._______
a). Rs.20 lakhs & Rs.10 lakhs b). Rs.10 lakhs & Rs.20 lakhs
c). Rs.10 lakhs & Rs.25 lakhs d). Rs.25 lakhs & Rs.10 lakhs e). None of these
11. Bank Loans to MSE engaged in providing or rendering of services will be eligible for
classification as direct finance to MSE sector under priority sector upto an aggregate
loan limit of Rs. _____ per borrower/limit, provided they satisfy the investment
criteria for equipment as defined under MSMED Act, 2006.
a). 2 crore b). 3 crore c). 5 crore d). 10 crore e). 15 crore
12. Loans to Corporates including Farmers‘ Producers Companies of individual farmers,

partnership firms, and cooperatives of the farmers directly engaged in agriculture and
allied activities upto an aggregate limit of Rs. _____ per borrower is falling under
direct agriculture credit.
13. Loans upto Rs. ______ per borrower to dealers/sellers of fertilisers, pesticides, seeds,
cattle feeds, poultry feeds, agricultural implements and other inputs will be classified
under Indirect Agriculture advances.
14. All housing loans to individual‘s upto Rs. _____ in Metro centres (having population
above 10 lakh) will be classified under Priority sector.
a). 15 lakhs b). 20 lakhs c). 25 lakhs d). 30 lakhs e). 50 lakhs
15. All housing loans to individual‘s upto Rs. _____ in other centres (other than metro) will
be classified under Priority sector.
16. Loans for repairs to the damaged dwelling units upto Rs. ____ lakh in rural and semi-
urban areas and up to Rs. _____ lakh in urban and metro areas will be classified under
priority sector.
a). 2, 5 b). 2, 10 c). 5, 10 d). 4, 10
17. Loans to individual women beneficiaries‘ upto Rs. 50000/- per borrower are classified
under Weaker Section.
a). True
b). False
18. Loans to farmers upto Rs. ____ against pledge/hypothecation of agriculture produce
(including warehouse receipts) for a period not exceeding 12 months, is classified
under Direct Agriculture.
a). 5 lakh b). 10 lakh c). 25 lakh d). 50 lakh e). 100 lakh
19. Financing farmers for construction of Farm House and Repairs/ renovation of existing
Farm House in their Agricultural land will be classified under
a). Priority-Direct Agri. b). Priority-MSE
c). Priority-Housing Loan d). Non Priority e). Priority-others
20. Under Scheme for Financing Farmers for Construction of Farm House, what is the
maximum loan amount sanctioned at Branch Level for the purpose of construction of a
new Farm House?
21. Govt of India has launched National Urban Livelihood Mission (NULM) by restructuring
a). Swarna Jayanti Shahari Rozgar Yojana (SJSRY)
b). Swarna Jayanti Grameen Swarozgar Yojana (SGSY)
c). Both d). None of the above
22. Which community has been notified as minority community by GOI recently?
a). Sikhs b).Muslims c). Buddhists d). Zoroastrians e). Jain

23. Which of the following eligibility guideline for Life insurance cover of Rs. 30000/- under
Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme is not correct?
a). Person opening Bank account for the first time, with RuPay Card during the
period from 15- 08-14 to 26-01-15, or any additional period as may be extended
further by Government of India.
b). The person should normally be head of the family or an earning member of the
family and should be in the age group of 18 years to 59 years (i.e. person should be
at least 18 years old, and should not have turned 60). In case the head of family is
60 years or more of age, the second earning person of the family in the above
mentioned age group will be covered, subject to eligibility.
c). Person must have a RuPay Card and Bio – Metric Card linked to bank account or
in process of being linked to bank account if not already there.
d). The account can be any bank account including a small account.
24. Which of the following eligibility guideline for Life insurance cover of Rs. 30000/- under
Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme is not correct?
a). For the coverage to be effective, RuPay Card should be valid and in force at the
time of death of the member.
b). Only one person in the family will be covered in the Bima Scheme and in case of
the person having multiple cards / accounts the benefit will be allowed only under
one card i.e. one person per family will get a single cover of Rs.30,000/-, subject to
the eligibility conditions.
c). The life cover of Rs 30,000/- under the scheme will be initially for a period of 5
years, i.e. till the close of financial year 2019-20. Thereafter, the scheme will be
reviewed and terms and condition of its continuation, including the issue of future
payment of premium by the insured thereafter, would be suitably determined.
d). In case the PMJDY account is held jointly, then the first account holder i.e
primary account holder will be eligible for cover subject to the eligibility conditions.
25. Which of the following is the Ineligible category for Life insurance cover of Rs. 30000/-
under Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme?
a). Central Government and State Government employees (in service or retired)
and their families.
b). Employees (in service or retired) of Public Sector Undertakings, Public Sector
Banks, any entity owned by Central Government, any entity owned by a State
Government or any entity jointly owned by the Central Government and any State
Government, and their families.
c). Persons whose income is taxable under I.T. Act 1961 or are filing the yearly
Income Tax return or in whose case TDS is being deducted from the income, and
their families.
d). Persons who are included in the Aam Aadmi Bima Yojana covering 48
occupations (annexure - A) defined under the Scheme, and their families.
26. Govt. has recently launched an IBA programme under which every bank branch in
collaboration with Child & Youth Finance International (CYFI) has to adopt a school in
its vicinity to open accounts and impart financial education with an aim to transform
school students into future economic citizens?
a). True
b). False
27. Following statement is true or false;

Concession in rate of interest is available from our bank to the MSME borrowers rated
through M/s India Rating and Research Pvt. Ltd.
a). True
b). False
28. Insurance can be waived for priority sector loans if the amount of the loan is less than
Rs.___________.
a). 10000 b). 20000 c). 25000 d). 5000 e). No such stipulation
29. Which of the following is true in respect of Enterprises engaged in the manufacture or
production, processing or preservation of goods?
(i) A micro enterprise is an enterprise where investment in plant and machinery does
not exceed Rs. 25 lakh;
(ii) A small enterprise is an enterprise where the investment in plant and machinery is
more than Rs. 25 lakh but does not exceed Rs. 5 crore; and
(iii) A medium enterprise is an enterprise where the investment in plant and machinery
is more than Rs.5 crore but does not exceed Rs.10 crore
a). Only (i)
b). Only (ii)
c). Both (i) and (ii)
d). (i) , (ii) and (iii)
e). None of these
d
30. Which of the following is true in respect of Enterprises engaged in providing or
rendering of services and whose investment in equipment (original cost excluding land
and building and furniture, fittings and other items not directly related to the service
rendered or as may be notified under the MSMED Act, 2006 ?
(i) A micro enterprise is an enterprise where the investment in equipment does not
exceed Rs. 10 lakh;
(ii) A small enterprise is an enterprise where the investment in equipment is more
than Rs.10 lakh but does not exceed Rs. 2 crore; and
(iii) A medium enterprise is an enterprise where the investment in equipment is more
than Rs. 2 crore but does not exceed Rs. 5 crore.
a). Only (i) b). Only (ii) c). Both (i) and (ii) d). (i), (ii) and (iii)
e). None of these
31. You have sanctioned loan of Rs. 3 crore to a restaurant with investment of Rs. 2 crore
in equipment under V-Restaurant scheme. Which of the following is applicable
classification?
a). Priority - small service enterprise b). Priority - Micro service enterprise
c). Non Priority- Medium enterprises d). Non Priority- large enterprises
With reference to our revised VKC scheme, please answer the following questions
from 32 to 39.
32. You have sanctioned a crop loan to the farmer with irrigated land holding of 2.5 acres.
The classification will be
a). Agriculture marginal farmer b). Agriculture small farmer
c). Agriculture labour d). Agriculture large farmer e). None of the above
33. Scale of Finance for Crop Loan scheme is fixed by which of the following:
a). SLBC - State Level Bankers Committee b). District Technical Committee
c). NABARD d). Lead Bank e). Bank concerned
34. Maximum _____ % of the limit assessed for crop production purposes can be
considered for the purpose of Post Harvest/repair and maintenance of farm
machinery/equipment/working capital for agricultural allied activities/house hold and
consumption needs of farmer/miscellaneous expenses/insurance premia towards crop
insurance, personal accident insurance scheme (PAIS), asset insurance, health
insurance.
a). 25 b). 40 c). 50 d). 75 e). 100
35. In case farmers use modern package of practices involving higher input cost and if
scale of finance may not be adequate to raise/maintain the crop, additional amount
upto ________ % of scale of finance, over and above the scale of finance may be
considered on merits of individual case, on the request of the party.
a). 25 b). 40 c). 50 d). 75 e). 100
36. Investment credit/term loan can also be given along with crop loan.
a). True b). False
37. Processing Charges are exempted for revised VKC upto a card limit of Rs. ________.
38. Which of the following is Not True in respect of Vijaya Kisan Card Scheme of our Bank?
a). Interest on Credit Balance shall be paid to the Farmers at SAVINGS BANK Rate.
b). The Card is valid for FIVE Years.
c). ATM enabled Kisan Debit Card can be issued to VKC customers.
d). Cheque books cannot be issued to the VKC borrowers
39. Which of the following is true in relation to Interest Subvention Scheme for Short term
crop loans up to Rs 3 lakh :
a) 2% interest subvention for Short term crop loans disbursed during 2013-14
b) 3% additional interest subvention for prompt payment.
c) Under Vijaya Kisan Card (VKC) / Vijaya Planters Card Scheme (VPC), loan
components relating to crop production expenses and post-harvest expenses i.e
amount upto 10% of crop production limit, are only eligible for Interest Subvention.
d) All of the above
40. Our bank has launched ____________________ scheme for the purpose of an instant
credit for farming community to meet emergency requirements for agriculture and
domestic purposes to tide over temporary difficulties with maximum ceiling of loan of
Rs. 50,000/-.
a). Vijaya Kisan Card Scheme b). Vijaya Kisan Tatkal Scheme
c). Vijaya Krishi Mithra Scheme d). Vijaya Rhuna Mukthi Yojna e). None of the
above
41. Our bank has launched ____________________ scheme as hassle free loan product
under single term loan head, meeting multiple investment / development credit
requirements of the farmers such as Farm Mechanization, Land Development, Minor
irrigation Allied activities and other Agri-related activities.
a). Vijaya Kisan Card Scheme b). Vijaya Kisan Tatkal Scheme
c). Vijaya Krishi Mithra Scheme d). Vijaya Rhuna Mukthi Yojna
42. Maximum quantum of loan under Vijaya Krishi Mithra can be given upto Rs. ______.
43. Minimum acreage (irrigated) of agricultural land is required for tractor financing:
a). 4 b). 8 c). 16 d). No such ceiling e). None of the above
44. Upto Rs._____ of agriculture advances no collateral security to be obtained
a). Rs. 1,00,000/ b). Rs. 50,000/- c). Rs. 75,000/- d). Rs. 2,00,000/-
e). Rs. 3,00,000/-
45. Income criteria to be eligible for DRI loan is less than Rs.________ p.a for rural areas
and Rs.___________p.a. for semi-urban/urban/metro areas
a). 15000, 25000 b). 16000, 24000 c). 18000, 24000 d). None
e). 7500, 10000
46. The maximum amount that can be sanctioned under DRI for the purpose other than
housing is Rs._____
a). 10000 b). 15000 c). 20000 d). 7500 e). 25000
47. The maximum amount that can be sanctioned under DRI for housing purpose for
SCs/STs is Rs._____
a). 10000 b). 15000 c). 20000 d). 7500 e). 25000
48. Application received for priority sector advances for Rs.25000 and below to be disposed
of within
a). 15 days b). 10 days c). 7 days d). 30 days e). None of these
a
49. Fresh/renewal credit proposals received for MSE advances for amount above Rs.25000
upto Rs. 5 lakh to be disposed of within
a). 2 weeks b). 4 weeks c). 6 weeks d). 8 weeks e). None of these
d
50. Whether Joint account can be opened in Pradhan Mantri Jan-Dhan Yojana?
a). Yes
b). No
51. Can a minor (below 18 years of age) can open an account under PMJDY?
a). A minor of above the age of 10 years can open his / her Savings bank account in
any bank.
b). Not permitted
52. Whether illiterate customers can be issued RuPay Card?

a). Yes
b). No
53. Guarantee cover under CGTMSE is available for credit facilities up to Rs.____ lakhs
without any collateral security and or third party guarantee
a
54. Maximum extent of Guarantee where credit facility is extended to Micro Enterprises is
a). 85% of amount in default for credit facility upto Rs. 5 Lakh
b). 75% of amount in default for facility above Rs. 5 Lakh and upto Rs. 50 lakhs
c). 50% of amount in default above Rs. 50 Lakh subject to a maximum of Rs. 50
lakhs
d). All of above e). None of the above

d
55. Maximum extent of Guarantee where credit facility is extended to Women
entrepreneurs/ Units located in North East Region (incl. Sikkim) other than credit
facility upto Rs.5 lakh to micro enterprises is
a). 80% of the amount in default subject to a maximum of Rs.40 lakh for facility
upto Rs 50 Lakhs.
b). Rs.40 lakh plus 50% of amount in default above Rs.50 lakh subject to a
maximum of Rs. 50 lakh
c). Rs.40 lakh plus 75% of amount in default above Rs.50 lakh subject to a
maximum of Rs. 62.5 lakh
d). Both a & b
c
56. Maximum extent of Guarantee where credit facility is extended to all other category
(other than as mentioned above) of borrowers is
a). 75% of amount in default for facility upto Rs. 50 lakhs
b). Rs.37.50 lakh plus 50% of amount in default above Rs.50 lakh up to Rs. 100
lakh subject to a maximum of Rs. 50 lakh
c). Rs.37.50 lakh plus 75% of amount in default above Rs.62.5 lakh up to Rs. 100
lakh subject to a maximum of Rs. 50 lakh
d). Both a & b
57. "Third Party Guarantee" means any guarantee obtained by a Member Lending
Institution of CGTMSE in connection with the credit facility extended by it to a
borrower except from
a). Sole-Proprietor in case of Sole Proprietory concern
b). Partners in case of partnership / limited liability partnership
c). Karta & Coparceners in case of HUF
d). Promoter directors in case of private/ public limited companies
f
58. Lock in Period for invocation of guarantee under CGTMSE is the maximum time period
from the date of last disbursement of the loan to the borrower or the date of payment
of the guarantee fee, whichever is later. What is the extent of maximum time period
under lock in period?
a). 06 months. b). 18 months c). 24 months d). 36 months e). 60 months
a
59. For loans sanctioned before 01/01/2013, the lending institution may invoke the
guarantee in respect of credit facility within a maximum period of ……………………. from
the date of NPA, if NPA is after lock in period.
a). 12 months b). 18 months c). 24 months d). 36 months e). 60 months
b
60. For loans sanctioned after 01/01/2013, the lending institution may invoke the
guarantee in respect of credit facility within a maximum period of ……………………. from
the date of NPA, if NPA is after lock in period.
a). 12 months b). 18 months c). 24 months d). 36 months e). 60 monthsb
61. The Trust shall pay ………… per cent of the guaranteed amount on preferring of eligible
claim by the lending institution within 30 days
a). 75 b). 25 c). 50 d). 35 e). 80
b
62. Composite all-in Annual Guarantee Fee under CGTMSE for Women, Micro Enterprises
and units in North East Region (incl.Sikkim) for credit facilities upto Rs. 5 Lakh is as
under :
a). 0.65% b). 0.50 % c). 0.75% d). 0.85% e). 1.00%c
63. Composite all-in Annual Guarantee Fee under CGTMSE for Women, Micro Enterprises
and units in North East Region (incl.Sikkim) for credit facilities above Rs. 5 Lakh and
upto Rs. 100 Lakh is as under:
a). 0.65% b). 0.50 % c). 0.75% d). 0.85% e). 1.00%
d
64. Composite all-in Annual Guarantee Fee under CGTMSE for credit facilities to other than
as mentioned above upto Rs. 100 Lakh is as under:
a). 1.25% b). 1.00 % c). 0.75% d). 1.85% e). 0.85%b
65. Bank has granted …………………..% Concession in Annual Guarantee Fees for PMEGP
Borrowers availing loan upto Rs. 5 Lakhs :
a). 100 % b). 75% c). 25% d). 50% e). 10%
a
66. Bank has granted …………………..% Concession in Annual Guarantee Fees for PMEGP
Borrowers availing loan above Rs. 5 Lakhs :
a) 100 % b) 75% c) 25% d) 50% e). 10%d
67. Bank has granted ……………..% Concession in Annual Guarantee Fees over and above
the concessions offered to Women Entrepreneurs by CGTMSE
a) 100 % b) 75% c) 25% d) 50% e). 60%
cc
68. Which of the following is the implementing agency for PMEGP
a). National – KVIC Mumbai b). Rural – KVIC, State Boards & DIC
c). Urban - State District industries Centres
d). All the above e). None of the above
d
69. Which of the following eligible norms is incorrect for PMEGP?
a). Any individual above 18 years upto 55 years of age
b). There is no income ceiling for PMEGP
c). At least VIII standard pass for project cost above Rs.10 lakh for manufacturing
and above Rs.5 lakhs in business and service
d). PMEGP is meant only for new projects. Existing units under PMRY, REGP or any
other Govt. scheme not eligible.
e). Only one person from one family is eligible for setting up of projects under
PMEGPe
70. Margin (borrower‘s contribution) requirement under PMEGP is

a). 10% for general and 5% for special categories
b). 15% for general and 10% for special categories
c). 15% for general & 5% for special categories
d). 25% for general & 10% for special categories
e). None of thesea
71. Under PMEGP scheme, the maximum cost of the project/unit admissible under
manufacturing sector is
72. Under PMEGP scheme, the maximum cost of the project/unit admissible under
business/service sector is
73. Under PMEGP scheme, in case the bank‘s advance goes bad before the three year
period, due to reasons, beyond the control of the beneficiaries the margin money
(subsidy) will be adjusted by the bank to liquidate the loan liability of the borrower
either in part or full.
a). True
b). False
74. Self Help Group consisting 10 to 20 members can be financed under SGSY. However, in
difficult areas like deserts, hills and areas with scattered and sparse population and in
case of minor irrigation and disabled persons, this number may vary from:
a). 5 to 20
b). 5 to 10
c). Any number
e). 4 to 20
75. Refinance under Agricultural & Non Farm sector is given by:
a). IDBI b). SIDBI c). NABARD d). RBI e). CGTMSEccb
d
ANSWERS:
1 d 16 a 31 a 46 b 61 a
2 b 17 a 32 a 47 c 62 c
3 d 18 d 33 b 48 a 63 d
4 e 19 a 34 b 49 b 64 b
5 d 20 c 35 a 50 a 65 a
6 a 21 a 36 a 51 a 66 d
7 c 22 e 37 c 52 a 67 c
8 b 23 e 38 d 53 a 68 d
9 d 24 e 39 d 54 d 69 a
10 b 25 e 40 b 55 d 70 a
11 c 26 a 41 c 56 d 71 c
12 a 27 a 42 d 57 e 72 a
13 c 28 a 43 a 58 b 73 a
14 c 29 d 44 a 59 a 74 a
15 a 30 d 45 c 60 c 75 c
LENDING POLICY , DELEGATED POWERS , DIFFERENT TYPES OF SECURITIES ,

CREATION OF CHARGES AND OTHER LENDIG RELATED MATTERS
1 Which of the following is a fund based credit limit? D
a) Letter of Credit
b) Performance Guarantee
c) Financial Guarantee
d) Cash Credit
e) Deferred Payment Guarantee
2 Which of the following is an immovable asset? D
a) Machinery b. Furniture c. Stock d.Land e. Vehicle
3 Charge on immovable properties is known as_______ E

a) Pledge
b) Hypothecation
c) Lien
d) Assignment
e) Mortgage
4 EMDTD stands for _____________________ B
a) Equal Mortgage by deed of title deposits

b) Equitable Mortgage by Deposit of Title Deeds
c) Equitable Money by Deposit of Title Deeds
d) Equitable Mortgage by Deposit of Total Deeds
5 Charge on movable properties can be created by way of _____ E
a) Mortgage b)Pledge c) Hypothecation d) Both A & C (e) Both B & C
6. Charge on movable assets, where the possession of assets will be with the borrower C
is known as ____________
a) Mortgage b)Pledge c) Hypothecation d) Both A & C (e) Both B & C
B
7. Charge on movable assets, where the possession of assets will be with the lending
Bank is known as ____________
a) Mortgage
b) Pledge
c) Hypothecation
d) Both A & C
e) Both B & C
8. In case of V Wheels loan, the charge on vehicle is created by way of ________ C
a) Mortgage
b) Pledge
c) Hypothecation
d) Both A & C
e) Both B & C
9. In case of Jewel loan, the charge on ornaments is created by way of ___________ B
a) Mortgage b) Pledge c) Hypothecation d) Both A & C (e) Both B & C
10. In case of V Home Loan, the charge on the land & building is created by way of A
________
a) Mortgage
b) Pledge
c) Hypothecation
d) Both A & C
e) Both B & C
11. Most popular method in India is ‗Mortgage by Deposit of Titles‘ which is commonly A
known as ___________
a) Equitable Mortgage
b) English Mortgage
c) Simple Mortgage
d) Usufructuary Mortgage
e) Mortgage by Conditional Sale
D
12. In case of LTD, the charge on the deposits is created by way of __________
a) Mortgage
b) Pledge
c) Hypothecation
d) Lien
e) Assignment
13. In case of V Rent Scheme, the charge on the future rent receivables is created by E
way of _________
a) Mortgage
b) Pledge
c) Hypothecation
d) Lien
e) Assignment
14. When DOC 5 is obtained for the demand loans, the period of limitation is three years B
from:
a) Date of execution of document

b) Date of default
c) Date of sanction
d) Due date of each installment
e) Date of default of each instalment
15. Which of the following document is obtained in case of Jewel Loan? A
a) DOC 6 b)DOC 35 c) DOC 38 d) DOC 53 e) DOC 56
16. As per Bank‘s Lending Policy, out of total MSE advances ______ is the set target for C
MSE-Micro Units in percentage terms?
(a) 40% (b) 20% (c) 60% (d) 100% (e) No preset target
17. As per Prudential Exposure Norms, generally, the maximum exposure cap for single C
borrowers is ___________.
(a) 10% of capital funds
(b) 20% of capital funds
(c) 15% of capital funds
(d) 25% of capital funds
(e) 40% of capital funds
18. As per Prudential Exposure Norms, generally, the maximum cap for group exposure is E
___________.
(a) 10% of capital funds
(b) 20% of capital funds
(c) 15% of capital funds
(d) 25% of capital funds
(e) 40% of capital funds
19. As per Bank‘s Lending Policy, the maximum exposure cap for commercial loans to A
individual borrower is _____________ .
(a) Rs. 5.00 Crore (b) Rs.10.00 Crore (c) Rs.15.00 Crore (d) Rs.20.00 Crore
(e)Rs.25.00 Crore
20 As per Bank‘s Lending Policy, the maximum exposure cap for commercial loans to
sole trading concern and association of persons is _____________ .
(a) Rs. 5.00 Crore
(b) Rs.10.00 Crore
(c) Rs.15.00 Crore
(d) Rs.20.00 Crore
(e) Rs.25.00 Crore
21. As per Bank‘s Lending Policy, the maximum exposure cap for commercial loans to
partnership firms, clubs and Associations is _____________ .
(a) Rs. 5.00 Crore
(b) Rs.10.00 Crore
(c) Rs.15.00 Crore
(d) Rs.50.00 Crore
(e) Rs.25.00 Crore
registered societies and trusts is _____________ .
a) Rs. 5.00 Crore
b) Rs.10.00 Crore
c) Rs.15.00 Crore
d) Rs.20.00 Crore
e) Rs.40.00 Crore
limited liability partnerships is _____________ .
a) Rs. 5.00 Crore
b) Rs.20.00 Crore
c) Rs.15.00 Crore
d) Rs.5.00 Crore
e) Rs.25.00 Crore
24. Achievement level of Priority Sector will be considered from the figures of _________
of Previous Year.
a. Last Friday of March

b. Last Reporting Friday of March
c. Last day of March
d. Any one of the above
25. The interest rates on banks‘ contribution to RIDF or any other Fund, periods of
deposits, etc. shall be fixed by _________________ from time to time
a. Government of India
b. Reserve Bank of India
c. NABARD / SIDBI, as the case may be
d. A committee by IBA
26. As per our lending policy, Ideal level of current ratio is ____ & hurdle level of current
ratio in case of existing borrower is ____
a. 1.33: 1 & 1.25 : 1

b. 1.25 : 1 & 1 : 1
c. 1.5: 1 & 1.33 : 1
d. 1.1 : 1 & 1.25 : 1
e. None of these
27. What is the minimum (Ideal) level of Promoter Contribution, in case of Term Loan
under project finance?
a. 25%
b. 30%
c. 20%
d. 15%
e. None of these
28. As per our lending policy, ideal average DSCR is
a. 1.5 : 1
b. 2 : 1
c. 1.25: 1
d. None of these
29. As per our lending policy, hurdle average DSCR is
a. 1.5 : 1
b. 2 : 1
c. 1.25: 1
d. None of these
30. As per our lending policy, the benchmark TOL / TNW ratio is _____ and hurdle
TOL/TNW ratio is _____.
a. 4:1 & 2:1

b. 2:1 & 4:1
c. 3:1 & 4:1
d. 3:1 & 4:1
e. 4:1 & 6:1
31. What are the Prudential Exposure limits?
a) for individuals 15 % of capital

b) for group 40 % of capital
c) for Infrastructure individual – 20 % & group 50 %
d) any exception to the above with the approval of Board of Directors
e) all of the above
32. Which of the following is true for advances against shares?
a) Bank cannot grant loans against its own shares

b) loans cannot be granted to companies for buy back of shares/
debentures
c) loans cannot be granted against partly paid shares
d) no loans to firms/proprietorship against its own shares /debentures
e) all of the above
33. Which of the following item is a ‗Nil Risk Weight‘ asset?
a. Fund based limits to bank‘s own staff against superannuation

benefits
b. Claims / Exposure / Receivables from Foreign Banks with External
Credit rating of ‗AAA‘ to ‗AA‘ by Standard and Poor, FITCH
c. Credit Exposures covered by Guarantees of state government to the
extent of cover
d. Fund Based exposure to state government
34. Which of the following exposure is not considered as low priority sector as per our
lending policy?
(A) Loans to Real Estate, Property Developers, and Builders for the
purpose of carrying on Real Estate business (subject to compliance
of guidelines notified under Real Estate Policy;
(B) Fresh/enhanced credit limits to NBFCs;
(C) Aviation Sector;
(D) Gems, Jewellery and Diamond Sector (GJD) (Also known as
Precious Gems & Jewellery);
(E) Credit facilities to Partnership Firms having HUF as partner;
35. Which of the following exposure is not considered as prohibited sector as per our
lending policy?
a) Credit facilities against pledge of gold/silver bullion, primary gold for any
constituent other than the authorized agencies;
b) Financing of Exports to countries, where ECGC cover is not available;
c) Settlement of existing overdues classified as NPA by granting fresh credit
facility to the borrowers/associates;
d) Any lending of accommodative nature, without underlying commercial
consideration/transaction;
e) Lending against Term Deposit Receipts of other banks;
36. Exposures without Credit rating will attract Risk weight of _____________.
a) 20% (b) 50% (c) 75% (d) 100% (e) 125%
37. The risk weight of Off Balance Sheet exposure is arrived at, by first converting these
exposures into Credit equivalent by applying the CCF. Expand CCF.
a. Credit Comparison Factor b. Credit Conversion Factor

c. Credit Conversion Facility d. Capital Conversion Factor e. None of these
38. What is the Risk Weight for Credit Card Receivables of individuals?
a. 100% b. 150% c. 125% d. 75% e. None of these
39. What is the exposure norm in the case of oil companies on the capital of the bank?
a. 20% b. 15% c. 40% d. 30% e. 25%
40. In case of Infrastructure projects, the group exposure should not exceed _____% of
the Capital funds of the bank.
41. Under Exceptional Circumstances, additional exposure of ____% is permitted by RBI.
42. What is the minimum (hurdle) level of Promoter Contribution, in case of Term Loan
under project finance?
43. Which of the following are not prohibited by RBI / our internal guidelines for
lending/investment?
a. Lending for conflict diamond

b. Purchase and discounting of a cheque drawn on a Cooperative Bank
c. Credit facilities to partnership firm having HUF as a partner
d. Credit facility against the security of shares to individual in
joint names
44. Which of the following are deemed as Sensitive sectors?
a. Capital market b. Real Estate c. Non-Banking Finance Companies

d. Commodities Market e. All the above
45. In case of renewal of CCH account without enhancement, which of the following
document is required?
a) Only DOC 51
b) DOC 51 & Supplementary agreement
c) Only supplementary agreement
d) None of the above (e) All of the above
46. Which of the following document is obtained for revival of time barred debt?
a) DOC 50 (b)DOC 51 (c) DOC 57 (d) DOC 58 (e) DOC 57 OR 58
47. When education loan is given with hypothecation, which of the following should be
obtained as a main document?
a) DOC 5 (b) DOC 35 (c) DOC 46 (d) DOC 51 (e) DOC 53
48. In case of V mortgage loan, which of the following should be obtained as a main document?
a) DOC 5 (b)DOC 35 (c) DOC 46 (d) DOC 51 (e)DOC 50
49. What is the internal ceiling of the bank on unsecured exposure? What is the control
limit on Credit & Investment?
a. 25, 15 & 10 b. 25, 20 & 5 c. 30, 15,15 d. 30, 20, 10 e. None of these
50. When DOC 50is obtained for the term loans, the period of limitation is three years
from:
a) Date of documents b) Date of default c) Date of sanction
d) Due date of each instalment e) Date of default of each instalment
51. If a document has to be executed in different States and it attracts stamp duty as per
State Stamp Act:
a) the document can be stamped in any state

b) duty paid in one state cannot be valid for other states
c) if duty in the first state is higher, no duty is required to be paid in
the other state.
d) If duty in the first state is lower, additional stamp duty has to be
paid, in the other state.
e) c or d
52. Where the Credit facilities are secured by several term deposits in the name of the
borrower(s) with varying rates of interest, then the applicable rate of interest will be
on the basis of
a. the deposit, which fetching highest rate from the bank

b. the deposit which is receiving lowest rate
c. base rate of the bank + 2 %
d. the rate will be arrived at on the principles of ―weighted average clause‖
e. None of these
53. With respect to immovable properties, minimum two independent valuation is to be

got done, if
a. the aggregate credit exposure exceeds 5 crore

b. Quantum of Loan is Rs.1.00 crore or more in case of Housing Loans
c. whenever a doubt arises as to the validity of the earlier valuation report or need is
felt for fresh valuation due to volatility of Real Estate Sector.
d. All the above
54. What is the margin to be maintained on surrender value of LIC policy, while
sanctioning a secured loan?
55. Those security/securities which are already alienated either as Primary or Collateral
securities to existing credit facilities and are offered as securities for fresh/additional
credit facilities sanctioned to the borrower is / are known as ______________.
A. Paripassu Charge B. Second Charge

C. Continuing Security D. Additional Security
E. None of the above
56. Minimum margin applicable in case of Loan Against Primary security of own term
deposits other than Jeevan Nidhi Deposit is _________.
a) Nil (b) 10% (c) 15% (d) 20% (e) 25%
57. Minimum margin applicable in case of Loan Against Primary security of own term
deposits in case of staff members and ex staff members is _________.
a) Nil b) 10% c) 15% d) 20% e) 25%

58. Minimum margin applicable in case of Loan Against Primary security of third party
term deposits is _________.
a) Nil b. 10% c. 15% d. 20% e. 25%
59. Minimum margin applicable in case of Loan Against Primary security of Jeevan Nidhi
Deposit is _________.
a) Nil b.10% c. 15% d. 20% e. 25%
60. Minimum margin applicable in case of non-fund based limits Against Primary security
of term deposits is _________.
a) Nil (b)10% (c) 15% (d) 20% (e) 25%
61. Valuation of Bank‘s term deposits would be based on the __________ in respect of
Fixed Deposits.
a) Face Value
b) Accrued Book Value
c) Face Value or Accrued Book Value whichever is less
d) F ace Value or Accrued Book Value whichever is more
62. Valuation of Bank‘s term deposits would be based on the ____________ in respect of
cumulative term deposits.
a) Face Value
b) Accrued Book Value
c) Face Value or Accrued Book Value whichever is less
d) F ace Value or Accrued Book Value whichever is more
63. As per our lending policy, the minimum frequency for submitting motor vehicle
inspection report is ______________.
a) Monthly b)Quarterly c) Half yearly d) Annual e)None of the above
64. The valuation reports must not be older than ______ prior to the receipt of fresh
Credit proposal by the branch either in respect of existing borrower or a new
connection.
a) 15 days b) one month c)three months d) six months e)one year
65. _______________ refers to borrowings by an entity from different banks for

independent purposes, against independent securities.
a) Multiple Lending Arrangement

b) Multiple Banking Arrangement
c) Both A & B (d) A or B (e) None of the above
66. Lending against a common asset like current assets financed by many Banks each
holding a charge in proportion to the extent of finance extended is known as
_________ .
a) Multiple Lending Arrangement (b) Multiple Banking Arrangement

c)Both A & B (d) A or B (e) None of the above
67. The borrower(s) opts to avail finance from two or more Banks by submitting a
common application and financial statements, the financial arrangements is known as
______________ .

c)Consortium Arrangement (d) Sole Banking (e) None of the above
68. Where an applicant/borrower avails Credit facilities exclusively from one Bank this
style of borrowing is known as __________ with the lending bank having exclusive
charge on the securities in its favour against the Credit facilities sanctioned to the
borrower(s).

c)Consortium Arrangement (d)Sole Banking (e) None of the above
69. As per the latest delegated powers, the maximum amount of fund based limits
(Single Borrower Exposure) that scale II Branch Head can sanction is
a) Rs.5.00 Lacs b)Rs.10.00 Lacs c) Rs.20.00 Lacs d) Rs.40.00 Lacs

e)Rs.50.00 Lacs
70. As per the latest delegated powers, the maximum amount of fund based limits
(Single Borrower Exposure) that scale III Branch Head can sanction is
a) Rs.5.00 Lacs (b)Rs.10.00 Lacs (c)Rs.20.00 Lacs (d)Rs.40.00 Lacs

e)Rs.50.00 Lacs
71. As per latest delegated powers, the power of scale I branch manager to sanction
pronote loan is
a) NIL b)Rs. 5.00 Lacs c)Rs.10.00 Lacs d)Rs.20.00 Lacs e) Rs.40.00 Lacs
72. As per latest delegated powers, the power of senior branch manager (Scale III) to
sanction pronote loan is
a) NIL b) Rs. 5.00 Lacs c)Rs.10.00 Lacs d) Rs.20.00 Lacs e) Rs.40.00 Lacs
73. As per latest delegated powers, the aggregate group borrower exposure in case of
Scale I Branch Manager should not exceed
a) 5.00 Lacs b)7.50 Lacs c) 15.00 Lacs d) 30.00 Lacs e)60.00 Lacs
Scale II Branch Manager should not exceed
a) 5.00 Lacs b) 7.50 Lacs c) 15.00 Lacs d) 30.00 Lacs e)60.00 Lacs
Scale III Branch Manager should not exceed
a) 5.00 Lacs b)7.50 Lacs c) 15.00 Lacs d) 30.00 Lacs e)60.00 Lacs
ANSWERS: LENDING POLICY , DELEGATED POWERS , DIFFERENT TYPES OF SECURITIES ,

CREATION OF CHARGES AND OTHER LENDIG RELATED MATTERS
1 D 11 A 21 D 31 E 41 A 51 E 61 A 71 A
2 D 12 D 22 E 32 E 42 C 52 D 62 B 72 A
3 E 13 E 23 B 33 D 43 D 53 D 63 C 73 B
4 B 14 A 24 C 34 E 44 E 54 A 64 B 74 D
5 E 15 A 25 B 35 B 45 A 55 C 65 B 75 E
6 C 16 C 26 B 36 E 46 E 56 B 66 A
7 B 17 C 27 A 37 B 47 E 57 B 67 C
8 C 18 E 28 A 38 C 48 E 58 C 68 D
9 B 19 A 29 C 39 E 49 B 59 D 69 C
10 A 20 D 30 C 40 C 50 E 60 A 70 D
QUESTION BANK ON Balance Sheet, Ratio Analysis, Fund flow & Cash
flow Statement, Break-Even Point, Credit Assessment
1) Which are the following items will appear in the liability side of the balance sheet?
i. Capital, Reserve & surplus
ii. Debentures / Bonds, Secured & unsecured term loans
iii. Bank Working capital limits, Creditors, Bills payable, Provisions &
outstanding expenses
iv. Deposits accepted from Public
v. Contingent liabilities
a. (i) & (ii)
b. All the above
c. (i), (ii), (iii) & (iv)
d. (i), (iii) & (iv)
e. (i), (ii) & (iii)
2) Which are the following items will appear in the assets side of the balance sheet?
i. Land & Building, Plant & Machinery, and other fixed assets
ii. Cash & Bank Deposits, Debtors, Inventory, Bills Receivable, Advance
payment
iii. Long term security deposits, Investments not related to business,
Investments in sister concern, Old stocks, Non consumable goods
iv. Patents, Good will, Debit balance of P & L a/c, Preliminary expenses
v. Deposits accepted from Public
a. (i) & (ii)
b. (i), (ii) & (iii)
c. (i), (ii) & (iv)
d. (i) (ii) (iii) & (iv)
e. All the above
3) ___________ funds are brought in by the promoters as their investment in business

or generated by and retained in business
a. Long term liabilities
b. Networth
c. Current liabilities
d. Contingent liabilities
e. Debentures
4) __________ are liabilities the repayment of which is to be made for a period
exceeding 12 months of the date of balance sheet
a. Term liabilities
b. Current liabilities
c. Owned funds
d. Contingent Liabilities
e. Networth
5) ________________ are the liabilities the repayment of which is to be made within 12

months of date of balance sheet
a. Long term liability
b. Current liability
c. Owned funds / Networth
d. Contingent Liabilities
e. Networth
6) ______________, which are relatively permanent in nature and they are not disposed
off within a short period. These are carried over from year to year and put to use. A
small portion of these assets is written off every year in the shape of depreciation.
a. Current Assets
b. Fixed Assets
c. Intangible Assets
d. Non current Assets
e. Immovable Assets
7) Liabilities have ________ balance and assets have ________ balance.

a. credit; debit
b. debit; credit
c. credit; credit
d. nil; credit
e. debit; Nil
8) _____________ are those liabilities, which have either become due for payment or
shall fall due for payment within 12 months from date of balance sheet.
a. Term liabilities
b. Current liabilities
c. Net worth
d. Contingent liabilities
e. Short Term Bank Borrowings
9) Which one of the following statement is wrong?

a. Long term liabilities + Short term liabilities = Total outside liabilities
b. Net worth + Long term liabilities = Long term sources of funds
c. Current liabilities + Long term liabilities = Net worth
d. Networth + Term liabilities + Current liabilities = Total Liabilities
e. Contingent liabilities are off -balance sheet items
10) ___________ assets in business don‘t have any physical presence or in other words
these are just book entries created with certain specific objectives. In order to account
for the cost incurred on such expenses, they are shown as assets in the books.
a. Current assets
b. Fixed Assets
c. Intangible assets
d. Non Current assets
e. Immovable Assets
11) Investment in shares & securities, investment in sister concern, caution deposits,
non- consumable stores, disputed book debts, un-usable stocks are called as
_________ assets, these assets are may be unrelated to the business operations or
might have been acquired due to some compulsion.
a. Current assets
b. Intangible assets
c. Fixed assets
d. Non current assets
e. Non- Performing Assets
12) ___________ assets are required by the business for the purpose of re-sale and re-
circulating and arise out of usual business dealings. They are held temporarily for
subsequent conversion into cash maximum within a period of 12 months.
a. Fixed Assets b. Current assets c.Intangible assets d. Non current assets
e.Non- Performing Assets
13) _________ is the likely liability which may or may not arise on happening of specified
event and is shown as footnote of the balance sheet, the same is also called as off-
balance sheet items
a. Current liabilities b.Fictitious liability c. Current assets d.Contingent liabilities
e.Intangible assets
14) From the following heads, Arrive the total Value of Current Liabilities:
Bank Overdraft 10
Bills Payable 15
Provision for Expenditure 25
Outstanding Expenditure 20
Prepaid Expenses 15
Sundry Creditors 20
Book Debts 15
a. 120 b.90 c.105 d. 75 e. 85
15) From the following heads, Arrive the total Value of Current Assets:
Sundry Debtors 25
Book Debts 15
Provision for Bad debts 5
Prepaid Expenses 15
Inventories 20
Consumable Stores 15
Cash & Bank Balance 30
Bills Receivables 20
a. 140 b.145 c. 135 d. 130 e. 120
16) From the following heads, Arrive the total Value of Term Liabilities:
Term Loans 100
Debentures / Bonds 150
Unsecured loans repayable within 12 months 50
Unsecured loans repayable later than 12 months 150
General Reserve 500
Loans from friends and relatives 200
a. 950 b. 600 c. 300 d. 1150 e. 650
17) From the following heads, Arrive the total Value of Non Current Assets:
Obsolete stocks 30
Long Term security deposit taken from customers 40
Investment in sister concern 45
Investment in listed company shares 25
Disputed book debts 5
a. 105 b. 115 c. 120 d. 140 e. 145
18) Surplus of long term sources over long term uses called _______________
a. Quick assets
b. Net worth
c. Net working capital
d. Intangible assets
e. Current Assets
19) From the following which will not come under the head of quick assets:
a. Cash & Bank balance
b. Sundry Debtors
c. Inventories
d. Bills receivable
e. Book Debts less than 45 days old
20) Which one of the following is not correct pair of matching:

a. Pre-operative expenses – current liability
b. Outstanding expenses – current liability
c. Prepaid expenses – current assets
d. Preliminary expenses – intangible assets
e. Provision for Taxation – Current Liability
21) Networking capital can be calculated as:

a. Current assets – current liabilities other than bank borrowings
b. Long term sources – long term uses
c. Current assets – current liabilities
d. All the above
e. Both (b) and (c) are correct
22) The total liabilities of a firm are 50, its long term uses 20 and long term sources 30.
Which one of the following statement is correct?
a. Current assets = 50 and current liabilities = 20
b. Current assets = 30 and current liabilities = 20
c. Current assets = 20 and current liabilities = 30
d. Current assets = 30 and current liabilities = 30
e. Current assets = 50 and Current liabilities = 20
23) The total assets of a firm are 80 and its long term sources are 50 with net worth 20.
Which one of the following statement is correct?
a. Current liabilities 30, total outside liabilities 60
b. Current liabilities 10, total outside liabilities 70
c. Current liabilities 20, total outside liabilities 60
d. Current liabilities 30, total outside liabilities 70
e. Current liabilities cannot be worked as information is incomplete
24) A bus is a :
a. Current asset for a transport operator
b. Fixed asset for a transport dealer
c. Current assets for a automobile dealer and fixed assets for a transport operator
d. Current assets for a transport dealer and transport operator
e. Performing assets for transport dealer
25) In a balance sheet, profit is shown under ________ and loss is shown under
__________
a. Assets side under the head of Intangible assets; liabilities side under the head
of Net worth
b. Liabilities side under the head of Net worth; Assets side under the head of
Intangible assets
c. Liability side as Current liabilities; Assets side as current assets
d. Assets side as current assets; Liability side as Current liabilities
e. Assets side as Tangible Assets; Liability side as contingent liabilities
26) Letter of credit and Guarantees issued by banks on behalf of the organization is
treated as _________
a. Current liability
b. Current asset
c. Long term liability
d. Contingent liability
e. Intangible Assets
27) If a company issues bonus shares, the net worth of the company:
a. Will increase
b. Will not change
c. Will decline
d. It will change, may increase or decrease
e. will not change, subject to if the company incurring loss
28) A join stock company‘s total assets are Rs. 45 crore which include intangible assets
worth Rs. 2 cr. Its liabilities other than share capital and reserves are Rs. 40 cr. What
is the amount of tangible net worth?
a. 3 cr b) 7 cr c) 5 cr d) 2 cr e) 38 cr
29) A firm is having paid up capital of Rs. 2 lac, reserves of Rs. 1 lac, current liabilities of
Rs. 1 lac, prepaid expenses of Rs. 0.20 lac and pre-operative expenses of Rs. 0.30 lac.
What will be its tangible net worth:
a. Rs. 2.50 lac b.Rs. 2.70 lac c.Rs. 3 lac d.Rs. 3.50 lac e.Rs. 3.70 lacs
30) A balance sheet shows total liabilities at Rs. 10 lac, current liabilities at Rs. 5 lac and
long term debt Rs. 2 lac and debit balance of profit and loss account at Rs. 1 lac. The
tangible net worth is
a. Rs. 2 lacs b.Rs. 4 lacs c. Rs. 3 lacs d.Rs. 5 lacs e.Rs. 9 lacs
31) The term QUASI EQUITY refers to

a. Unsecured loans from friends and relatives with letter of pegging
b. Unpaid share capital
c. Capital reserve
d. All the above
e. Only (a) and (b)
32) Balance Sheet for a milk society, the livelihood cows should be classified as
a. A fixed assets
b. A current assets
c. Both the above
d. Movable Current Assets
e. None of these
33) When the reserves of a company are capitalized, the result is :

a. a public issue
b. a private placement
c. rights issue of shares
d. bonus issue of shares
e. Revaluation Reserve to be Created
34) Calculate the tangible net worth from the following balance Sheet
Liabilities Rs. Assets Rs.

Capital 50,000 Fixed Asset 60,000
Term Loan 10,000 Current Asset 30,000
Reserve & Surplus 20,000 Good Will 10,000
Current Liabilities 40,000 Profit & Loss Account 20,000
a. Rs.50, 000/- b.Rs.10, 000/- c. Rs.40, 000/- d. Rs. 20,000/- e.Data

insufficient
35) A company has net worth Rs. 5 lac, Term Liability Rs. 10 lacs. Fixed assets Rs. 16 lacs
and Current assets Rs. 25 lacs. There is no intangible Assets or other Non current
assets. Calculate its Net Working Capital
a. Rs. 10 lac b.Rs. 1 lac c.Rs. 9 lac d.Rs. (-) 1 lac e.Rs. 14 lacs
36) Current ratio is 2:5 Current Liability is Rs. 30, 000. The Net working capital is
a. Rs. 12,000/-
b. Rs. 18,000/-
c. Rs. (-) 45,000/-
d. Rs. (-) 18,000/-
e. Rs. (-) 12,000/-
37) In last year the Current Ratio was 3:1 and Quick Ratio was 2:1. Presently Current
ratio is 3:1 but quick Ratio is 1:1. This indicates comparably
a. high liquidity
b. higher stock
c. lower stock
d. high turnover
e. Lower Book Debts
38) Which of the following ratios is an overall measure of a unit‘s profitability?
a. Current ratio
b. Debt-equity ratio
c. Quick ratio
d. Return on capital employed
e. Stock turnover ratio
39) Funds raised through long term sources should be invested :

a. In current assets
b. In fixed assets
c. Partly in fixed assets and partly in current assets
d. Intangible assets
e. To written off the Non Current Assets
40) If a company revaluates its assets, the net working capital, current ratio and quick
ratio of the company
a. will improve b.will remain unaffected c.will undergo some change
d.will be affected with NWC e.None of the above
41) Window dressing of current ratio is possible by:

a. Undervaluing the inventory
b. Overvaluing the inventory
c. Depositing cash in hand in bank
d. Converting cash into inventory
e. Reducing Book debts and increasing cash balance
42) Cash generated in business or cash profit or cash accrual, means:

a. Net Profit after tax before depreciation
b. Net Profit less depreciation
c. Gross Profit
d. Net Profit before tax after depreciation
e. Gross Profit Less Depreciation
43) The long term use is 120% of long term source. This indicates the unit has
a. Current Ratio 1.2:1 (b) negative TNW (c) low capitalization
(d)negative NWC (e) Over Utilization of funds
44) Average creditors outstanding is Rs. 4000. Total credit purchases during the year Rs.
96, 000. Creditors velocity is
a. 0.5 month b. One month c. Two months d.24 months e.Date insufficient
45) Sundry Debtors of a company is Rs. 90, 000 which includes Rs. 30, 000 as
non-trade debt. Debtors‘ velocity is 3 months. Calculate annual credit sales.
a. Rs. 2 lakhs b.Rs. 2.4 lakhs c.Rs. 3.6 lakhs d.Rs. 1.8 lakhs
e.Date insufficient
46) Annual sales of unit is 2.5 lacs, Gross profit during the year is Rs. 50, 000.
Average stock is 50, 000. Calculate stock turnover ratio?
a. 3 times b.4 times c. 5 times d. 6 times e.Date insufficient
47) Debt-equity ratio is arrived at by dividing:

a. Current assets by net worth
b. Current liabilities by bank borrowings
c. Net worth by bank borrowings
d. Bank Borrowings by Net worth
e. Term liabilities by tangible net worth
48) Creditors velocity expresses the

a. Maximum period to which credit availed
b. Average period of credit enjoyed
c. Minimum period of credit availed
d. Minimum period for which credit extended to our parties
e. Recovery Capacity of the unit
49) From the following, which is not a source of fund in a fund flow statement :
a. Cash Sales of fixed assets b.Sale of current assets c.Issue of bonus shares
c.Rights issue e.Capital Infusion
50) The length of working capital cycle does not depend on

a. holding period of raw material b.holding period of finished goods
c.period of credit enjoyed d. manufacturing period
e.conversion period of finished goods to Sales
ANSWERS
1 B 16 B 31 A 46 B
2 D 17 A 32 A 47 E
3 B 18 C 33 D 48 B
4 A 19 C 34 C 49 C
5 B 20 A 35 D 50 C
6 B 21 E 36 D
7 A 22 B 37 B
8 B 23 A 38 D
9 C 24 C 39 C
10 C 25 B 40 B
11 D 26 D 41 B
12 B 27 B 42 A
13 D 28 A 43 D
14 B 29 B 44 A
15 A 30 A 45 B
Solutions:
14) 10+15+25+20+20= 90 except prepaid expenses & Book Debts all are current liabilities
15) 25+15+15+20+15+30+20= 140 except Provision for Bad Debts all are current assets
16) 100+150+150+200= 600 except unsecured loans repayable within 12 months & General
reserves all are Term liabilities
17) 30+45+25+5 = 105 Except Long term security deposit taken from customers all are non-
current assets
22) Total Liabilities = Total Assets = 50
Total Liabilities (50) – Long term sources (30) = Short term sources (20)
Total Assets (50) – Long Term Uses (20) = Short term uses (30)
Current Assets =30 and Current liabilities = 20
23) Total Assets = Total Liabilities = 80

Long term Sources (50) = Networth (20) + Term Liabilities (30)
Total Liabilities (80) – Long Term Sources (50) = Short Term Sources (30)
Total outside Liabilities = Term Liabilities (30)+Short Term sources (30)= 60
28) Total Assets = Total Liabilities = 45

Total Liabilities (45) – Liabilities other than Networth (40) = Networth (5)
Tangible Networth = Networth (5) – Intangible Assets (2) = 3
29) Capital (2) + Reserves (1) = Networth (3) – Intangible asset (Pre-operative expenses –
0.30) = Tangible Networth (2.70)
30) Total Liabilities (10) = Total Assets (10)

Current liabilities (5) + Term Liabilities (2) = Networth (3)
Tangible Networth = Networth 3 - Intagible Assets (1) = Tangible Networth (2)
34) Capital (50) + Reserve & Surplus (20) = Networth (70)

Good will (10) + Profit & Loss account Debit balance (20) = Intangible assets (30) Tangible
Networth= 70-30 = 40
35) Fixed Asset (16) + Current Asset (25) + Noncurrent assets (0)+ Intangible Assets (0) =
total Assets (31 ) = Total Liabilities
Total Liabilities (31) – Networth (5) – Term Liabilities (10) = Current Liabilities (26)
Networking Capital = Current Assets (25)- Current Liabilities (26) = -1
36) Current Ratio 2:5 Current Liability is Rs. 30,000 means Current Asset is 30000/5 x 2 =
12000 Networking capital = Current Asset – Current liabilities = 12000-30000 = -18000
44) Creditor Velocity = Average Creditors / Credit purchases x 12

= 4000/ 96000 x 12 = 0.5 months
45) Sundry debtors – non trade debtors = 60000 Trade Debtors
Debtors velocity = Sundry Trade Debtors / Credit Sales x 12 = 3
60000 x 12 / 3 = Credit Sales = 240000
46) Stock Turnover Ratio = Cost of Goods sold / Average Stock

Cost of Goods sold = Sales – Gross profit = 200000
Stock Turnover ratio = 200000/50000 = 4 times
INCOME RECOGNITION AND ASSET CLASSIFICATION AND

PROVISIONING AND RECOVERY POLICY
01 As per the recommendations made by the committee on the

financial system, headed by ____________ , RBI has introduced
prudential norms for Income recognition and Asset classification
and provisioning .
A Mr. M. Narasimham
B Mr. M. Narasimha Rao
C Mr. C. Rangarajan
D Mr. P. R. Nayak
E Mr. M. V. Nair
02 The purpose of introduction of prudential norms for Income recognition , asset classification
and provisioning is:
A To bring uniformity in accounting procedure
B To bring greater consistency and transparency in the
published accounts.
C To avoid window dressing
D All the above
E None of the above
03 Income recognition is based on the
A Actual charging of interest
B Actual debiting of interest
C Actual recovery
D All the above
E None of the above
04 With the introduction of IRAC norms, health code based system for classification of advances -
------------------
A Can be continued
B Should not be used
C Has been Ceased. However, Banks may use this as a management information tool at
their discretion.
D Is discontinued & a new system have been introduced
E None of the above
05 What is the definition of the non performing asset ?
A When the asset not able to be used by the owner.
B An asset, when it ceases to generate income for the Bank.
C Asset become old and unusable
D Either A or C
E None of the above.
06 A Term loan becomes NPA when it
A Interest and / or installment of principal remain overdue for period of more than 90
days
B Interest remain overdue for more than 90 days
C Principal remain overdue for more than 90 days
D Installment of principal remain overdue for more than 60days
07 In case of OD/CC account, it becomes NPA when:
A Account is out of order
B Less operation in the account
C Death of a partner
D Death of the borrower.
E No operation in the account
08 Account is called out of order when:

A Out standing balance remains continuously in excess of the sanctioned limit
B There are no credits for more than 90 days
C Credit are not sufficient to cover the interest debited during the same period
D All the above.
E None of the above
09 In case of Bills purchased or discounted, it becomes NPA if
A Not realized within 90 days
B Returned unpaid
C Interest is not collected
D The bill remains overdue for a period of more than 90 days
E The bill remains overdue for a period of more than 30 days
10 In case of direct Agriculture loans
A The installment of principal or interest thereon remains overdue for two crop season for
short duration crops
B The installment of principal or interest thereon remains overdue for one crop season for
long duration crops
C Both a and b
D None of the above
E Interest and / or installment of principal remain overdue for period of more than 90
days
11 Account is over due means:
A Not renewed on due date
B No credits to the account
C No debits in the account
D Any amount due to the Bank under any credit facility is overdue if it is not paid on the
due date fixed by the bank
E Out standing balance is more than the sanctioned limit
12 Income recognition is based on the record of recovery and not on the basis of debiting interest
on the account. However, this is not applicable to :
A Loans against deposits
B Loans against NSCs, IVPs, KVPs
C Loans against S.V of LIC policies
D All the above
E None of the above
13 The Credit Card account will be treated as NPA
A If credit card bill amount is not paid on or before 5th of next month
B If account is out of order
C Interest remain overdue for more than 90 days
D If the minimum amount due, as mentioned in the statement, is not paid fully within 90
days from the next statement date. The gap between 2 statements should not be more
than a month.
E If the bill amount is not paid within 7 days
14 If any advance, including the bills purchased and discounted, becomes NPA as the close of any
year:
A Interest accrued and credited to income account in the corresponding previous year
should be reversed
B Provision should be made if the same is not realized
C Both a and b
D None of the above.
E Provision should be made for the current year only
15 Recovery from NPA accounts to be appropriated in the order of :

A Principal, Interest, Other charges
B MOI, AUC, Principal
C AUC, MOI, Princiapl
D In any order
E Charges, Interest, Principal
16 Non performing accounts are classified into the following catogories:
A 4 types. Standard , Sub-standard, Doubtful, and loss assets
b 3 types: Sub-standard, Doubtful, and loss assets
C Both a and b
D 3 types: SMA 0, SMA 1 & SMA 2
E None of the above
17 With effect from 31.03.2005, Sub standard accounts means:
A Which has remained as NPA for a period less than or equal to 18 months
B Which has remained as NPA for a period less than or equal to 24 months
C Which has remained as NPA for a period less than or equal to 36 months
D Which has remained as NPA for a period less than or equal to 12 months
E Which has remained as NPA for a period less than or equal to 6 months
18 With effect from 31.03.2005, Doubtful accounts means:
A If it has remained in sub standard category for a period of 18 months.
B If it has remained in sub standard category for a period of 24 months.
C If it has remained in sub standard category for a period of 36 months.
D If it has remained in sub standard category for a period of 12 months.
E If it has remained in sub standard category for a period of 6 months
19 Loss account means:
A Account has been identified by the bank either by internal or external auditors
B Identified by the RBI auditors but account is not written off wholly
C Asset is considered uncollectible and of such little value
D All the above.
E If it has remained in Doubtful category for a period of 12 months
20 An account where the regular/ad hoc credit limits have not been reviewed/ renewed within ---
-------------days from the due date/date of ad hoc sanction will be treated as NPA.
A 180
B 90
C 60
D 120
E 30
21 Asset classification is to made on the basis of -----------------
A Borrower wise
B Account wise
C Limit wise
D Branch wise
22 Asset classification of accounts under consortium should be based on the -------------
A Lead banks decision on NPA to be followed.
B Record of recovery of the individual member banks
C Cannot be NPA unless Lead bank treats the account as NPA
D Availability of security
E None of the above
23 When the realizable value of the security is less than 50 % of the value assessed by the Bank
or accepted by RBI at the time of the last inspection, such NPAs may be straight away
classified under :
A Doubtful
B Loss asset
C Sub standard for first 12 months
D Sub Standard for first 6 months
E None of the above
24 If the realizable value of the security , as assessed by the bank/approved valuers/RBI is less
than 10 % of the outstanding in the borrowal accounts, it should be straight away classified as
A Sub standard assets

B Doubtful assets
C Standard asset
D Loss asset
E Sub Standard for first 6 months
25 In the following accounts, it need not be classified as NPA even if there is no credits for the
last 90 days :
A Advance against banks term deposits, IVPs, KVPs & SV of LIC policies provided adequate
margin is available in the accounts
B Gold ornaments , Govt securities
C Both a and b
D Consortium advances
26 The credit facilities backed by guarantee of the Central Govt though overdue may be treated
as NPA only when:
A The Govt repudiates its guarantee when revoked.
B The Govt does not respond
C Both a and b
D None of the above
E If overdue for more than 90 days.
27 Banks can reschedule / restructure borrowal accounts with :
A Retrospective effect
B Cannot with retrospective effect
C Only from future date
D None of the above.
E Cannot be rescheduled / restructured
28 Up gradation of the restructured accounts is possible only
A After the specified period ie: a period of one year after the date when first payment of
interest or of principal, whichever is earlier, falls due, subject to satisfactory performance
during the period.
B The above is applicable to all types of credit facilities including working capital for
Industrial unit, provided they are fully covered by tangible securities.
C The above should not be applied to credit facilities extended to traders.
D All the above.
E None of the above
29 CDR mechanism means:
A Corporate debt restructuring mechanism
B Credit debit reconciliation mechanism
C Credit Deposit ratio mechanism
D Cash deposit ratio
30 Provisioning for Loss assets are at:
A 100 %
B 50 % of secured portion and 100 % on unsecured portion
C 75 % of secured portion and 100 % on unsecured portion.
D 25 % of secured portion and 100 % on unsecured portion

31 Provisioning for Doubtful assets are at 100 % of the unsecured portion and
A 25 % of secured portion for the first one year
B 40 % of secured portion for the next 1 to 3 years
C 100 % of secured portion for more than 3 years
D All the above.
E None of the above
32 Provisioning for sub standard assets are at
A A general provision at 15 % on total outstanding without making any allowance for ECGC
guarantee cover
B Additional 10 % on unsecured portion
C Both a and b
D 25%
33 Provisioning for standard assets are at
A 0.25 % - direct advance to Agriculture and SME
B 1 % - on Commercial Real Estate
C 0.40 % all other advances excluding housing loans on teaser rates
D All the above.
E Provisioning is not required
34 A MSE unit is considered ‗Sick‘ when
A Any of the borrowal account of the enterprise remains NPA for 3 months or more
OR there is erosion in the net worth due to accumulated losses to the extent of 50% of
its net worth
B The unit should have been in commercial production for at least 2 years
C A or B
D Both A and B
E None of the above
35 If the Government guaranteed advances become NPA,
A The interest on such advances should not be taken to income account unless the interest
has been realized.
B The interest can be recognized as income
C It is the discretion of the bank
D None of the above
E Government guaranteed advances should not be made as NPA
36 The cut off limit to classify the non-performing accounts as willful defaulter is
A Sanctioned limit of Rs.25 lakh & above
B Outstanding aggregating Rs.25 lakh & above
C Outstanding aggregating Rs.5 crores & above
D Outstanding aggregating Rs.1 crore & above
E Outstanding aggregating Rs.50 lakh & above
37 Banks are required to report credit information, including classification of an account as SMA
to Central Repository of Information on Large Credits (CRILC) on all their borrowers having
aggregate fund–based & non-fund based exposure of___ with them
A Rs.25 lakh & above
B Rs.1 crore & above

C Rs.5 crores & above
D Rs.10 lakh & above E Rs.50 lakh & above
38 SMA 0 sub-category means

A Principal or interest not overdue for more than 30 days but accounts showing signs of
incipient stress
B Principal or interest payment overdue between 31- 60 days
C Principal or interest payment overdue between 61 – 90 days
D Principal or interest payment overdue for period of more than 90 days
E Principal or interest payment overdue for period of more than 60 days
39 The assets both primary & collateral securites hypothecated/mortgaged to the Bank have to
be valued once in ------------.
A 1 year
B 2 years
C 3 years
D 5 years
E 6 months
40 Upon filing a Suit/Decreed/CPUPDR, the respective NPA account should be
A Closed & a new account is opened under Suit Filed/Decreed/CPUPDR accounts.
B Not be closed but a new account is opened under Suit Filed/Decreed/CPUPDR accounts
C Marked/ flagged and the details of the suit are to be fed in the system as SF/ Decreed/
CPUPDR in the existing account
D Not to be altered.
E Closed
41 SMA 1 sub-category means
incipient stress
42 Bank can engage Asset Reconstruction Companies as Recovery Agents to recover
----------------------------.
A Loss Assets and AUCs
B All NPA and AUC accounts
C Only AUCs
D Only NPAs
E Only Loss assets
43 All NPA accounts, both suit filed & non suit filed accounts upto ______________ can be
referred to Lok Adalat.
A Rs.10 lakh
B Rs.20 lakh
C Rs.25 lakh
D Rs.15 lakh
E Rs.5 lakh
44 Debt Recovery Tribunals (DRTs) have been established for speedy recovery of dues involving
plaint claims of _____________________
A Rs.10 lakh & above
B Upto Rs.10 lakh
C Upto Rs.20 lakh
D Upto Rs.25 lakh
E Rs.5 lakh & above
45 SMA 2 sub category means

incipient stress
46 Wherever borrower raises objection for Bank‘s SARFAESI notice, the Authorised Officer should
respond the same within __ days from the date of receipt of such objection.
A 7
B 15
C 45
D 60
E 30
47 Once the SARFAESI notice is issued, the actual possession has to be taken immediately after
lapse of __ days of SARFAESI notice period.
A 15
B 30
C 45
D 60
E 7
48 Full payment of OTS has to be made within _____ of sanction without any interest.
A 6 months
B 45 days
C 30 days
D 1 year
E 3 months
49 Expand MACA
A Mutual acceptable compromise amount
B Maximum acceptable compromise amount
C Minimum acceptable compromise amount
D Mutual agreeable compromise amount
E None of the above
50 Operations are allowed in MSE NPA a/cs for __________ for conducting the viability study
A 0 month, as operations are not allowed in NPA a/cs
B 3 months
C 12 months
D 6 months
E 1 month
51 For payment of OTS beyond 30 days, interest at ____________ to be charged at compound

basis from 31st day.
A BR+1% or documented rate whichever is less
B Base Rate
C BR + 4.35%
D Documented rate
E BR + 2%
52 Vijaya Rhuna Mukthi Yojana is for
A All NPA accounts
B Priority Sector & Government Sponsored schemes
C Chronic Tractor loans
D AUC accounts E Only Loss accounts
53 In case of sale of assets/ settlement under OTS, the valuation report should be _____ in
respect of immovable property.
A Not more than 1 year old
B Not more than 2 years old
C Not more than 3 years old
D Original valuation report
E Not more than 3 months old
54 In case of negotiated settlement, down payment of ____ of amount should be made.
A 10%
B 15%
C 25%
D 20%
E 5%
55 As per Recovery Policy of our Bank, in case of AUC accounts with balance Rs.10 lakh & below
& where securities are not available, the branches may settlement the account by collecting at
least ____ of the AUC balance
A 75%
B 50%
C 25%
D 30%
E 10%
56 Demand notice under section 13(2) of securitization Act should be issued within ____ days of
the account becoming NPA
A 7 days
B 10 days
C 30 days
D 90 days
E 15 days
57 NPA due to non-renewal, renewal process should be completed within _____ from the date of
categorizing the a/c as NPA
A 90 days
B 180 days
C 1 month
D 1 year
E 7 days
58 Filing of suit should be taken up within _______ from the date the a/c becoming NPA & after
all other remedies are exhausted
A 1 year
B 6 months
C 2 years
D 3 years
E 3 months
59 Working capital advances classified as NPA wherein operations are allowed as a strategy for
recovery are to be renewed/reviewed at frequent intervals/at least _____
just like review/renewal of standard assets.
A Once in a Year
B Once in 2 years
C Once in 6 months
D No renewal only closure of account
E Once in 3 months
60 For calculation of NPV, discount rate at ______ should be applied.
A BR+4.35% B Documented rate C Base Rate
D BR+1% E BR+2%
ANSWERS
INCOME RECOGNITION AND ASSET CLASSIFICATION AND PROVISIONING AND
RECOVERY POLICY
01 A 11 D 21 A 31 D 41 B 51 A
02 B 12 D 22 B 32 C 42 B 52 B
03 C 13 D 23 A 33 D 43 C 53 A
04 C 14 C 24 D 34 A 44 A 54 A
05 B 15 A 25 A 35 A 45 C 55 A
06 A 16 B 26 A 36 B 46 B 56 A
07 A 17 D 27 B 37 C 47 D 57 C
08 D 18 D 28 D 38 A 48 C 58 B
09 D 19 D 29 A 39 C 49 C 59 A
10 C 20 A 30 A 40 C 50 D 60 A

All matters relating to Forex Business and Non-Fund based Business,

Foreign Inward Remittances
1. Foreign Exchange Management Act (FEMA) is administered by:
a. RBI b. Govt. of India c. SEBI d. both a & b e. All of these
2. A license to deal in foreign exchange to authorized dealers is issued by:
a. DGFT b. FEDAI c. RBI d. EXIM Bank e. both a & b
3. All foreign exchange transactions in India are governed by:
a. Foreign Exchange Regulation Act, 1973 b. Reserve Bank of India Act, 1934
c. Foreign Exchange Management Act, 1999 d. Banking Regulation Act, 1949
e. All of these
4. Restricted money changers are the firms / organizations authorized to undertake:
a. sale of foreign currency notes, coins and travellers‘ cheques to the public
b. purchase of foreign currency notes, coins and travellers‘ cheques from the
public
c. issue of letters of credit for their importer customers
d. both sale and purchase of foreign currency notes, coins travellers‘ cheques
to / from the public

e. either a or b above
5. Full fledged money changers are the firms / organizations authorized to undertake:
a. sale of foreign currency notes, coins and travellers‘ cheques to the
public
b. purchase of foreign currency notes, coins and travellers‘ cheques from
the public
c. issue of letters of credit for their importer customers
d. both sale and purchase of foreign currency notes, coins travellers‘
cheques to / from the public
e. either a or b above
6. Forward transaction in foreign exchange means a transaction:

a. that is to be settled on the same day
b. in which delivery of foreign exchange takes place on the second
working day of the contract
c. in which delivery of foreign exchange takes place on the next working
day of the contract
d. in which delivery of foreign exchange takes place beyond second
e. in which delivery of foreign exchange takes place after at least 90 days
beyond the day of the contract
7. Forex transactions are classified according to date of deal and date of delivery. Which
of the following is not correct regarding type of exchange transaction?
a. Cash: Which is to be settled on the same day
b. Spot : delivery of foreign exchange takes place on the second working
day of the contract
c. TOM: delivery of foreign exchange takes place on the next working day
of the contract
d. Forward: delivery of foreign exchange takes place beyond second
e. None of these
8. For the purpose of foreign exchange transactions, foreign banks maintain accounts
with Ads in India in Indian rupees. In their mutual communications, Ads in India refer
to such accounts ad _______ accounts
a. Loro b. FCNR c. Vostro d. Nostro

e. Escrow
9. Account of a bank in India with a foreign correspondent bank abroad in foreign

currency is called
a. Loro b. FCNR c. Vostro d. Nostro

e. Escrow
10. Which of the following is not correct regarding classification of correspondent

accounts?
a. Nostro: our account with you b. Vostro: Your account with us

d. Loro: Their account with them d. None of these
e. All of these
11. Bank of India maintains Nostro account with Citibank in New York, Bank of Baroda
also maintains Nostro account with Citibank New York. If Bank of India wants to
transfer funds from its Nostro a/c to Nostro a/c of BoB, then account of BoB is called
as:
a. Nostro b. Vostro c. Loro d. Kerb

e. None of these
12. When foreign currency is fixed and value of home currency is variable, it is called:
a. direct rate b. indirect rate c. cross rate d. variable rate

13. When home currency is fixed and value of foreign currency is variable, it is called:
a. direct rate b. indirect rate c. cross rate d. variable rate e. All of these
14. In India, which type of rate is applied for foreign exchange transactions?
a. direct rate b. indirect rate c. cross rate d. variable rate
e. All of these
15. In India, exchange rates are decided by whom?
a. RBI b. FEDAI c. IBA d. Market forces e. none of

these
16. When nostro account of the bank is credited before the payment to the tenderer of
foreign exchange, which of the following rates will be applied?
a. TT buying rate b. Bills buying rate c. TT selling rate d. Bills selling
rate e. All of these
17. When Nostro account of the bank is credited later than the payment to the tenderer
of foreign exchange, which of the following rates will be applied?
18. When there is outward remittance and handling of import bills is involved, which of
the following rates will be applied?
19. When there is sale of foreign exchange, but import bills are not handled, which rate
will be applied?
a. clean selling rate b. cheque selling rate c. TT selling rate

d. Bills selling rate e. All of these
20. Why exchange rate for purchase or sale of foreign currency are most unfavourable?
a. Holding cost of currency is high b. bank does not get any exchange commission
c. bank runs the risk of counterfeit currency d. both a & c e. all of these
21. The difference between buying and selling rate quoted by an Authorised Dealer is
called:
a. Dealer‘s margin b. dealer‘s spread c. dealers commission e. none of
these
22. A customer wants to subscribe to a magazine published in Paris. The exchange rate
for draft will be:
a. TT buying b. TT selling c. Bills selling d. Bills buying e. none of
these
23. Your non-resident customer presents a draft in foreign currency for which cover has
already been provided in Nostro account. The rate of exchange to be applied to the
transaction will be:
a. TT buying b. Bills selling c. Bills selling d. TT selling e. none of these
24. Your importer customer has to retire his import bill. The rate of exchange to be
applied will be:
a. Bills buying b. TT selling c. Bills selling d. TT buying e. none of
these
25. You had negotiated an export bill of your customer in May 2013. This bill has been
returned by the overseas buyer for some reasons and the AD has to debit his
customer‘s account with Indian rupees. The rate to be applied will be :
a. Bills buying b. TT selling c. TT buying d. Bills selling e. none of
these
26. On which of the following TT buying rate will not be applied?

a. Payment of DD drawn on the paying bank b. cancellation of outward TT, MT
c. Conversion of proceeds of instruments sent for collection
d. purchase of foreign DD drawn abroad e) all of these
27. Full form of UCPDC is:

a. Uniform contract & practices for documentary credit
b. Universal customs & practices for documentary credits
c. Uniform customs & practices for documentary credits
d. Universal customs & provisions for documentary credits
e. e. All of these
28. For letter of credit transactions in international trade, under UCPDC (ICC publication
600) branches of a bank in different countries are considered:
a. another bank b. units of the samea bank c. associate banks
d. either a or b as per choice of beneficiary
e. either a or c as per choice of negotiating bank
29. If a credit does not indicate whether it is revocable or irrevocable, as per UCPDC 600
it will be treated as:

a. irrevocable b. revocable c. either revocable or irrevocable as per

choice of beneficiary
d. either revocable or irrevocable as per choice of applicant of the credit
e. either a or b as per mutual consent of beneficiary and advising bank
30. An NRI residing in UK has come back to India to settle permanently. Which of the
following account would be opened by him to keep his balance in foreign currency to
earn interest.
a. Resident Foreign Currency account

b. Resident Foreign Currency Domestic account.
c. Foreign currency non resident account.
d. exchange earners foreign currency account
e. All of these
31. Which of the following type of account cannot be opened by a person resident in
India
a.Resident foreign currency account
b. Resident foreign currency domestic account

c. Non resident ordinary account.
d. Exchange earners foreign currency account.
e. All of these
32. What type of account can be opened as a resident in foreign currency
a. Saving bank account, current account ,term deposit account

b. Saving bank, tem deposit account.
c. Current and term deposit
d. saving bank and current account
e. All of these
33. The rate of interest on resident foeign currency deposit is (a) Domestic saving bank
rate on saving bank account. (B). Bank discetion (c). LIBOR linked rate on tem
deposit (d). Bank discretion in case of term deposit.
a. A and c b. b and d c. b and c d.a and d. e. All of these
34. Which of the following cannot carry on the functions of an AuthorizedDealer(AD)

a. Commercial banks b. financial institutions c. RRB/Coop Banks d. None of the
above e. all the above
35. Whose approval is required for appointment of foreign exchange dealer by a bank:
a. RBI b. FEDAI c. IBA d. Discretion of the bank e. Govt of India
36. If a letter of credit and UCPDC have contradictory provisions which of the following
statements will be true in this regard:
a. Provisions of UCPDC will prevail over those of credit
b. Provisions of credit will prevail over those of UCPDC
c. Better of the provisions of UCPDC or credit as applicable to beneficiary

will prevail
d. Better of the provisions of UCPDC or credit as applicable to applicant of
credit will prevail
e. It being a disputed matter the matter will have to be referred to ICC,
Paris
37. RFC account can be opened by a returning Indian where he returned to India
a) On or after April 18 1992 b) before April 18, 1992 c) on or after July18,1992

d) before July 18, 1992.e) All of these
38. To open RFC account , the stay abroad, of returning Indian should be
a)There is no such criteria b) minimum 3 years c) minimum 2years
d) minimum 1 year e) minimum 10 years.
39. Which of the following is not a correct statement regarding Resident Foreign Currency
(Domestic) account:
a) It can be opened by a resident Indian
b) It can be only a current account on which no interest is payable.
c) resident can deposit any type of foreign exchange received
d) FC amount deposited in a particular month to be converted in to rupee by last
day of next month. (e) None of the above.
40. What type of amount in the form of currency notes, bank notes, travellers cheques,
can be deposited in a resident foreign currency domestic account by a resident:
a)acquired by him from an authorized person for travel abroad and represents the
unspent amount thereof
b) acquired by him, while on a visit to any place outside India by way of payment for
services not arising from any business in or anything done in India and by way of
honorarium or gift or
c) acquired by him, from any person not resident of India and who is on a visit to
india as honorarium gift for services rendered or in settlement of any lawful obligation
d) all the above
41. An Exchange Earners Foreign Currency (EEFC) account can be opened as

a)Current account b) saving bank account c) fixed deposit account d) any of these
e) all of these
42. What is the maximum amount that can be deposited in Exchange Earners Foreign
Currency (EEFC) account
a)25% of the exchange earned b) 100% of the exchange earned c) 75% of the
exchange earned d) 50% of the exchange earned e) 10% of the exchange earned
43. Which type of loan can be allowed on the security of the balances in EEFC account a)
rupee loan upto Rs 100 lac b) letter of credit facility c) bank guarantee facility
e) none of these e) all of these
44. What type of amount can be deposited in EEFC accounts (a) realization of export
proceeds from abroad through authorized channels (b) remittance from abroad
representing loan s obtained (c) foreign exchange payment received by domestic

tariff area for supplying goods to units in SEZ

a)a to c all b) a and b only c) a and c only d) b and c only e) all of these
45. On which of the following TT selling rate will not be applied?

a. crystallization of overdue export bills b. crystallization of overdue import bills
c. issue of foreign DD / MT d. cancellation of outward TT / MT
e. both b & d
46. Letters of credit transactions subject to provision of :

a. exchange control manual of RBI b. UCPDC 600 c. UCPDC 500 d. Foreign trade
policy 2013 e. INCOTERMS
47. Which of the following features do/ does not apply to a Transferable Credit?
a. transferable L/c is one which is expressly written to be ‗Transferable‘
b. Transferable L/c can be transferred only once but can be transferred to more
than one parties
c. In a ‗Transferable Credit‘ the first beneficiary has the right to substitute his own
invoice(s) and draft for those of the second beneficiary
d. Transfer of such credit by second beneficiary back to first beneficiary is not
permitted
e. All of these
48. A revolving credit means a letter of credit:

a. Which is available for use in any country
b. covering many shipments up to a particular period of time or a
particular amount or both
c. which can be easily transferred by the beneficiary to his suppliers
d. which allows the beneficiary packing credit in foreign currency
e. all of these
49. A red clause Letter of Credit is one in which

a. the beneficiary can avail pre-shipment finance up to the amount specified in LC
b. negotiation is restricted to a particular bank
c. all clauses are compulsorily printed in red
d. there are certain restrictive clauses as to period of shipment / negotiation of bill
e. all of these
50. A back to back letter of credit is:

a. One on the strength of which another bank‘s guarantee is obtained
b. A second set of fresh LC opened in favour of second beneficiary on the strength of
original LC
c. One backed by the government guarantee
d. A set of two LCs printed on the back of each other
e. None of these
51. A green clause letter of credit is an extension of

a. transferable credit b. confirmed irrevocable credit
c. red clause credit d. revolving credit e. all of the above
52. A claused bill of lading means bill of lading:

a. containing special clauses as required under letter of credit
b. with a clause that shipping company has a right to increase freight

c. giving the importer right to refuse payment of freight if goods are damaged on
board
d. indicating defective condition / packing of goods
e. any one or more of the above
53. The expiry of letter of credit is 15.07.2013. The last date of shipment mentioned in
the LC is 30.06.2013. The shipment was actually made on 17.06.2013 and
documents were presented on 15.07.2013. Choose the best option out of the
following as per provisions of UCPDC 600.
a. The documents should have been presented within 7 days from date of shipment
b. The documents can be accepted as they are presented within the validity of the
letter of credit
c. The documents should have been presented within 15 days from date of
shipment
d. The documents should have been presented within 21 days from date of
shipment
54. PNB received a letter of credit opened by a bank in Germany. It is not in a position to
verify the apparent authenticity of L/C. Which of the following is true with reference
to the L/c as per UCPDC 600?
a. PNB must advise the credit to the beneficiary without
disclosing the facts
b. PNB may elect not to advise the credit and must so
inform the issuing bank without delay
c. PNB may elect to advise the credit to the beneficiary
without recourse
d. Either b or c e. either a or b
55. A letter of credit was issued on 1.8.2013. The bill of lading presented on 10.08.2013
under L/c was dated 25.07.2013. The L/c is silent on this aspect. AD should:
a) Accept the bill of lading, if otherwise in order
b) Not accept a document dated prior to date of L/c
c) Refer the matter to the applicant of L/c
d) Refer the matter to issuing bank
e) e. none of these
56. A manufacturer exporter will prefer:

a)Transferable LC b) irrevocable LC c) irrevocable confirmed LC
d) revocable LC e) All of these
57. As per UCPDC 600, the words ―about‖ or ―approximately‖ used in connection with the
amount of the credit or the quantity or the unit price stated in the credit are to be
construed as allowing a tolerance not to exceed ____% more or less than the
amount, the quantity or the unit price to which they refer
a.10% b. 5% c. 1% d. no variation is allowed e. All of these
58. In a set of documents submitted under letter of credit the date of shipment is
30.03.2013 whereas the insurance policy is dated 3.4.2013. In this case:
a)We may accept the documents provided necessary cover has been provided in the
policy effective from date of shipment
b)We must refuse the documents as it is a discrepancy

c)The date of insurance policy must be changed to be prior to the date of shipment
d)Either b or c
e). none of the above
59. The beneficiary of an irrevocable letter of credit which was advised by us requests us
to add our confirmation. Under the circumstances:
a. Confirmation is added at the request of opening bank and will be done only as per
the arrangement
b. We may do so as confirmation is usual course of business only and there is no
commitment of the bank which adds the confirmation
c. We must add our confirmation as it was advised by us
d. We should decline it as no confirmation is necessary on the irrevocable letter of
credit and only a revocable letter of credit needs confirmation
e. We may do so only after obtaining indemnity from the issuing bank
60. Our bank opened an irrevocable letter of credit and our correspondent bank abroad
negotiated the bills under this LC and got the reimbursement. When the documents
were presented to our importer customer, he refused to pay on the plea that goods
were not as per the contract. In this case:
a. We will verify the goods and take them into our possession
b. We cannot recover the money from the negotiating bank because as per UCPDC
we deal in documents and not in goods and will proceed to recover the amount
from the importer
c. We will request the correspondent bank to pay back the money
d. Either a or b
61. A letter of credit was opened by us stipulating for ‗clean on board bill of lading‘. While
scrutinizing documents under the L/C we find that the notation ‗some packages torn‘
appears on the bill of lading. We should:
a) Accept the bill of lading as it is as per terms of L/C
b)Try to rectify the irregularity with the shipping agent
c)Wait until the ship arrives and verify the goods
d)Immediately on receipt of documents, inform the negotiating bank by telex that
documents are discrepant and they are held at the risk and responsibility of the
negotiating bank
e)Either b or c
62. A letter of credit is opened in US dollars. The insurance document can be in:
a)US dollars only if not otherwise stipulated in the credit b)In any freely convertible
currency c)In Indian rupees only d)in US dollars only e) either b or c
63. As per UCPDC 600, if there is no indication in the credit of the insurance coverage
required, the amount of insurance coverage must be at least _____ value of goods
a) 110% of CIF value b) 110% of FOB value c)100% of FOB value d) 100% of CIF
value e) none
64. My uncle gave me gift of USD 20000. In which type of following accounts it can be
credited?
a. RFC b. RFC (domestic) c. EEFC d. NREe. All of these
65. Which of the following is not correct regarding liberalized remittance scheme?
a. Amount can be remitted for capital as well as current account transactions
b. Maximum amount that can be remitted in a financial year is restricted to USD

250000
c. Remittance for gift and donation will be within USD 250000 permitted under LRS
d. Bank can allow advance to a resident individual for making remittance under this
scheme
e. None of these
66. A FCNR (B) deposit has been made for one year. Interest compounding will be done
at the interval of ______
a. Monthly b. quarterly c. half yearly d. after 180 days e.no compounding
67. Which of the following type of accounts can be opened only as fixed deposit?
a. NRO account b. NRE account c. FCNR account d. both NRE & FCNR
e. none of these
68. What type of exchange rate is applied when foreign currency funds from FCNR (B)
account are converted to NRE saving account:
a.Bills buying b. TT buying c. TT selling d. Bills selling e)none of these
69. For outward remittance for medical expenses, estimate from the doctor or hospital is
required if the remittance is more than USD_______
a.1 lac b. 5 lac c. 10 lac d. none of these as it is required in all casese.
e. All of these
70. What is the maximum amount of inward remittance that can be done by a resident
individual?
a. USD 1 lac b. USD 5 lac c. USD 10 lac d. none as there is no limit
e. All of these
71. NRE account cannot be opened in which of the following currencies?

a.Indian rupees b. USD c. Euro d. both b & c e. none of these
72. RFC account can be opened in which type of following accounts?

a.Saving b. current c. fixed deposit d. Both a & b e.any of these
73. Who can open RFC account

a.NRI returning to India after staying abroad for a minimum period of 1 year
b.Any NRI who had opened NRE or FCNR account with the bank
c.Any resident individual
d. all of these
e. none of these
74. In a NRE account, which of the following cannot be done by power of attorney holder?
a. All local payments in rupees including payments for eligible investments &
remittance outside India of current income in india of the non-resident individual
account holder, net of applicable taxes to the account holder himself
b. Repatriate outside India funds in the account other than to the non-resident
individual account holder
c. Make payment by way of gift to a resident on behalf of the non-resident account
holder & transfer funds from the account to another NRO account
d. Both b & c e. none of these
75. FCNR B account can not be opened in which of the following currency?
a.US dollar b. Australian dollar c. Canadian dollar d.none of these e. all of these

ANSWERS
Forex Business and Non-Fund based Business, Foreign Inward Remittances
1 D 16 A 31 C 46 B 61 D
2 C 17 B 32 A 47 D 62 A
3 C 18 D 33 C 48 B 63 A
4 B 19 C 34 D 49 A 64 B
5 D 20 A 35 D 50 B 65 D
6 D 21 B 36 B 51 C 66 D
7 E 22 B 37 A 52 D 67 C
8 C 23 A 38 D 53 D 68 B
9 D 24 C 39 C 54 D 69 A
10 D 25 B 40 D 55 A 70 D
11 C 26 D 41 A 56 C 71 D
12 A 27 C 42 B 57 A 72 E
13 B 28 A 43 D 58 A 73 A
14 A 29 A 44 C 59 A 74 D
15 D 30 A 45 E 60 B 75 D
Information Security, CBS, ADC,
CYBER-LAW, e-banking, RTGS/NEFT, CTS, etc.
1. What is Information Security?

a) Guarantee a certain level of availability of services
b) Guarantee the integrity of the data exchanged and stored
c) Guarantee the confidentiality of the data exchanged and stored
d) Guarantee the authenticity of the user
e) All the above
f) Only a to c.
2. Daily POS(Point of Sale) transaction limits for Debit Cards for normal card is
a)Rs 25000/-
b)Rs 40000/-
c)Rs 50000/
d)Rs 75000/-
e)Rs 60000/-
3. What are the Components of IT Security ?
a) Firewalls
b) Intrusion Detection Software
c) Antivirus Software
d) Updated OS and Applications
e) Continual education for staff and users
f) User cooperation and compliance
g) All the above
h) Only a to d
4. What are the Security Threats?
a) Malware-viruses, worms, trojans, spyware
b) Security patches not applied
c) Hacking and network scanning
d) Social engineering

e) Chat and Instant Messaging software

f) Weak Passwords
g) Unawareness, carelessness
h) All except d
i) All the above
5. What can you do for IT Security?
a) Report Incidents (helpdesk)
b) Backups
c) Use/Update antivirus software
d) Patch OS and Applications
e) Don‘t use P2P file sharing software
f) Lock the Computer when not in use
g) Don‘t reveal your password to anybody
h) Don‘t reveal confidential information
i) All the above
j) Only a to c
6. Examples of strong Passwords are:

a) B@nK!23$
b) abc123
c) B@NgaL0r5
d) P0s$1biliTy
e) V!j@yAA!
f) All the above
g) All except b
7. What can you do for Internet Banking Security?
a) Set a strong login password.
b) Check for the URL and make sure it starts from https://
c) Install a antivirus application to protect against virus
d) all the above
e) Only a and c
8. What can you do for Mobile Banking Security?
a) Set a pass code for your mobile
b) Avoid using public Wi-Fi to access Mobile Banking
c) Turn off Bluetooth while using Mobile Banking
d) Always use trusted Mobile Banking Application
e) All the above
f) Only a and d
9. What is https?
a) hyper text transfer protocol Secure
b) higher text transfer protocol Secure
c) hyper type transfer protocol Secure
d) hyper text transaction protocol Secure
e)None of the above
10. What is Data Cleaning ?
a) Data Cleaning is the process of detecting and correcting (or removing) corrupt
or inaccurate records from a record set, table, or database.
b) Used mainly in databases, the term refers to identifying incomplete, incorrect,
inaccurate, irrelevant parts of the data and then replacing, modifying, or
deleting this data.
c) All the above
d) Only a

11. What is the Finacle menu for mobile banking registration?

a) SMSREG
b)MPAYREG
c) MOBILEREG
d)MPYREG
e) none of above
12. What is the enter option for adding beneficial owner details in CUMM?
a) B
b) #
c) O
d)BO
e) none of above
13. What is the type of customer to be selected from the list of MIS CODEs for opening
real estate agent A/C in CUMM?
a) RESTA
b) Individual
c) agent
d) business
e)none of the above
14. What is the type of customer to be selected from the list of MIS CODEs for opening
association, clubs, trusts, group A/Cs in CUMM?
a) ACTGO
b) non-individual
c) corporate
d)ATGO
e) none of above
15. What is the scheme code for Opening of ‗SB-Subsidy A/c‘:
a) SB198 b) SB199 c) SB197 d) none of above e)SB196
16. ADC-V-NET Banking: what is the daily funds transfer limit for retail and corporate
customers?
a) 2,00,000/-; 5,00,000/-
b)3,00,000/-; 10,00,000/-
c)5,00,000/-; 15,00,000/-
d)400000/ ;1200000/
d) None of above
17. The maximum amount that can be sent under NEFT is __________.
a. 200000 b.100000 c. no such limit d. 10 lakhs e.500000
18. The missed call service of our Bank is called

a. Phone Banking
b. Free Buzz Service
c. Freebus Service
d. Free Bie Service
e.none of the above
19. How many times a customer can use the missed call service of our Bank in a day?

a) 1 b) 2 c) 3 d) 4 e)5
20. The per day transaction limit under V-mobile banking is Rs._______
a) 10000 b) 25000 c) 50000 d) no limit e)40000
21. Expand MMID (number) in V-Mobile banking?
a) MOBILE MONEY IDENTIFIER
b) MONEY MOBILE IDENTIFIER
c) MOBILE MONEY INTERDAY
D)MOBILE MASS IDENTIFIER
D)NONE OF ABOVE
22. What is phishing?

a) It is technique of pulling out confidential information from the account holders by
deceptive means
b) asking you for your account information
c) searching through the trash cans on the computer center for discarded output (the
output should be shredded, but frequently is not
d) b & c
e) a & b
23. Information Technology Act, 2000 aims

a) to provide the legal infrastructure for e-commerce in India
b) to provide for the legal framework so that legal sanctity is accorded to all
electronic records and other activities carried out by electronic means.
C)Resoolving network issued
d)only a & b
e) all the above
24. A software that restricts the access to and from a network and is designed to protect
from outside intrusion is called:
a) firewall technology
b) network protection technique
c) virus protection technology
d) total protection technique
e) morphing
25. In computer software, the term ‗Morphing‘ refers to which of the following:
a )animation technique in which one image is gradually turned into another
b )data conversion technique by way of use of codes
c) conversion of digital picture to analog images
d )a soft ware that saves a network from intrusion
e )software that links one server to another

26. What is the cyber crime called scavenging?

a) searching through the trash cans on the computer center for discarded output
(the output should be shredded, but frequently is not)
b) It is technique of pulling out confidential information from the account holders
by deceptive means.
c) asking you for your account information
c) all the above
d) a & b
27. A Computer programme, which could infect other programmes or data is called:
a) system software
b) application software
c) cyber crime
d) virus
e) computer fraud
28. The term ―SWIFT‖ stands for which of the following:

a) society for world-over international financial transfer
b) society for world-over inter-bank financial transfer
c) society for worldwide interbank financial telecommunication
d) society for worst international financial terrorism
e) social world-wide interesting financial telecommunications
29. The SWIFT system is used for which of the following purposes:
a) data transmission
b) customer information sharing
c) financial transactions transmission
d) trading on stock exchange
30. Which of the following is the system that makes image processing for inter-bank
payment purpose:
a) electronic clearing system
b) real time gross settlement
c) cheque truncation
d) electronic funds transfer
e) all the above
31. What is IMPS?

a) International Merchant payment Service.
b) Inter bank Multiple payment Service.
c) Immediate Payment service.
d) international payment services
e) none of above
32. National Unified USSD Platform [NUUP] based mobile banking service, wherein the
customers can carry out basic banking transactions by dialling a common number
_____
a)*89#
b)*99#
c)*100#
d)*101#

e)*79#
33. IMPS is provided for electronification of retail payments by whom?
a) RBI through RBI server
b) SBI
c) National Payment Corporation of India(NPCI) through NFS switch
d)IDBI
d) none of above
34. To get MMID number our bank customers have to type MMID and send SMS to
a) 9223173922
b) 9223173920
c) 9223173923
d)9223163923
d) none of above
35. The clearing process which sends only images of instruments and not cheques to the
payee Bank is called
a) national clearing
b) ECS
c) EFT
d) Cheque truncation
e) NOA
36. e-FD can be opened for minimum amount of Rs ______ using Vnet banking.
a)Rs 1000/-
b)Rs 10000/-
c)Rs 5000/-
d) Rs 25000/-
e)Rs 20000/-
37. In Cheque truncation system clearing, the physical cheque is kept with the ------
a) presenting banker
b) drawee bank
c) beneficiary
d) repository
e) NOA
38. In Cheque truncation system clearing, the number of images that will be sent to
paying bank for each cheque is
a) 3
b) 2
c) 1
d) 4
e) NOA
39. Which of the following deposits vcan be opened in our bank through net banking
a)VSU
b)RD
C)FD
d) Viaya 444

40. In Cheque truncation system clearing the TRUNCATED CHEQUE means

a)Cheque for which the image has been sent for clearing
b)Image of the Cheque
c)an authenticated copy of cheque
d)Cheque which has been returned back to the presenter
41. Expand USSD-

a)Unified super strruture data
b) Unstructured Supplementary Services Data
c)united Supplementary Services Data
d) Unique Supplementary Services Data
e)Unique Supplementary Structure Data
42. V Platinum Credit Cards has the facility of
a) cash withdrawal at any of our branches
b) cash withdrawal through interconnected ATMs of VISA/MasterCard & our ATMs
c) Payment in instalments with a minimum of 25% upto 95%
d) Insurance coverage against fraudulent use due to loss of card and 24 hours
personal accident insurance.
e)all the above
f) none of above
43. V Platinum Credit Card Minimum card limit is

a) Rs 1 lakh
b) Rs 2 lakh
c) Rs 3 lakh
d) Rs 5 lakh
e) Rs 4 lakh
44. Viaya bank has a tie up with _________for on line trading.

a)Reliance capital.
b) ICICI Capital
c) Kotak Bank
d) IDBI Capitals
e)Edelweiss
45.
The minimum transaction amount is Rs ____using USSD Platform is
a) Rs 1
b) Rs 2
c) Rs 3
d) Rs 5
e) RS 4
46. V Platinum Credit Card- Cash withdrawal maximum limit

a) 50% of the card limit or 50,000/- per day (add on cardholder 5,000/-)
b) 50% of the card limit or 1,00,000/- per day (add on cardholder 5,000/-)
c) 50% of the card limit or 75,000/- per day (add on cardholder 5,000/-)
d)50% of the card limit or 60000/- per day (add on cardholder 3,000/-)
e) none of above
47. V Privilege Credit Card- will be issued starting with card number
a) 9000

b) 8000
c) 1000
d) 4089
e)5089
48. Vijaya Bank has launched TAB banking services under the brand name ___________
a)V-TAB
B)V-APP
C)VIJAYA -TAB
d) V-ABACUS
e)V-QUICK
49. Missed call service to avail services of ABACUS Tab Banking can be made maximum
_____times a day
a)5
b)2
c)1
d)3
e) any number of times
50. What is the minimum term deposits criteria for V Privilege Credit Card (the limit fixed
is not more than 90% of the deposit)?
a) more than ` 20000 for above three years
b) more than ` 10000 for above five years
c) more than ` 25000 for above three years
d) more than ` 50000 for above three years
51. What is the Finacle menu to issue gift card?

a) GIFTCARD
b) GIFTCRD
c) CARD
d) GCARD
52. What is the minimum amount in rupees for issue of GIFTCARD?

a)500
b)5000
c)1000
d)10000
e)2000
53. Customers can dial _______________ to avail services of ABACUS Tab Banking.
a) 9243210480
b) 9343210480
c) 9243210490
d) 9343210080
e) 9243220480
54. What is the maximum amount in rupees for issue of GIFTCARD ?

a)50000
b)25000
c)100000

d)10000
e)30000
55. What is the maximum amount in rupees for issue of GIFTCARD to non-customers who
provide photo-id and address proof?
a)50000
b)25000
c)49500
d)10000
e)none of the above
56. What is the validity period of GIFTCARD in years from date of activation?
a)3
b)2
c)1
d)5
e)none of the above
57. Customer opting to avail TAB Banking will contact the bank through the following
modes
a) Missed Call Request
b) visiting branch
c)Contacting Branch Manager
d) Contacting RO
e)Contacting RACPC
58. V-FeeHive is used for collection of

a) For collection of income tax
b) For collection of school fee.
c) For collection of cash from petrol pumps
d) For collection of credit card dues
e) None of the above.
59. What is the type of debit card issued to customers who use it internationally/have
used atleast once in abroad?
a)EMV based chip card
b)LMV based chip card
c)VISA based chip card
d)Master based chip card
d)none of above
60. Rate of Interest on accounts under PPF 1968 Scheme w.e.f. 01.04.2014 is _____
a)8.1 %
b)8.2%
c)8.5%
d)8.7%
e)8.6%
61. What is a malware?

a) virus,worms,trogens
b) malicious software, spyware
c) code,

d)comes with attachments, rogue embedded links

e)spam
f) all the above
g) only a and b
62. The maximum amount that can be transferred per day using NUUP is
a)Rs1000/-
b)Rs1500/-
c)Rs 2000/-
d)Rs 2500/-
e)Rs 3000/-
63. Business Development Campaign for Demat & Trading Accounts launched from
02.09.2014 to 21.10.2014 to cnvass ________ accounts.
a)900 accounts
b)850 accounts
c)840 accounts
d)875accounts
e)850 accounts
64. ICEGATE payment portal is used for payment of
a)Custom duty
b)Income tax
c) Sales tax.
d) VAT
e)None of the avove
65. What type of problem/s the malware can create?

a) stealing data
b) for harming or compromising information technology assets
c) only b
d) all the above
e)none of the above
66. WHAT ARE THE DOCUMENTS TO BE SENT TO DIT FOR re-imbursement /CLEARING
YOUR BRANCH ADJUSTMENTS, related to local purchase of I T items?:
a) BRANCH ADJUSTMENT COPY.
b) ORIGINAL INVOICE/BILL
c) 3 COMPETITIVE QUOTATION FROM VENDORS.
d) SANCTION LETTER /APPROVAL COPY FOR PURCHASING OF ITEMS WITH
PROPER JUSTIFICATION FROM RO/HO.
e) CAS 1 FORM ALONG WITH ITEM SL NO AS PER IT ASSETS IN BRANCH.
f) all the above
67. What is the Finacle menu to issue DEBIT card?

a) DEBITCRD
b) DEBITCARD
c) CARD
d) DCARD
e)none of the above
68. After receiving the application for telebanking the branch has to enter the ansrwer to
the secret questions providedby the applicant in the application form in
_____________ menu in finacle

a)TBANK
b)TELE
C)TELEBANK
d)TELEBK
e)none of the above
69. V-tele banking works with the help of
a)ISVR
b)IRVS
C) IVRS
d)ISVR
70. INFORMATION SECURITY THREAT- WHAT IS DOXING?

a) PROCESS OF GATHERING
b) PROCESS OF RELEASING PERSONALLY IDENTIFIABLE INFORMATION
c) ALL THE ABOVE
d) ONLY B.
e) NONE OF THE ABOVE
71. The merchant should be a customer of our bank for atleast _____ months for being
enrolled.
a)6 month
b)3 month
c)9 month
d)12 month
e)8 month
72. Debit Card Annual charges is Rs ___ + applicable service tax from April 1,
2015
a)Rs 95
b)Rs100
c)Rs75
d)125
e)110
73. In case the cardholder does not receive OTP SMS in his registered mobile no, he/she
has the option to generate an OTP by sending an SMS to
a) 9213738927
b) 9212738927
c) 9312738927
d) 9212738972
e) 9212739827
74. Expand-IVRS
a)inter voice reactive system
b)interactive voice response system
c)inner voice responce system
d) interactive voice repeat system
e) interactive voice response syndrome

75. RMs at regional offices are vested with powers to sanction / approve the daily upper
limt of fund transfer through V Net for corporate customers up to ________ .
a)Rs 2000000/-
b)Rs 2500000/-
c)Rs 3000000/=
d)Rs 3500000/-
e)Rs 4000000/-
ANSWERS
1 E 11 B 21 A 31 E 41 B 51 B 61 F 71 B
2 C 12 B 22 E 32 B 42 E 52 C 62 A 72 B
3 G 13 A 23 D 33 C 43 B 53 A 63 C 73 B
4 I 14 A 24 A 34 A 44 D 54 A 64 A 74 B
5 I 15 B 25 A 35 D 45 D 55 C 65 D 75 B
6 G 16 C 26 A 36 B 46 A 56 C 66 F
7 D 17 C 27 D 37 A 47 D 57 A 67 A
8 E 18 B 28 C 38 A 48 D 58 B 68 C
9 A 19 C 29 C 39 C 49 D 59 A 69 C
10 C 20 C 30 C 40 A 50 A 60 D 70 C
Non interest income, mutual funds, insurance business, merchant

banking and capital market operations,
Government Business / Tax related
1. Agency Commission receivable by Banks for transactions done on behalf of Government in

case of Receipts in Physical mode ( eg Opening of PPF a/c ) is
a) Rs 45/- per transaction
b) Rs 60/- per transaction
c) Rs 50/- per transaction
d) Rs 12/- per transaction
2. Agency Commission receivable by Banks for transactions done on behalf of Government in

case of Receipts in electronic mode ( eg Installment of PPF a/c through Net Banking ) is
3. Agency Commission receivable by Banks for Pension Payments per transaction is

4. Agency Commission receivable by Banks for Payments other than pension is

a) 9 paise per transaction

b) Re 1/- per transaction

c) 5 paise per transaction
d) 5.5 paise per transaction
5. Which of this type of customer can now open PPF a/c

a) HUF
b) AOP (Association of Person)
c) Individual on his behalf and on behalf of a minor of whom he is the guardian
d) NRI
e.) a & c
6. The PPF Scheme has come into force from

a) 01.07.1968
b) 01.02.1998
C) 01.07.1978
d) 01.08.2008
7. What is the minimum and maximum amount that can be deposited in PPF A/C in a financial
year
a) Rs. 500/= and Rs.100000/=
b) Rs. 100/= and Rs.70000/=
c) Rs. 500/= and Rs.70000/=
d) Rs. 500/= and Rs.150000/=
e) Rs. 200/= and Rs.100000/=
8. In case of PPF a/c, it can be transferred from

a) One Bank to another Bank
b) One Bank to Post office & vice versa
c) One Branch to another Branch of the same bank
d) Only a & c
e) a to c
9. In case the payment of proceeds of term deposit for an amount of Rs 20000 or more are
made in cash , then the penalty is
a) amount equal to sum of the payment
b) amount equal to sum of the payment plus interest at 18% pa
c) Imprisonment ranging from 3 months to 7 years
d) a & c
10. In case of failure to pay tax the penalty is

a) amount equal to sum of the payment
b) amount equal to sum of the payment plus interest at 18% pa
c) Imprisonment ranging from 3 months to 7 years
d none of above
11. In case of delay in filing TDS return the penalty is

a) Rs 100 per day
b) Rs 200 per day
c) Rs 500 per month maximum of Rs 5000
12. Normally Banks are issuing Bank guarantee for a maturity period of not more than 10
years, but in case it is needed to issue Bank Guarantee for a longer period than 10 years

a) Permission is required from IBA

b) Permission is required from RBI
c) Permission is required from respective Board of Directors
d) No BG can be issued for more than 10 years
13.Gilt edged market deals in:

a)Worn currency notes
b) Bullion & Gold
c) Govt. securities
d) Corporate bonds
e) all kinds of capital market securities
14. Ways and means advances of Central Govt. are payable within a period of
a) 10 days
b) 18 days
c) 15 days
d) 20 days
e)14 days
15. Ways and means advances of State Govt. are payable within a period of
a) 10 days
b) 18 days
c) 15 days
d) 20 days
e) 14 days
16.Certificate of Deposit is issued by banks .Which statement is correct

a) Minimum Rs 1 Lac and maximum Rs 100 Lac
b) Minimum Rs 1 Lac and maximum Rs 500 Lac
c) Minimum Rs 1 Lac and above with no maximum , but in multiple of Rs 1 Lac
d) Minimum Rs 1 Lac and above with no maximum , but in multiple of Rs 10000
e) Minimum Rs 1 Lac and above with no maximum , but in multiple of Rs 50000
17.Certificate of Deposit issued by banks can have a maturity period of

a) 15 days to 12 months
b) 15 days to 6 months
c) 15 days to 90 days
d) 7 days to 24 months
e) 7 days to 12 months
18.Commercial Paper can be issued by

a) Commercial Banks
b) Only Public Sector Banks
c) Companies , Private Dealers, and all India Financial Institutions
d) Only Commercial banks having branches abroad
e) None of the above are correct
19.The duration for issuance of Commercial paper is

a)7 days to 3 months
b) 7 days to 6 months
c) 7 days to 9 months
d) 7 days to 12 months
e)14 days to 12 months

20.For a company eligible to issue Commercial Paper which of the following conditions are
required to be fulfilled.
i. the net worth of the company should be at least Rs 4 crore
ii.the company should have been sanctioned working capital limit by any bank/financial
institution
iii the loan accounts the company should be classified as classified as standard assets
iv it should have a credit rating of at least A2 by an approved rating agency
a) i to iv all
b) i,ii,and iv
c) i,iii and iv
d) I,ii,and iii
e) Only iv
21. The minimum amount of and multiple of commercial paper should be

a) min Rs 1Lac , multiple of Rs 1 Lac
b) min Rs 1Lac , multiple of Rs 5 Lac
c) min Rs 5 Lac , multiple of Rs 5 Lac
d) min Rs 5 Lac , no requirement of any multiple
e) min Rs 1 Lac, no multiple is required
22. to have the credit card business , the banks should have minimum net worth of
a) Rs 100 Cr
b) Rs 200 Cr
c) Rs 300 Cr
d) Rs 250 Cr
e) Rs 500 Cr
23.Which of the following terms represent `one basis point`:

a) one percent
b) one tenth of one percent
c) one hundredth of a percent
d) one hundred percent
e) one thousandth of a percent
24.When RBI changes the CRR , the effect will be

a) reduction in CRR increases the liquidity position within Indian Banks
b) increase in CRR increases the liquidity position within the Indian Banks
c) increase in CRR does not affect the liquidity position
d) decrease in CRR does not affect the liquidity position
e) increase or decrease in CRR does not affect the liquidity position of Bank
25.When Repo rate is increased by RBI, it leads to,

a) reduction of cost to borrowers on loans from Banks
b) increase in cost of loans to borrowers from banks
c) reduction in cost of borrowing by Banks from RBI
d) increase in cost of borrowing by banks from RBI
e) none of the above are correct
26. Interest spread means:

a) surplus of interest earned over interest expended.
b) interest earned on loans less the provisions
c) interest earned on loans and investments less provisions

d) a to c
27.Interest payable by RBI on amount of CRR balances by banks is

a) 4% p.a
b) 5% p.a
c) Repo rate
d) Reverse Repo rate
e) No interest is payable
28.Calculation of NAV of mutual funds is done on

a) Monthly basis
b) Quarterly basis
c) Half yearly basis
d) Yearly basis
e) daily basis
29. what is the periodicity of submitting Form15G/15H by the branch to income tax deptt.
a) within 7 days of the succeeding month
b) within 15 days of the succeeding month
c) within three months of the succeeding month
d) within six months days of the succeeding month
e) on annual basis before 30th April
30.Banks are required to get statutory audit done is as per requirement of

a) RBI act
b) Companies act 1956
c) Banking Regulations Act
d) NI act
31.Service tax should be deposited with the Govt.by

a) 15th day of the next month
b) 5th day of the next month
c) 10th day of the next month
d) 7th day of the next month
e) 25th day of the next month
32.A bond giving the investor the option to get the value of bond equal to an equity share ,
at a predetermined exchange price , is called:
a) Zero coupon bonds
b) Coupon bonds
c) convertible bonds
d) commercial Paper
e) redeemable bonds
33.There are certain financial instruments whose prices derived from the price of the
underlying currency or interest rate of or stocks etc., we call it as :
a) Venture Capital funding
b) Factoring
c) Securitization
d) Leasing
e) Derivatives

34.An option that can be exercised any time during any time during its validity period , is
termed as
a)put option
b) call option
c) American Option
d) European option
e) none of above
35. An option where the holder can exercise his right on the expiry date , is termed as
a) put option
b) call option
c) American Option
d) European option
e) none of above
36.Red Herring Prospectus is issued by _______ , _______

a)Banks , to raise funds from the Overseas Market
b)Capital from Company, to raise funds through a Commercial Paper
d) Company , to raise Capital from Market under Book Building process in which the
price of the share is not disclosed
f) None of the above
37.The term ESOP stands for

a)effective system of projects
b)efficient servicing of promises
c)employees` service option projects
d)employees stock option plan
38.Narrow money is the term in Monetary aggregates which is represented as

a) M1
b) M2
c) M3
d) M4
e) M5
39.when an existing non profit organization is converted into a for profit company , the
process is known as
a)Dematerialization
b)Demutualization
c)Re-Materialization
d)Re-mutualization
e)none of the above
40.All the sales practically becomes cash sale to the seller in respect of:
a)Buyer`s Credit
b)Leasing
c) Factoring
d)Acceptance Credit
e) Option

ANSWERS
Q No Ans Q No Ans Q No Ans Q No Ans

1 C 11 b 21 c 31 b
2 D 12 c 22 a 32 c
3 D 13 c 23 e 33 e
4 D 14 a 24 a 34 c
5 C 15 e 25 c 35 d
6 a 16 c 26 a 36 c
7 d 17 e 27 e 37 d
8 e 18 c 28 e 38 a
9 a 19 d 29 a 39 b
10 c 20 a 30 c 40 c
MONITARY POLICY, RISK MANAGEMENT, BASEL I/II/III, NEW

COMPANIES ACT AND FINANCIAL MATTERS,
BANKING SYSTEM IN INDIA
MONETARY POLICY
1. Which of the following is a Reference Rate of RBI ? b

a)Repo rate b)Bank Rate c)Reverse Repo Rate d)CRR e) none of the
above
2. What is the current Statutory liquidity Ratio ? a
a)21.5% b)22% c)23% d)23.5% e) none of the above
3. RBI charges penalties based on which of the following rates ? b

a)Repo Rate b)Bank Rate c)Reverse Repo Rate
d)MSF rate e) none of the above
4. What is the current Marginal Standing Facility Rate of RBI ? b

a)7.25% b)8.5% c)8.5% d)9.0% e) none of the above
5. The Priority Sector targets are now linked to d

a) Adjusted Net Bank Credit b) Net Bank Credit
c) Credit Equivalent of off Balance Sheet exposure
d) Adjusted Net Bank Credit or Credit Equivalent of off Balance Sheet exposure
whichever is higher.

e) None of these
6. What is rate of growth of GDP for the year 2015-16 projected by IMF chief Ms. c
Christiane Lagarde
a) 6.25% b) 6.50% c) 7.5% d) 7.2% e) none of the above
7. What is the inflation target for the year 2015-16 of RBI ? b

a) 8% plus or minus 2 % b) 6% plus or minus 2 % b)
c) 7% plus or minus 2 % d) 5% plus or minus 2 % e) none of the
above
8. Transmission of monetary policy means …….. a

a)Loan interest rate is decreased in accordance with increase in repo rate by RBI
b) Loan interest rate is increased in accordance with decrease in repo rate by RBI
c) Loan interest rate is decreased in accordance with decrease in repo rate by RBI
d)deposit rate is increased in accordance with decrease in repo by RBI e) none of
the above
9. As per the Foreign Trade Policy of 2015-20 what is targeted export in 2020 ? c
a)USD 800 bio b) USD 900 bio c) USD 1000 bio d)
USD 500 bio e) none of the above
10. About willful defaulter which o fthe following is not true ? d

a) NPA of 25 lakhs and above can be a willful defaulter b) Principal & Co-
borrowers can be willful defaulter c) Guarantor of NPA can be made
willful defaulter b) Both Borrower and Guarantor can be made willful
defaulter e)none of the above
11. Who is the world Bank President ? c
a)Jim Yong Kim b) Christiane Lagarde c)Banki Moon d) Tony
Fernandez e) none of the above
12. What of the following is the major risk factors which affects the growth of economy- e
a) CAD (Current A/c Deficit) is highest
b) Financing of CAD exposes the economy to the risk of sudden stop and reversal of
capital flows
c). Revival of investments
d). Inflationary pressures.
e)All the above
13. The rate of interest for Senior Citizen Saving Scheme 2004 is- --------- d
a)6.00% b)7.50% c)8.50% d)9.20%
14. The r.o.i for PPF scheme is- ------- c

a)6.00% b)7.50% c)8.70% d)3.00%
15. How many components constitute the Forex Reserve / c

a)5 b)6 c)4 d)3 e) none of the above
16. As per the monetary policy 2013-14 announced by RBI in May 2013, the loan limit a
for dealers of fertilizers, cattle feed, agriculture implements, seed, pesticides etc
increased from- 1Crore to --------
a)5 crores b)3 crores c)10crores d)7 crores

17. Under the Liberalised remittance scheme of RBI what is the what is the maximum c
remittance per year for individuals ?
a) 1.25 lakhs b)2 lakhs c)2.5 lakhs d)3 lakhs
18. As per RBI for considering the Rs 5000 OD facility for JanDhan customers under a
priority sector, what is the maximum income criteria?
a)Rs. 50,000/- in rural areas and Rs. 1,00,000/- in non-rural areas b)Rs.
60,000/- in rural areas and Rs. 1,20,000/- in non-rural areas c) Rs.
70,000/- in rural areas and Rs. 1,25,000/- in non-rural areas d) As per the
monetary policy Rs. 75,000/- in rural areas and Rs. 1,50,000/- in non-rural areas
e) none of above
19. GOI has set up Price Stabilisation Fund for stabilising inflation. What is the Fund a
size?
a)500 Crores b)600 crores c)700 crores d)800 crores e) none of the
above
20. What is the GDP for the year 2013-14 at constant prices of 2011-12 ? a
a)Rs 89.2 lakh crores b) Rs 99.2 lakh crores
c)Rs 109.2 lakh crores d)Rs 82.9 lakh crores e) none of the above
21. Name the Chief Economic Advisor b

a) K.K. Vohra b) Arvind Subramanian
c) G Padmanabhan d) K.R. Kamath e) none of the above
22. Who is the Vice Chairman of NITI AYOG ? c

a)Arvind Subramanian b) Pulak Kumar Sinha
c) Arvind Panagaria d) K.R. Kamath e) none of the above
23. Credit guarantee scheme for housing loan for weaker section will cover housing c
loans of
upto -------lakh.
a)10 lakh b)25 lakh c)5 LAKH d)2 lakh
24. Currently the GDP is calculated by the CSO at what rate of the following ? d
a) Constant prices b) Market prices
c)Mixed prices d)Start Date Prices e) none of the above
25. Under the new base year of GDP calculation what was the growth rate e
for the year a2013-14?
a) 4.7% b) 6.9%
c) 5.5% d)7.5% e) none of the above
ANS : MONETARY POLICY

1 b 11 A 21 b
2 a 12 E 22 c
3 b 13 D 23 c
4 b 14 C 24 b
5 d 15 C 25 b
6 c 16 A
7 b 17 C
8 c 18 B
9 b 19 C
10 e 20 B
NEW PRIVATE BANKING LICENSE AND GUIDELINES
1. As per Draft Guidelines for issuing of license to new banks in private sector Entities/ a
groups in private sector/ Public sector/ NBFC are eligible to set up a bank through non
operative financial holding co (NOFHC) which should have Minimum track record of --
-- years
2. The minimum paid up capital is- b

a)100 Crores b)500 crores c) 250crores d)
300crores e) none of the above
3. Entities having ---- or more income/ assets/ both from real estate constructions for c
the last three years are not eligible.
a)15% b)25% c)10% d)50%
4. The validity period of in principle approval by RBI is extended from- 1Year to a

a)18 Months b)24months c) 36months d) 60months e ) none of the
above
5. The NOFHC shall hold minimum ------- of the paid up capital for the period of 5 years b
from the date of license.
a)25% b)40% c)30% d)33% e) none of the above

6. The aggregate non-resident shareholding shall not exceed- ---- for 5 years c
7. No non resident holder will be permitted to hold more than ----- of the paid-up capital. b
a)15% b)5% c)49% d) 50% e) none of the above
8. At least ------- of the directors of NOFHC should be independent directors d

9. At least ------- of the branches should be opened in the unbanked rural centers ( with a
population upto 9999 as per latest census)
10. Should comply with ---------- Sector Lending target and sub target as applicable to a
existing domestic banks.
a)priority b)Non-priority c)Export d)all the above e) none of the
above
11. No single entity or group (other than NOFHC) shall have shareholding or control in c
excess of ------- of the paid up capital.
a )25% b)13% c)10% d) 12% e) none of the above
12. Bank shall have minimum capital adequacy ratio of – ------ for first three years d
13. NOFHC shall not be permitted to set up any new financial services/ Mutual funds for at a
least ------- years from the date of license.
a)3 b)5 c)10 d) 7 e) none of the above
14. The formation of new banks in Private sector was announced by finance minister a
during budget speech in
a)2010-2011. b)2011-2012. c)2009-2010 d)2013-2014 e) none of the
above
15. Only entities or group in private sector that are owned and controlled by --------- are a
eligible to promote the bank.
a)residents b)nonresidents c) both a& b d) Companies e)none of
above
ANS : NEW PRIVATE BANKING LICENSE AND GUIDELINES
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A B C A B C B D A A C D A A A

COMPANIES ACT 2013
As per new Companies Act 2013 passed by govt answer the following ;
1. The limit on maximum no of members in case of pvt.ltd company increased c
from 50 to------
a)100
b)150 a
c)200
d)250
2. The concept of following new entities were introduced c

a)one person company
b)small companies
c)both a and b
d) LLP e) none of the above
3. Paid up capital is not less than ---------- lakhs in case of public companies d
a)10
b)1
c)25
d)5
4. Paid up capital is not less than ---------- lakhs in case of private companies b

a)10
b)1
c)25
d)5
5. The minimum number of directors in case of private ltd company is---- b
a)4
b)2
c)3
d)20
6. The minimum number of directors in case of public company is----- c
a)4
b)2
c)3
d)20
7. The maximum number of directors in case of private ltd company is increased from a
12 to-------
a)15
b)2 0
c)100
d)20
8. At least ------- of the directors of a company should be women directors d
a)3 b)4 c)5 d d)1 e) none of the above
9. At least ------- of the board should have independent directors for a company a
a)1/3rd b)1/4th c)2/3rd d d)1/5th e) none of the above
10. AS PER NEW COMPANIES ACT CSR MEANS b

a) Company social response
b) Corporate social responsibility
c) Company society responsibility
d) Corporate society response
11. As per new companies Act a minimum of ----- percent of ave net profit of previous c
three years to be sent for CSR activities.
a)5
b)4
c)2
d)3
12. As per new companies Act following are the criteria for a company to be eligible for d
CSR activities.
a)Net worth of 500 crores& above
b)Turn over of 1000 crores&sbove
c)Net profit of 5 crore& above
d)all the above
13. Which of the following entities are having got RBI License undergoing completion of d
due-diligence for opening bank

a)IDFC LTD
b)Bandhan financial services pvt ltd
c)India post
d)Only a & b
14. As per new companies Act following are criteria for a listed company to appoint d
auditors..
a)Audit firm as auditor should not be more than two terms of 5 consecutive years
b)An individual as auditor for not more than one term of 5 consecutive years
c)The limit of maximum number of companies as auditor is 20 companies only
d)all the above e) none of the above
15. As per new companies bill a resident director is one who has stayed in India for a c
total period not less than --------days in a year
a)180days b)90days c)182days d)100days e) none of the above
ANS: COMPANIES ACT 2013

1 C 10 B
2 C 11 C
3 D 12 D
4 B 13 D
5 B 14 D
6 C 15 C
7 A
8 D
9 A
RISK MANAGEMENT, SUB-PRIME CRISIS & BASEL-III
1. What was the important take aways from the Sub-Prime Crises of 2008 on USA ? a
a)Capital enhancement and conservation through Basel –III - globally
b)Financial Stability and Development Council(FSDC) – in India
c) East Asian Banking crisis d)Both a & b e) none of the above
2. As per BASEL-III norms the minimum equity tier-1 capital is- ----- of RWA b
3. As per BASEL-III norms, the capital conversion buffer is------- in the form of d
common equity tier-1 capital
4. As per BASEL-III norms, the minimum CAR is------ d

5. As per BASEL-III norms, the additional tier-1 capital should not exceed- ------ d
6. As per BASEL-III norms, the minimum tier-1 capital should be- ------- c
a)6.0% b)5.5% c)7.0% d)9.0 e) none of the above
7. As per BASEL-III norms, the maximum tier-2 capital is------- c


8. As per BASEL-III norms, within the tier-2 capital subordinate debt is limited to b
maximum of ------- of Tier-1 capital.
9. As per BASEL-III norms, tier-2 capital can not be- more than ------- of tier-1 d
capital.
10. As per BASEL-III norms, within Tier-1 capital innovative instruments are limited to - a
--- of Tier-1 capital.
11. As per BASEL-III norms, the perpetual non-cumulative preference shares along c
with innovative tier-1 instruments should not exceed- ------ of total tier-1 capital
12. Summary of BASEL-III Includes e

a)Augmentation in the level and quality of capital
b)Introduction of Liquidity standards
c)Modifications in provisioning norms
d) Better and more comprehensive disclosures.
e) all the above
13. In case of takeover of borrowal accounts minimum internal rating is- --------- b
a)VB 3 b)VB 5 c)VB7 d)VB 2 e) none of the above
14. The External Risk rating agencies approved by RBI are- g

a)CRISIL, b) ICRA, c)SMERA, d) FITCH, e)CARE,
f)BRICKWORK. g)All the above
15. The risk weight assigned for Consumer loans including personal loans- ------- b
a)100% b)125% c)75% d)150%
16. The risk weight assigned for Loans and Advances given to staff fully covered by b
superannuation benefits-
a)100% b) 20% c)75% d)150% e) none of the above
17. The risk weight assigned for Loans and Advances given to RRP (Regulatory Retail c
Portfolio) --------
18. The risk weight assigned for Loans and Advances to Venture Capital- -------- d
19. For calculating risk weight the value of plant and Machinary should be as per the c
latest balance sheet which should not be more than ---- months old.
a)12 b)24 c)18 d)36
20. LTV means- a

a) Loan to Value ratio b) Land to value ratio
c) Liability to vehicle ratio d) Loan to Vehicle ratio e)None of above

21. The factor for credit conversion financial guarantees as per risk management policy a
is- ------
22. The factor for credit conversion Performance guarantees as per risk management d
policy is- ----------
23. Our bank‘s quarterly statement on RWA is- ------ c

a)QR115 B)QR110 C)QR112 D)QR102 e) none of the above
24. Basel is a place in ……………. a

a) Switzerland b) New Zealand c) Singapore d) China e) none of the
above
25. CRISIL Risk rating are exempted for c

a)Staff loans b)LTD c)JL d) all the above e)none of above
26. Foreign rating agency approved by RBI d

a)FITCH b)MOODYS c)STANDARD & POORS d)All the above e) none of
the above
27. Onsite Credit Audit Mechanism for loan limit of 5 crore and above within ----- c
months .
28. External credit rating is a must for total exposure of ------- cr and above. d
29. 3. What is ALCO? a

a. Asset Liability Committee. b. Asset Liability Company
c. Asset Loan Committee. d) Asset liability Co-ordination e) none of the
above
30. Three pillars of the Basel II framework: d

a) Minimum Capital Requirements
b) Supervisory Review Process
c) Market Discipline
d)all of above
e)none of above
31. Requirement of additional capital by banks till 2020 is about Rs………
a) 1 lakh crores b) 2 lakh crores c) 3 lakh crores d) 4.5 lakh crores e) none
of the above
Mention the 2 new parameters of Capital infusion for basel III compliance by the
32. GOI.
a) ROA for the last 3 years, the average of which to be above the industrial average
b) ROE for the last 3 years, the average of which to be above the industrial average
c) Per Employee productivity for the last 3 years , average of which to be above the
industrial average d) only a & b e) all the above f) none of the above
Reputation Risk can lead to …………………

a) credit risk b) operational risk c) market risk d) systemic risk

33. e) none of the above
Legal risk is what type of risk

a) credit risk b) market risk c)operational risk d) 3 rd party risk e) none of the
34. above
OECD stand for ………..

a) Organisation for Environmental Clearance and Development b) Organisation for
35. Economic Co-operation and Development c) Organisation for Environment and
Climate and Development d) Organisation for Economy and Climate and
Development e) none of the above
ANS: RISK MANAGEMENT , SUB-PRIME CRISIS & BASEL-III
1 d 11 c 21 a 31 d
2 b 12 e 22 d 32 d
3 d 13 b 23 c 33 d
4 d 14 g 24 a 34 c
5 d 15 b 25 d 35 b
6 c 16 b 26 d
7 c 17 c 27 c
8 b 18 d 28 d
9 d 19 c 29 a
10 a 20 a 30 d
QUESTION BANK ON OFFICIAL LANGUAGE
1. The Official Language Act was enacted in 1963 and came into force from –
a) 26-01-1963
b) 26-01-1965
c) 26-01-1950
d) 26-01-1949
2. The provisions of Section 6 and 7 of Official Language Act are not applicable to the
states of
a) Tamilnadu & Jarkhand

b) Andhra Pradesh & Uttarpradesh
c) Jammu & Kashmir
d) Karnataka & Kerala
3. Which article of the Constitution Authorises States to adopt their own Language for
Official Purposes.
a) 344
b) 210
c) 343
d) 345
e) 342

4. Which Rule stipulates an obligation for Notifying the names of all such Central
Government Offices in the Official Gazette of the Govt. of India, where the 80% of the
total number of Staff have acquired working knowledge of Hindi
a) Rule 10(4) of Official Language Rules 1976

b) Rule 10(2) of Official Language Rules 1976
c) Rule 5 of Official Language Rules 1976
d) Rule 6 of Official Language Rules 1976
5. The language, which has not been included in 8th Schedule of Constitution is
a) Marathi
b) Sanskrit
c) English
d) Tamil
e) Kannada
6. On 14th of September, we are celebrating –
a) Independence Day
b) Hindi Day
c) Republic Day
d) National Integration Day
e) Children‘s Day
7. On 14th of September, Hindi Day is being celebrated because –
a) On 14 September 1949, Hindi is being accepted as Official Language of the

Union.
b) On 14 September 1950, Hindi is being accepted as Official Language of the
Union.
c) On 14 September 1947, Hindi is being accepted as Official Language of the
Union.
d) On 14 September 1951, Hindi is being accepted as Official Language of the
Union.
e) On 14 September 1952 Hindi is being accepted as Official Language of the
Union.
8. Business in the parliament shall be transacted in Hindi or in English, as per the
provisions of article
a) 343
b) 344
c) 210
d) 120
e) None of above
9. Business in the Legislature of a State shall be transacted in Official Language or
Languages of the State or Hindi or in English, as per the provisions of article
a) 343
b) 344
c) 210
d) 120
e) None of above
10. The Official Language of the Union shall be Hindi in Devanagari Script, as per the

provisions of the article –

a) 120
b) 343
c) 344
d) 210
e) None of above
11. The form of numerical to be used for the official purposes f the Union shall be the
international for of Indian numerical, as per the provisions of the article –
a) 343
b) 344
c) 345
d) 346
e) None of above
12. The President shall constitute the Commission & Committee on Parliament on Official
Language, as per the provisions of the article –
a) 343
b) 344
c) 345
d) 346
e) 342
13. The President shall constitute the Commission & Committee on Parliament on Official
Language after expiration of certain period from commencement of constitution as per
the provisions of the article 344. The period is –
a) 15 & 20 years
b) 5 & 10 years
c) 5 & 15 years
d) 10 & 15 years
e) 10 & 20 years
14. The Committee consists of 30 members, of whom –
a) 5 of the House of People & 25 of the Council of State

b) 15 of the House of People & 15 of the Council of State
c) 10 of the House of People & 20 of the Council of State
d) 20 of the House of People & 10 of the Council of State
e) 10 of the House of People & 10 of the Council of State
15. On the day of commencement of constitution, the 8 th Schedule of constitution consists
of ____number of languages.
a) 10
b) 15
c) 18
d) 20
e) 25
16. As on the date, the 8th Schedule of constitution consists of ____number of languages.
a) 22
b) 25
c) 32
d) 35
e) 30
17. As per the provisions of the Section 3(3) of Official Language Act, the documents are
to be issued in –

a) In Hindi only
b) In English only
c) Either in Hindi or in English
d) Both in Hindi & English
18. Official Language Resolution was passed on c
a) 18-01-1970
b) 18-01-1965
c) 18-01-1968
d) 18-01-1972
e) 18-01-1975
19. The States of Bihar, Harayana, Himachala Pradesh are coming under the Language d
Region –
a) B
b) C
c) D
d) A
e) g
20. The union territories of Andaman & Nicobar Islands comes under the Language Region b
a) C
b) A
c) D
d) B
e) E
21. The states of Gujarath, Manarashra and Punjab comes under the Language Region a
a) B
b) A
c) D
d) C
e) E
22. The union territories of Chandigarh comes under the Language Region d
a) C
b) D
c) A
d) B
e) E
23. The States of Tamilnadu and Karnataka comes under the Language Region b
a) B
b) C
c) D
d) A
e) E
24. ―Working Knowledge of Hindi‖ has been defined under c
a) Rule 5 of Official Language Rules

b) Rule 7 of Official Language Rules
c) Rule 10(1) of Official Language Rules
d) Rule 9 of Official Language Rules

e) Rule 6 of Official Language Rules

25. Communications from a Central Govt. Office to a State or Union Territory in Region ―A‖ a
or to any office or person, shall be in Hindi as per the
a) Rule 3(1) of Official Language Rules

c) Rule 7 of Official Language Rules
26. Communication between one Ministry or Department of the Central Government and c
another may be in Hindi or English as per the
a) Rule 8(a) of Official Language Rules

b) Rule 6(a) of Official Language Rules
c) Rule 4(a) of Official Language Rules
d) Rule104(a) of Official Language Rules
27. Replies to communications received in Hindi must be in Hindi as per the d
a) Rule 10 of Official Language Rules

c) Rule 6 of Official Language Rules
28. As per Official Language Rules 1976 Rule No. _______ it is the responsibility of the b
persons signing on all documents referred to in sub-section (3) of Section 3, to ensure
that such documents are made, executed or issued both in Hindi & English
a) 5
b) 6
c) 8
d) 9
e) 10
29. As per Official Language Rules 1976 Rule No. _______ an employee may submit an d
application, appeal or representation in Hindi or in English
a) 9(1)
b) 10(1)
c) 8(1)
d) 7(1)
e) None of above
30. As per Official Language Rules 1976 Rule No. _______ an application, appeal or a
representation made or signed in Hindi, shall be replied to in Hindi
a) 7(2)
b) 8(2)
c) 9(2)
d) 10(2)
e) None of above

31. As per Official Language Rules 1976 Rule No. _______ an employee may record a note c
or minute on a file in Hindi or in English
a) 7(1)
b) 10(1)
c) 8(1)
d) 9(1)
e) None of above
32. As per Official Language Rules 1976 Rule No. _______ the Central Government may, b
by order specify the notified offices where Hindi alone shall be used by employees who
possess proficiency in Hindi –
a) 10(4)
b) 8(4)
c) 11(4)
d) 9(4)
e) None of above
33. Proficiency in Hindi has been defined in Rule No. d
a) 8
b) 7
c) 6
d) 9
e) 10
34. As per Official Language Rules 1976 Rule No. _______ all Manuals, Codes, other c
Procedural Literature, articles of Stationery, Boards, Name Plates, Rubber Stamps,
Seals, etc. shall be in Hindi and English in diglot form
a) 12
b) 7
c) 11
d) 10
e) 9
35. As per Official Language Rules 1976 Rule No. _______ it is the responsibility of a
administrative head of the Central Government Office to ensure the provisions are
properly complied with
a) 12
b) 11
c) 10
d) 9
e) 12
1. b 18. c
2. c 19. d
3. d 20. b
4. a 21. a
5. c 22. d
6. b 23. b
7. a 24. c
8. d 25. a
9. c 26. c

10. b 27. d
11. a 28. b
12. b 29. d
13. c 30. a
14. d 31. c
15. b 32. b
16. a 33. d
17. d 34. c
18. c 35. a
QUESTION BANK ON KNOW YOUR BANK AND ANNUAL REPORT
1. What is the net profit of the bank for the Year ended 31.03.2014
a) 350 crores
b) 400 crores
c) 416 crores
d) 586 crores
e) 410 crores
2. What is the net profit of the bank for the Nine Months ended as on 31.12.2014
a) 350 crores
b) 400 crores
c) 416 crores
d) 586 crores
e) 342.61 crores
3. What is the total business of the bank as on 31.03.2014
a) Rs. 2,06,000 crores

b) Rs. 2,06,721 crores
c) Rs. 1,67,531 crores
d) Rs. 2,00,000 crores

4. What is the total business of the bank as on 31.12.2014
a) Rs. 2,06,000 crores

b) Rs. 2,06,721 crores
c) Rs. 1,67,531 crores
d) Rs. 2,00,000 crores
e) Rs. 2,03,187 crores
5. What is the Net NPA of the Bank as on 31.03.2014
a) 1.55%
b) 1.50%
c) 1.85%
d) 1.75%
e) 1.65%
6. What is the Net NPA of the Bank as on 31.12.2014
a) 1.55%
b) 1.50%
c) 1.85%
d) 1.75%
e) 1.89%
7. What is the total deposits of the Bank as on 31.03.2014
a) Rs.97017 (31.3.2013)
b) Rs.120296 cr
c) Rs.124296 cr
d) Rs.150000 cr
e) Rs.130000 cr
8. What is the total deposits of the Bank as on 31.12.2014
a) Rs.97017 (31.3.2013)
b) Rs.120296 cr
c) Rs.124296 cr
d) Rs.124051 cr
e) Rs.130000 cr
9. What is the Gross Advances of the Bank as on 31.03.2014
a) Rs.82425 cr
b) Rs.70514 cr (31.03.2013)
c) Rs.83000 cr
d) Rs.85000 cr
e) Rs.75000 cr

10. What is the Gross Advances of the Bank as on 31.12.2014
a) Rs.82425 cr
b) Rs.70514 cr (31.03.2013)
c) Rs.83000 cr
d) Rs.79136 cr
e) Rs.75000 cr
11. What is the Provision Coverage Ratio(PCR) as on 31.03.2014 of the Bank
a) 60.00%
b) 61.52%
c) 62.325
d) 64.05%
e) 65.15%
12. What is the Provision Coverage Ratio(PCR) as on 31.12.2014 of the Bank
a) 60.00%
b) 61.52%
c) 62.325
d) 64.05%
e) 65.77%
13. Total number of Branch network of the Bank as on 31.03.2014 is
a) 1500
b) 1510
c) 1512
d) 1515
e) 1525
14. Total number of Branch network of the Bank as on 31.12.2014 is
a) 1500
b) 1512
c) 1550
d) 1565
e) 1600
15. Total number of ATM network of the Bank as on 31.03.2014 is
a) 1500
b) 1520
c) 1525
d) 1528
e) 1535

16. Total number of ATM network of the Bank as on 31.12.2014 is
a) 1560
b) 1565
c) 1568
d) 1570
e) 1575
17. What is Capital to risk weighted assets ratio is as on 31.03.2014
a) 10.00%
b) 10.15%
c) 10.50%
d) 10.56%
e) 10.60%
18. What is Capital to risk weighted assets ratio is as on 31.12.2014
a) 10.00%
b) 10.15%
c) 10.50%
d) 10.57%
e) 10.60%
19. Total Staff Strength as 31.03.2014 -
a) 12150
b) 12500
c) 12800
d) 12822
e) 12900
20. Total staff Strength as on 31.12.2014 - 13686
a) 13150
b) 13500
c) 13600
d) 13686
e) 13700
ANSWERS
1 C 11 D
2 E 12 E
3 B 13 C
4 E 14 D
5 A 15 D

6 E 16 C
7 C 17 D
8 D 18 D
9 A 19 D
10 D 20 D
SERVICE CONDITIONS
1 The GRADES & CATEGORISATION OF POSTS for Officers & Executives is as follows:
A) Scale I : Junior Management Grade - Asst. Manager

Scale II & III : Middle Management Grade - Managers & Senior
Managers
Scale IV & V : Senior Management Grade – Chief Managers & Asst,
General Managers
Scale VI & VII: Top Executive Grade – DGMs & GMs.
B) Scale I &II : Junior Management Grade - Asst. Mgrs.& Managers

Scale III : Middle Management Grade - Senior Managers
Scale IV & V : Senior Management Grade – Chief Managers & Asst,
General Managers
Scale VI & VII: Top Executive Grade – DGMs & GMs.
C) Scale I : Junior Mangement Grade - Asst. Manager

Managers
Scale IV : Senior Management Grade – Chief Managers
ScaleV,VI&VII: Top Executive Grade – AGMS, DGMs & GMs.

D) Scale I : Junior Mangement Grade - Asst. Manager

Managers
Scale IV : Senior Management Grade – Chief Managers
ScaleV & VI : Top Executive Grade – AGMS & DGMs
E) None of the above
2 The Starting Basic Pay as per 9th Bipartite Settlement for Scale II, III & IV starts from
a) 19400 25700 30600
b) 19000 25000 30000
c) 19500 25500 30500
d) 20000 21000 31500
3 As per the present Settlement, Medical aid paid annually is as follows:
a)Officer in JMG and MMG -5,000/- & Officer in SMG & TEG - 6,320/-
b)Officer in JMG and MMG -5,500/- & Officer in SMG & TEG - 6,520/-
c)Officer in JMG and MMG -5,100/- & Officer in SMG & TEG - 6,320/-
d)Officer in JMG and MMG -5,100/- & Officer in SMG & TEG - 6,100/-
4 The Professional Qualification Pay for those who have passed JAIIB is
a) Rs 410/- per month for two years after reaching top of the scale
b) Rs 410/- per month one year after reaching top of the scale
c) Rs 400/- per month one year after reaching top of the scale
d) Rs 510/- per month one year after reaching top of the scale
e) Rs 500/- per month one year after reaching top of the scale
5 The Professional Qualification Pay for those who have passed CAIIB is
a) Rs 410/- per month for two years after reaching top of the scale
Rs.1030 per month for two years after reaching top of the scale
b) Rs 410/- per month one year after reaching top of the scale
c) Rs 400/- per month one year after reaching top of the scale
d) Rs 410/- per month one year after reaching top of the scale
Rs.1030 per month for three years after reaching top of the scale
e) Rs 500/- per month one year after reaching top of the scale
The applicable Halting allowance for Scale I, II and III in area

A class Area I Other places

6 a) 800 800 600

b) 800 700 600
c) 800 700 650
d) 800 700 700
e) 800 750 600
7 The applicable Halting allowance for Scale IV & above in area
A class Area I Other places
a) 800 800 600
b) 800 700 600
c) 1000 800 700
d) 1000 900 800
e) 1000 850 750
The Compensation on Transfer towards Packing charges applicable to Officers &

8 Executives is -
a) Rs 9,000/- upto Scale III and Rs 10000/- Scale IV & above.

b) Rs 9,000/- upto Scale III and Rs 11000/- Scale IV & above.
c) Rs 8,000/- upto Scale III and Rs 12000/- Scale IV & above.
d) Rs 9,000/- upto Scale III and Rs 12000/- Scale IV & above.
e) Rs 8,000/- upto Scale III and Rs 11000/- Scale IV & above.
9 The criteria to define a city as ―AREA – I‖ is as follows:
a) Places with population of more than 10 lakhs other than Major ―A‖ class city.
b) Places with population of more than 11 lakhs other than Major ―A‖ class city.
c) Places with population of more than 12 lakhs other than Major ―A‖ class city.
d) Places with population of more than 14 lakhs other than Major ―A‖ class city.
e) All Cities other than Major ―A‖ class city will be treated as AreaI.
1 a
2 a
3 C
4 b
5 b
6 b
7 c
8 d
9 c

GENERAL KNOWLEDGE RELATED & GK Related to Finance.
1. The Financial sector reforms in India started in the year ….. as the
Recommendation of …… committee.
a. 1994, Narasimham b. 1994, Rangarajan
c. 1991, Narasimham d. 1991, Rangarajan
e. None of above
2. Under the deregulated regime the interest rate are fixed by the --------
a RBI b. IBA c. Board of the Bank
d. ALCO if authorized by the Board e. c or d
3. The interest rates with respect to of the following are minimum

a) PMEGP b) TRACTOR LOAN c) SRTO d) VKC e) DRI advance
4. The responsibility of supervision of banks is vested with the -------------

a) Board for supervision of Banks b) Board for Banking supervision
c) Board for Financial supervision d) CVC e) FIU (IND)
5. Who is the Ex-Officio chairman of the Board for Financial Supervision?

a) Governor of the RBI b) Deputy Governor of the RBI
c) Finance Minister of the Govt. Of India d) Finance Secretary
e) IBA Chairman

6. Target for Total priority Sector advances as per RBI norms for domestic
Commercial bank is
a. 32% of ANBC or credit equivalent amount of off balance sheet
exposure whichever is higher
b. 40% of ANBC or credit equivalent amount of off balance sheet
c. 18% of ANBC or credit equivalent amount of off balance sheet
d. 40% of ANBC as on March 31 of previous year
e. All above
7. The total number of members in the Board of Financial Supervision is --

--- and they are all the ----
a) 6, directors of the central board of the RBI b) 9, top bankers
c) 15, Govt. official and bankers d) 5, Chairmen of selected bankers
e) None of above
8. The prompt corrective action is introduced by ------ with the objective

to -----
a) GOI, eliminate corruption b) RBI, for monitoring the
financial health c) GOI, for better financial health d) SEBI, for regulating share price e)
CVC, for eliminating corruption.
9. Who is the present Governor of the RBI

(a) Subba Rao
(b) Y V Reddy
(c) Usha Thorat
(d) DR .Raghuram Rajan
(e) K.C. Chakarborety
10. The following is classified as a Public Sector Bank

(a) ICICI Bank (b) IDBI Ltd (c) AXIS Bank
(d) Local area Bank e) All above
11. Which of the following institutions does not sanction long term loans to
Industries?
(a) RBI (b) SBI (c) SIDBI (d) IDBI Bank e) none of above
12. Which of the following does not represent part of a name of a bank in
India ?
(a) ITC (b) YES (c) INDUS (d) CENTURIAN e) None of these
13. The city group belongs to the following country?

a) UK (b) USA (c) HONGKONG (d) Germany (e) None Of above
14. The HSBC bank is the biggest bank of the following continent.
a) America (b) Asia (c) Europe d) Africa e) none of above
15. Which bank is the largest private sector bank in India?

(a) ICICI Bank (b) HDFC bank (c) IFCI (d) IDBI Bank (e) SBI
16. What is the floor limit for the Govt share holding of a public sector bank?

(a) 51 % b) 49 % (c) 24 % (d) 75 % (e) None of above
17. Which is the committee recommended for the amalgamation of RRBs?

(a) Sardesai Committee b) Rangarajan Committee (c) Vyas Committee
(d) Deepak Parekh Committee (e) None of above
18. The BCSBI has been set up by ________

a) Govt of India b) IBA c) RBI d) Finance ministry e) DFS
19. The code of Bank‘s commitment to customers has been formed by

a) IBA (b) RBI (c) BCSBI (d) GOI (e) None of above
20. The code of Bank‘s commitment to customers is not applicable to the

Following
a) Pvt Sector Bank (b) PSBs (c) Foreign Banks (d) SBI (e) None of above
21. What is the maximum number of Deputy Governors, RBI can have
a) 4 (b) 10 (c) 6 (d) 5(e) None of above
22. Which of the following is a mechanism for injection of liquidity by RBI to

the financial system
(a) Reverse Repo (b) hike in CRR (c) hike in interest rate (d) repo
(e) None of above
23. The Reverse repo has the following characteristics

a) Borrowing by RBI from banks (b) borrowing with govt security as collateral c) short
term borrowing (d) suction of funds by RBI
(e) All of these
24. The Financial Markets Department of the RBI is in charge of the

Following operations
a) Open Market Operations (b) Liquidity adjustment facility
(c) Market Stabilization scheme (d) Standing Liquidity facilities
(e) All of above
25. The RBI was established on _ as per the provisions of RBI Act
a) 1.4.1931 (b) 1.3.1931 (c) 1.4.1937 (d)
1.4.1935 (e) None of above
26. The RBI prepares its annual report as on the following date every year
a) March 31 (b) July 31 (c) December 31 (d) June 30 (e) None of above
27. The section number of the RBI act 1934 and matter it deals with is
given below. Which is a mismatch?
a) Sec 21- Right of the Bank to transact Govt Business
b) 31 – issue of demand bills payable to bearer
c) 42 – maintenance of cash reserve by scheduled banks
d) 49 – publication of bank rate
e) NOA
28. Sterilization operation by the monetary authorities is expected to result

in

(a) Expansion of the money supply (b) contraction of money supply

(c) Increase in CRR (d) decrease the investment of the banks
(e) None of above
29. The RBI has agreed to lend a portion of the foreign exchange reserve
for financing the projects related to
(a) Rural education (b) rural development (c) employment generation
(d) Rural health (e) infrastructure
30. The reverse repo rate is the rate at which _ ______ borrows money
from ______
(a) Banks from RBI (b) RBI from banks (c) Commercial banks from HNIs
(d) commercial banks from foreign countries (e) None of above
31. A reduction bank rate should affect the availability of credit in the
Following manner
a) Credit will increase (b) credit will decrease (c)does not affect credit (d) affects the
credit repayment capacity of the banks (e) None of above
32. With respect to CRR maintenance, the following statement is wrong

a) It is maintained on ―average daily balance basis‖
b) The amount to be maintained is computed with reference to NDTL
Figures of the reporting Friday before two weeks
c) The balance maintained at all centers of RBI are taken into
Consideration for the purpose
d) None of above
e) All of above
33. RBI's R.V. Gupta Committee is relating to

a) Merger & acquisition b) self help groups c) Agricultural credit delivery system d)
Nationalisation of banks e) None of these
34. The Committee on Restructuring of Weak Commercial Banks was

headed by
a) M.S. Kapoor b) V.P. Shetty c)M. S. Verma d) Mr. Ghosh e) none of these
35. Committee on fraud and malpractices is headed by

a) Mr. Ghosh b) Mr. Sheth c) Mr.Pai. d) M. S. Verma e) Mr. Kapoor
36. Talwar Committee was set up for

a) Improving customer service b) Prevention of fraud
c) Loan Delivery system d) Micro & Small enterprises e) DRI
37. Consortium finance committee was headed by

a) V.P. Shetty b) J.V. Shetty c) Dr.Rangarajan d) M S. Kapoor e) None of these
38. Committees of Self Help Group was headed by

a) S.K. Khadia b) P.S. Shenoy c) S.R. Gupta d) D. V. Shetty e) None of above
39. Revised method of lending in place of Cash Credit (M) system was
headed by:

a) J.V. Shetty b) Dr. C. Rangarajan c)Rashid Jalani. d) mr. talwar e) None of these
40. P.S.U. Disinvestment Committee was headed by:

a) S.H. Khan b) V.P. Shetty c) Dr.C. Rangarajan d) Y.V. Reddy e) None of these
41.What is the maximum age under Sukanya Samridhi A/c Yojana ?
a) 5 years b)10 years c)12 years d) 16 years e) 18 yers
42. What is minimum & maximum deposit per Financial year under Sukanya Samridhi A/c
Yojana ?
a) 1000, 150000 b) 5000, 100000 c) 1000, 150000 d)5000, 150000 e)None of
above
43.What is present Repo Rate?

a) 7.75 % b)7.50% c)7% d)6.5% e)6.75%
44. What is present SLR? (07/02/15)

a) 21% b) 21.5% c)22% d)22.5% e)25%
45. A E-Vollets named POCKETS is introduced by……………….?

a)Axis Bank b) Federal bank c) ICICI Bank d) Yes Bank e)HDFC Bank
46. Who is vice Chairperson of NITI AYOG?

a) Montek Singh Ahluwalia b) K.C. Pant c) Manmohan Singh d) Arvind pangaria e)
None of these
47. What is present bank rate?( w.e.f.04/03/15)

a)8.5% b) 9% c)10% d)7.5% e)5%
48. What is present CRR ?( 09/02/13)

a) 3% b) 3.5% c) 3.75% d)3.25 e)4%
49. What is reverse Repo Rate?

a)6% b) 6.25% c)6.50% d) 7% e)7.5%
50. MUDRA Bank is established with a Initial corpus of Rs.(in crores)

a) 20,000 b) 25,000 c) 30,000/- d) 35,000 e) 40000
51. The Sportsman Who got life time membership of MCC

a) Sachin Tendulkar b) Shourabh ganguly c) Virendra Shehbag d) Yuvraj Singh e)
Virat kohli
52. Head Quarter of ASIAN DEVELOPMENT BANK is at

a) Singapur b) Dhaka c) Manila d) Kolambo e) Delhi
53. Contactless card is introduced by which bank?

a) Kotak Mahindra b) ICICI c) HDFC d) YES e) VIJAYA BANK
54. First bank to allow Customer to open an account with only Aadhar No.
a) AXIS bank b) Yes Bank c) Kotak Mahindra Bank d) Vijaya bank e)ICICI Bank
55. What is SB account rate (in presentage) of Bhartiya Mahila Bank up to Balance Rs.1 lakh
& on remaining balance? (More than 1 lakh) respectively
a) 4 & 4.5 b) 4.5 & 5 c) 5 & 5.5 d) 5.5 & 6 e) both 4%

56. The codes of IFSC confirm to the-------------------Code

a) CBS b) IBAN c)SWIFT d)CBDT e) RTGS
57. Which of following risk/s is/are managed by RTGS

a) Settlement Risk b) Systematic Risk c) Liquidity Risk d) Operational Risk e) a & b
above
58. Net Interest Income is

a) Interest earned on Loans & Advances
b) Interest Earned on investment
c) Total of a & b.
d) Difference between interest earned & Interest paid
e) None of above
59. RBI has increased the amount of Indian Currency from Rs.7500 per person for individual
traveling abroad. What is new amount?
a) Rs.8000 b) Rs.10000/- c) Rs.15000/- d) Rs.20000/- e) Rs.25000
60. Which is the first Country to introduce Polyster Notes is

a)India b) USA c) Australia d) UK e) China
.
GENERAL KNOWLEDGE RELATED & GK RELATED TO FINANCE
1 C 11 A 21 A 31 A 41 B 51 B
2 E 12 A 22 D 32 D 42 A 52 C
3 E 13 B 23 E 33 C 43 B 53 B
4 C 14 B 24 E 34 C 44 B 54 A
5 A 15 A 25 D 35 A 45 C 55 B
6 B 16 A 26 D 36 A 46 D 56 C
7 A 17 A 27 E 37 B 47 A 57 C
8 B 18 C 28 B 38 A 48 C 58 D
9 D 19 C 29 E 39 C 49 C 59 B
10 B 20 e 30 b 40 c 50 A 60 C

ENGLISH
A. There is one word underlined in each sentence. Choose the word that is not a
synonym of that word, in the context of the sentence.
1. Kavitha has a very attractive smile

a. Appealing
b. Pleasant
c. Sticky
d. Pretty
e. None of these
2. I‘ll have to revise my speech before it is ready to be presented.
a. Edit
b. Change
c. Fix
d. Replace
e. None of these
3. That one foolish act damaged his reputation
a. Harmed
b. Broke
c. Marred

d. Blemished
e. None of these
4. Frank has a large collection of rare musical instruments
a. Extensive
b. Huge
c. Big
d. Portly
e. None of these
5. Please consider the probable effect of the actions you are about to take!
a. Change
b. Consequence
c. Result
d. Outcome
e. None of these
6. Let us trail them to see where they are going.
a. Path
b. Follow
c. Pursue
d. Stalk
e. None of these
B. There is one word underlined in each sentence. Choose the word which is
antonym to the word in the context of the sentence.
1. Our investigation will reveal the truth

a. Conceal
b. Expose
c. Inspect
d. Announce
e. None of these
2. There are many ways to build a house
a. Some
b. Few
c. Numerous
d. Bad
e. None of these
3. That car is too expensive for our budget
a. Inexpensive
b. Costly
c. Priced
d. Small
e. None of these
4. The teacher read us a very entertaining book
a. Fictional
b. Factual
c. Silly
d. Boring
e. None of these
5. Sunglasses will only hinder your ability to see at night.
a. Accept
b. Describe
c. Equal

d. Help
e. None of these
6. That barbell is light enough for a two year old to lift.
a. Dark
b. Serious
c. Harsh
d. Heavy
e. None of these
7. The new Governor will free the innocent prisoner
a. Costly
b. Imprison
c. Imprisoned
d. Release
e. None of these
8. My parents are hoping that I will do the right thing.
a. Left
b. Prohibition
c. Proper
d. Wrong
e. None of these
C. Choose the correct word
1. I have got ____ cook book

(a) An (b) A (c) Some (d) Any (e) None of these
2. There is _______water in the Fridge
3. there is not _____ water left in the bottle
4. there was _______ bottle of juice on the shelf.
5. She wants to eat ________ apple

6. Have we got ________ chips?
D. Choose the best meaning or synonym for each underlined word.
1. Your Plan looks good. I hope it will really work. It is time to u do it and see the results.
a. Instrument
b. Take apart
c. Change

d. Carry out
e. None of these
2. If your plan fails, we will have to find some one who can devise a better one.
a. Design
b. Dislike
c. Appliances
d. Depart
e. None of these
3. I tend to be Optimistic.
a. Expecting the best to happen
b. Needing the glasses to see
c. Full of gas
d. Unselfish
e. None of these
4. When your plan becomes successful, you will be rewarded for your sagacity.
a. Good looks
b. Mistakes
c. Intelligence
d. Foolishness
e. None of these
5. I assure that your hard work will not be unnoticed.
a. Dare
b. Promise
c. Act like a donkey
d. Forget
e. None of these
E. Choose the best answer
1. I like to visit other countries but I find the ____ of travel is too high.
a. Money
b. Cost
c. Expenses
d. Currency
e. None of these
2. She is very happy because she starts her new _____ today.
a. Job
b. Work
c. Labour
d. Post
e. None of these
3. One day I hope I shall _______the lottery
a. Gain
b. Collect
c. Reach
d. Win
e. None of these
4. He must have a lot of money because this summer he is going on a cruise ______ the
world.
a. About
b. Around
c. Across

d. Through
e. None of these
5. Have you read the book ______ the life of Van Gogh.
a. About
b. Of
c. Over
d. In
e. None of these
6. Do you want ___ sugar for your coffee?
a. Some
b. Much
c. Any
d. Little
e. None of these
7. They do not ____ cheques in the restaurant.
a. Accept
b. Agree
c. Allow
d. Admit
e. None of these
8. I cannot work today because I have very bad tooth _____
a. Pain
b. Hurt
c. Damage
d. Ache
e. None of these
9. Children are not __in that public house.
a. Aloud
b. Allowed
c. Accepted
d. Agreed
e. None of these
10. You can see the ___ about the sale in the local paper.
a. Announcement
b. Warning
c. Notice
d. Advertisement
e. None of these
11. I would be very interested in _______ for that job.
a. Entering
b. Working
c. Applying
d. Writing
e. None of these
12. Do you want to ____as a candidate in the local elections?
a. Stand
b. Sit
c. Go
d. Try
e. None of these
13. They are completely _______ up with all the noise in the centre of the town.
a. Tired
b. Fed

c. Sick
d. Ill
e. None of these
14. The reason there are no buses is because the drivers are on ________
a. Hit
b. Stop
c. Strike
d. Leave
e. None of these
15. The Government has changed its policy and had a complete change of _______.
a. View
b. Opinion
c. Mind
d. Heart
e. None of these
16. This supermarket is trying to ____ young shoppers by offering fashionable clothes.
a. Target
b. Persuade
c. Encourage
d. Trap
e. None of these
17. You should have ____those shares when they were cheap
a. Taken out
b. Sold off
c. Bought up
d. Taken over
e. None of these
18. You must try and hurry up because my patience is _________out.
a. Running out
b. Racing
c. Pacing
d. Turning
e. None of these
19. Have you ever tried your ____ at running a business?
a. Arm
b. Finger
c. Hand
d. Leg
e. None of these
20. After all these years she decided to take early _______
a. Leave
b. Finishing
c. Departure
d. Retirement
e. None of these
21. The company had its own code of ________ in these matters
a. Behaviour
b. Conduct
c. Dealing
d. Attitude
e. None of these
22. This is a _____ example of what not to do.
a. Critical

b. Pure
c. Simple
d. Classic
e. None of these
23. Plans have already been drawn _______ to deal with such situations.
a. Over
b. Through
c. Up
d. Into
e. None of these
24. Thousands of ____ are already signing up for this new telephone service.
a. Individuals
b. Subscribers
c. Applicants
d. Interviewees
e. None of these
25. Job losses are mainly in the _______ sectors of the industry.
a. Blue collar
b. Red collar
c. Stiff collar
d. High collar
e. None of these
26. The circular will contain ___financial information to help investors.
a. Key
b. Obvious
c. Intelligent
d. Noted
e. None of these
27. The report is __ to show better than expected results
a. Necessary
b. Possibly
c. Clearly
d. Likely
e. None of these
28. So many of these animals have been shot over the years that they are now classified
as __ species.
a. Dangerous
b. Endangered
c. Unwanted
d. Limited
e. None of these
29. Some people are ____ to learn a foreign language.
a. Unaccustomed
b. Shy
c. Reluctant
d. Inhibited
e. None of these
30. It was a big ____ for her to give up her acting career to look after her family.
a. Trial

b. Sacrifice
c. Endeavour
d. Test
e. None of these
31. Can you hear what he is ________?
a. Saying
b. Speaking
c. Telling
d. Talking
e. All the above
32. She has not come home ___________.
a. Still
b. Already
c. Yet
d. Till
e. None of these
33. I _____ TV yesterday evening.
a. Saw
b. Looked
c. Viewed
d. Watched
e. None of these
34. We live _________ the temple.
a. Near
b. Next
c. By
d. Nearby
e. None of these
35. She looks ________ a famous film star.
a. As
b. Like
c. Similar
d. Same
e. None of these
36. The television gives you the ______news.
a. Last
b. Latest
c. Least
d. Later
e. None of these
37. I only ____ one mistake in the last test.
a. Made
b. Done
c. Did
d. Make
e. None of these
38. I want you to tell me the ________ truth.
a. All
b. Exact
c. Real
d. Whole
e. None of these
39. He is looking ____ a present to buy his sister.

a. For
b. At
c. In
d. On
e. None of these
40. That is what I would like ______ Christmas.
a. For
b. At
c. In
d. On
e. None of these
41. Some people only read the __________ lines in the newspaper.
a. Top
b. Big
c. Main
d. Head
e. None of these
42. You should always check the sell _______ date of things you buy in the super market.
a. In
b. Expiry
c. By
d. Off
e. None of these
43. when the building was completed, all the workers were paid ________.
a. Off
b. Through
c. Out
d. Over
e. None of these
44. The boss was good enough to ___________ my mistake.
a. Oversee
b. Overtake
c. Overdo
d. Overlook
e. None of these
45. It is always _____ when you misunderstand the customs of other countries.
a. Embarrassing
b. Peculiar
c. Singular
d. Attitude
e. None of these
46. Newspapers are __ people‘s doors everyday.
a. Taken
b. Distributed
c. Delivered
d. Handled
e. None of these
47. In her speech she expressed her ________ for all the help she had been given.
a. Thankfulness
b. Gratitude
c. Gratefulness
d. Thanking
e. None of these

48. In ______ nothing much happened at the meeting.

a. Quick
b. Briefly
c. Short
d. Shortly
e. None of these
49. At the end of the speech the whole assembly gave the speakers a standing _____.
a. Ovation
b. Applause
c. Cheering
d. Support
e. None of these
50. Politicians pretend to ignore the opinion __________
a. Votes
b. Figures
c. Numbers
d. Polls
e. None of these
English:
Answers - A Answers – B
1 2 3 4 5 6 1 2 3 4 5 6 7 8
C D B D A A A B A D D D B D
Answers – C
1 2 3 4 5 6
B C D B A D
Answers – D
1 2 3 4 5
D A A C B
Answer - E
1 B 11 C 21 B 31 E 41 D 47 B

2 A 12 A 22 D 32 C 42 B 48 C
3 D 13 B 23 C 33 D 43 A 49 A
4 B 14 C 24 B 34 A 44 D 50 D
5 A 15 D 25 A 35 B 45 A
6 C 16 A 26 A 36 B 46 C
Gist of Circulars – 2014
Cir. Subject Important Points

No.
1 Irregularities in Loans are granted against third party FDs and further FDs are made in the name of
Issuing Financial the intending beneficiary to be able to issue financial capacity/capability certificate.
Capacity/Capa -bility Once the financial capacity/capability certificate is issued, the FDs are closed
Certificate for prematurely within a day. All such transactions are carried out through Chartered
submission to Accountants and Travel Agents who work as intermediaries for fees.
foreignUniversities
Commission has further observed that Banks should not be allowed to create FDRs
out of overdraft allowed which defeats the purpose when certificate of financial
capacity to support the students study abroad is being issued. Third party loans
against FDRs or certificates being issued for this purpose be barred as it is nothing
but to hoodwink the foreign universities by dubious Chartered Accountants and
Travel Agents for admission to courses. This not only brings disrepute to concerned
Bank but also image of the country as well. Indirectly or directly this also results in
our youth going abroad and trying to find work while studying to earn so that they
can support their studies financially. In many cases such students are working
illegally which is not allowed under student visa.

COOLING PERIOD Consequent to the formation of Credit Approval Committee (known as Head Office
Level Credit Approval Committee in our Bank) and the vertical committees at RO
and HO levels and in the light of abolition of individual delegated powers at RO and
level, the concept of cooling period become extinct for the functionaries operating at
the RO and HO level and therefore shall not be applicable to the members of the RO
and HO level committees, including the heads of such committees.
In the case of Executive headed branches, if the Executive in-charge is allowed to

continue to head the branch during three months period prior to their retirement/
voluntary retirement/ superannuation of the said executive, the proposals/notes
shall be put up before an Executive at Regional Office in the same designation with
specific recommendations of the Branch Head and Second Line Executive/Officer for
sanction.
In the case of other Branch Heads during the period of 3 months prior to their
retirement/ voluntary retirement/superannuation, all proposals falling under the
delegated powers of the Branch Head, shall be accorded sanction by the delegatees
not below the rank of Scale-IV at Regional offices based on the recommendations
received from branches and on the merits of the proposal. Such sanctions accorded
shall be placed before the next higher authority for
perusal as per extant guidelines.‖
3 Extension of Date of Reserve Bank of India vide notification DGBA.CDD.No.3798/13.01.99/2013-14

Issuance of Inflation dated December 30, 2013 has informed that Government of India has decided to
Indexed National extend the closing date for issuance of Inflation Indexed National Securities -
Securities – Cumulative Cumulative (IINSS-C), 2013 from December 31, 2013 to March 31, 2014.
(IINSS-C)
4 Promotion Results RELEASE OF WAIT LIST: PROMOTION FROM MMGS-II TO MMGS-III
MAINTENANCE & ISSUE With effect from 6th Jan 2014, STAFF CODE NUMBER to be treated as ―SPECIMEN
5 OF SPECIMEN SIGNATURE NUMBER‖. The same can be viewed in HRMS under ‗EMPLOYEE
SIGNATURE NUMBERS Details‘.
6 Legal Issue – Whether the protection under Section 22 (1) of Sick Industrial
Legal Decision Affecting Companies (special provisions) Act, 1985 (for short ―the SICA‖) will be available to
Bankers Guarantors if the bank files Original Application / Recovery proceedings before Debt
Recovery Tribunal (DRT) established under Recovery of Debts Due to Banks and
Financial Institutions Act 1993. (for short ―the RDDB‖)?.
Decision:- Guarantors can obtain protection under Section 22 (1) of SICA only if
the action filed by the bank comes within the ambit of term ―Suit‖. If the action filed
by the Bank in the nature of ―Proceedings‖ and not a ―Suit‖, protection under
section 22 (1) of SICA would not be available. The term 'Suit' would apply only to
proceedings in Civil Court and not actions or recovery proceedings filed by banks
and financial institutions before a tribunal such as DRT.
7 Collection of Delhi State We have introduced offline payment of commercial taxes, Delhi state through
Government Commercial our GBM module.
Taxes through Offline The steps for making offline DVAT payment is given below for the field
mode functionaries understanding & also for the propagation of this facility provided
by Bank to our customers.
8 Collection of Madhya E-payment of Directorate of Treasuries & Accounts, Madhya Pradesh is available
Pradesh State through our V-Net Banking and will benefit our V-Net retail and corporate users in
Government Commercial paying the commercial taxes through V-Net banking channel anywhere, and
taxes through V-Net anytime.
Banking e-mode. Bhopal-7601 branch has been identified as an e-focal branch for the processing of
the Madhya Pradesh Commercial Taxes e-payment. The pool Account Number is
760100037616018. Bhopal (7601) branch has the following functions:
Generate/download the reconciliation file with using our internal application

http://172.16.7.41:8292/MP/MPReportGeneration.aspx and and share it to

RBI/Directorate of Treasuries & Accounts, Madhya Paradesh.
The collected amount (Pool account [760100037616018] amount) has to be
credited to Directorate of Treasuries & Accounts, Madhya Pradesh account on the
next working day and the account balance should be zero for that day MIS.
9 Non compliance of During the recent inspections made by various Government authorities, with regard
guidelines and increase to pension payments and Government Business, we observe that the lapses are
in number of audit becoming more at the branches, which may lead to penalty payments in future.
objections / penalties
10 1% concession for The Bank vide HOC 13333 dated 10.12.2013 has reduced rate of interest by 1% on
Loans upto 5 LAKHS all fresh advances extended under Priority Sector up to Rs.5.00 lakhs to SC/ST
given to SC/ST in beneficiaries subject to the condition that the Rate of Interest is not below Base
respect of Rate of the Bank. The concession is also extended to Retail Advances classified
a) Priority Sector under Priority Sector. Now the same interest concession of 1% has been extended
Advance b) Retail Loans- to credit facilities with sanctioned limits up to Rs. 5 lacs to SCs/STs under all
Priority c)Retail Loans- segments of Retail Credit under Non-priority Sector also subject to the condition
NON Priority that the ultimate Rate of Interest is not below Base Rate of the Bank. The
reduced Rate of Interest will be applicable for all fresh loans.
In other words, 1% concession for Loans upto 5 LAKHS given to SC/ST in

respect of
a) Priority Sector Advance b) Retail Loans-Priority c)Retail Loans-
NON Priority.
11 Modification to the (i) The validity period of sanction in respect of consortium/syndication/project loans
Delegation of Powers is extended.
(ii) Increased powers in the Scale I to III for issue of solvency certificate.
Scale I -10 lakhs, Scale II-40, Scale III-60 lakhs
(iii) Powers to purchase drafts and cheques issued by Government, Semi overnment
and autonomous body stands enhanced in respect of delegatees in Scale I to III.
Maximum permissible per borrower (Rs. in lakhs)
Drafts Govt/PSU cheques Cheques by Trade debtors
1.5 0.75 0.1

5 3 0.25
8 5 0.5
(iv) Introduction of Regulation 15A to provide clarification for approval of

interchangeability in the sanctioned limits by the delegated authorities.
12
The competent Amount of loans Maximum Competent authority to
authorities for / advances concession in ROI approve such
according approval against term concessions
for concessions in rate deposits
of interest chargeable Below Rs.10.00 No concession -
on loans & advances lakh
against Term Deposits
standing in the name
of the borrower

would be as below: Rs.10.00 lakh & 0.50% on the Regional Head –

above but upto applicable ROI on General Manager /
Rs.25.00 lakh loans & advances Deputy General
against term Manager / Assistant
deposits General Manager
0.75% on the General Manager –
applicable ROI on Credit (Operations)
loans & advances
against term
deposits
Above Rs.25.00 0.50% on the Regional Head –
lakh applicable ROI on General Manager /
loans & advances Deputy General
against term Manager / Assistant
deposits General Manager
0.75% on the General Manager –
applicable ROI on Credit (Operations)
loans & advances
against term
deposits
1.00% on the Executive Director
applicable ROI on
loans & advances
against term
deposits
Beyond 1.00% on Chairman & Managing
the applicable ROI Director
on loans &
advances against
term deposits
Note: Any deviation from the above can be approved by only the
Chairman & Managing Director or in his absence, the Executive
Directors.
13 REPORTING OF NEAR Our bank has embarked on a journey to move over to advanced approaches
MISS INCIDENTS / ofOperational Risk Management. In this endeavor, Bank needs to build-up internal
EVENTS – SAS OPRISK Operational risk loss data including near miss events for a minimum period of five
MONITOR SOFTWARE. years. Operational Risk loss events can be considered in terms of incidents with
financial impact and without financial impact (Near miss events).
Near Miss” events are Operational risk incidents for which amount is lost and
recovered before it is recognized as loss to the bank. Near-Miss events are
undesired event or sequence of events with potential to cause serious damage. Near
miss incidents / events also include such occurrences which do not have immediate
financial implications but are very much relevant for managing operational risks in
the branches / offices as they may result in reputation loss to the bank. Some of
the illustrative examples of near miss events are attempted robbery, attempted
fraud, reversal of wrong credits/ debits etc.
SAS Oprisk monitor is an on-line reporting solution meant for reporting of

Operational risk loss events/ incidents. During roll-out of SAS Oprisk monitor
software, we have created users ID and password for all branches.
14 Relief measures to be Moratorium on repayment of loan and interest for a period of one year should be
extended in areas of extended in respect of all kinds of loans that are outstanding in Uttarakhand state.
Uttarakhand

affected by Natural Projects/assets situated in Uttarakhand state but are financed by the branches
Calamity located outside Uttarakhand state also to be extended with the above relief
measure.
15 Modifications in the Assessment of the annual operative limit:
existing Vijaya
Planters Card Scheme to In line with revised VKC guidelines (HOC 12241 dt 13.11.2012),assessment is done
meet the short term as follows:-
credit requirements for i) Amount as per Scale of finance +
cultivation of ii)25% over the scale of finance for those using Modern package of practices,
crops & Investment onlyon merits on merits of individual case where yields are higher +
credit/term loan iii) 40% of scale of finance towards post harvest expenses / maintenance of farm
requirement for coffee, assets.
inter-crops &
other plantation crops Disbursal towards 2nd year crop maintenance: Considering the fact that
planters‘fund requirements are taken care by 40 % additional amount for post
harvest expenses/ maintenance of farm assets in addition to scale of finance, this
provision is deleted.
Fixing of Overall limit:

As followed in Vijaya Kisan Card, the operative limits for second and subsequent
years up to5th year is arrived at, by adding 10% of the previous year‘s operative
limittowards cost escalation / increase in scale of finance/ change in cropping
pattern etc. Thus, the overall contingency portion is less than 50 % of the
1st year Annual limit.
No processing charges up to Rs 3.00 lakh.
Annual Review of the limits:

As per RBI guidelines,repayment period is to be fixed as per the anticipated
harvest/ marketing period of the crops. Accordingly, since Coffee is the major crop,
due date for annual review is fixed as 31st July of each year, by which time crop
sale proceeds and other income need to be credited to the Vijaya Planters Card
account to service the principal & interest. Further, it is to be ensured that interest
and installment of term loans, if any, are also serviced.
Disbursal norms:
Generally coffee crop loans are disbursed as follows:
 60% of the annual limit for the period up to July/August.
 For post monsoon operations, 20% of the annual limit for the period from
September to
 November
 20% of the annual limit from Decembertills the end of the season for picking
&post harvest operations.
Disbursal for other crops is as per the seasonal requirements.

Withdrawal for post harvest / miscellaneous agricultural expenses is @ 40% of the
total Crop production requirement.
It is an operative account and party can make credits to reduce interest burden and
withdraw according to drawing power.
Contingency is to take care of increase in scale of finance during subsequent years.
Hence, the contingency portion of the limit should not to be released. In case of
such increase in scale of finance, subsequent annual limits should be enhanced
within the overall limit.
ATM Card is mandatory for all VPC borrowers. Cheque book facility is also
available to planters having good track record.
Due date for repayment:
Due date for payment of coffee crop loans is generally fixed as 31st July of every
year.

16 Fraud Modus operandi of frauds occurred for the period from Oct 2013 to Dec 2013
17 Reconciliation, i. Branches have to follow the procedures as laid down vide HOC No 13266 dated
Balancing and 04.09.2013 while handling subsidy linked term loan accounts. All subsidy funds
ensuring proper received from the Sponsoring Departments in respect of Term Loans should
control over invariably be accounted under the scheme code: SBSubsidy account- SB 199, in
subsidy / Margin terms of HOC 13266 dated 04.09.213
Money / Interest
subvention accounts. ii. Branches should reconcile and tally all the existing subsidies and a certificate to
this effect should be submitted to respective Regional Office. The Regional Offices in
turn have to submit such conformation to Head Office.
iii. Branches should maintain & update regularly a separate ―Manual Register‖ for
accounting back end subsidy.
iv. In respect of Interest Subvention scheme on crop loans, branches should

exercise following cautions:
 For any debit to ―2% Interest subvention receivable‖ account head, the contra
credit entry should invariably be ―Interest Received on Loans‖ account head.
 While passing on interest subvention for prompt repayment, branches should
debit ―3% Interest subvention receivable‖ account head and the contra credit
should only be made to respective crop loan head of accounts viz., VKC, VPC,
ACC, Jewel Loan (where jewel loans are granted for crop cultivation purpose),
produce loans, if any granted against pledge of Negotiable Ware House
Receipts, and not to any other head of account.
 Further, branches should pass on 3% interest subvention for prompt repayment

at the time of borrowers making the repayment itself and not at the end of the
half year / year end.
18 Policy Guidelines on Revised Guidelines on Allotment / Maintenance / Repairs of Bank owned quarters to
Bank Owned Quarters all Officer Employees (Scale I to VII) applicable to all Centres.
19 Loans and Advances- 1. At the time of sourcing a loan product, please provide the following :
Adherence to Bank‘s
Code of a) Interest rate applicable b) Whether floating or fixed c) If floating, spread over
Commitment to the base rate d) If fixed, periodicity of reset, if any e) Option available if any for
Customers conversion from fixed to floating and vice-versa and charges for the same. f) Other
fees like processing, inspection, documentation etc., g) Fee towards valuation and
legal opinion h) Pre-payment charges, if any and the conditions under which
prepayment charges would be applicable i) penal interest norms
2. Provide acknowledgement of loan application.

3.Provide the time period by which the loan application shall be processed
andsanction communicated.
4. In case of rejection of loan application, provide reasons for the same.
5. Hand over sanction letter duly mentioning all sanction terms and Conditions
6. Share the rating of the customer, if any, and parameters adopted for the same.
7. Provide method of application of interest-monthly/quarterly/half-
yearly/yearlyetc., and also the periodicity of compounding.
8. Inform the borrower that changes in interest rate and changes in reference rate
to which the floating rate of interest is linked through any one or more of the
following means :
(a) Notice at the branches (b) Annexure to the Statement of Account (c) Letters
(d) E-mail (e) SMS (f) Website (g) Newspaper
9. Collect all the particulars required for processing the loan at the time of collecting
the loan application instead of peace-meal basis by providing a check list.

10.Provide amortization schedule at the time of sanctioning of the loan.

11.Provide authenticated copies of all the loan documents executed by the borrower
at the bank‘s cost.
12.Provide acknowledgement/receipt for documents to title deposited by the
borrower for creation of mortgage.
13.Provide acknowledgement for security documents like LIC Policies/NSCs etc.,
accepted at the time of availing the loan.
14.Provide acknowledgement for post dated cheques received from the Borrower
15.Return the unpaid cheques/post-dated cheques at the time of closure of loan
account
16.Return all the securities/documents accepted, within 15 days of the repayment
of all the dues and closure of loan account.
17.If any right to set off is to be exercised for any other claim, give due notice with
full particulars about the other claims and retain the securities/documents/title to
mortgaged property till the relevant claim is settled/paid.
18.Convey the request for transfer of borrowal account, concurrence or otherwise,
within Twenty One (21) days of receipt of request.
19.Take the written consent for insuring the asset financed by us and do not insist
for obtaining insurance from any particular insurance provider.
Guarantor: While accepting 3rd party guarantee, inform him about:

1. The amount of liability he will be committing to the Bank.
2. Circumstances in which he will be called upon to pay up the liability.
3. Time and circumstances in which his liabilities as a guarantor will be discharged
as also the manner in which he will be notified about it.
4. Keep him informed of any material adverse change/s in the financial position of
the borrower.
20 OPERATIONAL Annual limit of Expenditure under Advertisement Head/Publicity:

GUIDELINES FOR
ADVERTISEMENTS/ GM Headed Region -20 lakhs, DGM-10 Lakhs, AGM headed Region-5 lakhs
PUBLICITY FOR
REGIONAL OFFICES
21 Vehicle loans – Entry level Pre Sanction Due Diligence:

Adherence to ‗Due
Diligence‘ a) Applicant due diligence – covering compliance of KYC norms, verification of
measures antecedents, business status, VAT Registration Certificate, Tax Identification
Certificate (TIN), both issued by Commercial Tax Department, Monthly Return of
VAT, Trade License & other Certificates, Latest Income Tax Returns, Salary
certificate, Bank pass Book, documents produced for address proof & such other
vital documents on which credit decision is based.
b) Credit due diligence – involving mainly verification of financial track record,

credit history of the applicant, Banking and borrowing details, verification of
statement of accounts with the existing banks, CIBIL data and RBI Defaulters‘
List/SAL List, enquiries with peers, neighbours, competitors, business association, or
respectable known references and confidential enquiries both oral and in writing
from existing bankers/lenders.
c) Security due diligence – As a financing option, payment for purchase of new

vehicles through an established Dealer shall have the first preference. Branch
should verify the details of the dealer from the website to ensure genuineness.
Adequate care and caution shall have to be exercised while dealing with lesser
known Dealers in the area of operation. This can be done by discreet inquiries with

other dealers in the city/town who are in the same line of business and also by
directly calling the sales wing of the company manufacturing the vehicle.
d) The field functionaries may be permitted to avail the services of empanelled

Service Providers – such as – Valuers and Engineers and Due Diligence Verification
Agencies for doing the needful.
2.Mode of disbursement:
DD/RTGS/NEFT Mode A suitable letter to be addressed to the dealer as per the

Annexure attached herewith in all cases without fail.
The letter should be delivered to the dealers personally by the branch and
acknowledgement to be obtained. Original receipt from the
dealer/supplier/vendor duly noting our name as financiers for the amount
remitted/paid should be held on record together with the original invoice cum
delivery challan duly acknowledged by the borrower for having taken delivery of the
vehicle.
3.Post Sanction Supervision & Follow up:
22 MIS Policy of the Bank MIS policy is clearly defined with a definite framework of guidelines, policies or
practices, standards and procedures for the institution to maintain a consistent
approach to the development, use and review of MIS systems within the institution
23 Allowing operation in The emphasis of the revised guidelines is to hasten the process of identification of a
MSE units which are unit as sick, early detection of incipient sickness, and to lay down a procedure to be
under adopted before declaring a unit as unviable. Therefore, allowing operation in the
‗handholding operation‘ operative NPA limits of MSE units will enable such units to continue their business
so as to continue their and to allow operation in the account. Also, this will discourage the borrowers
commercial operation. from opening and operating account with other banks.
It is, therefore, felt necessary to allow operations in the MSE unit‘s operative limit
which is classified as NPA during the period of handholding, carrying out the viability
study and implementing the same or six months from the date of classifying the
account as NPA whichever is earlier, in case of viable units. This will enable such
units to continue their business and to operate their accounts. In other cases, the
operation may be allowed till the viability study is conducted and found non-viable
or three months from the date of classifying the account as NPA whichever is
earlier.
24 Collection of Meghalaya E-payment of Commercial Tax, Meghalaya is available through our V-Net Banking
State Government and will benefit our V-Net retail and corporate users in paying the commercial taxes
Commercial taxes through V-Net banking channel anywhere, and anytime.
through V-Net Banking
e-mode. The link for e-payment ―E-payment of Meghalaya‖ is available in our V-Net
Banking home page (https://www.vijayabankonline.in/index.html).
25 Launch of ‗Power Pair - To augment the low CASA level of the Bank, a five month long campaign, ‗Prove you
Recurring Deposit CARE – Bring CASA‘, was launched in November 2013 and over 2.5 lakh accounts,
Campaign‘, a two month including one lakh plus accounts canvassed under Vijayees‘ Week.
long campaign to
augment the retail The Power Pair - Recurring Deposit Campaign is being launched from 01
business of the Bank February 2014 to 31 March 2014 to leverage the 2.50 lakh new relationships,
established during the ‗Prove You Care – Bring CASA‘ campaign.
Branch should individually target these new customers and prevail upon them to

open RD accounts by highlighting the attractive features. A target of 1.25 lakh new
RD accounts has been fixed under the campaign.
Incentive: The top three branches under Metro, Urban, Semi-urban and Rural
categories will be awarded with trophies/ citations based on the quantum of
deposits canvassed. The names of winners will be declared in April 2014.
26 Launch of ‗‗Rekindle the

Relationship‘, No. of Accts Activated Rewards
from 01.2.2014 10 accts with active operations for 6 months thereon -
to17.3.2014 to Rewards/Mementos/Conveyance Charge to the extent of ` 1000/-.
reactivate
Inoperative/Inactive Above 10 accts with active operations for 6 months thereon -Rewards/ Mementos
accounts of more than /Conveyance Charge to the extent of `1500/-
three years old
27 Only information
required under Know It has come to the notice of Reserve Bank of India that some banks are seeking
YourCustomer (KYC) personal information / details from customers, which are not mandatory to assess
Norms / Anti-Money the risk profile of a prospective customer, leading to customer complaints of
Laundering invasion of privacy.
(AML)Standards /
Combating of Financing In compliance with the Reserve Bank of India directives, branches are advised not
of Terrorism(CFT)/ to insist upon the customers to submit information under ‗Part-III‘ of the Bank‘s
Obligation of Banks Account Opening Form which is optional in nature. However, there is no bar on the
under PMLA, 2002 to be customer furnishing the said information (Part-III) of their own volition.
obtained from customers
for opening their
accounts
28 SEFASU 2014 Operational Guidelines for Scheme for Extending Financial Assistance to
Sugar Undertakings, 2014 :
1. Purpose of loan: the loan will be utilized by the sugar mills for clearance of
cane price arrears of previous sugar seasons and timely settlement of cane price of
current sugar season.
2. Modalities and Extent of loan:

i) Loans will be sanctioned to the sugar mills, which have been functional during
2013-14 sugar season and the quantum of loan would be equivalent to last three
sugar seasons‘ excise duty, cess and surcharge on sugar (including notional
equivalence for exports or availed Cenvat).
ii) The loan duration would be 5 years including 2 years of moratorium.
iii) Loans sanctioned by 30th June 2014 and disbursed by 30th September 2014 by
the lending banks, pursuant to this notification, would be eligible for interest
subvention facility.
The Scheme carries interest subvention upto 12% or at the actual rate
charged by the banks whichever is lower, for the total duration of 5 years
including moratorium of 2 years.
3.Security for the loan: a)The loans will be backed by the existing security and
collaterals b) charge on the Fixed Assets of the Sugar Mill c) Personal Guarantee of
the Promoters/directors
29 Rajiv Rinn Yojana The Scheme envisages to provide a fixed interest subsidy of 5% (500 basis

points) on interest charged on the admissible loan amount to EWS and LIG
segments to enable them to buy or construct a new house or for carrying
out addition (of a room / kitchen /toilet / bathroom) to the existing
building.
1) Housing Loan: 5% Interest subsidy for a maximum amount of Rs.500000/-

Sanctioned to EWS/LIG borrowers.
2) Coverage under Credit Risk Guarantee Fund Scheme for Low Income Group
is compulsory.
3) This scheme supersede the earlier scheme- Interest Subsidy Scheme for
Housing the Urban Poor 2008(ISHUP).
4) The economic parameter of EWS [Economically Weaker Section (EWS)] is

defined as households having an average annual income up to Rs.
1,00,000/- and the economic parameter of Low Income Group (LIG) is
defined as households having an average annual income between
Rs.1,00,001/- up to Rs.2,00,000/-.
5) The National Housing Bank (NHB) & Housing & Urban Development
Corporation Ltd.(HUDCO), have been designated as Nodal Agencies for
administration & release of subsidy to the Lending Institution. Our Bank has
signed MoU with HUDCO for implementation of the Scheme.
6) A maximum loan amount of Rs. 8,00,000/- for a LIG individual will be

admissible. However, subsidy will be given for loan amount up to Rs. 5 lakhs
only.
7) Mortgage of the dwelling unit may be accepted as primary security.

However, there would be no collateral security/ third party
guarantee for loans under RRY up to Rs.5 lakhs. No levy of
prepayment charges would be permitted.
8) The Scheme will currently close on March 31, 2017, the last year of the 12th
Five Year Plan Period (2012-17).
9) Further a onetime lump sum amount of Rs. 500 per sanctioned

application would be paid to the Banks towards their expenditure in
handling such loans.
30 Staff Frauds Increase in staff frauds alarmingly and also adversely affecting the image of the
bank in the eyes of Regtulatory Authorities, Minsitry of Finance and Law
Enforcement Agencies – Preventive Measures.
It is observed that the majority of the staff fraud cases is due to violation of
systems and procedures laid down by the bank by the staff, which allows the
fraudsters to perpetrate the fraud, such as sharing of passwords, non verification of
daily reports, non monitoring of staff accounts, not tallying of sensitive accounts /
sundry accounts etc.
31 Carrying out of Due Branches are required conduct independent due diligence of the borrower whether it
Diligence and is lending under sole arrangement or consortium/JLA or syndication or multiple
complying banking arrangement and capture the same in the credit proposal. In the case of
KYC norms. corporate borrowers, such due diligence should invariably be carried out in respect

of parent company in respect of SPVs, firms or corporates holding the shares in the
borrower company and all its directors.
Likewise, the complete due dliglience should be carried out in respect of

individual partners in the case of partnership firms.
32 WDRA Scheme for financing farmers against Warehouse Receipt issued by Central,
State warehouses and warehouses of Co-operative Societies registered
with Warehousing Development & Regulatory Authority (WDRA)
1.Objective/ purpose: Financing farmers against pledge of their farm produce

covered under Negotiable Warehouse Receipts (NWRs) issued by Central,
State warehouses and warehouses of Co-operative Societies registered
with WDRA.
2. Eligibility: Individual farmers or SHGs / JLGs of farmers
3.Nature of facility: Demand Loan
4. Assessment of Limit:
80% of the value of the farm produce as given in the warehouse receiptOR
80% of the market price prevailing on the date of extending credit facility OR
80% of Minimum Support Price fixed by the Govt., (wherever available), whichever
is less, subject to maximum of Rs.50 lakh per farmer.
5. Margin: 20% of the value of agricultural produce
6.Security:
Upto 1 Lakh Plegde

1 to 5 lakhs Collateral security of landed property may be
waived and instead a suitable third party
guarantee be obtained.
Rs.5 lakh to mortgage of Land/charge, wherever Statutes
Rs.10 lakh provide for creation of such charge, covering
atleast 25% of the loan amount.
Rs.10 lakh mortgage of Land/charge, wherever Statutes
upto Rs.50 provide for creation of such charge, covering FULL
lakh VALUE of the loan amount.
7.RATE OF INTEREST:
Loan Slab Proposed Rate for the scheme

Upto Rs.50000/- BR presently 10.20%
50000 to Rs.2 Lakh BR+0.50% presently 10.70%
Above Rs.2 lakh BR+1.00%
presently
11.20%
8.Repayment period: To be repayable within 12 months from the date of

disbursement or the due date of warehouse receipt or normal shelf life of the
commodity, whichever is earlier. Maximum repayment period is 12 months. No
rollover is permitted.
9. Classification:- Direct Agriculture under Priority sector.

10. Opening of Account under CBS platform:

New Scheme Code WR742 with short Name- AG.PROD.PLEDGELOAN-WDRA
has been created for this product.
33 Large Credits/Large All large transactions are to be noted in a separate register which is to be kept
turn over in the staff in the branch head‘s custody for verification by inspecting officials/RO
accounts held singly or Executives.
jointly with others.
34 Medical qualification Indian citizens who intend to obtain primary medical qualification from any foreign
from any foreign country on or after 15th May 2013 are required to fulfill the Eligibility Criteria for
country - admission to MBBS course as laid down in the Medical Education Regulation, 1997.
Guidelines
Removal of monetary Removal of monetary ceiling for reimbursement of expenses incurred for
35 ceiling for Petrol / Conveyance to officers up to Scale III and Executives in scale IV.
reimbursement of
expenses incurred for After removal of the monetary cap, the quantum of petrol (in litres) eligible for
Petrol / Conveyance owning four wheelers & two wheelers is furnished in Annexure I & II respectively.
36 Penalty on premature Based on the representations received from the field functionaries, it has now been
closure of domestic term decided to waive the penalty of 1% on premature closure of domestic term
deposits deposits held in the name of the following customers :
1. All Central and State Government Departments / Ministries / Undertakings
2. All Public Sector Undertakings (PSUs)
3. Autonomous Corporations of Central and State Government
4. Quasi-Government Undertakings
37 NABARD has introduced In view of the nurturing/reviving the dormant SHGs, NABARD vide its circular no.
an incentiveScheme for 251/mCID-16/2013 dated 29.11.2013 has introduced an intensive scheme for
tracking and revival tracking and revival of dormant SHGs on a selective basis. NABARD would provide
ofdormant SHGs promotional assistance of Rs 3000/- per SHG revived as incentive to Banks.
Sanctions / Approvals for the proposals received upto 31st March 2014 will only be
considered by NABARD on selective basis.
NO TDS on Service Tax Central Board of Direct Taxes clarified that wherever, in terms of the agreement
38 Component /contract between the payer and the payee, the service tax component comprised in
the amount payable to a resident is indicated separately, tax shall be deducted at
source under Chapter XVII-B of the Act on the amount paid/payable without
including such service tax component.
Therefore no deduction of tax at source (TDS) be made on service tax component

comprised in the amount paid/payable to a resident if indicated separately. Tax shall
be deducted at source on the amount paid/payable without including such service
tax component.
39 Scheme for Extending In connection with the SEFASU 2014, Department of Food & Public
Financial Assistance to Distribution has provided three input forms for claiming subsidy.
Sugar Undertakings –
2014‘ (SEFASU 2014)‘ Also the Nodal Bank – SBI has provided the name of the Nodal Officer and
address of the Nodal Branch for claiming subsidy.
40 Charges on SMS Alerts Service Charges on SMS alerts are modified w.e.f. the quarter ending 31.03.2014.

It has been decided to modify the service charges on SMS alerts as follows with
effect from the quarter ending 31.03.2014.
Category of Account Charges
Current / OD / CC ` 15/- per quarter
Savings Bank Account ` 10/- per quarter
Staff SB /OD A/cs, V-Basic SB, V-Basic SB Small A/cs, Platinum

CA/SB, Premium SB A/cs, Pension a/cs are exempted from levying
SMS alerts charges.
41 Jewel Loan Rate of Interest on Jewel loan other than Agriculture purpose:
AMOUNT RATE OF INTEREST

NO CAP (and Also no breakup upto 2 BR+1.80%=12.00%
lakhs & above 2 lakhs)
42 Reiteration of The branches while opening Bank Guarantee and Letters of Credit under
operational guide lines the sanctioned limit should verify the work orders/purchase orders.
on Nonfund
based business In case of performance bank guarantees, branches should inspect the worksite and
the progress of work.
An analysis of actual physical progress of work vis-à-vis the implementation

schedule should be conducted atleast once in a quarter. Any delay in the
implementation should be analysed with reasons. Any bottlenecks faced by the
borrower should be discussed during the inspection and recorded. Failure to do so
will compel the Bank to accept whatever reason that the borrower shall putsforth at
a later date for the delay in implementation of the project.
As far as possible, the credentials of the supplier should be made before opening
LCs. Also in respect of performance guarantees under consortium arrangement
periodical consortium meeting should be held for monitoring the status of
implementation of the project.
43 Extra caution be For financing goods, Lorry Receipts (LRs) and Railway Receipts (RRs) are preferred
exercised while documents by Banks for evidence of movement of goods. However, in the following
acceptingdelivery circumstances delivery challans are enclosed by the suppliers to the bills drawn on
challan instead of the buyer as an evidence of change of hands of the specified goods and the bankers
Lorry/Railway do accept the delivery challan for financing purposes :
receipts as evidence
of goodstransported. a. When the goods are locally transported and hand delivered
Wherever the goods b. In other cases, for various reasons the goods are first delivered to the buyer
are received under subsequently the supplier draws bill on the buyer by enclosing delivery challan.
delivery challan, such
goods are invariably For financing purposes, the bankers prefer Lorry receipts and Railway Receipts
inspected and report because these have the status of title to goods and are endorsed in Bank‘s favour
be held by the supplier.

on record.
On receipt of payment the banker endorses the LRs/RRs in favour of the
borrower/buyer facilitating delivery of the goods to the buyer. In respect of Bills
Purchase and LCs issued, if the payment is not forthcoming the banker is entitled to
take possession of goods himself. Whereas in the case of delivery challan the goods
stand delivered to the buyer.
44 Notification of Nodal As required under the Scheme of SEFASU 2014 notified by Department of
Officer and Nodal Branch Financial Services, our Barakhamba Road, Delhi branch is nominated as
for smooth Focal Point Branch of our Bank for smooth implementation of SEFASU 2014.
implementation of Also the competent authority has nominated the DGM, Barakhamba Road as
SEFASU 2014. the Nodal Officer
45 Implementation of National Horticulture Board (NHB) has revised the operational guidelines of
National Horticulture the following schemes:
Board (NHB)
Schemes-Revised i. Scheme for Development of Commercial Horticulture through Production
operational & Post Harvest Management of Horticulture produce
guidelines.
ii. Capital Investment Subsidy Scheme (CISS) for Construction/ Expansion/
Modernization of Cold storages / storages for Horticultural Produce
46 Self Employment Govt of India has revised the Central Sector Self Employment Scheme for
Scheme for Rehabilitation of Manual Scavengers (SRMS).
Rehabilitation of
Manual Scavengers Cash Cash assistance of Rs. 40,000/-, for
(SRMS) Assistance identified manual scavengers, one from
each family, payable in monthly
installments of Rs. 7,000 after the
identification of manual scavenger.
Maximum Rs. 10 lakh. (Rs.15 lakh in case of
Project sanitation related projects like Vacuum
Cost loader, Suction Machine with
vehicle,Garbage disposal vehicle, Pay &
Usetoilets etc.)
Provision of Back-end Capital Subsidy as given
Capital below:-
Subsidy
Projec Rate of Subsidy
t
Cost
Upto Rs 50% of the
2 project cost
lakh
Rs 2 Rs 1.00 lakh +
lakh 33.30% of the
to Rs 5 project cost
lakh between Rs 2-
5lakh
Rs 5 Rs 2.00 lakh +
lakh 25% of the
to Rs project
10 cost between Rs
lakh 5-10lakh
Rs Rs 3.25 lakh
10lakh

to Rs
15
lakh
Rate of Interest
For Project Cost WOMEN OTHE
upto RS
1 Upto Rs.25,000 4% 5%
2 Above Rs.25,000 6% 6%
Moratoriumperiod for Upto two years

repayment of
loan
Maximum period of Two Years
Training
Stipend Rs. 3,000 p.m.
during
training
Repayment For projects costing upto Rs. 5lakh – 5
period years.
For projects costing more than Rs. 5
lakhs - 7 years.
(Repayment period is inclusive of

moratorium period mentioned above)
47 National Rural RBI has issued guidelines on operationalization of Interest Subvention

Livelihood Mission Scheme under NRLM in category I (NRLM intensive) and Category II (NRLM
(NRLM) – non-intensive) Districts.
Operationalization of
Interest Subvention Interest subvention Scheme:
Scheme.
NRLM provides interest subvention to cover the difference between the Lending
Rate of the banks and 7%, on all credit from the banks/financial institutions
availed by NRLM compliant women SHGs, for a maximum of Rs 3,00,000 per
SHG. This will be available across the country in two ways:
i. Category I: In 150 identified NRLM intensive Districts (List of the Districts

enclosed as Annexure – I), banks will lend to all women SHGs @7% upto an
aggregate loan amount of Rs 3.00lakh. These SHGs will also get additional interest
subvention of 3% on prompt payment, reducing the effective rate of interest to 4%.
ii. Category II: In the remaining non-intensive Districts, NRLM compliant women
SHGs will be registered with concerned State Rural Livelihood Missions
(SRLMs). These SHGs are eligible for interest subvention to the extent of difference
between the lending rates of the Bank and 7% for loan upto Rs. 3.00 lakh, subject
to the norms prescribed by the respective SRLMs. This part of the scheme will be
operationalized by SRLMs.
Small Farmers‟ Agri- SMALL FARMERS‟ AGRI-BUSINESS CONSORTIUM (SFAC)

48 business Consortium Small Farmers‘ Agri-Business Consortium (SFAC) is a Society under Department of
(SFAC) has Agriculture and Cooperation, Ministry of Agriculture, Govt. of India has the mandate
introduced revised to promote Agribusiness projects in the country. In order to facilitate agribusiness
operational guidelines development in the country, SFAC has envisaged the following schemes:
on:
1. Venture Capital 1. Assist agripreneurs by way of Venture Capital Assistance (VCA) to make

Assistance (VCA), and investments in setting up agribusiness projects through financial participation,and
2. Providing financial
support for preparation 2. Provide financial support for preparation of bankable Detailed Project Reports
of bankable (DPRs) through Project Development Facility (PDF).
Detailed Project
Reports (DPRs).
49 Credit Appraisal IBA informs the member banks that a large number of frauds have been
Standard – Handing committed in borrowal accounts where the bank‟s documents were handed
over of over to the borrowers for verification purposes.
documents to the
customers for The field functionaries are once again advised not to handover the documents to the
verification borrowers for obtention of reports, collection of documents, noting of lien etc.
purposes whereby the fraud that could be perpetrated through such channel can be totally
neutralized.
50 Payment of invoked  The payment under the invoked guarantees should be made within 24 hours
guarantees (ie.Within 1 day) of receipt of written communication from the beneficiary
invoking the guarantees, provided the invocation is made strictly in terms of
the guarantee and the invocation is not preceded by legal order restricting
payment against such guarantee.
 The payment under the invoked guarantee should be invariably made by

means of RTGS/NEFT/Demand Draft/Pay Order only.
 In genuine case where the legal advice is really needed the payment under
the invoked guarantee Should be made within maximum of 2 days of receipt
of intimation of invocation.
 Immediately on payment of the invoked guarantee, notice under Registered

Ack.Due post, demanding the repayment of the payment made by the bank
under the invoked guarantee should be sent to the borrower.
 The matter of payment of invoked guarantee should be intimated to the

respective Regional Office and Credit (MS & C) on the same day.
 Initiate the required recovery steps where the repayment is not

forthcoming.
The RBI has warned the banks that it would take deterrent action on any instances
of non-compliance of instructions with regard to honouring commitment under
invoked guarantees.
51 Corporate Social Delegation Powers(Non Lending)for sanctioning the Donations under CSR activity is
Responsibility(CSR)- modified.
Donations Prior permission/sanction to be obtained from the competent authority in
respect Of the following revenue expenditures:
(` in lakhs)
Particulars AGM/DGM/ GM ED CMD
GM Heading
Heading Marketin
Regions g&
Publicity
Div, HO
For Donations/CSR

Activities NIL 0.25 3.00 5.00
52 CSR CORPORATE SOCIAL RESPONSIBILITY (CSR):
CSR acknowledges the activities that contribute to social value creation,

environment protection and sustainable development.
53 Interest subvention Revised guidelines on Interest Subvention Scheme for Short term crop loans up to
Rs 3 lakh disbursed during the year 2013-14.
In view of the clarification received from RBI, Interest Subvention Scheme for Short
term crop loans up to Rs 3 lakh has been revised. Main features are as under:
 2% interest subvention for Short term crop loans disbursed during 2013-14
and
 3% additional interest subvention for prompt payment.
 Under Vijaya Kisan Card (VKC) / Vijaya Planters Card Scheme (VPC), loan
components relating to crop production expenses and post-harvest
expenses i.e amount upto 10% of crop production limit, are only eligible for
Interest Subvention.
54 New Retail Loan Eligibility-

Scheme “Vijaya 1) Wife of home loan borrower.
Mangala” linked to 2) In case home loan is borrowed jointly by husband and wife, then wife is
home loan customers. eligible.
3) In case of joint male borrowers, their wives jointly can avail the loan.
4) In case of housing loan sanctioned to a single female borrower, she is also
Scheme Code eligible for personal loan.
SL932 5) In case of joint female borrowers, they can avail a personal loan jointly
(individually Personal loan cannot be availed).
Loan Amount- Maximum loan of Rs 3.00 lacs OR 10% of Home Loan limit
sanctioned Whichever is lower.
Security: 1) Personal guarantee of spouse/all co-borrowers of housing loan

account and
2)Continuing security of housing loan property already mortgaged to us.
Margin: NIL RATE OF INTEREST: BR+2.50=12.70% at present-Floating
Repayment: Repayable in maximum of 60 equated monthly installments.

However, the due date should not be beyond the due date of existing home loan
account linked to the personal loan.
The loan can be availed any number of times during the tenure of home loan
account. However, there should be a minimum gap of 12 months between the
availment of two loans.
55 New Retail Loan V CASHEW for Cashew processing units / Industry under MSME
Scheme “V Cashew”
Eligibility Individuals, Associations,
Proprietorship, Partnership concerns,
LLPs, HUF, Private Limited Companies,
Trusts, Association of Persons (AOP)

etc.,
Unit should be Micro, Small or Medium
Enterprises in manufacturing sector as
per MSMED Act, 2006
Purpose To meet domestic credit requirements-
Both working capital and term loan
requirements of cashew processing
units (both existing and new) i.e.
construction of factory building,
purchase of
machinery/equipments/vehicles etc.,
and working capital requirements
Nature of facility Fund based - Secured Loan/Mortgage
Loan/Cash Credit (Hypn) etc., as the
case may be
Quantum of finance Maximum of Rs 500 lakhs
Assessment of As per prevailing guidelines for cashew
finance industry / processing units.
Security Loans covered under CGTMSE:
1. Hypothecation of equipments /
machinery / vehicle / stock
2. Only primary security
associated with business as per
CGTMSE Guidelines. No
collateral security or third party
guarantee shall be obtained.
Loans upto 10 lacs to MSE Sector

should be compulsorily covered
under CGTMSE
Loans not covered under CGTMSE:

1. Hypothecation of
equipments/machinery/vehicle/
stock
2. Collateral: Mortgage of
immovable property value of
which should be minimum 50%
of the limit sanctioned.
3. Personal/Third Party
Guarantee: To be obtained as
per prevailing guidelines
Margin Term Loan:
i) Up to Rs 25000/- : Nil
ii) Above Rs 25000/- up to Rs 10
lacs: 15%
iii) Above 10 lacs upto 1.00 Crore:
20%
iv) Above 1 Crore: 25%
Working Capital: 25%
Rate of Interest Loans covered by CGTMSE -

BR+0.30=10.50%
Loans not covered by CGTMSE -
BR+1.30=11.50%
Delegation of powers As applicable to Secured Loan
Insurance The full value for the hypothecated

stock/movables and fixed assets shall

be insured for fire, riot and wherever
required against other appropriate
hazards with bank clause
Processing/document As per extant guidelines
ation/inspection
charges/other
charges
Repayment / Working Capital:
Renewal / Review Account to be reviewed every 12
months and renewal once in 3 years.
Term Loan:
Maximum repayment period of 7 to 10

years including moratorium period not
exceeding 12 months.
Interest to be serviced during
moratorium period also.
Term loan to be repaid in equated
monthly installments.
Classification Priority/Non-Priority as the case may

be
Authority to issue General Manager-Credit-Retail & MSME
clarification
Deviation Authority HLCC
Scheme Code Mortgage loan – ML857, Secured Loan
– SL933,
Cash Credit Loan – CC629
56 Election Expenditure Branches are required to open the accounts of the candidates and issue the required
Monitoring:Challenges in number of cheque books. Obtain the specific mandate for disclosure of information
Intelligence Gathering of their account.
and Sharing
57 CGTMSE COMPREHENSIVE CIRCULAR issued.
58 Three Variant Current Revision in features of „Three Variant Current Account‟ Deposit scheme to
Account expand the client base of the Bank.
Cash Remittance Limit : NOW MADE ―FREE‖

Cash HANDLING Charges : NOW MADE ―FREE‖ *
(* This facility shall not be extended to Petrol pumps, Restaurants, Wine-shops,

Amusement Parks and other heavy cash depositing accounts.)
130 Deposits Policy on Pricing of Liability Products – Deposits.

59
59 E-commerce cashback To promote Debit Card usage for e-commerce transactions, a campaign is being
promotion 2014 for launched for ecommerce transactions:
VISA

Debit Cards Name of the campaign : E commerce cash back promotion 2014
Campaign Period : March 15, 2014 to April 14, 2014
April 15, 2014 to May 14, 2014
May 15, 2014 to June 14, 2014
June 15, 2014 to July 15, 2014
60 Opening of ―V-Basic Hence, it is reiterated to accept study certificate with photo identity of the student,
Savings Bank Deposit issued by the head master / principal of the respective educational institutions as
/V-Basic one of the valid documents, for opening such accounts.
Small Account‖ –
additional guidelines
61 KYC/AML Reiterating the Head Office Guidelines on KYC/AML for up-dation in the CBS
System.
(LIST of KYC Circulars at a glance)
62 Scheme for exten ding As advised by Department of Food and Public Distribution, IBA has clarified
Financial Assis tance to that even if the sugar mills are exempted from payment of excise duty,
Sugar Under takings– member banks may consider loan applications of sugar mills, if otherwise
2014‘ (SEFASU 2014)‘ eligible under SEFASU 2014.
63 Guidelines for providing relief on interest outstanding component as on 1.12.2013

for all Educational Loans sanctioned/availed up to 31.03.2009 & outstanding as on
31.12.2013.
64 Jewel Loan Rate of Interest on Jewel loan for agriculture purpose – Other than under
Interest
Subvention Scheme
Purpose RATE OF
INTEREST
1 For short term crop loans up to Rs.3 lacs 7% per annum
where interest subvention is available
2 For Agriculture & Allied Activities other than short term crop
loans mentioned under Sl No (1) above
a) Upto & inclusive of Rs.2 lacs Base
Rate+0.25=10
.45%
b) >Rs.2 lacs & inclusive Rs.5 lacs Base
Rate+0.55=10
.75%
c) >Rs.5 lacs Base
Rate+1.80=12
%
Rate of Interest on Jewel loan other than Agriculture purpose:

AMOUNT RATE OF INTEREST
NO CAP (and Also no breakup upto 2 lakhs & BR+1.80%=12.00%
above 2 lakhs)
65 CASA Campaign ‗CASA – THE FINAL MILE‘ campaign to be observed from 17th to 31st March 2014 to
augment CASA level of the Bank
The minimum targets for the branches, based on population category, is

furnished below.

Metro Urban Semi-Urban Rural

No. Balance No. Balance No. Balance No. Balance
of per of per of per of per
A/Cs account A/Cs account A/Cs account A/Cs account
175 Rs.1,000/- 150 Rs.1,000/- 125 Rs.1,000/- 100 Rs.500/-
Declaration of Result: The Result shall be declared in the month of July

2014. The balance in the account shall be maintained at least up to 30th
June 2014.
Type of SB/Current Account to be canvassed: All Current & SB Account.
However, Basic SB and V-GenUTH SB accounts will not be reckoned for the
recognition.
66 Guidelines on Bullet Non-Agriculture Loans against Gold Ornaments and Jewellery:

Repayment of Non-
Agricultural Jewel  The amount of loan sanctioned should not exceed Rs 1.00 lakh at any point
Loans of time.
 The period of the loan shall not exceed 12 months from the date of
sanction.
 Interest will be charged to the account at monthly rests but will become due
for payment along with principal only at the time of maturity.
 Banks should prescribe a minimum margin to be maintained in case of such

loans and accordingly, fix the loan limit taking into account the market value
of the security (gold ornaments), expected price fluctuations, interest that
will accrue during the tenure of the loan etc.
 The account would be classified as Non-Performing Asset (sub-standard
category) even before the due date of repayment, if the prescribed margin
is not maintained.
 Banks shall recognise interest income on such loans in their profit and loss
account only on collection.
 Such loans shall also be governed by other extant norms pertaining to
income recognition, asset classification and provisioning which shall be
applicable once the principal and interest become overdue.
 GL CODE : The account shall be opened under a separate scheme code ‗JL
706‘ (JLNon-Agri) which will be reflected in GL 443528 with the features as
per RBI guidelines.
 A minimum margin of 33% or Scale of finance per gram as circulated from

H.O. from time to time, whichever is lower.
67 Staff Welfare Measures. Modification in existing staff welfare measures and introduction of new staff welfare
measures under vijaya bank staff welfare fund trust with effect from 01.04.2014
68 Rationalization of 1) A Term Loan (Pronote Loan) in lieu of existing Pronote Loan, Special
existing Staff Pronote Loan and Overdraft limit against NSCs is introduced. The
Overdraft facility, eligibility criteria, quantum of loan & rate of interest on Term Loan is at
Pronote Loan, Special par with existing Staff Overdraft facility.
Pronote Loan,
Overdraft limit 2) Maximum tenure of Term Loan is seven years and can be renewed after
against NSCs and two years.

Term Loan converted

out of Staff Overdraft 3) On due date of renewal of Staff Overdraft facility (two years) and at the
facility. time of seeking renewal of new Term Loan (after two years), staff
member has the option to switch over from one scheme to other. i.e.
from SOD to Term Loan & vice-versa.
4) Staff members who have at present availed Pronote Loan, Special

Pronote Loan and Overdraft limit against NSCs have the option to avail
either SOD or new Term Loan (Pronote Loan) facility only.
5) Staff members who have converted the SOD limit to Term Loan earlier or
who have availed Pronote Loan, Special Pronote Loan and Overdraft limit
against NSCs are given one time option to be exercised before
30.04.2014 to avail fresh SOD or new Term Loan.
Quantum
22 months of basic pay last drawn subject to a maximum of the limits prescribed
below for both SOD and Term Loan (Pronote Loan) facility.
Category Maximum Limits
Sub- Staffs Rs.1,50,000
Clerks cadre Rs.2,75,000
Officers Rs.4,50,000
69 SHARING OF KYC Appreciating the need and importance of KYC documents for lodging FIRby the
DOCUMENTS BY BANKS paying Bank in the event of fraud with Police Authorities, the member banks ARE
IN FRAUD CASES, by advised to share KYC documents with the Paying Bank as and when the Paying Bank
Collecting Banker with requests for the same with collecting bank in incidents of frauds where the
the PAYING BANK. Collecting Bank has collected the fraudulent instrument.
70 Debit Card Charges Annual charges of Rs.95/- will be charged for Debit Cards except for the following:
1. Staff accounts (SB 102 & SOD 810 scheme)

2. Financial inclusion schemes & Kisan Debit Cards (SB 105, SB 117, SB 118, SB
119, SB 123
& SB 124, VK701, VK865, VK692)
3. V Pay roll account schemes (SB 114)

4. HNI customer accounts (SB 121)
71 For all branches and The Chief Electoral Officer, Karnataka has directed Banks to furnish the information
offices in Karnataka of every deposit /withdrawal made by cash exceeding Rs. one lakh from every
state. branch located in the state.
72 Withdrawal of Festival All the retail deposit products offered under the campaign i.e.; V-Vaibhav, V-Siddhi
Bonanza 2013 & V-Samman stand withdrawn effective from 1st April 2014.
73 Additional rates of 1) No additional interest rates will be given on bulk term deposits
interest for Sr. Citizens i.e.for deposits of ` 1 crore & above.
Domestic/ NRO Term
Deposits 2) The additional interest rate for the deposits below ` 1 crore has
been increased from 0.25% to 0.50% p.a.
3) The additional interest rates will be applicable only for deposits

for minimum period of 1 year and maximum of less than 5 years

only. The deposits for the maturity period of less than I year will not be
eligible for the additional rate of interest.
4) The above terms are also applicable to Senior Citizen staff. However
interest rate for senior citizen staff will be 1.50% p.a.
74 Conclusion Of Grand Sl Scheme ROI from 01.04.2014 Remarks

Festival Bonanza - No
Rate of Interest for 1. Vijaya Home Loan BR+0.05=10.25% p.a.(floating) Waiver of Pro
Vijaya Home Loan, V- Charges with
Wheels & V-Equip from 01.04.20
From 01.04.2014 2. V-Wheels BR+0.40=10.60% p.a.(floating) Waiver of Proce
documentation
Charges with
from 01.04.20
3 V-Equip Where Salary is credited: Waiver of Proce
BR+2.30=12.50% p.a.(floating) documentation
Charges with
Others: from 01.04.20
BR+3.30=13.50% p.a.(floating)
75 Retail Lending Schemes HLCC (Head Office Level Credit Committee): Deviation with regard to quantum
– Devia tionAuthority– of finance over and above the ceiling prescribed under each retail lending scheme.
Dele gation of Powers to
approve deviations / GMLCC (General Manager Level Credit Committee): All deviations and
relaxations. relaxations except the quantum of finance over and above the ceiling prescribed
under each retail lending scheme.
Concession in rate of interest and charges shall be as per prevailing extant

guidelines as below:
Rate of Interest GMLC Concession up to 0.50% but

C not below the Base Rate
EDLCC Concession above 0.50% up
to 2% but not below the Base
Rate
HLCC Concession of above 2% up to
the Base Rate
Charges GMLC Concession up to 5% of

C applicable charges
EDLCC Concession above 5% up to

50% of applicable charges
HLCC Concession above 50% up to
100% of applicable charges
76 Repayment norms – Non-Agricultural Jewel Loans shall be repaid in not exceeding 30 equated monthly
Non-Agriculture loans instalments. Non-Agricultural Jewel Loans upto Rs.1.00 lakh shall have the
against Gold additional option of Bullet Payment also.
ornaments and Jewel

77 1) All Savings Bank and Current accounts, without any transaction in

the account for over two years from the date of last credit / debit
entry (other than crediting of periodic interest or debiting of
service charges), to be classified as inoperative accounts.
2) Nomenclature of ‗Dormant Account‘ dispensed with.
3) Branch staff should exercise caution while dealing with inoperative

accounts and operation in such accounts may be allowed only after due
diligence as per risk category of the customer. However, customers
should not be inconvenienced due to the said classification
78 Ministry of Rural NABARD is implementing a scheme of promoting & supporting Women Self Help
Development, GoI has Groups in Backward Districts of India by Leveraging NGOs as Business Facilitators.
agreed to bear the cost A service charge at 5% p.a. on net outstanding credit is to be paid by the bank to
of service charge of 5% NGOs. This 5% service charge to be payable to NGOs shall now be borne by Ministry
payable to NGOs of Rural Development, GoI.
selected by NABARD for
WSHG imple mentation
in the150 NRLM
intensive Districts.
79 Revised Policy on Some of the outsourced activities in the Bank include Appointment of Seizing /
―Managing Risks in Recovery Agents, Processing of Dividend/Interest Warrants, Data Processing, Back
Outsourcing of Financial Office related activities, Credit Card Transaction Authorization. Besides financial,
Services‖. some technical / techno-financial services like Facility Management Services for
CBS, ITMS, HRMS, IRMS, Data Centre, Network Maintenance, Hosting the Bank‘s DR
Facility at Mumbai, SWIFT Services, are also outsourced.
Based on the RBI guidelines on managing risks in ―Outsourcing of Financial Services

by Banks (OFSB)‖ a comprehensive policy was evolved by the Bank vide Circular
No.112/2007 dated 25.06.2007. Subsequent changes in guidelines by RBI, various
developments in the Bank, etc. has given rise to revision in the policy.
80 Revised Operational Risk RCSA is a coordinated risk assessment process that ensures a single standard for
Management Policy and managing risk and control that enables the Bank to manage, monitor the activities
Guidelines on Risk & effectively and to optimize resource utilization besides meeting the regulatory
Control Self Assessment requirements.
(RCSA), Key Risk
Indicators (KRI), Loss
Data Management (LDM)
and Scenario Analysis
(SA)
81 Caution of Advice of Caution Advice should be treated as a confidential document and contents
RBI. of the caution list of RBI should not be divulged to the customers/parties in
any manner of whatsoever.
It is reiterated that the caution advice of RBI circulated by HO by way of Circular

Letter is to be strictly treated as a ‗Confidential Document‘ in the personal custody
of the branch head. Further under no circumstances, appearance of the applicant
borrower‘s name in the caution advice of RBI should be revealed in any form to the
applicant borrower.

82 Parliamentary Elections- Monitoring of Election expenditure-Information on deposit and withdrawal of cash

2014 exceeding ` 1 lakh – Reporting. The consolidated report will be sent to District
Election Officers by LDMs on a daily basis with a copy to the Chief Electoral Officer,
of the concerned state.
83 In the Ninth Meeting of the Financial Stability & Development Council under the
chairmanship of Hon‘ble Finance Minister held on 04.02.2014, among other,the
Council has observed:
 PSU banks give 75% of advances but accounted for nearly 90% of
cumulative amount of frauds as at the end of March 2013, which is a
concern.
 Further, the amount of due diligence done by PSU banks while going to
aproject may not be adequate whereas private sector banks are far more
nimble in protecting themselves both at the time of appraisal and also
postdisbursement monitoring.
It is once again reiterated that the field functionaries should give utmost importance
for due diligence,prescribed credit appraisal standard and also ensure proper post-
disbursal
monitoring of loan accounts.
84 Launch of ‗Vijaya 555‘, a 1) 9.25% p.a. with no additional interest benefit for senior
555 day term deposit citizens/staff/ex-staff.
product to augment the 2) No pre-closure penalty.
retail business of the 3) However, if the deposit is closed before maturity, interest shall be paid at
Bank the applicable card rate, that was prevailing at the time of accepting
deposit, for the period for which the deposit remained with the bank or
contracted rate which ever is less.
4) Renewal : No auto-renewal / renewal / premature renewal facility.
5) Prior permission needs to be obtained by branches - From

respective Regional Offices for accepting deposits of ` 1
crore to ` 5 crore under the scheme.
6) Prior permission needs to be obtained by branches - From

Treasury Management Dept., HO, for accepting deposits of
more than ` 5 crore under the scheme by routing the same
through the respective Regional Offices.
7) Maximum deposit per customer ID should not exceed ` 10

crore
85 TELE BANKING

86 Suit filed accounts Our bank (DIT, HO) has come up with a Suit Filed & Decreed Accounts software
Reporting system for systematic monitoring of suit filed and decreed accounts. As AUC data not
available in Finacle, Branches with AUC data have to send the details to HO for
updation in the said software.
87 Implementation of Online fund management and payment system for the plan schemes of Government
Central Plan Scheme of India.
Monitoring
System(CPSMS) In Brief about CPSMS
The Central Plan Scheme Monitoring System (CPSMS) is a Government of India
public Financial Management reorganization, which is being implemented by the
Office of Controller General of Accounts, Department of Expenditure, Ministry of
Finance.
The scheme monitors programs in the social sector and provides greater
transparency and accountability of the funds disbursed under various Plan Schemes
from Government of India to different State Governments/Special purpose Vehicles
(Societies)/Autonomous Bodies/NGOs etc. CPSMS provides a platform for making
payments directly to the bank accounts of the agencies/beneficiaries registered on
the CPSMS portal under various social sector schemes.
88 Reimbursement of
Halting Allowance &
Lodging Expenses.
89 Launch of ‗Back to Eligibility:

School‘ Deposit Minimum No. of Accounts and Amount to be canvassed
Mobilisation
campaign tocanvass Population V-GenUTH Accounts of
accounts of educational Category Savings Parents/Guardians
institutions, students& Account
parents, Metro / Urban 1000 V-GenUTH 100
Accounts Parents/Guardian
with a balance Accounts with a
of balance
Rs.500/- per A/c of Rs.2000/- per A/c
1000 V-GenUTH 100
Semi - Accounts Parents/Guardian
Urban/Rural with a balance Accounts with a
of balance
Rs.100/- per A/c of Rs.1000/- per A/c
Incentive : Top Employee from each Region on achieving the allotted targets under

both of the above shall be eligible for a study tour within India.
90
General Transfer List of Branch Managers
91 Jewel Loans Valuation of gold ornaments/ jewellery based on average closing rate for
preceding 30 days.
1) Value of gold ornaments/jewellery has to be assessed on the basis of average

closing price of 22 carat gold for the preceding thirty days as quoted by the India
Bullion and Jewellers Association Ltd.
2) The Credit Department (Retail & MSME), HO will obtain average closing price of
gold from M/s India Bullion and Jewellers Association Ltd. And inform
branches/offices the average closing price and lending rate per gram of 22 carat
gold on daily basis.
3) The rate circulated by Head Office is valid for that particular day.
4) Loan to value (LTV) ratio should not exceed 67% for Bullet payment option,
70% for CC (Pledge) and 75% for others.
92 Guidelines to Prevent sexual Harrassment of women at work place.

93 ATMS ATM – PHYSICAL AND OPERATIONAL SECURITY MEASURES
94 Blacklisting promoters All the ROs and Branches are advised that while taking guidance from section
who are willful defaulters 6.08.03 at page no.58 of HOC 12069 (Revised Lending Policy Guidelines 2012)
from dated 31.03.2012 which states that ―Neither any fresh credit facility, nor
getting bank finance. enhancement in the existing credit facility shall be granted to those entities owned,
controlled & managed by persons, (including Associates & Group Entities) whose
name appears in RBI Willful Defaulter‘s List. Similar shall be the approach of the
Bank in dealing with cases where siphoning off /diversion of
funds/misrepresentation of facts/falsification of the accounts/ indulging in fraudulent
acts/or any similar criminal acts are observed‖, you should also take into
consideration the above mentioned guideline of Vigilance section, Ministry of
Finance that ―promoters who are willful defaulters shall be blacklisted from getting
Bank finance for the purpose of takeover of sick companies and also fraudulently
selling off their assets.
95 All the Branches/offices are advised to note the contents of above

judgment and advised as follows:-
1. While taking the possession of secured asset u/s 13 (4) of SARFAESI Act, where
Authorised officer notices that mortgaged property is in the possession of third party
who is claiming to be Lessee/Tenant, Authorised officer should inquire about the
documents, Lease Deed/Agreement of the above third party.
In case the third party has provided the copy of Lease deed / Agreement
/other documents relating above, the Authorized officer has to verify the
same and ascertain:-
A. In case lease is made prior to Mortgage :- if lease deed is made prior to the
mortgage and period of lease is one year or more than one year and not registered,
it will not be valid lease. Hence verify the same.
B. In case lease made after the mortgage – As per above judgment, Mortgagor
is having right to lease the property after the mortgage so long as –
I. The mortgage deed does not prohibit for the lease:- Hence kindly verify the
mortgage deed and ascertain any prohibition to lease in the Mortgage Deed is
mentioned therein. If yes, lease will become invalid. As per HO Circular No.

152/2005, Branches are advised to obtain the

Affidavit-cum-Declaration sworn before Notary Public from Mortgagor as per
Annexure-A stating that property under mortgage is free from encumbrances and
also the mortgagor will not create any encumbrances whatsoever on property under
mortgage. Hence kindly verify whether such Affidavit-cum-Declaration is obtained or
not. If yes, kindly present the same before CMM/DM and seek that lease deed
created after mortgage is invalid since Lease Deed created contrary to the
Affidavitcum-Declaration given to Bank and does not comply with therequirements
of Section 65A of Transfer of Property Act.
II. Lease satisfies the requirements of sub-section (2) of Section 65A of

Transfer of Property Act. Hence, Authorised officer should ascertain whether
Lease Deed satisfies the requirements of sub-section (2) of Section 65A of Transfer
of Property Act. If no, lease will become invalid. Further subsequent to the
mortgage of property, renewal of lease of said property (if original lease is created
prior to mortgage) also needs to satisfy the requirement of sub-section (2) of
Section 65A of Transfer of Property Act. If renewal of lease deed does not satisfy
the requirement of sub-section (2) of Section 65A of T P Act., renewal of lease will
become invalid.
For ready reference, requirement of Section 65A of Transfer of Property Act

are mentioned below:-
“65A. Mortgagor's power to lease.-
(1) Subject to the provisions of sub- section (2), a mortgagor, while lawfully in
possession of the mortgaged property, shall have power to make leases thereof
which shall be binding on the mortgagee.
(2)(a) Every such lease shall be such as would be made in the ordinary course of
management of the property concerned, and in accordance with any local law,
custom or usage.
(b) Every such lease shall reserve the best rent that can reasonably be obtained,and
no premium shall be paid or promised and no rent shall be payable inadvance.
(c) No such lease shall contain a covenant for renewal.
(d) Every such lease shall take effect from a date not later than six months fromthe
date on which it is made.
(e) In the case of a lease of buildings, whether leased with or without the land
on which they stand, the duration of the lease shall in no case exceed three
years, and the lease shall contain a covenant for payment of the rent and a
condition of re- entry on the rent not being paid within a time therein specified.
(3) The provisions of sub- section (1) apply only if and as far as a contrary
intention is not expressed in the mortgage- deed; and the provisions of
subsection (2) may be varied or extended by the mortgage- deed and, as so varied
and extended, shall, as far as may be, operate in like manner and with all like
incidents, effects and consequences, as if such variations or extensions were
contained in that sub- section.
III. Lease Deed should be registered as per Transfer of Property Act if

lease period is for 12 months and above. Hence kindly verify period of lease
and if the period is above 12 months, kindly verify whether the same is registered
or not?. If not, lease deed will become invalid.
96 Framework for Revitalising Distressed Assets in the Economy – Joint Lenders‘ Forum
(JLF) and Corrective Action Plan (CAP) –Regulatory Guidelines. For revitalising the
distressed loan assets inunder consortium and multiple banking arrangement RBI
has issued framework on formation of Joint Lenders‘ Forum (JLF) and for taking
Corrective Action Plan (CAP).
97 DEALING BY BANK Guidelines for the Bank officials to be followed while dealing with borrowers with

OFFICIALS WITH BANK‘S regard to sanction and disbursement. No oral requests from the borrowers for the
BORROWERS disbursement of loan shall be entertained and under no circumstances the branch
shall orally communicate about inability to disburse the loan due to non-compliance
of sanction terms.
Even under the consortium advance the branches shall not orally communicate
either to the leader of the consortium or the borrower about inability to disburse the
loan due to non-compliance of sanctions terms.
DO‟S to be followed While Sanctioning Loans:
 The disbursement of loan shall be made immediately on receipt of written

request from the borrowers after compliance of pre-disbursement
conditions.
 On receipt of written request, if any of the sanction terms remain to be

complied, immediately written communication shall be sent to the borrower
specifying the terms of sanction pending to be complied.
 In the case of consortium advances, communication from the leader of the
consortium/ major lender to other members/lenders for pro-rata release of
the loan shall suffice. However confirmation from the leader of the
consortium/major lender for compliance of all common terms of sanction
stipulated by the consortium should be held on record.
 In case of non-compliance of any of the terms and conditions of sanction

stipulated by the consortium or by our competent authority, the branch shall
communicate in writing to the leader of the consortium about non-
compliance of the same with a copy to the borrower, if found required.
98 Renaming ―Fraud Henceforth, all Regional Offices are required to be submit the Fraud Reports (FMR –
Prevention & Monitoring I) to The General Manager, Fraud Monitoring Cell, Head Office, Bangalore.
Cell‖ to “Fraud
Monitoring Cell”. RBI guidelines provide that frauds should be reported to them within a maximum
period of three weeks from the date of detection and Banks must fix staff
accountability in respect of delays in reporting fraud cases to RBI. Hence,the
Regional Offices should ensure that the FMR –I reaches Head Office within seven
days from the date of detection so that the same can be processed and submitted to
RBI in time.
Guidelines for filing case with CBI and Police authorities appear under paragraph 6.2
and 6.3 of RBI Master Circular. It is once again reiterated that filing of criminal case
is mandatory in respect of frauds reported. In case of difficulties in getting the case
registered with the police authorities, matter should be escalated to higher level by
way of addressing Registered Acknowledgement Due letters to the Jurisdictional
Superintendent of Police / DIG of Police.
Simultaneously immediate efforts should also be made to approach the Court

seeking directions for the police authorities to register the case. The detailed
guidelines is issued vide HOCL No.188/07 dated 01.08.2007.
99 VHL Master CIRCULAR on Housing Loan.
100 The Reserve Bank of India has informed that "the Account Lending activity may be

going on in many banks especially in Bihar and Jharkhand region including Delhi.
This mechanism may be used by terror outfits and individuals by using other's
accounts for transferring funds or making transactions so that they could not be
monitored and caught. The original account holder receives rent for this purpose".
101 Promotion Results from Clerical to JMG Scale I
102 GENERAL TRANSFER of Officers.
103 Corporate Banking Henceforth, with immediate effect, for all purposes, including the business
Branch development and credit matters, the corporate banking branches shall be
under the control of Regional Office having administrative jurisdiction of
the area where the corporate banking branch is located.
104 Frauds Fraud Cases explained
105 Revised General Credit All productive entrepreneurial activities in the non-farm sector extended to
Card individuals without any limit within the overall Priority Sector guidelines, to be
classified under Revised General Credit Card.
The revised guidelines on General Credit Card are furnished below:
1. Objectives
The objective is to increase flow of credit to individuals for entrepreneurial activities
in the non-farm sector under priority sector, through the revised General Credit
Card.
2. Eligibility
All non-farm entrepreneurial credit extended to individuals, which are eligible for
classification under the priority sector guidelines.
3. Coverage
The scheme shall cover the entire country.
4. Nature of financial accommodation

Any credit facility extended under the existing product lines of our bank which
include both working capital and term loan requirements to individual entrepreneurs
under Micro and Small enterprises segment in priority sector can be shown under
General Credit card as per the revised GCC guidelines issued by the RBI. In other
words all the non-farm priority sector loans i.e. Micro and Small enterprises
extended for entrepreneurial activities to individuals fall under the revised GCC.
Therefore any working capital or Term loan given to individuals under Micro and
Small –manufacturing as well as Service Enterprises such as Small Business,
professionals and self employed, SRTO can be classified as General Credit Card
106 Monitoring and It may be noted that under the revised VKC and VPC scheme, though the overall
supervision of Vijaya validity period of the VKC / VPC limit is five years, the branches are required to
Kisan Card/ Vijaya carry out the review of the accounts every year.
Planters‘Card accounts /
jewel loans given for During the annual review, before fixing the annual operative limit for the
agriculturalpurposes / next crop year, the branches are required to ensure that crop sale proceeds
other agricultural have been routed by the farmer through the account and the interest and
advances the principal towards the annual operative limit of previous year have been
repaid. However, wherever the farmers find it difficult to repay the entire principal
and interest due to genuine reasons, it should be ensured that atleast interest
portion is recovered so that account can be reviewed.
It is the responsibility of the Branch Heads to ensure that none of the crop

loans in their branches are allowed to continue without recovering atleast

interest portion and also without annual review on the review date. Same
needs to be monitored closely by the Regional Offices.
107 NATURAL DISASTERS - PREPAREDNESS AND MITIGATION
108 DECLARATION OF BANKING INDUSTRY AS PUBLIC UTILITY SERVICE UNDER

PROVISIONS OF INDUSTRIAL DISPUTES ACT,1947
109 Rationalised and Foreign Portfolio Investors (FPIs) have been categorized by SEBI based on their
simplified account perceived risk profile.
opening norms for those
FPIs duly registered in Following THREE are categories of Eligible Foreign Investors:
accordance with SEBI
guidelines and have 1) Government & Governmentrelated foreigninvestors such as Foreign Central
undergone the required Banks, Governmental Agencies,Sovereign Wealth Funds, International/Multilateral
KYC due diligence/ Organizations/ Agencies.
verification prescribed by
SEBI through a 2)a)Appropriately regulated broad based funds such as Mutual Funds, Investment
Custodian/ Intermediary Trusts, Insurance/Reinsurance Companies, Other Broad Based Funds etc.
regulated by SEBI. b) Appropriately regulated entities such as Banks, Asset Management
Companies,
Investment Managers/ Advisors, Portfolio Managers etc.
c)Broad based funds whose investment manager is appropriately regulated.
d)University Funds and Pension Funds.
e)University related Endowments already registered with SEBI as FII/Sub
Account.
3) All other eligible foreign investors investing in India underPIS route not eligible
under Category I and II such asEndowments, CharitableSocieties/Trust,
Foundations, Corporate Bodies, Trusts, Individuals, Family Offices, etc.
The simplified provisions are applicable for both new and existing FPI clients,
However, branches may note that these provisions are applicable only for
PIS (Portfolio Investment Services) by FPIs. In case the FPIs intend to use
the bank account opened under the above procedure for any other
approved activities (i.e. other than PIS), they would have to undergo KYC
norms as prescribed in HOC 13188 dated 20.06.2013, on Know Your
Customer (KYC) norms / Anti-Money Laundering (AML) standards/Combating of
Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002.
110 Recategorisation of The business criteria for categorization of branches effective from
branches with effect 01.04.2014 are as follows :
from 01.04.2014
The Average Business for each of the previous 2 years excluding average Bulk
Deposits in excess of 15% of the Average Aggregate Deposits and sustaining the
business in March 2014 Bulk Deposits is taken as 1 crore & above as per the RBI
guidelines.
1 Small - Below Rs. 5 Crore

2 Medium - Rs. 5 Crore and above but below Rs. 15 Crore and Capital Market
Service Branch, Mumbai.
3 Large -Rs. 15 Crore and above but below Rs. 50 Crore with Minimum Average
Advances of Rs.5 Crore.
Service Branches handling instruments averaging below 10000 per day. ARMBs
with less than Rs. 40 Crore portfolio (Incl. PWO accounts) or less than 175
SARFAESI notice issued accounts.
4 Very Large Rs. 50 Crore and above but below Rs. 150 Crore with Minimum

Average Advances of Rs.12 Crore. Service Branches handling instruments

averaging 10000 per day ARMBs with minimum Rs. 40 Crore portfolio (Incl.
PWO accounts) or a minimum of 175 SARFAESI notice issued accounts (all others
are treated as Large).
5 Exceptionally Large - Rs. 150 Crore and above but below Rs. 1000 Crore with
Minimum AverageAdvances of Rs. 35 Crore..
6 Special branch - Rs. 1000 Crore and above with Minimum Average Advances of
Rs. 250 Crore
112 Sending Locker Rent due Branches are advised to collect mobile no and e-mail Ids of all Locker hirers and
Notice update in the CBS system. DIT, HO will send Locker rent due notices to all such
customers once in three months, where the locker rent is pending. In addition to
this, branches are advised to send due notices to all locker hirers by post/courier.
113 Bank‘s approved Bank has framed and adopted comprehensive policy guidelines on vital topics and
policies on – focus areas of business development and customer service to provide a single point
BranchOpening reference to the field functionaries. The five policies deal with critical issues like
Branch Ambience opening of new branches, quality parameters for good branch ambience, steps to
Customer Service & improve customer service at branches, effectively managing the banking lobby
Lobby Mgt. at the branches, special services to be extended to needy customers as al so the
Special Service to performance analysis of branches through a rating process.
Needy Customers and
Branch Rating Process
114 Processing Charges/Upfront fee for loans upto Rs. 5 lakhs to Small & Micro
Enterprises is waived.
In compliance of the guidelines, in partial modification to the Para 6 (B) & (C) HOC
12075, it is hereby advised that the processing charges and/or upfront fee stand
waived for loans upto Rs.5 lakhs for the borrowers eligible to be classified under
Small & Micro Enterprises, whether the loan is sanctioned or not.
115 Enhancement in daily It has been decided to enhance the daily POS (Point of Sale) transaction limits as
POS transaction limits under :
for Debit Cards & (In Rs)
delegation of powers for
temporary enhancement Normal cards Cards issued to HNI
of POS limits customers
Merchant transaction Rs 50,000/- 1,00,000/-
limit per day
Delegated powers have been given to Executives of Card Division for temporary
enhancement of daily POS transaction limits as under:
Departmental General Manager Executive director

Head
Upto 2 lakh Rs 2 lakh – 5 lakh Above Rs 5 lakh
116 Branches may include NRI close relative in the existing/new resident bank
accounts as joint holder on certain conditions on “Either or Survivor” basis.
Such account will be treated as resident bank account for all purposes and all
regulations applicable to a resident bank account shall be applicable. Where the

NRI close relative becomes a joint holder with more than one resident in such
account, such NRI close relative should be the close relative of all the resident bank
account holders;
Where due to any eventuality, the non-resident account holder becomes the
survivor of such an account, it shall be categorized as Non-Resident Ordinary Rupee
(NRO) account as per the extant regulations;
117 PAYMENT OF BONUS FOR THE FINANCIAL YEAR 2013-2014.
118
Recovery Management Policy of the Bank: (Slight modifications done)
1. For payment beyond 30 days, interest at BR+1% or documented rate

whichever is less to be charged at compound basis instead of simple basis
from 31st day.
2. In case of proposals relating to priority sector and Government Sponsored
schemes, for loans upto Rs 5.00 lakhs, minimum amount recoverable
is NPA balance as on date of NPA minus recovery made
subsequently subject to waiver of interest is not more than the
amount recovered. For loans above Rs 5.00 lakhs, interest has been
reduced from 9 to 8%.
3. Publishing of photographs are withheld until further instructions.
4. Down payment is reduced to 10% from 15%.
5. Operations are allowed in MSE NPA a/cs for 6 months for conducting
the viability study.
6. In case of AUC accounts with balance of Rs. 10.00 lakhs and below and
where securities are not available, the branches may settlement the
account by collecting atleast 75% of the AUC balance.
119 Legal Decision affecting the bankers:Procedures to be followed by the criminal
courts for speedy and expeditious disposal of cases falling under Section 138 of the
Negotiable Instruments Act,1881.
120
Each Customer should have only one Cust Id. Before creation of the new Cust
Ids/allotting Unique Cust Ids to the existing customers, branches should verify KYC
details for de-duplication.
121
In the statutory audit for the year ended 31.3.2014, the auditors have
stressed upon compliance of extant guidelines of the Bank on regulation of
drawing powers. The field functionaries to ensure that such basic loan
monitoring aspects are no longer commented by the statutory auditors.
122
Education Loan-Strategies for the financial year 2014-15
123 Insurance coverage of 1 Our Bank started issuing Rupay debit cards in the year 2012. Rupay card scheme is
lakh for Rupay Debit a domestic network setup by National Payment Corporation of India (NPCI). NPCI
Cards has introduced a unique feature of insurance cover of Rs. 1 lakh for RuPay
cardholders in tie up with HDFC ERGO General Insurance Company (HDFC ERGO)
for a period of one year from April 1, 2014 to March 31, 2015.
All RuPay Debit card holders will be eligible for the benefit under the Insurance
program. NPCI is offering an insurance coverage of Rs 1 lac per card (accidental
death and permanent disablement only) to RuPay card holders.

Legal Decision Affecting Fresh 30 days notice to the Borrower/Mortgagor as well as Paper
124 Bankers. Publication is mandatory in case of fresh auction under SARFAESI Act.
KYC/AML/PMLA Branches should issue notice to the customers to comply with KYC guidelines. If the
125 Guidelines – Compliance customer does not turn up, account should closed after obtaining permission from
of KYC RO.
126  Enhancement in expenses incurred towards farewell function to retiring
employees & silver jubilee award function from ` 30 to ` 60 per
employee at Branch/Office.
 Accounting of expenditure under head of Account Refreshment on

Retirement/SilverJubilee Function.
127 Accounting of expenditure with respect to uniform and liveries provided to

subordinate staff members under head of account „Uniform & Liveries
Reimbursement‟.
128 Rajiv Gandhi Loan Karnataka Government has introduced interest subsidy scheme for education loans
Scholarship Scheme of for students who procure admission to State Government Universities, Government
Government of or aided colleges.
Karnataka
129 Staff Housing Loan Modifications in Staff Housing Loan (SHL) Scheme in respect of ―Continuing security
(SHL) Scheme for of Housing Property created out of the first Housing loan at the time of sanction of
Officers and second Housing Loan‖.
Award staff.
130 Payment of As per Govt. of India, Ministry of Finance, Department of Financial Services
Conveyance directions, the Board of Directors of the Bank in its meeting held on 26.05.2014 vide
Allowance Agenda Item No.A-80/2014 has accorded approval for payment of conveyance
allowance to Deaf and Dumb employees @ 5% of basic pay with maximum of `
400/- at par with Blind and Orthopeadically handicapped employees with effect from
01.05.2014.
Deaf and Dumb employees with minimum of 40% permanent/partial disability are
eligible for conveyance allowance. Further, the deaf & dumb employees those who
have not submitted the disability certificate are required to submit the same in
enclosed format for availing the facility.
131 KYC Compliance - High High Networth individual means an individual having accounts with credit balance of
Networth Individual aggregate deposits (SB+CA+TERM) of Rs. 1 crore and above.
(HNI), Sleeping Partner
Partnership accounts having sleeping partners and HNI accounts are to be classified
as High Risk.
132 Operation of Deposit Accounts of Govt. Departments etc.-Compliance of
KYC guidelines:
It is observed that many branches are not maintaining proper records in respect of
the authorisation for opening/operating the accounts.
1) Branch should obtain the Resolution of the Board of Directors of the statutory
body or a written request from the various executives of the statutory body,
2) Branch should also obtain a certified copy of the Government Order (G.O) if
any, regarding the opening and /or operations of Bank accounts or any Statutory
rules in this behalf either general or specific.
3)Branch should obtain Memorandum of Association, and ensure that there should

not be any ultra virus condition in MOA and rules of association which
wouldjeopardise the Bank
4) The contact details such as address, phone / fax / mobile number, e-mail ID,etc.,
of the official authorised to operate the account should mandatorily be fed into the
system and updated periodically.
5)Branch should handover the deposit receipt to the authorised persons onlyagainst
acknowledgement.
6) In case loan facility against the deposits, branch should obtain proper
authentication from the concerned authority. The deposit receipt duly discharged
by the authorised person should be held by
the branch with other documents and the lien should be noted in the system.
Branch head should visit the office of the depositor and meet the authorized person
before sanction of the loan and record the minutes of the meeting and the same be
held on record. Branch should send the registered letter to the concerned office
informing them of the sanction of the loan.
7) KYC guidelines are strictly adhered to without exception.
133 BSCBI - Bank's This is a Code of Customer Rights,which sets minimum standards of banking
Commitment to practices member banks have to follow while they deal with individual customers. It
Customers - 2014 provides protection to customers and
explains how banks are expected to deal with customers in their day-to-day
operations.
134 Raising of Bills by HO Central Accounts Dept., has got the issue examined by the Bank‘s tax consultant
Advocates for the who has opined that in such cases, it is the borrower who has engaged the Advocate
services rendered to and Bank merely facilitates the payment of fees to the Advocates by debiting the
Bank‘s customers respective Customer‘s Accounts. Thus as the services are not received by the Bank,
Bank is not liable to pay Service Tax under Reverse Charge Mechanism.
However, HO Central Accounts Department in better appreciation of the issue has

advised that the bill of the Advocate to be raised in the name of the Customer-A/c
with Vijaya Bank‖. For example, if the LSR is given by Advocate for the Customer of
Mr. Rao, the bill to be raised in the name of Mr. Rao as ―Mr.Rao – A/c with Vijaya
Bank‖.
135 Capital Funds of the Capital funds for the purpose of Exposure Norms will comprise of Tier I and Tier II
Bank reckoned for capital as defined under capital adequacy standards.
computing Prudential
Exposure norms as at Based on the Capital Funds of the Bank of Rs.7,455.00 crore as on 31st March
31st March 2014 is 2014, the Prudential ceiling limits to all categories of exposure other than to NBFCs
Rs.7,455.00 crore as on date and till further intimation, would be as under:
1. Individual borrowers 15% 1,11

2. Individual borrowers 20% 1,49
(infrastructure)
3. Individual borrowers [in respect of Oil Companies 25% 1,86
who have been issued non-SLR Oil Bonds by
Government of India] #
4. Group borrowers 40% 2,98
5. Group borrowers (infrastructure) 50% 3,72

136 Vijaya 555 Term Deposit Scheme stands WITHDRAWN.
137 Launch of ‗Catch Your Neighbour‘ campaign from 16 June 2014 to 30 June 2014 for
augmenting retail business of the Bank.
138 The policy for providing mobile phone, Residential telephone, Fixing of Call /
Monetary Limits and Reimbursement of Charges is HIGHLIGHTED.
139 Policy for procurement of all items/products & Services
140 Policy on Revaluation Policy on Revaluation of Bank owned properties:

of Bank owned Assets Considering all the above aspects, a comprehensive policy for revaluation of Bank
owned properties has been formulated which cover, interalia, the following:
Procedure for identification of assets for revaluation

Maintenance of separate set of records for such assets
The frequency of revaluation
Depreciation policy for such assets
Policy for sale of such revalued assets
The disclosure required to be made in the ―Notes on account‖ regarding
details of revaluation such as original cost of the fixed Assets and accounting
treatment for appreciation/ depreciation.
This Policy is not applicable to the Non Banking assets acquired by the Bank.
141 Vehicle Policy Policy on providing Bank owned vehicles, fuel limits, etc.
142 Leased Premises The Leased Premises Policy pertains to the following:
Policy
Selection of Leased Premises.
Fixation of Area norms for opening branches in Rural, Semi-urban,
Urban&Metropolitan
centres.
Discretionary powers for hiring of premises.
Discretionary powers with regard to Advance Rent.
Acquisition of premises for Currency Chests.
Acquisition of premises for off site ATMs.
Standardisation of layout (area), size of Single Window counters, ATMs, cash
cabins,
counter height, furniture & fixtures, water coolers, specification of materials, colour
combination, display materials, signages, user friendly arrangements for
handicapped
persons/senior citizens, etc.
Discretionary powers for surrendering of Premises.
Operational guidelines.
143 NPS Authorization of additional 102 branches to receive subscription under the said
scheme.
144 Central Assistant Public Amendment to designation of Central Assistant Public Information Officer at Head
Information Officer Office- Assistant General Manager/ Chief Manager is designated as Central Assistant
(CAPIO). Public Information Officer under RTI Act, 2005.
145 Bank‘s approved policy on Deposits, Deposits of Senior citizens, Cheques collection,
cheques returns, compensation, pricing, operational procedure and Grievance

Redressal Mechanism.
146 TAX Payment through Collection of Telangana State Government Commercial tax/VAT, Turnover Tax (TOT)
VNET Banking. and Central Sales tax (CST) through V-Net Banking e-mode.
147 PROMOTION JMG I to II
148 PROMOTION JMG II to III
149 “Vijaya 444” Term ROI: 9.15%, Max.Deposit - 10.00 Cr. per customer ID (each deposit should be for
Deposit Scheme. below ` 1.00 crore).
The scheme will be
open from 1st July to No pre-closure penalty: However, if the deposit is closed before maturity, interest
30th September 2014. shall be paid at the applicable card rate (at the time of accepting deposit) for the
period for which the deposit remained with the bank or contracted rate which ever is
less.
Interest payment on pre-closure (premature withdrawal):

Domestic/NRO -No interest is payable if deposit is withdrawn before 7 days.
NRE - No interest is payable if deposit is withdrawn before one (1) year.
150 Clarification in case of To get the benefit of additional rate of interest the name of the staff/retired staff
joint accounts of should appear as the first name on the term or savings deposit account for payment
staff/retired staff of
with family members– additional interest.
benefit of additional
interest
151 Corrigendum 444 days
Sl. No (iv) of the salient features of ―Vijaya 444‖ should be read as follows:
` 10.00 crore per customer ID (each deposit should be for b
(iv) Maximum Amount 1.00 crore)
152 Transfer / Postings of Officers 2014

153 Policy for Purchase of ready-built properties –Residential & Commercial by
our Bank at all centres.
154
Formation of new Upon establishment of the one new Regional Office at Meerut, the number of
Regional Office at Meerut Regional Offices of the Bank will stand increased to 27. The New Regional Office
at Meerut is come into effect from 01.07.2014.
Delhi, Lucknow & Chandigarh Regional Offices is reorganised.
155 Recategorisation of branches. Newly opened branch to be classfied as MEDIUM

branch. Corrigendum issued for correcting SILVASSA Branch as Medium which as
erroneously shown as SMALL in earlier HO Circular 14111.
156 Structured Financial Institute for Development And Research in Banking Technology (IDRBT)
Messaging System informs that effective from 01.01.2014, transmission fee of Rs.100/- +
(SFMS) for Service Tax is payable to IDRBT for each originating LC/BG transmitted by
sending and receiving the banks using the SFMS platform. This transmission fee shall be
Inland L/Cs and Bank recovered from the borrowers‟ account at the time of opening of each
Guarantees. LC/BG without fail.
157 Commercial employment Most of the officer employees are now governed by Pension Regulations and a
after retirement number of applications seeking permission for acceptance of commercial
employment from pensioners who were holding the post of officers are being
received by the department. In order to ease the procedure, the competent

authority to grant or refuse permission to take up commercial employment has been

modified as follows.
Officers in I,II & III - GM (PERSONNEL)

IV & V, - ED
VI – CMD
VII - Board of Directors
158 REVISION IN Revised delegation of lending powers is furnished here below:

DELEGATION OF
POWERS TO Scale I II III IV V VI VII RO VII HO
SANCTION VIJAYA HOME Per Bh&RH Bh&RH
LOAN Borrower 5 15 25 50 100 200 300 500
Exposure
159 Wealth Tax Returns of Request for wealth tax return details in case of loan defaulters may be made by the
Chronic defaulters – concerned bank authorities as per the provisions of section 42 B of the Wealth Tax
Sharing of asset Act 1957.
details by Income Tax
Department Department of Revenue has stated that request for wealth tax return details in case
of loan defaulters may be made by the concerned bank authorities as per the
provisions of section 42 B of the Wealth Tax Act 1957 read with Rule 9 of the
Wealth Tax Rules.
160 IRAC Norms Master Circular – Prudential Norms on Income Recognition, Asset classification and
Provisioning pertaining to Advances.
161 Promotion from Substaff to Clerical cadre
162 KYC guidelines- Branches may obtain only one documentary ―proof of address‖ (either current or
clarification on proof of permanent) while opening a bank account by individuals or while undergoing
address periodic updation.
In case, the address mentioned as per `proof of address' undergoes a change, fresh
proof of address should be submitted by the customer to the branch within a period
of six months.
In case the proof of address furnished by the customer is not the local address or
address where the customer is currently residing, the branch should take a
declaration of the local address on which all correspondence will be made by the
branch with the customer. No proof is required to be submitted for such address for
correspondence/local address.
This address may be verified by the bank through `positive confirmation' such as
acknowledgment of receipt of:
(i) letter, cheque books, ATM cards, (ii) Telephonic conversation, (iii) Visits, etc
163 Mega Monsoon Launch of Mega Monsoon campaign from 16th July 2014 to 14th August 2014 to
Campaign augment CASA from educational segment, Charitable Trusts and Societies.
The campaign will run for a period from 16th July 2014 to 14th August 2014.
Category TARGET Fixed under this campaign

VGEN account 10 V-GenUTH accounts per branch per day with a minimum

deposit of ` 100/- per account, is fixed for all branches

Educational ONE new Savings Bank\Current account per branch from schools/colleges/
Institutions institutions, which do not have accounts with us, with a minimum deposit of
per account.
Trusts and Modest target of ONE NEW account per branch during the Campaign is envis
Societies
164 „Sampoorn Vitteeyea The present programme of SVS under the Mission Mode envisages provision of
Samaveshan(SVS)‟ for affordable financial services to all citizens within a reasonable distance. It comprises
Comprehensive the following six pillars:-
Financial Inclusion
1.Universal access to banking facilities - Mapping of each district into Sub
Service Area(SSA) catering to 1000-1500 households.
2. Financial Literacy Programme:- To be extended to the block level from the
present district level.
3. Providing Basic Banking Accounts with overdraft facility and RuPay Debit
card:-
4. Creation of Credit Guarantee Fund - Creation of a Credit Guarantee Fund
would be to cover the defaults in overdraft accounts.
5. Micro Insurance:- By 14th August,2018 and then on an ongoing basis.
6. Unorganized sector Pension schemes like Swavlamban:- By 14th
August,2018 and then on an ongoing basis
Also, in those States where registration of memorandum is not mandatory, as an

165 Exemption of administrative measure, memorandum has to be registered. However, Staff
registration of Housing Loan/Vijaya Home Loan availed by staff/retired staff, in these States are
memorandum in exempted from the requirement of registration of memorandum. Now the
respect of mortgage by Competent Authority has permitted to extend such exemption to Education Loan
deposit of title deeds- also, availed by wards of staff/retired staff with staff/retired staff as coborrowers,
Education Loans which is collaterally secured by landed property.
sanctioned to the wards
of our
Staff/Retired staff
members
In order to give stimulus to retail credit growth, it has been decided to launch
166 ‗Grand Vijaya Housing and Vehicle Loan Carnival‘ campaign from 21st July
to 15th November 2014. The salient features of the campaign are as below
Special relaxations / concessions extended during the campaign period:
Waiver of : Processing, Inspection and Documentation charges.

Concessions shall also be valid for loans sanctioned during the campaign period but
disbursed subsequently.
167 Legal Decision Affecting Mere production of counter-foil of pay-in-slip, bearing rubber stamp of
Bankers- Bank is not sufficient to prove that cheque was actually received by the
Bank . as the said pay-in–slip does not bear signatures of any Branch official.
168 Master Circular on Priority Circular
169 Attempted Robbery at our Roorkee Branch –Thwarted by our committed &
courageous staff of the branch.
A letter of Appreciation and CASH Incentive Was been given by the CMD.
170 The Department of Financial Services under Ministry of Finance, Government of

Inappropriate practice of India, vide letter No.F.No9/7/2014-BOA dated 23rd June, 2014 has brought out a

addressing letters mistake regularly committed by the Public sector Banks, in respect of letters issued
to the President of India on expiry / cancellation / extension of the Bank Guarantees directly to the President
for any act of of India, instead of addressing the letters to the Concerned Government
theDepartment of Departments. As the letters are addressed to the President of India, The president
Government of India Secretariat is forwarding the letters to Department of Financial Services for
instead of Concerned appropriate action.
GOVT .DEPT.
In this regard all the branches are hereby advised to correspond directly with the
concerned government department on any further action regarding bank guarantees
and not with the office of The President of India.
Implementation of Crop Insurance Schemes:

171 Department of Agriculture & Co-operation, Ministry of Agriculture, GOI has now
formulated a Central Sector Scheme of National Crop Insurance Programme (NCIP)
with the following main features/components:
1. Modified National Agriculture Insurance Scheme (MNAIS), Weather
Based Crop Insurance Scheme (WBCIS) and Coconut Palm Insurance
scheme (CPIS) will be extended to all the districts.
2. National Agriculture Insurance Scheme (NAIS) has been withdrawn from

Rabi & Summer 2013-14 season.
172 List of Frauds occurred from April 2014 to June 2014

Establishment and Operationalisation of Branch Service Centre at Bangalore for
173 issuance of personalized cheque books for Premium SB and Current Account
Customers.
In today‘s highly competitive and complex banking scenario, retaining customers by

offering value added services is of equal importance while expanding the customer
base by acquiring new customers. Providing personalized cheque books is one such
effort by the Bank for both the new and existing customers of the Bank.
The personalized cheque books will be printed by M/s Security Printers, Kanpur and
supplied to the customers directly by the printers through courier/speed post.
It should be kept in mind that if even a premium customer demands issuance of

normal/regular cheque book to meet his urgent need, then should not be insisted
upon to accept only personalized cheque book.
174 Inoperative Accounts – Nomenclature of „Dormant Account‟ dispensed with.

Modification of Status
D I T HO, has modified the status of all ―Dormant (SB & CA) accounts‖ to
―Inoperative‖ status in finacle database.
Henceforth, change of status from Inoperative to Dormant or from Dormant to

Inoperative is not possible at branch level.
Reserve bank of India has launched The Depositor Education and Awareness Fund
Scheme-2014 under Section 26A of Banking Regulation Act 1949. Under the scheme
Banks have been advised to transfer the amount outstanding in unclaimed deposits
of more than 10 years to the fund.
175 Payment of Dividend Warrants of our Bank for the year 2013-14-
Branches to Debit CID A/c 505400031309003.
Lending Policy Guidelines Credentials of the companies should be checked at the field level before
176 – Importance of entertaining the proposal.
entry level due diligence

in respect of A) FOR corporate exposures of Rs.5.00 Crore and above,

companies
It is mandatory to carry out due diligence of the company by way of verifying the
credentials in the MCA-21 site/ROC records regarding filing of annual returns within
the stipulated time, change if any in the directorship/ownership, existing charges on
the assets of the company, DIN/DPIN-PAN details of all the directors etc.
Apart from mandatory independent due diligence as per HOC 13280, 13284 and
14031, in respect of corporate exposures of Rs.5.00 Crore and above, all entry level
due diligence has to be carried by a qualified and empanelled Company
Secretary/Chartered Accountant/Cost Accountant as per the
checklist enclosed to this circular and certificate has to be submitted to the branch
by him/her to that effect.
B) FOR corporate exposures of less than Rs.5.00 Crore, the due diligence has
to be carried out by the branch level itself as per the check list enclosed and
necessary certificate to be held on record.
177 Launch of ―Priority is our Priority‖ Campaign from 4th August 2014 to 31st August
2014 for accelerating credit flow to Agriculture,SHG/JLGS and other Priority Sector
like MSE, Housing, Education etc.
178 TARGET-84 (CASA & RD Celebrating 84th Foundation Day from 1st August to 23rd October 2014 with launch
campaign) of ‗TARGET 84‘ CASA & RD campaign.
To achieve a minimum incremental growth of 8.4% in CASA levels of the bank

compared to the balance on 31st July 2014 by 23rd October 2014, AND
To open a minimum of 840 new RD Accounts by each Regional Office
179
In respect of project To make the prescription/guidelines on the subject further stronger, Ministry of
appraisals carried out by Finance has instructed to implement the following measures strictly.
subsidiary wings of
major banks, 1. A certificate is submitted with the appraisal note by the appraisers that they have
Department verified the technical and financial aspects of the project and based on their
of Financial Services has assessment, the project is technically viable and economically feasible.
set certain
guidelines for 2. Parent bank of the subsidiary company, which appraised the project, may take a
compliance by them. share in the project to repose faith in the appraisal quality of its subsidiary.
3. A data base in respect of performance of the project appraised by the consultants

may be maintained and inclusion/exclusion of names in list of panel be done on the
performance.
180 Lending Policy All assets financed to be inspected periodically.

Guidelines –
Importance of Inspection of securities financed by the bank plays a vital role in the prevention
inspection of from deterioration in quality and enforceability of security and from the loan assets
securities becoming stressed. The main objective of entry level inspection of securities is
proper understanding of the activity of the borrower. The post disbursal inspection
helps in ensuring end use of funds lent and safeguarding the interest of the bank
against possible mis-utilization by some unscrupulous borrowers, etc.
181 Capital Subsidy Government of India has launched a new Credit linked Back ended subsidy scheme

Scheme to Install for installing Solar Photovoltaic Water Pumping Systems to meet the irrigation
Solar requirements of land holdings of small and marginal farmers.
Photovoltaic (SPV)
Water Pumping NABARD has informed vide their Circular No. 109/DoR-GSS 36/2014 dt 27.06.2014
Systems for Irrigation that a new scheme to promote installation of 10,000 Solar Photovoltaic Water
Purpose. pumping Systems for irrigation purpose, being implemented through them by
Ministry of New and Renewable Energy, Govt. of India effective from 01st April 2014
to 31 March 2016.
Rate of Interest on Loan - The loans extended by branches would carry interest
rate as per HOIRC:14037 dated 07.04.2014 as applicable to Agricultural loans.
However, no penal /overdue interest shall be charged for loans upto Rs 25000/-.
Repayment Period of Loan-Repayment Period of loan is ten years.
Opening of account in CBS:

DIT, HO has opened a new scheme code for the scheme and the details are as
under:
Scheme Code: AG746

Scheme Name: Solar Water Pump-Non-EI
GL Code: 44706
182 Andhra Pradesh & Telangana State Government Excise payment through V-Net
Banking / e-mode.
183 Constitution of Special A special Investigation Team (SIT) has been constituted by the Government of India
investigation Team- under the chairmanship of Hon‘able Justice M BShah, as per the directions of
Sharing of Information Hon‘ble Supreme Court Judgment dated 04.07.2011.
184 Aggregation of Small & Marginal farmers into Farmer Producer Organizations
(FPOs) in order to deal with a range of challenges/ constraints faced by them by
leveraging collective strength and bargaining power to access financial and
non financial inputs
and services and appropriate technologies.
Small Farmers Agri-business Consortium (SFAC), a Society promoted by the

Dept. of Agriculture, GoI though State Governments, Civil Societies,Technical
organizations and private sector companies is encouraging small and marginal
farmers to aggregate into FPOs.
Financing Farmer Producer Companies (FPCs)

I. Scheme:Financing Farmer Producer Companies (FPCs).
II. Purpose:- Working Capital and term loan credit under agriculture and allied
sectors relating to production, harvesting, storage, processing, packaging and / or
marketing of the produce/ product or in combination of the above activities. The
FPCs generally require credit for bulk procurement of inputs, establishing
processing, packaging, storing infrastructures and also for marketing the produce of
farmers.
The activity should result in product improvement and or / increase in production,

marketing and realization of prices / income to farmer members. For establishing
marketing linkages like setting up of marketing infrastructure in the form of rural
haat/rural mart etc.
III. Eligible Institutions-Farmers Producer Companies. i.e Companies of

Farmer Producer Members as defined in section IXA of the Indian

Companies Act, 1956 (including any amendments thereto or re-enactment

thereof) and incorporated with the Registrar of Companies (RoC).
IV: Proposal / appraisal:

 FPCs are required to submit Detailed Project Report (DPR) of the project for
financing. SFAC will provide financial support to FPOs in preparation of bankable
Detailed Project Reports (DPR) through empanelled consultants/institutions.
 The branch shall carry out the Due diligence, Techno-economic appraisal and
assessment of working capital/term loan and the ROs shall support the branches
in this regard with the services of the Agricultural Officers.
V. Loan Quantum and Margin:

Loan Quantum shall be normally limited to a maximum of 75% of the total project
outlay. However, the quantum of loan up to 85% of the project outlay may be
considered depending on the project size, outlay, means of financing and the
resource support available from various agencies/sources, etc. Accordingly, the
margin money to be contributed by the FPO is 15% to 25%.
VI. Rate of Interest, Penal Interest, Processing and Other Charges:

As applicable to other Agriculture Loans.
VII. Security :
Hypothecation of crops and moveable assets created out of the loan
Security of immoveable assets created out of loan, if any, by way of mortgage of
such assets.
Credit Guarantee is available for limits upto Rs.1 crore from Credit Guarantee Fund
Scheme of GoI operated by SFAC in respect of FPCs fulfilling certain eligibility
criteria.
185 PADHO PARDESH – Scheme of interest subsidy on Educational Loans for overseas studies for the
Education Loan students
interest subsidy scheme belonging to the Minority Communities to pursue approved courses.
for the
students belonging to The scheme is effective from the Financial Year 2013-14. Loans sanctioned and
the Minority disbursed from 01.04.2013 onwards will be eligible for interest subsidy.
Communities Under the scheme, interest payable by the students for the period of moratorium
(i.e. course period, plus one year or six months after getting job, whichever is
earlier) shall be borne by the Government of India.
Q.1. Who is eligible under the Scheme?

Ans. Students who belong to minority communities viz.Muslims Christians,
Sikhs,Buddhists, Jains, and Parsis and want to pursue higher studies i.e. Masters,
M.Phil & Ph. D level abroad.
Q.2. What will be the time period for interest subsidy?
Ans. Interest subsidy will be granted for the period of moratorium (i.e. course
period, plus one year or six months after getting job, whichever is earlier) as
prescribed under the Education Loan Scheme of the Indian Banks Association(IBA).
Q.4. Whether Ministry gives educational loan under this Scheme?

Ans. No, Ministry does not give educational loan under this Scheme. Only interest
subsidy is provided on the educational loan taken by student from a Bank, which is
a member of IBA.
Q.5. How much interest subsidy is given under this Scheme?
Ans. Ministry will reimburse 100 % interest component of the Educational loan
availed by a student from the Bank.

Ministry of Minority Affairs-MoMA does not require any report/documents. Students

have to submit periodical progress reports/documents to their respective lending
Banks on time to
time during the period of pursuing their studies abroad.
186 Bank has taken up the assignment of payment of Dividend warrant for the year
2013-14 of M/s. Competent Automobiles Limited. The dividend Warrants are drawn
on our HAUZKHAS, Delhi (6015) branch who will act as the Controlling Branch.
The warrants are payable at par at all the branches of our Bank.
187 It has now been decided to conduct the surprise verification of jewels once in a
quarter as against the monthly verification carried out earlier. All other
terms and conditions of the verification process remain the same.
188
Offline payment of commercial taxes, Tamil Nadu state through our GBM module
INTRODUCED.
Financing farmers for
189 construction of Farm Financing farmers for construction of Farm House and Repairs/ renovation of
House under existing Farm House in their Agricultural land under ―Direct Agriculture‖.
‗Direct agriculture‘.
SCHEME FOR FINANCING FARMERS FOR CONSTRUCTION OF FARM HOUSE:
Purpose:
a. For construction of Farm Houses on owned farm/ agricultural land. The farm
house, besides being used as dwelling house of the farmer/ his family and also
labour families, will also have one or more farm production supporting structures
like input / produce store, cattle / livestock shed, tractor/ farm equipment/
machinery shed, threshingyard/ drying yard, sericulture shed etc., whether attached
or as separate units.
b. For repair of existing farm house.
Loan Quantum:
Loan quantum for construction of farm house as well as repair of farm house shall
be least of the following:
a) 80% of the estimated cost of construction or cost of repair of the farm house
b) 5 times the annual income / surplus of the farmer from all sources
i) Construction of new farm house: Minimum and Maximum quantum of loan

under the scheme shall be Rs.1.00 lakh and Rs.15.00 lakhs respectively. However,
in the case of coffee, arecanut, tea plantations or other high value horticulture
crops/ irrigated crops or farmers having satisfactory income from allied activities,
higher quantum of loan upto a maximum of Rs.25.00 lakhs can be sanctioned at the
Regional Office level only, based on the merits of individual cases by obtaining
collateral security of non agricultural property.
ii) Repair of existing farm house: Minimum and Maximum loan quantum shall be
Rs.50000/- and Rs.5 lakh respectively.
Margin: 20% of the estimated cost of construction / cost of repair.
Rate of interest and other charges: Base Rate+ 0.05 ( floating),presently

being 10.30% p.a.
Security:

a. Loans upto Rs.15.00 lakhs- Mortgage of landed property and the farm
house being constructed thereon as per the legal opinion.
b. Loans above Rs.15.00 lakhs: Apart from the above securities,
collateral security of non agricultural property should also be obtained.
Note: Total liabilities of the farmer, existing as well as proposed farm

house loan should not exceed 75% of the total value of the landed
properties offered as security to the Bank including value of the farm house
to be constructed.
Repayment period:
a) Construction of farm house:
Loan to be repaid within a maximum period of 15 years with moratorium period of
12 months. However, the dues shall be repaid in full by the time the borrower
attains 75 years which is the exit level cap. (For this purpose, age of youngest of
the joint borrowers to be taken into account).
b)Repair of farm house: Maximum repayment period of 5 years- half yearly or
annual equated installments. No moratorium period.
Sanctioning powers: Extant delegated powers of Branch for sanctioning secured

exposures or Rs.15.00 lakhs whichever is lower. In case of loans above Rs.15.00
lakhs, it has to be sanctioned invariably by Regional Office.
190 Payment of dividend warrants of M/s. NAVABHARAT VENTURES LTD.
192 Pre-closure/fore closure charges not to be levied on floating rate term

loans
193 Acknowledgement of Details of the Acknowledgment of debt to be fed in the Finacle

Debt
To enter the Debit Acknowledgement date in Loan Accounts
ACM (M) Modification Option (S) Scheme Details
194 Revised Guidelines For the ready reference of the field functionaries, some of the important
onKYC/AML/PMLA/CFT changes in the matter of obtaining officially valid documents while
/ Obligation of Banks opening new accounts for KYC compliance, Beneficial owner and cash
transaction etc. are mentioned in the Annexure -I to this Circular.
195 Master Circular on NRO & NRE Interest

196
LENDING POLICY – 2014
197 At present the caution advice issued by the RBI is being communicated to the field
CAUTION Advice and functionaries by way of HOCL. To make it simple, convenient and user friendly, the
URL. caution advice is now made available in the V-Web Solution in excel format
also.
Verification of applicants‘/guarantors‘ name in the RBI caution list is part of due

diligence to be conducted by the branches.
Needless to emphasis, the names of the parties appearing in the Caution Advice of
RBI, now provided in the digital format by the Bank, should be kept strictly
confidential and should not be divulged to the parties, to any of the customers the
Bank or to other banks etc., in any manner.
The URL for accessing the web portal is http://172.16.3.95:8189. The user ID
and password for the portal is same as the user ID and password for UPM (User

Profile Maintenance), Data Cleaning Portal, Asset Information & Monitoring

System (AIMS).
198 Precautions in respect of  The amounts for opening bulk term deposits in the names of Government
Bulk Deposits opened by Departments / PSUs and big Corporates normally comes directly by way of
Government/Quasi inward remittances in the form of RTGS, Cheque etc., and operative accounts
Government may not be available in many cases. In such cases also KYC guidelines are
Departments, Ministries, strictly adhered to without exception.
Public Sector
Undertakings, Large  The Branch should confirm to its Regional Office about KYC compliance in
Corporates etc., respect of all term deposits of Rs. 1.00 crore and above and as a one time
measure.
 Branches, on receipt of bulk term deposits of Rs. 1.00 crore and above should
report the complete details of such deposits to Treasury Management
Department, Head Office with a copy marked to the concerned Regional Office
and Planning &Development Department, Head Office.
 Branches should obtain consent letter from the Competent Authority of the
Organisation to capture the mobile number of the Accounts Officer/Financial
Officer of that organisation or any other authority duly designated by their
Competent Authority in the deposit account so as to enable us to send an SMS
immediately on opening of the deposit account and Branch should also
invariably feed the e-mail id in the deposit account so that an e-mail will be
generated and sent immediately on opening of the deposit account.
 The Deposit Receipt should be delivered by the BM/any Official of the Branch to
the authorised person only and due acknow-ledgement from them should be
obtained and held on record.
199 Lending Policy Guidelines The field functionaries are here by advised to ignore the contents under Sl.No.6
– Modification under Para No.9.04.02 of chapter 9 of Lending Policy 2014 which is reproduced
below:
Delegated The Delegated Powers of the RLCC shall be linked as a percentage

Powers for Delegated Powers of Rs.250.00 crore granted to the HO Level Cr
Approving Credit Approval Committee (HLCC) by the Ministry of Finance. Further,
Facilities under Delegated Powers shall be based on the Designation of the Executive
both will be the Chairman of the Committee.
Secured and
Unsecured To elucidate, where the Regional Head is the General Manager, the pow
exposures would be 150% of his/her power Delegated for according sanction
particular facility. If in his/her absence a DGM is officiating as a Regi
Head then the powers would get reduced to 150% of Delegated power
DGM.
200 Relaxation to Trade Reserve Bank of India, vide Notification RBI/2014-15/180/DBOD.No. BP.BC.32/
and Industry in the 21.04.012/ 2014-15 dated October 23, 2012 has informed that the relaxation to
State of Borrowers/ Customers in the state of Jammu & Kashmir in the matter of
Jammu & Kashmir concessions/credit relaxations stands extended upto 31st March, 2016.
In this connection, the field level functionaries are advised to refer to our Circular
No.11192 dated 12.08.2011 wherein details of RBI‘s earlier Notification are given.
201 Revised Guidelines on Please refer to paragraph 2 of RBI Master Circular DBOD.AML.BC.No.22/14.01.001/

KYC/AML/PMLA /CFT/ 2014-15 July 1, 2014, as per which branches are required to:
Obligation of Banks
1. Undertake client due diligence measures while commencing an account based
relationship. Such measures include identifying and verifying the customer and
beneficial owner on the basis of reliable and independent information and data or
documentation.
2. Apply client due diligence measures to existing clients at an interval of

two/eight/ten years in respect of high/medium/low risk clients respectively.
3. Carry out ongoing due diligence of existing clients in order to ensure that their
transactions are consistent with the bank's knowledge of the client, his business and
risk profile and where necessary, the source of funds.
4. Obtain 'positive confirmation' at two/three years in respect of medium and low

risk customers respectively.
The Reserve Bank of India has now advised that while the requirements of client
due diligence measures applied when establishing an account based
relationship and on-going due diligence would continue as indicated at
point no. 1 to 3 above, it has been decided to dispense with the
requirement of 'positive confirmation' as indicated at 4 above.
Further, the requirement of applying client due diligence measures to existing

clients at an interval of two / eight / ten years in respect of high / medium
/ low risk clients respectively, would also continue taking into account whether
and when client due diligence measures have previously been undertaken and the
adequacy of data obtained. Physical presence of the clients may, however, not
be insisted upon at the time of such periodic updations.
202 Conducting search All concerned to note that:

through CERSAI to
verify the existing i) As per HOC 13322 dt. 02.12.2013 search in the CERSAI data base is already
charges on the made compulsory in our Bank as part of security due diligence.
properties offered as
security report is ii) CERSAI reports/certificate should be obtained as part of security due diligence.
mandatory.
ii) Also, in terms of HO circulars stated above, noting of our charge in the CERSAI
data base is compulsory wherever a property is taken as security for a credit limit.
The field functionaries may note that such registration of charge in the central
registry should be made before the disbursement of loan.
203 Revised Railway fare– Category Travel Maximum Maximum entitlement as per revised Encashable
eligibility permissible Railway fare Amt. per person
Increase in quantum of distance (to &
LFC/LTC and fro) Peak Lean Season* Peak Lea
encashment. Season* Season*
JMG – I and 1st Class or 4500 + 4500 Rs.8304/- Rs.8064/- Rs.6228/- Rs.6
MMG-II & III II AC 2 Tier Kms.
SMG –IV and AC-I Class 5500 + 5500 Rs.17232/- Rs.16480/- Rs.12924/- Rs.1
above by train kms.
*Peak and Lean season shall be as under:-
Lean Season: 1st February to 31st March; and

1st August to 31st August
Peak Season: 1st April to 31st July; and

1st September to 31st January

204 Inoperative Accounts – All savings Bank and current accounts without customer as well as third party
Revised Guidelines induced, debit as well as credit transactions for over a period of two years, should
be classified as inoperative.
There may be instances where the customer has given a mandate for crediting
dividend on shares to Saving Bank account and there are no other operations in the
SB account. The same should be treated as a customer induced transaction since
the dividend on shares is credited to SB account as per the mandate given by the
customer. As such the account should be treated as operative account as long as
the dividend is credited.
In view of the above guidelines, for the purpose of classifying an account as

inoperative, both the types of transactions i.e. debit as well as credit transactions
induced at the instance of customers as well third party should be considered.
205 Legal Decision Affecting Case Name: Dashrath Rupsingh Rathod Vs State Of Maharashtra & Anr
Bankers. reported
in CDJ 2014 SC 647.
In this case Supreme Court of India settles the legal position that the
territorial
jurisdiction for filing a complaint under Section 138 of the Negotiable
Instruments Act, 1881 is the Court at the place where the cheque is
dishonoured.
Legal Decision Affecting Bankers- ―Supreme Court of India settles the legal position
that the territorial jurisdiction for filing a complaint under Section 138 of the
Negotiable Instruments Act, 1881 is the Court at the place where the cheque is
dishonoured.‖.
206 Attention is drawn to HOC 14194, dated 30.08.2014 on some of the important
changes in the matter of obtaining officially valid documents while opening new
accounts for KYC compliance, Beneficial owner and cash transaction etc. are
mentioned in the Annexure-I to this Circular.
To create public awareness and give wide publicity to these simplified KYC
measures, RBI has issued a poster and booklet comprising a few common
questions relating to Know Your Customers (KYC) norms for opening Bank Accounts.
Branches are advised to initiate steps to create awareness among customers /

general public by circulating / pasting the Posters /booklet on the Notice Board.
207 NOT ISSUED

208 The Committee headed by Secretary DFS and Central Vigilance Commission has
directed that the practice of extending credit facility for adjusting overdues is not
proper. Other than additional funding under restructuring mechanisms, the field
functionaries shall note to desist from recommending/approving credit facilities for
adjusting overdues in the existing credit limits.
Granting additional credit facilities for adjusting overdues, also known as ‗Ever
Greening of Loan Account‘ is strictly prohibited as per lending policy of the Bank.
209
Introduction of USSD based mobile banking service for performing banking
transactions using mobile without installing any application, by dialing a
common number *99#.

NPCI, as the umbrella organization for retail payments in India has launched service
called National Unified USSD Platform [NUUP] based mobile banking service,
wherein the customers can carry out basic banking transactions by dialling a
common number *99#.
Prerequisite: Customer must have registered for Mobile Banking with the required
credentials like ( Application Password and MPIN)
Features supported by USSD

1. B alance Inquiry
2. M ini Statement
3. F und Transfer – MMID
4. F und Transfer – IFSC code
5. Know MMID
6. C hange MPIN
7. G enerate OTP (yet to be enable)
The minimum transaction amount is Rs 5.00.
210 The system of issuing Branch should adhere to point no. (a) (iv) SI no.7 of Book of Instruction- with
fresh cheque books to regard to issuance of cheque books which read as " Fresh cheque book should be
the issued only against production of duly signed requisition slip from the previous
constituents – cheque book issued to the constituents‖.
precautions to be taken
to avoid Before issuing the fresh cheque book signature of the account holder in the
risks is reiterated. requisition slip should be verified with the specimen signature and a rubber stamp
reading ―signature-is verified‖ is to be affixed on the requisition slip , duly
authenticated by the officer concerned.
Application made other than the requisition slip must be referred to the Branch
Manager personally. Genuineness of the application should be ascertained by having
a tactful talk with the massager presenting the application and / or account holder
over phone originating the call from the branch. Only, after the branch manager ( in
his absence the Asst Branch Manager) permits the issue to the messenger, the
cheque book can be ssued duly obtaining the acknowledgement from the
messenger.
211 Customer opting to avail TAB Banking will contact the bank through the following
modes:
 Missed Call Request
 Email Request
 Website Request
Any request raised through above modes will reach our call centre (CRM Cell) who
will refer to the corresponding Regional Office. Marketing officer at the Regional
office will contact the customer, informs the customer about all the required
documents and schedules an appointment with the customer for a visit.
The Marketing Officer would then visit the customer at the appointed time along
with a Tablet PC and carries out the account opening process, as follows.
Captures Photographs & KYC documents using Tab
Enters the basic data using Tab
Fills the physical format of account opening & obtains signature
Hands over Account opening kit to the customer [only to HNI] and kit reference
numberis noted
in the Tab Account Opening Screen.

Customer receives SMS message welcoming him to Vijaya Bank along with
reference number
and time taken for account activation [7 days].
Collects Initial Deposit through Cheque for non FI customer, zero balance for FI
customer.
Transmits scanned copy of documents, photographs, KYC etc to branch
concerned.
212
Customer complaints : In order to streamline the entire process of customer grievance redressal
Modification in mechanism and in compliance with the directives of the Ministry of Finance,
„Standard Public Government of India, „Standard Public Grievance Redressal System (SPGRS)
Grievance Redressal was launched with effect from 15 April 2013.
System (SPGRS)‟ &
the process of SPGRS is an in-house software application which facilitates tracking, analysis and
handling customer quick resolution of the complaints. However, keeping in view the need for effective
complaint control & monitoring of the resolution of customer complaint, the said software has
further been modified as a one point reference/solution for all Customer
Complaints.
At any point of time, the SPGRS will provide comprehensive details on the:
Complaints received through various channels
(Customers/RBI/IBA/Ombudsman/GoI etc.,)
Nature of the complaints so received
Status of the complaints
Time taken to resolve a complaint
Complaints that are escalated
Region wise and branch wise analysis of complaints
Salient features of the modified SPGRS system & important changes in the
process of handling customer complaint :
Internet Module - This is a web based utility and can be accessed by the
complainants through our website. Here, the customer can lodge his complaint as
also can further track the same.
Intranet Module - Menu-driven system - Branches/ROs/ HO departments can
login in http://172.16.7.134:8921 by using their UPM password to use this site
and address the grievances.
Here, not only the branch but also the Regional Offices and Customer comfort cell at
HO, who receive complaints other than in SPGRS mode (i.e. by way of letters, mails
etc.,) from the customers, RBI, Ministries, Ombudsman etc., should record the
same in SPGRS.
213 For the generation of A. Threshold limits for generation of reports:

Credit Information
Reports, in addition to OTHER THAN HOUSING LOAN:
the CIBIL, two more Exposure upto 50 lakhs CIBIL / Experian / Equifax
credit information For Exposure beyond 50 lakhs CIBIL plus Experian / Equifax
companies viz., M/s
Experian Credit
Information Company of
India Limited and M/s FOR HOUSING LOANS:
Equifax Credit Exposure upto (TEN)10 lakhs CIBIL / Experian / Equifax
Information Services For Exposure beyond (TEN) 10 lakhs CIBIL plus Experian / Equifax
Private Limited are
empanelled by our Bank.

Therefore, guidelines for Obtention of Credit Information Reports in respect of the following category of
generation of Credit borrowers is exempted.
Information Reports for  Government Sponsored Schemes with aggregate loan up to Rs.2.00 Lakh
the purpose of borrower  Agriculture advances up to and including Rs.50000/- per borrower
due diligence stand  Loans against term deposits
revised.  Gold Loans
 Staff Loans
 Loans under DRI scheme
 Loans against pension (where pension is credited with us)
The charges to be recovered from the borrowers for the reports generated from
Experian and Equifax will be as under:
Name of the CIC Price per report Price per score Total charges*
Experian Rs.28.00 Rs.15.40 Rs.43.40
Equifax Rs.27.50 Rs.10.00 Rs.37.50
*For getting additional information viz., current balance, amount overdue, credit
limit and actual payment, 20% additional on total charges to be paid Plus ST.
214 Scheme for Extending Financial Assistance to Sugar Undertakings – 2014‟

(SEFASU 2014)‟ –Interest Subvention Claims.
Additional guidelines received from Nodal Bank for claiming interest

subvention under SFEASU-2014.
215 Acceptance of Gifts by ―It has been advised that NO Gifts should be presented by the public sector
Government Servant undertakings,
banks, etc. to a number of persons including government officials during festive
occasions such as Diwali, Christmas, New Year, etc. This matter has been the
subject of comments in the press, media, etc. The Commission has considered the
matter and is of the view that this practice, at least, so far as Government Servants
are concerned, needs to be discouraged.
216 HRR enchanced Enhancement in HRR ceiling Limits.

217 Vijaya Vikas Features Contest for staff members on the occasion of our
84th
Foundation Day.
218 Dress code for VIJAYEES.
219 Vijaya Tax Savings Increase in the maximum amount that can be accepted under Vijaya Tax Savings
Scheme- Modifications Deposit scheme from the existing Rs. 100,000/- to Rs. 150,000/-per depositor per
financial year.
In order to facilitate NRI customers to invest their locally generated funds for
availing Tax benefits, the above scheme has also been extended for the benefit of
NRI customers under,‖ NRO - Vijaya Tax Savings Scheme‖, vide HOC 13151

dt.28.05.2013.
220
Branches are advised to look into customer service issues on priority and
take all necessary steps for ensuring prompt and courteous customer
service to
make the Banking experience hassle free.
221 Fraud Cases A/cs Recovery efforts to be effected in respect of fraud cases
222 444 Extended upto Vijaya 444 Term Deposit Scheme Extended for a further period of three months,
December 2014 i.e., till 31st December 2014 with the existing features.
223 Generation of Credit The procedure for accessing and generating the CIR from Experian and
Information Reports Equifax is elaborated.
through Experian and
Equifax CICs apart
from CIBIL for taking
Credit decisions
SL.NO.41 (Page no.11) Following Clause added in DOC53
224 Modified DOC 53
(Loan Agreement for I/ we further agree declare undertake assure and confirm that the list of my/our
Priority/ Non Priority legal heirs with their full names and addresses as given hereunder in SCHEDULE-IV
Sector Advances) and is to enable the bank to take steps for recovery of its dues from any of them in the
DOC -46 (Letter of event of my demise or any of us/ during the pendency of such credit facilities
Guarantee) extended by the bank to the borrower.
SCHEDULE IV (PAGE NO.14) – List of Legal Heirs in DOC53
DOC-46
In order to comply with the RBI terms, the Letter of Guarantee (DOC-46) is
modified incorporating a clause to the effect that Guarantor/s is accepting to declare
him/ them as wilful defaulter along with borrowers upon their failure to pay as
demanded by the bank in terms of the guarantee deed
12. I/ we further agree declare undertake assure and confirm that the list of my/our
legal heirs with their full names and addresses as given hereunder in SCHEDULE is
to enable the bank to take steps for recovery of its dues from any/all of them in the
event of my demise or any of us/ during the pendency of such credit facilities
extended by the bank to the borrower.
13. I /we, hereby agree/s that, upon my/our failure to pay/comply as demanded by
bank in terms of this Letter of Guarantee, bank can declare me/we/us as ―Wilful
Defaulter‖ as per RBI guidelines.
225 Deduction of Income  Income tax slabs have been revised in respect of individuals and Senior
Tax at Source from Citizens.
various payments and
TDS rates applicable  Branch Managers should ensure to obtain Form 15G/ Form 15H from
for the Financial Year eligible customers annually. An acknowledgment be given to the
2014-15.(AY2015-16) customer on receipt of Form 15-G/15-H.
226 Staff Accountability Implementation of revised policy on staff accountability.

Policy (Revised)
227 Wilful Defaulter - A "wilful default" would be deemed to have occurred if any of the following events is
Clarification regarding noted:-
Guarantor, Lender and

Unit. (a) The unit has defaulted in meeting its payment / repayment obligations to
the lender even when it has the capacity to honour the said obligations.
(b) The unit has defaulted in meeting its payment/repayment obligations to the
lender and has not utilised the finance from the lender for the specific purposes for
which finance was availed of but has diverted the funds for other purposes.
(c) The unit has defaulted in meeting its payment/repayment obligations to the
lender and has siphoned off the funds so that the funds have not been utilised for
the specific purpose for which finance was availed of, nor are the funds available
with the unit in the form of other assets.
(d) The unit has defaulted in meeting its payment/repayment obligations to the
lender and has also disposed off or removed the movable fixed assets or
immovable property given by him or it for the purpose of securing a term loan
without the knowledge of the bank/lender.
Word “lender” will cover all the Banks, who have provided “Fund Based Facilities i.e.
loan and Non Fund based Facilities such as Derivatives, Guarantee and Letter of
Credit to the Borrowers.
Word “Unit” means/includes basically borrower who are individual, juristic persons
such as Companies, Limited Partnership Firm, Society, Trust, Proprietorship Firm,
Joint Ventures etc. Hence Bank may also report names of those persons who are in
charge and responsible for the management of the affairs of the business
enterprise.
In case of a company, the name of Directors are to be informed who were on the
board of company from the date of NPA, including name of Director who has
resigned after account becomes NPA.
In general the following person will be responsible for the affairs of the business -
Partnership Firm - All the partners, Limited Liability Partnership -Designated
Partner, Trust– Managing Trustee, Society - The Committee members.
GUARANTORS:
 In case Individual Guarantor (who is not Director/Partner in the Unit)

refuses to comply with the demand made by the Bank, despite having
sufficient means to make payment of the dues, such individual Guarantor
can also be treated as a Wilful defaulter.
 However RBI has clarified that, same will be applicable only prospectively
and not for the account where guarantees were taken prior to date
of RBI Circular i.e. 09/09/2014. Further RBI has advised to ensure that
this position is made known to all prospective guarantors at the time of
accepting guarantees.
In view of the above change in guidelines on the subject, the Guarantee Deed i.e.
DOC – 46 is amended and following clause has been added therein and same has
been circulated to Branches/offices vide HO Circular No. 14224 dated 09.10.2014
I/We, hereby agree/s that, on default committed on invocation of

the Guarantee, bank can declare me/we/us as “Wilful defaulter” as

per prevailing RBI guidelines.
Proposal Format to be submitted by Branch/RO to declare the borrower as Wilful

Defaulter has been modified, and is enclosed to circular.
228 JEWEL LOANS-Enhancement of limit from Rs.1.00 lac to Rs.3.00 lac for
Non-Agriculture Loans with Bullet Payment.
229 Subsequent to introduction of SFMS for sending and receiving of Inland

Introduction of LCs, operational system for sending and receiving Bank Guarantees
Structured Financing through SMFS has been finalized for implementation. Accordingly, effective
Messaging from 13.10.2014, our Bank is implementing the system of issuing of Inland
System (SFMS) for Bank Guarantees inthe SFMS platform and advising the beneficiary in
sending and receiving respect of bank guarantees issued by other banks through SFMS.
Bank
Guarantees (Inland). It has been decided that effective from 13.10.2014, messaging the details of Bank
Guarantees issued by our Bank through SFMS shall be mandatory. Also, operational
system is finalised to advise issuance of a bank guarantee to the beneficiary
whenever such request is received from the issuing bank.
It is worthwhile to note that while the entire LC is transmitted and communication is

made through SFMS, in the case of Bank Guarantees only a confirmation for
issuance of a Bank Guarantee is made through SFMS platform.
The Department of Financial Services in its communication No.F.No.7/112/201-BOA

dt. 14.07.2014 clarify that ―BGs may continue to be issued in paper form and
delivered by issuing banks to beneficiary/applicant as being done
presently.However, in addition to it a separate advice of the BG be sent by issuing
bank to the advising bank through SFMS only after which the paper BG could
become operative‖.
In addition to the existing system, a confirmation for issuance of bank guarantee

has to be provided to the beneficiary under the SFMS platform to be advised by the
bankers of the beneficiary (the details of the name & address of the bankers of the
beneficiary to be mentioned by the applicant in the ‗Request Letter for opening of a
Bank Guarantee‘ [Annexure II to HOC 175/2010]).
230 Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/
Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of
Money Laundering Act (PMLA), 2002.
e-KYC Service of UIDAI – Recognising On-line Aadhaar authentication (electronic

verification process) to be accepted as an 'Officially Valid Document' under PML
Rules.
231 To report Operational As per RBI guidelines, Banks are required to collect internal Operational risk loss
Risk losses/events on data from all appropriate business activities and geographic locations, which must
areal time basis and be comprehensive enough to capture all material losses arising on account of
provide inputs for people, process, system and external factors.
RiskControl Self
Assessment (RCSA) and It is important that all Branches/Offices of the Bank should mandatorily report
Key Risk Indicators Operational risk loss Incidents and near miss events for proper identification,
(KRIs) questionnaires. assessment and effective management of Operational Risk. Besides, our bank is
required to built a database of Operational risk loss events including near miss

events, at least for a period of five years, so as to switch over to advance

approaches of Operational Risk Management. In order to facilitate compilation of
such loss data, bank has implemented SAS Oprisk monitor solution wherein all
Branches/ Offices are required to report Operational risk loss incidents (including
near miss events) correctly on a real time basis.
232 Insurance coverage of 1 NPCI is offering an insurance coverage of Rs 1 lac per card (accidental death and
lakh for Rupay Debit permanent disablement only) to RuPay card holders subject to certain conditions.
Cards After careful consideration, it is now advised that accident insurance facility will be
given to only card held by a customer. The card to which the claim would be given
would be decided by the customer while lodging a claim. ― As such, Clause No 5 of
Page 2 of HOC 14123 dated May 30, 2014 is now revised as under:
Original Clause:
―Rupay cardholders will be eligible for the compensation on all eligible cards up to
maximum 5 cards per cardholder. For e.g. in case a Rupay cardholder has 5 cards
as on April 01, 2014 of which only 3 cards had done a successful financial or
nonfinancial
transaction on or after Feb 15, 2014 (as per above example), nominee(s)/legal
heirs/cardholder will be eligible for maximum insurance benefit of Rs 3 lakhs. In
another case, where a cardholder has 6 Rupay cards as on April 01, 2014 and all six
cards have conducted a successful financial or non-financial transaction on or after
Feb 15, 2014, he/she will be eligible for a maximum claim of Rs 5 lakhs.‖
Amended Clause:
―The RuPay cardholders will be eligible for the compensation on only 1 eligible
RuPay card per cardholder or per customer even if multiple cards of different bank
are meeting the eligibility criteria. The choice of the card for the claim would rest
with the Customer/ nominee.‖
Legal Decision Affecting Bankers – ―Supreme Court of India settles the legal position
233 Legal Decision Affecting that the territorial jurisdiction for filing a complaint under Section 138 of the
Bankers Negotiable instrument Act 1881 is the Court at the place where the cheque is
dishonoured‖.
234 RBI Guidelines /Clarifications on the points raised by IBA on various amendments to
Know YourCustomer PML Rules, vide RBI letter no. DBOD/AML/BC/26/14.01.001/2014-15 dated
(KYC) Norms /Anti- 17.07.2014.
MoneyLaundering (AML)
Standards/ Combating of IBA had raised some of the issues with RBI for their guidance/ clarifications. In this
Financing of Terrorism connection, comments of RBI with respect to the clarifications sought by IBA are
(CFT)/ Obligation of attached in annexure.
banks underPrevention
of Money Laundering Act
(PMLA), 2002.
235 ROI – 444 Days Deposit The interest rate on Vijaya 444 Term Deposit scheme effective from 20th
scheme October 2014 will be 9.05% p.a. as against the present rate of 9.15% p.a.
236
IBA has modified Indian Bank‘s Association vide their letter No.C&I/CIR/2014-15/675 Dt.29.09.2014
certain rules in has now advised the banks on the formation and conduct of Joint Lenders
respect of Forum(JLF) and Independent Evaluation Committee (IEC) based on the
formation and representations received from member banks and in consultation with RBI.
conduct of Joint IBAguidelines on the formation of JLF are as below:
Lenders Forum(JLF)

and Independent 1. Banks in the JLF should be represented by an officer of the bank not below the
Evaluation Committee rank of AGM and with a clear mandate from the Bank.
(IEC) 2. The IEC meetings may be held at monthly or at shorter intervals, as per the
convenience of IEC members and the business requirement.
3. With increase in number of reference to JLF, the heads of the institutions on the
IEC panel may be requested to depute other senior functionaries of the institute to
facilitate speedy disposal of referred cases.
4. The quorum for IEC meeting will be three out of four members. It will be
advisable to obtain suitable confirmation from the members while fixing the date of
the meeting.
5. As far as possible the IEC should dispose off reference in its first meeting itself.
To facilitate a speedy disposal of IEC referred, the lead lender/MI should send all the
relevant papers and information in one lot. IEC should reach a consensus on the
references made to it; otherwise a decision should be taken by the IEC based on a
simple majority of the members present.
6. The remuneration etc. Of IEC members attending the meeting would be as

under:
i. Members attending IEC would be paid a sitting fee of Rs.25000/- per meeting per
reference.
ii. Members will be reimbursed travelling, a stay and out of pocket expenses,on
actual, as applicable to the senior management of the banks/seniorpartners of
Statutory Central Auditors of the banks.
iii. If more than one case is discussed in the IEC on any day, the out of pocket
expenses may be apportioned on the IEC references considered onthat day.
Whenever our branches take participation in the JLF, it is expected that the
branches
headed by AGM and DGM shall take a lead to ensure our bank is a member of the
IEC
and take active participation in the IEC functions.
237 Reserve Bank of India vide letter No. DBOD/Dir/BC.No.109/13.03.00/2013-14 dated

06.05.2014 has advised that henceforth banks are not permitted to levy penal
charges for non–maintenance of minimum balances in any in-operative
account.
238 Revised Delegation of Powers Booklet.
239 Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/
Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of
Money Laundering Act (PMLA), 2002.-Simplification of KYC Norms – Clarification.
Branches are advised to ensure that customers are not unnecessarily asked to
submit additional proofs of address for their current address in cases where proofs
of address for permanent address are already available with the Bank. In this
regard branches are advised to be guided by HOC 14162 dated 11.07.2014.
240 E-payment of Service Tax and Central Excise
241 UPDATION OF DAILY the REPORTING SYSTEM FOR SUIT FILED ANDDECREED ACCOUNTS
DEVELOPMENTS IN DEVELOPMENTS (i.e suit filed Software) has beenintroduced vide HOC-14086 dated
THE SUIT FILED 07/04/2014, the day to day developments,which the nodal officers used to report to
DECREED the Branch/RO/Head Office, in theformat prescribed therein in Annexure I of HOC-
ACCOUNT SOFTWARE. 12250, has to be now daily updated in the Suitfiled Software i.e. in the REPORTING

SYSTEM FOR SUIT FILED AND DECREED ACCOUNTS DEVELOPMENTS, without fail.
242 All disputes of our cardholders irrespective of whether transaction happened at our
ATMs/other bank ATMs will be settled through DCRMS only as per the new /revised
procedure. No dispute/claim should be settled by the branch directly with the
cardholder.
For any clarifications on the subject matter, branches can contact Debit Card ATM
Disputes section at Card Division, HO. The contact point of the section is as follows :
INET: HO – DebitCard ATM Disputes
Telephone: 080-25584066 ext 387/388
IP Phone: 900300
243 Change in procedure of recovery of disputed amount from the branches for disputes
pertaining to other bank card holder transactions in our ATMs:
244 Lending Powers Modified lending powers of Branch Manager for sanction of clean loans to
SHGs/JLGs:
Clean loans to Self Help Groups(SHGs) & Joint Liability Groups(JLGs):
ScaleI-1.50, ScaleII-4.00, ScaleIII-6.00
245 Use of SFMS for sending SFMS platform has to be mandatorily used for issuance of Letters of Credit
and receiving Letters as instructed already as per HOC 12251.
of Credit
HOC 12251:
Considering the present system of opening of Inland Letters of Credit and also
sending and
receiving of the relative communications, the DFS, Ministry of Finance (MoF) MoF
has felt the need for introducing a secure messaging system that would serve as a
platform for sending/receiving intra-Bank as well as inter-Bank messages in
connection with the non-fund-based business of the PSBs – specific guidelines for
opening of Inland Letters of Credit (ILCs) under SFMS platform.
The SFMS is built on the lines of SWIFT [used for overseas financial messaging] but
has many more utilities to offer. The major advantage of SFMS is that it can be used
practically for all purposes of secure communication within the Bank and between
Banks. While the intra-Bank part of SFMS can be used by the Banks to take full
advantage of the secure messaging facility, the inter-Bank messaging part is useful
for applications like Electronic Funds Transfer (EFT), Real Time Gross Settlement
System (RTGS), Delivery Versus Payments (DVP), Centralized
Funds Management System (CFMS) and so on.
Considering the advantages associated with the use of SFMS, the DFS has decided
to make use of SFMS mandatory for the Public Sector Banks (PSBs) for rendering
trade finance services [i.e. Inland Letters of Credit (ILCs) and Inland Bank
Guarantees (IBGs)] in order to establish a safe and secure environment for
conducting trade finance business in the Indian Banking industry.
The process flow for opening/transmitting and receiving Inland Letters of Credit
(ILC) messages through SFMS platform has been detailed in ‗Annexure - I‘ and
‗Annexure – II‘ respectively.
The format of Documentary Credit under SFMS platform is furnished in ‗Annexure–
III‘.
246 Conveyance limits Monthly conveyance reimbursement limit to Award Staff revised to Rs.500/- for
enhances to clerks, Clerks, Rs.250/- for peons and Rs.200 for PTS.

peons & PTS.

247
The Ministry of Housing National Urban Livelihood Mission (NULM):
and Urban Poverty
Alleviation, Govt of India SELF – EMPLOYMENT PROGRAMME (SEP):
(MoHUPA) has
launched National Urban 1.Self Employment Programme (SEP) will focus on financial assistance to
Livelihood Mission individuals/groups of urban poor for setting up gainful self-employment ventures/
(NULM) by Restructuring microenterprises, suited to their skills, training, aptitude and local conditions. SEP
Swarna Jayanti Shahari will also support Self Help Groups (SHGs) of urban poor to access easy credit from
Rozgar Yojana (SJSRY) bank and avail interest subsidy on SHG loans.
replacing the existing
SJSRY scheme w.e.f 3. Educational Qualification and training Requirement: No minimum
24th September 2013. educational qualification is required for prospective beneficiaries under this
component. Entrepreneurship Development Programme (EDP): In addition to
skill training of the beneficiaries, the ULB will also arrange to conduct
Entrepreneurship Development Programme (EDP) for 3-7 days for individual
and group entrepreneurs.
4. Pattern of Financial Assistance - will be in the form of Interest subsidy on

the bank loans at 7%.
Interest subsidy, over and above 7% rate of interest will be available on a bank loan
for setting up of individual or group enterprises. The difference between 7% p.a.
and the prevailing rate of interest will be provided to banks under NULM. Suitable
certification from banks will be obtained in this regard.
5. The norms/specifications for Individual/ Group micro enterprise loans

are as follows.
a) Individual Enterprise (SEP-I) - Loan & Subsidy
Project Cost: The Maximum unit project cost for individual micro enterprise
cases is Rs. 2.00lakhs (Rupees Two lakhs).
Collateral on Bank Loan: No collateral required in case of loans upto Rs.
10.00lakhs extended to units in the MSE sector, only assets created would be
hypothecated/ mortgaged/ pledged to banks for advancing loans. CGTMSE cover for
SEP-I loans shall be obtained as per HOC 14057 dated 14.03.2014.
Repayment: Repayment schedule ranges from 5 to 7 years after initial
moratorium
of 6-18 months as per norms of the Bank.
b) Group Enterprises (SEP-G) – Loan & Subsidy

A Self Help Group (SHG) or members of an SHG constituted under SJSRY/ NULM or
a
group of urban poor desirous of setting up a group enterprise for self-employment
can avail benefit of subsidised loans under this component from any bank.
Eligibility: The group enterprise should have minimum 5 members with a

minimum of 70% members from urban poor families. The application/ intent
to
set up a group enterprise by beneficiaries/ group members should preferably be
referred by the community structures like SHG/ Area Level Federations formed
under
SJSRY/NULM.
Project Cost: The Maximum unit project cost for group micro enterprise cases
is
Rs. 10.00lakhs (Rupees Ten lakhs).
Loan: Project cost less the beneficiary contribution (as specified by Bank) would be

made available as loan amount to the group enterprise by the Bank.

Collateral Guarantee on Bank Loan: No collateral guarantee required. Only
theassets created would be hypothecated/ mortgaged/ pledged to banks for
advancing loans. CGTMSE covers for SEP-G loans shall be obtained as per HOC
14057 dated 14.03.2014.
Repayment: Repayment schedule ranges from 5 to 7 years after initial moratorium
of 6-18 months as decided by Banks.
6. Procedure for interest subsidy: - All scheduled commercial banks(SCBs),

Regional Rural Banks(RRBs) and cooperative banks, which are on the Core Banking
Solution (CBS) platform would be eligible for getting interest subvention under the
scheme After disbursement of loan to the beneficiaries, the concerned branch of
the bank will send details of disbursed loan cases to ULB along with details of
interest subsidy amount.
The settlement of claims made by banks would be done on quarterly basis by

the ULBs, however the submission of claims should be monthly. The ULB will check
the data at their end and will release the interest subsidy amount (difference
between 7% p.a. and prevailing rate of interest) to the banks.
Interest subsidy, over and above 7% of rate of interest is available on a bank loan
of Rs. 2.00lakh in case of individual micro enterprise and Rs. 10.00lakh for setting
up of group enterprise. The difference between 7% pa and the prevailing rate of
interest will be provided to Banks under NULM.
7. Procedure for sponsoring of Applications: - The application for individual

and group enterprise loans will be sponsored by the Urban Local Body (ULB)
which will be the sponsoring agency for the individual and group enterprise.
8. Task Force at ULB Level. - A Task Force may be constituted at ULB level for
recommending cases for individual and group enterprises for onward transmission
to the banks by the ULB. The Chief Executive Officer (CEO) / Municipal
Commissioner of ULB will be responsible to constitute the Task force and will be The
Chairman of the Task force.
9. Opening of account under CBS: DIT, HO has opened a new scheme code for
the scheme and the details are as under. Branches should invariably open all new
accounts under applicable scheme code only.
1 Individual Enterprise ( SEP-I)

Term Loans SL934
CCH type of Loans CC630
2 Group Enterprise (SEP-G)

Term Loans SL935
CCH type of Loans CC631
10. Classification: Priority – MSE- (Manufacture/ Service ) – Weaker Section
248 Premature closure of All premature closure of deposit accounts should be counter singed by the Branch
deposit accounts Head/Asst. Branch Manager. If both the Branch Manager and the Asst. Branch
Manager are not available, it should be counter signed by the two officials of the
branch.
249 V- CASH (Term Loan) for Quantum

Salaried Class- Upward a)For salaried persons :
revision in quantum of Last 12 months‘ average net take home salary with maximum of Rs.6.00 lakh
loan and revision subject to
indelegated power to maintenance of 40% net take home salary.

sanction V-Cash term

loan. The following delegation of power has been approved to Sanction V-Cash Limit:
RL
SCALE - I II III IV V & VI (A
LAKHS - 2 3 3 4 5 6
V-Cash term loans over and above the amount of Rs.6.00 lakhs be considered on
case to
case basis provided sufficient collateral security is available and the approving
authority for the same shall be GMLCC at Head Office.
250 Modus operandi of In terms of Ministry of Finance guidelines, brief details on Modus operandi of frauds
frauds occurred in our Bank for the period from July 2014 to September 2014 is circulated
among branches to exercise caution and to prevent the frauds.
251 Incentives to officers Officers posted to North Eastern Region are now (wef 26.9.2014) eligible for
posted in North Eastern INCENTIVE of 20% of Basic Pay, with a minimum of Rs.3000/- pm and a maximum
Region. of Rs.7500/- pm. These officers however will not entitled to Special Area Allowance
otherwise applicable to this region.
252 Agricultural Marketing Merging of Gramin Bhandaran Yojana (GBY) and Agricultural Marketing
Infrastructure (AMI) Infrastructure,Grading and Standardization (AMIGS) into one scheme as Agricultural
–Operational Marketing Infrastructure (AMI) under Integrated Scheme for Agricultural Marketing
Guidelines (ISAM).
The Scheme is applicable only to beneficiaries of SC/ST category and for

North Eastern Regions for the time being.
253 NOT ISSUED

254 NOT ISSUED
255 It is proposed to have a Special Campaign named “Self Help Group (SHG) and
Joint Liability Group (JLG) - Bank Linkage Campaign” which would accelerate
credit flow to Agriculture, MSE women, weaker section etc from 01-12-2014
to 31-01-2015.
256 ‗Year End Cash Back‘ The cardholders will be offered a cash back of Rs 100/- which will be credited to
campaign for Debit their account afterthe campaign period WHO use their debit card for minimum 5
Cards. POS/ E-Commerce transactions of minimum transaction value of Rs.500/- each, in
each month during the campaign period.
257 HOLIDAY ROOMs at Darjeeling.

Pradhan Hotel, Pradhan Niwas, 57 Gandhi Road,
DARJEELING-734 101. Phone: 03542252103,09484151069
HOLIDAY ROOMs at Goa:

Le-Magnifique Hotel, No.406/230, Plot no.90, Nova Cidade,
Behind PDA Colony, Alto Porvorim, Bardez, GOA-403521
Ph: 09822142938/09881493938.
258 In spite of clear

instructions inplace, the Accepted practice of calculation of drawing power is as under:
comments of non-
computation of Drawing Sl.No. Details Amount – Rs.
Power and non-updation i. Opening Stock
of security value in the ii. Opening value of Receivables/Book-debts
CBS and absence of iii. Add: Purchases

consistencies in arriving iv. Add: Credit Sales

at the drawing power Total (A)
have been persisting v. Less: Withdrawals of Stock
comments in almost vi. Less: Sundry Creditors (including the purchases made
every statutory audit. under LC)
The field functionaries viii. Less: Receivables realised (including bills discounted)
needto ensure that such ix. Closing value of stock/receivables (B)
basic loan monitoring x. Less: Stipulated Margin (as per sanction)
aspects are no longer xi. Drawing Power
commented by the
statutory auditors.
Further value of the security and drawing power should invariably be updated in the
Finacle without fail.
259 444 – ROI Downward Revision in the rate of interest of “Vijaya 444” to 8.90%
effective from 05 December 2014.
260 Compassionate Introduction of Scheme for Compassionate Appointment and Discontinuance of

Appointment payment of exgratia amount to the dependents of the deceased employees/
employees retired on medical grounds in lieu of compassionate appointment with
effect from 05.08.2014
261 ELECTRICAL SAFETY & An electrical audit helps the bank to identify defects in electrical
ENERGY AUDIT - equipments/appliances/ fittings/ cables & wires/ earthings that adversely impacts
BRANCH/ the safety of the branch by causing fire related incidents and also in identifying
OFFICE energy leaks or problems. The findings of the electrical audit will enable the bank to
PREMISES/CURRENCY rectify the electrical defects and also in reducing electrical energy consumption.
CHESTS/ATM SITES Electricity audit is simply an audit or calculation of how much electricity is being
used in our branches/ offices.
The recent electrical fire incident at Kota, Jaipur and Davangere branches highlights
the requirement to conduct electrical audit of all branches at regular intervals.
The electric audit of branches and offices should be conducted once in TWO
(02)YEARS.
262 Reduction of Rate of Interest on Bills Discount backed by irrevocable Letters of

Credit issued by scheduled commercial banks
Downward revision of ROI by 25 bps on advances against bills with tenor 90-180
days drawn under Irrevocable Letters of Credit.
TENOR OF BILL Existing ROI REVISED

With tenor upto 90 Base Rate, presently Base Rate,
days 10.25% presently 10.25%
Above 90 – 180 days BR+0.50% BR+0.25%
263 Lending Policy -
Definition of Term Loan Any loan stipulated to be repayable in a specified period-either by way of
instalments or by way of bullet payment shall be treated as a Term Loan.
264 Accounting procedure in

respect of incentives Incentives provided by RBI in respect of certain capital items like CVMs etc to be
received directly reduced from the capital cost of the respective equipment in the year of
from Reserve Bank of receipt of the incentive.
India for certain capital
items
like Coin Vending
Machines (CVM) etc.

265 Criminal case to be filed Branches are requested to take note of this judgement and to bring to the notice
U/s 138 of NI Act of the advocates as and when any criminal complaint needs to be filed against
against direction the company and its directors and accordingly draft complaint suitably as per the
of the Company which facts of the case and the then circumstances so as to protect the interest of the
has issued the cheque Bank.
and the same is
dishonoured
266 Paperless claim of Reimbursement of Conveyance Expense and Business Development Expense on
reimbursement of declaration basis and doing away with submission of hard copy of the application.
Conveyance
Expenses and Business Since the complete process of submission and approval of the claims is done in
Development Expenses HRMS which is secure and the details can be accessed any time in future for
to verification, it is now decided to do away with submission of hard copy of the
Employees. application.
267 „V–Fee Hive‟ –Next How to implement this software?

generation Fee
Collection 1. Open Current Account of Institution with the Bank
Solution 2. Suggest the Institution to implement V-FeeHive in stages(Course wise/Class
wise) and enter into agreement for the same including commission sharing.
3. Collect the following information from institutions and send the same to DIT
through email -
a) Fee structure of selected course .
b) Student details and selected course
c) Fee Fine details
4. Login Credentials of users will be provided through Email to the institution.
Branches are requested to exploit the salient features of V-FeeHive application to

the maximum extent by aggressively marketing V-FeeHive utility and thereby
garnering much needed CASA business to our Bank.
268 Fraudster hacked the E- In this regard, we reiterate the guidelines given in HOC 13188 dated 20.06.2013,
mail account of a wherein, among other things, it has been clearly laid down that E-mail request
customer from customers for transfer of funds should not be entertained.
and requested for
transfer of funds through
RTGS.
269 Campaign “Low CASA Name of the Campaign : “Low CASA to Grow CASA to Glow
to Grow CASA to Glow CASA”
CASA” from 15th
December 2014 to Objective of the Campaign:
31st March 2015 for
improvement of CASA The chief objective of the campaign is to improve CASA level of the bank with
special focus on improving CASA percentage of 254 Branches where CASA
percentage is less than 20% of their total deposits. It also aims at improving CASA
percentage further in all other Branches also.
On the Completion of the campaign, performance of all the branches will be

evaluated with special reference to the improvement in their CASA level on a
consistent basis all through the contest period and the top performers will be
recognized and suitably rewarded. The performance of these 254 branches will be
assessed separately and top performance under this category also will be
recognized and rewarded.
270 Revised Policy - The Bank's Policy on Know your customer (KYC) norms with special focus
KYC/AML/PMLA on Anti Money Laundering (AML) has been revised and a detailed policy has

Norms. been adopted by the Bank as per the revised guidelines and standards as
set by the Reserve Bank of India, by superseding the earlier instructions /
guidelines in the matter.
271 CCMR Format revised for The Board of Directors vide Memorandum dt. 30.10.2014, have accorded approval
Loans/FB&NFB for the policy for Credit (MS&C) functionaries at Head office, Regional Office and the
aggregating 2 Crore & branches as detailed in the annexure. The annexure also contains the revised
above. format for submission of CCMR and the branches/ROs shall henceforth, ensure to
submit CCMRs in the revised format on quarterly basis.
All the concerned Branch, RO and HO functionaries/Departments shall conform to

the guidelines on various segments of work as given in the policy on monitoring,
supervision and control of standard assets with a view to avoid slippages of
potential NPAs and also constantly endeavour to ensure improvement and
maintenance of healthy asset quality
272 In terms of RBI Master Circular No RPCD:MSME&NFS.BC no 3/06.02.031/2014-15
dated 01.07.2014, Banks are mandated not to accept collateral security in case of
loans up to Rs.10.00 lakhs extended to MSE Sector units. In the said RBI Master
Circular Banks are also advised to extend collateral-free loans up to Rs.10.00 lakhs
to all units financed under PMEGP.
However, all the collateral free loans that are eligible for coverage as
detailed in HOC 14057 dated 14.03.2014 (CGTMSE Circular), financed under
the scheme should be covered under Credit Guarantee Fund Scheme for
Micro-Enterprises [CGTSME].
273 Staff Housing Loan Bank has approved for Sanction of COMBINED Housing Loan to the serving couple in
scheme for working our Bank to acquire jointly a single property as per their combined entitlements.
couples of our Bank. The permission accorded is subject to registration of property under joint ownership
of both the employees.
274 No TDS required to be The Branches are advised not to deduct TDS from the interest paid on the
deducted from the deposits made as per order of a judicial court.
interest paid on the
deposits made as per
order of a court.
275 With a view to improve the Government Business, especially to boost CASA through
Government accounts, the Bank proposes to introduce separate Government
Business Cell at Regional Offices situated at various State Capitals.
276 REPORT BASED ON 22 IBA has now advised all banks to implement specified 22 critical scenarios (as per
OFFLINE ALERT Annexure – I) at the branch level to enhance AML monitoring.
INDICATORS AT
BRANCH LEVEL Branches have already been informed about the indicative alerts at the branch level
and the procedures to be followed for reporting the same.
 Branches to report irregularities as per indicative alerts
 Enter the details in the Alert Register
 Report the same to Regional Offices in the reporting format given in
Annexure – II.
 Regional offices to report the account details with the alert number from the
indicative alert list to KYC-Cell , HO.
277 DEPOSITOR RBI has observed that, while accounts remained inoperative for ten years or more
EDUCATION & and the customers/ claimants concerned were nontraceable, some banks have
AWARENESS FUND claimed substantial refunds from the Depositor Education and Awareness
(DEAF) SCHEME Fund,much too soon after transferring the amounts due to the Fund.
2014-SECTION 26A
OF BANKING It is not clear as to how the customers /claimants, who did not operate the accounts

REGULATION ACT, for ten years or more, approached the banks for repayment immediately after the
1949- DUE balances in their ino p e r a t i v e accounts were transferred to the Fund.
DILIGENCE OF
CUSTOMERS Therefore, Reserve bank of India has advised the Banks to follow all the instructions
meticulously in respect of ino p e r a t i v e accounts. Further, RBI has advised that
proper due diligence as per the risk category of the customers may also be carried
out before making payments to the customers approaching the banks for repayment
claimed from Depositor Education and Awareness Fund Scheme-2014 under Section
26A of Banking
Regulation Act 1949.
Banks are advised to invariably verify the genuineness of the t ransac t ions and
ensure that the amounts paid to the customers are properly audited by the int e
rnal auditors/statutory auditors.
278 Holiday home at Shimla

for max 3 days @
Rs.100/- per day.
279 Priority is our Priority Results of the Special Campaign- Priority is our Priority launched from 04.08.2014
Campaign to 30.09.2014
280 Procedure for settlement As per Depositor Education and Awareness Fund Scheme (DEAF) 2014 of Reserve
of claims in respect of Bank of India (RBI), the bank is required to transfer all unclaimed deposits /
amount transferred to amounts of customers which have completed 10 years, to the DEAF account
DEAF a/c is illustrated in maintained with RBI. Accordingly, branches are transferring the unclaimed
this circular deposits/amounts outstanding for more than 10 years to Central Accounts
Department (CAD) for onward transfer to DEAF A/c.
As per the provisions of scheme, claims received in respect of the amounts
transferred to DEAF A/c need to be settled by the Bank first and subsequently claim
should be made from the DEAF A/c.
281 Modification of The insurance clause in the Hypothecation Agreement i.e. DOC-56, is
Hypothecation incorporated as under:
Agreement DOC 56
1) The borrower is under an obligation to obtain policy renewal or new policies
to be availed on the securities charged, 30 days before the expiry of existing
policy and submit the documents/ policy papers 15 days before the expiry of
existing policy. Up on failure to submit such renewed policy documents,
bank has right but not obligation to insure/ renew the insurance policy
without obtaining the consent/ information of Borrower.
282 Change in procedure for In order to have a common procedure for all personalized cards and to avoid misuse
Activation of of cards during transit, it has now been decided to revise the activation procedure
Personalized Debit for all personalized debit cards including renewal & add on cards as under:
Cards with effect from  Card will be dispatched to the branch address without activating at ATM switch
January 1st 2015. level.
 Upon delivering the card to the customer, branch should enable the card in
Finacle Screen shots FINACLE through ‗debitcrd‘ menu. Detailed procedure for enabling the card in
given in the Circular. FINACLE is provided in Annexure I
 All personalized cards enabled by the branch before 4 PM will be captured by
Card Division and activated at ATM switch level the same evening after 8:00 PM.
All cards enabled after 4 PM will be activated on the evening of next working day
after 8:00 PM.
The new procedure of activation will be applicable for cards all personalized
generated from January 1, 2015.
283 Restriction on usage of Restriction on usage of Debit Cards at other bank ATMs/Own bank ATMs in India

Debit Cards at other with effect from January 1, 2015.

bank ATMs/Own bank o Restriction on usage of Debit Cards at other bank ATMs to 3 transactions at
ATMs in India with effect metros & 5 transactions at other centres.
from January 1, 2015 o Restriction of usage of Debit Cards at our bank ATMs to 10 per month
The following account holders will continue to enjoy five free transactions,
irrespective of the ATM location:
 No frills/Basic Savings Bank Deposit accounts classified under scheme codes SB
117, 118, 119, 123, 124, 105, 110
 Vijaya Kisan accounts classified under scheme codes VK701, VK865, VK869
 Pay roll accounts classified under scheme code SB 114
 Premium accounts classified under scheme code SB 121
The following account holders will continue to enjoy unlimited free

transactions:
o No frills/Basic Savings Bank Deposit accounts classified under scheme codes SB
117, 118, 119, 123, 124, 105, 110
o Vijaya Kisan accounts classified under scheme codes VK701, VK865, VK869
o Pay roll accounts classified under scheme code SB 114
o Premium accounts classified under scheme code SB 121
o V-GenUth accounts classified under scheme code SB111 and SB112
o Staff accounts classified under scheme code SB102 and OD810
284 Downward revision of The bank has identified new vendor M/s MRL POSNET P Ltd for installation of card
monthly charges swiping machines who has started installing machines for all our newly enrolled
charged for card swiping merchants from November 2014. All our existing POS terminals at different
machines merchant locations will be migrated from M/s ATOS Worldline to M/s MRL POSNET
with effect from April 1, 2015. During the process of migration, existing machines
Revision of Merchant will be replaced by machines owned with M/s MRL POSNet Ltd.
Discount Rate (MDR) As the vendor is charging lesser charges for installation of machine, the bank has
charged for card swiping decided to pass on the benefits to our valued clientele.
machines.
Type of Operative expenses proposed to
Description
model be recovered from merchant
PSTN Normal card swiping machine Rs 650/-
GPRS Hand GPRS machine (portable Rs 1000/-
Held battery operated)
GPRS GPRS with power connection Rs 800/-
Desktop
Mobile POS Rs 450/-
The following operative expenses will be recovered from the merchants for different
types of machines provided by MRL Pos Net:
285 FACILITY OF JOINING The Chairman & Managing Director has accorded approval for permitting such
TIME ON TRANSFER FOR officers to avail joining time on transfer for shifting of house hold articles within one
SHIFTING OF HOUSE year from the date of joining and reimbursement of eligible expenses for shifting
HOLD ARTICLES WITHIN house hold goods and traveling allowance.
ONE YEAR FROM THE Permission to avail joining time at a later date and shifting of house hold articles
DATE OF JOINING TO should be accorded by the concerned sanctioning authorities.
OFFICERS WHO DO NOT
HAVE FAMILY/WHO DO
NOT WANT TO SHIFT
THE FAMILY.
286 Staff Vehicle Loan Repayment conditions of Staff Vehicle Loan 4 Wheeler scheme for Clerks is now
Modified to 120 Installments/Months (96 Principal and remaining 24 Interest
recovery).

Repayment conditions of Sub-Staff Cycle Loan is now Modified to 36

Installments/Months (29 Principal and remaining 7 Interest recovery
287 Credit facilities to Reserve Bank of India has now communicated vide their Circular NO. RBI/2014-
Minoritycommunities - 15/334 FIDD.GSSD.BC NO.44/09.10.001/2014-15 dated 03.12.2014, that the
Inclusion of Jain Ministry of Minority Affairs, Government of India, has notified the Jain Community
Community Under as a minority community, vide notification No. S.O. 267(E) dated January 27,
Section 2(c) of the 2014. This is in addition to five communities already notified as minority
NationalCommission of communities, viz. Sikhs, Muslims, Christians, Zoroastrians and Buddhists.
Minorities (NCM)
Act,1992.
288 ―Agriculture Produce Scheme Agriculture Produce Pledge Loan launched for extending finance to
Pledge Loan” for farmers against the pledge of agriculture produce evidenced by warehouse receipts
financing farmers issued by the empanelled warehouses of NCDEX e Markets Ltd under e-pledging
against the warehouse platform by entering into a Tripartite Agreement with NCDEX e Markets Ltd and
receipts issued by four Warehouse Service Providers (WSPs).
NCDEX e Markets Ltd The Bank has signed MOU with NCDEX e Markets Ltd who will act as a facilitator by
under e-pledging bringing the farmer, Warehouse Service Providers(WSPs) and Bank under one roof,
platform. providing Commodity Management System (CMS), trading, clearing and settlement
solution. The entire process of e-pledging is carried out by the participating
branches by way of on-line access to the CMS system enabling branches to view,
authorize and operate the system for creation, noting, enforcement and release of
pledge of agriculture produce against which the credit facilities have been extended.
Four Warehouse Service Providers (WSPs) with whom the Bank has signed
the tripartite agreements are:-
1) M/S LTC Commercials Co.Pvt Ltd
Regd Office-9,Bysack Street,1st floor, BurraBazar,Kolkatta
Admn Office-156,NavalgarhHouse,Sansar Chandra Rd,Jaipur
2) M/S Kalyx Warehousing Pvt Ltd (Earlier Name- Shree Kunwarji
Warehousing &Collateral Management Services Pvt Ltd)
Registered Office: 301,ShyamakComplex,B/H KamadhenuComplex,
Ambawadi,Ahmedabad
3) M/S Navjyoti State Warehousing Corporation
Registered Office: No 7, MunshiPremchandSarani Hastings,Kolkatta-
22
Admin Office:UptownBanjara,Road No 3,Banjara Hills,Hyderabad
4) M/S Suvidha Commodities E Com Pvt Ltd
No 904, Tulsianai Chambers, Mumbai
Registered Office: 904, TulsianaiChambers,Mumbai
[Scheme will be implemented in select branches listed as Appendix –II of

Circular.]
New scheme for financing farmers against the warehouse receipts issued
by NCDEX e Markets Ltd,
I. Background:
With a view to benefit farmers to get fair price for their produce, NCDEX e Markets
Ltd has devised a scheme for helping farmers to get Bank finance against the
electronic pledging of their stocks/commodities in accredited/empanelled
warehouses of NCDEX e Markets Ltd and allow the farmers to sell their produce at

their option whenever prices are good in the market.

The e-pledge is a process by which a registered member (farmer) of NCDEX e
Markets Ltd after depositing his commodity in the accredited warehouse of NCDEX e
Markets Ltd, can apply on-line to Bank to avail finance against electronic holding.
The empanelled Warehouse Service Provider (WSP) act as collateral agency
responsible for commodity safety, security, stock management, insurance, deposit,
delivery and client sourcing.
NCDEX e Markets Ltd act as a facilitator by bringing the farmer, WSP and Bank
under one roof, providing Commodity Management System (CMS), trading, clearing
and settlement solution. The entire process of e-pledging is carried out by way of
on-line access to the CMS system which is provided to the Bank by NCDEX e
Markets Ltd for the purpose of viewing, authorizing and operating the system for
creation, noting, enforcement and release of pledge of commodities against which
the credit facilities have been extended.
We have entered into Tripartite Agreements with NCDEX e Markets Ltd and their
four empanelled WSPs namely- M/S LTC Commercials Co.Pvt Ltd, M/S Kalyx
Warehousing Pvt Ltd, M/S Navjyoti State Warehousing Corporation & M/S Suvidha
Commodities E Com Pvt Ltd for financing farmers against the pledge of farm
produce under e pledge platform. The Tri partite agreement provides for Rights and
obligations of all the three parties viz., NCDEX e Markets Ltd, Vijaya Bank and the
Warehouse Service Provider. Besides, the bi-partite agreement between the WSP
and NCDEX e Markets Ltd covers indemnification of loses, damages and penalties on
account of difference in quality and quantity alleged in the storage of commodity /
non compliance of duties on the part of the WSP.
II. Operational guidelines for the Scheme:
a) All Loanee and non Loanee farmers who are having SB account with the branch
are eligible.
b) Borrower should be KYC compliant.
c) There are two options of e pledging request:
i) Blocked option- Non Tradeable Lots: -In case of Blocked option,
explicit clearance from Vijaya Bank is required. The borrower shall
remit the outstanding balance of the pledge loan inclusive of interest
into the NCDEX e Markets Ltd settlement account. NCDEX e Markets
Ltd after deduction of all the applicable charges, transfer the amount
to the designated account with the bank. The commodity shall not
be released by NCDEX e Market Ltd/WSP to the depositor or
holder, unless the Bank authenticates release of the pledge in
the CMS.
ii) Unblocked option: under Unblocked option, such pledged lots shall be
available for trading on NCDEX e Markets Ltd platform. Pledged lots as
confirmed by the Bank under this option shall be locked in before trading.
At the time of trading of pledged lots on the Exchange platform, Vijaya
Bank shall stipulate a price level below which trade of the pledged
lots shall not be permitted. The borrower needs to take trade price
approval from Vijaya Bank. Under Un- blocked option, the borrower
can sell the lots through NCDEX e Markets Ltd at a value above the
loan amount any time and the proceeds go directly to the bank
d) The commodity pledged to the Bank shall be disposed of either through a

sale contract on exchange platform or over the counter. In either case the goods
will be released as per the process under Commodity Management System after
recovery of Bank dues, storage and insurance charges.

III) Lending Guidelines:-

Nature of Limit: Demand Loan: Maximum loan limit to farmers shall be Rs.50
lakh.
Period of loan: Maximum period of loan is 12 months or the due date mentioned in
the e- warehouse receipt, whichever is earlier. No rollover is permitted.
Assessment of the loan amount: 60% of the value of the farm produces as given
in the e- warehouse receipt or 60% of the market price prevailing on the date of
extending credit facility, whichever is lower, subject to maximum of Rs.50 lakh per
farmer.
Primary Security: Pledge of farm produce of the farmer borrower through e-

pledging platform of NCDEX e Markets Ltd duly endorsed and lien registered in
favour of the Bank.
Collateral security:
 Upto Rs 5.00 lakh- Exempted

 Above Rs. 5 lakh - 10 lakh: Collateral security of landed property of the
farmer covering at least 25% of the loan amount. If the value of collateral is not
fully covering the loan limit or the farmer is not able to offer landed property as
security, a suitable third party guarantee acceptable to the Bank to be obtained.
 Above Rs.10 lakh: Collateral security of landed property of the farmer fully
covering the limit.
IV) Rate of Interest:
Loan Slab Interest Rate(floating)
Upto Rs.50,000/- Base rate (BR)
50,000 to Rs.2 lakh BR+0.50%
Above Rs.2 lakh uptoRs BR+1.00%
50.00 lakh
v) Processing and other Charges: 50% of the charges applicable for agricultural
loans.
vi)Documentation:
Demand Promissory Note

Letter to take delivery and hold goods- DOC-14
Delivery orders in DOC-15 as and when goods are released in part or full
Letter of repayment- DOC-35
E Pledge Agreement (enclosed to this Circular as Appendix III)
Mortgage documents – Equitable or Registered as the case may be
Original Holding Certificate issued by the accredited Warehouse-to be kept with the
loan documents.
Scheme code: WR 742

Scheme Name: AG. Prod. Pledge Loan-NSPOT
GL code: 43524
289 Withdrawal of Vijaya It has now been decided to withdraw Vijaya 444 term deposit with effect from
444 Term Deposit 1st January 2015. Hence, no fresh deposits under Vijaya 444 term deposit
Scheme scheme shall be accepted by branches from 1st January 2015 .
Branches should ensure that the maturing Vijaya 444 term deposits are renewed

only under the prevailing schemes as on the date of maturity.
290 Discontinuation of Withdrawal of Manual Bancard encashment at branches

manual Bancard for staff members from January 1, 2015 and
encashment at branches
for customers from April 1, 2015
However, VISA Card holders can withdraw cash at any of our ATMs / other bank
affiliated ATMs upto the cash limit fixed for individual cards. As of now, our ATMs
are not configured to accept MasterCards for cash withdrawal. Hence, MasterCard
holders can withdraw cash at other bank affiliated ATMs for the time being.
Please note that any encashment done at the branch level after this date will not be
reimbursed to the branch and branch will be solely responsible for the lapse.
Vijaya Bank
Staff College
Gist of Circulars– 2015

No.
1 Launch of NPA/ NPA RECOVERY CAMPAIGN – 2015
AUC recovery The period of campaign is from 01/01/2015 to 31/03/2015. All the staff
campaign from members are eligible to participate in the campaign. The performance in
01.01.2015 the campaign will be recognized at three level i.e., individual staff
to 31.03.2015 members, branches and regions as detailed here below:
a) Campaign for Individuals :

i) Cash Recovery in Substandard, Doubtful, Loss Assets and AUC accounts

with balance below ` 10.00 Lakhs which were NPA as on 31/03/2014 are
eligible for the purpose of considering merit.
ii) The performance will be judged by the cash recovered by the individual
staff members under the above categories.
iii) The minimum amount to be recovered by the staff members to be

eligible is as follows
Sub-staff – ` 2.00 lakhs, Clerks – ` 5.00 lakhs, Officers – ` 10.00 lakhs,
and
Branch Head – ` 20.00 lakhs.
iv) Top 4 individual performers (One each under Substaff, Clerk,Officer, and
Branch Manager) of each Region will be eligible for Merit Certificate.
v) An employee who is retired during the contest period is also eligible, if

otherwise eligible.
2 Control and Revised system of control mechanism, inspection and reporting formats for
Supervision of the Currency Chests introduced.
functioning of
Currency Chests
3
OTS Scheme for salient features of the special OTS scheme for tractor loans are as
TRACTOR Loans. follows:
All tractor loans sanctioned prior to 31.03.2010 and slipped to NPA on or

before 31.03.2013 are eligible.
1)The settlement amount should be the higher of the following three

parameters:
i. Present valuation of the tractor (insurable value)
ii. Net of book balance (latest NPA balance) minus provision
as on 30.09.2014*
iii. 30% discount on the original loan amount or on NPA
balance, whichever is lower.
*- Though there may be movement of asset after 30.09.2014, the provision

as on 30.09.2014 is only to be reckoned for arriving at Net Balance.
b)NPV concept is not applicable to the scheme.
c)On approval of the compromise settlement, the borrower should make a

down payment of at least 10% of the offer amount. Balance amount of
settlement should be paid within 30 days from the date of settlement. If
entire settlement amount is not paid within 30 days, the borrower may be
allowed to make the payment within 60 days from the date of settlement

with interest at Base Rate on simple basis from 31 st day of settlement.

Thereafter settlement will get lapsed.
d)If the borrower is having crop loan / VKC or any other agricultural loans,
in adddition to Tractor Loan, then proposal for settlement should be covered
under the existing General Scheme (HOC 14118).
e)The Regional Heads are vested with powers to settle the accounts
under the scheme.
f)The borrower who settles the NPA Loan liabilities under the scheme will
not be eligible for any other fresh finance except Jewel loans and loan on
time deposits.
g)Cases of willful default, fraud and malfeasance are not eligible under
the scheme.
h)Tractor loans backed by term deposits / mortgaged properties other than

agricultural land where SARFAESI is enforceable are not eligible under the
scheme.
i) The accounts eligible under the scheme may also be settled at the
concessional rate under modular approach / Vijaya Rhuna Mukti Yojana OTS
schemes, if such settlements are more beneficial to the borrowers.
4 Lending Policy In CRE proposals, in respect of builders having good track record and
Guidelines – dealings with the Bank with no default in the past, moratorium can be
Modification extended up to 3 years by the sanctioning authorities at HO.
Lending Policy One of the measures taken to prevent diversion of funds is periodical
5 Guidelines – inspection of securities. In addition to this, henceforth to prevent diversion
Importance of of funds, in-charge of loans department (and in his absence the ABM) shall
inspection of on a day to day basis check the debit entries/withdrawals in CCH accounts
securities & to ensure that the payment are made to the suppliers for purchase of raw
checking of materials, payment of salaries and for such other normal business needs.
operations in CCH Such scrutiny of debits made from the sub day, exceptional reports shall be
accounts placed before the Branch Head on a day-to-day basis for his/her perusal.
As per the directions of the committee following threshold limits on debit

entries are prescribed.
Working Capital Limit Debit entries to be verified

Upto Rs.5.00 Crore Rs.5,00,000 & above
5.00-10.00 Crore Rs.15,00,000 & above
Beyond 10.00 Crore Rs.20,00,000 & above

6 Times norms for

disposal of various As per the directions of RBI, the following time norms as one point
types of credit reference are prescribed for disposing various types of credit proposals.
proposals are
reiterated
Priority Non- exports
priority
other than
Exports
Fresh/Renewal Credit upto 15 days 15 days
proposals Rs.25000
Fresh/Renewal Credit above 4 weeks 4
proposals Rs.25000 weeks
under Micro & Small upto Rs. 5
Enterprises lakhs
Proposal for sanction 60 days 60 days 45 days
of fresh/
enhanced credit
limits
Proposals for renewal 45 days 45 days 30 days

of existing credit
limits
Proposals for 30 days 30 days 15 days
sanction of adhoc
credit facilities
7 Portal for accessing Reserve Bank of India (RBI), during the quarterly meeting (Quarter ended
Monthly reports of September, 2014) held on October 30, 2014 have instructed that the Focal
Government Point Branches, handling various Government Business activities like Direct
business / CPPC Tax, Indirect Tax, PPF-1968 scheme and Pension should ensure that the
pension payment monthly Put through Statement are made available to the audit party
scrolls. during the course of RBI inspection.
In compliance to the above directives, our Bank has developed a web

portal, wherein the CBDT/CBEC/Pension Focal Point Branches and all the
PPF designated branches can download the following Government Business
Statements:
1. CBDT (Revenue Account) Statement.
2. CBEC (Revenue Account) Statement.
3. Departmentalised Ministries Accounts (DMA) Statement – PPF
4. Pension Statement.
5. CPPC scrolls.
Role of Designated branches / Focal Point Branches:

Designated branches / Focal Point branches should scrupulously follow the
steps mentioned below at the beginning of the month:
 Access the portal through URL http://172.16.3.95:8185 or

alternatively through V – Web solutions.

 Download the Government Business Put through Statements for the
previous month.
 Verify the claims/transaction as stated therein, date wise,
meticulously and make sure that funds collected under various
Government Business parameters are remitted to CAS, Nagpur.
 In case of any discrepancies in the previous month‘s balances, the
same should be informed to Nagpur Link cell immediately.
 File the Government Business Put through Statements at branch
level.
 Ensure that the Statements are made available to RBI auditors
during the time of inspection.
 Monthly pension scrolls may should be downloaded by concerned
branches to reply to the queries of pensioners regarding break up of
pension paid.
8 Conducting of due While analysing a study note on frauds in respect of various accounts,
diligence,verificatio Operational Risk Management Committee (ORMC) has directed the
n of genuiness of Department to reiterate/adopt the following remedial measures for
CA and other prevention of frauds.Accordingly the following guidelines are issued.
operative guidelines
of 1. Branch should mandatorily check the genuiness of the CA/Auditors
consortium and their registration numbers who have signed the Balance
advances are Sheet, through ICAI website.
reiterated
2. In case of Consortium Advances, each member Bank, on rotation
basis should verify the assets created out of such advances as well
as the books of accounts of the company periodically.
3. In respect of Consortium Advances made to Company, Branch

should obtain due diligence certificate from a Company Secretary on
a quarterly basis with regard to compliance of various statutory
prescriptions in vogue.
9 Collection of  E-payment of Commercial Tax /VAT and Central Sales tax (CST)
Gujarat State of Gujarat is available through our V-Net Banking and will benefit
Government our V-Net retail and corporate users in paying the commercial
Commercial taxes through V-Net banking channel anywhere, and anytime.
tax/VAT, and
Central Sales tax  The link for e-payment ―E-payment of Gujarat State Tax‖ is
through V-Net available in our V-Net Banking home page
Banking e-mode. (https://www.vijayabankonline.in/index.html). The link will
redirect to Commercial Taxes, Gujarat e-payment site
https://cybertreasury.gujarat.gov.in/
CyberTreasury/portal.htm?viewName=PreLoginPage
 The user will login to the Gujarat e-payment site using the User ID
& password given by the Gujarat Commercial tax department.
Then the user needs to fill in all the required details in the portal
and selects Vijaya Bank as payment option. The user will be

redirected to our V-Net banking site which needs to be

authenticated by entering the User-ID / Password credentials
for logging. On successful validation of login credentials, the user
will be redirected to transaction page for entering the amount and
transaction password.
10 KYC/AML/PMLA In the light of RBI instructions in respect of KYC requirements, the

/CFT/ Guidelines following guidelines are reiterated to all the field functionaries to
– Clarifications on take note of them for immediate compliance:
periodic updation 1) Please be guided by Bank‘s guidelines on KYC/AML vide HOC
of low risk 14270, Dated 15.12.2014
customers, non-
requirement of However, the following guideline now issued supersedes/modifies
repeated KYC for the extant guidelines as per the above referred KYC Policy.
the same 2) In respect of customers who are categorised as ―Low Risk‖, if
customer and there is no change in the status of their identities and
partial freezing of addresses, Branches need not seek fresh proofs of identity
KYC non- and address at the time of periodic updation. In such cases,
compliant Branches may obtain a self declaration from such customers
accounts and hold the same on record. A format of self declaration is
enclosed herewith (Annexure 2)
3) In case of change in address of such ―Low Risk‖ customers,

they may merely forward a certified copy of the document
(proof of address) by mail/post and their physical presence
need not be insisted by the Branches for this purpose
A notice for the information of the public to the effect of (2)

and (3) above is enclosed herewith for displaying the same at
the Branches (Annexure 3)
4) Branches should identify the accounts which are still KYC

non-complaint and send the notice as per (Annexure 4) to all
such customers giving initial 3 months time to comply with
KYC requirement. All the Branches having such KYC non -
complaint accounts should send such notice and confirm to
their respective Regional Offices who shall in turn confirm to
KYC Cell at Central Inspection Department, HO before
31.05.2015
5) After 3 months, the position of these accounts should be

reviewed and ‗Partial Freezing‘ should be imposed on those
accounts which are still KYC non-compliant, under which all
debits to the accounts will be disallowed but only credits are
allowed
6) After 6 months the position of these accounts should be

reviewed again and in respect of those accounts which are
still KUC non-complaint, both the credits and debits to such
accounts should be disallowed rendering them inoperative.
Further, guidelines on closure of such accounts will be issued

by us.
However, it should be clearly understood that the account holders of such

account holders of such accounts can revive accounts by submitting the
KYC documents as per instructions in force.
11 Cheque Related Fraud Cases - Preventive Measures explained.
12 DOC-56 Corrigendum to Circular No. 14281 dated: 23.12.2014 –

Modification of Hypothecation Agreement - DOC 56
Inadvertently, the numbering sequence in the DOC – 56 has been

mismatched. A typographical error has crept in the Document. As such, the
corrected DOC – 56 is enclosed herewith for your ready reference.
Excepting the numbering sequence all the contents remain same as the
way they were in HOC.14281 dated: 23.12.2014.
(DOC-56 format enclosed to the Circular)
13 Service charges Revision in Service Charges on non-credit matters (deposit and

miscellaneous matter) with effect from 17.01.2015)
14 Applicable to Karnataka Self Employment Scheme- To provide all necessary
Karnataka State assistance and facilitation for setting up of Micro Enterprises by first
only. generation entrepreneurs by providing subsidy by Govt. of Karnataka.
15 Campaign- Launch of „Revive the Relationship‟, Campaign from 19.01.2015 to

Inoperative 14.03.2015 to reactivate Inoperative/Inactive accounts.
Accounts.
16 Results of Results of ‗‗Rekindle the Relationship‘ Campaign held from 01.2.2014 to
campaign. 17.3.2014 to reactivate Inoperative/Inactive accounts of more than three
years old.
17 Launch of ‗Lakshya Vidyalaya‘ Campaign from 22.01.2015 to 21.03.2015 to

canvass new accounts of Schools, Colleges & Educational Institutions.
1. Name of the campaign : “Lakshya Vidyalaya campaign”
2. Period of campaign : 22nd January 2015 to 21st March

2015
3. Action Points:
a) Opening of new CASA a/cs:
 Each Rural/Semi Urban Branch should open at least 2 accounts

during the campaign period

 Each Urban/ Metropolitan Branch should open at least 4

accounts during the campaign period
18 Agriculture Investment Credit Campaign for the period 27.01.2015
to 20.03.2015
19 PMJDY – Life Rs 30000/- Life insurance cover under Pradhan Mantri Jan Dhan
Insurance. Yojana (PMJDY) - Features and Guidelines. (Procedure for claim
settlement also explained in Circular).
The scheme aims to provide security to those families who cannot afford
direct insurance, namely the urban poor and rural poor who are not covered
under any social security scheme.
The Main features of the scheme are detailed below.
 PMJDY beneficiaries, who have opened their account during the

period from 15-08-14 to 26-01-15 and who are first time bank
account holders (with RuPay Card), are only eligible for the life
insurance cover of Rs 30000/-.
 Only Head of the family is covered under this Risk Cover Scheme.
 Age group: 18 years completed to 59 years (Nearer Birth Day).
Cover: Rs. 30000/- on death due to any cause subject to fulfilment of the
eligibility conditions.
20 OPERATIONAL Annual limit of Expenditure under Advertisement Head/Publicity:

GUIDELINES FOR
ADVERTISEMENTS/ GM Headed Region -20 lakhs, DGM-10 Lakhs, AGM headed Region-
PUBLICITY FOR 5 lakhs
REGIONAL OFFICES
21 Vijaya Bank Women Constitution of Vijaya Bank Women Employees‘ Welfare Committee for
Employees‘ empowerment of women employees of the Bank.
22 Annual charges for Reference is made to the above Circulars wherein it was circulated that an
Debit Cards annual fee of Rs 95/- will be applicable to all variants of Debit Cards issued
by the bank i.e. VISA Debit Cards - both photo & non photo variants, Insta
Cards as well as RuPay Debit Cards except the following type of accounts :

2. Financial inclusion schemes & Kisan Debit Cards (SB 105, SB 117, SB
118,
SB 119, SB 123 & SB 124, VK701, VK865, VK692)
It has been decided that, henceforth, VGenUth Saving Bank account

holders will not be levied with annual charges.
23 Wilful Defaulter

A. PURPOSE OF WILFUL DEFAULTER CLASSIFICATION -

To put in place a system to disseminate credit information pertaining to
Wilful Defaulters for cautioning banks and financial institutions so as to
ensure that further bank finance is not made available to them.
B. INTRODUCTION OF WILFUL DEFAULTER CLASSIFICATION-
The scheme will come into force with effect from 1st April 1999 and as per
scheme, banks and FIs will report all cases of Wilful defaults which are
occurred or detected after 31st March 1999. Accordingly, banks and FIs
started reporting all cases of wilful defaults, which occurred or were
detected after 31st March 1999 on a quarterly basis.
C. CUT-OFF LIMITS TO CLASSIFY THE ACCOUNT AS WILFUL
DEFAULTER -
The Scheme covered all non-performing borrowal accounts with
outstandings (funded facilities and such non-funded facilities which are
converted into funded facilities) aggregating Rs.25 lakhs and above. In this
connection, it is clarified that banks need not report cases where
(i) outstanding amount falls below Rs.25 lakh and

(ii) in respect of cases where banks have agreed for a compromise
settlement and the borrower has fully paid the compromised
amount.
D. DEFINITION OF “LENDER” & “UNIT” -
Word “lender” will cover all the Banks, who have provided “Fund Based
Facilities i.e. loan and Non Fund based Facilities such as Derivatives,
Guarantee and Letter of Credit to the Borrowers.
Word “Unit” means/includes basically borrower who are individual, juristic

persons such as Companies, Limited Partnership Firm, Society, Trust,
Proprietorship Firm, Joint Ventures etc. Hence Bank may also report names
of those persons who are in charge and responsible for the management of
the affairs of the business enterprise.
In case of a company, the name of Directors are to be informed who were

on the board of company from the date of NPA, including name of Director
who has resigned after account becomes NPA including the names added
subsequently.
In general the following person will be responsible for the affairs of the
business -Partnership Firm - All the partners, Limited Liability Partnership
-Designated Partner, Trust– Managing Trustee, Society - The
Committee members.
E. DEFINITION OF “WILFUL DEFAULT” - "WILFUL DEFAULT"

WOULD BE DEEMED TO HAVE OCCURRED IF ANY OF THE
FOLLOWING EVENTS IS NOTED -
(a) The unit has defaulted in meeting its payment / repayment obligations
to the lender even when it has the capacity to honour the said
obligations.

(b) The unit has defaulted in meeting its payment / repayment obligations
to the lender and has not utilised the finance from the lender for the
specific purposes for which finance was availed of but has diverted the
funds for other purposes.
(c) The unit has defaulted in meeting its payment / repayment obligations
to the lender and has siphoned off the funds so that the funds have not
been utilised for the specific purpose for which finance was availed of, nor
are the funds available with the unit in the form of other assets.
d) The unit has defaulted in meeting its payment / repayment obligations to
the lender and has also disposed off or removed the movable fixed
assets or immovable property given by him or it for the purpose of
securing a term loan without the knowledge of the bank/lender.
The identification of the wilful default should be made keeping in view the
track record of the borrowers and should not be decided on the
basis of isolated transactions/incidents. The default to be categorised
as wilful must be intentional, deliberate and calculated.
F. MECHANISM FOR IDENTIFICATION OF WILFUL DEFAULTERS

For Identification and Classification of Wilful Default, RBI advised to set up
following Two Committees stated below - (1)Identification Committee -
headed by an Executive Director and consisting of two other senior officers
of the rank of GM/DGM. (2)Review cum Classification of Wilful
Defaulter Committee - headed by the Chairman / MD & CEO consisting,
in addition, of two independent directors of the Bank.
G. PENAL MEASURES - In order to prevent access to the capital markets

by the wilful defaulters, a copy of the list of Wilful defaulters (non-suit
filed accounts) and list of wilful defaulters (suit filed accounts) are
forwarded to SEBI by RBI and Credit Information Bureau (India) Ltd.
(CIBIL) respectively. No additional facilities should be granted by any
bank / FI to the listed wilful defaulters.
H. CLARIFICATION ON GUARANTEES FURNISHED BY INDIVIDUALS,

GROUP COMPANIES & NON-GROUP COMPANIES -
While dealing with wilful default of a single borrowing company in a Group,
the bank should consider the track record of the individual company, with
reference to its repayment performance to its lenders. However, in cases
where guarantees furnished by the companies within the Group on behalf of
the wilfully defaulting units are not honoured when invoked by the banks,
such Group companies should also be reckoned as wilful defaulters
– In case Individual Guarantor (who is not Director/Partner in the Unit)
refuses to comply with the demand made by the Bank, despite having
sufficient means to make payment of the dues, such individual Guarantor
can also be treated as a Wilful defaulter.
However RBI has clarified that, same will be applicable only prospectively
and not applicable for the account where guarantees were taken
prior to date of RBI Circular i.e. 09/09/2014. Further RBI has advised
to ensure that this position is made known to all prospective guarantors at

the time of accepting guarantees.
In view of the above change in guidelines on the subject, the Guarantee

Deed i.e. DOC – 46 is amended and following clause has been added
therein and same has been circulated to Branches/offices vide HO Circular
No. 14224 dated 09.10.2014
I/We, hereby agree/s that, on default committed on invocation of

the Guarantee, bank can declare me/we/us as “Wilful defaulter” as
per prevailing RBI guidelines.
I. REPORTING -
In terms of Credit Information Companies (Regulation) Act, 2005, banks
are advised to furnish the data in respect of wilful defaulters (non-suit filed
& Suit Filed accounts) of Rs. 25 lakhs and above for the quarter ending
December 31, 2014 to credit information companies (i) Experian Credit
Information Company of India Private Limited, (ii) Equifax Credit
Information Services Private Limited, (iii) CRIF High Mark Credit
Information Services Private Limited and (iv) Credit Information Bureau
(India) Limited (CIBIL) on monthly basis.
Proposal format to be submitted by Branch/RO to declare the borrower as

Wilful Defaulter has been modified, is enclosed as ANNEXURE.
24. Modus operandi of frauds occurred for the period from October 2014 to
December 2014.
25. Implementation We are informed by NABARD vide their letter no No.

of Centrally NB./DoR.GSS/3086/NLM-1/2014-15 dated 27.10.2014 that the Department
Sponsored of Animal Husbandry, Dairying & Fisheries (DAHD& F), Ministry of
Scheme – Agriculture, Govt. of India has accorded approval for implementation of the
National Centrally Sponsored Scheme –National Livestock Mission (NLM) for
Livestock Mission the year 2014-15.
(NLM) through
NABARD for the National Livestock Mission is designed to cover all the activities required to
year 2014-15. ensure quantitative and qualitative improvement in livestock production
system and capacity building of all stakeholders.
The Scheme comprises the following four Sub Missions:
a) Sub Mission on Livestock Development
b) Sub Mission on Pig Development in North Eastern Region
c) Sub Mission on Feed & Fodder Development
d) Sub Mission on Skill Development, technology Transfer and Extension.
NABARD is the subsidy channelizing agency for only one component under
the Sub Mission on Livestock Development viz., “Entrepreneurship
Development & Employment Generation (EDEG)” which includes the
following schemes:
1. Poultry Venture Capital Fund (PVCF),

2. Integrated Development of Small Ruminant and Rabbits (IDSSR)
3. Pig Development

4. Salvaging of Male Buffalo calves
26. PMJDY SCHEME- Pradhan Mantri Jan-Dhan Yojna [PMJDY]- OVERDRAFT FACILITY UP
GUIDELINES ON TO RS.5000/- IN PMJDY ACCOUNTS:
OVERDRAFT
FACILITY UP TO a) BSBD accounts (opened under scheme code SB-117,118,119,123
Rs.5000/- &124), which are operated satisfactorily for atleast Six Months.
b) OD to be granted to the earning member of the family, preferably
woman of the house.
c) There should be regular credits under DBT/DBTL scheme/other
verifiable sources.
d) Account should be seeded with Aadhaar for avoiding
duplicate benefit.
e) The BSBD account holder should not be maintaining any other SB
account with any Bank/Branch as per RBI directives.
f) Age of the applicant should be between 18 years to 60 years.
THE FOLLOWING CATEGORIES OF APPLICANTS ARE NOT
ELIGIBLE.
g) Minors, VKC/GCC borrowers, and more than one member of

the same family.
Running Overdraft facility in SB account - 36 months subject to ANNUAL

REVIEW of the account.
Loan Amount will be – a) 4 times of Average Monthly Balance OR, b)50%
of Credit Summations in the account during the preceding 6 months OR,
Rs.5000/- Whichever is lower.
ROI - Base Rate +2% [floating]=Presently 12.25% (NO SECURITY

to be taken).
 Guarantee cover up to 60% of the default amount in PMJDY.

 Bank will pay guarantee fee @ 1% on loan outstanding at the end of
each year.
 To allow overdraft in SB scheme codes 117,118,119,123 & 124
branches have to invoke ACTODM menu for allowing overdraft.
27. Savings Bank The details of the SB Account mobilization drive are mentioned hereunder:
Accounts 1. Name of the SB Account mobilization drive:: „Each One Reach One
mobilization to make Vijaya Bank Number One‟
drive – „Each One 2. Period : With immediate effect to 29th February 2016
Reach One to 3. Action Points :
make Vijaya Bank
Number One‟  Each one of the Vijayees to canvass a minimum of 1 SB account
starting with per week and a minimum of 4 SB accounts per month.
immediate effect  The accounts should be opened with the stipulated minimum deposit
to 29th as applicable.
February 2016  The account should be in operative status for a minimum period
of 1 year from the date of its opening.
 KYC norms should be strictly adhered to, while opening the
accounts.

 Accounts opened under V-Payroll, V Gen-Uth and Pradhan Mantri

Jan-
 Dhan Yojana are excluded from the SB mobilization drive.
 To identify the contribution from each staff, the branches are

advised to enter employee code (the person who referred the
customer) in Finacle at the space „Application Reference ID‟.
In case of outstation employees, whose prospective customers are in home

town/ anywhere in India, the employee can request the customer to visit
the nearest branch or the employee can give the customer‘s details to the
branch to meet and open the account. In such a case, the branch has to
give ‗Application Reference ID‘ of the employee referred the customer and
not that of the employee who met the customer for opening the account.
28. V-RENT Scheme Existing disparity in the sanctioning powers under the V-Rent loan scheme
Delegation of between RLCC headed by General Manager and HOGMLCC has been
Powers for GM removed.
heading RLCC &
HOGMLCC. Delegated powers of RLCC headed by General Managers : Rs.10.00 Crores
Delegated powers of HOGMLCC : Rs.10.00 Crores
29. JLG Financing through Joint Liability groups (JLGs)
A Joint Liability Group (JLG) is an informal group comprising of 4-10

individuals coming together for the purpose of availing bank loan on
individual basis or through group mechanism against mutual guarantee.
Who can form JLGs:

Business Facilitators, NGOs, Farmers Clubs, Farmers Associations,
Panchayat Raj Institutions (PRIs), Krishi Vikas Kendras (KVKs), State
Agriculture Universities (SAUs), Agriculture Technology Management
Agency (ATMA), Bank branches, PACS, other cooperatives, Govt. Depts.,
Individuals, Input dealers, and Document writers (in cooperative
banks),MFIs /MFOs, etc.
The quantum of loan to be given to the groups should be related to

the credit needs of the enterprise and not to the quantum of saving.
Banks can finance JLGs by adopting any of the following two models.
Model A – Financing Individuals in the JLG.
Each member of the JLG should be provided an individual KCC. The
financing Branch should assess the credit requirement, based on the crop to
be cultivated, available cultivable land /activity to be undertaken and the
credit absorption capacity of the individual. All members would jointly
execute a loan document, making each one jointly and severally liable for
repayment of all loans taken by all individuals belonging to the group.

Model B – Financing the JLG as a Group.

The JLG functions, operationally as one borrowing unit. The group would be
eligible for accessing one loan, which could be combined credit requirement
of all its members. The credit assessment of the group could be based on
the available cultivable area of each member of the JLG/ activity to be
undertaken. All members would jointly execute the document and own the
debt liability jointly and severally.
Documentation:
Model A
The documents to be obtained are (a) Introduction form (Annexure I) (b)
Application cum Appraisal form (Annexure II) (c) Joint Liability agreement
(Annexure III) (d) Loan agreement cum hypothecation Deed (DOC-53)
Model B
The documents to be obtained are (a)Application cum Appraisal form
(Annexure IV) (b) DOC-63 Articles of agreement for groups (c)DOC-
62 Inter-se Agreement by members of the group (d)DOC-66 Agreement of
Hypothecation/Pawn/Pledge ( to be executed by all the group members).
A common process note for financing Joint Liability Groups (Model A

and Model B) is enclosed at Annexure V.
Assessing Joint Liability Groups (JLGs) for Bank finance

NABARD has now devised an assessment tool for appraisal of Joint Liability
Groups (JLGs) and the same is enclosed at Annexure – VI of HOC 15029.
NABARD extends grant assistance of Rs. 2000/- per JLG for promotion,
nurturing and financing. The incentive will be available to the Bank
branches even if they use branch staff or BC/BF. The incentive shall be
linked with the financing of the JLGs. The incentive amount shall be
released in three installments – 1000(After disbursement)+500(After ONE
Year)+500 (After 2 years from the date of disbursement).
Incentive for promotion of JLGs shall be available only in cases
where prior approval has been taken from NABARD for promotion of
JLGs.
NABARD Refinance - NABARD will provide 100% refinance assistance to

all banks in respect of their lending to JLGs.
30
Issuance of personalized Cheque books to all customers of the Bank
through Branch Service Centre, Bangalore.
1. The request for personalised cheque books should be entered in the

system and authorised before 4.00 PM on week days and before
1.30 pm on Saturday.
2. In turn, Branch Service centre, HO will upload the file containing the
consolidated requests of all branches to the printer for execution of
print order on a daily basis.

3. Requests entered after the stipulated time will be uploaded only on

next day. Hence, all the branches are advised to strictly follow the
time limit to enter/authorize the requests for personalised cheque
books.
4. Once the cheque book is printed and given for dispatch an SMS will
be sent to the customer informing that the cheque book is in transit.
5. Details of ―cheque books issued” will be uploaded in finacle at

Branch Service Centre, HO, on daily basis and branches need
not enter the same in the finacle.
31 Borrowing Companies with frequent changes in management structure

should be dealt with more cautiously.
32
Earlier Compassionate Grounds discontinued with introduction of

Ex-Gratia. However, as per HOC 14260, Compassionate
Appointment introduced.
Now Options for the Dependents for Compassionate Appointment or
Exgratia as above.
Continuation of the Interest Subvention Scheme during the year

33 2014-15 under NRLM in Category I (NRLM intensive) and Category
II (NRLM non-intensive) Districts.
34 Periodical review of the Term Loans including Restructured Term
Loan, should be carried in terms of the extant guidelines for

monitoring of smooth implementation of project, attainment of

DCCO, analysis financials of the borrower, cash flows from the
project, progress in attainment of viability in respect of
restructured term loans etc. Instructions given in 95/2009 is
reiterated:
In order to ensure effective monitoring of Term Loans and One

Time/Standby NFB limits, annual review of these limits was introduced vide
HOC 95/2009 dt. 22.05.2009. In terms of the guidelines contained in this
circular, following annual review reports are prescribed:
(a) Annual Review Report in respect of all term loans and Infrastructure
project loans with sanctioned limits of over Rs.25.00 lakhs; (Annexure-I to
HOC 95/2009);
(b) Annual Review Report in respect of all non fund based facilities
sanctioned on one time basis with a tenor beyond one year, with sanctioned
limits of over Rs.25.00 lakhs (Annexure II to HOC 95/2009);
(c) Annual Review Report in respect of all Term loans, One time Bank
Guarantee facilities/Letter of Comfort and Standby Letter of Credit
aggregating upto Rs.25.00 lakhs (Annexure III to HOC 95/2009).
35 Instructions to the Despite of repeated instructions to the field functionaries for taking
field functionaries necessary steps to ensure such errors do not exist, the errors are still
for taking continuing.
necessary 1. Asset classification and date of NPA:
corrective steps in Due to error in the values fed under various parameters of the loan
respect of the account, like repayment terms, moratorium period, interest rate, etc.,
observation made the asset classification and date of NPA carried out by the CBS system is
by Central not correct. On identification of such errors, asset classification and date
Statutory Auditors of NPA are changed through manual intervention which is commented
(CSA) by the Central Statutory Auditors. It is, therefore, again reiterated that
while opening the loan accounts, branches should ensure the
correctness of the values fed against various parameters in the CBS
system.
2. Reversal of unrealized interest:

While classifying the assets, the CBS system will reverse unrealized
interest. If the branches notice non reversal of such interest by the
system, the same should be taken up with Department of Information
Technology immediately for making necessary correction.
3. Valuation of securities:
As per the extent guidelines, valuation of the immovable properties to
be done once in three years and such values are to be fed in the CBS
system. However, it is observed that in certain cases the branches have
not obtained the latest valuation report and fed in the system, which is
commented by the Central Statutory Auditors. It is, therefore, directed
that wherever the valuation report taken by the branches are more than

three years old, immediate steps to be taken for taking latest valuation
report and to feed the latest value in the system. Wherever the
deterioration in the value of securities like plant & machinery/vehicles
are noticed, current value should be fed in the system.
36 Specifications for Particulars Specifications

printing of Card Size A5 [i.e., 8.25‟ x 5.80‟ inch
Invitation Cards for Font Type Font : Times New Roman
opening/Shifting Logo: 87 mm (w) x 26 mm (h).
of Branch/office Head Office building : 34 mm (w) x 45 mm (h)
Font Size Text Should be 16 points (Royal Blue Text).
Highlighted Text 18 points (Red - Bold font) are as per the Speci
in the Annexure - I
Font Colour Header Size : 148 mm (w) x 46 mm(h) - 40% Yellow
Footer Size : 148 mm (w) x 14 mm(h) - 40% Yellow
Card text area – Half White - 20% Yellow
Card Type 300 GSM Foreign Art Paper
Backside Same Matter in Regional Language
Invitation A sample copy of Invitation cover page is enclosed in Annexur
cover page circular
Agenda Agenda of the function is enclosed in Annexure – 3
37 Precautions to be On the lines of the directions from the Ministry, and to have an effective
taken while control over such matters, our Bank has formulated the following policy in
advancing loans the matter of loans against bulk deposits which are to be strictly adhered
against bulk to.
deposits standing
in the name of  KYC documents of authorized signatory should be obtained and kept
Government on record and it should be ensured that the same tallies with that of
Departments/PSUs the documents taken while opening the deposit.
/Corporates  The loan documents should invariably be executed by the authorized
persons in the presence of bank official either in the branch or at the
office of the depositor.
 A request letter from the borrower in their letter head for sanction of
loan against deposit indicating the purpose of the loan should be
obtained and kept on record. Wherever required, a properly worded
Board resolution should be obtained.
 As far as possible proceeds of the loan to be credited to their
operative account with us. In the case of party‘s request for
crediting loan proceeds to their account with any other bank, it
should be ensured that the same is the genuine account of the party
and proceeds to be remitted by way of RTGS to the account.
Disbursement of loan by way of credit to third party accounts should be as

for as possible discouraged. In exceptional cases the same to be considered
with prior approval from the controlling authority.
 Duly discharged original deposit receipt to be held along with the
loan documents.
 A letter conveying the sanction addressed to the borrower to be sent
by Regd. Ad after sanctioning the loan and AD card to be preserved
carefully with loan documents for any future reference.

 On the due date of the deposit, the same to be adjusted to the loan
and balance to be remitted to the corporate/PSU with a covering
letter
 The statutory/concurrent auditors should also be advised to monitor
this aspect more closely and any deviation without proper approval
to be highlighted in their monthly report
38 Advances against Various precautions to be observed while advancing against NSCs

NSCs have been detailed
39 Empanelment of Investigating Officers
40 Web based applications for entering loan applications received under Retail
Loan Products and MSME Loans and tracking of the same has been
developed.
Our Bank has now put in place web based application for entering and
tracking of loan applications received at the branches. Once the loan
application is received at the branch, the branch officials have to login to
the application (http://172.16.3.95:9079) and feed the basic details. Then
the system will generate a reference number and customers as well as the
Branch/RACPC/Regional Office/Head Office can track the status of their
applications by using this reference number. Email and SMS alerts are sent
to the customers with the reference number as soon as the applications are
entered in the portal/status modification.
41 Existing guidelines Retail Lending Schemes- modifications / improvements in Retail
on V-Wheels, V- Products and in delegated powers:
Cash, VHL, VML &
V-Vyapar Schemes
have been revised
1. V-Wheels :
V-WHEELS
Existing Norms Revised Norms
1. Minimum Annual 1. Minimum Annual Income – Instead of the

Income for four ―Minimum Gross Annual Income‖ norm of
wheelers - Rs.4.00 lakh Rs.4.00 lakh for four wheeler finance,
stipulation of minimum net take home
salary/income of 30% after all deductions
including EMI of the proposed loan is
introduced.
2. Agricultural 2. In case of Agricultural borrowers, the

Borrowers assessment Branch Head should assess the income for
of loan the purpose of repayment capacity based on
the crops/activity as being followed in the
case of Housing Loan (Point No.13 of Master
Circular on Vijaya Home Loan No.14099
dated 28.04.2014).

3. Third Party 3. a. Below Loan limit of Rs.10.00 lakh –

Guarantee is required. It is the discretion of the sanctioning
authority to insist on third party
guarantee or otherwise on merits.
b. Loan Limit of Rs.10.00 Lakh and
above-
Third Party Guarantee is mandatory.
c. For NRI borrowers – Third Party
Guarantee
of Local Resident is mandatory.
V-CASH (Against 2. V-Cash (against pension) :

PENSION)
1. Loan Amount for 1. Loan Amount for Pensioners increased from

Pensioners - Rs.1.00 Rs.1.00 Lakh to Rs.2.00 Lakh.
Lakh (maximum)
2. ROI to pensioners 2. Reduction of interest by 1% i.e., BR+4.05
same as V-Cash – to BR+3.05 (floating)
General
3. Guarantee : (a) Spouse guarantee is mandatory.
Spouse guarantee is (b) Wherever loans are guaranteed by the
mandatory. spouse, no further guarantee of
relative / dependent is required.
(c) In case guarantee of spouse is not
available, dependent‘s guarantee is to be
taken mandatorily.
4. Quantum of Loan :
12 times of gross 18 times of average net pension actually
pension with a maximum credited during last six months subject to
ceiling of Rs.1.00 lakh maximum of Rs.2.00 lakh. 40% residual
net home pension to be maintained after
taking into consideration the EMI of proposed
loan.
5. Exit age for 5. Exit age for Pensioners raised to 72 years.

pensioners is 70 years.
V-CASH 3. V-Cash (General):

(General)

a) Assessment:
12 times of the average 18 times of the average net salary
net take home salary for actually credited during the last 6
last 12 months with a months with a cap of Rs.6.00 lakh
maximum of Rs.6.00 subject to maintenance of 40% net take
lakh subject to home salary after taking into
maintenance of 40% net consideration the EMI of the proposed
take home salary on loan.
their gross salary after
reducing the EMI of the
proposed loan.
b) Spouse guarantee is b) Spouse Guarantee is waived.
mandatory However, obtention of third party
guarantee acceptable to the Bank is
mandatory.
c) Renewal period is 24 c) Renewal is permitted after 12

months months from the disbursement of the
earlier loan subject to satisfactory
repayment.
V-HOME LOAN V – Home Loan :

a) Net take home a)

salary / income
Annual Income Take Home
should be 35- 40%
Stipulation
Up to Rs.10 Lakh 30%
Above Rs.10 Lakh & upto 20%
Rs.50 Lakh
Above Rs.50 Lakh 10%
b) Cost of all non b) Cost of all non moveable fixed assets / fittings
moveable fixed - the loan component for this purpose is limited to
assets / fittings - 20% of the overall construction/ acquisition
the loan component cost or Rs.10 lakh, whichever is less.
for this purpose is
limited to 10% of
the overall
construction /
acquisition cost or
Rs.5 lakh,
whichever is less.
c) Sanctioned Plan c) Sanctioned Plan – For Old Houses beyond 30
is mandatory – years where sanctioned plan is not available, it
Approved plan / need not be insisted but confirmation from the
blue print of the Local Competent Authorities should be obtained.
building issued by Appropriate Legal Opinion also to be obtained in
the competent this regard.

authority.
d) Delegated Revised delegated powers :

Power:
Scale Amount
Scale Amount (in Rs.)
(in Rs.) I 10 lakh
I 5 lakh II 20 lakh
II 15 lakh III – SM 25 lakh
III - SM 25 lakh IV – CM 50 lakh
IV – CM 50 lakh V – AGM* 3 crore
V – AGM 1 crore VI – DGM* 5 crore
VI – 2 crore VII – GM * 10 crore
DGM
VII – GM 3 crore * To be exercised by respective
(RO) delegatee at branch level/ RACPC/
RLAGMLCC/RLDGMLCC/RLCC.
Wherever branches linked to RACPC, the powers

should be exercised by RACPC only.
V-MORTGAGE 5. V-Mortgage Loan

LOAN
1. Present limit is Rs.1 1. Increased to Rs.5 crore for Priority &

crore Non-priority Sectors.
2. Purpose – Other than 2. Borrower should declare the purpose and

speculative give an undertaking letter as per the
prescribed format. (Draft enclosed)
3. Repayment period 7 3. Increased to 10 years.

years
4. Exit age :
a) 60 years for salaried a) 65 years for salaried class
class b) 75 years in case of non salaried
b) 65 years in case of non class / pensioners who are drawing
salaried class / pensioners pension through our Bank branches.
who are drawing pension
through our Bank branches.
5. Delegated powers to Revised delegated powers :
sanction the loan at present
is:
Scale Amount
Scale Amount (in Rs.)
(in Rs.) IV-CM 1 crore

IV-CM 25 lakh V-AGM* 3 crore

V-AGM 50 lakh VI-DGM* 5 crore
VI-DGM 100 lakh
* To be exercised by respective
delegatee at branch
level/RACPC/
RLAGMLCC/RLDGMLCC/RLCC.
Wherever branches linked to RACPC, the

powers should be exercised by RACPC only.
6. Vacant land:
The deviation with the Prior administrative clearance need not be
approval of the GM (Credit- obtained from GMLCC (Credit-Retail &
Retail & MSME). Only MSME) for V-Mortgage loan upto Rs.1.00
residential site or plot crore where collateral security offered is
allotted by Statutory vacant site or plot.
Development Bodies like
BDA, MUDA, DDA, etc., is Only residential site or plot allotted by
to be considered. The plot Statutory Development Bodies like BDA,
should be in the name of MUDA, DDA, etc., is to be considered. The
first time allottee. The plot should be in the name of first time
property should have clear allottee. The property should have clear
demarcation/boundaries, demarcation/boundaries, fenced and
fenced and photograph to photograph to be obtained. Bank‘s board
be obtained. Bank‘s board indicating the mortgage in our favour
indicating the mortgage in should be displayed.
our favour should be
displayed. Note: For loan amount above Rs.1 crore
land with building should only be taken as
security.
V-VYAPAR
1. Quantum of loan – Rs.2 1. Quantum of loan enhanced to

crore Rs.5 crore.
2. Repayment period - 84 2. Repayment period extended to
months. 120 months.
3. Obtention of sales 3. Sales Tax Return to be
documents. obtained every year.
4. Limit is available only to 4. Loan extended to the
the traders. manufacturers and MSME units.
5. Non fund based limit 5. Non fund based limit
should not exceed 25% of enhanced to 50% of the
sanctioned limit. sanctioned limit.
42 Sanctioning of JEWEL LOAN CASH CREDIT/OVERDRAFT: Account to be opened as

loans against running account under the new scheme code Scheme code CC 605.
Jewels for

Agriculture purpose In order to provide need based credit support to Farmers and to avoid the
as Operative Cash repetitive closure/opening of accounts and also to avoid repetitive
credit/ Term loan documentation, Bank have brought out certain modifications in Agricultural
for a tenor of 24 Jewel loan system by introducing an operative Cash credit/ overdraft
months with provision for annual review and also a Term loan for 24
months tenor.
However, farmers who desire to have demand loan payable within a
year, have option to avail the same under the existing JL 705
scheme.
As per the extant guidelines, Jewel Loans can be granted for a maximum
period of 24 months to meet the credit needs of the farmers for any
agricultural / allied activities. Accordingly, the following system is proposed
whenever the famers request for a repayment period of 2 years for the
term loans:
Loan account to be opened under the new scheme code as given below:
Scheme code :JL 708 -JL TL Agri (Non Subvention)
: Parking of bulk deposits of Rs. 5 crore & above of Government / Semi

Government / Public Sector Undertakings / Local authorities and Corporates
in select branches at a particular city / centre w.e.f. 1/4/2015.
This is applicable for bulk term deposits of Rs. 5 crore and above (although
the RBI definition of bulk term deposit is Rs.1 crore & above). This covers
bulk term deposits obtained from Govt./Semi-Govt./Public Sector
Undertakings, Local authorities & Corporates.
In respect of Trusts, Partnerships, Schools, Colleges, individuals etc., the

accounts can be parked at branches other than identified branches by
obtaining specific permission/approval from HO justifying the need for the
same.
43 Inspection of Extra caution be exercised while accepting delivery challan instead

Goods of Lorry/Railway receipts as evidence of goods transported.
Wherever the goods are received under delivery challan, such goods
are invariably inspected and report be held on record.
For financing goods, Lorry Receipts (LRs) and Railway Receipts (RRs) are
preferred documents by Banks for evidence of movement of goods.
However, in the following circumstances delivery challans are enclosed by
the suppliers to the bills drawn on the buyer as an evidence of change of
hands of specified goods and the bankers do accept the delivery challan for
financing purposes :
a. When the goods are locally transported and hand delivered

b. In other cases, for various reasons the goods are first delivered to
the buyer subsequently the supplier draws bill on the buyer by
enclosing delivery challan.
For financing purposes, the bankers prefer Lorry receipts and Railway
Receipts because these have the status of title to goods and are endorsed
in Bank‘s favour by the supplier. On receipt of payment the banker
endorses the LRs/RRs in favour of the borrower/buyer facilitating delivery of

the goods to the buyer. In respect of Bills Purchase and LCs issued, if the
payment is not forthcoming the banker is entitled to take possession of
goods himself. Whereas in the case of delivery challan the goods stand
delivered to the buyer.
Further, in the case of delivery challan, there is ample scope for production
of fabricated challan by the borrower without actual movement/delivery of
goods - inspection of goods is indispensible.
44 Online payment of Customs Duty through Indian Customs EDI Gateway
(ICEGATE) portal.
45 Revision in LTV Now, RBI with a view to encourage availability of affordable housing to
Ratio – Economically Weaker Sections (EWS) and Low Income Groups (LIG) where
Economically the cost of the house/dwelling unit does not exceed Rs.10 lakhs, has
Weaker Sections advised the Banks vide their letter No.RBI/2014-15/491 DBR.BP.BC
and Low Income No.74/08.12.015/2014-15 dated 05.03.2015 (copy enclosed), to include
Groups – Unit / stamp duty, registration and other documentation charges to the cost of
Dwelling cost not the house/dwelling unit for the purpose of calculating LTV ratio. For
exceeding Rs.10 house/dwelling units whose cost exceeds Rs.10 lakhs, the existing
lakhs guidelines issued vide HOC 12023 dated 07.02.2012 remain unchanged.
46 Dispensing with RBI has issued instructionsto dispense with obtaining „No Due
“No Due Certificate‟ from the individual borrowers (including SHGs & JLGs)
Certificate” for in Rural and Semi urban areas for all types of loans including loans
lending to all type under Government Sponsored Schemes, irrespective of the amount
of advances in involved unless the Government Sponsored Scheme itself provides
Rural & Semi for obtention of „No Due Certificate‟.
Urban areas. Branches may note that Service Area Approach continues to be
applicable for Government Sponsored Schemes andthe borrower is
free to approach any Bank branch in his Service Area for obtaining credit
under Government Sponsored Schemes.
In this regard, Branches are advised to use an alternative framework of

Due diligence as part of credit appraisal exercise other than the ‗No Due
Certificate‘ which would, among others, consist of one or more of the
following:
 Credit history check through credit information companies.

 Self-Declaration or an affidavit from the borrower.
 CERSAI registration.
 Peer monitoring.
 Information sharing among lenders.
 Information search (writing to other lenders with an auto
deadline).
47 Common application for Self Help Groups (SHGs) for opening Saving
Bank Account and Loan Documentation.
48 Promotion policy for AWARD STAFF 2015

49 Financing of Grid interactive/connected Solar Roof Top Photo Voltaic (PV)

power plants to individuals as a part of Home Loan / Home improvement

loan.
The Ministry has advised all Banks to encourage the home loan / home
improvement loan seekers to install rooftop solar panels and include the
cost of such equipment in their home loan proposals just like non solar
lighting, wiring and other such fittings.
50 Alertness and courage shown by the staff member- Attempted dacoity at
our Siwaya branch.
51 Guidelines for Guidelines on holding of Joint keys of Safe/Strong room for preventing of
holding of Joint
fraud is reiterated as follows:
Keys.
1. The Joint keys of Safe/Strong room should not be left on table, and
same should be always kept in the physical custody of respective
joint custodian. Also, at any point of time both the keys should not
be handled by single custodian.
2. The joint key holders should keep the keys entrusted to them in
their personal custody at all time. Under no circumstances, should
the keys be kept in their table drawers or at any other place in the
office at any time.
3. The keys should always be preserved under lock after office hours at
the residence of the officer/employee concerned and not with
anyone other than the authorized person.
52 Guidelines for Guidelines for Handling of cash at counters for preventing of fraud is
Handling of Cash
reiterated as follows:
at counters.
1. Cashier at the branches should not leave the cash cabin unlocked
2. The cashier must invariably bolt and lock the door from inside when
he/she is in the cabin. Similarly, the cash cabin door must be locked
from outside whenever the cashier goes out of cash cabin even for
short period so that no unauthorized person can enter the cabin.
3. The cashier may leave the cabin only after ensuring that both the
cash and cash cabin are securely locked. The key of the cash box
should be in the possession on the cashier only.
4. The cashier should ensure that cash cabin key is not left in the door
lock.
5. It must be ensured that the amount of cash at the counter does not
exceed the required amount, in no case the amount of cash at the
counters should exceed the amount of which the insurance is taken.
6. Branch should ensure maintaining the cash holding at the branch

within the stipulated cash retention limit.
53 System Driven 3% Interest Subvention application for prompt repayment of

short term crop loans for accounts closed/reviewed from 01.04.2015:
 Accounts closed/reviewed on or after 01.04.2015.
 3% additional interest subvention for prompt payment under
Short term crop loans.
 Calculation of 3% interest subvention by the system and
automated credit to the Borrowers‟ accounts.
54 Key Responsibility Areas of Executives heading Regional Inspectorates.

55 Monthly Surprise branch visits by RO Executives and RI-Head to verify the
compliance certificates submitted by branches / offices.
56 Revision of The Charges for the Credit Information Reports of all the Credit Information
charges for Companies uniformly as follows:
generation of
Credit Nature of Report Revised Charges
Information Consumer Reports Rs. 100/- + Applicable Service Tax
Reports (CIR) Commercial Reports Rs. 1200/- + Applicable Service Tax
from Credit
Information In case of obtention of multiple CIRs viz. for Company borrower, guarantor,
Companies (CIC) Proprietor, Partners, Directors etc., separate charges as applicable should
and revised be collected in addition to charges collected from main loan applicant. The
procedure for revised charges are applicable with effect from 01-04-2015.
collection of
these charges:
57 Modification of Delegated Powers ( Non-Lending) under,
a. Chart VI (Fixation of Rent for leased premises),

b. Chart VII (Miscellaneous Matters) – Writing off loss on sale of old
furniture/ equipments and unserviceable items
furniture & fixtures and
c. Chart V (Advertisement and publicity through media)
58
Interest  Monitoring of end use of short term crop loans under Interest
Subvention Subvention Scheme with special focus on Agricultural Jewel Loans.
Scheme
 Credit Limit for granting Jewel loans for agriculture purpose on
declaration basis is reduced from Rs.2.00 Lakhs to Rs.1.00 Lakh.
59 New Retail Loan New Retail Loan Scheme for existing housing loan borrowers with prompt
Scheme “VIJAYA payment track record to meet their genuine, urgent credit requirements.

TOP UP LOAN”
Individuals and Joint Borrowers who have availed Housing Loan
Housing Loan borrower or his spouse or both jointly. If availed in

the name of the spouse of the borrower, then the borrower shall
stand as guarantor to the loan by offering the continuing security
of the property charged to the housing loan.
The repayment in the Housing Loan should have commenced

already after moratorium period and the borrower is regular in
repayment for a period of atleast one year with the a/c in Standard
Asset category without any default history.
Minimum Housing loan amount availed should be minimum Rs.10

lakh.
The outstanding balance in the existing housing loan a/c together

with the amount of Top up loan should not exceed 80% of the latest
assessed value of the property as per the latest valuation report
from our approved valuer.
Repayable in maximum of 60 equated monthly installments.
However, the due date of the Top Up Loan should not be beyond the
due date of existing home loan account.
The loan can be availed any number of times during the tenure of
home loan account. However, there should be a minimum gap of 12
months between the dates of availment of two loans.
If the Top Up loan is sanctioned after 3 years from the date of

Housing Loan, a fresh Valuation of the property should be taken & it
should be ensured that appropriate margin on the value of the
property is maintained.
Borrower Due Diligence: If the Top Up loan is taken in the name of

existing borrower himself, no further borrower due diligence is
required. If the loan is in the name of the spouse, it is left to the
discretion of the Branch, on case to case basis with justification.
ROI = BR+-2.50=12.75% p.a. at present - Floating.
60
LOCKER RENT Revision in Locker Rents with effect from 01.04.2015
revised
Area of the
Semi-
Locker in cubic Rural Urban Metro
Urban
Inches
Upto 750 750 800 1000 1200

751 to 1100 800 850 1200 1400
1101 to 1600 1600 1800 2300 3000
1601 to 2100 1700 2100 2700 3500
2101 to 3100 3000 3500 4000 4500
3101 to 4100 3500 4000 4600 5100
4101 to 6500 4500 5000 6000 6000

*Service Tax Extra
61 Availability of Credit Card billing/unbilled data through net banking.
62 Debit Card It has now been decided to enhance the Debit Card Annual charges to Rs
Annual charges 100/- + applicable service tax from April 1, 2015.
Debit cards linked to the following type of accounts will be exempted from
Annual Charges:
1. Financial inclusion schemes & Kisan Debit Cards (SB 105, SB 117,
SB 118, SB 119, SB 123 & SB 124, VK701, VK865, VK692)
4. V Genuth accounts (SB 111 & SB 112)
5. V Platinum accounts (SB 106, 107, 108 & 109)
Portal for monitoring the monthly performance of Agriculture Officers.

63
64 INFORMING CUSTOMERS, IN A TRANSPARENT MANNER, ON

REQUIREMENT OF MINIMUM BALANCE IN SAVINGS BANK ACCOUNT
AND ON THE LEVY OF PENAL CHARGES FOR NON-MAINTENANCE OF
THE SAME AT THE TIME OF OPENING THE
ACCOUNTS.
The levying of the above revised charges is subject to the following:

This will come into effect from 1st April 2015 and is applicable to only SB
accounts .
In the event of a default in maintenance of minimum
balance/average minimum balance as agreed to between the bank
and customer, the bank should notify the customer clearly by SMS/
email/ letter etc. that in case the minimum balance is not restored in
the account within a month from the date of notice, penal charges
will be applicable.
In case the minimum balance is not restored within a reasonable

period, which shall not be less than one month from the date of
notice of shortfall, penal charges may be recovered under intimation
to the account holder.
It should be ensured that the balance in the savings account does

not turn into negative balance solely on account of levy of charges
for non maintenance of minimum balance.
Branches to make To convert such a lost opportunity into actual business proposition and to
65. use of CIBIL help the field level functionaries to contact the existing borrowers, CIBIL
Consumer Triggers has agreed to provide ―Consumer Triggers‖ on daily basis. Under this
for arrangement which is being implemented on a trial basis for 3 months‘
monitoring the period from 1st April 2015 onwards, the Bank is providing a ―Watch List‖ of
credit requirement existing consumer borrowers to CIBIL under Housing Loans/Vehicle
of existing Loans/Education Loans/V-Cash Loans. When our borrower from the ―Watch
consumer List‖ approaches any CIBIL member for credit facility, such member
borrowers for institution would make a credit check with CIBIL and CIBIL, in turn, will
business send a ―Trigger‖ to our Bank. List of such ―Triggers‖ generated during the
development. previous day will be made available to branches and
Regional Offices on the very next day by I-net. The ―Triggers‖ also contain
valuable information like latest address and contact numbers which may
not be available with the branch at present.
66 STAFF HOUSING LOAN scheme:
Eligibility - Officers confirmed & For clerks & Substaff- Confirmed with 2
year service must to apply.
Repayment - Installments up to Maximum 70 years of age of an employee

shall be allowed. 300 monthly installments (Principal to be recovered
initially in 225 equal monthly instalments and accumulated interest, there
after, in 75 equal monthly instalments.)
Quantum-90% of Cost or Officers-50, Clerks-30, Substaff-20 lakhs

whichever is less.
Rate of Interest – BASE RATE at Simple Interest (Floating)
Principal repayment is permitted to be staggered and stepped up after

initial period of 75 months. Principal repayment for initial period up to 75
months is accordingly fixed for 25% of the loan amount and 75% balance
loan shall be repaid in 150 equal monthly installments.
Quantum for Repairs- Officers-6, Clerks-4, Substaff-2.50 Lakhs
Repayment of Loan taken for Repairs - 120 monthly installments

(Principal to be recovered initially in 90 equal monthly instalments and
accumulated interest, there after, in 30 equal monthly instalments.)
MARGIN:

For purchase of site and construction of house or purchase of flat or

ready built house:
10% of total cost of acquisition or estimated construction cost. However,
the loan component for financing acquisition cost of site/plot should not be
more than 50% of total loan quantum.
For repairs and renovations:

25% of estimated cost of repairs and renovation.
MORATORIUM
Construction of residential Maximum of 24 months from
building & purchase of flat date of first availment or 6
under construction. months after completion,
whichever is earlier.
Purchase of ready built Maximum of 3 months from
house or flat date of release of first
instalment.
Expansion of existing pre- Maximum 12 months from the
owned residential building date of first draw down.
Repairs, renovation, Maximum of 6 months from the
improvement date of first availment.
Purchase of ready built Maximum of 6 months from the

independent house and to date of loan availment
carryout repairs & depending upon the extent of
renovation work involved.
Purchase of residential site Maximum of 24 months from

together with financing cost date of first availment of loan
of construction of the house for purchase of site or 6
thereon. months after completion,
whichever is earlier.
67 Domestic Credit related service charges are revised from 01.04.15.

(For Details refer HOC 15067)
68 A key fact Banks should provide a clear, concise, one page key fact statement/fact
statement as per sheet,as per the prescribed format in Annexure to all individual borrowers
the annexure is to at everystage of the loan processing as well as in case of any change in any
be terms andConditions. The same may also be included as a summary box to
Obtained for all be displayed in the credit agreement.
types of loans.
In the light of RBI instructions, all field functionaries are hereby advised to
prepare the said statement in duplicate and provide one copy to the
borrower
and another copy duly acknowledged by the borrower may be attached to
the
loan agreement for all types of loans.
69 Delegated Powers Corrigendum to Circular No. 15057 Dated 25.03.2015 - Modification of

Delegated Powers ( Non-Lending) under Chart VI (Fixation of Rent for

leased premises)
Gist of Selected Circular LETTERs – 2014

(Only important Circular letters selected)

No.
4 Reimbursement of Rs.2,500/- p.a. to the employees retired on
superannuation on declaration basis.
12 MoU with India In order to increase thrust to MSME sector, our Bank has entered into MoU
Ratings & with India Ratings and Research agency. The rating exercise will be
Research beneficial to the MSMEs, as it enables them to identify their strengths and
weaknesses for taking remedial measures in time.
The India Ratings & Research rating agency provide Performance and Credit
Rating for Micro, Small and Medium Enterprises (MSMEs). The financial
parameters are mapped against industry benchmark.
18 Govt/Quasi Proper oversight of the deposit accounts opened by Government / quasi
Govt. Dept government Departments, Ministries, PSUs, autonomous bodies, etc., to be
Accounts ensured and KYC guidelines adhered:
19 DCB Bank ―Development Credit Bank Limited ― has been changed to DCB Bank
Limited in the Second Schedule to the Reserve Bank of India Act, 1934
w.e.f. 24th October 2013.
21 Concession in rate of interest to the MSME borrowers rated through
M/s India Rating and Research Pvt. Ltd.
22
Addendum to The following is the addendum to Delegation of Powers(non-lending) made
Delegation of under HOC 13215 dated 15.07.2013 under Chart-V_
Powers REGIONAL HEADS (IN Rs.)
General Manager Dy. General Manager Asst.General Manager
50,000 35,000 25,000
28 Mandatory The Informal Group on Rationalisation of Procedures on CTS , constituted

verification of by Reserve Bank of India, reiterated the need to verify the CTS cheques
Clearing cheques through Ultra Violet Lamp.
through Ultra
Violet Lamp Accordingly, all the field functionaries are advised to verify the CTS cheques
through Ultra Violet lamp and affix a stamp stating ”verified through
Ultra Violet Lamp” confirming such verification, before presenting
cheques in clearing.
30 NRE Term Deposit i) No penalty will be charged on NRE term deposits which are prematurely
– Waiver of closed after one year from the date of deposit but before the contracted
Premature penalty period.
& Mandatory

Disclosures ii) Minimum tenure of any NRE term deposit is one year, i.e., NRE deposits
cannot be accepted for tenure of less than one year.
[
iii) No interest will be paid on NRE Term deposits, originally accepted for a
period of more than one year, but prematurely closed before completion of
one year from the date of deposit.
31 Prohibition on Branches are prohibited from crediting the proceeds of any ‗Account Payee‘
crediting proceeds cheque/instrument, accepted on behalf of a constituent for collection, to
of ‗Account Payee‘ any account other than the one named in the instrument.
cheques to Third
Party accounts The Reserve Bank of India, vide letter RBI/2013-
14/458/DBOD.BP.BC.No.87/ 21.01.001 / 2013-14 dated 22 January 2014,
has reiterated the above instructions and advised to ensure that ‗banks
should strictly collect account payee cheques only for their payee
constituents.‘
The only exception is in the case of collecting account payee cheques, not
exceeding Rs.50,000/- (Rupees fifty thousand only), on behalf of co-
operative societies, who are our constituents. In such a case, proceeds of
account payee cheques, drawn for an amount not exceeding Rs.50,000/-,
can be credited to the account of the said co-operative society only if the
payee of the cheque is also constituent of the co-operative society, who in
turn has an account with us.
35 Vijaya Tax Savings Scheme Deposit Accounts – REITERATION:
The following specific conditions, among others, were laid down for
acceptance
of deposits under the scheme:
1. Deposits are accepted for a period of 5 years only
2. Maximum deposit in a Financial Year is restricted to ` 1,00,000/- per
depositor
3. Deposits cannot be withdrawn /encashed prematurely
4. Deposits under the scheme cannot be pledged to secure loans or as
security to any other assets
5. Deposits under the scheme are not transferable
6. Only senior citizens are eligible for additional interest benefit and no
other category of depositors, such as 'staff members', 'retired staff
members' etc., are eligible for additional interest
7. In the event of the death of the holder of a term deposit in respect of
which a nomination is in force, the nominee or nominees shall be entitled at
any time before or after the maturity of the term deposit to encash the
term deposit.
8. PAN Number to be recorded on the deposit receipt
9. Depositor should affix his / her signature on the deposit receipt.
41 Int.Subsidy for Competent Authority to issue Income Certificate under Central

Education Loan Scheme to provide Interest Subsidy on Education Loan (CSIS):

The IBA vide their letter No SB/CIR/10-21-ISS/8762 dated 30.01.2014 has

communicated the updated list of designated income certifying authorities
to issue income certificate under Central Scheme to provide Interest
Subsidy on Education Loan Scheme (CSIS).
SEE ANNEXURE TO this Circular Letter - INCOME CERTIFICATE

ISSUING AUTHORITY
IN VARIOUS STATES/UNION TERRITORIES AS ON January, 2014
listed out.
42 Payment of subsidy directly to the Farmer‟s Account under various

schemes of Department of Agriculture, Govt of Karnataka.
Department of Agriculture, Govt of Karnataka during the recent

meeting held on 10.01.2014 has informed the modalities of Direct
Transfer of benefits to farmers‟ Accounts under various State
Government funded schemes.
49 Reserve Bank of India is in the process of phasing out all old series of
banknotes issued prior to 2005.
Accordingly, the following plan of action has been formulated :

i) All older series of banknotes issued prior to 2005 would be acceptable for
all kinds of monetary transactions only till March 31, 2014
ii) Thereafter, the public will be required to approach bank branches which
would provide them exchange facilities on an ongoing basis
iii) These notes will continue to be legal tender.
iv) From July 01, 2014, to exchange more than 10 pieces of � 500 and �
1000 notes, bank branches should obtain from non-customers, proof of
their identity and residence.
50 Limited Review The Statutory Central Auditors (SCA) have made certain observations
for the quarter related to our Section,
ended Dec. 2013 based on the process of limited review for the quarter ended Dec. 2013,
- which are as under:
Observations
made by the 1. Collection, collating and using information relating to borrowers at all
Statutory Central operational levels needs to be strengthened.
Auditors 2. DP calculations/verification & analysis of documents such as stock
statements, QIS, stock audit reports etc. submitted by borrower needs to
be reviewed & improved.
3. Need to strengthen the monitoring of revenue leakage specifically in case
of large advance accounts.
4. Deficiencies in credit monitoring & appraisal leading to increase in NPA.
5. In CDR cases stringent compliance of terms & conditions has to be
ensured.
6. Economic loss on restructured assets – Methodology and programming
logic needs to be corrected.
7. By proper training & strict monitoring from RO/HO the collection and
usage of information relating to credit supervision at all operational levels

should be improved & strengthened.

8. Branch/RO should ensure application of penal interest for non submission
of stock statement, QIS etc.,
9. Wrong classification of loans due to wrong entry of duration of crop
season.
10. Current market value in respect of mortgaged assets needs to be
updated.
11. Physical storage of security documents needs improvement.
12. Expired BGs are not reversed
52 Margin All proposals of margin money claims shall have to be necessarily supported
Money/Subsidy by the following documents:
claim under
PMEGP- 1) Margin Money claim with Photo attested by Branch Manager.
Supporting 2) Forwarding Letter from the implementing agency
Documents (KVIC/KVIB/DIC)(Xerox Copy).
3) Loan Sanction Letter from the Financing Bank duly attested by
the Branch Manager.
4) Account Statements in respect of Deposit of Own Contribution
and Loan Release from the Financing Branch duly attested.
5) Qualification Certificate (Xerox Copy) duly attested by the Branch
Manager wherever applicable.
6) Annexure-E on Rs.100/- Stamp Paper (as per the format).
7) Caste Certificate in the case of SC/ST/OBC Category beneficiaries
(Xerox copy).
8) Lease Agreement in case the land is leased / Rent Agreement in
case the work shed is rented (Xerox Copy).
9) License from Mines Department in case of Quarry Units wherever
applicable.
10) Pollution Certificates from Pollution Control Board wherever
required.
11) Project Report approved by the Financing Bank.
12) All the Xerox Copies should be attested by the Branch Manager of
the Financing Branch concerned.
53 Revised In view of the clarification received from RBI, Interest Subvention

guidelines on Scheme for Short term crop loans up to Rs 3 lakh has been revised.
Interest Main features are as under:
Subvention  2% interest subvention for Short term crop loans disbursed
Scheme for during 2013-14 and
Short term crop  3% additional interest subvention for prompt payment.
loans up to Rs 3 Under Vijaya Kisan Card (VKC) / Vijaya Planters Card Scheme
lakh disbursed (VPC), loan components relating to crop production expenses and
during the year post-harvest expenses i.e amount upto 10% of crop production
2013-14. limit, are only eligible for Interest Subvention.
70 Entries outstanding in the clearing suspense and clearing adjustment
accounts should be
analysed and eliminated on a war footing. As this is a fraud prone area,
clearing suspense and clearing adjustment accounts should be reconciled
on a regular basis and brought to NIL.
Reserve Bank of India has since clarified that in terms of FEMA 1999,
72 Foreign students definition of a person resident in India does not include a person who has

studying in come to India or stays in India for any purpose which would indicate his
India-KYC stay for a definite period. Accordingly, foreign students coming to India
procedures would be considered as ―non-resident‖ and a resident account cannot be
opened for them.
Reserve Bank of India advised all the member Banks to note the above
instructions and follow the below given guidelines while opening accounts of
the foreign students studying in India, to minimise the difficulties faced
by them in complying with the Know Your Customer (KYC)norms, due to
non-availability of any proof of local address:
1. Banks may open a Non Resident Ordinary (NRO) account of foreign

students on the basis of any one of the following:
the Passport, with appropriate Visa and Immigration endorsement, which
contains the proof of identity and address in the home country ;
the photograph of the student ;
a letter offering admission from the educational institution;
Certificate of registration issued by Foreigner Regional Registration
Office(FRRO);
2. After opening the account, within a period of 30days, the foreign student
should submit, a valid local address proof, in the form of rent agreement,
for which Banks should not insist on the visiting of the landlord but adopt
alternative means of verification or a letter from the educational institution
for providing hostel facilities;
3. Pending verification of address, during the 30 days‘ period, the account

should be operated with a condition of allowing foreign remittances not
exceeding USD1000 and a cap of monthly withdrawal to the extent of Rs.
50,000/-;
4. On submission of the proof of current address, the account would be

treated as a normal Non Resident Ordinary Account, and will be operated in
terms of provisions of FEMA Regulations. The following credits and debits
can be made in the accounts-
Credits –
Legitimate dues like interest accrued etc. of the account holder,
in India;
Proceeds of remittances received in any permitted currency from outside
India through normal banking channels or any permitted currency tendered
by the account holder during his temporary stay in India or transfers from
rupee accounts of nonresident banks;
Debits –
All local payments in rupees including payments for investments subject
to compliance with the relevant regulations made by the Reserve Bank of
India, from time to time.
Balances in NRO Accounts are not eligible for remittances outside India
without the approval of Reserve Bank of India.
5. The transactions in these accounts shall be reported to Reserve Bank in
accordance with the directions issued from time to time.
6. Students with Pakistani Nationality should obtain prior approval of the
Reserve Bank of India, for opening account.

Incentive for CASA Campaign– Prove That you CARE – Bring CASA
77 Incentives for the winners of CASA Announced.
80 V-NIVAS Home ‗V-Nivas‘ Home Loan Scheme was introduced in terms of HOC 01/2009
Loan dated 01.01.2009 and the scheme was in force upto 31.12.2009. In terms
of the said circular:
a) The interest rate should not exceed 8.50% for loans upto Rs.5.00 lacs
and 9.25% for loans up to Rs.20.00 lacs for the first five years.
b) The rate of interest shall be reset after 5 years from the date of drawal
of first installment.
c) The borrower will then have the option for going for a fixed rate or a
floating rate of interest thereafter.
The Scheme has completed 5 years and as such it is necessary to reset rate
of interest for all the loans as and when they complete 5 years from the
date of drawal of first instalment.
89 The Bank had introduced Scholarships to the Girl children of our staff
members.
The Scholarships are:
1. V-Shakthi – Scholarship for one girl child of single mothers/ widows
2. V-Subodhini – Scholarship for one girl child of all the lady sub-staff
3. V-Pragathia. - Scholarship for Top Ten meritorious girl children of all
staff (Tenth/ equivalent
exam Completed) b. Scholarship for Top Ten meritorious girl children of all
staff (Twelfth/ equivalent exam Completed)
Certain State Boards and CBSE pattern of X Standard have Grading

system where Grades denote range of marks i.e. Grade A = 95-100 marks,
etc.
Some State Education Boards and ICSE have marking system only.
In view of the divergent evaluation systems of Educational bodies in the

case of V-Pragati
(a) Scheme, it has been decided to suspend the scheme. However, V-
Pragati (b) Scheme
for the Top Ten meritorious girl children who have completed XII standard/
PUC or any
equivalent examination will continue on the earlier terms and conditions.
91 VMANGALA – Originally, if the mortgage is created by way of Registered Mortgage, the

Clarification enhanced portion (in the instant case, fresh Vijaya Mangala Loan) being
sanctioned by taking the house property as continuing security should also
be secured by way of Registered Mortgage only, by paying the applicable
stamp duty, registration fee, etc., for the enhanced loan amount.
Further, in terms of HOC 10200 dated 13.09.2010 (Clause 30, Page

23),Memorandum of Deposit of Title Deeds (i.e. EMDTD Memorandum) shall
have to be registered in such of those States where such a system is in

vogue.
In such cases also where the Memorandum is registered for the original
housing loan amount, the enhanced portion (in the instant case, fresh
Vijaya Mangala Loan) shall be secured by obtaining continuing security
memorandum/letter which shall also be registered with Sub-Registrar office
by paying the requisite stamp duty/registration fee, etc.
Withdrawal of exemption/relaxation with regard to mandatory EDP Training

103 PMEGP for benefi-ciaries under PMEGP. Accordingly, beneficiaries have to undergo
mandatory EDP Training after the sanction and before the disbursement of
first installment.
However, if the beneficiary has already undergone such training of at least

2 weeks
duration, either with the training centre of KVIC/KVIB /State DICs or the
Institutions recognized by or under the administrative control of Ministry of
MSME or at any other training centre of repute, such beneficiary need not
undergo further
EDP training.
104 Annual Health Reimbursement of Annual Health Checkup for Executives is now enhanced
check up – to Rs.5000/-.
Executives
105 Annual Health

check up – Officers Reimbursement of Annual Health Checkup for Officers is now enhanced to
Rs.2000/-. Age Limit for eligibility is reduced to 30 years.
108 PPF & SCCS Rate of Interest on accounts under PPF 1968 Scheme w.e.f.01.04.2014 is
Retained at 8.7% Per Annum and Senior Citizens Savings Scheme, 2004
(SCSS) is 9.2%.
110 CGTMSE The Regional Office will submit only a single D&U, duly signed and stamped
as hitherto, for the single/multiple claims lodged by it on a particular day
with due certification at the end of D&U that D&U covers all the claims
lodged by it on particular claim date. The Regional Office shall generate the
D&U, as per the revised procedure, on the following day of the
lodgement of claim/claims with a view to ensure that all the claims
lodged on a particular day are duly captured. For the purpose of generation
of D&U, Regional Office will login to
CGTMSE portal and then select ―Report & MIS module>claims Declaration
and Undertaking‖ option and incorporate the date on which the claims have
been lodged on line for which D&U is required to be generated. A scanned
copy of the said duly stamped and signed D&U must be invariably
sent immediately to CGTMSE by email at
claimedeclaration@cgtmse.in to enable CGTMSE to initiate processing of
claim, followed by hard copy to be sent by courier as hitherto. All the pages
of D&U are to be duly stamped and signed by the authorized signatory in
case the D&U runs into more than one page. The
claim lodgment date and member id number may be invariably indicated in
the subject matter of email for easy reference at CGTMSE.

112 V-DOCTOR Total repayment period including moratorium period shall not exceed seven
years in case of term loan. Maximum moratorium period of 18 months is
allowed.
115 Quick Mortality While conducting the Annual Financial Inspection (AFI) of our Bank, the RBI
case inspectors have remarked that there is increase in the number of QMCs,
most of them pertain to branch sanctions and the main reason for QMCs is
insufficient income.
Reporting insufficient income as the main reason for QMCs reflects on the
quality of credit proposal appraisal. The future cash flows by the borrower
were not assessed correctly and the credit decision were taken. This has
resulted in failure of the project/unit and the borrowers have defaulted in
repayment of the loan.
Life Insurance One of the salient features of the V-Nivas Home Loan scheme is to extend
118 coverage to free life
borrowers under insurance coverage to the borrowers. Previously the bank had entered into
VNivas Home Loan an agreement with M/s Kotak Mahindra Old Life Insurance Ltd. for
scheme extending life insurance coverage and the same expired on 31.03.2014.
The Bank has now entered into a tie up with M/s ING Vysya Life Insurance
Co. Ltd.
to provide life insurance coverage which is valid form 02.04.2014 to
01.04.2015.
130 Special Term Deposit Scheme does not have ―AUTO Renewal Facility‖ –
Affixing special Seal on Application Form and Deposit Receipt.
134 V-Wheels Scheme

– Modification in 1) Quantum of finance increased to 85%of cost of vehicle and 70% in case
Income Criteria of 2nd hand vehicle which is not more than 5 years, given by the Approved
and Quantum of valuer or Government valuer.
Finance 2) Income of the family members may be included for arriving at the
eligibility.
To arrive at the income eligibility criteria {minimum gross income of Rs

4.00 lacs per annum for financing 4 wheelers (only)}, we may include the
income of spouse, major children including unmarried daughters,
supporting the borrower financially provided they join in execution of loan
documents as co-borrowers.
136 CGTMSE Annual Bank has granted concessions in CGTMSE Fee payable to certain sector as
Guarantee Fee below:
1. FOR PMEGP Borrowers:
a) Upto 5 Lakhs- 100% fees will be borne by the Bank

b) Above 5 Lakhs – 50% will be borne by the Bank

2. Women Entrepreneurs:
Bank is granting 25% concession ie., 25% of applicable CGTMSE Fees
will be borne by Bank.
Incase of Women PMEGP Borrowers – 25% (Concession available for
Women) + 50% (Concession as available for PMEGP) ie., 75% will be
borne by the Bank for Loan above 5 Lakhs.
Annu Concess
Any al ion Amount Annual Concession Amount
Credit availabl
except Fee e to be PMEGP Fee available to be
for
applic Women Collecte Wome applicab additional
PMEGP able by d n le 25% Collected
WOME Borrow
N only Bank (A-B) ers (A-B)
A B C A B C
Upto 5 Upto 5
lakhs 0.75 0.19 0.56 lakhs 0.75 0.75 0.00
plus plus
S.T.* 25% S.T.* 100%
>5 to >5 to
100 100
lakhs 0.85 0.21 0.64 lakhs 0.85 0.64 0.21
plus plus (50%)+
S.T.* 25% S.T.* (25%)
Applicable Service Tax to Additional applicable Service Tax also to be
be levied levied
Annu
Any al NO Amount Annual Concession Amount
Credit Concessi
except Fee on to be PMEGP Fee available to be
appli
cabl Collecte applica
PMEGP e for MEN d MALE ble for MEN Collected
MEN Borrowe
ONLY (A-B) rs (A-B)
A B C A B C
Upto 5 Upto 5
lakhs 1 0.00 1.00 lakhs 1 1.00 0.00
plus
S.T. plus
* S.T.* 100%
>5 to >5 to
100 100
lakhs 1 0.00 1.00 lakhs 1 0.50 0.50
plus
S.T. plus
* S.T.* 50%
Additional applicable Service Additional applicable Service Tax also
Tax also to be levied to be levied
137 1% Interest
Subvention 1% Interest Subvention Scheme of Govt. of Karnataka for Short
Scheme of Govt. of Term Crop Loan upto Rs.100000/ to the prompt paying farmers.
Karnataka for

Short Term Crop 1. The Interest Subvention is available for Short Term Crop Loans with limit
Loan upto upto
Rs.100000/ to the Rs.1,00,000/- and only for the individual farmers.
prompt paying 2. Loans sanctioned and disbursed on or after 01.04.2013 & upto
farmers. 31.03.2014 are only
eligible for subvention.
3. The interest subsidy will be available only for those loans that are repaid
on or before the
due date.
144 Rajiv Rinn Please refer HOC 14029 dated 06.02.2014, wherein detailed guidelines
Yojana issued by the Ministry of Housing & Urban Poverty Alleviation, Government
of India is furnished.
One of the conditions is to obtain income certificate to ascertain the
eligibility of the borrower. The income certificate is to be issued by State
Government officials.
The Indian Bank Association vide their letter No.SB/CIR/RRY/9237 dated

11.04.2014 has informed that the following State/ UT have notified the
competent authority for issuing income certificate under the Scheme.
146 Proper records In the recently held meeting of Preventive Vigilance measures, it is
are to be observed that the level of compliance on the captioned subject has not
maintained at improved at the field level.
the branches Hence, it is reiterated that, immediately on receipt of information of loss of
regarding Demand Draft from the customer, the particulars of DD, on which caution is
Demand Drafts required to be exercised by the paying branch, should be entered in the
reported lost system duly authenticated by the concerned officer.
148 V-Wheels should In terms of the scheme guidelines of V-Wheels scheme, the loan can be
be classified under extended to agriculturists, Micro & Small Enterprises - Manufacturing and
Priority or Non- Services like Traders, Professional & Self Employed persons, and Small
Priority with Business units for purchase of vehicles for using in their respective activities
proper sub-sectors i.e., agriculture / MSE activity – Manufacturing or Services like Trade,
based on purpose profession, business activity.
of
advance It is observed that though such vehicles are used for the activity /
profession/trade / business by the applicants, the branches are not clearly
mentioning the purpose of the loan in the loan application. The branches
are, therefore, advised to obtain the purpose of loan clearly in the
application form by indicating that the vehicle being purchased is for the
purpose of agricultural activity / MSE activity/ profession / Trade / carried
out by the applicant. Accordingly, such loans can be classified as Priority
Sector advances under the respective sub segments of Priority Sector as
Agriculture or Micro & Small Enterprises-
Manufacturing or Services like Retail Trade, Small Business, Professional &
Small
Employed persons etc., by feeding in appropriate codes in the CBS system.
EDP TRAINING for As per HO Circular Letter no 14103 dated 29.03.2014 wherein the field

149 PMEGP Borrowers. functionaries were informed about the withdrawal of the
Exemption/Relaxation provided by Govt of India with regard to mandatory
completion of EDP training within 12 months of the release of first
installment of loan under PMEGP scheme.
The above guidelines now applies only for Loans Sanctioned after 1-4-2014
onwards:
The beneficiary shall have to undergo EDP training before release of first
installment of loan.
*However, if the beneficiary has already undergone such training of at least

2 weeks duration, either with the training centre of KVIC/KVIB /State DICs
or the Institutions recognized by or under the administrative control of
Ministry of MSME or at any other training centre of repute, such beneficiary
need not undergo further EDP training.
For loans sanctioned before 1-4-2014 –

The beneficiary shall complete the EDP training within 12 months from
the date of release of first installment of loan.
153 Reiteration with regard to mandatory information to be displayed in Notice

Boards
in all branches, as suggested by the Banking Codes and Standards Board of
India
(BCSBI).
162 New interest relief In view of the difficulties expressed by various Banks regarding submission
scheme for of Income Certificate of earlier year, the Ministry of Finance, Government of
Education Loans India vide its letter dated 12.05.2014 has clarified regarding proof of
availed up to income as under:
31.03.2009 and
outstanding as on “- The income declared in the loan application by the student/parent at the
31.12.2013 time of loan sanction may be accepted for deciding on the eligibility under
the scheme. - In case the same is not declared in the application, the
student has to submit Income certificate from the appropriate authorities
already identified under existing CSIS scheme.”
Further, along with the Affidavit stipulated vide our HOC 14063 dated
17.03.2014, branches are also advised to get the Agreement (Annexure-I)
executed from the beneficiaries under the scheme.
164 Extension of time

for claiming/settle In terms of the communication No. PMEGP/MINISTRY CORRE/2014-15
ment of Margin dated
Money subsidy up 23.04.2015 by Deputy Chief Executive Officer, KVIC, Mumbai, Ministry of
to 30.05.2014 in Micro,
respect of projects Small & Medium Enterprises (MSME) has approved extension of time for 2
sanctioned up to months
31.03.2014 under i.e up to 30.05.2014 for claiming/settlement of Margin Money subsidy in
PMEGP. respect of

the projects/loans sanctioned under PMEGP up to 31.03.2014 (2013-14).
167 Procedural guidelines formulated by the ICAI for lodging complaints against
delinquent Chartered Accountants who are involved in any mal practice.
168 Agri Clinics and i.AgriClinics:

Agribusiness Agri-Clinics are envisaged to provide expert advice and services to farmers
Centers (ACABC) – on various technologies including soil health, cropping practices, plant
Continuation of the protection, crop insurance, post harvest technology and clinical services for
Scheme for the animals, feed and fodder management, prices of various crops in the
Financial Year market etc. which would enhance productivity of crops/animals and ensure
2014-15 increased income to farmers.
ii. Agribusiness Centres:
Agri-Business Centres are commercial units of agri-ventures established by
trained
agriculture professionals. Such ventures may include maintenance and
custom
hiring of farm equipment, sale of inputs and other services in agriculture
and allied
areas, including post harvest management and market linkages for income
generation and entrepreneurship development
Any other activity in agriculture, horticulture, sericulture, animal

husbandry, fisheries, allied sectors or combination of two or more of the
above activities selected by the candidates, which, generate income to the
agri preneur and render extension services to the farmers will also be
eligible under the Scheme.
Project cost & coverage:

Ceiling of project cost for subsidy has been enhanced to Rs. 20 lakh for an
individual project (Rs. 25 lakh in case of extremely successful individual
projects -Such cases are to be approved by the Empowered Steering
Committee) and to Rs.100 lakh for a group project (established by a group
comprising at least five trained persons under the Scheme, out of which
one could be from Management background).
The participating bank(s) would extend bank loan as per the Total Financial
Outlay
(TFO), which would includes fixed capital cost and working capital for one
operating
cycle. Loan sanctioned will be the differential amount between TFO and
margin
money. At least 10% value of the TFO of the project should be in capital
form.
Margin Money (Down Payment), Security and Rate of Interest: No

Margin and Collateral Security should be insisted for loans upto Rs. 5 lakh.
For
loans above Rs. 5 lakh, margin to the extent of 15% to 25% of Project Cost
should
be maintained, depending upon purpose and quantum of loan.

Repayment:
The repayment schedule will be drawn on the total amount of the loan
(including
subsidy) in such a way that the subsidy amount is adjusted after liquidation
of net
bank loan (excluding subsidy). The period of loan will vary from 5 years to
10 years
depending on the activity with maximum gestation period of 2 years based
on
income generation out the project financed.
Selection of borrowers:
National Institute of Agricultural Extension Management (MANAGE),
Hyderabad will
be responsible for providing training to eligible candidates, through Nodal
Training
Institutes (NTIs) and motivating them for setting up of Agri- Clinics and
Agri-
Business Centres.
Classification of advances:
Loans granted under the scheme are to be classified under Indirect
Agriculture/
Priority Sector.
169 Revised format for Format for submission of Claims - Relief on interest outstanding component
submission of as on 31.12.2013 for all Educational Loans sanctioned / availed up to
Claims under 31.03.2009 & outstanding as on 31.12.2013.
New CSIS for
Education Loan.
As per RBI‘s revised guidelines on rehabilitation of sick MSE units , an
175 CGTMSE Claims- account can be treated as sick if it remains NPA for more than 3 months.
Restructured On finding it viable, banks have to rehabilitate such units. Since the entire
accounts- process of identification of such MSE units/assessing the viability for
Relaxations in consideration of rehabilitation as per RBI‘s revised guidelines is going to
guidelines take time and the unit may not get ‗ Standard Status‘ within the claim
period stipulated under Credit Guarantee Scheme by CGTMSE; the Indian
Banks‘ Association(IBA) has requested CGTMSE for exclusion of the period
a unit is under rehabilitation from the time for invocation of guarantee by
banks under Credit Guarantee Scheme.
In view of this, CGTMSE has relaxed the guidelines for lodgement of claims
by banks as under:
To exclude the time period from the identification of the MSE unit as sick
through rehabilitation process and till the unit is subsequently found non-
viable for invocation of guarantee and the assumed NPA date for claim
purposes would now be taken as the date when the unit is subsequently
found non-viable; all other guidelines remaining unchanged. The assumed
NPA date may be marked in the CGTMSE software system by the banks and
while lodging the claim, the Declaration-Cum-Undertaking must clearly

mention that the proposal was covered under the „RBI

Rehabilitation Guidelines for Sick Micro and
Small Enterprises‟ dated November 01, 2012 and indicate the actual
NPA date.
Rajiv Rinn Housing Loan to economically weaker section and Low income group - 5%
178 Yojana – Interest subsidy for a maximum loan amount of Rs.5 Lakhs.
Operational
Guidelines India has circulated the operational Guidelines for Rajiv Rinn Yojana giving
detailed guidelines of the scheme effective implemented with effect from
01.10.2013.
A Copy of the same is attached as annexure.
GL Code and Scheme code under which the loans sanctioned under
„Rajiv Rinn Yojana‟ should be opened is furnished here below:
GL Code 44725
Scheme Code ML 832
Important Classification codes to be chosen under „V‟ option are

furnished below.
Description Codes
Sector Code SEC01
Type of advance LN725
Guarantee cover Code GUA02
Nature of Advance PRI07
The loans sanctioned under the scheme should be compulsorily-
 Collateral free (other than the primary security of land and

building/flat) and no 3rd party guarantee need to be obtained.
 Covered under Credit Risk Guarantee Fund for Low Income Group
RAJIV The Ministry of Housing and Urban Poverty Alleviation (MoHUPA),

RINN YOJANA Government of India has designed an Interest Subsidy Scheme for Housing
SCHEME titled Rajiv Rinn Yojana (or Rajiv Loan Scheme), as an instrument to
DETAILS: address the housing needs of the Economically Weaker Sections (EWS) and
Low Income Groups (LIG) segments in urban areas, through enhanced
credit flow. It is also formulated to channelize institutional credit to the
poorer segments of the society and increasing home ownership in the
country along with addressing housing shortage. Rajiv Rinn Yojana (RRY,
the Scheme) has been formulated by modifying the Interest Subsidy
Scheme for Housing the Urban Poor (ISHUP) piloted in the 11th Plan period
with enhanced scope and coverage. RRY is a Central Sector Scheme
applicable in all the urban areas of the Country.
RRY provides for interest subsidy of 5% (500 basis points) on loans granted
to the Economically Weaker Section (EWS) and Low Income Group (LIG)
categories to construct their houses or extend the existing ones. Upper limit
of the loan is Rs 5 lakh for EWS and 8 lakh for LIG.Interest subsidy would,
however, be limited to the first Rs 5 lakh of the loan amount, in case the

loan exceeds this amount. National Housing Bank (NHB) and Housing and
Urban Development Corporation (HUDCO) have been designated as Central
Nodal Agencies (CNA) for the Scheme.
Rajiv Rinn Yojana is effective from October 1, 2013
The beneficiaries, designated as Below Poverty Line (BPL), Economically

Weaker Section (EWS) or Low Income Group (LIG) may directly approach
the Banks/Housing Finance Corporations collectively called Primary Lending
Institution (PLI) for availing the benefit under the Scheme.
Income Certificate
For identification of eligible BPL/EWS/LIG borrowers, any of the following
documents can be accepted by the PLI
 Income Certificate issued by the competent authority as notified by
the respective State Government is sufficient and no other
documents shall be required.
 The notified competent authorities will be circulated by CNAs to the
PLIs and will be available in the Ministry of Housing and Urban
Poverty Alleviation web page on RRY
http://mhupa.gov.in/RRY/RRY_Page.htm
 Self- declaration along with income certificate to be submitted.
 BPL Card issued by the respective State Governments in case of BPL
beneficiary is sufficient and income certificate is not required. BPL
Card with self-declaration is sufficient.
 The Banks may or may not insist on PAN Card, IT Returns/Form 16
and/or other forms of documentary evidences of income proof and
consider income certificate issued by the competent authority as a
conclusive proof of income.
 Personal Assets and Liabilities statement (optional) as per bank‘s
own requirement.
 However Bank may follow their own assessment norms for
identification and documentation of income for EWS/LIG borrowers
and undertake their own due diligence with regard to the
assessment of creditworthiness and the repayment capabilities of
potential beneficiaries under RRY without credit history (generally
the ultra-poor)
 The PLIs may devise their own criteria for assessment/appraisal.
Location of Land
and on which the proposed loan is being availed should be located in
urban areas as defined as statutory towns, urban agglomerations and or
planning areas.
Income Limits
The borrowers under the scheme must belong to either BPL or EWS or LIG
as defined hereunder:
 Below Poverty Line (BPL) is a person holding a BPL card issued

by the State Government

 Economically Weaker Section (EWS) is defined as household

having an average annual income up to Rs. 1,00,000/-
 Low Income Group (LIG) is defined as household having an
average annual income between Rs.1,00,001/- and up to
Rs.2,00,000/-.
The definitions of the EWS and LIG are subject to revision by the Steering
Committee of the Scheme from time to time.
Size of Dwelling Units :

The minimum size of the dwelling unit for EWS is 21 sq.m.ofcarpet area
and that of LIG is 28 sq.m.of carpet area. The maximum size of the
dwelling unit in either case is 60 sq.m.
Area of the plot

The area of the plot on which the proposed house is being
constructed/builtcannot exceed 100 sq.m.in case purchased by
applicant/beneficiary. However the restriction shall not be applicable in case
of
the land ―patta‖ allocated by the respective State Government and or
property on which the house is proposed to be constructed is ancestral
property as inherited and presently in the name of the beneficiary
Loan limits
al, maximum loan amount admissible is
Rs.5,00,000
Rs.8,00,000. However, subsidy will be given for loan amount up to Rs. 5

lakhs only. Additional loan amount between Rs 5 lakh and 8 lakh, if taken
would be at unsubsidized rates.
Tenure:
-20 years
Security
tgage of the dwelling unit may be accepted as primary security.
guarantee for loans
under RRY up to Rs.5 lakhs.
Trust for Low Income Housing as per its applicable norms
Rate of Interest and Interest Subsidy

e fixed by the lending banks keeping
in view the RBI guidelines issued from time to time.
ing rates.
by banks/HFCs, if fixed rate loans are extended which will be subject to

reset after a minimum period of 5 years.
floating rate of
interest with the borrower

dy
from GoI
Interest subsidy due to the PLIs will be calculated based on the outstanding
amount at the end of each month and the last day of the month as per the
calculator provided by MoHUPA/CNA.
183 EDUCATION EDUCATION LOAN CAMPAIGN - 02 JUNE 2014 TO 31 AUGUST 2014.

LOAN CAMPAIGN All types of education loans - IBA Model Scheme, Management Quota,
- 02 JUNE 2014 Premier Institutions., Vocational Education & Training Courses.
TO 31 AUGUST
2014 MINIMUM NUMBER OF A/CS AND AMOUNT TO BE CANVASSED TO
BEELIGIBLE FOR INCENTIVE:
Rural – 20 (100 lakhs), SemiUrban-30 (150 lakhs) Urban/Metro-40 (200
lakhs)
ALL India Topper - Memento worth Rs.5000/-. Certificate signedby the
Chairman& ManagingDirector
REGIONAL TOPPER-Memento worth Rs.2500/-. Certificate signed by the
Executive Director
193 (DEDS) Continuation of the Dairy Entrepreneurship Development Scheme (DEDS)

for the FY 2014-15:
198 Ready Reckoner on documentation
208 Capital The scheme has since been extended by the Government of India
Investment for the Financial year 2014-15 also in the existing pattern for :
subsidy scheme 1. Fruit and Vegetable Market waste Compost.
for 2. Bio-fertilizers and Bio pesticides production units
commercial
Production units As per the existing operational guidelines, units under Bio-fertilizers and
of Organic Biopesticides
Inputs production will be eligible for a subsidy of 25% of capital cost of the
under National project subject to a ceiling of Rs. 40.00 lakh per unit. Fruit and Vegetable
Project on Waste
Organic Farming compost unit will be eligible for a subsidy of 33% of the capital cost subject
to a
ceiling of Rs. 63.00 lakh per unit.
209 Insurance Coverage on Bank Assets – for the year 2014-15.
Insurance coverage obtained for Bank‘s assets - Details like Types of

Policies, Risks covered, Description of Assets Extent of Coverage, etc.
210 SCHEME OF INCENTIVES & PENALTIES FOR BANK BRANCHES
BASED ON PEFORMANCE IN RENDERING CUSTOMER SERVICE
TO THE MEMBERS OF PUBLIC.
214 MASTER CIRCULAR ON GOVERNMENT BUSINESS:
226 Central Scheme to
provide Interest Additional clause to be added in Sanction Communication (2-140) about the
Subsidy on details of CSIS
Education Loans Scheme.
availed by
students from Please note that interest subsidy shall be claimed by the Bank only after
Economically submission of documents as stated above and as such you are requested to
Weaker Section expedite the matter to avoid any loss of claim on account of delay in

submission of required documents.‘
Sanction Communication(2-140) along with annexure as specified above

should be delivered to the student borrower against acknowledgement.
Once the above documents are submitted by the eligible students, an
acknowledgement for having received the same should be issued to them.
Further, there is NO need for the student to submit Income Certificate and
execute Agreement every year and the branch should ensure submission of
interest subsidy claims periodically as and when the portal is opened and
advised by H.O, till the completion of moratorium period.
227 Education Loan under IBA Model Education Loan scheme availed by the
wards of our staff is also eligible for interest subsidy under Central Scheme
of Interest Subsidy on Education Loans (CSIS Scheme), subject to
fulfillment of terms and conditions under the scheme.
In this regard, we clarify that the benefit of the scheme would be

applicable to all the students, including children of our staff
belonging to economically weaker sections with an annual gross
parental/family income with upper limit of Rs.4.50 lacs per year
(from all sources) subject to fulfilling other terms and conditions of
the scheme.
230 Our Bank has implemented online filing and tracking of loan applications
received
under Agriculture, Education, MSME, Housing, Personal and Vehicle Loans
during
2013 to bring greater transparency in processing of loan proposals which
allows
tracking the disposal of loan applications.
As you are aware, the customers can apply online for any type of
Agriculture,
Education, MSME, Housing, Personal and Vehicle credit by logging on to our
website
www.vijayabank.com. The system also allows the branches to register the
applications received in physical form in this portal. After filing online, the
system
will generate a reference number which has to be provided to the customer
for his
reference and tracking. Branch/Regional Office/Head Office can track the
status of
the application by using this reference number.
All the Field level functionaries are once again advised to ensure online
filing of loan applications and updating the status which would facilitate the
applicants to track and ascertain the status.
237 Please refer HOC 14063 dated 17.03.2014 wherein detailed guidelines of
Central

Scheme for Interest Subsidy (CSIS) to provide interest relief for all
Educational
Loans availed up to 31.03.2009 & outstanding as on 31.12.2013 have been
communicated.
Now, the Ministry of Finance, Department of Financial Services,
Government of
India, vide their letter No. F.No.06(02)/2014-CP dated 15.07.2014 has
advised
further extension of the Scheme for a further period up to 31.08.2014.
242 1. Creation of new New interest table code ‗AGJ01‘ has been created for jewel loans
interest table code granted for crop production eligible for interest subvention,
for disbursed from 17.03.2014 onwards.
jewel loans The branch has to select AGJ01 interest table code by going to
granted for crop INTTM Menu and press “down arrow”.
production Illustration: Jewel Loan with sanctioned limit Rs.5,20,000/-
purposes eligible Loan Amount Time period Rate of Interest Relevant
for interest Interest
subvention, codes
disbursed from Up to Rs. 3,00,000 1st year 7.00% AGJ01
17.03.2014 For loan amount 1st year BR+1.80
onwards . above Rs. 3,00,000/-
2. Modification in For entire loan amount 2nd year onwards BR+1.80 BR180
the existing
interest table A. Jewel loans sanctioned for agricultural purposes OTHER THAN crop
codes for VKC/VPC production purposes not eligible for interest subvention:
loans disbursed
from Branches should select the following interest table codes for jewel
08.01.2014 loans which are given for agricultural purposes other than crop
onwards. production purpose, disbursed from 17.03.2014 onwards:
Sanction limit Rate of Interest Interest Table
code
Up to Rs. 2,00,000 BR+0.25 BR025
Rs. 2,00,001 – Rs. 5,00,000 BR+0.55 BR055
Above Rs. 5,00,000 BR+1.80 BR180
II.VKC/VPC loans :
Illustration 1:
Sanctioned limit is Rs.2,20,000/-. Interest subvention eligible
component: Rs1,50,000/-.
Branch has to select AV150 interest table code. System will
automatically select V2150
Loan Amount Time Rate of Relevant

period Interest Interest table
codes
Up to Rs.1.50 1st year 7.00% AV150
lakh
For loan 1st year BR+2.05

amount above
Rs. 1.50 lakh
For entire loan 2nd year BR+2.05 CPV03
amount onwards
Illustration 2:
Sanctioned limit is Rs.50,000/-. Interest subvention eligible
component: Rs.40,000/-.
Branch has to select AV040 interest table code. In this case,
system will retain the same interest table code.
With the above process, for the 1st year, system will charge 7%
interest for loan amount upto Rs. 40,000 in the first year of the
loan and applicable slab wise RoI for the amount above Rs.40,000.
For 2nd year onwards, the system will pick up the slab wise
applicable RoI interest based on the sanctioned limit.
Loan Amount Time Rate of Relevant
period Interest Interest table
codes
Up to Rs.40,000 1st year 7.00% AV040
For loan amount 1st year BR+0.55
above Rs. 40,000
For entire loan 2nd year BR+0.55 CPV01
amount onwards
251 Branches are advised to collect Mobile phone numbers/e-mail Ids duly
supported
by signed mandate from the account holders to receive SMS alerts.
The
mobile phone numbers should be updated in the respective accounts
immediately,
through a menu option ―SMSREG‖, so that the customers can receive SMS
/e-mail
alerts.
253 Implementation of Mentoring Pilot Project as a part of succession planning

to ensure a better future for the Bank and its employees.
255 Reserve Bank of India has directed that the facility of exchange of
cut/mutilated banknotes, in addition to soiled notes and issue of good
quality clean banknotes/coins, should be made available at all bank
branches to members of public without any discrimination on all working
days.
258 Ministry of MSME, Government of India has informed that PMEGP scheme
will be
continued as per the existing guidelines without any modifications during
the year
2014-15.
259 In Senior Citizen Savings Scheme Rules, 2004, after sub-rule 3 of rule8, the
following shall be inserted, namely:–
―Provided that in the case of a joint account, or where the spouse is the

sole nominee, the spouse may continue the account on the same terms and
conditions as specified
under these rules:
Provided further that in case the spouse does not continue the joint
account, the account shall be closed on an application in Form-F and the
deposit should be refunded alongwith
interest as above‖
Interest shall be payable from the date of deposit to 31st March/30th,June/

30th, Sept/ 31st
December on 1st working day of April/July/October/January as the case
may be.
Every individual desirous of subscribing to fund under the scheme for the
first time either on his own or on behalf of a minor of whom he is the
guardian shall apply to the Accounts Office in Form A, together with the
amount of intial subscription which shall be minimum of Rs 100/-.
266 Verification of title deeds and its registration with Sub-Registrar

Office by the panel advocate made mandatory.
273 Reserve Bank of India vide letter No. DGBA.CCD.No.867/15.02.005/2014-

15 dated August 22, 2014 has informed that Government of India vide
Notification G.S.R.588(E) dated August 13, 2014, has enhanced the
individual subscription limit under Public Provident Fund Scheme, 1968
from existing `1,00,000 to ` 1,50,000 in a financial year.
274 Not to discuss internal procedures with the Outsiders.
275 Mandatory Attention of all field functionaries is drawn to HO Circular No.13188 dated
capturing of 20.06.2013 on Know Your Customer (KYC) norms / AML/PMLA norms,
REASON for wherein it has been advised that when a Current / SB Bank account is
closure of closed, the reasons for such closure should be invariably furnished.
Bank accounts in
the system as per Necessary software customisation in the Finacle has also been effected with
KYC/ AML/ the introduction of a mandatory field to enter the reasons for account
PMLA norms closure of any Current / SB accounts. This has been made a pre-requisite
for account closure in view of the RBI guidelines on KYC/AML/PMLA norms
to be mandatorily followed by the Banks.
276 We, therefore, once again emphasize below the procedure / norms to be
followed while
issuing Demand Draft/ funds Remittance, in case of both existing and walk-
incustomers:
a. In case of transactions carried out by a non-account based customer,
i.e., a walk-in
customer, where the amount of transaction is equal to or exceeds
Rs.50,000/- (Rupees fifty thousand only), whether conducted as a single
transaction or several transactions that appear to be connected, the
customer's identity and address should be verified.
b. If a customer is intentionally structuring a transaction into a

series oftransactions below the threshold of Rs.50,000/- the branch

should verify the identity and address of the customer and also
consider filing a Suspicious Transaction Report (STR) to FIU- IND.
c. Any mode of remittance including DDs for Rs.50,000/- and above should
be made through banking channel and not in cash.
d. The name of the purchaser / remitter should be mandatorily incorporated

while issuing DDs / funds remittance in respect of all customers.
e. The purpose of DD/ funds remittance should be ascertained by the

branch while accepting the request for issue of DD. Branches are advised to
ensure that the columns ‗Purpose‘ and ‗Remitter‘ (purchaser‘s name) are
entered by the applicant in the application without fail (Remittance
Application Form No. 2-51).
f. In terms of Clause (b) (ii) of sub-Rule (1) of Rule 9 of the PML Rules,
2005 branch and financial institutions are required to verify the identity of
the customers for all international money transfer operations.
JEWEL LOAN :
278 REVISION OF – Jewel Loan application-cum-pledge form is revised to include certain
APPLICATIONCUM- additional clauses.
LETTER OF
PLEDGE(DOC-6)
279 ASF/AGF in lieu of ASF shall be paid to CGTMSE within 60days from the
date of demand by CGTMSE even if thereby the last date of payment of
ASF/AGF goes beyond May 31 of that particular FY.
288 PRADHAN Department of Financial Services, MoF, Government of India, vide their
MANTRI JAN- letter No. F.No.1/9/2014-FI dated 15.09.2014 have issued following
DHAN YOJANA clarification on the coverage of existing accounts under the scheme.
(PMJDY) -
Coverage of The following facilities as available in the accounts opened under PMJDY
existing would also be applicable to existing accounts subject to submission
accounts under of an application by the account holder to the concerned bank
PMJDY. branch.
1. RuPay Debit card having inbuilt accident insurance cover of Rs. 1 lakh.
2. Overdraft facility of Rs. 5000/- after satisfactory operations in the
account for six months. This may be extended to only one member,
preferably lady of a house-hold.
All the field functionaries are advised to bring the same to the notice of the
existing account holders and issue RuPay cards if they are desirous of
availing the benefit under the PMJDY. The existing customers may
therefore be advised that there is no need to open a new Savings
Bank account for getting the benefits under PMJDY.
289 National Rural Now, Department of Financial Services, MoF, Government of India, vide
Livelihood Mission their letter No.F No. 12/21/14-CP dated 05.09.2014 have informed that

(NRLM) - during the debate in Lok Sabha, members raised the issue of non
Compulsory participation of the Bankers in the meetings of Sub-committee on NRLM
participation in conducted by DCC. NLRM programme is directed towards the SHGs to
meetings achieve the goal of self employment in the rural areas particularly among
conducted at women for their empowerment. During subcommittee meetings on NLRM
Block/District/Stat various issues would be discussed so as to extend hassle free credit to
e level. SHGs. Non participation of the Bankers in the Subcommittee meeting on
NRLM conducted by DCC will defeat the very purpose of the meeting.
292 „The Indian „The Indian Banker‟ a monthly journal from IBA is now made available in
Banker‟ a VGyan Kendra. The magazine is a useful resource for knowledge for
monthly journal bankers as it discuss the topics related to Banking and financial industry.
from IBA The magazine will be updated on a monthly basis in V-Gyan Kendra before
is now available 10th of every month.
in V-Gyan The link for accessing the magazine is provided on the right corner of the
Kendra VGyanKendra in the name „Monthly Journal from IBA‟.
293 New Products offered to augment / scaling up of business with technology

are:
1. V-Online : Anytime, anywhere…at ease V-Online SB a/c opening
provides option in our website ‗WWW.VIJAYABANK.COM‘ for the customer
to choose account opening at
his/her place of choice and at his convenience. Customer will fill the
necessary details and choose his/her base branch and fixes the
appointment at his convenience to visit the branch. Branch receives an
automated mail with regard to the customer‘s request; branch will call the
customer and informs the required documents and procedures. Customer
will visit the branch on his / her chosen date and submits the necessary
documents and opens the
account.
2. V-Gyansagar : Financial Gyan in your mobile

The Financial, Economic and Banking terms are not easily understood by
the common man. Banks have already put in place well planned financial
literacy centers at various locations. But V-Gyansagar is an unique attempt
by Vijaya Bank to impartfinancial information to the public as part of
financial literacy.
V-Gyansagar is an Android mobile application which provides the subscriber

a facility for getting daily updates on Financial, Economic and Banking news
and also explanation of Financial and Banking terms.
3. V-QuickPay : A Quick Route to Pay

V-QuickPay is an unique initiative of DIT and is the next generation bill
payment service where the Bill payment is made by scanning of QR code.
All that the customer has to do is to scan the QR code on the Bill generated
by the merchant who has availed this facility from us, and proceed with the
payment of the bill without having to the swipe the Credit/Debit card on the
POS machines.It facilitates Payment by way of Credit and Debit Cards and
also net banking of any Bank. This product introduces a new bill payment
channel, hitherto not provided by any Bank in the Indian Banking Industry.

Following IT Products released by bank have been upgraded with new

features and the related versions are being released as on Sep 22,2014.
4. V-ePassBook+ 2.0 : Your wish list granted V-ePassBook+was

introduced almost a year back. V-ePassBook+ was more than an Account
Passbook in its initialversion itself.Its richness in features have been
enhanced by adding facility to reset of password online, maintain financial
calendar, locate our branch/ATMs, display details in Hindi/Kannada
languages etc. in this version.
5. NUUP : Any mobile is the right mobile.

Mobile Banking services were introduced by the bank in the year 2009.
However availing even some of the basic banking services provided through
Mobile Banking was beyond the reach of the people who did not possess a
high end handset. Now NPCI‘sUnstructured Supplementary Services Data –
USSD( NUUP) offered by Telcos has been exploited by the bank to give
Basic mobile banking services even on a basic mobile phone, making mobile
banking accessible to practically all customers.
6. V-Mobile 2.0 : Banking, further simplified

V-Mobile is a Mobile banking application from Vijaya Bank which lets the
customers do many of their Banking activities, using their smart phones.
Now we have launched new version for it with enhanced look and feel, and
additional features like facility for customers to receive push notifications
from the Bank, add remarks to fund transfer transactions they do, to
generate application password by themselves, and a host of other options.
Duty of Assistant Branch Manager as Lobby Manager at Very large/

Exceptionally large / Special Branches
295 Guidelines on V - Type of Accounts offered
Online SB SB Domestic
Account SB NRO
SB NRE
The customer shall give minimum details on the website through the link
provided on our official website. The customer shall select the branch where
he / she need to open the account. The customer shall visit the branch as
per the appointment date chosen by them to submit KYC documents and to
complete the Account Opening formalities.
Step 1: Providing information through our website by the customer
Step 2: Submission of the form
Step 3: Email / I-Net communications to the customer / Branch
/Regional Office / Branch Service Centre at HO. - On receiving this
mail details, the concerned branch manager should contact the
customer immediately to acknowledge and confirm the appointment
details given by the customer.
300 EXTERNAL RBI has informed that certain instances where external auditors of the Bank
AUDITORS OF THE have directly engaged with customers / borrowers of banks and alleged to
BANK SHOULD have sought favours have come to their notice. RBI has viewed this matter
NOT BE very seriously and advised to ensure that external auditors of the Bank are

PERMITTED / not permitted / facilitated to have direct discussions with the customers /
FACILITATED TO borrowers.
HAVE DIRECT
DISCUSSIONS
WITH THE
CUSTOMERS
/ BORROWERS
316 Duty of Assistant

Branch Manager as Our Bank has already put in place a system for Lobby Manager vide HOC
Lobby No. 14113 dated 15.05.2014 wherein it was directed that all the Branch
Manager at Very Managers should act as a Lobby Managers in the branches.
large/ This will take care of the above direction of the standing committee on
Exceptionally large customer service. However it has been informed that the Branch Heads of
/ Special Very Large, Exceptionally Large and Special Branches have to deal more
Branches with HNI customers, big corporate loan proposals etc, which requires
special focus and hence will find it difficult to perform the role of Lobby
Manager. Hence it has now been decided to nominate the Assistant Branch
Manager of these branches as Lobby Manager.
321 Vijaya Kisan Card In the recent past, we have come across with few instances of fraud in the
Scheme (VKC)- VKC loan
Remedial accounts. While perusing the remedial measures in respect of causative
measures/ factors for
guidelines to prevention of frauds, the Board of Directors in their meeting held on
prevent 21.07.2014 have
perpetration of directed to reiterate the following guidelines in order to prevent
frauds. perpetration of frauds in
VKC loans:
1. Before sanctioning of loans against the security of the landed property

the branch should invariably obtain Legal Scrutiny Report (LSR) from the
empanelled advocate wherever landed properties is taken as collateral
security. While handing over the land documents / title deeds to the Panel
Advocates of the Bank for scrutiny/obtaining LSR, branch should not hand it
over to the Lawyer through the party. Instead the documents should be
directly handed over by the branch officials to the Lawyer.
2. Valuation reports and reports relating to property inspection conducted

by Branch officials should contain the description of the property with
boundaries, route map and landmark description preferably with
photographs.
3. Branches should verify the list of depanelled advocates and exercise due
caution at the time of seeking legal opinion from the empanelled advocates.
4. No Objection certificate (NOC) is to be obtained from other local Banks

so as to prevent the unscrupulous borrower availing loans from other Banks
against the same property.
5. Branches are required to obtain valuation report of the property at the

time of sanction of loans, as per the extant guidelines (HOC 33/90).

6. Branch should obtain non encumbrance certificate periodically even after

release of loan so as to ensure that the borrower has not availed any other
loan giving the same property as security by creating second charge.
7. The Branch has to ensure that the Bank‘s charge on the mortgaged land
is noted with the records of competent Revenue Authority as per the law
prevailing in the respective States.
8. Branches should obtain all the original title deeds showing legal title of
the prospective mortgager on the property intended to be mortgaged and
get all those records/documents scrutinized by Bank‘s panel advocate. No
photocopies should be used for scrutiny. Once the original title deeds are
received from the party, it should not be parted by the Bank till the
liquidation of the liabilities against the security of the related property. Even
if they are taken out for any specific purposes, at the request of the
borrower for producing before the court, Govt. Department etc., Bank may
show them the documents through authorized officers of the branch and
under no circumstances the documents should be handed over to the
borrower directly.
9. Branch officials/Sanctioning authority should scrutinize the LSR for its

qualification, if any regarding non perusal of EC/Search report, minor
interest, stipulation to obtain additional documents etc.,
10. Branch should obtain EC for broken period i.e., from the date of
sanction till the disbursement of the loan.
11. Branch should on its own or through the Advocate apply for EC/search
report rather than advising the borrower to submit EC to avoid submission
of fabricated ECs by the fraudsters/ mortgagers.
12. LSR should be unequivocal regarding title and identity of the property
and conditional LSR should not be accepted.
13. Valuation reports submitted by the Bank‘s Panel Valuer should contain
full description of the property along with boundaries, route map and land
marks for reference.
14. Before accepting the property as security, Branch officials /Head should
personally inspect the same and identify it. The description, boundaries
etc., should match with LSR and Valuation report. They should make
discreet enquiries with the neighbors of the property and local people to
ascertain the exact details of the property. Such inspection of the property
should be independent and without being accompanied by the party.
15. All documents listed in the HOC 12241 dated 13.11.2012 should be
obtained and all the columns in the documents should be filled up properly.
16. Branch has to ensure that Post sanction and pre-harvest inspections are
conducted and inspection reports are held on records. Branch should ensure
proper follow up and prompt review / renewal by explaining the interest
subvention benefit available to the farmers.

336 SINGLE Window Operator Duties highlighted
338 Extension of ‗Grand Vijaya Housing & Vehicle Loan Carnival‘ up to 31st
March 2015.
Waiver of :
Processing Inspection and Documentation charges. Concessions shall also
be valid for
loans sanctioned during the campaign period but disbursed subsequently.
In a recent case, in one of our branches, the fraud committed by one of the
339 ADVANCES Jewel Loan borrowers has come to light. The borrower has pledged gold
AGAINST GOLD bangles which were made of hollow pipe of gold with copper wire fixed
JWEELLERY/ORNA inside. This was not detectable by the Jewel Appraiser or the officers of the
MENTS- Bank. Only, when the bangles were cut open by the Police officials, it came
PRECAUTION TO to light that the jewels pledged were fake.
BE TAKEN.
Hence, it is once again emphasised that the field functionaries comply with
the applicant due diligence scrupulously by strictly complying with the KYC
norms/guidelines.
350 Interest Continuation of the Interest Subvention Scheme by Central Government

Subvention during the year 2014-15 and monitoring of end use of funds.
Scheme on short
term crop loans- Please refer to HOC No: 14053 dated 07.03.2014, wherein the guidelines
Monitoring of end on 2% interest subvention scheme for crop loans up to Rs.3.00 lakhs
use of crop loans extended to farmers at7% interest and 3% additional interest subvention
and adhering to as incentive for prompt repayment for the year 2014-15 have been
scale communicated. It has been reiterated by the Government that post-
of finance for disbursement inspection should be invariably conducted to ensure
Jewel loans to that all crop loans for which interest subvention is being claimed
Agriculture. are being used for stated purpose and there is no diversion of
funds.
351 Weavers Credit The field functionaries are advised to take note of the above instructions of
Card Scheme- DFS, MoF, GoI and ensure providing credit to all the viable projects of
Extending Credit to handloom sector under Weavers Credit Card (WCC) scheme, which would
Handloom sector help the Bank to boost our Priority sector lending.
under Priority
Sector.
352 RBI HAS REVISED Reserve Bank of India in a recent communication has informed that policy
EXISTING SCHEME with respect to payment of incentives for exchange of soiled and
OF INCENTIVES & adjudicated banknotes has been reviewed and following changes have been
PENALTIES IN made.
RESPECT OF
EXCHANGE & a) The incentives would be paid on the soiled notes actually received in the
DISTRIBUTION Regional Office. Banks need not submit a separate claim. Currency chest
OF BANKNOTES & branch will have to pass on the incentive to the linked branches for the
COINS TO THE soiled notes tendered by them on a pro-rata basis.

PUBLIC. b) Similarly, incentive will be paid in respect of the adjudicated notes

received along with the soiled note remittances. No separate claim is
required to be made.
c) Further, incentive towards distribution of coins would be paid on the
basis of net withdrawal from currency chest by generating the required data
at RBI‘s end. No separate claim is required to be made in this regard also.
Scheme for Pradhan Mantri Jan-Dhan Yojana (PMJDY) was Launched by the Honourable
361 incentivizing Prime Minister on 28.08.2014 with the Objective of bringing all unbanked
Bank Branches households/ families of the entire Country into banking fold by providing
under Pradhan Basic Bank accounts, Rupay Cards with Accidental/ permanent disability
Mantri Jan-Dhan coverage of 1.00 Lakh, Life Insurance coverage of Rs 30000/- and
Yojna Overdraft facility upto Rs 5000/- based on the satisfactory transactions in
(PMJDY). the account. On the eve of the launch of PMJDY, Honourable Prime Minister
had in communication to all Bank employees/ Officers sought their whole
hearted support for speedy implementation of the programme and also
announced that best performing branches will be duly recognized.
In Order to recognize best performance/ efforts made by Bank branches

under PMJDY, an Incentive Scheme has been announced by the Dept. of
Financial Services, Ministry of Finance, Govt. of India. The Salient Features
of the Scheme for Incentivizing Bank Branches under PMJDY announced by
DFS, MOF, GOI is furnished IN THIS Circular Letter:
2. OBJECTIVE: This scheme is proposed to motivate the Bankers, State

and District level officials for expeditious completion of the PMJDY before
26th January, 2015. The recognition will be done in two stages.
(i) Stage ONE: To assess the progress at MONTHLY intervals.
(ii) Stage TWO: To assess the Final Tally, towards the end of January,2015.
362 Re-launch of Seeding of consumer number in CBS for DBTL transactions :

Modified Direct
Benefit Transfer DBTL has been relaunched across the country with effect from 15/11/2014.
for LPG Consumers
(DBTL) Scheme Presently DBTL transactions will be based on Aadhaar number as well as
Account Number of the consumer. Under present DBTL scheme, customer
can either approach Oil Marketing companies [OMC] or banks for updating
account number or consumer number to receive reimbursement i.e. Direct
Benefit Transfer of LPG subsidized amount. Options available for customers
are detailed as below:
Option I
Customer will approach Oil Marketing Company [OMC], will provide the
consumer and account details along with evidence of bank account. The
customer will also give the bank statement or the bank passbook copy so
that the name is accurate. OMC then will verify the consumer data against
the bank data, if satisfied will collect the Account Number, Account Name
(as appearing in bank records), IFSC code and send to the destination
banks. Banks will match the account number and name and provide
positive or negative confirmation on the details, based on the confirmation
OMC will process the DBTL transactions. If the financial transactions are

processed by OMCs then it will be completely their responsibility that the

verification request is processed properly.
Option II
Customer will approach bank with LPG Id [consumer number] provided by
Oil Marketing Company [OMC] for updation, bank will update the consumer
number. Details provided by customer such as Consumer Number, Account
Number, Account Name, IFSC code will be shared by bank to OMCs. OMCs
will verify the consumer record, if found correct, OMCs will update their
data base and send positive confirmation. If not found correct, OMCs will
send negative confirmation, banks can communicate or to store data and
inform if the customer visits branch again for further action by the
customer.
As far as bank branches are concerned, option II in DBTL is vital. The

customer will submit Form3 at the branches; branches have to feed the
consumer numbers through Finacle Menu option Aadhaar. Following points
to be taken note at branch level while feeding the consumer number
Consumer name should match with the account name
Consumer number is 17 digit numeric for all 3 OMCs and 1st
digitindicates the OMC. OMC are identified as
S.No. Code Name LPG IdentificationCode
1 IOCL Indian Oil Corporation Ltd 3
2 BPCL Bharat Petroleum Corporation Ltd 1
3 HPCL Hindustan Petroleum Corporation Ltd 2
Using Aadhaar menu option, branch can feed the consumer number of the
customer who doesn‘t have Aadhaar number.
Consumer numbers can also be seeded through bulk options ADHRUPLD,

UPLOADSB also.
(SCREEN SHOTS ATTACHED IN THIS CIRCULAR LETTER – Annexure)
363 Guidelines for deduction of Income Tax on Salaries at source for the
Financial Year 2014-15.
371 Government of Rajiv Gandhi Loan Scholarship Scheme - Clarifications

Karnataka has a) Branch which should entertain and sanction the loan:
issued clarification The application for the loan under the scheme should be entertained and
with regard to sanctioned by a Bank branch located in the Place of Domicile or centre of
implementation of the permanent address or current working place of his/her parents. This
Rajiv Gandhi Loan helps the Bank in KYC compliance & also help in the matter of future follow
Scholarship up after completion of studies by the student.
Scheme in the
State of Karnataka b) Student from other State and studying in Karnataka :
As per the Govt guidelines, any citizen of India studying in the State of
Karnataka is eligible subject to fulfilling of the other terms and conditions.
c) Other expenses considered for the Loan :

Whatever definite and quantifiable educational expenses incidental to study
like tuition fee, books, equipments, laptop, hostel fees, study tour, uniforms
etc., could be covered under the loan as it is. As the tuition fee in case of
courses covered by this scheme is very low, there was a demand to include
maintenance expenses as a major portion of finance.

As far as maintenance expenses like food and stay expenses are concerned,
it is clarified that expenses not exceeding 50% of total annual loan amount
i.e., an amount of Rs.2,500/- per month with a maximum cap of
Rs.30,000/- per annum may be sanctioned as living expenses.
d) In case where the student fails in subsequent year or having
backlogs :
If the College grants him/her admission for the succeeding year then the
Bank may release further loan. For considering the loan under the Scheme,
admission is the criteria.
e) Steps for implementation of the Scheme :
Student should submit the application as per the prescribed
format(Annexure-1) to the Principal of the college where he/she is pursuing
studies.
The Principal, after receiving the applications, should certify the
correctness and submit the same to the concerned Lead District Manager
along with the certificate forexpenditure in the prescribed format
(Annexure-2).
The Lead District Manager should segregate the applications
Bankbranch-wise and arrange to send the applications to the respective
branches under his area.
The concerned branch of the Bank after receiving the applications,
should arrange to comply with KYC norms and take a view on sanctioning of
the loan strictly as per the terms and conditions of the scheme.
f) Banks eligible to implement the Scheme :

All the Banks who have received license from Reserve Bank of India are
eligible to sanction the said loan and claim interest subsidy.
g) Insurance coverage:
Loan to be covered under Single Premium Insurance and the amount to
considered as part of the loan amount.

GISTS OF CIRCULAR LETTER – 2015
CL NO SUBJECT SUMMARY
15008 Transparency in To ensure transparency and fairness in implementation of PMEGP
the scheme:
implementation a. Details of the service area jurisdiction of all the banks should be
of PMEGP and obtained by KVIC/KVIB/DIC and it should be ensured that the
indicating applications are forwarded to the Banks concerned with in the
Aadhaar card service area network so as to avoid the return of the applications by
number to Prime banks by citing the service area jurisdiction.
Minister‘s b. In all the meetings related to PMEGP, awareness about the online
Employment submission of the applications to be emphasized to avoid frequent
Generation intervention/visit by the applicants.
Programme c. All State/Divisional Directors of KVIC have been informed with
(PMEGP) specific directions about the adherence of the guidelines issued
applications. from time to time while dealing with PMEGP applications.
d. Specific awareness camps required to be organized for targeted
groups such as SC/ST and Minority, so as to familiarize the benefits
of the scheme.
e. Bank Branches are advised to collect the Aadhaar number of the
applicants for the loans sanctioned/ to be sanctioned under PMEGP
and incorporate in the applications and in CBS system.
15012 Remedial Procedure inrespect of ‗TDS Accounts‘ and ‗Suspense Receipt
measures for Accounts‘ for prevention of frauds:
prevention of Tax Deducted at Source(TDS)from the interest paid on various
frauds in term deposits should be remitted to the Income Tax Department
Sensitive within the time stipulated. Similarly the tax deducted from other
Accounts payments like rent etc should also be remitted to the Income Tax
Department within the time stipulated. Balance in various ‗IT
Deducted at Source A/cs‘ should be brought to nil by 7th of every
month.
Any debit /reversal to the Suspense Receipt Accounts should be
done with prior permission of the branch head only, who should
accord such permission after ensuring its authenticity.
The Branch Manager/ ABM should also scrutinize the exceptional
report on daily basis to monitor the debits in the sensitive accounts.
It is also observed that branches are resorting to reversal of TDS at
the request of the customers without complying with the provisions
of Income Tax. Such practices should be strictly avoided.
15015 Dairy Dairy Entrepreneurship Development Scheme (DEDS) – Allocation

Entrepreneurship of fund during 2014-15 - Suspension of fresh
Development applications in General Category for the FY 2014-15 w.e.f
Scheme (DEDS) 01.01.2015.
– Suspension of This decision is not applicable for SC category.
fresh
applications in

General Category
for the FY 2014-
15 w.e.f
01.01.2015
15016 Implementation Postponement of implementation of discontinuation of
of Cheque P2F. The revised date would be advised shortly.
Truncation
system –
Dispensation of
the requirement
of forwarding of
Government
Cheques in
physical form to
Government.
15019 Sharing of The guidelines issued by the Reserve Bank of India regarding
recovery under sharing of recovery under Multiple Banking Arrangement.
Multiple Banking ―The Master circular – Prudential Norms on Income Recognition,
Arrangement Asset Classification and Provisioning pertaining to Advances
requires that the banks
participating in the consortium should arrange to get their share of
recovery transferred from the lead bank or get an express consent
from the lead bank for the transfer of their share of recovery, to
ensure proper asset classification in their respective books.
Further, in terms of Reserve Bank of India circular dated February
26, 2014, on ‗Framework for Revitalising Distressed Assets in the
Economy – Guidelines on Joint Lenders‘ Forum(JLF) and Corrective
Action Plan (CAP)‘ (HOC 14096 dated
25.04.2014), if a loan account (with aggregate exposure of Rs 1000
million) is reported as SMA – 2 account, then it is obligatory for
banks to form a JLF for the purpose of putting in place CAP. When
such a JLF is formed, if an escrow maintaining bank under JLF/CDR
mechanism does not appropriate proceeds of
repayment by the borrower among the lenders as per agreed terms
resulting into down gradation of asset classification of the account
in books of other
lenders, the account with the escrow maintaining bank will attract
the asset classification which is lowest among the lending member
banks, and also
accelerated provisions. The above norms on JLF are applicable even
for loans under multiple banking arrangement. In addition, looking
at the benefits of JLF framework, lenders are expected to form JLF
even for cases having aggregate exposure less than Rs 1000
million.‖
15036 ―WITHDRAWAL RBI HAS EXTENDED THE TIME FOR EXCHANGING PRE-2005 SERIES
OF ALL OLD OF BANKNOTES TO JUNE 30, 2015
SERIES OF
BANKNOTES
ISSUED PRIOR
TO 2005‖
15059 Payment to To ensure that the service tax particulars are correctly captured in
Seizure Agents Finacle in case of payments to

Seizure Agents a separate GL Account head is created.

(‗xxxx00013542003 – Expense on NPA – Seizure Agents‘)
Branches are requested to debit the above mentioned account head
only while accounting for the payments pertaining to Seizure Agents
and enter details in the pop-up that will be displayed. Information
entered in the pop-up must be accurate and complete. Service tax
is payable only on the professional fee paid to the Agent. If any
reimbursement of expenditure is there the same should be entered
under out of pocket expenses while furnishing the nature of
expenditure
in the pop-up to enable CAD to exclude the same while discharging
the Service Tax liability.
15060 1% Interest The details of the Scheme are as follows:
Subvention 1. The Interest Subvention from GOK under the Scheme is available
Scheme of Govt. only for Short Term Crop Loans with limit up to Rs.1, 00,000/- and
of Karnataka loans beyond this limit are not eligible for subvention under the
for Short Term scheme.
Crop Loans up to 2. The scheme would be applicable only for the individual farmers,
Rs.1,00,000/ to and not for the firms/companies.
the prompt 3. The subvention from the State Govt. is available only for the
paying farmers loans promptly repaid/closed from 01.04.2014 to
for the year 31.03.2015.
2014-15. 4. The subsidy would be provided from the date of disbursement to
the due date or date of payment, whichever is earlier.
5. The interest subsidy from the State Government will be available
only for those loans that are repaid promptly on or before due date.
For the loans
repaid after the due date, no subsidy will be available.
6. Branches must indicate the actual due date for repayment in the
sanction communication for all short term crop loans covered under
the scheme without
exception.
15080 Aadhaar Mapper In order to facilitate query services on Aadhaar Mapper Database,
Services NPCI has built Aadhaar Mapper web service for Bank user‘s usage.
This is a service to raise query to know the status of customer‘s
Aadhaar number using Aadhaar Mapper database at NPCI.
https://www.payments.vijayabankonline.in/AadharLookupNACH.asp
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लिपिक से अधिकारी वर्ग श्रेणी–1 CLERK TO SCALE-I OFFICER

TYPES OF CUSTOMERS, BANKER CUSTOMER RELATIONSHIP,

a. Banking Regulation Act

3. What is the relationship between a Banker and a Customer maintaining deposit A

a. Debtor and Creditor

a. Bailer and Bailee

b. Bailee and Bailer

a. Bailer and Bailee

b. Lessor and Lessee

a. Debtor and Creditor

b. Lessor and Lessee

a. Bailer and Bailee

b. Assignee and Assignor

a. Debtor and Creditor

b. Lessor and Lessee

a. Bailer and Bailee

b. Lessor and Lessee

a. Creditor and Debtor

b. Lessor and Lessee

e. Lessee and Lessor

a. Creditor and Debtor

b. Lessor and Lessee

a. Shares given for sale - Agent and Principal

15. Clayton‘s rule applies to following type of loan accounts: E

a. Attachment order is issued by competent court and Garnishee order is

b. Attachment order is issued by government authority and Garnishee

a. Bank as Debtor and Court as Creditor

18. In the process of issuing a garnishee order court first issues: A

a. Negotiable Instruments act

a. The order would apply to this amount also

a. Bank would accede to the request as it is a secured loan

26. Who is the guardian of a Muslim Minor on death of the father: E

a. The no of partners including no of co-parceners of HUF can exceed 20

30. Which of the following statement is true: C

a. Partnership is defined u/s 4 of Indian Partnetship Act and it can be

31. U/s 30 of Indian partnership Act: D

a. A major and minor can constitute a partnership firm

a. Any of the partner dies

c. All the partners agree to dissolve

a) Yes can be permitted now

b) Yes but only at the time of renewal of deposit

d) None of the above

34. Whether fresh nomination should be insisted during renewal of deposit? B

b) No it should not be insisted as previous nomination made shall continue to be in

c) None of the above

a) We should not settle the claim in favour of the son (nominee)

b) We should settle the claim in favour of the son (nominee)

d) We should settle the claim in favour of wife of the deceased

e) None of the above

a) Yes we can sanction eligible amount as LTD to the nominee

d) All of the above

d) None of the above

b) Safe Deposit Lockers

c) Safe Custody of Articles

d) All of the above

e) None of the above

d) All of the above

e) None of the above

b) Yes we can accept the nomination in the name of the firm

c) No as facility of Nomination is not available to Partnership concerns

d) All of the above

e) None of the above

b) Arms and Ammunition Dealers