1 Quick Success Series – Remittance & Collection

QUICK SUCCESS SERIES, an initiative of SBLC

Deoghar to facilitate the preparation of
promotion seeking personnel of our Bank,
appears to have succeeded in its objective to a
large extent, as the readers are still
approaching us for its revision/updation
Quick Success despite availability of plenty of other study ma-
terials.
Series We would not have been able to sustain this
unique effort of ours, without the active
support and continuous encouragement of our
DGM cum Circle Development officer
Sri Bijayananda Padhi. We are deeply indebted
to him for his co-operation and guidance.

Sri Rakesh Roshan, Chief Manager (Training)

,Sri Kumar Priyank,Chief Manager(Training),Sri
Sanjay Kumar Sharma,Manager(Training) Jiten-
dra Kumar Arun,Manager (Training) at this
SBLC have owned up this project and have tak-
en pains to keep it relevant to the users by
updating & improving it at half yearly interval.

Though every care has been taken while

updating the contents, we request our
Remittance & Collection readers to point out any lapses at the earliest.
Needless to mention this book is not a
substitute of circular instructions issued by the
Bank from time to time. For detailed guidelines
please refer to Bank’s latest circulars. Soft
copy of this edition is available on our
ftp://10.151.51.33 in QSS folder and on SBI
TIMES>PATNA CIRCLE>SBLC Deoghar site.
Team SBLC Deoghar is humbled by the
response and recognition, it is receiving from
the readers within and beyond the circle. We
wish the readers grand success in their
endeavours.

Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895
Fax - 06432-231810
e-mail: agmstc.deoghar@sbi.co.in
Updated by Sanjay Kr. Sharma
Manager (Training),
SBLC Deoghar
Mobile- 9934435855 Updated upto 31st
email- sanjay.kr.sharma@sbi.co.in
October 2016

[Type text] Page 1

 Quick Success Series – Remittance & Collection
October 31, 2016
BANK DRAFT
(Now issued in the IOI format)
The basic features of draft and legal incidents
are the same as before
Relationship of Banker with purchaser of
Draft: Debtor & Creditor
Relationship of Banker with Payee of Draft:
Trustee & Beneficiary
Punching System- It indicates the range in
which the amount of Draft will fall
Hologram is affixed on drafts of Rs 1 lakh &
above against the Payee’s Name – To Prevent
Tampering
Drafts of Rs 50000/- and above should be
issued only by debit to customer’s A/C or
against cheque, etc.
Payment of Drafts of Rs 50000/- and above
should be made through Bank A/C and not in
cash
(To curb misuse of banking channels for
violation of fiscal laws)
 No draft advice need be sent under IOI
design
If PAN is provided cash transactions of Rs
50000/- and above are permissible
Drafts of Rs 150000/- and above should be
signed by two officials wef 1st Dec 2010
 RBI has stipulated that from April’2012
Cheques, drafts, pay orders and banker’s
cheques will only be valid for 3 months. This
has been reduced from the current 6 month
validity period. (e-Circular no. 711/2011-12
dated 09.11.2011)
A draft will be revalidated only if it is
presented within one year of its issue.
 A revalidated draft is valid for 3 months
from the date of revalidation.
 An over-due draft can be revalidated only 3
times within a year.
If presented after one year, it will not be
revalidated instead it will be cancelled and a
fresh draft issued
On receipt of Draft Security forms from CSD,
these have to be entered in the ‘Stamped &
Unstamped Forms Register’ and kept in the
joint custody of the Accountant & Manager
(Cash).
Page 2
Physical Verification of draft forms to be
done half yearly on (30.06 & 31.12)
 Draft can be issued on 3 service branches
only (Kolkata, Chennai & New Delhi)
No uncrossed DDs over Rs.20,000/- RBI has
asked banks not to issue uncrossed Bank
drafts or pay orders above Rs.20,000/-, as
these are used in lieu of cash by some
unscrupulous elements.
(e-Circular no.712/2011-12 dated 09.11.2011)
A draft should not be returned merely for
reasons such as ‘code number not furnished’,
‘branch name not given’ etc., if otherwise in
order. It must be remembered that the value
for the draft has been received by the Bank
and Bank might be embarrassed by bad
publicity; also legal action for wrongful
dishonor under NI Act might be initiated by
the payee. The customer may also file a
complaint against the Bank under Consumer
Protection Act
Where the bank is found to have committed
an error in non-payment of a
draft/remittance issued by it to a holder in
due course, the customer will be
compensated with interest at SBAR for the
number of days the instrument remains
unpaid from the date of its first presentation.
The purchaser of the draft can apply for its
cancellation any time before the draft is
delivered to the payee
Once the draft is delivered to the payee, the
purchaser loses his right to cancel the draft
When the bank sends the draft by post (at
the request of the purchaser), the delivery of
the draft to the payee is deemed to have
been completed once the draft is posted.
When there is no doubt that the draft has
not been handed over the payee, the draft
can be cancelled at the request of the
purchaser.
The purchaser should give a discharge at the
back of the draft reading ‘Received payment
by cancellation’.
 Quick Success Series – Remittance & Collection
October 31, 2016
If the amount of the draft is over Rs 5000/-
the discharge should be obtained over a
revenue stamp
When a draft is reported lost by the
purchaser the drawee branch is advised to
exercise caution in case the draft is presented
for payment and requested to confirm that
the draft has not been paid by them. On
receipt of the non-payment advice, a
duplicate draft is issued after obtaining the
stamped indemnity.
The stamped indemnity (COS 103) has to be
signed by the applicant and two sureties. Each
of the sureties should be good for the amount
and acceptable to the Bank
 Issue of duplicate IOI-Drafts:
Discontinuation of non payment advice. It has
been decided to dispense with the
requirement of receipt of Non-payment
advice from the drawee branch at the of
issuing a duplicate IOI 9draft), as the payment
status of an IOI (Draft) i.e., whether already
paid or outstanding, can be viewed in CBS by
the issuing branch. (e-Circular no.467/2013-
14 dated 06.08.2013)
Production of sureties may not be insisted
upon while obtaining indemnity for issuance
of duplicate IOI (Draft) where the amount of
IOI (Draft) is up to Rs.1,00,000/- if the appli-
cant (purchaser) of a IOI (Draft) is considered
good for the amount involved.
(e-Cir:707/2013-14 dt.25.09.2013)
The purchaser should confirm in writing that
he has not delivered the draft to the payee
The original application for draft has to be
kept along with the indemnity documents as
B.D. In case the indemnity has to be invoked
by the bank at any time, the application form
will serve as evidence of the transaction
No sureties to be insisted upon in case of
staff members. Duplicate draft may be issued
against unstamped letter of undertaking.
Duplicate draft to be issued within a
maximum period of 14 days from the date of
receipt of such request. Interest at the rate
applicable for term deposit of corresponding
maturity has to be paid for the period of delay
Page 3
(only to the purchaser or beneficiary of the
draft) in case of delay- RBI
A duplicate draft can be issued to the payee
against his indemnity if the Bank is able to
satisfy itself that the draft had been delivered
to him and that he was the holder of the draft
at the time of his loss. In fact we cannot insist
on the indemnity of the purchaser in such
cases. Concurrence of the purchaser is also
necessary. Even if the purchaser refuses to
give his consent, the legal position is that
once a draft is handed over to the payee, he
becomes the owner. Controlling Authorities
approval is required in these cases.
In case the bank remits the proceeds of bills
realized to lodgers of the bills and it is lost, an
unstamped letter of undertaking is obtained
from the lodgers and the duplicate draft is
issued. The lodgers undertake to the return
the original draft if received later (Rationale:
In such cases, bank acts as an agent of the
lodgers of the bill. The bank’s responsibilities
continues till the proceeds are received by
the lodgers)
 Before cancelling a duplicate draft, bank
should ascertain whether payee’s claim in
respect of draft has been satisfied. (Eg. A
letter of acknowledgement by the payee of
the receipt of money through alternative
means, cancellation of the contract which
establishes that the payee has no claim on the
amount, etc). In all other cases, payee’s
express consent in writing should be
obtained before payment to the purchaser.
In case of payment of the original draft by
the drawee branch when duplicate has been
cancelled, the bank has to have recourse only
to the purchaser on the strength of indemnity
executed by him
In case the original draft (reportedly lost) is
presented for payment before the duplicate is
paid, the title of the presenter has to be
ascertained carefully and the draft is paid if it
is in order
In case the lost draft is presented after the
duplicate has been paid, the draft has to be
 Quick Success Series – Remittance & Collection
October 31, 2016
returned with remarks ‘Draft reported lost,
Payee’s Endorsement requires verification’.
In case both the original & duplicate are
presented simultaneously, the duplicate is to
be paid and the original is to be returned with
the answer ‘Duplicate since paid’.
If the duplicate is presented after the
original is paid, the duplicate is returned with
the answer ‘Original Paid’.
Legally bonafide title to both the original &
duplicate could be acquired by different
parties in good faith & for value. Whatever
initial action the branch might have taken,
ultimate recourse is available to the
purchaser of the draft only on the strength of
indemnity executed by him.
In case of loss of both the original & the
duplicate, the triplicate draft may also be
issued. However, more than ordinary care
should be exercised to ascertain the loss of
both the drafts. Non-payment advice should
be obtained for both the drafts from the
drawee branch irrespective of the amount. A
second indemnity letter must also be
obtained. Controlling authority should also be
advised.
Section 31 of the RBI Act prohibits issue of
bearer draft as it would virtually tantamount
to issue of currency note. It is a punishable
offence under section 58(b) of the Act
Once the purchaser delivers the draft to the
payee, the Bank becomes the trustee for the
payee as regards the draft amount. Hence,
the purchaser is not entitled to countermand
payment of the draft.
BANKER’S CHEQUE
(Bankers cheques are now issued in the IOI
formats)
It is used for making local payments on the
Bank’s Account.
It is also used for making payment of
remittance received in favour of parties who
do not maintain any account with the Bank.
It is not a Draft. It should be marked ‘Non
Transferable
Page 4
 It is payable locally at any of the branch at
the centre where it has been issued. Hence, it
is also marked ‘Payable at par locally’.
Payment in cash can be made to the payee
on identification as applicable in case of nor-
mal order cheques.
All Banker’s Cheques beyond Rupees One lac
and fifty thousand (Rs.1, 50,000/-) above shall
be signed by two supervising officials.
Issuance of Banker’s cheques for Bank’s own
expenditure exceeding rupees twenty thou-
sand (Rs.20,000/-)in single or series of pay-
ments to a supplier / service provider during
the day shall be issued as “Account Payee”
cheque except where the payment is made to
RBI or any other Banking Company as defined
under Banking Regulation Act or Life Insur-
ance Corporation of India etc. as required un-
der the relative income tax rules.
Duplicate Banker’s Cheque can be issued
against stamped indemnity (COS 537)
After the issuance of duplicate Banker’s che-
que, the original Banker’s Cheque voucher
along with letter of request and letter of in-
demnity obtained from the applicant(s) is to
be held as Branch Document and entered in
Branch documents Register for verification by
the Branch inspectors.
Banker’s Cheque shall be valid for 3 months
from the date of issue and can be revalidated
once at the request of the original purchaser
or payee on identification.
Before cancellation of original/duplicate
Banker’s cheque, enquiries should be made to
ascertain if the payee’s claim has been
satisfied by separate payment. Otherwise
express consent of the payee should be
obtained.
In case of difficulty in getting payee’s
consent where payee is a large institution like
LIC or Govt Dept., etc the purchaser should
produce convincing proof that the payee’s
claim has been discharged otherwise.
Purchaser’s receipt should be obtained at
the back of the Banker’s Cheque (on a
revenue stamp if the amount is above Rs
 Quick Success Series – Remittance & Collection
October 31, 2016
5000/-) against a discharge “Received
Payment by Cancellation”.
Similar Procedure to be followed for
cancellation of duplicate Banker’s Cheque
also.
Undelivered Banker’s Cheques:
The following procedure will be followed for
holding custody of undelivered Banker’s Che-
ques:
 All Bankers’ Cheques issued but not deli-
vered a day after the date of issue will be
entered in a Undelivered Banker’s Che-
ques register. The entries therein will be
initialled by the SWO concerned and au-
thenticated by the official incharge of the
issue of Banker’s Cheques.
 During the day the undelivered Bankers’
Cheques shall be in the custody of the
SWO to facilitate delivery to the appli-
cants, overnight they will be in the custo-
dy of the official in charge.
 Delivery will be made by the SWO con-
cerned to the applicant against the latter’s
acknowledgement in the register and af-
ter due verification of the applicant’s sig-
nature. The SWO will authenticate the ac-
knowledgement in the register with his in-
itial.
 Once in a month, the undelivered instru-
ments will be verified with the entries in
the register by any other officer to be au-
thorised in this regard by the Branch
Manager or by the Manager Branch Oper-
ations. The verifying official will certify the
correctness and sign in the register.
 The official in charge of Banker’s Cheques
will daily verify the deliveries effected and
satisfy himself/herself about the proper
completion of the process, the SWO being
responsible for proper delivery.
As per extant instruction, all Banker’s cheque
(BC) issued by debit to charges account and
outstanding for more than 3 yrs, are to be
transferred to Charges Account annually. On
last day of February every year CDC generates
a report on Banker’s Cheques outstanding for
more than three years to facilitate such iden-
tification and transfer. With the introduction
Page 5
of Depositor’s Education and Awareness Fund
Scheme -2014(DEAF–2014) by Reserve Bank
of India, all Banker’s Cheque(s) unclaimed
/outstanding for ten (10) years or more are to
be transferred to Depositor’s Education and
Awareness Fund of Reserve Bank of India at
monthly intervals as per instructions circu-
lated vide e circular No.
NBG/BODGB/29/2014-15 dated 25.06.2014.
Amount of Banker’s Cheque(s) remaining out-
standing for ten(10) years or more in each
calendar month are required to be trans-
ferred to the fund on the last working day of
the subsequent month.
These Banker’s cheques are to be parked in
the undernoted contingent liability-BGL
account and proforma BGL Account.
i) Banks Liabilities for BC more than 3
yrs and credited to Charges account (BGL A/c
3199924) for credit: Individual credit entry of
BC will be put through on the basis of par-
ticulars relating to BC number, date of issue
and amount of each individual BC credited to
Charges account.
ii) BC outstanding more than 3 yrs and
credited to Charges Account (Proforma BGL
A/c 3199925) for Debit: The consolidated
amount of BC, which is credited to BGL
account 3199924, will be put through by de-
biting to the proforma BGL account
(3199925).
Service Charge- Draft & Banker’s Cheque
Wef01/01/2016(e-circular1202dated
31122015)
A) Issue By transfer of funds from any other
account at home/non –home branch
Upto Rs. 5,000/- Rs. 25/-(incl.ST)
Above Rs. 5,000/- upto Rs. 10,000/- Rs. 50/-
(incl.ST)
Above 10,000/- upto 1,00,000/- Rs. 5
per(incl.ST) Rs.1,000/- or part thereof (min Rs.
55/- incl.ST)
Above Rs. 1,00,000/- Rs. 4(incl.ST) per
Rs.1000/- or part thereof {min Rs. 505(incl.ST)
max Rs.15000/-( incl.ST)}
 Quick Success Series – Remittance & Collection
October 31, 2016
 No Cash Handling charges will be levied in
addition to charges as above for issuance of
IOI (Demand drafts/ Bankers’ cheque) in case
of cash transaction.
Revalidation/ cancellation & issuance of
duplicate DD / Banker's Cheque
Rs 100/-+S.T per instrument (wef
01.01.2016)
( e-Circular e-circular1202dated 31122015)
Courier charges for delivery of IOIs-Rs50/- +ST
When IOIs issued through Online(INB) re-
quests (Drafts, Bankers’ Cheques, etc.)
IOI(e-cir.344/2008 – 09 Circular No. :
NBG/S&P-DRAFTS/6/2008 -
09Wednesday,September 17,2008.)
Inter Office Instrument (IOI) is a single
design security form for issuing Demand
Draft, Banker’s Cheque & Associate Bank
Draft.
It has improved security and reconciliation
process and is named as “Inter Office
Intrument (IOI)”.
 It is a BPR initiative
BGL A/Cs 98602BBBBBC titled as “IOI Ac-
count” and 98505BBBBBC as “IOI to be issued
Account” have been opened
Creation & Branch wise allocation of VPIS in
CBS by CSD Kolkata
Branch to acknowledge receipt through CBS
after receiving physically from respective
RSD/CSD
Can be paid by any branch in country
irrespective of the location of drawee branch.
Inter City Core Power charge applicable if
paid at non drawee centre
This facility not to be extended to other
banks when presented in clearing or in
collection at non drawee centre
Once IOI is printed, the data is automatically
transmitted to CDC and balance lying in IOI to
be issued A/C is reversed.
 IOI can not be printed without passing the
corresponding accounting entry or updating
the details at CDC. The process itself ensures
Page 6
that once IOI is printed, there is no balance
laying in IOI to be issued.
Limited Data Entry- Only 4 fields at the time
of IOI Payment.
Issue details verified before authorizing
payment.
Invalid BIAK cannot be bye passed.
Can be issued for all denominations
including HC series upto Rs 99,99,99,999/-
Duplicate IOI can be issued by the issuing
branch only.
Duplicate IOI shall not be hand written
Triplicate IOI cannot be issued
Serial number of IOI will be a unique 12 digit
number without any Circle prefix
The first six digit shall be printed on the
MICR Band in place of Account Number or
Short Account Number (SAN) and the last six
digit shall be printed in place of the present
instrument number
Instrument type/transaction code for IOI is
17.
 IOI security forms with serial number of 10
lakhs, 20 lakhs, 30 lakhs, etc. are non useable
and hence will not be allocated by CSD to any
Branch. However, such security forms
physically received by the branches should
invariably be destroyed and noting to be
made in Security Forms Register’.
Inter loaning among branches are not per-
mitted.
CHEQUE COLLECTION POLICY
Branch will of their own afford immediate
credit of outstation cheques upto & inclusive
of Rs 30000/- tendered for collection by the
customers for satisfactorily conducted
accounts
For the purpose of this policy, a satisfactorily
conducted account shall be the one
i. opened at least six months earlier and
complying with KYC Norms
ii. Account is neither dormant nor inoperative
iii. Where bank has not noticed any irregular
dealings/suspicious transactions in the last 6
months
 Quick Success Series – Remittance & Collection
October 31, 2016
iv. Where the bank has not experienced any
difficulty in recovery of any amount advanced
in the past including cheques returned after
giving credit
v. Where no adverse features attached to the
account/account holders has been brought to
the notice of the bank
 Normal collection charges + 0.50% as
DDP charges+ service tax are to be recovered
Time frame for collection of outstation che-
ques
a) Collection between Metro Centres/Major
A Class Cities (Mumbai, Chennai, Kolkata,
New Delhi, Ahmedabad, Bangalore &
Hyderabad): OUR BRANCHES-6 Days; OTHER
BANK’S BRANCHES-7 Days
b) Collection between places at (a) above
and state capitals (other than North Eastern
states & Sikkim) and Area I Cities (Pune,
Nagpur, Kanpur, Surat, Vishakhapatnam,
Vadodra, Kochi, Indore, Ludhiana,
Coimbatore, Agra, Madurai & Varanasi): OUR
BRANCHES-8 days; OTHER BANK’S BRANCHES
– 10 days
c) Collections between all other centres: OUR
BRANCHES- 10 days; OTHER BANK’s
BRANCHES- 14 days
Compensation for delay in collection of
cheques in India (Interest Payable for delayed
collection):
i) Savings Bank rate beyond normal collection
period (7/10/14 days).
ii) Beyond 14 days @ term deposit rate for
the corresponding period or Savings Bank
rate, whichever is higher.
iii) In case of extraordinary delay i.e delays
exceeding 90days, interest will be paid @2%
above corresponding TDR rate.
iv) Compensation will be paid @ interest rate
applicable to the loan account. For delay
beyond 90 days compensation will be @2%
above applicable interest rate in loan
account.
v) Such compensation shall be payable with a
minimum Rs.25/-
(eCircular no.721/2011-12 dated 14.11.2011)
Page 7
In exceptional circumstances (business
exigencies) BMs may use their discretion to
permit drawls against un cleared effects of
local cheques of other banks up to Rs.
30,000/- only, for deposit accounts on
recovery of collection charges of Rs. 100/- per
instrument. The facility can be provided only
on well conducted, KYC complaint accounts.
This will be done within the discretionary
powers vested with the Branch Manager in
the respective Grade/Scale, as per
discretionary power structure, on the day of
purchase itself and is required to be reported
to the next higher authority, immediately.
In the event a cheque or an instrument
accepted for collection is lost in transit or in
the clearing process or at the paying bank’s
branch, the bank shall immediately on coming
to know of the loss of instrument not only
bring the same to the notice of the account
holder so that drawer can be informed to
record stop payment and also take care that
cheques, if any, issued by him / her are not
dishonoured due to non-credit of the amount
of the lost cheques / instruments but also
compensate the customer as per Bank’s
Compensation Policy. The bank would also
advise the drawee bank all particulars of lost
cheques / instruments for exercising caution
and provide all assistance to the customer in
obtaining a duplicate instrument from the
drawer of the cheque.
 CHEQUE COLLECTION POLICY (CCP) – 2015
REVIEW
The Cheque Collection Policy -2015, duly
approved by Central Board in its meeting
held on 26th June, 2015, has been
prepared on the principles of
transparency and fairness in treatment of
customers and to provide due disclosures
to the customers on the bank’s
obligations and the customers’ right. The
Policy ensures efficiencies in collection of
proceeds and providing funds to
 Quick Success Series – Remittance & Collection
October 31, 2016
customers. The present Policy includes
following changes;
i) Non-CTS-2010 cheques tendered
at a centre linked to any of the three CTS Gr-
ids are to be cleared through a separate
clearing session in these CTS Grids (Mumbai,
Chennai and New Delhi) once in a week, i.e.
on Monday (introduced wef 01st Nov.,
2014), as per RBI guidelines.
ii) Global Link Services also accepts
CAD (Canadian Dollar) cheques for collection.
iii) Compensation by way of interest
payment in case of delayed collection auto-
matically without any claim from customers.
The Cheque Collection policy-2015 is aimed at
setting high standards of performance after
incorporating the aforesaid changes. The
Cheque Collection Policy is subject to review
every three years or as & when considered
necessary as per requirement of
RBI/IBA/BCSBI guidelines.
(e-Circular Sl no.427/2015-16 dated
10.07.2015)
BILLS
iv) A bill of exchange is a written instru-
ment containing an unconditional order,
signed by the maker, directing to pay a cer-
tain amount of money only to a particular
person, or to the bearer of the instrument. It
is a negotiable instrument drawn by the seller
(drawer) on the buyer (drawee) for value of
the goods delivered to him.
v) A demand bill is payable on demand
i.e. immediately at sight or on presentation
to the drawee.
vi) A Usance bill is payable after a speci-
fied time. If the seller wishes to give some
time for payment, the bill would be payable
at a future date.
vii) Documentary Bills – Where the bills
are supported by Railway Receipt (RR) or Lor-
ry Receipt (LR) or Bill of Lading (BL)
viii) Clean Bills - Where bills are not ac-
companied by documents of title to goods
Page 8
ix) Credit Bills - Drawn under LCs
x) Non-Credit Bills – Not drawn under
LCs
xi) DP Bills: When the documents
accompanying the bills are deliverable only
against payment
xii) DA Bills: When the documents
accompanying the bills are deliverable against
acceptance
xiii) Supply Bills: Arise on account of sup-
plies of goods to Government
xiv) Usance Bill discounted at the Branch
and payable at other centre is debited to In-
land Bills A/c.
xv) Usance Bill discounted and payable at
the same branch is debited to Bills Discounted
A/c.
xvi) Usance Bills are generally entitled to a
grace period of 3 days, unless the bill is drawn
without grace
xvii) If a Case in Need is given, it must be
presented to the Case in Need on dishonor by
drawee/acceptor.
xviii) The Bill should be presented for ac-
ceptance within 24 hours of receipt. Any de-
lay will be regarded as negligence. The accep-
tor must sign across the bill- “Accepted, Pay-
able at State Bank of India ______, (Branch)”.
Opinion on drawers/discounters must be
compiled and kept renewed each year. The
drawee is entitled to 48 hours of time to
either accept/refuse to accept the bill.
xix) Demand Bills do not attract stamp du-
ty.
xx) Ad valorem stamp duty is paid on
usance bills.
xxi) Central Govt has remitted (i.e. waived)
stamp duty payable on usance bills upto 3
months usance (after date or sight) if they are
drawn on or made by or in favour of a
commercial bank or a Co-operative bank or
SIDBI and they arise out of bona-fide
commercial or trade transactions.
xxii) Noting is recording the fact of
non-acceptance/non-payment of a bill of
exchange by a notary public. Noting has to be
 Quick Success Series – Remittance & Collection
October 31, 2016
done only if instructed by the lodgers of the
Bill.
xxiii) If dishonor of a bill (either by
non-acceptance or non-payment) is to be
certified by a notary public in addition to
Noting, the process is called Protest. The
lodger’s instructions have to be followed as
regards Protest also. However, it is essential
to ‘protest’ all foreign bills, if dishonoured.
This will be treated as proof of dishonor in
foreign courts.
xxiv) When bill of exchange is drawn in sets
of two, each draft bears an exclusion clause
making the other draft invalid in case the first
is paid.
REMITTANCE UNDER LIBERALISED REMIT-
TANCE SCHEME (LRS)
An individual resident may borrow a sum not
exceeding USD 2,50,000 or its equivalent
from close relatives residing outside India,
subject to the conditions that :
a) the minimum maturity period of the loan is
one year;
b) the loan is free of interest; and
c) the amount of loan is received by way of
inward remittances in free foreign exchange
through normal banking channels or by debit
to the NRE/FCNR(B) account of the non-
resident lender.
Any resident individual may remit upto USD
2,50,000 in one financial year as gift to a abroad using Money Gram services. This
person residing outside India. RBI has fur-
ther clarified that for gifting purposes, both
the individuals i.e. remitter and recipient
(NRI) should be close relatives as defined in
the Companies Act 2013. It is also clarified
that the recipient should be stationed abroad
(non-resident) to receive the foreign currency
by way of gift. Both the individuals cannot be
residents and gift to each other in foreign
currency through LRS. {This is relevant as res-
idents can open, maintain and hold foreign
currency accounts with a bank outside India}
Page 9
Liberalised Remittance Scheme is not
available for capital account remittances to
countries identified by Financial Action Task
Force (FATF) as non-co-operative countries
and territories as available on FATF website
www.fatf-gafi.org or as notified by the
Reserve Bank.
(e-Circular no.413/2015-16 dated
07.07.2015)
Remittance Business: Moneygram
(e-circualr 1538/2015 - 16Circular No. :
NBG/PBU/LIMAMONEYGR/32/2015 - 16
Wednesday,March 16,2016.)
India is a growing market for global remit-
tances. The Indian community is
spread worldwide and they are remitting
money using different Money Transfer modes
to India. Money Gram (MG), one of the large
money transfer organization in the world, is
operating from over 321,000 locations spread
over 198 countries. They operate in India un-
der a RBI license. Foreign
remittances come into India as per RBI guide-
lines covered under Money Transfer Service
Scheme (MTSS). To tap into this business of
Money Transfer, our Bank has entered into an
agreement with Thomas Cook India Ltd (TCIL)
a Principal Agent for
MoneyGram. Under the arrangement, our
Branches will payout inward remittances to
the public, for the funds remitted from
amount will be reimbursed by Thomas Cook,
a principal agent of Money Gram. Our Bank is
already offering similar services
under Western Union Money Transfer; hence
the operational guidelines are similar.
The Money Transfer Service Scheme (MTSS)
MTSS is a quick and easy way of transferring
cross-border personal remittances, such as,
remittances towards family maintenance and
remittances favouring foreign tourists visiting
India. Donations/ contributions to charitable
institutions/trusts, trade related remit-
tances, remittance
 Quick Success Series – Remittance & Collection
October 31, 2016
towards purchase of property, investments • TCIL maintains a current account at Nodal
or credit to NRE Accounts shall not be made Branch NRI Kochi and deposit in advance
through this arrangement. No outward re- three days expected payout amount in the
mittance from India is permissible. RBI has account.
formed guidelines for providing Money trans- Our Branches will mark off transactions in the
fer services to the general public. As per RBI Deltaworks application and pay the customer
guidelines: by debiting a BGL account No
• Maximum limit per transaction is USD 3199372065614.
2,500. • The Nodal Branch will reconcile the transac-
• A beneficiary can receive a maximum of 30 tion between the amount debited by various
transactions in a calendar year. branches and the funds provided by TCIL on
• Remittances can be committed only for per- daily basis. The commission and forex spread
sonal use. earned will be kept in a pool
• Maximum cash amount paid out to the re- account at NRI Kochi Branch. 75% of this
ceiver is Rs.50,000.00. If the amount exceeds amount will be distributed to the respective
Rs.50,000.00 then amount shall be paid by Branches at the end of each quarter and 25%
means of account payee cheque/ demand will be retained by the nodal Branch.
draft/ payment order, etc., or credited direct- • MoneyGram will be responsible for ensuring
ly to the beneficiary's bank account only. compliances under MTSS guidelines and anti-
However, in exceptional money laundering (AML) measures at the
circumstances, where the beneficiary is a for- send side of the transaction.
eign tourist, higher amounts may be dis-
bursed in cash. Full details of such transac-
tions should be kept on record for scrutiny by
the auditors/ inspectors.
• Under MTSS the remitters and beneficiaries
are individual only.
Features of the Arrangement with TCIL:
Salient features of the arrangement with TCIL
are as under:
• Remittances will be paid by all the identified
Branches.
• A front end software application “Delta-
works” will be uploaded on any node of the
identified Branch.
• The identified Branches will log on to “Del-
taworks” through an ID and password pro-
vided. The connectivity between our
Branches and MG server has been provided
through SBI Connect, so there is no need of
separate internet connection.
• Branch will pay the transaction by debiting –
“MoneyGram Payment Account Thomas
Cook”number 3199372065614 maintained at
NRI Kochi Branch.
Credit – Cash/Customer's a/c/system sus-
pense a/c forDD etc.

Page
10
 Quick Success Series – Organisational Structure
Mar 15, 2012
QUICK SUCCESS SERIES, an initiative of
SBLC Deoghar to facilitate the preparation
of promotion seeking personnel of our
Bank, appears to have succeeded in its
objective to a large extent, as the readers
Quick Success are still approaching us for its
revision/updation despite availability of
Series plenty of other study materials.

We would not have been able to

sustain this unique effort of ours,
without the active support and
continuous encouragement of our
DGM cum Circle Development Officer
Sri Bijayananda Padhi. We are deeply
indebted to him for his co-operation
and guidance.

Sri Kumar Priyank, Chief Manager

(Training), Sri Rakesh Roshan, Chief
Manager (Training), Sri S.K.Sharma,
Manager(training) and Sri J.K Arun,
Manager (Training) at this SBLC have
Organisational Structure owned up this project and have taken
pains to keep it relevant to the users by
updating & improving it at half yearly
interval.

Though every care has been taken while

updating the contents, we request our
readers to point out any lapses at the
earliest. Needless to mention this book is
not a substitute of circular instructions
issued by the Bank from time to time. For
detailed guidelines please refer to Bank’s
latest circulars. Soft copy of this edition is
available on our ftp://10.151.51.33 in QSS
folder and on SBI TIMES>PATNA CIR-
CLE>SBLC Deoghar site.
Team SBLC Deoghar is humbled by the
response and recognition, it is receiving
from the readers within and beyond the
circle. We wish the readers grand
success in their endeavours.

Updated by : Jitendra Kumar Arun Abhishek Kumar Sharma

Manager (Training), Assistant General Manager,
SBLC Deohar State Bank Learning Centre,
Mobile- 9801002594 Deoghar- 814112
Email- jitendra.arun@sbi.co.in Phone- 06432-232895
Fax - 06432-231810
e-mail: agmstc.deoghar@sbi.co.in
Updated upto 31st Oct. 16
Page 1
 Quick Success Series – Organisational Structure
31st October 2016

History of SBI
The origin of State Bank of India date back to 1806, when the Bank of Calcutta (later called the
Bank of Bengal) was established. In 1921, the Bank of Bengal and two other presidency banks
(Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India
were acquired by the Reserve Bank of India and the State Bank of India was created by an Act of
Parliament to succeed the Imperial Bank of India. On recommendations of All India Rural Credit
Survey Committee (Gorawala Committee) and through passing of an Act in parliament, Imperial
Bank of India was renamed as State Bank of India on 1st July 1955.

The Bank has completed over 207 years of existence, with an unbroken record of profitability.

 Till establishment of RBI in 1935, Imperial Bank of India was exclusively conducting Government
Business.

Structure and Organisation

The Bank has its Corporate Office at Mumbai. At the helm of affairs is the Bank’s Central Board
of Directors, comprising specialists from various sectors. The Directors represent the
Government of India, RBI, shareholders, workmen and non-workmen staff of the Bank. There
are several independent and non-executive Directors apart from the executive directors on the
Board. The Bank’s domestic operational area is divided into 14 Circles, each with one Local Head
Office (LHO) headed by Chief General Manager. The Bank’s Top Management consists of the
Chairman, Managing Directors, and Deputy Managing Directors.

Associate Banks
 In 1959, State Bank of India (Subsidiary Banks) Act, 1959 was passed under which state associated
banks were taken over by the SBI as its subsidiaries
 Later on these were renamed as Associate Banks
 Presently, there are 5 Associate Banks of SBI namely
 State Bank of Bikaner & Jaipur (SBBJ)
 State Bank of Hyderabad (SBH)
 State Bank of Patiala (SBP)
 State Bank of Mysore (SBM)
 State Bank of Travancore (SBT)
 Erstwhile Associate Banks - State Bank of Saurashtra (in August 2008) & State Bank of Indore (in
August 2010) have been merged with State Bank of India
 SBI holds 100% shares in SBH & SBP. In SBBJ -75.07%, SBT – 79.09% and in SBM- 90%

Foreign Banking Subsidiaries

 State Bank of India (Canada)
 State Bank of India (California)
 SBI (Mauritius) Ltd
 Bank SBI Indonesia
 Nepal SBI Bank Ltd
 Commercial Bank of India LLc, Moscow
 State Bank of India (Botswana) Ltd

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 Quick Success Series – Organisational Structure
31st October 2016

Non Banking Subsidiaries

 SBI Capital Markets Ltd
 SBICAP Securities Ltd
 SBICAP Trustee Company Ltd
 SBICAP Ventures Ltd
 SBICAP (UK) Ltd
 SBICAP (Singapore) Ltd
 SBI DFHI Ltd
 SBI Mutual Fund Trustee Company Pvt Ltd
 SBI Global Factors Ltd
 SBI Pension Funds Pvt Ltd
 SBI General Insurance Company Ltd
 SBI Payment Services Pvt Ltd
 SBICAP (UK) Ltd
 SBICAP (Singapore) Ltd
 SBI Cards and Payment Services Pvt Ltd
 SBI Funds Management Pvt Ltd
 SBI Life Insurance Company Ltd
 SBI Funds Management (International) Private Ltd
 SBI-SG Global Securities Services Pvt Ltd.
 SBI Foundation

Joint Ventures
 C Edge Technologies Ltd
 GE Capital Business Process Management Services Pvt Ltd
 Macquarie SBI Infrastructure Mgt. Pte. Ltd.
 Macquarie SBI Infrastructure Trustee Pvt Ltd
 SBI Macquarie SBI Infrastructure Mgt. Pvt Ltd.
 SBI Macquarie SBI Infrastructure Trustee Pvt Ltd.
 Oman India Joint Investment Fund-Mgt. Co. Pvt Ltd.
 Oman India Joint Investment Fund-Trustee Co Pvt. Ltd.

Present Organisational Structure

 SBI’s Registered Office & Central Accounts Office is in Kolkata

 SBI’s Corporate Centre (Apex Office) is in Mumbai
 Corporate Centre is headed by Chairman
 Chairman is supported in his functioning by Managing Director & Chief Credit & Risk Officer (MD
& CCRO), Deputy Managing Director & Chief Financial Officer (DMD & CFO), Deputy Managing
Director & Corporate Development Officer (DMD & CDO), DMD (Inspection & Management
Audit), DMD (Information Technology), Chief Vigilance Officer (CVO) and Chief Economic Advisor.
 The Bank’s domestic operational area is divided in 14 Circles, each with one Local Head Office
(LHO). Presently, there are 85 Zonal Offices.
 To achieve focused growth, undernoted Business Groups have been formed at Corporate Centre:
1. Corporate Banking Group
2. Mid Corporate Group

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 Quick Success Series – Organisational Structure
31st October 2016

3. National Banking Group

4. International Banking Group
5. Global Markets Department
 Corporate Banking Group consists of three Strategic Business Units viz., Corporate Accounts
Group, Project Finance & Leasing SBU and Transaction Banking Unit.

 Corporate Accounts Group –CAG is the dedicated SBU for handling the ‘large credit’ portfolio of
the Bank. The CAG has 8 Offices in 6 regional centers viz. Mumbai, Delhi, Chennai, Kolkata,
Hyderabad and Ahmedabad headed by General Managers. The business model of CAG is centered
around the Relationship Management concept and each client is mapped to a Relationship
Manager who spearheads a cross-functional Client Service Team. The Relationship strategy is
anchored on delivering integrated and comprehensive solutions to the clients, including
structured products, within a strict Turn-Around-Time. The principal objective of the strategy is to
make SBI the first choice of the top corporates thereby increasing the wallet-share and improving
the Return on Capital Employed.

The Fund Based outstandings of CAG constitutes 21% of total credit portfolio of the Bank, CAG
also handles about 58% of the domestic forex business of the Bank. During the year, CAG handled
several high value deals eg. NTPC, BSNL, SAIL, GSPC etc.

 Project Finance & Leasing SBU deals with the approval and arrangement of funds for large
projects in infrastructure sectors like power, telecom, roads, ports, airports, as also
other non-infrastructure projects in sectors like metals, cements, oil & gas, among others, with
certain threshold on minimum project cost. PFSBU also provides support to other verticals for
vetting their large ticket term loan proposals. In order to strengthen the policy/ regulatory
framework for financing infrastructure, inputs are also provided to various ministries of Govt. of
India, Planning Commission, RBI etc. in respect of lenders’ views on new policies, Model Conces-
sion Agreements, issues being faced in infrastructure financing, etc.

 Transaction Banking Unit has a special focus on Cash Management Product, Trade Finance and
Supply Chain (Dealer/Vendor) Finance.

 The Cash Management Product (CMP) The Bank provides Cash Management Ser-
vices “SBI F.A.S.T.”- (Funds Available in Shortest Time) to Corporate customers
through 1854 branches. The Bank’s entire network of over 16400 branches is also
offered to Large Corporates, Non-Banking Finance Companies and Insurance Com-
panies for their Cash Management needs through certain ‘Premium Products’ such
as Easy Collect, Powerjyoti – Pre-upload etc. The whole spectrum of Cash Manage-
ment services encompassing Liquidity Management, Cheque and Cash collections,
Doorstep Banking for Cash and Cheque pickup, collections for Public Issues
(IPO/Bonds), e-Collections, Post dated Cheques management, Mandate based debits
and Payment services comprising Dividend Warrants, Multi City Cheques, Inter Office
Instruments and e-payment are offered. CMP Centre is the “Sole Refund Banker” for
Central Board for Direct Taxes (CBDT). CMP Centre has brought about integration of
payment Systems of Controller General of Defence Accounts, Civil Ministries under
UMEA and some State Governments with the Core Banking Infrastructure of the

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31st October 2016

Bank by providing Centralised e-Payment Solution enabling the Government

Departments to achieve their objectives under National e-Governance Project
(NeGP).

 Trade Finance, the Bank has launched a more customized front end tool called
‘e-trade SBI’ which enable clients to lodge their LC, BG and Bill Collection/
negotiation requirements online.

e-Trade SBI SBI has established an excellent technology and operation infrastructure
for its Trade Finance business. e-Trade SBI, a web-based portal, which was launched
by our Bank in March 2011, has been undergoing constant improvement to enhance
customer comfort and provide the means to customers to access trade finance
services with speed and efficiency by enabling them to lodge Letters of Credit, Bank
Guarantees and Bills Collection/negotiation requirements online from any corner of
the world. As on 31.03.2016, 2250 Corporates are registered under e-Trade SBI.

 Supply Chain Finance equipped with e-VFS (Electronic Vendor Finance Scheme) and
e-DFS (Electronic Dealer Finance Scheme), provides automated payment and
settlement of transactions as also real time MIS to both Industrial Majors and
vendors.

e-VFS (Electronic Vendor Financing Scheme) & e-DFS (Electronic Dealer Financing
Scheme) Leveraging our Bank’s state-of-the art technology, our relationship with the
Corporate World has been further strengthened by financing their Supply Chain
Partners through the above two products which are fully automated, secured and
robust. They are designed to ensure efficient management of working capital cycle,
sustained growth and profitablility of business partners. As on 31.03.2016, over 182
industry Majors (IMs) with more than 3867 vendors and 12993 dealers across the
country have been migrated to the electronic facility under the e-VFS/e-DFS
platform.

 Financial Institutions Business Unit (FIBU), a dedicated vertical created for

capturing potential business opportunities from financial institutions viz. Banks, Mu-
tual Funds, Insurance Cos., Brokerage firms and NBFCs. Capital Market Branch
(CMB), Mumbai under FIBU, a specialised branch catering to Capital Market business
and Brokers was given the award of being one of the ‘Top Performers in BSE in Pri-
mary Market segment’ by Bombay Stock Exchange for the third consecutive year.
CMB has also acted as ‘Bankers to Issue/Refund Banker’.

 Mid Corporate Group. MCG primarily caters to the banking needs of Mid Corporate custom-
ers. MCG provides a better turnaround time (TAT) for credit delivery and ensure quality in credit
appraisal through 54 MCG branches and 14 regional offices across the country as on 31.03.2016

 National Banking Group : The National Banking Group (NBG) is the largest business vertical of
the Bank, anchoring 96.04% of total domestic deposits and 53.57% of total domestic advances, as

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 Quick Success Series – Organisational Structure
31st October 2016

on 31st March, 2016. It is also the largest business vertical in terms of branch network and human
resources.
 NBG consists of five strategic Business Units: SMEBU (for Small & Medium Enterprises), PBBU (for
Personal Banking), ReH & HD for (Real Estate Habitat & Housing Development), RBU (for Rural
Banking) and GBU (For Govt Business).
 SBI has 14 Circles at Ahmedabad, Bangalore, Bengal, Bhubaneswar, Chandigarh, Chennai, Delhi,
Hyderabad, Bhopal, Kerala, Lucknow, Mumbai, North East & Patna.
 There is one Local Head Office at each Circle headed by Chief General Manager.

 International Banking Group (IBG). The International Banking Network is spread across
37 countries with 198 offices. Some of the Bank’s International locations include UK, USA,
Germany, France, Canada, Russia, South Africa, China, Singapore, Japan and Australia. The
Bank maintains correspondent banking arrangements with 385 reputed international Banks
spread over 113 countries. Bank’s Joint Ventures and Subsidiaries abroad further under-
line the Bank’s international presence.

Overseas expansion The number of foreign offices increased from 191 as on 31st March, 2015 to 198 as on
31st March, 2016 spread across 37 countries. The offices include 55 branches, 20 other offices, 7 Represent-
ative Offices, 113 offices of the 8 foreign banking subsidiaries and 4 Associates/Managed Exchange
Cos/Investments. During FY 2015, the Bank has opened a new representative Office in Myanmar and Indian
Visa Application Receiving Centre at Dhanmondi, Bangladesh . During FY2016, Bank has opened 2 new
branches in United Kingdom, 4 Indian Visa Application Centres in Bangladesh and upgraded Seoul
Representative Office into a full fledged branch. Bank commenced its Representative Office func-
tions in Sao Paulo, Brazil through its subsidiary State ank of India Servicos Limitada.

Dusseldorf Marketing Office of SBI, Bakersfield Branch of SBI (California) and Abbotsford Branch of
SBI (Canada) Bank were closed during the year.

 Global Markets Department handles Bank’s Domestic Treasury Operations across all time
zones and covers activities in various markets i.e. Forex, Interest Rates, Bullion, Equity and
Alternative Assets, etc. Global Markets Group performs the treasury functions of the Bank,
ensuring safety, liquidity and yield, besides maintaining statutory reserve requirements. The
corpus under management of Global Markets increased by around 20% Y-o-Y to `4,70,000 crores.
Further, Global Markets Group provides foreign exchange services and hedging instruments for
risk management to customers. It also offers portfolio management services to many retirement
funds.

Corporate Strategy & New Business (CS &NB)

Banking system is witnessing new challenges in its traditional business domain from new digitally
enabled entrants. Payment systems, of late, is the most sought after aspect of banking business on
account of the growing penetration of smart phones, e-commerce and launch of a good number of
innovative products/mobile apps. Payments Bank and Small Finance Banks are on the anvil. The
competitive scenario is getting intense and changing rapidly.

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31st October 2016

To meet the emerging challenges and to keep the Bank ahead in the race, during the last financial
year bank has initiated a slew of measures to enhance customer delight.

A dedicated department develops and launches initiatives in emerging business areas, including
tech-based products. Some key initiatives are:

Digital Banking Project: “sbiINTOUCH”

To provide the banking services to Gen-Y and Smart Affluent, bank has initiated Digital Transition of
service delivery in right earnest. Right from account opening (including transacting through
alternate channels like Internet Banking and Mobile Banking and instant issuance of personalised
debit cards) Remote Expert advisory, banking products and services delivery including products and
services of SBI subsidiaries viz. Life Insurance, General Insurance, Mutual Funds and credit cards,
e-Trade through SBI Cap Securities. The resultant product helped to enhance customer experience,
provide seamless and fulfilling banking services through simplification of products and services and
thus helped the Bank with a launching pad to get into higher orbit of digital service delivery in the
coming days.

The first set of 7 Digital Banking Outlets (DBOs), under the sub-brand “sbiINTOUCH” was launched
on 1st July, 2014. To start with, the DBOs have been opened in New Delhi, Mumbai, Kolkata,
Chennai, Ahmedabad and Bengaluru.

Debit Card
State Bank Group (SBG) continues to lead Debit Card issuance in the country with over 23 crores
Debit Cards as on 31st March, 2016.

Spending by debit cardholders of the SBG across ‘Point of Sale’ and ‘e-Commerce’ transactions
crossed Rs.41500 crores in FY 16.

Bank has also improved its market share in Debit Cards spends from 25.07% (March 15) to 26.29%
(March 16) which is highest amongst the banks as per RBI data

Prepaid Card
The Bank’s product range includes the following Prepaid Cards to cater to various payment needs of
its customers:

Foreign Travel Card: The Foreign Travel Card, now a chip based EMV compliant Card, is available
in 8 currencies, US Dollar (USD), Great Britain Pound (GBP), Euro, Canadian Dollar (CAD),
Australian Dollar (AUD), Japanese Yen (JPY), Saudi Riyal (SAR) and Singapore Dollar (SGD),
providing safety, security and convenience to overseas travellers. We have also introduced cor-
porate variants of State Bank Foreign Travel Card (SBFTC) to cater to the needs of corporate em-
ployees travelling overseas. In FY2016, the Bank have issued 27,220 Foreign Travel cards and ap-
proximately 2,01,900 INR prepaid cards.

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31st October 2016

eZ- Pay Card: The eZ- Pay Cards are aligned with most of the social schemes of the State and
Central Governments in addition to salary payments by corporate entities, thus benefitting millions
of households.

Gift Card: Gift Cards are a preferred option for consumers to gift the ‘Freedom of Choice’ to their
loved ones. Customers can purchase Gift Cards online.

State Bank Achiever Card: Rolled out in November 2013. This is a re-loadable Corporate incentive
Card with a validity of 10-years for disbursement of incentives/ awards.

Smart Payout Card: We launched the Smart Payout Card, a reloadable Card, on 27th April, 2013, for
blue collar workers and contract labourers, among others. This Card can also be issued as an
‘Add-on Card’ to our savings Bank account holders.

Merchant Acquiring Business (MAB): The MAB division aims to activate more than 150 million SBG
Debit Cards on POS terminals, increase visibility and create a comprehensive electronic
infrastructure in the country. We are already the largest player among Public Sector Banks with
around 1,35,853 terminals (as on 31st March, 2014) in the market. We are also the 4th largest
Acquirer in India and have entered into corporate tie-ups with many prominent players, including
top educational institutions and hospitals as we continue to tap the huge potential available in the
market. During the year the Bank has also launched Mobile POS on a pilot basis and will be rolling it
out on a pan-India basis in the next few months.

Green Channel Counter (GCC)

The Bank has launched the GCC facility in all retail branches (14,981 branches) to enhance
convenience to the customers and save on cost and time per transaction. Average 7.40 lakh trans-
actions are taking place on a daily basis through these counters.

The percentage of GCC transactions has improved from 20.08% in March 2015 to 27.64% in March
2016.

Self Service Kiosk (SSK)

SSK is a debit card based non-cash transaction kiosk. Twenty different financial and non financial
transactions are available at SSKs including passbook printing, utility bill payments, cheques
requests etc.

Green Remit Card (GRC)

The Bank introduced GRC, a remittance card, on 2nd January, 2012 for facilitating large number of
non-home cash deposit transactions at our branches. A cardholder can swipe the card at GCC or at
Cash Deposit Machines (CDM) and remit money to the beneficiary whose account number is
mapped to the card. Once the transaction is completed, both the remitter and beneficiary get a
confirmation through SMS.

Some 3.91 crore transactions were carried out through the Green Remit Card (GRC) route during
FY2016, compared to 3.48 crore in FY2015. The average daily transactions of GRC has increased

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 Quick Success Series – Organisational Structure
31st October 2016

from 1.16 lakh in FY2015 to 1.37 lakh in FY2016. This initiative won the SKOCH Award under Tech-
nology Products Category in 2015.
State Bank Aggregator Service (SBIePay)
The Bank has launched ‘SBIePay’, a payment aggregator service, which facilitates e-Commerce/
m-Commerce transactions among merchants, customers and various financial institutions for all
kinds of e-Commerce payments. The Bank’s Chairman, Smt Arundhati Bhattacharya, launched the
service at Corporate Centre, Mumbai on 13th March, 2014. The new service will go a long way in
providing our customers with online payment facilities

Mobile Banking Service

The Bank is the market leader and has leaped to the number one position in terms of value of
transactions with a quantum jump in market share from 9.82% in March 2015 to 35.97% in Dec’15,
while consistently maintaining the number 1 position in terms of volumes with 38.44%. market
share in December’ 2015

During the year, your Bank launched mobile banking applications for SME & Corporate customers,
“State Bank Anywhere Saral” & “State Bank Anywhere Corporate”. These applications allow cus-
tomers to do all their banking transactions such as Account Enquiry, Mini Statement, Utility Bills
payment, EPF Payment, creation of Fixed Deposits and a lot more. The Corporate customers get ad-
ditional features which allow them to initiate payment to suppliers, authorize e-cheques and en-
quiry of account transactions

State Bank Buddy – Mobile Wallet

Mobile Wallet space is still in its infancy and requires significant infrastructure changes in the
ecosystem but the general consensus is that this is the future of payment systems. For banks today,
mobile wallets have a lot of potential and can be a key to building loyalty and creating new revenue
streams. The millennial, a group that will guide the overall consumer attitude in future, are showing
preferences for mobile payments and many of them feel that this would be the payment method
five years down the line. In order to ensure our presence in this space, it has been decided to launch
“State Bank Buddy”, our Mobile Wallet in collaboration with Accenture and MasterCard.

The wallet has seen more than 48 lakh transactions to the tune of `230.71 crore. Out of which
`11.47 crore are merchant transactions, upto 31st March, 2016.

mPoS terminals
In order to go “green” your Bank is now focussing on “paperless” mobile PoS terminals with 30000+
mPoS terminals.

Contactless (NFC) PoS terminals

During FY2016, Bank has also launched the Contactless (NFC) PoS terminals with over 30,000 such
terminals already deployed in the field. Acceptance of Amex Card has also been enabled on SBI PoS
terminals during FY2016

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31st October 2016

Internal Control (through Audit)

 The bank has in-built internal control systems with well defined responsibilities at each level. It
conducts internal audit through its Inspection & Management Audit Department. Audit
Committee of the Board (ACB) exercises supervision and control over the functioning of the
I&MA department.
 The Bank carries out mainly two streams of audits – Risk Focused Internal Audit (RFIA) and
Management Audit covering different facets of Internal Audit requirement. All accounting units
of Bank are subjected to RFIA. Management Audit covers administrative offices and examines
policies and procedures besides quality of execution thereof.
 Besides the above, the department conducts Credit Audit, Information Systems Audit
(Centralised IT Establishments & Branches), Home Office Audit (audit foreign offices) and
Expenditure Audit (at administrative offices) and oversee policy and implementation of Concur-
rent Audit (domestic & foreign offices) and Circle Audit.
 I & MA Dept undertakes a critical review of the entire working of the entire working of auditee
units through RFIA an adjunct to risk based supervision as per RBI directives. All domestic
branches have been segregated into three groups (Group I, II & III) on the basis of business
profile and risk exposures. Audit of Group-I branches is administered by Central Audit Unit
(CAU), audit of branches in Group II & III category and Business Process Re-engineering (BPR)
entities are conducted by 13 Zonal Inspection offices, each of which is headed by a General
Manager.
 Management Audit focuses on the effectiveness of risk management in the process and
procedure followed in the Bank covering Corporate Centre establishments, Circle’s Local Head
Offices, Apex Training Institutions, Associate Banks and RRBs sponsored by the bank.

Regional Rural Banks

SBI has sponsored 14 RRBs covering over 155 districts in 15 states with a network of 3955 branches.
The Bank’s shareholding in 14 RRBs is Rs.479.82 crores.

Strategic Training Unit

Our training system functions under the overall supervision and guidance of STU caters to ever
increasing training needs of the Bank. There are 5 ATIs (Apex Training Institutes) and 47 SBLCs State
Bank Learning Centres) across the country. The 5 Apex Training Institutes are State Bank Academy
(SBA), Gurgaon; Sate Bank Institute of Rural Development (SBIIRD), Hyderabad; State Bank Institute
of Information & Communication Management (SBIICM), Hyderabad; State Bank Staff College
(SBSC), Hyderabad and State Bank Foundation Institute (SBFI), Chetna, Indore.

The sixth ATI, named the State Bank Institute of Management, is being set up at Rajarhat, New
Town, Kolkata. The Bank has acquired 10 acres of land in the prime institutional area at Rajarhat
New Town, Kolkata from WBHIDCO (West Bengal Housing Infrastructure Development
Corporation Limited) at a cost of Rs.58.00 crores. Efforts is underway to construct a state of the
art full scale residential apex training institute. This would help correct regional imbalances as

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 Quick Success Series – Organisational Structure
31st October 2016

participants from eastern and north eastern region would not have to travel long distance
for undergoing training.

Principles that drive learning activities

 All employees undergo at least one institutional training during a year.
 Training programmes are aligned with current corporate priorities of the Business Units.
 A culture of self-learning is inculcated in every employee.
 Active promotion of online learning includes mandatory role-based lessons supported by
Rewards and Recognitions.
 Under its Reward and Recognition Scheme, the Bank also actively encourages its employees
to pursue various study courses offered by external institutes.

Highlights of achievements

 With the main objective of imparting financial literacy and facilitating effective use of finan-
cial services by the common man, Bank have set up 385 Technology Learning Centres (TLCs)
across the country for conducting interactive learning sessions and demos of the Bank’s var-
ious tech-channels.

 Bank’s 116 RSETIs have conducted 12,840 programmes, trained 3,40,688 candidates and
1,60,607 trainees have been gainfully settled

 37734 Financial Literacy Camps organised during FY2016


 During FY2015, 23 SBLCs were accredited with the ISO 9001:2008 Certification, taking the
total tally to 27 accredited centres out of a total of 45 SBLCs till date.

 Bank has also started a facebook page for new batch of Probationary Officers (2015) called
“SBI STEPUP”
Career Development System (CDS)

During the FY2016, your Bank has introduced a new system of performance appraisal (re-named as
Career Development System) of individual employees in an objective and transparent manner. The
entire system is IT driven. All the employees of your Bank have been assigned KRAs and almost 90%
of the positions have been made budgetary or measurable. The system extracts business data re-
quired for the KRAs and calculates scores. All the employees are being judged on the basis of their
performance

Corporate Social Responsibility (CSR)

Our CSR activity touches the lives of millions of poor and needy across the length and breadth of
the country. The Bank has a comprehensive Corporate Social Responsibility (CSR) Policy, approved
by the Executive Committee of the Central Board in August 2011 and earmarks 1% of the previous
year’s net profit as CSR spend budget for the year. The CSR spend of your Bank for the FY2016
stood at `143.92 crore

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CSR awards and accolades

Awards: Bank has won 10 awards for its CSR initiatives during FY2016:

SNO NAME OF AWARD CATEGORY Award Insti-

tuted By
1 National Award for Excellence in CSR & Best Overall Excellence in CSR World HRD
Sustainability Congress
2 National Award for Excellence in CSR & Best Overall Sustainability Per- World HRD
Sustainability formance Congress
3 Asian Banking, Financial Services & Insurance Best CSR Practices World HRD
(BFSI) Excellence Awards Congress
4 Asian Banking, Financial Services & Insurance Business Sustainability World HRD
(BFSI) Excellence Awards Initiative of the Year Congress
5 Lokmat Banking, Financial Services & Best Bank (Public Sector) World CSR
Insurance (BFSI) Excellence Awards Day
6 ABP News CSR Leadership Awards Best CSR Practices to SBI World CSR
Foundation Day
7 10th IND Y’s Awards Best CSR Practices to SBI Fun & Joy at
Foundation Work
8 ABP News Banking, Financial Services & Banks with Best CSR Practices World CSR
Insurance (BFSI) Awards to SBI Foundation Day
9 Blue Star: Global CSR Excellence & Best CSR Practices World CSR
Leadership Awards Day
10 Golden Globe Tiger Award for Excellence & Best CSR Practices World CSR
Leadership in CSR Day

SBI: Flagship of Indian Banking

The State Bnak of India has been in the forefront of all areas of banking and has, over the years,
richly merited its status as the flagship of Indian Banking. In several fields, the Bank has pioneered
innovate measures and contributed significantly to the growth of the Indian economy, while
improving its own profitability over the years.
The Bank strongly believes that customer service is the most important factor in maintaining and
improving its leadership in India’s Banking Industry, which is reflected in its activities in every
sphere of its operations.

Branch Expansion

With the opening of 451 new branches during the year, the branch network of Bank reached
16,784, as of March 2016, of which 65% are in rural and semi-urban areas

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31st October 2016

Number of Employees

The Bank has a total permanent staff strength of 207739 on 31st March, 2016. Out of this, 80818
are Officers, 88606 are Assistants, 21477 are Sub-staffs and remaining 16838 are Watch & Ward
staffs.

Capital and Shareholding Pattern

SBI is the first public sector bank to access the domestic capital market in 1994 to shore up its
capital base. Distribution of Shareholding as on 31.03.2016:

Shareholders % of shares held

PRESIDENT OF INDIA 60.18

Non-residents (FIIs, OCBs, NRIs, GDRs) 11.19

Mutual Funds & UTI 5.90

Private Corporate Bodies 2.75

Banks/FIs/Insurance Cos etc 12.65

Others including Resident Individuals 7.33

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31st October 2016

Organisational Structure at Corporate Centre

CHAIRMAN

Click to edit Master title style

DMD & CDO DMD & CFO CGM
(GLOBAL
MARKETS)
DMD & CCO DMD & CIO

• Click to edit Master text styles CVO

– Second level
• Third level
MD (CORPORATE MD (NATIONAL MD (A&S) MD (COMPLIANCE
BANKING GROUP) BANKING GROUP) & RISK)

– Fourth level All Subsidiaries

DMD (CAG) DMD (CHIEF
» FifthOPERATING
level DMD (I & MA)
DMD (MCG) OFFICER)
All Associate
DMD (CS & NB) Banks
DMD & CHIEF
DMD (SAMG) RISK OFFICER
CGMs (Circle)
DMD (IBG)
CGM & GCO
CGMs (BU)

August, 2015 Org structure-c c

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 Quick Success Series – Organisational Structure
31st October 2016

Click to edit Master title style

MD (NATIONAL BANKING GROUP)

• Click to edit Master text styles

*
CGM *
(PBBU) – Second levelCGM
CGM *
GM (GBU)*
(SME BU)
*
(RBU)
GM (MCS)*
CGM *
(REH BU)
DMD *
(CS & NB)
DMD & COO

• Third level
– Fourth level
» Fifth level

* Being uploaded separately.

August, 2015 Org structure-c c

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31st October 2016

MD (NATIONAL BANKING GROUP)

DMD & COO

Click to edit Master title style DGM CGM

(Risk Mgmt) (Customer
Service
GM (Alt.
Channels &
Electronic
& Ops.) Channel Redesign) Dotted line
Relationship
DGM DGM with PBBU

• Click to edit Master text styles

(Tech (INB)
DGM (Fraud Imp)
Prevention &
GM (NBG
Monitoring) GM DGM Coordination)
GM (Fraud (AB & R) (ATM - I & S)

– Second level DGM (FATCA)

Monitoring &
Banking
Operations)
DGM
(CIBR
DGM
DGM (RTI)
(Contact

• Third level
& IOA)
DGM (Bkg.Op) Centre)
DGM GM DGM
(DRD DGM (NPA (Soft

– Fourth
Dotted line
Relationship
(Branch level
DGM
GM (Branch
& ACD) (ATM
Strategies)
Mgmt.NBG) Recovery)

Redesign) Redesign DGM

with PBBU & GM
BOD »DGMFifthManagement
level
& Network (GAD) DGM
(Electronic
(HR-Special
Project)
(Network DGM Channels
Management) (C&CS) Redesign)

GM (CPC DGM
Redesign & (Complaints Management)
Other Projects GM
Redesign) (Customer
Service)
DGM
(Customer Outreach &
Root Cause Analysis)
Dotted line DGM DGM
Relationship (CPC (Other
with RE, H & Redesign) Projects)
HD & PBBU

August, 2015 Org structure-c c

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 Quick Success Series – Organisational Structure
31st October 2016

Click to edit Master title style

MD (CORPORATE BANKING GROUP)

• Click to edit Master text styles

– Second
CGM * GM
DMD (CAG) level
(Project Finance
& Leasing)
(Transaction
Banking Unit)
DMD (MCG)* DMD (SAMG) * DMD (IBG)

• Third level
– Fourth level
» Fifth level

* Being uploaded separately.

August, 2015 Org structure-c c

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 Quick Success Series – Organisational Structure
31st October 2016

Click to edit Master title style

MD (CORPORATE BANKING GROUP)

DMD (CAG)
• Click to edit Master text styles
– Second level
CGM (CAG –
Central)
DGM (Risk
CGM
Management)
(CAG – II)

• ThirdGMlevel GM
(Transaction Banking Unit)
GM (CAG (CAG
Mumbai I) – Fourth
Mumbai II)level

GM (CAG
New Delhi I)
» (CAG
GM Fifth level
New Delhi II) DGM DGM DGM DGM & RM
(TBU (TBU (TBU (TBU-Transaction
GM (CAG GM (CAG CAG) MCG) NBG) Banking - OPs)
Ahmedabad) Hyderabad)
Capital Market
GM (CAG GM (CAG Branch
Kolkata) Chennai)

DGM
(CAG – Central)

August, 2015 Org structure-c c

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MD (CORPORATE BANKING GROUP)

Click to edit Master title style DMD (IBG)

• Click to edit Master text styles

Chief General Manager /
General Manager (FS)
Chief General Manager
(International Banking)
GM
(Compliance & Risk)

– Second level
Regional Heads Foreign Offices Corporate Center DGM DGM (Risk
• Third level (Compliance) Management)
Country Heads
– Fourth level
Representative Offices

» Fifth level
GM (FIG) GM (Ops & GM GM DGM DGM
Coordination ) (Wholesale I) (Wholesale II) (Retail) (Overseas
DGM Exps. Planning
(Global Trade) & Strategy)
DGM (HR) DGM (Overseas
DGM Corporate Bkg) DGM (TMG I)
(Global Link
Services) DGM (Ops & DGM
Info System) (Merchant Bkg.)
DGM (TMG II)
DGM (IB
Domestic) DGM (Credit)

August, 2015 Org structure-c c

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 Quick Success Series – Organisational Structure
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Click to edit Master title style

MD (COMPLIANCE & RISK)

• Click to edit Master text styles

CGM (GCO)
DMD & CRO
– Second level
• Third level Officer (AML / CFT)
GM & Principal
GM
(Compliance)
– Fourth level
DGM (AML / KYC /
CGM (Risk Management) *

DGM
» Fifth level
CFT Cell ,Jaipur)

(Compliance-
Operations)

* Being uploaded separately.

August, 2015 Org structure-c c

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 Quick Success Series – Organisational Structure
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DMD & CFO

Click to edit Master title style
CGM CEA GM (Shares
(Financial CGM CGM (Global Markets)*
& Bonds)

• Click to edit Master text styles

Control) (FRTD)
ERD
DGM (Shares
GM DGM & Bonds)

– Second level
(IT: ALM) (ALM)

GM (Central
GM
• Third level
(Performance Accounts Office)
Planning and
GM (FRT)
Review)
– FourthDGMlevel
(FR) DGM
DGM
DGM (Capital (CSD, Kolkata)
Planning and» Fifth level
(CAO)
Compliance) DGM
(Taxation) AGM (Accounts)
DGM (CMU) CC, Mumbai
DGM & Proj.
Director
AGM (IFRS)
(Investor
Relations)

* Being uploaded separately.

August, 2015 Org structure-c c

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 Quick Success Series – Organisational Structure
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DMD & CDO

CGM
(HR)
Click to edit Master title style
DGM
(Appeals
GM
(OL & CS)
Law Dept. #
$ GM (LAW- I)
GM
(CC & C)
CGM & Head
STU)
DGM
(OP & SP
& Review) & GM (LAW-II) Deptt.)

DGM SBSC
DGM DGM

• Click to edit Master text styles

GM. (CRPD – (Public
(CRPD) (Premises) SBA
Promotion) Relations)
DGM SBIRD

DGM
– Second
DGM level
(CRPD –
(Estate)
DGM
(CSR)
SBIICM
(Personnel Mgmt AGM
• Third
Recruitment) SBFI,
& PPG) level (Office Administration) Chetana
DGM – Fourth level
Chief Medical Officer # DGM
(Industrial (L &D)
Relations) » FifthChief
level
Officer (Security) # DGM
DGM (Research)
(Cadre
DGM
Management)
(SBLC)
DGM
(E –Training)

$ GM (LAW-I) – Legal matters of A&S, MCG, SAMG, Global Markets. DGM (BOI)
GM (LAW-II) – Legal matters of NBG, CB, all functional departments and other verticals.
# This position is recruited on Contractual Basis.

August, 2015 Org structure-c c

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 Quick Success Series – Organisational Structure
31st October 2016

LOCAL HEAD OFFICE

Chief General Manager
PS

GMs (Network) DGM DGM & DGM DGM * DGM & AGM AGM
DGM & CDO
(AC&P) CFO (Vigilance) (Law) CCO BPR-IT (PR &
CSB)
AGM AGM (BPMM) AGM (HR)
DGM AGM (ATM- AGM AGM CM
DGMs (AC&P) Operations)
Headed AGM (Audit) CM (Appeal (CPM) (NPA) (Risk
(B & O) & review)
Branches Rater)
DGM/
AGM AGM CCC
AGM AGM
(MAB) (Reconciliation)
(PBBU) (Disciplinary Sect.
Proceedings)
DGM/ AGM (FSLO)
AGM AGM (ITSS)
(SME)
AGM
DGM / (Surveillance) AGM
AGM (Prem. & Est.)
(ABU) AGM
FMC AGM (OAD)
AGM
(GBU) AGM / CM
AGM (PPG)
(ORM)
CM
(BOPM) AGM
(Circle Security)
AGM
(RB-FI) AGM (Law)*
CM (L&D *Depending on the legal support required by
the circle either the AGM / CM (Law) or a
CM CM (Official
DGM (Law) will be present
(Cross CM Languages)
Selling)
(Procurement) State Bank
Learning Centers

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 Quick Success Series – Organisational Structure
31st October 2016

STRUCTURE OF GM’S OFFICE

General Manager
(Network)

DGMs (B & O) DGM/AGM (PBBU)

CM (Business
Operations & DGM/AGM (SME) Cluster Hub *
Performance
Monitoring) DGM/AGM (ABU)
AGM (GBU)
Chief Manager
DGM (AC&P) AGM (AC&P) (Lead Bank Cell)

CM (Cross Selling) $ depending

DGM on targets
headed Branches under FI)
AGM/ CM/ Mgr. – RB – FI $

NB: i) AGM (FPAS & HNI) will be placed under GM-I * Created in Ahmedabad, Bangalore, Bengal, Chandigarh,
Chennai, Delhi, Hyderabad and Mumbai Circles and to be
placed in Network having highest SME advances.

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 Quick Success Series – Organisational Structure
31st October 2016

STRUCTURE OF CDO’S OFFICE

DGM and CDO

AGM ( HR) AGM (ITSS)

AGM
CM (A & R)
(Premises and Estate)

AGM (Disciplinary
Proceedings Cell) AGM (OAD)

CM
AGM/CM (PPG)
(Procurement)

CM (Official
Languages) AGM (Circle Security)

CM (L & D) AGM / CM (Law)*

State Bank
Learning Centers

* If law department is headed by an AGM / CM (Law) instead of a DGM (Law) then the AGM / CM (law) will report to the CDO

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 Quick Success Series – Organisational Structure
31st October 2016

STRUCTURE OF CFO’S OFFICE

DGM and Circle

Financial Officer

AGM
(BPMM & MIS) AGM (Audit)

AGM (FSLO) AGM (Reconciliation)

CM (Govt. AGM
Operations)
(FMC)

AGM (Surveillance & CM

CM
Investigation) (Investigation)
(Operational
Risk Manager)

MIS compilation has been centralised under the office of AGM (BPMM)
IOR & other reconciliation has been centralised under office of AGM
(Reconciliation)

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 Quick Success Series – Organisational Structure
31st October 2016

STRUCTURE OF DGM & CCO’s OFFICE

DGM & CCO

AGM (Credit & CM AGM (NPA)

Performance Monitoring) (Risk Rater)

CCC Sectt.

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 Quick Success Series – Organisational Structure
31st October 2016

DGM
(Business and Operations)

CM- CM
CM Security CM Law AGM
RMs RB CPCs Officer Officer
(Credit
(HR) (GB) headed
(RBO) (FI)* & NPA)
branches
Manager (DPC)
Dy. Mgr. Dy. Mgr. Dy. Dy. Mgr. Dy. Mgr.
(Establishment) HR-CPC Mgr. Dy. Mgr. (I&A Audit,
Complaint) (Credit & ZCC) (NPA)

Dy. Mgr. (Premises,

(* If targets given under FI) Maintenance & general
matters)
System
Dy. Mgr.
Officer
(Compliance,budgeting &
performance,recon.,
returns & misc)) Civil
Dy. Mgr. (Official Engineer
Languages)

 Law Officers are generally provided at centers where DRTs or High Court branches are located and expected to
provide support to Administrative offices also at the centre. At other Centers at least one Law Officer be provided to
take care of the requirement of the ZO and RASMECC/SARC
 One or two System Officers to be provided as per requirement

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Quick Success Series – Organisational Structure
31st October 2016

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Quick Success Series – Organisational Structure
31st October 2016

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Quick Success Series – Organisational Structure
31st October 2016

Page
31
Quick Success Series – Organisational Structure
31st October 2016

Page
32
 QUICK
Quick Success Series: BPR SUCCESS SERIES, an initiative of SBLC
Initiatives
Deoghar to facilitate the preparation of
31st October 2016
promotion seeking personnel of our Bank,
appears to have succeeded in its objective to a
large extent, as the readers are still
approaching us for its revision/updation
de-spite availability of plenty of other study
materials.

Quick Success We would not have been able to sustain this

unique effort of ours, without the active
Series support and continuous encouragement of our
DGM cum Circle Development officer
Sri Bijayananda Padhi. We are deeply in-
debted to him for his co-operation and guid-
ance.

Sri Kumar Priyank, Chief Manager (Training), Sri

Rakesh Roshan, Chief Manager (Training)
Sanjay Kumar Sharma Manager (Training) and
Sri Jitendra Kumar Arun, Manager (Training) at
this SBLC have owned up this project and have
taken pains to keep it relevant to the users
by updating & improving it at half yearly
interval.

Though every care has been taken while

updating the contents, we request our
readers to point out any lapses at the earliest.
Needless to mention this book is not a
substitute of circular instructions issued by the
Bank from time to time. For detailed guidelines
please refer to Bank’s latest circulars. Soft
copy of this edition is available on our
ftp://10.151.51.33 in QSS folder and on SBI
TIMES>PATNA CIRCLE>SBLC Deoghar site.
Team SBLC Deoghar is humbled by the
response and recognition, it is receiving from
the readers within and beyond the circle. We
wish the readers grand success in their
endeavours.

Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895
Fax - 06432-231810
e-mail: agmstc.deoghar@sbi.co.in

Updated by J K ARUN
Manager, SBLC Deoghar
Mobile- 9801002594
email- jitendra.arun@sbi.co.in
Updated upto 30th Oct 2016

Page 1
 Quick Success Series: BPR Initiatives
31st October 2016

 BPR is the fundamental rethinking and radical redesign of business processes to bring about
dramatic improvement in performance

 Consultants for BPR in SBI - Mc Kinsey

Need of BPR in SBI

 Market conditions and expectations of customers had changed substantially mainly due to entry
of New Generation Private Sector banks & Foreign Banks. These banks were offering world class
services to the high end customers and were using state of the art technology.
 On the contrary, our processes have remained the same. Our market share was going down.

Objective of BPR
 To enhance customer service levels and experience by simplifying processes and offering
multiple delivery channels
 To build deep and lasting relationship with customers
 To improve productivity through increase of business and profit per employee
 To Free up time of Branch and Branch Manager to focus on sales and marketing
 To acquire new quality customers

Pillars of BPR
 Branch Re-design ii) Centralised Processing Centers iii) Alternate Delivery Channels iv) Sales
Forces

Branch Redesign
 Two types of change envisaged i) Change in role of various functionaries & ii) Change in internal
layout

Benefits to Customers
 Help & guidance from Grahak Mitra at the entry point in branches
 Reduction in waiting time
 Convenience of completing all transactions at a single counter
 (SWO/CRO)
 Increased & friendlier customer area (70% of Banking Hall for customers)

Benefits to employees
 Greater specialisation of skills due to separation of sales & service related activities in the
branch
 Development of multi skills in employees (both clerical & supervising staff) will lead to self
enrichment & self-confidence
 Fewer roles in the branch leading to greater clarity of roles of branch functionaries
 Better team spirit amongst staff

Benefits to Bank
 Sudden absenteeism of staff does not impact customer service
 Multi skilling of staff helps in balancing work load & improving productivity
 Branch Manager is freed up to focus on sales due to creation of Service Manager’s roles

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 Quick Success Series: BPR Initiatives
31st October 2016

Types of Branches after Redesign

Core Sales and Service Branch (SSB) (ii) SSB with affluent module (iii) SSB with SME module iv) A
self assisted outlet- Mini Branch operated by 1-2 staff and supported by a full suite of
alternative channel access devices (ATMs, call center link, internet kiosk etc.) (iv) Sales focused
outlet located in high traffic areas & (v) Product specific outlet such as home loan center, locker
center

 Core Sales and Service Branch (SSB) will cater to a broad spectrum of customers including mass
and mass affluent p-segment customers and small enterprises.
 Functionaries – Branch Manager, Manager (Branch Operation), SWOs & Grahak Mitra

 Core SSB with affluent module branch will have the same format as that of core SSB with
addition of an Affluent Module. This module will provide relationship based banking to
affluent/mass affluent customers.
 Additional Functionary - Relationship Manager (Personal Banking)

 Core SSB with SME module branch has all the capabilities of a Core SSB with the usual
functionalities along with additional module to service SMEs.
 Additional Functionary/Team - Relationship Manager (ME) and Credit Support Officer (CSO) to
serve ME Customers
 Small Enterprises will be served by dedicated Customer Relation Officer (CRO)

Role of Branch Manager Non BPR Centre)

Quantitative:
i) Achievement of all business budgets – deposits, advances, profit, other income, cross selling etc, including
activity budgets.
ii) Achievement of payment business i.e. alternate channels business budgets.
iii) Achievement of expenditure cost curtailment budget.
iv) Sourcing / Marketing of proposals (Number and amount).
v) Achievement of NPA reduction / recovery targets.
vi) Increase Market share.

Qualitative: Customer Service

a) Ensure efficient customer service level & evaluate performance of Manager (BO), SWOs, CROs on agreed
TAT.
b) Migration of customers to Alternate channels for routine transactions.
c) Handling of customer grievance and feedback.

Marketing and Sales

a) Implementation of sales strategies in consultation with regional Manager / BU Head. Suggest need of
promotional campaigns.
b) Regular touch with top end customers and tracking for new business from them.

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 Quick Success Series: BPR Initiatives
31st October 2016

c) Ensure Implementation of New initiatives – Outreach channels, BC/BF channels, CSPs etc.
d) Ensure Competitor Tracking and plan to overcome their strategies.
e) Liaison with important Government functionaries and others.

Branch Ambience
a) Ensure provision of customer amenities in the branch premises.
b) Ensure excellent Upkeep of the branch befitting the Bank’s image.

Administration
a) Proper deployment of staff resources.
b) Timely reporting of important business and operational matters to Regional Manager.
c) Development of staff working, development of skills, knowledge of staff through proper training.
d) Maintenance of excellent condition of House Keeping.
e) Ensure holding of Preventive Vigilance Committee / Customer Committee Meeting and Customer
Relation Programme regularly.

BRANCH MANAGER (BPR CENTRE)

Quantitative:
I. Achievement of all business budgets – deposits, advances, Profitability, Other income, Cross
selling etc, including activity budgets.
II. Achievement of payment business i.e. alternate channels business budgets.
III. Achievement of expenditure cost curtailment budget.
IV. Sourcing / Marketing of proposals (No).
V. Achievement of increase in Market share.

Qualitative: Customer Service

a) Ensure efficient customer service level & evaluate performance of Manager (BO), SWOs,
CROs on agreed TAT.
b) Migration of customers to Alternate channels for routine transactions.
c) Handling of customer feedback and grievance.

Marketing and Sales

a) Implementation of sales strategies in consultation with Regional Manager / BU Head. Sug-
gest need of promotional campaigns.
b) Regular touch with top end customers and tracking for new business from them.
c) Ensure Competitor Tracking.
d) Liaison with important functionaries both Government and otherwise.

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 Quick Success Series: BPR Initiatives
31st October 2016

Branch Ambience
a) Ensure provision of customer amenities in the branch premises.
b) Upkeep of the branch befitting the Bank’s image.

Administration
a) Proper deployment of staff resources.
b) Timely reporting of important business and operational matters to Regional Manager.
c) Development of staff working, development of skills, knowledge of staff through proper train-
ing.
d) Maintenance of harmonious HR.
e) Maintenance of excellent condition of House keeping viz Branch Hygiene.
f) Ensure holding of Preventive Vigilance Committee / Customer Committee Meeting and Cus-
tomer Relation Programme regularly.

KEY RESPONSIBILITY AREA

MANAGER (BRANCH OPERATIONS) / SERVICE MANAGER Quantitative:
i) Ensure that service level bench marks of the Branch on average queue length, average wait
time, average transaction time etc are adhered to.
ii) Ensure punctuality, neatness, efficient functioning of the Branch.
iii) Reconciliation of Branch suspense & ATM entries on daily basis and other Housekeeping
areas.
iv) Uptime of system / ATMs.
v) Quality of handling customer complaints.

Qualitative: Customer Service Area

a) Migration of customers to Alternate channels (for lower mass / mass segment customers).
b) Ensure efficient customer service in the Branch.

Marketing and Sales related

a) Referring customers to CRO / RM (PB) for cross selling / up selling of products.
b) Promoting Special Schemes on products.

Administration
a) Liaison with ATM channels Manager.
b) Coordination / liaison with Service related CPCs like LCPC/CCPC/CPPC etc.
c) Effective handling of Administrative matters relating to Premises / Rent / Electricity / AMCs /
ATMs etc under overall supervision of the Branch Manager.
d) Compliance with various audits in Operational Risk Area.
e) Prevention of leakage of income.

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 Quick Success Series: BPR Initiatives
31st October 2016

CUSTOMER RELATION OFFICER

QUANTITATIVE:
1. Spending 20% of his time making out bound calls to customers to invite them to branch for
Cross Selling / Up Selling of Products and arranging for / their meeting with Branch Manager
2. Increase in deposit / advances / New Customers / Cross Sale for MF Insurance, Payment
Services, etc.
3. To ensure quality of loan proposals before submission to RACPC / SMECC / RASECC to
keep the return ratio at bare minimum level

QUALITATIVE: Sales & Marketing:

1. To provide full Sales & Service Support to new & existing customers
2. Cross Selling / Up Selling of products to new customers / existing customers
3. Marketing asset / Liability / Para banking products
4. Competitor Tracking and handling of feedback/suggestions

Customer Service:
1. Migrate customers to Alternate Channels
2. Ensure high quality of behaviour with customers and render excellent customer service
3. Prompt Redressal of Customer Grievance and mechanism to handle feedback/suggestion

Others:
1. Sharing of Branch budget with Branch Manager in terms of fulfillment of targets
2. Quality of custody of documents retained at the branch
3. Effective completion of formalities related with opening / renewal / closure of Govt. Accounts
(Pension / PPF / Senior Citizen, etc.)
4. Ensure adherence to system and procedure.

KEY RESOPONSIBILITY AREA

RELATIONSHIP MANAGER (PERSONAL BANKING) Quantitative:
i) Achievement of bench marks / numerical targets like customer meetings / customer calls /
Growth in business against targets / cross selling efforts / acquisition of new customer etc.

ii) Acquisition of customers in youth / HNI segment.

iii) Achieve activity budgets.

iv) Enhance value per account of each customer assigned by up sale / Liability and Assets
products.

Qualitative: Customer Service

a) Nurture relationship with high end and Youth customers (HNI / affluent / Mass affluent cus-
tomers).

b) Maintenance of customer meeting log and customer information files.

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 Quick Success Series: BPR Initiatives
31st October 2016

c) Coverage of maximum No. of customers.

d) Advisor to customers in financial matters & help them select products from the basket of
bank products.

e) Handling of customer grievances and feedback/suggestions.

Marketing and Sales

a) Ensure delivery of asset and liability products (Mortgage loan/Car loan/Housing
loan/personal loan etc) within minimum possible TAT by necessary follow up at RACPC for as-
set products.
b) Liaison with RACPC / LCPC / CPPC etc.
c) Generation of new leads, Cross selling and up selling.
d) To apprise the Branch Manager / Regional Manager about the competitor’s plan / strategies,
their strong points and the ways to overcome them.
e) Support to Branch Manager in loan generation / fixing meetings with existing / potential cus-
tomers.
f) Competitor tracking and suggestions.

 Role of Grahak Mitra

 Grahak Mitra will be a member of clerical staff & provide first level assistance to customers
visiting the Branch
 He will also :
 provide basic product information and brochures to customers coming for a general enquiry
 help the customers not well-versed with alternate channels to use them
 guide the customers with complex transaction needs to proper officer/ counter
 pass on customers interested in certain products to CRO, RM (PB) or Branch Manager
 greet the top customers of the Branch , nicely to address their recognition need and guide them
to Manager PBD and/or Branch Manager in appropriate manner

 Role of Single Window Operator:

 To be a Single touch-point for customers for transaction related needs viz. cash receipt and
deposit, pass book update, Draft/BC issuance, Government Challans, Accepting ATM card
requests
 Grahak Mitra will support the single window operators by managing queues, provide forms/
vouchers to customers and help customers with use of alternate channels

 Relationship Manager (Premier Banking) [ RM (PB) & RM ( HNI) merged into One]
 To provide relationship based services to top 300 (approximately) high value ‘P’ segment cus-
tomers
 To get new high value customers for the Bank.

 RM ( PB)s catered to Affluent & Mass affluent customers while RM ( HNI)s catered to Hogh
networth clients in Financial Planning and Advisor Services

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 Quick Success Series: BPR Initiatives
31st October 2016

 Customers entitled to receive the services of RM (PB):

 Having deposits/MF investments >5 Lacs
 Home Loan >10 Lac for top cities (Mumbai, Kolkata, Delhi, Chennai, Bangalore, Ahmedabad,
Hyderabad) and 5 Lac for other places.
 Car Loan > 5 Lacs
 Income >2.40Lacs pa & deposits/investments > 2 Lacs (Pensioners not > 25% of total customers)

**** Detailed Roles of RM (Premier Banking) contained in e- circular 1124/ 12.02.2013 &
e- circular 1281/ 22.02.2014

Customer Classification
 Super Affluent – Annual Income > Rs 50 lacs
 Affluent - Annual Income > Rs 12 - 50 lacs
 Mass Affluent – Annual Income> Rs 2 - 12 lacs
 Mass – Annual Income> Rs 0.70 – 2 lacs
 Lower Mass – Annual Income< 0.70 lacs
 Vishesh - (a) Deposit of Rs.5 lacs and more, or
(b) HL of Rs.10 lacs & above or Car Loan of Rs.5 lacs & above with Deposit of Rs. 2 lacs

 Definition of HNI : Customers having an average quarterly balance (AQB) of more than
Rs.20 lacs under P domestic deposits at CIF level*
*Meta Gold, Capital Gains, Public Provident Fund and Senior Citizen Govt Scheme balances
are to be excluded while arriving at the net value.

 Relationship Manager (Medium Enterprise)

 To acquire new ME businesses and as well as to maintain relationship existing ME accounts
 Scope of work for RM (ME)
 all loans satisfying following criteria:
Aggregate Limits, Fund based (existing or proposed) more than Rs.1 Crore from our Bank.

Component of RM (ME) team:

 A Relationship Manager for Medium Enterprises – RM (ME) who is the leader of the team
 A Customer Support Officer (CSO).
 Models of RM (ME) –
 Branch Based Model - RM (ME) team belongs to and is posted at one branch which has about
70 ME customers or has the potential to grow up to this level &
 Sales Hub Model- RM(ME) team takes care of a cluster of branches which, in aggregate, have
about 70 ME customers or have the potential to grow up to this number
 RM (ME) team can be started at a centre/branch even with 30 ME customers only if adequate
potential is available

Central Processsing Centres

 Liability Central Processing Centre (LCPC)
 Retail Asset Central Processing Centre (RACPC)
 Small and Medium Enterprise City Credit Centre or SMECCC
 Centralised Pension Processing Cell (CPPC)

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 Quick Success Series: BPR Initiatives
31st October 2016

 Trade Finance Central Processing Centre (TFCPC)

 Stressed Assets Resolution Centre (SARC)
 Currency Administration Cell (CAC)
 Centralised Clearing Processing Centre (CCPC)
 Document Archival Centre (DAC)
 Centralised Settlement & Reconciliation of PPF transactions (CSRP)
 Home Loan Sales Team (HLST)
 Multi Product Sales Team (MPST)
 Inward Remittance Cell (IRC)
 Mid-Corporate Loan Administration Unit (MCLAU)

 LCPC ( one at almost each Circle) has been created for Account opening, closing &
maintenance of all deposit accounts, both Rupee & FX accounts
 LCPC issues Welcome Kit to the branches on request. Inventory of KITs are created in CBS by the
officials at LCPC before dispatching the KITs to the Branch
 Branches acknowledge the KITs through CBS before issuing it to customers
 Data to entered by branch before issuing the KIT- Name, Address, Date of Birth & KYC details
 Each Welcome Kit contains a) One Non Personalised ATM Card & b) One Cheque Book contain-
ing 10 leaves
 Welcome KIT can be issued to Primary Account Holder only
 Welcome KIT cannot be issued in - Accounts to be operated jointly, Non Individual Accounts &
Illiterate Accounts

 RACPCs have been setup at Major Cities to handle P-segment loan applications except Xpress
Credit, Pensioner Loan, Loan against Security & Staff Loan
 Activities at Branch - Sourcing of Loan Application & KYC Compliance
 Activities at RACPC - Pre-sanction Inspection, Appraisal & Sanction, Documentation,
Disbursement, Obtention of Revival Letters, Obtaining & Lodging & Post Dated Cheques, Soft
Recovery in irregular Loans, Closure of Account & Release of Documents
 Software used for processing Housing Loan/Car Loan & Education Loan- LOS
 Turn Around Time (TAT)
 a) Housing Loan – 6 days b) Education Loan – 5 Days
 c) Mortgage & Rent Plus – 6 days d) Auto Loans – 2 days
 Accounts maintained at RACPC:
 i) RACPC Advocates’ Fees Collection account ii) RACPC Valuers’ Fees Collection
account
 RACPC Stamp Charges Collection account

 SMECC have been set up to handle processing, sanctioning, documentation, disbursement and
also to take up maintenance of loans to SME units
 Activities at SMECC - Appraisal & Sanction, Review/ Renewal/Enhancement, DP set up for cash
credit A/c, Disbursement of Term loans, Obtaining Insurance Policies & Revival, Inspection of
Units, Soft recovery in irregular accounts
 Benchmark for Total Time to be taken for Sanction - 8 days
 Benchmark for Total Time to be taken for Sanction of Takeover proposals - 14 days

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 Quick Success Series: BPR Initiatives
31st October 2016

 Hybrid model of combining RACPC and SECC is known as RASECC

 CPPC have been set up to take care of back office activities connected with payment of pension
 Activities at CPPC - Crediting Pension online directly to the Pensioner’s A/C every Month,
Calculation of Arrear o/a of Revision in Pension or DA & Storage of PPOs/Certificates
 Activities at Branch – Forwarding New PPOs after completing formalities to CPPC & Obtaining
Periodical Certificates from Pensioners and updating it in the system

 TFCPC conducts following activities :

Products Covered
a. All Import Trade Finance related transaction
b. All Export Trade Finance related transactions
c. All Inland Trade Finance related transactions
d. Bank Guarantees both Foreign and Inland

Processes/ Sub-processes covered

a. Issue/Amendments/Cancellation of Import Letters of Credit

b. Payment of Import bills, both LC and Non-LC
c. Negotiation/Purchase/Discounting/Collection of Export Bills
d. Issue/Amendments/Cancellation of Inland Letters of Credit
e. Payment of Inland Inward Bills, both LC and Non-LC
f. Negotiation/Purchase/Discounting/Collection of Inland Outward Bills
g. Issue/Amendments/Cancellation/Invocation of Foreign Bank Guarantees
h. Issue/Amendments/Cancellation/Invocation of Guarantees issued on behalf of Foreign Of-
fices/Correspondent Banks
i. Issue/Amendments/Cancellation/Invocation of Inland Bank Guarantees
j. Booking/Cancellation/Taking delivery under Forward contracts – Sales as well as Purchases.
k. PCFC & EBR processes
l. Transaction related matters in respect of Supplier’s/Buyer’s Credit, ECB, FCNR(B) loans
m. Advising/adding Confirmation to Letters of Credit both Inland and Foreign.
n. Reports and Reconciliation

 SARB a city based outfit for resolving stressed assets under Per & SME segments
 Activities - Rehabilitation /Restructuring of NPA A/cs, Resolution through legal processes like
SARFAESI Act, Filing suits in DRT/ Civil Suits etc & Resolution through non-legal measures like
Lok Adalats, Compromise, Write-off etc.

 Monetary ceiling for transferring NPA a/cs to SARB

NPAs with outstanding above Rs 1 Crore upto Rs. 10 Crores
NPAs above Rs.10 crores to be transferred to SAMB.

 Accounts not covered by SARB – Amount upto Rs.1 crore ( to be maintained at Branch/
SMECCC/ RACPC/ RASECCC ) , Mid-Corporate A/cs (irrespective of amount), BIFR a/cs

Page
10
 Quick Success Series: BPR Initiatives
31st October 2016

(irrespective of segment), Staff Accounts, Agl Segment A/cs & Frauds (till investigations are
completed)

 Advantages of CAC - Cash Optimization, Transportation optimization & Man power optimization
 Functions of CAC- Arranging cash remittance to Hand Balance Branches needing cash, Arranging
cash pick-ups from Hand Balance Branches having surplus cash, Replenishment of cash at offsite
ATMs, Monitoring and Optimization of cash balances of Hand Balance Branches

 CCPC- Models
o HSPE file upload Model Mumbai (uses High speed machines and full functional cheque
processing software) &
o MICR file upload Model Amritsar (Uses low speed machines and Core Banking Solutions)
 Functions- Posting inward clearing instruments in customers’ accounts received from Clearing
House, Posting outward clearing/SC/DDP instruments along with the pay-in slips received from
linked branches & Posting ECS Inward Debits
 CCPC will not handle Local Intra-Bank Clearing

 DAC provides Record Management Solution to linked Branches & CPCs

 It has been created for
 Safe & scientific storage of Records/ Secured Documents of Branches/CPCs
 Retrieval of Records/Secured documents on request from Branches/CPCs
 Re-storage of retrieved Records/Secured Documents
 Destroying Records/Documents after retention period

 CSRP has been set up as a part of GAD at corporate centre

 To ensure expeditious processing & settlement of PPF Transactions with RBI
 To avoid penal interest and opportunity loss on account of delayed settlement of funds
 To reconcile transactions with CDC

 HLST has been constituted to sell Home Loan Product only

 MPST has been constituted to canvass

 Business from Small Enterprises
 Liabilities business & Third Party Products (Life, MF, etc.)
 Assets business (viz. Education Loans, Car Loans, etc. other than home loans) from Personal
Segment clients only

 Head of HLST/MPST is designated as Chief Marketing Executive

 IRC, the single CPC for entire country is located at Global Markets Unit (Kolkata)
 It has been set up to handle All Non Trade Related Inward INR & Foreign Currency Remittances
received through SWIFT

 MCLAU has been set up to take care of Post-sanction credit process of the offsite Mid-
Corporate Accounts (MCA) on centralized basis

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11
 Quick Success Series: BPR Initiatives
31st October 2016

 Corporate - annual sales turnover of above Rs 500 Crores

 Mid Corporate - annual sales turnover of above Rs 50 Crores & Upto Rs 500 Crores
 Medium Enterprises- annual sales turnover of above Rs 5 Crores & Upto Rs 50 Crores
 Small Enterprise – annual sales of upto Rs 5 Crores
 Drop Box Initiative
 Advantage - a) Hassle free service to cheque depositors b) Instant & 24*7 access & c) Frees up
staff engaged in issuing counterfoil
 Drop Box has three colour coded slits for depositing cheques for Outstation Collection, Clearing
and On- Branch respectively.
Standard one as per e-Circular Sl no.788/2014-15 (NBG/S&P-DropBox/5/2014-15 dated
30.09.2014) three separate color coded compartments as noted hereunder are installed at
medium and large branches:
a) Blue section: For depositing cheques drawn on local Bank branches which are to be
presented in Local clearing (including high value clearing where applicable).
b) Red section: For depositing cheques drawn on this (Drop Box Hosting Branch) branch.
c) Yellow section: For depositing all outstation cheques required to be sent for collection.

 Cheques against Govt. Challans & Cheques for DDP & Local Purchase are to be deposited at the
counter
 Key of the drop Box will be in custody of Accountant or Clearing in charge and he will also open
it in the Beginning of the day, thereafter at least every 1 hour & at the end of business hours
 Person opening drop box will brand special crossing stamp on all cheques & ensure that name
and account number of lodgers is written on the reverse of each cheque
 Notice required to be displayed on Drop Box in English, Hindi & Regional language of State –
‘Customers can also tender the cheques at the counter & obtain acknowledgement on the pay-
in slip’

Page
12
 QUICK SUCCESS SERIES, an initiative of SBLC
Deoghar to facilitate the preparation of promo-

Quick tion seeking personnel of our Bank, appears to

have succeeded in its objective to a large ex-
tent, as the readers are still approaching us for

Success its revision/updation despite availability of

plenty of other study materials.

Series We would not have been able to sustain this

unique effort of ours, without the active support
and continuous encouragement of our DGM
cum Circle Development officer Sri Bijayananda
Padhi. We are deeply indebted to him for his co-
operation and guidance.

Kumar Priyank, Chief Manager (Training),

Rakesh Roshan, Chief Manager (Training),
Sanjay Kumar Sharma, Manager (Training) and
Jitendra Kumar Arun at this SBLC have owned
up this project and have taken pains to keep it
relevant to the users by updating & improving it
at half yearly interval.

Though every care has been taken while updat-

ing the contents, we request our readers to

KYC & AML point out any lapses at the earliest. Needless to
mention this book is not a substitute of circular
instructions issued by the Bank from time to
GUIDELINES time. For detailed guidelines please refer to
Bank’s latest circulars. Soft copy of this edition
is available on our ftp://10.151.51.33 in QSS
folder and on SBI TIMES>PATNA CIRCLE>SBLC
Deoghar site.

Team SBLC Deoghar is humbled by the response

and recognition, it is receiving from the readers
within and beyond the circle. We wish the
readers grand success in their endeavours.

Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895
Fax - 06432-231810
E-mail: agmstc.deoghar@sbi.co.in

Updated By: J .K Arun

Manager (Training),
SBLC Deoghar
Updated up to
Mobile- 9801002594 31st October2016
Email- jitendra.arun@sbi.co.in
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
 Our Bank has been observing 1st August every
year as "KYC compliance and Fraud Prevention
Day" in order to create awareness about KYC
compliance and fraud prevention, among the
staff.
 It has been decided to observe 1st September
every year as “Risk Awareness Day / Jokhim Ja-
grukta Diwas” in the Bank.
 It has been decided to observe 2nd November,
every year as “AML-CFT Day” in the Bank.
 OFFICIALLY VALID DOCUMENT (OVD)
The Officially Valid Documents constitute of Driv-
ing license, Voter’s Identity card issued by Election
Commission of India, Job card issued by NREGA
duly signed by an officer of the State Government
and Letter issued by the Unique Identification Au-
thority of India containing details of name, ad-
dress and Aadhaar number.
 The Government has since amended the Preven-
tion of Money Laundering (Maintenance of
Records) Rules, 2005 providing additional relaxa-
tions for the purpose of proof of address in addi-
tion to the relaxations in proof of identity under
‘simplified measures’ as contained in paragraph
2(d) of PML Rules.
 For the limited purpose of proof of address the
following additional documents are deemed to be
OVDs under ‘simplified measures’.
a) Utility bill which is not more than two months
old of any service provider (electricity, telephone,
postpaid mobile phone, piped gas, water bill);
b) Property or Municipal Tax receipt;
c) Bank account or Post Office savings bank ac-
count statement;
d) Pension or family pension payment orders
(PPOs) issued to retired employees by Govern-
ment Departments or Public Sector Undertakings,
if they contain the address;
e) Letter of allotment of accommodation from
employer, issued by State or Central Government
departments, statutory or regulatory bodies, pub-
lic sector undertakings, scheduled commercial
banks, financial institutions and listed companies.
Similarly, leave and license agreements with such
employers allotting official accommodation; and
f) Documents issued by Government departments
of foreign jurisdictions and letter issued by For-
eign Embassy or Mission in India.
SBLC DEOGHAR
 The additional documents mentioned above shall
be deemed to be OVDs under ‘simplified measure’
for the ‘low risk’ customers for the limited pur-
pose of proof of address where customers are
unable to produce any OVD for the same for the
accounts opened under limited product coded
detailed in e.cir.sl.no:444/2015-16 dt:15/07/2015.
 NATIONAL VOTERS’ SERVICE PORTAL(NVSP)
 (http://electoralsearch.in/)
National Electoral Rolls Purification and Authenti-
cation Programme ( NERPAP )-The main objective
of bringing out a total error free and authenti-
cated electoral roll.
 A one stop solution for all enrolment related
services, as under :Search name in the elector-
al roll, Apply online registration as a new voter
Correction of entries or change of address,
Print voter’s information slip.
 EPIC (Electors Photo Identity Card )
 KYC/AML REVISED POLICY AND PROCEDURAL
GUIDELINES is detailed in e-cir. Sl.no:
1472/2015-16 dt:02/03/2016
 Reserve Bank of India has specified Know Your
Customer (KYC) standards to be followed by
banks and measures to be taken in regard to
Anti Money Laundering (AML) and Combating
of Financing of Terrorism (CFT).
 Obligations cast on banks under the Prevention
of Money Laundering Act (PMLA), 2002
 Recommendations made by the Financial Ac-
tion Task Force (FATF) on AML standards and
CFT
 Paper issued on Customer Due Diligence (CDD)
for banks by the Basel Committee on Banking
Supervision
 The Policy / procedural guidelines, as incorpo-
rated in the Master Circular, are applicable to
all domestic branches/offices of the Bank U/S
Section 3 of the Prevention of Money Launder-
ing Act, 2002 (PMLA) has defined the “offence
of money laundering”
 Non compliance with KYC/AML/CFT standards
can lead to use of the technology channels of
the Bank for Money Laundering/financing ter-
rorism activities and thus expose the Bank to
risks such as Operational Risk, Reputation Risk,
Compliance Risk and Legal Risk etc.
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
OBLIGATIONS UNDER PREVENTION OF
MONEY LAUNDERING ACT, 2002
Section 12 of PMLA places the following obli-
gations on the Bank :-
(i) maintaining a record of prescribed transactions
(ii) furnishing information of prescribed transac-
tions to the specified authority
(iii) verifying and maintaining records of the iden-
tity of its clients (in other words complying with
the KYC requirements) and identifying the benefi-
cial owners, if any, of such clients
(iv) preserving records in respect of (i) and (ii)
above for a period of five years from the date of
transactions, and in respect of (iii) above for a pe-
riod of five years after the cessation of relation-
ship with the clients in respect of account opening
forms and KYC documents.
 The KYC/AML/CFT Policy of the Bank has the
following key elements:
 Customer Acceptance Policy
 Customer Identification Procedures
 Monitoring of Transactions and
 Risk Management
 Bank’s Customer Acceptance Policy (CAP) lays
down the criteria for acceptance of customers.
 Customer identification requires identifying
the customer and verifying his/her identity by
using reliable, independent source documents,
data or information.
 Thus, the first requirement of Customer Identi-
fication Procedures (CIP) to be satisfied is that
a prospective customer is actually who he/she
claims to be. The second requirement of CIP is
to ensure that sufficient information is ob-
tained on the identity and the purpose of the
intended nature of the banking relationship.
 This would enable risk profiling of the custom-
er and also to determine the expected or pre-
dictable pattern of transactions.
 Identification data, as under, would be re-
quired to be obtained in respect of different
classes of customers:
SBLC DEOGHAR
Action required on re-categorisation Accounts
with “low risk” & where simplified procedure is
followed, into Medium or High Risk
 If a ‘low risk’ category customer for whom
simplified procedure is applied, is recatego-
rised as ‘moderate or ‘’high’ risk category at
the time of review of the risk categorisation,
then Branches/offices should obtain one of
the six OVDs for proof of identity and proof of
address immediately. In the event such a cus-
tomer fails to submit such an OVD, Branches
should initiate action for termination of the
business relationship after giving due notice
REPORTING
In terms of rules of Prevention of Money Launder-
ing Act 2002, banks are obliged to file following
reports to Financial Intelligence Unit-India
(FIU-IND)
i. Cash Transactions Reports (CTRs)
ii. Counterfeit Currency Reports (CCRs)
iii. Suspicious Transactions Reports (STRs)
iv. Non Profit Organisations Transactions Report
(NTRs)
v. Cross Border Wire Transaction Reports
 In terms of Rule 8 of PML Rules, while furnishing
information to the Director, FIU IND, delay of
each day in not reporting a transaction or delay
of each day in rectifying a misrepresented trans-
action beyond the time limit specified in the
Rule shall constitute a separate violation and
hence all reporting should be done as per the
timelines prescribed As per provisions of PML
Act.
 Any deficiency in filing the mandatory reports
by reporting entities will attract minimum pe-
nalty of Rs.10,000/- which may go to
Rs.100000/- per instance per day.
 FOR CUSTOMERS THAT ARE NATURAL PER-
SONS:
 Proof of identity and proof of address
 recent photograph
 FOR CUSTOMERS THAT ARE LEGAL PERSONS:
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
 Legal status of the legal person/entity
through proper and relevant documents
 Verification that any person purporting to
act on behalf of the legal person/entity is
so authorized and identity of that person
is established and verified
 Understand the ownership and control
structure of the customer and determine
who are the natural persons who ultil-
mately control the legal person (benefi-
cial owners)
 Wherever applicable, information on the
nature of business activity, location, mode
of payments, volume of turnover, social
and financial status etc. will be collected
for completing the profile of the cus-
tomer.
 Our Bank has been observing 1st August of
every year as the "KYC compliance and Fraud
Prevention Day" in order to create awareness
about KYC compliance and fraud prevention,
both among the staff and the public.
 KYC COMPLIANCE FOR EXISTING ACCOUNTS
All the accounts including those accounts
opened before the implementation of the KYC
guidelines are also to be made KYC compliant,
as per RBI guidelines, by obtaining documents
to prove the identity and address of the cus-
tomer. Revised KYC guidelines are applicable
to all new as well as existing accounts, transac-
tions like remittances, new technology initia-
tives like on-line banking, Debit cards, corres-
pondent transactions, wire transfers, NEFT,
RTGS, etc.
 RBI has stipulated that banks should impose
‘partial freezing’ - i.e. restricting debit transac-
tions on KYC non-compliant accounts in a
phased manner.
While imposing ‘partial freezing’, banks are ad-
vised to ensure that the option of ‘partial freezing’
is exercised only after giving due notice of three
months initially to the customers to comply with
KYC requirement, followed by a reminder, giving
due notice for a further period of three months.
Thereafter, banks may impose ‘partial freezing’ by
allowing credits and disallowing debits.The cus-
tomers would also have the option to close the
accounts.
If the accounts are still KYC non-compliant after
six months of imposing initial ‘partial freezing’,
banks may disallow credits also, rendering them
SBLC DEOGHAR
inoperative. Further, it would be open to the
banks to close the accounts of such customers
(e.cir:960/2014-15 dt: 12/11/2014)
The position has since been reviewed and it has
been decided to follow the course of action men-
tioned below:-
a) Only one letter need be sent as per enclosed
format. The same will be deemed as a reminder to
the letter(s) earlier sent to the KYC deficient ac-
count holders as mentioned in para 2.
b) No notices need be sent to CIFs where only
TDR/STDR/PPF accounts are tagged. However, the
operating functionaries should ensure to identify
the customers as per KYC guidelines while making
payment of these deposits before maturity or on
due date.
c) The notices will be generated by GITC, Belapur
and will be placed in the report folders for dis-
patch by the respective branches.
(e.cir:1228/2014-15 dt:19/01/2015)
Risk Categorisation: The revised list of classifica-
tion of customers/groups of customers, under
different category of risk,
(e.cir.sl.no.471/2014 – 15 dt:31/07/2014)
Accounts pertaining to Central/State Govern-
ments, PSUs and JVs with Govt., Regulators, FIs,
Statutory Bodies, salaried persons/pensioners of
these organizations, “Small Accounts” and any
product(s) that are specifically mandated to be
opened under “Low Risk”, are to be assigned, ab-
initio (from the beginning), Low Risk.
Low Risk:-
1. Salaried Employees (whose salary is well de-
fined)
2. Customer belonging to lower economic strata,
accounts opened under financial inclusion
3. NGOs/NPOs promoted by UN or its agencies.
4. Government owned Companies/ Departments
and (State/Central), PSUs, JVs with Govt., Regula-
tors, FIs, Statutory bodies etc.
5. All customers not classified either as
High/Medium Risk Categories
6. Individual Account holder with Credit/debit
summations below ₹50 lacs per annum
7. Non Individual account holders with credit
debit summations below ₹2 crores per annum.
Medium Risk :-
1. New customers (CIFs) opened under Low Risk
while onboarding, during first 180 days of opening

KYC & AML GUIDELINES
Updated up to 31st October 2016
the account, except those pertaining to Cen-
tral/State Governments, PSUs and JVs with Govt.,
Regulators, FIs, Statutory Bodies, salaried per-
sons/pensioners of these organizations, “Small
Accounts” and any product(s) that are specifically
mandated to be opened under Low Risk.
2. Non-Bank Financial Institution
3. Stock Brokers
4. Import/Export customers
5. Telemarketers
6. Pawn Shops
7. Auctioneers
8. Venture Capital Companies
9. All In-operative accounts
10. Individual Account holder with Credit/debit
summations of ₹50.00 lacs to below ₹2.00 Crores
per annum
11. Non Individual account holders with credit
debit summations of ₹2.00 crores to below ₹10.00
Crores per annum
High Risk:-
1. Politically Exposed person of foreign origin
2. Bullion Dealers/jewellers
3. Non Resident Customers (NRIs)
4. Trust Charities, NGOs & Organisations receiving
donations from India & abroad
5. Non Face-to-Face Customers
6. Customers domiciled in/having transactions
with High Risk Countries
7. Firms with Sleeping partners
8. Companies having close family shareholding
9. Multi-Level Marketing Companies
10. Accounts of Mules
11. Customers of dubious reputation
12. High Net worth Individuals - Individuals with
total deposits of Rs.1.50 Crores or more
13. Pooled Accounts
14. Individual/entities involved in
fraud/forgery/anti national activity / terrorism /
tax evasion/insider trading may be classified as
High Risk
15. Account opened/operated by Power of Attor-
ney Holders
16. Individual Account holder with Credit/debit
summations of Rs.2.00 crores & more per annum
17. Non Individual account holders with credit
debit summations of Rs.10.00 crores & more per
annum
18. Customer accounts where STR has already
been filed with FIU
QUICK SUCCESS SERIES
 Bank has set up AML/CFT Cell (earlier knows as
KYC AML CELL), at Jaipur. It will be analyzing the
alerts on transactions handled across the Bank
with the help of AMLOCK software acquired from
M/s 3i-Infotech for eventual generation of Suspi-
cious Transactions Reports (STRs), it is required,
to be submitted to the Financial Intelligence Unit
India (FIU-IND) by the Principal Officer (KYC/AML).
 PRM (Proactive Risk Manager) software has been
implemented at the PRM Cell, Jaipur, to analyse
transactions to strengthen fraud control system.
 Presently PRM Cell is analysing alerts, based on
ATM / POS / e‐Com transactions, generated on
various business rules built in the software.
TRANSACTION THRESHOLDS FOR FILTERING
TRANSACTIONS FOR GENERATION OF ALERTS
 Bank has decided to fix following thresholds,
subject to review from time to time, for filtering
transactions and generating STR alerts.
Low Risk - Rs.50.00 lacs
Medium Risk - Rs.30.00 lacs
High Risk - Rs.10.00 lacs
Monitoring of transactions for the purpose of ge-
nerating Suspicious Transaction Reports (STR) is
being done with the help of AMLOCK software,
 Subjective STRs: Subjective STRs are those which
are escalated, based on alerts or information re-
ceived from Branches / staff / media reports / law
enforcement agencies etc.
 All transactions mentioned below have to be
recorded in separate register.
any
 Cash withdrawals and deposits for Rs 10 lacs and
above.
 Its equivalent in foreign Currency.
 Where series of Cash transactions integrally
connected to each other and within a month the
aggregate value of cash transactions exceed Rs
10 Lakh.
 CTR (Cash Transaction) Report regarding transac-
tions of ₹10 lac and above in an account are gen-
erated by CDC Belapur itself and reported to FIU-
IND on monthly basis.
 An AML software called AMLOCK is being used by
the Bank for triggering alerts, the Branches should
also escalate Suspicious Transaction Reports
SBLC DEOGHAR
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
(STRs) in respect of suspicious transactions which identity of the owner of the account/funds due to
come to their notice.STR (Suspicious Transaction) any professional obligation of customer confiden-
Report - Branches are required to record and re- tiality For proprietary concerns accounts, the
port all transaction of suspicious nature to LHO branches should obtain any two of the below
through their controller as it has to be reported documents in the name of proprietary concern:-
by Corporate Centre to the Director, FIU-IND. Proof of the name, address and activity of the
 Counterfeit Currency Reports (CCRs): All instances concern like registration certificate (in the case of
of counterfeit currency and forgery of valuable a registered concern), certificate/license issued by
security and documents are to be submitted to the Municipal authorities under Shop & Estab-
FIU-IND through the Principal Officer. lishment Act, sales and income tax returns,
CST/VAT certificate, certificate/registration doc-
 SUSPICIUS TRANSACTIONS : SCRUTINY OF UN- ument issued by Sales Tax/Service
USUAL TRANSACTIONS : Tax/Professional Tax authorities, License issued by
 the Registering authority like Certificate of Prac-
Particular of Transactions Scrutiny By tice issued by Institute of Chartered Accountants
Cash Transac- Transfer trac- Senior Asstt. For of India, Institute of Cost Accountants of India,
tions upto tions upto transactions han- Institute of Company Secretaries of India, Indian
Rs.50,000/= Rs.1,00,000/ dled by him Medical Council, Food Drug and Control Authori-
= ties etc. of proprietary concern, registra-
tion/licensing document issued in the name of
Cash transac- Transfer Senior Special
proprietary concern by the Central Government
tions upto transaction Assistant for
or State Government Authority/Department. Im-
Rs.1,00,000/= upto transactions han-
porter Exporter Code issued to the proprietary
Rs.4,00,000/ dled by him.
concern by the office of DGFT as an identity doc-
=
ument for opening of bank account. Branches
Cash transac- Transfer Manager of Divi-
must report counterfeit Currency notes by way of
tions upto transactions sion/Ser. Manag-
Counterfeit Currency Reports to the Principal Of-
Rs.2,00,000/= upto er /B.M for all
ficer (KYC/AML) through the Circle Dy. General
Rs.5,00,000/ such transactions
Manager & CCFO and Money Laundering Report-
= not scrutinized by
ing Officer and Suspicious Transactions by way of
any of the above.
Suspicious Transaction Reports (STRs) to the Prin-
cipal Officer (KYC/AML) through the Circle Dy.
 In terms of the PMLA records of Cash transac- General Manager & CCFO and Money Laundering
tions of Rs. 10 lacs and suspicious transactions are Reporting Officer.
required to be maintained for a period of 10 CUSTOMER IDENTIFICATION REQUIREMENTS
years. INDICATIVE GUIDELINES
(e.cir.sl.no.472/2014 – 15 dt: 31/07/2014)
 For customers of PEP Politically Exposed persons
category branches should obtain senior manage- RBI has issued instructions simplifying the re-
ment approval to establish and continue the busi- quirement of submission of ‘proof of address’ as
ness relationship and subject the account of the follows:
customer due diligence. a) Henceforth, customers may submit only one
documentary proof of address (either current or
 The above norms should also be applied to the permanent) while opening a bank account or
accounts of the family members and close rela- while undergoing periodic updation. In case the
tives of PEPs address mentioned as per ‘proof of address’ un-
dergoes a change, fresh proof of address may be
Branches should not allow opening and/or holding submitted to the branch within a period of six
of an account on behalf of a client/s by profes- months.
sional intermediaries, like Lawyers and Chartered b) In case the proof of address furnished by the
Accountants, etc., who are unable to disclose true customer is not the local address or address

SBLC DEOGHAR
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
where the customer is currently residing, the bank
may take a declaration of the local address on
which all correspondence will be made by the
bank with the customer. No proof is required to
be submitted for such address for correspon-
dence/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. In the event of change in this ad-
dress due to relocation or any other reason, cus-
tomers may intimate the new address for corre-
spondence to the bank within two weeks of such
a change.
RBI has also advised that henceforth, only six
documents viz, Passport, PAN Card, Driving Li-
cence, Voter Identity Card, Aadhaar Letter and
NREGA Card, which have been notified as ‘offi-
cially valid’ documents, can be accepted as proof
of identity and proof of address. The discretion
given to the Banks to accept documents other
than the RBI specified documents has been with-
drawn. There will be no separate list of docu-
ments which can be accepted as proof of identity
and proof of address.
In case of Low risk customers, RBI permits apply-
ing simplified measures taking into consideration
the type of customer, business relationship, na-
ture and value of transactions based on overall
money laundering and terrorist financing risks.
Where simplified measures are applied, the fol-
lowing documents (any one) are deemed to be
the ‘officially valid’ documents. In our Bank, sim-
plified measures will be applicable, for the pre-
sent, only to “Small Accounts” opened under
product code 1011-1601 until further instructions
are issued in this regard.
i) Identity card with applicant’s photograph issued
by Central/State Govt. Depart-
ments/Statutory/Regulatory Authorities, Public
Sector Undertakings, Scheduled Commercial
Banks and Public Financial Institutions.
ii) Letter issued by gazetted officer, with a duly
attested photograph of the person.
Customer Identification Procedure (CIP)
(e Cir. SL127/2016-17 dated 28.04.16)
 Introduction should not be sought while open-
ing accounts.
 The customers should not be required to fur-
nish an additional Officially Valid Document
SBLC DEOGHAR
(OVD), if the OVD submitted by the customer
for KYC contains both proof of identity and
proof of address.
 The customers should not be required to fur-
nish separate proof of address for permanent
and current addresses, if these are different. In
case the proof of address furnished by the cus-
tomer is the address where the customer is
currently residing, a declaration shall be
taken from the customer about her/his lo-
cal address on which all correspondence
will be made by the Bank.
 TRUST/NOMINEE OR FIDUCIARY ACCOUNTS
While opening a Trust account, branches should
take reasonable precautions to verify the identity
of the trustees and the settlers of trust (including
any person settling assets into the trust), guaran-
tors, protectors, beneficiaries and signatories. In
the case of a 'foundation', steps should be taken
to verify the founder managers/directors and the
beneficiaries.
 ACCOUNTS OF COMPANIES AND FIRMS
Details of registration of companies should be
verified through company master data from Min-
istry of Corporate Affairs, Govt. of India website
www.mca.gov.in (MCA – 21) wherever available,
in addition to verification of Copies of KYC docu-
ments from the originals thereof branches should
examine the control structure of the entity, de-
termine the source of funds and identify the per-
sons who have a controlling interest and who
comprise the management with a view to guard
against entering into relationship with business
entities being used by individuals as a 'front' for
maintaining accounts with banks.
 CLIENT ACCOUNTS OPENED BY PROFESSIONAL
INTERMEDIARIES
Branches may exercise enhanced due diligence at
the time of opening accounts by intermediaries
such as guardians of estates, executors, adminis-
trators, assignees, receivers etc. e.g : while open-
ing the account of an administrator of the state, it
would be necessary to examine the Letter of Ad-
ministration (Authority) as it would give a clear
picture of the assets of the estate.
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
 SELF HELP GROUPS: In order to address the
difficulties faced by Self Help Groups (SHGs) in
complying with KYC norms while opening savings
bank accounts and credit linking of their accounts,
it has been decided by RBI to simplify certain
norms for SHGs. Accordingly, KYC verification of
all the members of SHG need not be done while
opening the savings bank account of the SHG;
KYC verification of all the office bearers would
suffice. As regards KYC verification at the time of
credit linking of SHGs, ( since KYC would have al-
ready been verified while opening the savings
bank account and the account continues to be in
operation and is to be used for credit linkage) no
separate KYC verification of the members or office
bearers is necessary.
 ACCOUNTS OF POLITICALLY EXPOSED PERSONS
Politically exposed persons are individuals who
are or have been entrusted with prominent public
function in a foreign country, e.g. Heads of States
or of Governments, senior politicians, senior gov-
ernment/judicial/military officers, senior execu-
tives of state owned corporations, important po-
litical party officials, etc. Branches should gather
sufficient information on any person/customer of
this category intending to establish a relationship
and check all the information available on the
person in the public domain. Branches should ve-
rify the identity of the person and seek informa-
tion about the sources of funds before accepting
the PEP as a customer. Branches should open
such accounts with the approval of controllers in
respect of branches / BPR outfits headed by offi-
cials of Junior Management/Middle Management.
In respect of branches / BPR outfits headed by
officers of Senior Management and above, such
approval should be accorded by the
branch/operating unit head in person.
Such accounts should be subjected to enhanced
monitoring on an ongoing basis. The above norms
should also be applied to the accounts of the
family members and close relatives of PEPs.
 ACCOUNTS OF NONFACE TO FACE CUSTOMERS
With the introduction of telephone and electronic
banking, increasingly accounts are being opened
by banks for customers without the need for the
SBLC DEOGHAR
customer to visit the bank branch. In the case of
non face to face customers, apart from applying
the usual customer identification procedures,
there must be specific and adequate procedures
to mitigate the higher risk involved. Certification
of all the documents presented should be insisted
upon and, if necessary, additional documents may
be called for. In such cases, banks may also re-
quire the first payment to be effected through the
customer’s accounts with another bank which, in
turn, adheres to similar KYC standards. In the case
of cross border customers, there is the additional
difficulty of matching the customer with the do-
cumentation and the bank may have to rely on
third party certification/introduction. In such cas-
es, it must be ensured that the third party is a re-
gulated and supervised entity and has adequate
KYC systems in place as responsibility for correct-
ness of identity/residence proof lies with the
branch monitoring such account or handling the
transaction. Non face to face customers are those
with whom the Branch has no direct interaction at
the time of opening the account e.g. NRI custom-
ers who opened the account without visiting the
branch. Branches should insist on certification of
documents for photo ID and proof of residence by
either of the following: (i) Banker (ii) Notary Public
(iii) Indian Embassy (iv) A person known to Bank
whose signatures are verifiable from Bank’s
Records
 NO FRILLS ACCOUNTS (Product withdrawn
vide e-cir.no:776/2012-13 dt:10/10/2013)
In case a customer visits the Branch with an in-
tention to open a No-frills Account he/she may
be suitably appraised with the details of Basic
Savings Bank Deposit Account and Small Ac-
count and his/her account should be opened
under one of the product codes mentioned
(based on the KYC documents available): i. Ba-
sic Savings Bank Deposit Account - 1011 1701.
ii. Small Account - 1011 1601
 ACCOUNTS WITH INTRODUCTION:
With a view to prevent denial of banking ser-
vices and ensuring financial inclusion of per-
sons, especially those belonging to low income
group both in urban and rural areas, who are
not able to produce the specified documents
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
required by the Bank to satisfy about their
identity and address, branches may open ac-
counts of such persons (natural persons only)
with relaxed KYC standards as per details given
below.
 Persons desirous of opening such accounts can
keep aggregate balances not exceeding ₹
50,000/- (Rupees fifty thousand only) in all
their accounts taken together and the total
credit, again in all accounts taken together,
should not exceed ₹1,00,000/- (Rupees one lac
only) in a year. If at any point, the balances in
all his/her accounts with the Bank (taken to-
gether) exceeds ₹50,000/- (Rupees fifty thou-
sand only) or total credit in all accounts taken
together exceeds ₹1,00,000/- (Rupees one lac
only) in a year, no further transactions will be
permitted until full KYC procedure is com-
pleted. Branches should notify the customers
when the balances reach ₹40,000/- (Rupees
forty thousand only) or total credit in a year
reaches ₹80,000/- (Rupees eighty thousand
only) so that appropriate documents, for com-
plying with full KYC requirements are submit-
ted well in time to avoid blocking of transac-
tions in the account.
 Such Deposit accounts may be opened by
branches after complying with relaxed KYC re-
quirements by accepting documents as under
:- a) introduction from another account holder
who has been subjected to full KYC procedure.
The introducer’s account with the Bank should
be at least six months old and should show sa-
tisfactory transactions / have no unsatisfactory
/ irregular features apparent. Photograph of
the customer who proposes to open the ac-
count and also his address needs to be certi-
fied by the introducer. or b) For prospective
customers at villages, Kisan Bahi/Kisan Pass-
book, issued by the Revenue authorities, and
containing photograph/address of the land
holder can be accepted as valid document. or
c) Any other document as to the identity and
address of customer to the satisfaction of the
Bank.
 While opening accounts as described above,
the customer should be made aware that if at
any point of time, the balances in their ac-
SBLC DEOGHAR
counts with the Bank (taken together) and the
total credit (summation) exceeds the above
threshold, no further transactions will be per-
mitted until full KYC procedures are com-
pleted.
 SMALL ACCOUNT:
'small account' means a savings account in a
banking company where:- (i) the aggregate of
all credits in a financial year does not exceed
rupees one lakh; (ii) the aggregate of all with-
drawals and transfers in a month does not ex-
ceed rupees ten thousand; and (iii) the balance
at any point of time does not exceed rupees
fifty thousand.
 INDIVIDUAL NRE ACCOUNTS:
Accounts to be opened on the basis of the fol-
lowing documents: Passport and Residence Vi-
sa Copies, duly attested by (i) Banker (ii) Notary
Public (iii) Indian Embassy (iv) A person known
to the Bank. i.e Other account holders (v) Self
 ACCOUNTS OF MINORS:
Often a family member or guardian would
open an account for a minor. If minor is less
than 10 years of age, ID proof of the person
who will operate the account is to be obtained.
In cases where minor can operate the account
independently, KYC procedure for identifica-
tion/address verification as in the case of any
other individual would apply.
Foreign students coming to India would be
considered as “non-resident” and a resident
account cannot be opened for them.”(e-
cir:1176/2013-14 dt:28/01/2014)
 ACCOUNTS OF INDIVIDUALS:
 The customer identification will be on the basis of
documents provided by the customer as (a) proof
of identity and (b) proof of address. Prescribed
application form along with Photographs of the
customer is to be invariably obtained in all cases.
 Proof of identity and address required at the
time of opening of the account of an individual:
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
As per Rule 9 of the PML Amendment Rules 2013,
any one document from the “Officially Valid
Documents” is only allowed. They are
(i) Passport
(ii) Driving License
(iii) Permanent Account Number (PAN) Card (au-
thenticity to be invariably cross checked with
CBDT web site before opening the account)
(iv) Voter’s Identity Card issued by Election Com-
mission of India,
(v) Job Card issued by NREGA duly signed by an
officer of the State Government
(vi) The letter issued by Unique Identification Au-
thority of India (UIDAI) containing details of name,
address and Aadhaar Number
It is implied that proof of address also follows
from the above documents only.
 Only the documents mentioned above would be
accepted for opening of accounts of individuals.
Bank does not have the discretion to accept any
other document.
 Document accepted for proof of identity should
be verified through internet using website of pub-
lic/concerned authority wherever such informa-
tion is available online.
 OTHER THAN INDIVIDUAL ACCOUNTS:
Besides prescribed application forms and photo-
graphs of persons who will be operating the ac-
count, following documents are also to be ob-
tained:
 COMPANIES:
Memorandum and Articles of Association Certifi-
cate of Incorporation, Certificate of commence-
ment of business (wherever applicable), A copy of
the resolution of the Board of Directors for open-
ing of the Account, and Identification of those
who have authority to operate the account
 SOCIETIES/ASSOCIATIONS/CLUBS :
Resolution for opening of the account a copy of
Byelaws Copy of Certificate of Registration in the
case of Registered Clubs Societies and Associa-
tions. Proof of Identification of the office bearers
who are opening and operating the account.
SBLC DEOGHAR
 HINDU UNDIVIDED FAMILY (HUF):
HUF comes into being because of a particular con-
cept under Hindu Law whereby all the members
of the family reside together jointly, carry on a
business activity jointly and hold the property
jointly and therefore, it is termed as Hindu Undi-
vided Family. Declaration from the Karta. Proof
of Identification of Karta. Prescribed Joint Hindu
Family Letter signed by all the adult coparceners.
 TRUST/NOMINEE OR FIDUCIARY ACCOUNTS
There exists the possibility that trust/nominee or
fiduciary accounts can be used to circumvent the
customer identification procedures. Bank should
determine whether the customer is acting on be-
half of another person as trustee/nominee or any
other intermediary. If so, bank should insist on
receipt of satisfactory evidence of the identity of
the intermediaries and of the persons on whose
behalf they are acting, as also obtain details of the
nature of the trust or other arrangements in
place. While opening an account for a trust, bank
should take reasonable precautions to verify the
identity of the trustees and the settlers of trust
(including any person settling assets into the
trust), grantors, protectors, beneficiaries and sig-
natories. Beneficiaries should be identified when
they are defined. In the case of a ‘foundation’,
steps should be taken to verify the founder man-
agers/directors and the beneficiaries, if defined.
 ACCOUNTS OF COMPANIES AND FIRMS: Banks
need to be vigilant against business entities being
used by individuals as a ‘front’ for maintaining
accounts with banks. Banks should examine the
control structure of the entity, determine the
source of funds and identify the natural persons
who have a controlling interest and who comprise
the management. These requirements may be
moderated according to the risk perception e.g. in
the case of a company listed in a stock exchange it
will not be necessary to identify all the beneficial
owners/shareholders. Details of registration of
companies should be verified through company
master data from Ministry of Corporate Affairs,
Govt. of India website www.mca.gov.in (MCA –
21) wherever available, in addition to verification
of copies of KYC documents from the originals
thereof.
 PROPRIETARY CONCERNS
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
While obtaining prescribed documents for open-
ing of accounts of proprietary concerns, the bank
should take reasonable measures to identify the
beneficial owner (s) and verify his/her/their iden-
tity in a manner so that it is satisfied that it knows
who the beneficial owner(s) is/are. Accordingly,
apart from above mentioned customer identifica-
tion procedure, branches should call for and verify
the following documents before opening of ac-
counts in the name of proprietary concern:- i)
Proof of the name, address and activity of the
concern like registration certificate (in the case of
a registered concern), ii) certificate/license issued
by the Municipal authorities under Shop & Estab-
lishment Act, iii) sales and income tax returns, iv)
CST/VAT certificate, certificate/registration doc-
ument issued by Sales Tax/Service
Tax/Professional Tax authorities, v) License issued
by the Registering authority like Certificate of
Practice issued by Institute of Chartered Accoun-
tants of India, Institute of Cost Accountants of
India, Institute of Company Secretaries of India,
Indian Medical Council, Food Drug and Control
Authorities, vi) registration/licencing documents
issued in the name of the proprietary concern by
the Central Government or the State Government
Authority/Department. vii) Banks may also accept
IEC (Importer Exporter Code) issued to the pro-
prietary concern by the office of DGFT as an iden-
tity document for opening of the Bank account.
 Any two of the above documents would suffice.
These documents should be in the name of the
proprietary concern.
 These guidelines will apply to all new customers,
as well as accounts of existing customers. The KYC
documents as per these guidelines for the existing
accounts should be obtained and the KYC particu-
lars are updated.
 NRI customers are classified as “High Risk Cus-
tomer” and therefore it is necessary to carry out
KYC re-check for this segment at the periodicity of
every two years, as per the Regulatory require-
ment. Presently, NRI customers can submit fresh
documents for e-KYC as per following: a. Custom-
ers visiting the branch in person: KYC documents
viz- Proofs of Identity and Overseas address proof
etc have to be submitted across the counters.
SBLC DEOGHAR
 b. Customers not visiting the branch: The KYC
documents have to be sent to the home branch
through post or courier from overseas. Additional-
ly, third party attestation of all the requisite KYC
documents is also required. Each of the single /
joint NRI account holder has to submit following
additional document in addition to the proofs of
identity and overseas address as part of KYC doc-
uments: The NRI should be a resident of any of
the listed 30 (thirty) countries only
(e.cir.sl.no:1447/2014-15 dt:16/03/2015)
 Key features of KYC due diligence for NRIs are
mentioned below:
a) The KYC due diligence will entail obtention of
“Proof of Status”, “Proof of Identity”, “Proof of
Permanent Address (either of Overseas or In-
dian)” and “Current Address document (overseas
only)”. The customer has the liberty to indicate
one of these addresses as the address for corres-
pondence. For customers not visiting our
branches i.e. non- face to face customers, an addi-
tional proof will be needed.
b) In case of NRIs/PIOs/OCIs, they will mandatorily
give copy of their passport for “Proof of Identity”,
and the same document can also be accepted for
“Proof of Permanent Address” (provided there is
no change in permanent address). In case they
want to give permanent address other than the
one appearing in Passport, then any of the Offi-
cially Valid Document (OVD) carrying the address
should be obtained.
(e.cir.sl.no:103/2015-16 dt:22/04/2015
 The e-KYC auto population functionality has since
been rolled out in the Branch as well as to our
Business Correspondent (BC) Kiosk Banking chan-
nel across the country.
 A periodic report of all KYC non-compliant NRI
CIFs for every branch and a cumulative report for
controllers, on the monthly basis, as described
below:
I. Report for branches:
a. Name of this report will be as, “KYCNRI <num-
ber of report> - NRI KYC Branch wise Report.pdf’
b. This report has to be downloaded by the
branch from
https://sbedwp.statebanktimes.in/SBIEDW/, by
entering valid credentials of the concerned branch
official (HRMS credential with appropriate privi-
leges) c. Report will be uploaded by 17th of every
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
month for the ‘KYC non-compliant NRI CIFs’ as on
the last day of previous month.
II. Report for controllers:
a. Name of this report will be as, “NON KYC NRI
DATA for Controllers as on <month name>”
b. Report will be uploaded by 17th of every
month for the ‘KYC non-compliant NRI CIFs’ as on
the last day of previous month.
c. This report can be downloaded from
http://10.0.10.22/pr/newindexh.jsp
 “Money Mules” can be used to launder the
proceeds of fraud schemes (e.g. phishing and
identity theft) by criminals who gain illegal access
to deposit accounts by recruiting third parties to
act as “money mules.” In some cases these third
parties may be innocent while in others they may
be having complicity with the criminals.
 In a money mule transaction, an individual with a
bank account is recruited to receive cheque de-
posits or wire transfers and then transfer these
funds to accounts held on behalf of another per-
son or to other individuals, minus a certain
commission payment. Money mules may be re-
cruited by a variety of methods, including spam
emails, advertisements on genuine recruitment
web sites, social networking sites, instant mes-
saging and advertisements in newspapers. When
caught, these money mules often have their
bank accounts suspended, causing inconvenience
and potential financial loss, apart from facing
likely legal action for being part of a fraud. Many
a times the address and contact details of such
mules are found to be fake or not up to date,
making it difficult for enforcement agencies to
locate the account holder.
 The operations of such mule accounts can be
minimized by following the guidelines on open-
ing of accounts and monitoring of transactions. It
is, therefore, advised to strictly adhere to the
guidelines on KYC/AML/CFT issued from time to
time and to those relating to periodical updation
of customer identification data after the account
is opened and also to monitoring of transactions
in order to protect the bank and the bank’s cus-
tomers from misuse by such fraudsters. The of-
ficer-in-charge vested with the authority to open
the account, should ensure compliance with the
KYC guidelines. The employee/officer, who has
interviewed the customer should subscribe his
SBLC DEOGHAR
signature, in the space provided in the account
opening form, for having interviewed the pros-
pective customer and should ensure that all as-
pects of KYC guidelines are complied with.
 BUSINESS CORRESPONDENTS (BCs)/BUSINESS
FACILITATORS (BFs) Bank has established alter-
nate channels for personal banking and rural
banking and has appointed above functionaries
to facilitate assigned activities. These functiona-
ries will have inter alia, role in KYC/AML/CFT
measures implementation which has been spelt
out here under :- 1) Business Correspondents
(BCs) Will facilitate filling up of account opening
forms, procurement of KYC documents, photo-
graph etc. and put up to the home Branch 2)
Business Facilitators (BFs) where the account will
reside. Necessary verification will be done at
Home branch. It is pertinent to mention that
while functionaries of alternate channels will fa-
cilitate completion of KYC formalities in respect
of accounts opened through them, primary re-
sponsibility of ensuring KYC compliance in re-
spect of all accounts maintained with it including
review of KYC, risk categorization, monitoring of
transactions etc. will rest with the parent branch.
 CUSTOMER PROFILE:
For the purpose of monitoring individual trans-
actions in accounts, “Customer Profile” of indi-
vidual account holders should be compiled in
the account opening forms, covering the fol-
lowing information:- (i) Occupation (ii) Source
of funds (iii) Monthly Income (iv) Annual turn-
over (in the case of business) (v) Date of Birth
(vi) Educational qualification (vii) Details of ex-
isting credit facilities, if any (viii) Assets (ap-
proximate value). - Customer profiles to be
prepared for all accounts. Customer profiles
have to be reviewed whenever the branch has
doubt about the authenticity/veracity or the
adequacy of the previously obtained customer
identification data. For opening accounts by
transfer from other branches the customer
profile should be updated. While transferring
accounts from inoperative accounts and dor-
mant accounts to live ledger, it should be en-
sured that KYC guidelines are complied with.
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
 A built in system level restrictions has been
made to prevent issue of demand drafts, bank-
ers cheques, NEFT/RTGS for value ₹ 50,000/-
and above against cash
 Using of internal accounts as a parking account
for own customers’/ walk-in-customers’ cash
transactions which involved purchase of DDs,
sale of gold coin etc. for amounts above
₹50,000/- is prohibited.
 RBI guidelines on KYC norms stipulate all ac-
counts in the Bank to be KYC compliant (sup-
ported by documents which establish proof of
identity and proof of current address and a re-
cent photograph of the customer) irrespective
of the duration a customer has already been
banking with the Bank.
 The Customer Identification Procedures are
to be carried out at the following stages:-
(e-cir. Sl.no: 840/2014-15 dt:14/10/2014)
 while establishing a banking relationship;
 When the bank feels it is necessary to obtain
additional information from the existing custom-
ers based on the conduct or behaviour of the ac-
count.
 Customer identification data (including photo-
graph/s) should be periodically updated after the
account is opened.
 Full KYC exercise will be required to be done at
least every two years for high risk individuals and
entities.
 Full KYC exercise will be required to be done at
least every ten years for low risk and at least
every eight years for medium risk individuals and
entities.
 Positive confirmation (obtaining KYC related
updates through email /letter/telephonic conver-
sation /forms/interviews/visits, etc.), will be re-
quired to be completed at least every two years
for medium risk and at least every three years for
low risk individuals. Such updation should be done
irrespective of whether the account has been
transferred from one branch to another, from the
date of opening of the account/ last verification of
KYC and branches should maintain records of
transactions as prescribed.
 Customer Identification will also be carried out in
respect of non account holders approaching bank
SBLC DEOGHAR
for high value transactions as well as any person
or entity connected with a financial transaction
which can pose significant reputational or other
risks to the Bank.
 Letters of Thanks in all instances of opening of
new accounts to be sent by registered post at the
recorded addresses to all customers with dual
purpose of thanking them for opening the ac-
count with the Bank and for verification of genu-
ineness of address furnished by the account
holder. Undelivered envelopes in this regard
would be required to be followed-up closely at
branch / CPC level and proper noting is to be
made in the formalities register at the branches.
Copies of letters are to be kept on record.
 When signatories change, care should be taken to
ensure that the identity of any new signatories
has been verified.
 A number of cheque books are being returned as
undelivered due to the recipient’s address being
incorrect. The customer, while applying for a che-
que book has the option of requesting the deli-
very of the cheque book at the address recorded
in CBS or on any other address of his choice. The
cheque book requisition slip provided in the che-
que book gives the account holder two options for
entering the address for dispatch –
Address alongside – which is the address recorded
in the CBS
Address given overleaf – which the account hold-
er needs to write overleaf in case he wishes to
take the delivery of the cheque book at any other
address of his choice.
 KYC once done by one branch of the bank should
be valid for transfer of the account within the
bank as long as full KYC had been done for the
concerned account. The customer should be al-
lowed to transfer his account from one branch to
another branch without restrictions. The existing
accounts at a branch may be transferred to the
transferee branch without insisting on fresh proof
of address and on the basis of a self-declaration
from the account holder about his/her current
address. Branches shall intimate the customers
that in the event of change in address due to relo-
cation or any other reason, they should intimate
the new address to the bank within two weeks of
such a change. While opening new accounts and
while periodically updating KYC data as required
in terms of RBI instructions in this regard an un-
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
dertaking to this effect should be obtained by
branches.
 Transfer of Non –KYC Compliant
 Accounts-In accounts where KYC is incomplete,
the customer should be allowed to submit the
necessary KYC documents at the transfe-
ror/transferee branch as per his convenience. If
documents are submitted at the transferee
branch, it may verify and send the scanned copies
of these documents, through its official email, to
the transferor branch to enable it to transfer the
account as requested by the customer.
TRANSFER OF INOPERATIVE ACCOUNTS :
Inoperative Accounts should be made operative
before its transfer to the transferee branch.
Therefore, transferee branch should ensure that
account is made operative by customer before
submitting tha application for transfer of account
 The Mental Health Act, 1987 provides for a law
relating to the treatment and care of mentally
ill persons and to make better provision with
respect to their property and affairs. According
to the said Act, “mentally ill person” means a
person who is in need of treatment by reason
of any mental disorder other than mental re-
tardation. Sections 53 and 54 of this Act pro-
vide for the appointment of guardians for
mentally ill persons and in certain cases, man-
agers in respect of their property. The pre-
scribed appointing authorities are the district
courts and collectors of districts under the
Mental Health Act, 1987.
 The National Trust for Welfare of Persons with
Autism, Cerebral Palsy, Mental Retardation
and Multiple Disabilities Act, 1999 provides for
a law relating to certain specified disabilities.
Clause (j) of Section 2 of that Act defines a
“person with disability” to mean a person suf-
fering from any of the conditions relating to
autism, cerebral palsy, mental retardation or a
combination of any two or more of such condi-
tions and includes a person suffering from se-
vere multiple disabilities. This Act empowers a
Local Level Committee to appoint a guardian,
to a person with disabilities, who shall have
the care of the person and property of the dis-
abled person.
SBLC DEOGHAR
 Banks should take note of the legal position
stated above and may rely on and be guided
by the orders/certificates issued by the compe-
tent authority, under the respective Acts, ap-
pointing guardians/managers for the purposes
of opening/operating bank accounts. In case of
doubt, care may be taken to obtain proper le-
gal advice.
 “In terms of Section 2(v) of FEMA 1999, definition
of a person resident in India does not include a
person who has come to or stays in India for any
purpose which would indicate his stay for a defi-
nite period. Accordingly, foreign students coming
to India would be considered as “non-resident”
and a resident account cannot be opened for
them.”
(e.cir.sl.no1176/2013 – 14 dt:28/01/2014))
 NRI SERVICES: INTRODUCTION OF ONLINE AC-
COUNT APPLICATION FACILITY FOR OPENING
NRE/NRO SAVINGS BANK ACCOUNT: The appli-
cant has to post/courier duly attested account
opening form along with attested copies of KYC
documents to the respective LCPC and it should
reach LCPC in the time period of 45 days from the
date of online submission of information, failing
which the application will be discarded. The cus-
tomer will have the option of choosing the branch
for opening his / her account and based on this
choice he/she will be advised to courier docu-
ments to the mapped LCPC. The KYC verification
will be done by the LCPC as mentioned in Annex-
ure ‘B’. After due diligence, the LCPC will open the
account in CBS and carry out further processing as
per extant guidelines. In case the documents are
not in order then the same will be returned to the
branch chosen by the NRI for opening of his ac-
count and then it will be followed up by the
branch for completion of documents.
(e.cir.sl.no1214/2013 – 14 dt:06/02/2014)
 RBI guidelines on KYC/AML/CFT measures provide
that letter issued by the Unique Identification Au-
thority of India (UIDAI) containing details of name,
address and Aadhaar number can be accepted as
an ‘Officially Valid Document’. Physical Aadhaar
card/letter issued by UIDAI containing details of
name, address and Aadhaar number received
through post would continue to be accepted as an
‘Officially Valid Document’.
(e.cir.sl.no.1380/2013 – 14 dt:21/03/2014)
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
 In order to reduce the risk of identity fraud,
document forgery and have paperless KYC verifi-
cation, UIDAI has launched its e-KYC service. RBI
guidelines permit acceptance of e-KYC service as a
valid process for KYC verification under Preven-
tion of Money Laundering (Maintenance of Re-
cords) Rules, 2005. Further, the information con-
taining demographic details and photographs
made available from UIDAI as a result of e-KYC
process (“which is in an electronic form and ac-
cessible so as to be usable for a subsequent refer-
ence”) is treated as an ‘Officially Valid Document’
under PML Rules.
(e.cir.sl.no.1381/2013 – 14 dt:21/03/2014)
 The Bank has implemented use of UIDAI’s e-KYC
service by executing an KYC User Agency (KUA)
agreement with the UIDAI.
 The Bank has waived minimum balance require-
ment for all types of Savings Bank Accounts. Un-
der P-segment, SB Account can be opened with
Zero initial deposit subject to the strict compli-
ance with all KYC requirements stipulated by the
Bank. The customer has the option to fund his/her
newly opened account on the day of account
opening or subsequently as per his convenience
through Cash, Transfer from own account, NEFT,
RTGS, INB or by Cheque. Third party cheques/ in-
struments endorsed in favour of the account
holder should not be accepted for credit of cus-
tomer’s Savings Bank account.
(e.cir.sl.no.10/2014 – 154 dt:04/04/2014)
 Aadhaar based e-KYC Services has been made live
in the Bank. The printed e-KYC certificate can be
used for CIF/account opening in CBS subject to
satisfying other account opening requirements.
The certificate generated through e-KYC applica-
tion is solely meant for e-KYC purpose and for use
within our Bank only.
(e.cir.sl.no.85/2014 – 154 dt:25/04/2014)
 The Development Credit Bank Ltd. has changed its
name as DCB Bank Ltd. w.e.f. 24th October, 2013
 RBI has advised that the extant KYC guidelines do
not envisage placing restrictions on acceptance of
credits nor placing hold on the balances in the KYC
deficient accounts. However, RBI has advised that
the bank may close the KYC deficient accounts
after giving due notice to such customers.
SBLC DEOGHAR
 CMP Centre, Mumbai is now authorised to
print/issue the following types of instruments
with facsimile signature up to a limit of ₹10 lacs
per instrument
 Inter Office Instruments (IOI) and Income Tax
Refund Orders (ITRO) with facsimile signature
of Bank officials
 Multi City Cheques and Dividend Warrants
with facsimile signatures of authorised signa-
tories of Corporate clients.
 Instruments above ₹ 10 lacs will continue to be
signed manually by Bank Officials/ authorised sig-
natories of corporate clients.
 Retiring SBI employees are not required to open a
separate SB/CA for the purpose of getting pen-
sion.
 Pension can be credited to the existing staff
SB/CA of the pensioner. On death of the staff
pensioner, the family pensioner need not open a
new SB/CA for the purpose of getting family pen-
sion.
Family pension can be credited to the existing
joint SB/CA of staff pensioner with ‘E or S’ facility.
 In view of the increase in number of high value
frauds, the Top Management have directed that
operating functionaries, while scrtinizing should
verify and cross check few major items of Profit &
Loss and Balance Sheet with the regulatory re-
turns such as sales tax, excise duty, VAT, etc. to
ensure that prima facie the figures are in order.
(e.cir.sl.no.262/2014 – 15 dt:11/06/2014)
 The name of “Bharatiya Mahila Bank Limited” has
been included in the Second Schedule to the Re-
serve Bank of India Act, 1934
 PIO: Person of Indian Origin
 OCI: Overseas Citizen of India
 DEAF: Depositor Education and Awareness Fund:
“RBI DEAF Account NO: 161001006009”.
The amount to the credit of any account in India
with any bank which has not been operated upon
for a period of ten years or any deposit or any
amount remaining unclaimed for more than ten
years shall be credited to the Fund, within a pe-
riod of three months from the expiry of the said
period of ten years. which include:-
 savings bank deposit accounts;
 fixed or term deposit accounts;
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
 cumulative/recurring deposit accounts;
 current deposit accounts;
 other deposit accounts in any form or
with any name;
 cash credit accounts;
 loan accounts after due appropriation by
the banks;
 margin money against issue of Letter of
Credit/Guarantee etc., or any security de-
posit;
 outstanding telegraphic transfers, mail
transfers, demand drafts, pay orders,
bankers cheques, sundry deposit ac-
counts, Vostro accounts, inter-bank clear-
ing adjustments, unadjusted National
Electronic Funds Transfer (NEFT) credit
balances and other such transitory ac-
counts, un-reconciled credit balances on
account of Automated Teller Machine
(ATM) transactions, etc.;
 undrawn balance amounts remaining in
any prepaid card issued by banks but not
amounts outstanding against travellers
cheques or other similar instruments,
which have no maturity period;
 rupee proceeds of foreign currency de-
posits held by banks after conversion of
foreign currency to rupees in accordance
with extant foreign exchange regulations;
and such other amounts as may be speci-
fied by the Reserve Bank from time to
time.
 Any amount payable in foreign currency
under an instrument or a transaction,
 Reserve Bank of India defined a non-
cooperative borrower as ‘one who does not
provide necessary information required by a
lender to assess its financial health even after
2 reminders; or denies access to securities
etc. as per terms of sanction or does not
comply with other terms of loan agreements
within stipulated period; or is hos-
tile/indifferent/in denial mode to negotiate
with the bank on repayment issues; or plays
for time by giving false impression that some
solution is on horizon; or resorts to vexatious
tactics such as litigation to thwart timely reso-
lution of the interest of the lender/s.
SBLC DEOGHAR
The borrowers have to be given 30 days’ no-
tice to clarify their stand before their names
are reported as non-cooperative borrowers.
 Our Bank is among the few banks authorized
by the Income Tax Department to accept de-
posits under Capital Gains Accounts Scheme
1988 (CGAS) representing capital gains or sale
proceeds of long term capital assets. (Only
public sector banks can offer this deposit
scheme). This special account, named ‘SBI Cap
Gains Plus’ in our Bank, can be opened as a
Savings Bank account (Account A) or a Fixed
Deposit account (Account B) (TDR or STDR) af-
ter opening Savings Bank account.
(e.cir.sl.no.369/2014 – 15 dt:10/07/2014)
 KYC Requirements
 Pehla Kadam: Date of Birth proof of the Minor
+ KYC of the Parent
 Pehli Udaan:Date of Birth proof of the Minor +
KYC of the Parent
 Pehla Kadam is a Savings Bank account for
minor of any age operated jointly with his/her
Parent/Guardian or singly by Parent/Guardian,
while Pehli Udaan is a singly operated Savings
Bank Account for a Minor aged 10 years and
above and who can sign uniformly.
 These accounts offer a complete bouquet of
banking products to the children.
 Basic Saving Bank Deposit (BSBD is a full KYC &
can be opened with zero balance account,
whereas Small account or Tiny account are
opened with liberalized KYC.
 It has been informed by Export Credit Guaran-
tee Corporation that the name of their Com-
pany has been changed from “Export Credit
Guarantee Corporation of India Ltd” to “ECGC
Ltd” with effect from 8th August, 2014.
 Unique Customer Identification Code (UCIC)
guidelines issued by RBI mandate that a cus-
tomer must not have more than one CIF in a
Bank in his name.
 Bank has implemented the UNIFORM CUS-
TOMER IDENTIFICATION CODE (UCIC) – a rela-
tionship number - in the form of Customer In-
formation File (CIF) to all customers of the
Bank simultaneously with the introduction of
CBS in the Bank. As per RBI guidelines, all the
multiple CIFs, either at the same Branch or at
different Branches, of the same customer
 QUICK SUCCESS SERIES
KYC & AML GUIDELINES
Updated up to 31st October 2016
should be de-duped/ merged into a single CIF a) To monitor the activities at CSP outlets.
(the process being called de-duplication of b) To collect and check applications received for
CIFS) - to meet the requirements of RBI guide- opening of accounts.
lines. (e.cir.sl.no.711/2014 – 15 dt:18/09/2014) c) Marketing for loans/advances.
d) Deposit Mobilization
 Under PMJDY, RuPay Debit Cards are to be e) Financial Literacy among customers of the area
provided to all Basic SB account holders to ex- The periodicity of visit to CSPs by the Branch
tend to them the benefit of Rs. one lac acci- Manager or any other designated officials
dent insurance cover. must be scrupulously maintained as under and
 Auto issue of RuPay Debit Cards would be ap- such visits to be recorded through the online por-
plicable to FI accounts only and would not be tal through the link
applicable to normal SB accounts. http://10.4.248.245/CSPVisits/Login.aspx}.
 The account opening form for Small Accounts Position Periodicity Category
and included declaration Forms 60 & 61 and Branch Manag- Monthly Every CSPs irres-
customer's request to opt for Rupay card and er/any other pective of
seed Aadhaar number as a part of account designated offi- Geography (i.e.
opening form. The modified form has to be cial such as Metro/Urban/Semi
used for opening of all Small Accounts both at RMRO/FO etc. urban/
branch and BC channel except for Small Ac- Rural (with popu-
counts opened under product code 1011-1711 lation
(under BSBD) as they are full KYC complaint <2000)
accounts. Branch Manag- Weekly on Every CSPs in FI
 FI accounts Product Code 1011-1601, 1611- er/any other a villages with
1411 and 1611-1401 designated offi- prefixed population of 2000
 (e.cir.sl.no.797/2014 – 15 dt:01/10/2014) cial such as day and or more
RMRO/FO etc. time
 Owing to centralization of ATM complaints at  Those persons who do not have any of the ‘official-
GITC, Bank has decided to withdraw all discre- ly valid documents’ can open Small Accounts with
tionary powers (discretionary powers to settle Banks. A Small Account can be opened on the basis
the disputed ATM transactions by paying up to of a self attested photograph and putting her/his
Rs. 15,000/- with customer transaction slip signature or thumb print in the presence of an
showing unsuccessful transaction and official of the Bank. Such accounts have limitations
Rs.5,000/- without transaction slip)of branches regarding the aggregate credits (not more than
for resolution of customer complaints for un- Rupees One lakh in a year), aggregate withdrawals
successful transactions. Accordingly, SOP will (not more than Rupees ten thousand in a month)
not be applicable any longer for handling of and balance in the accounts (not more than Ru-
unsuccessful transactions. pees fifty thousand at any point in time). These
Small Accounts would be valid normally for a pe-
 In terms of RBI instructions on reporting re- riod of twelve months. Thereafter, such accounts
quirements in AML / CFT Measures, Branches would be allowed to continue for a further period
are required to submit cases of transactions of twelve more months, if the account holder pro-
abandoned / aborted by the customers on be- vides a document showing that she/he has applied
ing asked to give some detail or to provide for any of the officially valid document, within
documents, as Suspicious Transaction Reports twelve months of opening the Small Account.
(STRs). (e.cir.sl.no.1151/2014 – 15 dt: 29/12/2014)

 As per extant instructions, every CSPs should be

visited by the Branch Manager or any other desig-
nated official of the link branch (circular letter No.
RBNF/AC/Cir. (L) No. 05/2009/10 dated
09.02.2010) to carry out the following tasks:-

SBLC DEOGHAR
 QUICK SUCCESS SERIES, an initiative of SBLC
Deoghar to facilitate the preparation of
promotion seeking personnel of our Bank,
appears to have succeeded in its objective
to a large extent, as the readers are still
approaching us for its revision/updation
Quick Success de-spite availability of plenty of other study
materials.

Series We would not have been able to sustain

this unique effort of ours, without the
active support and continuous
encouragement of our DGM cum Circle
Development officer Sri Bijayananda Padhi.
We are deeply indebted to him for his co-
operation and guidance.

Sri Kumar Priyank, Chief Manager

Government Business
(Training), Sri Rakesh Roshan, Chief
Manager (Training), Sri Sanjay Kumar
Sharma, Manager (Training), Jitendra
Kumar Arun, Manager (Training) at this
SBLC have owned up this project and have
taken pains to keep it relevant to the
users by updating & improving it at half
yearly interval.

Though every care has been taken while

updating the contents, we request our
readers to point out any lapses at the
earliest. Needless to mention this book is
not a substitute of circular instructions
issued by the Bank from time to time. For
detailed guidelines please refer to Bank’s
latest circulars. Soft copy of this edition
is available on our ftp://10.151.51.33 in QSS
folder and on SBI TIMES>PATNA
CIRCLE>SBLC Deoghar site.
Team SBLC Deoghar is humbled by the
response and recognition, it is receiving
from the readers within and beyond the
circle. We wish the readers grand
success in their endeavours.

Abhishek Kumar Sharma

Updated By
J . K. ARUN
Manager Training, SBLC Deoghar
Mobile-9801002594
Email- jitendra.arun@sbi.co.in
Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895
Fax - 06432-231810
e-mail: agmstc.deoghar@sbi.co.in
Updated upto
31st OCT 2016
 QUICK SUCCESS SERIES: GOVERNMENT BUSINESS
October 31, 2016
 SBI conducts Govt. Business as
agent of RBI wherever banking
department of RBI is not
established under S 45 of RBI Act
and S 32 of SBI Act
 RBI’s approval is needed for
authorizing a branch to conduct
Govt. Business
Govt. Receipts
 Credit voucher to Govt. Account is
called Govt. Challan.
 State Govt Challans will be enfaced
by Treasury Officer (Enfacement
means that the Bank is authorised
to credit into a specified Govt. A/c)
 Challans signed by departmental
officer need not be enfaced by the
treasury officer
 Sales tax/ Income Tax Challan have
no limit
 Duplicate is not issued to the
depositor in case of loss of challan
 Instead a certificate of credit can
be issued as under:
 ‘A sum of Rs ________ was
received for credit of _________
Govt A/c from ___________
(Name)on __________’
 A SWO can accept Govt. receipts
up to Rs 3000/- and issue receipt.
It need not be counter-signed by
the Manager (cash)
Govt. Payments
 Can be effected by Cheque or Govt
Bill
 Govt Bills are not negotiable
instruments
 Govt bills are drawn by drawing
officer and thereafter passed by
Treasury Officer for payment at
the Bank. After that, the Govt Bill
is called as Pay order. Validity of
Pay order is upto 10 days or till the
end of the month, whichever is
earlier
 After expiry of the validity period,
it can be revalidated by Treasury
Officer. Revalidation extends its
validity for another 10 days
 Govt cheque is issued by various
Central Govt departments -
Railways, Defence, Postal, Union
Ministries, CBDT & CBEC
 A number of State Govts also issue
cheques instead of Bill
 Govt cheques are issued non
transferable and ‘to order’
 Govt cheques drawn on bank are
treated as Negotiable Instruments
 Validity of these cheques vary vis-
à-vis issuing department
Pension Payment
 Pension payment can be made
into a joint account opened by a
pensioner with his/her spouse in
whose favour an authorization of
family pension exists in the PPO
 Nomination & Cheque facility
available
 Pension for the month of March is
payable on 1st of April
 Commuted portion of pension can
be restored after 15 years from
the date of commutation
 A letter of undertaking is obtained
from the pensioner protecting the
Bank against excess / wrong
payment
 Recovery of excess pension paid, if
any, to be made from the available
balance in the account
immediately on detection. In case
it is not possible then to be
recovered in installment from the
future payable pension. Such
installment should not exceed
1/3rd of net pension. Pensioner
 QUICK SUCCESS SERIES: GOVERNMENT BUSINESS
October 31, 2016
may, however, repay higher
amount
 Life certificate & Non employment
certificate to be submitted in
November each year. The format
of life certificate changed to
capture additional information like
Pan, Mobile, Date Of Birth of
Spouse & Email. Postal address.
(e circular 785/2013-14/ 11
Oct,2013),
SUBMISSION OF DIGITAL LIFE
CERTIFICATE(JEEVAN PRAMAN) / be afforded within a week from
PHYSICAL LIFE CERTIFICATE: Pension
payment rules of various Central
Government Ministries / State
Government etc. provide for submission
of life certificate by pensioner to his Bank
/ Pension Disbursing authority
during the month of November every year
for uninterrupted pension payment.
Government of India has launched Aadhar
based digital life certificate for pensioners
from this year onwards, as an alternate to
physical life certificate. (Please refer to
our e- circular No. NBG/GAD/Pension/35
dated 13.12.2014, for detailed process on
digital life certificate.)
SOP for JEEVAN PRAMAN(Digital Life
Certificate) is available at SBI Times
under Departments link- Government
Business Unit-Downloads.
While obtaining physical Life Certificates,
Branches must also endeavor to obtain
Aadhar numbers so as to seed them in
their pension accounts. SOP for AADHAR
seeding is available in GBU- Downloads.
(e-Circular Sl no.901/2015-16 dated
16.10.2015)
 Non Remarriage / Non Marriage
certificate to be submitted by
widow/unmarried daughter in
case family pension is being paid
to them
 Family pension can now be paid
upto 25 years of age to both son
and daughter. In case of daughter
it can be paid till 25 years or
marriage whichever is earlier. Also
getting employment is no bar.
 TIMELINE FOR SETTLEMENT OF
PENSIONARY DUES AUTHORISED
BY CPAO-
a) New PPO- Credit on account of
pension/ family pension should
the date of despatch of PPO/
Revision / Commutation
Authorities by CPPC to the
Pension paying branch for
completion of procedural
requirement.
b) Revised PPO - within five days
from the date of receipt of
manual revision/ Commutation
authority from CPAO.
c) Pension Revision Orders/ DA etc-
The Bank is required to obtain
immediately the copies of
pension orders from the pension
paying authorities directly and
make payments, so that the
pensioner gets the benefits
announced by the Government in
the succeeding month's pension
payment itself
 Compensation for Delay- at a fixed
interest rate of 8 percent for the
delay after the due date in respect
of all delayed pension payment
made.
Income Tax Refund Order (ITRO)
 Quasi- Negotiable Instrument;
Validity- 3 Months
 ITRO upto Rs 25000/- credited
through ECS
 Advice issued to Bank for ITRO
above Rs 25000/-
 QUICK SUCCESS SERIES: GOVERNMENT BUSINESS
October 31, 2016
 SBI appointed as refund banker for
CBDT. SBI gets reimbursement
form CBDT after making refund to
the taxpayers.
Govt. Commission
RBI Master Circular RBI/2015-16/81
DGBA.GAD.No.2/31.12.010/2015-16
dated 01.07.2015
Transactions relating to the following
government business undertaken by
agency banks are eligible for agency
commission:
(a) Revenue receipts and payments on
behalf of the Central/State Government
(b) Pension payments in respect of
Central/ State Governments
(c) Special Deposit Scheme (SDS) 1975
(d) Public Provident Fund (PPF) Scheme,
1968
(e) Senior Citizen Savings Scheme (SCSS),
2004
(f) Any other item of work specifically
advised by Reserve Bank as eligible for
agency commission (viz. Relief Bonds/
Savings Bonds etc. transactions)
 Receipts- Rs 50/- Per transaction
(physical mode)
 Receipts - Rs 12/- Per transaction
(e-mode)
 Govt Payments – 5.5 paise per Rs
100/- turnover.
 Pension payments- Rs 65/- per
transaction
 Sharing of Govt commission
received between dealing
branches and link branch - 75:25.
 Govt. commission for the last
quarter is debited to Adjusting
account a/c for arriving at
Profit/Loss of the branch.
 Short term/long term borrowings
of State Governments raised
directly from financial institutions
and banks are not eligible for
agency commission as these
transactions are not considered to
be in the nature of general banking
business. Reserve Bank pays the
agency banks separate
remuneration as agreed upon for
acting as agents for management
of public debt. Transactions arising
out of Letters of Credit opened by
banks on behalf of Ministries/
Departments etc. do not qualify
for agency commission
 Number of commissionable
transactions for payment of
agency commission on account of
pension in a year should not
exceed 14. This include one
monthly credit for payment of net
pension and a maximum of two
per year for payment of arrears on
account of increase in DR, if
applicable.(RBI Cir. DGBA.GAD
No.2278/31.12.010/2015-16 dated
21.01.2016
 Penal interest for wrong claims:
Agency banks will be liable to pay
penal interest at Bank Rate as notified
by Reserve Bank of India plus 2% for
any wrong claims of agency
commission settled
 QUICK SUCCESS SERIES: GOVERNMENT BUSINESS
October 31, 2016
Public Provident Fund Scheme- 1968
Now be called Public Provident Fund
(Amendment) Scheme – 2016.
 Eligibility - Resident Individuals on
his own behalf or on behalf of
minor, of whom he is the guardian
either father or mother can open a
PPF account on behalf of his/her
minor child but not both
 Minimum Deposit- Rs.500/- per
annum in multiples of Rs.5/-
 Maximum Deposit - Rs.150000/-
per annum
 Period of Deposit - 15 years (Can
be extended for one or more
blocks of 5 years)
 Rate of Interest – 8% per annum (
w.e.f. 01/10/2016 )credited in
account on 31st March every year
calculated on the minimum
balance between 5th day and end
of the month
 Loans - Loan upto 25% of balance
at the end of first financial year
from third to sixth year. Second
loan can be taken on full payment
of first loan.
 Withdrawals- Only one withdrawal
allowed during any one year from
sixth year. Withdrawal limited to
50% of the balance at the credit at
the end of 4th year preceding the
year in which the amount is
withdrawn or the end of the
preceding year whichever is lower.
 The account extended beyond 15
years; partial withdrawal allowed
up to 60% of the balance to the
credit at the commencement of
the extended period.
 Tax Benefit available u/s 80 C of
the I.T. Act; Interest totally exempt
from Income Tax; Amount
standing to the credit is fully
exempted from Wealth Tax.
 Other Features
 Subscription in one or more
installments in a financial year;
maximum -12
 Nomination available in the name
of one or more persons
 Nominee cannot continue account
of the deceased subscriber in his/
her own name
 Transfer of account permitted at
the request of the subscriber free
of charge from one branch of State
Bank of India or its Associates to
Head Post Office or vice versa.
 Premature closure of a PPF
account on grounds of genuine
hardship could be considered only
after the expiry of five years from
the end of the year in which the
account was opened ( Request
should be referred to Govt. of
India, Ministry of Finance,
Department of Economic affairs,
New Delhi for decision)
 The subscriber may discontinue his
account anytime after joining the
fund. The repayment of the
subscription with interest will be
made only after 15 years form the
end of the financial year in which
the account was opened.
 Discontinued account can be
revived on payment of Rs.50/- per
year along with arrears of
subscription of Rs.500/- per year
 Cannot be attached by a court for
debt/liability of the depositor
 In case deposit is made by means
of a local cheque or demand draft
by the subscriber, the date of
realization of the amount will be
the date of deposit
 PPF AMENDMENT IN PRE -MATURE
CLOSRE CLAUSE
 QUICK SUCCESS SERIES: GOVERNMENT BUSINESS
October 31, 2016
A subscriber shall be allowed premature
closure of his account or the account of a
minor of whom he is the guardian, on a
written application to the Accounts Office,
on any of the following grounds namely:-
(i) That the amount is required for the
treatment of serious ailments or life
threatening diseases of the account
holder, spouse or dependent children or
parents, on production of supporting
documents from competent medical
authority;
(ii) That the amount is required for higher
education of the account holder or the
minor account holder, on production of
documents and fee bills in confirmation of
admission in a recognized institute of
higher education in India or abroad:
Provided that such premature closure
shall be allowed only after the account
has completed five financial years:
(e-Cir. Sl. No. : 638/2016 – 17 dt 11.08.16)
Senior Citizens Savings Scheme
 Eligibility-
i) An individual who has attained the age
of 60 years and above on the date of
opening of an account
ii) who has attained the age of 55 years or
more but less than 60 years and who has
retired on superannuation or otherwise
on the date of opening an account
iii) who has retired at any time before the
commencement of these rules and
attained the age of 55 years or more on
the date of opening of an account,
iv) The retired personnel of Defence
Services (excluding civilian Defence
employees) irrespective of the above age
limits subject to fulfillment of other
specified conditions.
 Amount of Deposit – Max Rs 15 lakh
(in multiples of Rs 1000/-)
 No of Accounts- More than one
account can be maintained subject to
the condition that deposits in all
accounts taken together shall not
exceed the maximum limit of Rs.15
lakh
 Period of Deposit - 5 years (Can be
extended to a further period of three
years)
Withdrawals- No withdrawal
permitted before the expiry of a
period of five years from the date of
opening of an account
 Rate of Interest – 8.6 % p .a.(for 2016-
17) from the date of deposit payable
at the end of each calendar quarter
e.g. 31st March / 30th June / 30th
September / 31st December.
 The account can be in single name or
jointly with spouse. Nomination
facility is available.
 In case the depositor does not
close the account on maturity and
also does not extend the account
within a period of one year after
maturity, the account will be
treated as matured and the
depositor will be entitled to
interest at the rate applicable to
the deposits under post office
savings account during the post
maturity period
 Death of the depositor- Account
shall be closed and deposit
refunded to the nominee or legal
heirs
 Nomination : SCSS provide
nomination facility. (multiple
nominees allowed like PPF)
 Premature closure of Account -
Depositor may be permitted to
withdraw the deposit and close
the account at any time after the
expiry of one year from the date of
opening of the account subject to
the following conditions
i) In case the account is closed
after the expiry of one year but
before the expiry of two years
 QUICK SUCCESS SERIES: GOVERNMENT BUSINESS
October 31, 2016
from the date of opening of the
account, an amount equal to one
and half percent of the deposit
shall be deducted and the balance
paid to the depositor
ii) In case the account is closed on
or after the expiry of two years
from the date of opening of the
account, an amount equal to one
percent of the deposit shall be
deducted and balance paid to the
depositor
 Transfer of A/c – Can be
transferred from one deposit
office to another;
 Fee payable on transfer where
deposit amount is Rs 1 lakh or
above - Rs 5/- per lac of deposit for
1st transfer and Rs 10/- per lac for
subsequent transfer
 TDS : If accumulated interest on
the invested amount exceeds
Rs.10000/- per annum.
 Investment in the SCSS account
saves tax as per the provisions
laid out in Section 80 C of I T Act
1961.
 FAQ on SCSS
Q. Whether 'A' can open a joint
account with his/her Spouse 'B'
with maximum admissible
deposits of Rs.15 lakhs and
similarly 'B' can open another
account individually or jointly
with 'A', with any amount of
deposit?
Yes. Both the Spouses can open
individual and/or joint accounts
with each other with the
maximum deposits upto Rs.15
Lakh each, provided both are
individually eligible to invest under
relevant provisions of the rules
governing the scheme.
CBDT Credits
 Online Tax Accounting System
(OLTAS) introduced wef 1st Jun
2004 for collection of Corporation
Tax, Income Tax, Wealth Tax & Gift
Tax
 Quoting PAN/TAN mandatory in
Challans
 e-payment of direct taxes
mandatory for companies and
persons other than a company to
whom S 44 AB of IT Act applicable.
However, the responsibility of
making e-payment rests primarily
with the tax-payer. In case they
opt to make payment through
physical challans the bank can
accept them.
 Each transaction generates a
unique Challan Identification
Number (CIN)
 CIN consist of BSR Code of the
bank branch (7 digit), Date of
Presentation of Challan
(DD/MM/YY) and serial number of
Challan (5 digit) in the branch on
that day
 Branches are required to issue
counterfoil of Challans &
Computer Generated Receipts to
the customers
 e-FPB for CBDT – Bangalore Main
Branch
 OLTAS transactions to be credited
to Govt. account at CAS, Nagpur
within T+3 day including Sunday &
Holiday
 QUICK SUCCESS SERIES: GOVERNMENT BUSINESS
October 31, 2016
CBEC Credits
 Electronic Accounting System in
Excise and Service Tax (EASIEST)
introduced
 New Challan format is GAR 7
 Assessee to mention 15 character
PAN/TAN based Assessee code
 Computer generated receipt to be
issued to depositor containing
Unique CIN
 Electronic Accounting System For
e-receipts (EASeR) introduced to
enable the e-payment of central
excise / service tax by assessees
themselves through NSDL-EASIEST
website
 CBEC has made e-payment of Central
Excise & Service Tax mandatory for
Assessees paying the tax of Rs
1,00,000.00 (Rs One Lac) & over
w.e.f. 01.01.2014.
 CBEC has decided to designate
Wednesday (9 a.m. to 1 P.m) as
Taxpayers day wherein all heads in the
field will meet the taxpayers/other
stakeholders without any prior
appointment in order to address their
grievances relating to Central Excise /
Service Tax / Customs expeditiously.
(e-circular 269/2016-17 dated
26.05.16)
 e-FPB for Central Excise – World
University Service Centre Branch,
Chennai (Code- 2288)
 e-FPB for Service Tax – Fort Market
Branch, Mumbai ( Code- 5347)
Settlement of Central Govt transactions
are done by GAD, Navi Mumbai with CAS,
RBI, NAGPUR
 Fund Settlement Link Office (FSLO) at
respective LHO is responsible for
settlement of State Govt. transactions,
currency chest and small coin depot
transactions with regional office of RBI
 Settlement of Central/State
Government Transactions other than
CBDT should take place with RBI
within T+1 working Days for ON-
LINE/ELECTRONIC RECEIPT
TRANSACTIONS. For PHYSICAL
RECEIPT TRANSACTIONS-
 a) T+3 working days, where the
dealing and Focal Point branch are
located at the same centre , excluding
the settlement day
 b) T+5 working days, where the
dealing and Focal Point branch are
located at different centres, excluding
the settlement day
 c) T+12 working days, where the
dealing Branch is located in Remote
Locality, Difficult and Hill Areas ,
excluding the settlement day.
 OLTAS transactions- Uniform T+3
working days (excluding the
settlement day) irrespective of the
location of the Branches.
 Deposit Schemes of the Ministry of
Finance (PPF/SCSS)- all remittances to
be credited into the govt. account
with RBI, CAS Nagpur within 3 days
(excluding holidays). In case of delay
beyond 3 days, the penalty will be
calculated for Total number of days
i.e. grace period of 3 days will not be
allowed to the Bank.
 RATE OF PENALTY/DPI CHARGABLE –
a) At the flat rate of 8% at present
(recently delinked from the Bank rate)
 QUICK SUCCESS SERIES: GOVERNMENT BUSINESS
October 31, 2016
for delayed receipt transactions
except Deposit Schemes of MoF.
b) Deposit Schemes of Ministry of Finance
(PPF/SCSS etc.) – Applicable rate of
interest payable to the Depositor + 0.5%
in case of delays upto 30 days and rate of
interest payable to the depositor + 1% in
case of delays beyond 30 days.
 GBSS (Govt. Business Software
Solution) has been launched w.e.f 1st
Feb 2009 for Central Govt transactions
 Balance in Govt. General A/c to be
transferred to Govt. Accounts
Department, Navi Mumbai every year
on 30th Sep
CHEQUE TRUNCATION SYSTEM (CTS) FOR
CENTRAL OVERNMENT CHEQUES
As per RBI directives CTS implemented
for Central Government Cheques for
locations covered under CTS, “Paper To
Follow” (P2F) dispensed with for Central
Government Cheques in CTS w.e.f.
01.02.2016.
Locations which are NOT covered under
CTS (non-MICR centres) :
Existing system of delivering the physical
instruments in respect of Central
Government cheques by presenting Banks
to the paying Banks and submission of
physical Central Government cheques
along with the scrolls by dealing branches
(drawee branch) to Focal Point Branches
for onward submission to the PAOs / GoI
will continue as hitherto
Images / data of Central Government
cheques are to be captured by the
presenting Bank branches in case of both
CTS-2010 compliant as well as non CTS
compliant cheques of clearing
transactions and physical cheques / data /
images are to be preserved for 10 years.
Presenting bank to provide only
data/images to the drawee Bank and not
the physical cheques
Gamut:- There are approximately 10500
Dealing Branches, 550 Focal Point
Branches and 49 CTS centres (CCPCs)
involved in State / Central Government
Business processing. Volumes of
Government Payment Cheques are
approximately 2 – 3 crores per Year.
(e-Cir. Sl no.225/2015-16 dt. 27.05.15)
PAN : Permanent Account Number is a 10
character alpha numeric number as per
the following format: 5(A)+4(N)+1(A)
 First 5 characters should be Alpha, 4th
character should be A,B,C,F,H,J,L,P,T,G
only, 5th character should be Alpha,
for Corporation Tax 4th character
should be ‘C’
 6th to 9th characters are Numeric only
but not all zeroes
 10th character should be Alpha
TAN :Tax Account Number is a 10
character alpha numeric number allotted
to a tax deducting authority for deduction
of tax at source. The structure of the TAN
is as per the following format:
4(A)+5(N)+1(A)
 1st three characters should be valid
CTU Codes and Alpha only
 4th character should be Alpha
 5th to 9th position should be Numeric
but not all zeroes
 10th character should be Alpha
QUICK SUCCESS SERIES: GOVERNMENT BUSINESS
October 31, 2016

TERMS DETAILS
EASIEST Electronic Accounting System in
Excise and Service Tax
OLTAS Online Tax Accounting System
UMEA Union Ministry Expenditure Account
GEPG Government e-Payment Gateway
ICEGATE Electronic Commerce/Electronic Data
interchange (EC/EDI) Gateway.: is the
electronic payment gateway of
customs department
PFMS Public Financial Management System

E Kuber Core Banking Solution of RBI

GSTN Goods and Services Tax Network
DMS Date-wise Monthly Statement
VDMS Verified Date-wise Monthly
Statements
e-GRAS Online Government Receipts
Accounting System
1 Quick Success Series – Remittance & Collection
QUICK SUCCESS SERIES, an initiative of
SBLC Deoghar to facilitate the
preparation of promotion seeking
personnel of our Bank, appears to have
succeeded in its objective to a large
extent, as the readers are still
approaching us for its revision/updation

Quick Success despite availability of plenty of other

study materials.

Series We would not have been able to sustain

this unique effort of ours, without the
active support and continuous
encouragement of our DGM cum Circle
Development officer Sri Bijayananda
Padhi. We are deeply indebted to him for
his co-operation and guidance.

Sri Kumar Priyank, Chief Manager

(Training), Sri Rakesh Roshan, Chief
Manager (Training), Sri S.K.Sharma,
Manager(Training), Jitendra Kumar Arun
Manager (Training) at this SBLC have
owned up this project and have taken
pains to keep it relevant to the users
by updating & improving it at half yearly
interval.

Agriculture Advances Though every care has been taken while

updating the contents, we request our
readers to point out any lapses at the
earliest. Needless to mention this book
is not a substitute of circular instructions
issued by the Bank from time to time.
For detailed guidelines please refer to
Bank’s latest circulars. Soft copy of this
edition is available on our
ftp://10.151.51.33 in QSS folder and on
SBI TIMES>PATNA CIRCLE>SBLC Deoghar
site.
Team SBLC Deoghar is humbled by the
response and recognition, it is receiving
from the readers within and beyond the
circle. We wish the readers grand
success in their endeavours.

Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895
Fax - 06432-231810
e-mail: agmstc.deoghar@sbi.co.in

Compiled and updated By

J . K. ARUN
Manager Training, SBLC Deoghar
Mobile-9801002594
Email- jitendra.arun@sbi.co.in
Updated as on
[Type text] Page 1 31st Oct. 2016
 Quick Success Series: Agriculture Advances
31st October , 2016
As per RBI guidelines, banks have to achieve the
target of priority sector lending at 40% of their
Adjusted Net Bank Credit (ANBC), 18 per cent of
ANBC should go towards agriculture lending. Of
this, indirect lending in excess of 4.5% of ANBC
will not be reckoned for computing performance
under 18 per cent target.
AGRI BUSINESS: RBI GUIDELINES-PRIORITY
SECTOR LENDING UPWARD REVISION IN LIMITS
OF PML TO RS 50 LACS AND AGRI INPUT DEALER
LOANS TO RS 5 CR (e-cir-119-08.05.2013)
Limits sanctioned to dealers/sellers of fertilizers,
pesticides, seeds, cattle feed, poultry feed,
agricultural implements and other inputs, up to
Rs 1 cr were earlier classified under indirect agri
advances. This limit has now been raised to Rs 5 cr
per borrower.
♦ Ground Water Availability:
a) White Blocks- exploitation of ground water is
less than 70% of the available water.
b) Grey Blocks - 70% to 90% of the available water
has already been exploited.
c) Dark Blocks – More than 90% of the available
water is already over-exploited.
♦ Spacing norms for wells :
a) Between two dug wells – 180 meters
b) Between two dug wells with pump sets – 180
meters
c) Between two bore wells with pump sets –250
meters
d) Between a dug well and a bore well –215
meters
♦ Tractor Loan
- The tractor should have 600 hrs of productive
work in agriculture.
-The Central Farm Machinery Training and Testing
Institute (CFMTTI), Budni, M.P., Farm
Machinery Training and Testing Institute
( FMTTI), Hisar (Haryana) issues test
certificate for various makes of the tractor.
- The maximum repayment period is 6 yrs and
the usual life of a tractor is 10,000 hrs.
♦ The service charges payable to tractor dealers
are paid by debit to interest account.
♦ Service Area Approach had been recommended
by the Ojha committee in 1989. Now it is
Page 2
applicable to Government sponsored schemes
only. The operational area of the branches for
financing under schemes other than GSS, should
be-
i) ADBs/DBDs – Within a radius of 50 km.
ii) Other branches- within a radius of 20 km.
♦ The Branches have to submit LBR (Lead Bank
Return)
LBR 1- Annual statement showing annual target
under the plan
LBR 2- Month wise disbursement under the credit
plan
LBR 3- Half yearly recoveries and outstanding
loans
LBR U1/U2/U3 are submitted by branches located
in urban areas
♦ SELF HELP GROUPs: Recommended by Kalia
Committee.
-A voluntary association of 10-20 persons with
common interest to improve their economic and
social status.
-Finance up to a max of 4 times the savings of
SHG.( The branches may consider higher quantum
of loans beyond four times of Group’s corpus to
SHGs availing repeat loans / renewals (up to Rs.
50000/- per SHG member), considering the
quality, credit absorption capacity, managerial
ability, etc of SHGs as reflected in its rating score.)
(ecir- 353 dt 12/07/2012)
-The minimum number of members in an SHG
may be reduced to 5 in case of difficult areas,
disabled persons and minor irrigation schemes.
- The finance to Self help Groups is classified as
direct agriculture advances as long as bank is able
to maintain such segregated data on SHG/
microfinance portfolio. In other cases, finance to
SHG is classified under indirect finance to
agriculture.
- The advances made to NGOs for on-lending
to Self Help Groups where all members are
undertaking SME activities or majority, say, 90%
members are taking up SME activities are to be
classified under SME segment.
♦ An amount of Rs. 750 per SHG can be given if
the NGO is registered and in existence for 3 years
for their efforts in formation of SHGs. 50% on
formation and opening of S/B A/C, remaining 50%
after 3 months from the date of credit linkage.
 Quick Success Series: Agriculture Advances
31st October , 2016
♦ The concept of weaker sections was evolved by
Ghosh Committee.
♦ A bank will be eligible for unrestricted refinance
by NABARD only if the gross NPA to total loans
and advances as at previous 31.3 has not
exceeded 15%.
♦ Small farmer- Land holding up to 2.5 acre of
wet land or 5 acres of dry land.
♦ Marginal farmer- Land holding up to 1.25 acre
of wet land or 2.5 acres of dry land.
♦ Agricultural labourer- Land holding up to 0.5
acre of land or having a home-stead; should have
income of more than 50% by way of agricultural
wages.
♦DOCUMENTATION
AB-1: Hypothecation Agreement (Invariably for Rs
1 lac and above) (e-cir-546-26.08.2013)
AB-1 (Simplified): Hypothecation Agreement
AB-2: Guarantee Deed
AB-3: Mortgage Deed
AB-4: Revival letter (Borrower)
AB-5: Revival letter (guarantor)
AB-6: Notice to borrower if loan is not paid on due
date.
AB-7: Conversion of crop loan into term loan on
account of crop failure. It is obtained as an
unstamped document signed by both borrower
and guarantor.
♦Simplified and uniform documents are obtained
now as recommended by RV Gupta Committee
(1999).
♦Margin: Crop loans and Term loans- up to Rs
1,00,000/- nil. Above Rs 1,00,000/- 15% to 25%.
♦OMR (rural) can collect cash from borrowers for
credit to their accounts up to Rs 20,000/- per visit
like BM/FO. The insurance cover for such
collections per officer id Rs 100000 per instance.
♦SECURITY NORMS:
Crop Loans (ACC / KCC)
a) Up to Rs.1 lac: Primary: Hypothecation of
standing crops. Collateral – Nil.
b) Above Rs 1 lac: Primary: Hypothecation of
standing crops. Collateral : Mortgage/Charge over
land. (In case of genuine difficulties in creation of
mortgage/charge over land, any other
Page 3
appropriate security can be obtained. Suitable
third party guarantee can also be obtained, with
prior permission of controlling authority, in such
instances).
c) Up to Rs 2 lac : ( having legal ownership of
agricultural land with good repayment track
record for last 3 years. And those not covered
under ADWDRS 2008): Primary: Hypothecation of
standing crops. Collateral – Nil.
d) KCC under contract farming: Up to Rs 3,00,000:
Primary- Hypothecation of standing crops.
Collateral – Nil.
Term loans
a) (where moveable assets are created): Up to Rs
1 lac- Primary- Hyp. of assets. Collateral- Nil.
Above Rs 1 lac- Primary- Hyp. of assets. Collateral-
Mortgage of land.
b) (Where movable assets are not created e.g.
Dug well, development of land etc.): Up to Rs 1
lac- Primary - DP note. Collateral – nil (Since
moveable assets are not created Agreement for
Hypothecation -AB1 need not be obtained)
c) Above Rs 1 lac- Mortgage of land.
♦INSPECTION:
a)Only crop loans: Twice for each crop.
b)Only tem loan: 4 times a year.
c)Both crop loans & term loans
Limits up to Rs 25000: 4 times a year
Limit above Rs 25000: 12 times a year
♦ INSPECTION CHARGES:
a) Up to Rs 25000 (and for SGSY/DIR): Nil
b) Above Rs 25000 and Rs 200000: Rs 500 p.a.
c)Over Rs 200000 and up to Rs 5 cr: Rs 500 per lac
p.a within same municipal limits with a maximum
of Rs 10000.
For outstation inspection, actual charge + 25%
subject to minimum of Rs 10000 p.a.
d)Over Rs 5 cr: Actual charge + 25% subject to
minimum of Rs 10000 p.a.
♦ Credit rating need be done only for advances
exceeding Rs 25 lakhs.
♦ No dues certificate has been waived by RBI for
small loans up to Rs 50000 to small and marginal
farmers, only a self declaration to be obtained
from the borrower.
 Quick Success Series: Agriculture Advances
31st October , 2016
♦ GREEN CHANNEL PROGRAMME FOR
EXCELLENCE (GCPE)
This is a special initiative introduced by the Bank
in the area of Agri Business during the year 2002-
03 to recognize, motivate and reward, every
financial year, those officers who have excelled in
Agri Business.
♦ AGRICULTURAL TERM LOAN: OBTENTION OF
POST DATED CHEQUES (PDCs)
Post-dated cheques should be obtained for
Agricultural Term Loans and Government
Sponsored Schemes loan sanctioned beyond Rs.
2.00 lacs under Agricultural Term Loans. Atleast
20 cheques or cheques covering the full /
remaining repayment period, whichever is less,
should be obtained at the time of sanction of
loan.
♦ Important Culture:
1)Aquaculture- Shrimp/Prawn farming
2)Apriculture- Mushroom cultivation
3)Apiculture- Bee keeping
4)Floriculture- Flower production
5)Horticulture- vegetable,fruits,flowers
6)Olericulture- Vegetable production
7)Moriculture- Mulberry cultivation
8)Pisciculture- Fish farming
9)Sylviculture- Forest tree cultivation
10)Vermiculture- Rearing of Earthworm
11)Sericulture- Silk Production
12)Tissue Culture- Plant propagation
♦ Revolutions:
1)Blue- Fish production
2)Green- Food production
3)Red- Meat production
4)Yellow- Oil seeds production
5)Black- Rubber production
6)Brown- Cocoa production
7)Rainbow- Flower production
8)White- Milk production
Page 4
Agri Business: Implementation of Credit Scoring
Models (e-Circular Sl No.834/2014-15 dated
13.10.2014)
With the roll out of Agri LOS, Credit Scoring
Models have gained importance. Hence, it has
been decided to roll out scoring models covering
all Crop Loans, Irrigation, Land Development,
Horticulture and plantation, Dairy and Poultry for
implementation with immediate effect.
The Scoring Models will enable faster lending
decisions and strengthen the existing system of
sanction or rejection of loan applications.
While proposals with credit score of 71 & above
are considered ‘Good Loans’ for sanction,
proposals with credit score of 26 and above but
up to 70 may be considered
a) after credit enhancements or
b) application to be referred to next higher
authority
c) Proposals with credit score of 25 and below
should not be considered for sanction.
PRODUCTS & SCHEMES
KISAN CREDIT CARD (KCC)
(ecir 391 dt 19/07/2012 & 852 dt 22/11/2012)
Eligibility: i. All farmers-individuals/Joint
borrowers who are owner cultivators; ii. Tenant
farmers, Oral lessees and Share Croppers etc; iii.
SHGs or Joint Liability Groups of farmers including
tenant farmers, share croppers etc.
Fixation of limit : A. Other than Marginal farmers:
KCC limit (Maximum Permissible Limit) shall be
sanctioned based on the short term loan
requirements and Investment credit
requirement of small value in the nature of
farm implements/ equipments etc’
(For every successive years (2nd, 3rd, 4th,and 5th
year), the limit will be stepped up
@10%.(short term credit limit sanctioned for 5th
year will be about 150% of the first year limit
allowed to farmers).
 Quick Success Series: Agriculture Advances
31st October , 2016
B. Marginal farmers: A flexible limit of Rs.
10,000 to Rs. 50,000 be provided as Flexi KCC
based on crops grown including post harvest,
warehouse storage related credit needs and other
farm expenses, consumption needs + small term
loan investments like purchase of farm
equipment, establishing mini dairy/back-yard
poultry without relating to value of land fixed for
a period of 5 years.
Margin: No separate margin need be insisted for
crop loan as the margin is built while fixing SOF.
15-25% investment credit requirement of small
value and repayable within a period of 1 year,
which can be included in KCC limit.
Collateral security : i. Collateral security is waived
for a. KCC limit of up to Rs.1 lac
b. KCC limit up to Rs.3 lacs for loans with tie-up
arrangement for recovery.
Repayment :
Fixed ‘repayment due dates’ given for KCC
accounts are assessed based on cropping pattern:
Mono crop - Kharif : 31st January or date fixed by
SLBC/DLTC.
Mono crop - Rabi : 31st July or date fixed by
SLBC/DLTC..
Double / Multiple crops/Long term Crop : Date
fixed by SLBC/DLTC or 12 month from date of
sanction.
(e Circular SNo.593/2014-15 dated 20.08.2014).
Nature of account : KCC will be in the nature of
revolving account. Credit balance in the account
will be eligible for interest at savings bank rate.
Validity: 5 years, subject to annual review.
Processing charges : Processing charges waived
for KCC limit up to Rs.3 lacs.
Disbursement: KCC borrowers shall be issued an
ATM cum Debit card (State Bank Kisan Card), to
enable them to withdraw from KCC accounts from
ATMs of our SBI group, in addition to the
disbursements at branches.
AGRICULTURAL GOLD LOAN
RBI has also reduced the risk weightage on loans
up to Rs. one lac against gold and silver
ornaments from 125% to 50%.
Advances against security of gold coins per
customer to gold coins weighing up to 50 gms
only. However, these instructions are not
applicable to loan against gold ornaments and
jewellery. (e-cir-98-04.05.2013)
Page 5
Objective: To enable farmers to meet their short-
term agricultural credit needs.
Eligibility: Any person engaged in agriculture or
allied activities as well as persons engaged in
activities permitted by RBI to be classified under
agriculture.
Type of Loan: Agricultural Cash Credit/Over draft.
Demand Loan/Term loan.
Margin: 30% on price of gold advised by LHO. In
deserving cases BM has discretion to reduce to
25% margin.
Interest: Interest should be charged as applicable
to agricultural advances.
Processing Fee: As applicable to Agriculture
Advances.
Repayment: a. Cash Credit / Overdraft: Like KCC,
it is a running account for a period of 3 years,
subject to review at annual intervals.
b. Demand Loan / Term Loan: the repayment
period of the loan should be fixed so as to
coincide with the harvesting and marketing
season. The total period will not generally exceed
one year from the disbursement of the loan in the
case of short-term loan / production credit and 36
months in other cases.
@Purity of gold can be ascertained by using the
following methods. a) Touch stone method b)
Nitric Acid method c) Specific gravity method.
@ Loans granted against gold & silver ornaments
are not to be taken into account for computation
of DCB (Demand, Collection & Balance) prepared
as on 30th June every year.
PRODUCE MARKETING LOAN
Objective: To help farmers avoid distress sale of
their produce. To offer the facility of loan against
the stocks stored in farm houses, in addition to
loan against warehouse receipts.
Eligibility: Farmers including group of farmers
who have availed crop production loans from the
branch or who have availed crop loan from other
Bank or who have not availed crop loan from any
Bank. Non-individuals like Partnership firms,
Corporate etc engaged in agriculture and allied
agri-activities.
Type of Loan: Demand Loan
Sanction limit: 60 % of values of produce
depending upon the place of storage, subject to a
maximum limit of Rs. 50 lacs.
Margin: 40%
 Quick Success Series: Agriculture Advances
31st October , 2016
Security: 1.Loan sanctioned against goods stored
in Farmer’s godown:
Primary: Hypothecation of stocks.
Collateral: Mortgage of land for loans above Rs.
1,00,000/-.
2. Loans sanctioned against Warehouse Receipts
(WHR):
Primary: Pledge of stocks.
Collateral: No collateral is required for loans up to
the maximum permitted limit of Rs.10 lacs under
the scheme.
Repayment: Loan has to be repaid within a
maximum period of 12 months.
Inspection: 1. Loans up to Rs.25000/- once in two
months and for loans above Rs. 25,000/- monthly
(if produce is stored at the farmer’s own
house/warehouse).
2. When produce is stored in a
warehouse/cold storage, the Branch Manager
will inspect the warehouse(s) every quarter.
(e cir-389 dt. 22.07.2013)
*with effect from 01.04.2013, loans to individual
farmers up to 50 lakh against
pledge/hypothecation of agricultural produce
(including warehouse receipts) for a period not
exceeding 12 months, irrespective of whether the
farmers were given crop loans for raising the
produce or not are classified as direct agri-
advance. Produce Marketing Loans, when
sanctioned to non-individual entities (as
mentioned above), like corporate, partnership
firms and institutions engaged in Agriculture and
Allied Activities are now classified as indirect agri
advance up to Rs 50 lakh. (ecir- 389 dt
22/07/2013)
FARMERS EASY EMPOWERED LOAN (FEEL):
“KRISHI KALYAN”
Objective: To provide timely and adequate credit
to farmers to meet production and consumption
expenses. To reduce the multiple process of
separate application, documentation & EM
creation for availment of KCC and PML, thereby
reduce the time for delivery of credit.
Eligibility: All non-defaulter and credit worthy
farmers – owner cultivators, tenant farmers, and
sharecroppers, having good track record.
Facility: Agricultural Cash Credit
Maximum Limit: a) Production Credit: No upper
limit
Page 6
b) Produce Marketing Loan: Sub limit of Maximum
of Rs 25 lacs per borrower
Margin: For Production Credit:- A) If scale of
Finance is applied- No margin
B) If computed from cost of cultivation (for limits
above Rs 1,00,000/-) -15 -25%
Produce Marketing loan:- 40%.
Security: Limit up to Rs 1 Lac: Primary:
Hypothecation of standing crops and / or stocks
stored under produce Marketing Loan.
Collateral: Nil
Limit above Rs 1 Lac: 1) If production credit
portion does not exceeds Rs 1 lac and produce
loan is against warehouse receipt & is below Rs 10
lac- Hypothecation of standing crops and/or
Pledge of stocks. 2) If production credit limit
exceeds Rs 1 lac & produce loan is against
warehouse receipt (below Rs 10 lac)- a.
Hypothecation of standing crops and/or Pledge of
stocks
b. Mortgage /charge over the land to the extent
of Production Credit Limit.3) If production credit
exceeds Rs 1 lac and produce stored in Farmers
own go-down- a. Hypothecation of standing crops
and stocks. b. Mortgage/charge over land.
INTEREST: KCC Loan: As applicable from time to
time to crop loan. PML Loan: As applicable to ACC
loan. Interest subvention is limited to the crop
period as in KCC and not during the period of
storage.
Repayment: Crop Loan amount will be liquidated
from Produce Marketing loan sanctioned to the
farmer. Produce Marketing Loan to be repaid
within a maximum period of 12 months.
Stock Statement: The borrower should submit
stock statements for the stocks at bi- monthly
intervals
Authorized Branches: The scheme will be
implemented only in Agri intensive branches
(selected by the controllers).
GENERAL CREDIT CARD (GCC)
Objective: To provide hassle-free credit to our
customers based on the assessment of cash flow
without insistence on security, purpose or end-
use of the credit.
Eligibility: existing customers having satisfactorily
conducted deposit accounts including for the last
6 months. Not to be extended to the KCC
borrowers.
 Quick Success Series: Agriculture Advances
31st October , 2016
Nature of facility: The credit facility extended
under the Scheme will be in the nature of
revolving credit i.e., Cash Credit.
Quantum of limit: not to exceed 20% of the
eligible production loan limit in case of persons
cultivating land and / or 20% of annual income of
the applicant from known sources or
Rs.25, 000/- whichever is less.
Interest rate: On par with Agri Short Term Loans.
(2 % above SBAR) Enhanced rate of interest at 2 %
p.a. be charged to borrowers who default in
repaying the loan.
Security: It is a clean and unsecured advance.
Repayment: Account will be in the nature of cash
credit. The outstanding amount in the GCC should
be cleared in full when the applicant is fluid with
cash.
Renewal: Account will be reviewed every year
and renewed after every 3 years.
Classification - As per RBI guidelines 100 percent
of credit outstanding under GCC up to Rs.25,000/-
per account will be treated as indirect agricultural
financing.
Documentation: Application, DP note (COS 229),
DP Note Take delivery Letter Arrangement Letter.
ARTHIAS PLUS
OBJECTIVES: To finance commission agents
against their receivables from farmers.
Eligibility (under Agriculture segment):
Commission agents enjoying good reputation and
holding a valid license from the market yard/
board and are in the line of business for the past 3
years, having receivables from farmers only,
functioning in rural and semi urban
markets/mandis.
Facility: Cash credit (Hypothecation of book debts
not older than 6 months)
Classification: Priority sector – Agricultural
segment – indirect Agri Finance.
Limit: Max. Rs. 50 Lacs
Margin: 40%
Security: Primary: Hypothecation of receivables &
movable assets (if any).
Collateral: Equitable Mortgage of Resi / Comm.
Property (Non-Agri) with worth 1.5 times of the
advance (Upto Rs. 25 lacs ); 2 times of the
advance value (Above Rs 25 lacs and upto Rs. 50
lacs).
Page 7
Interest: (a). Upto Rs. 10 lacs : SBAR (b) Above Rs
10 lacs and upto Rs. 25 lacs : 0.25 % above SBAR.
Above Rs. 25 lacs and upto Rs. 50 lacs: As per CRA
Model.
Repayment: Maximum Six months. Loan should
be liquidated at the end of cropping season with
reasonable time for marketing.
# Loans to commission Agents financed by our
Urban & Metro branches: Loans upto Rs. 10 lakhs
– SBF Segment. Loans above Rs 10 lakhs – C & I
Segment.
KISAN GOLD CARD SCHEME (KGC)
A general-purpose loan meant for meeting credit
needs of farmers for productive and consumption
purposes.
Eligibility: Farmers having good track record of
repayment in their ACC/ATL/KCC accounts
for the last two years. New borrowers who
maintain sizeable deposit with our branches for
the last 2 years.
Purpose: Investment credit: 80% of the eligible
limit can be utilized for creation or purchase of
any productive assets other than for i) Purchase of
land, ii) Construction of farm house and iii)
Purchase of tractor & its accessories.
Consumption loans: To meet domestic expenses
like education, marriage, medical expenses etc.,
20% of the eligible KGC limit.
Limit: Five times the annual farm income or 50%
of the value of land (to be) mortgaged as
collateral security, whichever is less, with a
maximum of Rs. 10 lacs minus term loan
outstanding if any at the time of application. This
is in addition to KCC limit.
Margin: Investment Purpose: 10% Consumption
Purpose: 30%.
Period: One year from the date of sanction.
Repayment: Each loan will have its own
repayment schedule, subject to the usual norm of
a maximum of 6-7 years for the repayment of AT L
( 9 years for Horticultural orchards).
Security: As per ATL.
# A single set of loan documents may be obtained
for the entire KGC limit sanctioned A separate a/c
to be opened for each purpose and separate
repayment schedule for each a/c stipulated.
Maximum number of accounts permissible is five.
Treated as ATL accounts. Cash disbursals are
 Quick Success Series: Agriculture Advances
31st October , 2016
allowed to the full extent of credit limit as in the
case of KCC.
SHG CREDIT CARD
Eligibility- Reached third level of credit linkage and
enjoying a credit limit of Rs 50000/-. Good
repayment record. At least 2 members should be
literates to operate the account.
-Minimum limit: Rs 50000/- made available as
cash credit. Maximum 4 times of the corpus of the
SHG.
-No separate margin required. Hypothecation of
the assets is the security.
-Valid for 3 years.
SHG GOLD CARD
Eligibility same as for SHGCC
-Minimum limit Rs 200000/- sanctioned as Term
Loan. Issued only for starting / carrying on
economic or income generating activities.
-No separate margin required. Hypothecation of
the assets is the security
-Valid for 3 years.
JOINT LIABILITY GROUPS OF TENANT
FARMERS (JLG)
Objectives: To augment flow of credit to tenant
farmers cultivating land either as oral lessees or
sharecroppers and small farmers who do not have
proper title of their land holding through
formation and financing of JLGs.
-An informal group compromising preferably 4 to
10 individuals (may be considered upto 20)
engaged in similar economic activity like crop
production, coming together for purpose of
availing bank loan either singly or through group
mechanism against mutual guarantee.
Purpose of loan: crop production, consumption,
marketing and other productive needs. Facility as
KCC, ACC or ATL depending on purpose. Max loan
amount Rs 50000 per individual. Margin as per
usual norms, mutual guarantee, no collaterals.
MODIFIED NEW TRACTOR LOAN SCHEME
(Modified NTLS)
(eCir- 1187/2014-15 dt 06/01/2015)
Eligibility: Any individual or group of individuals
i.e., JLGs/SHGs, institution or organization are
Page 8
eligible for finance which will have sufficient and
regular income either from own farm activity or
custom hiring incomes from the tractor proposed
to be purchased and its accessories.
Minimum land holding: Borrower should possess
a minimum land holding of 2 acres.
Quantum of Loan: a. The total cost of tractor,
cost of accessories and implements (As per the
dealer net price invoice obtained from reputed
dealers of tractors of the approved tractor
companies for the approved models)
b. Add: Additional amount for insurance and
registration
c. Less: Margin to be brought in by the applicant
(minimum 15%)
d. Net Bank Loan:
Minimum of loan amount: No Minimum,
Maximum of loan amount : No ceiling.
Margin: 15% of the total cost of tractor, cost of
accessories, implements, insurance and
registration.
Security:
a. Loan limit Upto Rs.1,00,000
Primary: Hypothecation of Tractor,
accessories and Implements purchased out of
Bank finance.
Collateral: NIL
b. Loan limit Above Rs.1,00,000
Primary: Hypothecation of Tractor,
accessories and Implements purchased out of
Bank finance.
Collateral: Registered/equated mortgage of
land for Value not less than100% of the loan
amount or third party guarantee, good for the
amount involved.
If there are genuine difficulties in the creation
of mortgage/charge on lands wherever
required, branch may take Third Party
Guarantee after obtaining permission from
the Controlling Authority.
Repayment:
In order to have a standardized approach for
regular repayment every month and to maintain
connectivity with the customer, the total scores
awarded under parameters ‘Hiring Potential’ plus
‘ % age of income from Allied Activities’ in
 Quick Success Series: Agriculture Advances
31st October , 2016

“Tractor Scoring Model” will be adopted to i) Target group

determine the • High Net worth farmers who are capable of
repayment schedule of the Tractor Loan. purchasing tractor with cash (who secures 61 &
above under Tractor Credit Scoring Model)
Combined Loan Repayment • Existing farmers
Marks scored • New farmers
Under (Hiring • Good borrowers banking with other banks.
Potential + % ii) Eligibility
age of income
• Farmer should possess a minimum land holding
From allied
of 2.00 acres.
activities)
Monthly EMI covering Principal
• All farmers-individuals/Joint borrowers who are
11- 14
+Interest owner cultivators.
6-10 Monthly Rs.1000 per Lakh of loan iii) Purpose
outstanding to service interest and • To meet the cost of purchase of Tractor
residual interest plus Principal at (including insurance + registration charges)
Quarterly intervals iv) Quantum of loan: 100%
5 and below Monthly Rs.1000 per Lakh of The total cost of the tractor including insurance
loan outstanding to service and registration charges ( As per the dealer net
interest and residual interest price invoice obtained from reputed dealer of
plus Principal at Half yearly tractors of the approved tractor companies for the
intervals approved models). Cost of accessories not to be
Post dated cheques have to be obtained from the included.
borrower for the EMI.
Interest: As applicable to Agriculture term loan v) Margin
time to time. Minimum 25% of the cost of tractor including
insurance and registration charges. The margin
For prompt repayment, further concession of have to be deposited in the form of TDR in the
interest @1% p.a by way of incentive is extended branch with Zero rate of interest and lien have to
to the borrower. Concessions will be extended in be marked on TDR for the entire tenure of tractor
the month of July and will be on the basis of loan.
installment recovered between 1st July to 30th vi) Security
June of every year. • Primary: Hypothecation of Tractor purchased
Penal interest during the irregularity period: out of Bank’s finance.
1.00% p.a • Collateral: Lien on TDR accepted as a Margin
Penal interest for failure to get the vehicle Money.
registered within one month from the date of vii) Credit Scoring Model
delivery: Levy @2% for the period of default for • Application of revised Tractor Credit Scoring
the borrower (to be recovered by branches) Models for appraisal of loan and to fix the
differentiated EMIs. The scoring model will serve
NEW TRACTOR LOAN PRODUCT TATKAL as a credit decision making tool and will
(MORTGAGE FREE) TRACTOR LOAN (TTL) strengthen the existing system of sanction or
(e-Circular Sl No.882/2015-16 dated 14.10.2015) reject of loan.
• Credit Score of 61 & above are considered for
To improve our market share in tractor finance sanction.
and to facilitate prompt loan delivery to High Net xiii) Repayment :
Worth farmers who otherwise purchases tractor There will two types of repayment period i.e. 48
on cash, a new product TATKAL (MORTGAGE months when the installments are calculated on
FREE) TRACTOR LOAN (TTL) has been rolled out. the basis of net loan (Loan – Margin kept in TDR)
and 60 months when the installments are
calculated on the basis of total loan without

Page 9
 Quick Success Series: Agriculture Advances
31st October , 2016
netting. Frequency of installment will be based on
the total scores awarded under the parameters”
Hiring potential + Percentage of income from
allied activities under Tractor Credit Scoring
Model will be adopted to determine the
repayment schedule of the tractor loan.
Stree Shakti Tractor Loan (SSTL)
(e-Circular Sl No.268/2014-15 dated 11.06.2014)
Eligibility:
a) The loan shall be sanctioned with women as co-
borrowers.
b) Minimum agriculture land holding of 2 acres in
the name of borrower(s).
c) Minimum net annual income of the borrower(s)
is Rs.1.50 lacs from farm activity /custom hiring /
other sources.
d) Income of the co-borrower(s) may be reckoned
for arriving at Net Annual Income.
e) EMI / NMI shall not exceed 60%.
f) Branches should verify and ensure that cost of
accessories purchased, if any, along with the
tractor is reasonable and whether they are
actually required by the borrower(s).
Margin:
a) SSTL Without Collateral security: Min. of 50%
(proposed vide e-Cir Sl no. 597/2015-16 dated
12.08.2015)
i) Where only Tractor is being financed, the
margin will be 25% (as the invoice price can be
crosschecked)
ii) Where implements are also being financed, the
margin for Tractor component - 25% and for
accessories – 50%
b) SSTL With Collateral security: Min. margin 10%
Primary security
a) Hypothecation of tractor & accessories.
b) Insurance: The tractor and accessories
purchased with bank’s finance have to be
comprehensively insured for the full value.
Collateral Security:
a) Mortgage of immovable properties is not
envisaged.
b) Security of gold ornaments, NSC, Time Deposits
(advance value of gold ornaments, time deposits,
NSC) to the extent of a minimum 30% is obtained
for loans sanctioned under ‘SSTL with Collateral’.
Repayment
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10
a) SSTL Without Collateral security: Maximum 36
EMIs with 1 month moratorium.
b) SSTL With Collateral security: Maximum 48
EMIs with 1 month moratorium.
Interest: (linked to MCLR)
a) SSTL Without Collateral security: 9.15
+2.05(spread) =11.20.
b) SSTL With Collateral security: 9.15 +1.80
(spread)=10.95
c) Penal interest during the irregularity period:
1.00% p.a.
d) Penal interest for failure to get the vehicle
registered within one month from the date of
delivery attracts: 2% for the period of default for
the borrower (to be recovered by branches).
SCORING MODEL FOR TRACTOR LOANS
Purpose: To provide finance for purchase of new
tractors, accessories and implements. (revised
wef 01/01/2011)
Features: While proposals with credit score of 56
& above (out of 100) are considered ‘Good Loans’
for sanction, proposals with credit score of 26 and
above but up to 55 may be considered after credit
enhancements or to be referred to the next
higher authority. Proposals with credit score of 25
and below should not be considered for sanction.
Eligibility: Agriculturists (individually or jointly).
Margin/Interest: As per ATL.
Security: Primary security: Hypothecation of the
tractor, accessories and implements. Noting of
Bank’s hypothecation charge in the RC Book.
Collateral security: As per scoring.
Upfront fee: Loan amount upto Rs.2,00,000/- :
NIL. Above Rs.2,00,000/- : @ 1.25% of the
amount.
Repayment: Within a maximum period of 9 years,
including a grace period not exceeding 12
Months, payable half-yearly / yearly, coinciding
with the harvesting.
Inspection: Regular loans (any amount) -
Inspection once in six months. Irregular loans
(any amount) - Monthly visits.
FINANCING OF SECOND HAND / USED TRACTORS
SCHEMES:
(Scheme withdrawn vide e Cir SNo.29/2016-17
dated 04.01.2016)
 Quick Success Series: Agriculture Advances
31st October , 2016
FINANCING POWER TILLERS
Farmers or a group of not more than 3 farmers
owning 01 acres of land. Farmers owning lesser
acerage also become eligible for availing Power
tiller loans provided DSCR work out to 1.75 and
above, Income from Custom hiring adequate,
farmers adopting intensive cultivation practices.
Loan Amount: As per Invoice less margin.
Margin: A minimum margin of 10% on the total
cost of power tiller plus accessories.
Security: Primary: Hypothecation of assets.
Collateral (up to Rs 1,00,000): Nil. For loans
above Rs.1,00,000 and up to Rs.2.00 lacs :
mortgage of land, Value shall be at least 50% of
the loan amount. Or One third party guarantee,
Or liquid at least 50% of the loan amount. Above
Rs 2 lacs: EM of land at least 50% of the loan
amount.
Repayment: a. 60 Months
b. Instead of EMI, DMI (Differentiated Monthly
Instalments) may be stipulated
c. Monthly repayments of minimum amount say
Rs.500 may are stipulated to maintain
borrowers’ continued relationship with Bank.
d. Repayment of residual interest plus principal
may be stipulated at half yearly intervals.
(e-cir SNo.1518/2015-16 dated 10.03.2016
FINANCING FOR COMBINE HARVESTERS
ELIGIBILITY & REPAYMENT:
a. For self propelled Combine Harvester: Farmers
enjoying high creditworthiness own 8 acres of
irrigated land. Minimum DSCR – 1.75. Owning
lesser acreage can also avail if DSCR is 1.75 and
above and liquid at least 50% of the loan amount
(sanctioned by RMs only).
b. For Combine Harvesters as an attachment
/equipment : : Farmers enjoying high
creditworthiness own 6 acres of irrigated land.
Minimum DSCR – 1.75 Farmers should own a
tractor of not less than 50 HP. Owning lesser
acreage can also avail if DSCR is 1.75 and above
and liquid at least 50% of the loan amount
(sanctioned by RMs only).
Repayment: A repayment period of 9 years
(including grace / gestation period).
MARGIN: 15 - 25 %
Security: Primary Hypothecation of the Tractor /
Combine harvester along with accessories
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11
purchased out of Bank’s finance. Collateral:
Mortgage of land / Buildings.
Other features: Advance only for new harvesters.
Models approved by CFMTTI, Budni /FMTTI,
Hissar.
TRACTOR UPGRADATION (SANJEEVANI)
(FINANCE FOR REPAIRS, MAINTENANCE AND
ADDITION OF NEW IMPLEMENTS
ETC. TO TRACTORS) (Since w.e.f. 01-04-2016 vide
circular No. Sl. No. : 30/2016 – 17 dated
01.04.2016)
DAIRY PLUS (SCHEME FOR FINANCING DAIRY
UNITS)
To finance milk producing members of ‘AMUL’
pattern societies recognized private milk dairies
posting profit in the past two years.
PURPOSE: Construction of dairy shed Purchase of
quality milch animals, milking machine, chaff
cutter or any other equipment required for the
purpose.
Eligibility: Individual member of Amul Type
society, age below 65 years with min. Individual
Dairy < 10 animals min 0.25 acre land per 5
animals for growing feed & able to procure
balance locally, > 10 animals 1 acre own or lease
land per 5 animals.
Limit: A Term loan of Maximum Rs.5 lacs. A
working capital @ Rs.2500/- per animal per year
may be sanctioned. Min DSCR: 1.75.
Margin: As per ATL.
Security: Primary – hypothecation of assets.
Collateral – up to Rs. 1.00 lac : Nil. Over Rs.1 lac -
Mortgage of landed property (or) third party
guarantee worth for loan amount (or) group
guarantee of other 2 dairy farmers.
Repayment: 5 Years in monthly installments with
Gestation period – 6 months.
Rate of interest: As applicable to direct
agricultural loans (ATL).
Other terms: Minimum yield criteria: Buffaloes –
7 lit/day (lactation average) Cow – 8 lit/day
(lactation average). Fodder cultivation can be
financed as per scale of finance. Payment to the
bank directly by the society. Milk union operation
& milk route facility are essential.
 Quick Success Series: Agriculture Advances
31st October , 2016
SCHEME FOR FINANCING DAIRY SOCIETIES
Objectives: To provide finance for creating
infrastructure like Construction of “milk house or
society office”, Purchase of “Automatic milk
collection system”, transport vehicles, Bulk
chilling unit.
Eligibility: Society should have ‘A’ grade milk
societies – registered & affiliated to district milk
union, no adverse remarks in the audit report of
previous 2 years, supplying 1000 lit/day to milk
union, audited balance sheet for at least previous
2 years, earning pretax profits for the last two
years, borrowing powers as per bye-laws of the
Society.
Classification: Indirect agriculture finance;
Agricultural term loan (ATL).
Limit: Maximum – 4 times the average profit of
previous 2 years maximum Rs 10.00 lacs.
Milk house or society office Rs. 2 lakh, Automatic
milk collection system Rs. 1 lakh, Milk
transportation Rs. 3 lakh, Chilling Unit Rs. 4 lakh.
Margin: 15%
ROI /Documents: As applicable to ATL.
DSCR: Min. 1.75
Security: Primary: Hypothecation of assets.
Collateral: Mortgage of landed property (or)
Guarantee of milk union. Letter of undertaking
from milk union to deduct and pay bank the
amount till liquidation of loan.
Repayment: Repayable in 5 years with a gestation
of 6 months, with monthly installments.
BROILER PLUS (Scheme for financing Broiler
Farmers under Contract farming)
Objectives: extended to both existing farmers and
new farmers having “Contract Broiler Farming”
arrangements for enabling them to construct
poultry shed and feed room and for purchase of
equipments.
Eligibility: The applicant should have experience
or had undergone training in poultry farming.
The farmers should possess adequate land for
construction of poultry shed, which should be at
least 500 meters away from any existing poultry
farm.
Economic flock size: The minimum flock size
should be 5000 birds. However, financing can be
done for 10,000 and 15, 000 birds or part thereof.
A model scheme has also been circularized by the
Bank. Rearing Period of birds: 7 weeks
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12
Margin: 25%
Maximum Loan: Rs.9.00 lacs per farmer.
DSCR: 1.40
ROI: As applicable to ATL.
Type of Advance: Agricultural Term Loan.
Security: Primary: Hypothecation of assets.
Collateral: Mortgage of land on which the poultry
shed and other infrastructure are available or are
proposed to be constructed to cover at least 50%
of the value of the advance.
Repayment: Max 5 years, inclusive of a grace
period of 6 months, with installments at
bimonthly intervals.
Other terms: Copy of Bi-partite agreement
between the farmer and the hatchery as per the
bank’s specimen, Letter of undertaking to the
Bank by the broiler integrator. WC not needed as
it is met by hatcheries.
SCHEME FOR FINANCING MICRO FINANCE
INSTITUTIONS (MFIs) / NON GOVERNMENT
ORGANISATIONS (NGOs) (ecir-1283 dt. 26/03/2013)
To enable the Bank to lend to MFIs/NGOs for on
lending to SHGs /JLGs/ Individuals and to increase
the outreach by financing large number of SHGs in
cost effective manner, supplementing the efforts
of the branches in financing SHGs.
Eligibility: NGOs/ MFIs should any one – Regd
Society/ Regd Trust/ Regd Company/ Non Banking
F Is or any Institution engaged in micro-finance.
NGO/ MFI having minimum partnership of
SHG/JLG –50 and individuals - 500. In cluster
financing min membership of Federation should
be 30 SHGs. Existing for last 12 months and
running micro credit programme for last 6
months, continuous profit making, maintains a
satisfactory & transparent accounting, MIS and
Internal Audit System, not be defaulter, having
risk portfolio less than 5% etc.
Rating: Loan below Rs 25 lacs – Specific Scoring
model – min 60 marks.
For loan of Rs.25 lacs and above - CRA rating is
compulsory as applicable to NBFC model and
guidance note on banking exposure to be
followed i.e, SB 5 and above for new connections
and SB 7 for enhancement. Rating from external
rating agency
Facility: MTL or CC. Margin: Nil.
TOL/TNW: Maximum permissible TOL/TNW to be
5 and additionally Debt /Equity is capped at 5:1.
 Quick Success Series: Agriculture Advances
31st October , 2016
Repayment: TL – Monthly/ Quarterly/ HY
installments on the basis of project/ purpose, max
3 yrs. CC – renewal annually.
Security: Primary – Hypo of Book debts,
Collateral: For Non-NBFCs -Nil, however,
Guarantee of Promoters and charge over available
assets to be explored.
For NBFCs/ NBFC-MFIs - The collateral security to
be obtained from NBFCs / NBFC-MFIs under the
scheme shall be as per the guidelines for collateral
security applicable for NBFCs
Sanctioning Authority: Not below AGM.
SCHEME FOR DEBT SWAPPING OF BORROWERS
To extend finance to farmers for paying off loans
taken from non institutional lenders (e.g. money
lenders etc.) and to enable such farmers in
distress, meet their crop production needs.
Eligibility: All existing farmer borrowers as well as
other farmers in the operational area of the
branch.
Classification: Direct Agriculture.
Quantum of loan: The loan granted shall be 100%
if the debt is on account of cultivation or agri
activity or Rs.1,00,000/- (ecir- 1024 dt.
08.03.2011) whichever is lower. Simultaneously,
the applicant shall be financed Kisan Credit Card
which includes additional 20% of the production
limit to meet contingent requirements or / and
Agriculture Term Loan. The amount of ‘debt’ of
the farmer is assessed based on the stamped
affidavit given by the applicant.
Method of assessment: a. Debt being financed
will be given as an ATL repayable in 3 to 5 years b.
Gross DSCR of 1.75 will be maintained.
Sanctioning authority: The Branch
Manager/Division Manager only should sanction
loans under this scheme strictly.
Disbursement: disbursed preferably to the money
lenders, an appropriate receipt for the discharged
debt from the money lender should be obtained
and kept with the loan documents.
Security: All the existing security available with us
both primary & collateral should be extended to
cover the loan. Collateral security by mortgage of
agriculture property.
Repayment: Repayable in yearly/half yearly
installments in three to five years.
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LAND PURCHASE SCHEME
To assist Small & Marginal farmers, Tenants
Cultivators, Share Croppers and landless
agricultural labourers for purchase of land.
Eligibility: The borrowers should have a record of
prompt repayment of the loan for at least two
years. Good borrowers of other Banks may also
eligible provided they liquidate their outstandings
to other banks.
Quantum of loan: Maximum Rs. 5 lacs. (Excluding
development charges)
Loan may be considered for: Cost of land.
Provision of irrigation facilities & land
development (shall not exceed 50% of the cost of
land). Purchase of farm equipments. Registration
charges & stamp duty.
Farmers assisted under the scheme may also be
given crop loans (KCC only)
Margin: As per ATL.
Gestation period: 1-2 years: If it is to be
developed. 6 Month-1year: Developed land
Repayment: Max. 9-10 years beginning after the
expiry of gestation period, with half-yearly
installments.
Security: To be secured by way of mortgage of
land to be purchased.
SETTING UP OF AGRI-CLINIC & AGRI BUSINESS
CENTRES SCHEME (ACABC Scheme)
To provide self employment opportunities to
technically trained persons.
Eligibility: Persons having technical degree in
Agricultural or allied to agriculture like
horticulture, animal husbandry, forestry, dairy,
veterinary, poultry, pisciculture and other
activities. The subsidy would be admissible only in
respect of agricultural graduates trained under
ACABC scheme on or after 1st April, 2004.
Project cost: Individual Activity – Rs.20 lacs.
Group Activity – Rs.100 lacs . In case of group
projects, if the group consists of 5 or more
persons, all except one of them would have to be
agriculture graduates trained under the scheme
and the remaining could be non-agri graduate
with experience in business development and
management.
Margin: Upto Rs. 5.00 lacs – NIL. Above Rs. 5.00
lacs - 15 - 25%
Facility: Ag. Term Loan (Indirect Finance)
 Quick Success Series: Agriculture Advances
31st October , 2016
Security: Upto Rs. 5.00 lacs: Primary:
Hypothecation of assets created. Collateral: NIL
Above Rs. 5.00 lacs. Primary: Hypothecation of
assets created. Collateral: Mortgage of land or
Third party guarantee with the permission of
controller.
Repayment: 5-10 years with grace period of
maximum 2 years.
Training: MANAGE (National Institute for
Agricultural Extension Management)
Hyderabad is responsible for providing training.
Refinance: 100 % By NABARD.
Soft loan assistance: 50 % of margin to be
contributed by the applicant is provided by
NABARD as Soft loan without any interest.
Subsidy: There is a provision for enhanced
composite subsidy @ 36% of total fund outlay
(44% in the case of women/ SC/ST candidates
from NE and hilly states).
Agricultural Marketing Infrastructure (AMI)
[Gramin Bhandaran Yojana & Scheme for
Development/ Strengthening of Agriculture
Marketing Infrastructure, Grading and
Standardization (AMIGS) Subsumed in Scheme
for Financing Agriculture Marketing
Infrastructure (AMI)]
(Please refer e-Circular Sl No. 402/2014-15 dated
17.07.2014)
It has been advised by NABARD that the two
aforesaid Schemes have been subsumed with
effect from 01.04.2014 into a new Scheme named
Agricultural Marketing Infrastructure (AMI) for
implementation during the 12th Plan period. The
objective of the captioned Scheme is to
encourage creation of post harvest storages and
primary processing value chain in agriculture,
from post-harvest management to the stage of
primary processing, by transfer of direct benefit
to farmers.
Particulars: Gramin Bhandaran Yojana is being
implemented since April 2001 and the Scheme for
Development/ Strengthening of Agriculture
Marketing Infrastructure, Grading and
Standardization (AMIGS) is being implemented
since 20.10.2004. It has now been decided that
the existing two schemes be subsumed with
effect from 01.04.2014. In respect of all the
projects sanctioned under the previous guidelines
(sanctioned till 31.03.2014), claims of Subsidy ha
to be submitted to the concerned Regional Office
of NABARD, as per the then prevailing guidelines
of the Schemes viz Gramin Bhandaran Yojana and
AMIGS.
in
Objectives of the scheme:
i. To develop agricultural marketing infrastructure
including horticulture, dairy, poultry, fishery,
livestock and minor forest produce.
ii. To promote innovative and latest technologies
in agricultural marketing infrastructure.
iii. To promote direct marketing.
iv. To promote creation of scientific storage
capacity for storing farm produce, processed farm
produce and agricultural inputs etc.
v. To provide infrastructure facilities for grading,
standardization and quality certification of
agricultural produce.
vi. To promote Integrated Value Chains (confined
upto primary processing stage only) to provide
vertical integration of farmers with primary
processors.
vii. Primary processing means adding value to the
produce without change in its form and may
include washing, sorting, cleaning, grading,
waxing, ripening, packaging, labeling etc.
Eligible Marketing infrastructure:
The activities eligible for financial assistance
under the Scheme are the following:
i. Creation of scientific storage capacity like
godowns, including standalone silos for storage of
food grains with necessary ancillary facilities like
loading, unloading bagging facilities etc.
(Assistance for storage infrastructure will be
available on capital cost of project including cost
of project including cost of allied facilities like
boundary wall, internal roads, internal drainage
system, weighing, grading, packing, quality
testing and certification, fire fighting equipments
etc.)
ii. Cold storages as a part of a permissible
integrated
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 Quick Success Series: Agriculture Advances
31st October , 2016

value chain prject will also be admissible provided

the cold storage component is not more than 75% Subsidy: Capital cost of the project for the
of the Total Financial Outlay. purpose of subsidy will be calculated on the
iii. Creation of Marketing infrastructure upto project cost as appraised by the Bank/FI or actual
primary processing stage like: Cleaning, Cutting, cost of eligible components, as certified by a
Depodding, De cortication,Bleaching, Grading, Chartered Accountant, whichever is lower.
Sorting, Packing, Labeling, Waxing, Ripening This is also subject to the subsidy ceiling per MT
Chilling, Pasteurization, Homogenization, freezing, and the overall ceiling provided in the following
Refrigeration. tables:
iv. Common facilities in the market yard like: Storage & Infrastructure projects:
platform for auctioning of the produce, loading, Category Rate of Subsidy ceiling
un loading, assembling, drying, cleaning, grading, subsidy Up to More Maxim
(on capital 1000 than um
weighing, mechanical handling equipments etc cost) MT in 1000 ceiling
including ancillary supporting infrastructure Rs./MT MT (Rs.
Primary processing in value chain, Functional and Lakhs)
upto
infrastructure for collection/ assembling/, drying, 30000
cleaning, grading, standardization, sanitary & MT in
phytosanitary measures, quality certification, Rs./MT
labeling, packaging, ripening chambers, waxing, A) NE States, 33.33% 1333.20 1333.20 400.00
Sikkim, UTs
value addition (without changing the product of Andaman
form). For functional infrastructure &
v. Equipments for other value addition Nicobar &
Lakshadweep
(Important: Subsidy for ancillary/ supporting
Islands,
infrastructure in the project will be restricted to hilly*
25% of total permissible subsidy of the project areas
Stand alone ancillary/ supporting infrastructure B) In other
project will not be eligible for subsidy assistance Areas
1. For 33.33% 1166.55 1000.00 300.00
under the scheme.) Registered
FPOs,
Eligible beneficiaries Panchayats,
Women,
Individuals, Group of farmers/ growers, SC/ ST
Registered Farmer Producer Organizations, Beneficiaries
Partnership/Proprietorship firms, Companies, or their
cooperatives
orporations Non Govt. Organizations, Self Help **
Groups, Cooperatives, Cooperative Marketing /Self-help
Federations, Autonomous Bodies of the Govt, groups
Local Bodies (Excluding Municipal Corporations 2. For all 25% 875/- 750/- 225.00
other
for storage infrastructure projects), Panchayats, categories of
State Agencies including State Govt Deptt. And beneficiaries
autonomous organizations/ State owned
Corporations such as Agri-produce Market Infrastructure projects other than storage
Committees and Marketing Boards, State infrastructure:
Warehousing Corporations, State Civil Supplies Category Rate of Subsidy Maximum
(on capital cost) Subsidy
Corporations etc. Ceiling (Rs. in
lakhs)
Promoter’s contribution and minimum Term A) N E States, 33.33% 500.00
Sikkim, States of
Loan: Minimum contribution of the promoter: Uttarakhand,
20% of the project cost. Himachal
Pradesh, Jammu
Minimum Term Loan including subsidy should be & Kashmir, UTs
50% of the project cost. of Andaman &
Nicobar and

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 Quick Success Series: Agriculture Advances
31st October , 2016
Lakshadweep
Islands, hilly* areas
B) In Other Areas
1. For registered 33.33% 500.00
FPOs, Women,
SC / ST
beneficiaries and
their cooperative
**
2. For all Other 25% 400.00
categories of
beneficiaries
* Hilly area is a place at an altitude of more
than 1,000 meters above mean sea level.
** SC/ST cooperatives to be certified by the
concerned officer of the State Government.
FINANCING COLD STORAGE
Objectives: To promote setting up of cold storage
and reducing post harvest losses.
Eligible Organisations : Individuals / Farmers,
Group Farmers / Growers, Companies, NGOs,
Partnership / Proprietary Firms, Corporations, Co-
operative Agricultural Produce Marketing
Committees, Marketing Boards / Committees and
Agricultural Industries Corporations.
Project Cost: An estimated project cost of upto
Rs.16.00 crores may be considered.
Margin: 25% of the project cost.
Subsidy: The projects of upto 5000 MT capacity
are eligible for capital subsidy of upto 25% of
project cost subject to a maximum of Rs.50 lacs
and in case of projects in NE States and hilly areas
and those belonging to SC/ST, 33.33% of project
cost, subject to a maximum of Rs. 60 lacs. Subsidy
is provided by National Horticulture Board (NHB),
through NABARD as a back-ended subsidy. For
loans upto Rs.20 lacs inspections will be
conducted by the Officials from the Banks
concerned. For loans of above Rs.20 lacs, joint
inspection will be conducted as above with NHB
officials.
Pattern of Assistance: 25 % promoter’s
Contribution (Margin), 50 % Term Loan from
Bank, 25 % back-ended Capital Investment
Subsidy by NHB.
Security: As applicable to Agricultural Term Loans.
Rate of Interest: As per rates applicable to ATLs.
Documentation: As applicable to ATLs.
Repayment: The loan has to be repaid within a
maximum period of 9 years inclusive of a grace
period of 2 years installments are fixed depending
on the cash flow.
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Classification: Indirect Finance to Agriculture
under priority Sector.
SCHEME FOR FINANCING PRIVATE COLD
STORAGE /PRIVATE WARE HOUSES FOR
ONLENDING TO FARMERS
Purpose: For financing private cold
storages/warehouses for on lending to farmers
against agricultural commodities stored in the
cold storage / warehouse.
Eligibility: All private cold storages/warehouses if
the promoters are of good repute and
Integrity, capacity of the cold storage more than
5000 MT, registered post-tax profits for the last 3
years, all their existing accounts classified as
“standard asset”. New cold storages can also be
considered with the permission of the controlling
authority.
Limit: Will be equivalent to 60% of the value of
their operating capacity or 60% of the average
value of produce/commodities stored during the
past 12 months whichever is lower. Minimum:
Rs.25.00 lacs; Maximum: Rs.1.00 crores.
Type of Facility: Clean Cash Credit.
Security: Primary: NIL. Collateral: EM of the
warehouse / cold storage to cover100% of loan.
Personal guarantee of the proprietor /partners /
directors.
Interest rate: Interest rate is fixed based on the
CRA as applicable to Agricultural Advances. Units
with CRA rating of SB4 and below should not be
financed.
Renewal/Repayment: The limit is valid for 12
months and needs to be renewed every year. The
cash credit account should be brought into credit
balance by the end of November each year.
Segmentation: “Indirect Agricultural Advances”
under priority sector.
SCHEME FOR FINANCING SEED PROCESSORS
Objectives: To extend financial assistance to the
seed processors against their receivables due to
them from the seed growers.
Eligibility: Seed processors / units enjoying good
reputation & credit worthiness, holding a valid
license from the concerned State Department of
Industries for installation of Seed Processing
Plant, having valid certificate from Seed
Certification Department, Doing business for the
last 3 years, having receivables from the farmers,
 Quick Success Series: Agriculture Advances
31st October , 2016
who have posted profits during the past two years
of operation.
Facility: Agriculture Cash Credit (Hypothecation of
receivables not older than 6 months).
Loan amount: Need based ACC limit without
upper ceiling but above Rs.2.00 lacs.
ROI: Interest rate will be charged @ 1% below
SBAR min 9.75% for limits above Rs 2 lacs but
below Rs 25 lacs. For limit above Rs 25 lacs as per
CRA rating.
Margin: 40 % of the value of the receivables.
Security: Primary: Assignment/hypothecation of
receivables from the farmers. Collateral: EM of
residential/ commercial property worth 1.5 times
the limit .
Assessment: As applicable to trade advances. A
simple certification / debts of receivables not
older than 6 months and a maximum of 60% of
aggregate value of receivables should be fixed as
the credit limit.
Other terms: Loan to be liquidated within a
maximum period of 6 months for each crop
season i.e., Rabi & Kharif. Statement of eligible
receivables should be obtained at half yearly
intervals.
MORTGAGE LOAN TO SEED PROCESSING UNITS
Purpose: To Provide hassle free finance to Seed
Processing Units who are willing to furnish
mortgage of property of adequate value.
Eligibility: Existing customers, new connections
including takeovers, first generation
entrepreneurs as well as promoters of existing
units
Nature & type of facility: Fund Based - Cash
Credit
Quantum of Loan: Minimum Rs.5,00,000 &
Maximum –Rs.1.00 crores.
Assessment of Limits: 65% of the realizable value
of the property subject to a
maximum of 40% of the projected annual
turnover.
Margin: 35% of realizable value of property
Processing Fee: Working capital limits (Fund
Based +Non Fund Based) – For limits above Rs.5
lacs-Rs.250/- per lac or part thereof. Maximum
Rs.10 lacs.
Security: Primary: Hypothecation of stocks and
receivables. Collateral: Tangible security of
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minimum of 153% of loan amount in the form of
Equitable Mortgage of land & building.
Repayment: On Demand.
Stock Statement: Only once at the time of
execution of documents and as on 28th February
every year.
Inspection: inspected by the field staff, once
before sanction and at after disbursal for
Standard Asset: once a year by Field Officer, for
Sub standard Asset: the account to be reviewed
immediately and the inspection to be done at
quarterly intervals.
CAPITAL INVESTMENT SUBSIDY SCHEME FOR
COMMERCIAL PRODUCTION UNITS OF ORGANIC
INPUTS UNDER NATIONAL PROJECT ON ORGANIC
FARMING
Objective: To promote organic farming in the
country by making available the organic inputs
such as Biofertilizers and Biopesticides and Fruit
and vegetable waste compost.
Eligibility: New as well as existing units (for
expansion / renovation) engaged in the
production are eligible under the scheme e.g
Biofertilisers and Biopesticides production Unit,
Fruit and Vegetable Waste Compost production
Unit.
Pattern of assistance: TERM LOAN- Owner's
contribution 25%, Subsidy from Government of
India 25% subject to the maximum ceiling, Bank
loan 50%.
Project cost: Project cost can include the cost of
land and land development, civil works,
equipments etc. The value of land should not
exceed 10% of the project cost. The cost of land
computed in the project cost can be reckoned
towards the margin money required to be met by
the enterprise.
Subsidy: 33% of the project cost max 60 lac for
Fruit and Vegetable Waste Compost Unit , 25% of
the project cost max 40 lac for Biofertilisers/
Biopesticide Unit. (ecir- 417 dt 11.08.2011)
ROI: As applicable to Ag. advances
Security: The security will be as per norms
prescribed by RBI from time to time.
Repayment: 10 years with a grace period of 2
years for Biofertilisers Unit & Fruit and Vegetable
Waste Compost Unit.
 Quick Success Series: Agriculture Advances
31st October , 2016
FINANCING OF ORGANIC FARMING
Objectives: To prevent degradation of precious
arable land and pollution of water from the abuse
of chemical fertilizers/pesticides/insecticides and
to capture the branded domestic retail and export
market opportunities.
Eligibility: All individual farmers i.e., our existing
borrowers and creditworthy new borrowers, JLGs
engaged in crop production activity. The
prospective borrower(s) shall own individually or
collectively min. 4 acres of irrigated land / 10
acres of dry (rain fed) land.
Classification: Direct Agriculture
Quantum of Loan: (ATL & KCC) as per bank’s
prescribed norms. The conversion period from
conventional to organic farming is about 3 years.
Gross DSCR of 1.75 to be maintained
Margin (for ATL): 20% of the project cost – own
contribution or subsidy received.
Gestation period: 3 years
Repayment: Overall repayment period will be up
to 9 years including 3 year gestation period.
Subsidy: From National Horticulture Mission
(NHM): @ Rs. 10,000/- per hectare subject to a
limit of 4 hectares per beneficiary.
Rate of Interest: Card Rate.
Security: Primary: Hypothecation of assets
created & crops to be raised.
Collateral: Mortgage of land OR any other readily
realizable liquid/ immovable security of adequate
value for Individual Farmers. Only mutual
guarantee for JLGs (ATL & ACC Max. Rs. 50,000/-
per member. Max. 10 members / group).
BIO GAS PLANTS ( FAMILY TYPE) SCHEME
Eligibility: Individual farmers, including members
of JLG / SHGs, owning minimum of 4 animals.
Quantum of loan : Loan amount will be the cost
of Bio gas plant and installation charges less
stipulated margin. Unit costs (ranging approx from
Rs 16000 – Rs 20000 for biogas plants of 2 cu mt /
3 cu mt sizes respectively) fixed by the State level
Committee for different sizes of biogas plants for
different regions should be adopted.
Subsidy: The Ministry of New and Renewable
Energy is providing subsidy up to 50% of the cost
of biogas plants.
Margin is waived for limit up to Rs 100000/
Page
18
Security: For aggregate limit Up to Rs 100000/ -
Hypothecation of assets created out of bank
finance.
Repayment: Repayment in 5 years in Monthly/
Quarterly / Half Yearly instalments ( depending of
the source of income from agriculture/ allied
activities) Classification: Direct Agricultural.
CENTRAL SECTOR SCHEME FOR STRENGTHENING
OF AGRICULTURAL MARKETING
INFRASTRUCTURE, GRADING AND
STANDARDISTATION (e-cir-316 dt 06.07.2013)
Objective: For development of marketing
infrastructure.
i. Setting up of agricultural markets in private and
cooperative sectors.
ii. Allow direct marketing and
iii. Contract farming and have been permitted to
avail benefits of the scheme
Eligibility: individuals, Group of farmers/ growers/
consumers,Partnership/ Proprietary firms, Non-
Government Organizations (NGOs), Self Help
Groups (SHGs), Companies, Corporations,
Cooperatives, Cooperatives Marketing Federation,
Local bodies, agricultural Produce Market
Committees & Marketing Boards in eligible
States/ UTs.
Pattern of assistance: Credit linked back-ended
subsidy shall be provided on the capital cost of
general or commodity specific infrastructure for
marketing of agricultural commodities and for
strengthening and modernization of existing
agricultural markets, wholesale, rural periodic or
in tribal areas.
Maximum amount of subsidy will be restricted to
Rs.50 lakh (25% of the capital cost) for each
project. In the case of North Eastern States, hilly
and tribal areas and to entrepreneurs belonging
to SC/ ST maximum amount of subsidy will be Rs.
60 lakh (33.33% of capital cost of the project) for
each project. In respect of infrastructure projects
of state Governments, there will be no upper
ceiling on subsidy to be provided under scheme.
Project cost: Project should provide ‘direct’
service delivery to producers/ farming community
in post harvest management/ marketing of their
produce.
Size of project under scheme should be
determined on basis of economic viability and
 Quick Success Series: Agriculture Advances
31st October , 2016
commercial considerations.
Cost of land on infrastructure project will be
restricted to ten per cent of the project cost in
rural areas and to twenty per cent in Municipal
areas. Entrepreneur will not alienate land during
period of loan for any purpose other than purpose
for which loan is sanctioned.
Mobile infrastructure for post-harvest operations
(excluding transport equipment) will be eligible
for assistance under scheme.
ROI: As applicable to Ag. advances
Security: The security will be as per norms
prescribed by RBI from time to time.
PODUCER COMPANIES
Combination of 10 or more individuals and
producer institutions (co-operative societies) can
get incorporated as ‘Producer Company’ under
the Act.
Maximum members can exceed 50. No cap in
membership.
Objectives- Production, harvesting, procurement,
grading, pooling, handling, marketing, selling,
export/import of primary produce etc.
Financing Modality:
a) Individual members on the guarantee of
the Producer Company
b) Producer Companies: Lending Powers for
on lending to Members.
c) Aggregated Finance to Producer
Companies: for on lending to Members.
As per RBI guidelines, Loans granted to Producer
Companies up to an aggregate amount of Rs 1
crore for the following activities is treated as
DIRECT FINANCE to Agriculture.
# Short Term Loans for raising crops i.e. crop loans
# Produce Marketing Loan up to Rs 10 lacs
# Working Capital and Term Loans for financing
production and Investment requirements for
Agriculture and Allied activities.
# Loans granted for pre harvest and post harvest
activities such as weeding, harvesting, grading,
sorting and transporting.
One third of loans in excess of Rs one crore in
aggregate per borrower for Agriculture & allied
activities is also classified as Direct Finance to
Agriculture. Remaining two third of loans in
excess of Rs one crore in aggregate per borrower
Page
19
for Agriculture and allied activities will be treated
as Indirect Finance to Agriculture.
GSS-DAIRY ENTREPRENEURSHIP DEVELOPMENT
SCHEME (DEDS)
(e-Circular No.358/2014-15 dated 08.07.2014)
The salient features of the scheme are as under:
a) Establishment of Small Diary units of 10
animals (buffalo and crossbred
cows/indigenous) for milk production.
(Unit Cost – Rs.6 lacs for 10 animals –
minimum unit size is 2 animals with an
upper limit of 10 animals)
b) Rearing of Heifer Calves-cross bred,
indigenous descript milch breeds of cattle
and of graded buffaloes- up to 20 calves.
(Unit cost Rs.5.30 lacs for 20 calf unit-
with an upper limit of 20 calves)
c) Purchasing of milking machines /
milkotesters / bulk milk cooling units (up
to 5000 liters capacity) (Unit cost Rs.20
lakh)
d) Purchase of Dairy Processing Equipment
for manufacture of indigenous milk
products.(Unit cost Rs.Rs.13.20 lacs)
e) Establishment of Diary product
transportation facilities and cold chain.
(Unit cost 26.50 lacs)
f) Cold storage facilities for milk and milk
products. (Unit cost Rs.33 lacs)
g) Establishment of private veterinary clinics.
(Unit cost Rs.2.60 lacs for mobile clinic &
Rs.2 lacs for stationary clinic)
h) Dairy marketing outlet/ Dairy parlor. (Unit
cost Rs.1 lac)
i) Vermi compost with milch animal unit. (to
be considered with milch animals/ small
dairy farm not separately) (Unit cost
Rs.22,000/-)
j) Back ended capital subsidy of 25% of the
project cost (33.33% for SC/ST farmers)
will be provided under the DEDS scheme.
 Quick Success Series: Agriculture Advances
31st October , 2016
k) Proposals under the scheme shall be
considered on first come-first-serve basis
subject to availability of funds from
Government of India.
The other instructions/guidelines are as follows:
i. Entrepreneur contribution (Margin) of 10% shall
not be required for loans less than Rs.1 lakh or
any other amount as specified in the RBI
guidelines, as revised from time to time.
ii. All the financing banks shall be required to
forward their subsidy claims through their
controlling office to the concerned NABARD
Regional Offices within two months of
disbursement of first installment of the bank
loans.
iii. Financing bank shall adjust the subsidy amount
in Subsidy Reserve Fund Account
of the beneficiary within 7 days of the receipt
from NABARD. In case, it is not adjusted, the bank
shall be liable to compensate the beneficiary to
the extent of the additional interest charged.
iv. Utilization certificate should be submitted by
the financing banks to concerned NABARD
Regional Office within 15 days of the receipt of
subsidy.
SBI Asset Backed Agri Loan
(Premium Kisan Gold Card)
Purpose : To provide hassle free finance for
traditional and modern farm and farm related
activities including emerging and High Tech
activities in meeting the short term
production credit and investment credit.
Quantum of loan : Loan amount will be fixed
on the basis of 5 times of annual farm income
/non farm income from all verifiable sources
or 50% of the value of land/building
mortgaged whichever is less subject to:
Minimum loan amount: Rs.3.00 lakhs and
above
Maximum loan amount: Rs.200.00 lakhs
Margin : 15-25%
Page
20
Interest rate : Base Rate +2 % p.a
Security : The loan will be collaterally secured
by way of mortgage of
SARFAESI compliant immovable property
(Land/Building) pertaining to the
Individual/partners/proprietor/their near
relatives only and for value not less than
200% of the loan amount for other Circles and
225% for Bengal Circle.
Processing Charges : 1% of the Loan Limits
Repayment : Overdraft (OD) limits
sanctioned for a period of 12 months to 72
months with equated reduction in limit. The
drawing power shall be reduced monthly so
as to have the overdraft fully liquidated at the
end of the period.
Inspection : Inspection is stipulated at half
yearly intervals
Penal Interest : 1% p.a over and above the rate of
interest on the balance outstanding
if overdue more than 30 days.
New High Tech Product: Poly
House/Net House/Green House
Cultivation
Target group : Entities/ farmers interested in
carrying out specialized cultivation in Poly
House/ Net House/ Green House
Eligibility :
a) Entities having land ownership in their
name or leasehold basis for a remaining
lease period of 15 years.
b) Individual/ group of progressive farmers/
Producer companies/ JLGs/SHGs engaged
in agriculture
c) Having assured irrigation facilities
d) They should be reasonably skilled to
undertake this activity or have skilled
manpower.
 Quick Success Series: Agriculture Advances
31st October , 2016
e) The location of the farm should be
conducive for marketing of the produce.
f) They should have some tie-up arrangement
for marketing of the produce.
Loan Facility : Agricultural Term Loan &
Agri Cash Credit
Margin : • ATL: 15% of the project cost.
• ACC: As per the scale of finance (for progressive
farmers) for the crops to be grown
Purpose : Term loan to meet the cost of
construction of house and purchase of
machinery/equipment needed. Project
cost will be based on the rates prescribed by NHB/
other approved agency from time to time
. Scheme (MNAIS) from ensuing Kharif 2016 season
• ACC/KCC to meet the cultivation of
vegetables/flowers..
Rate of Interest: Crop loans/ Production loans
up to Rs.3.00 lacs will be charged at 7% p.a. (fixed)
as per GOI guidelines where subvention is
available else 2% above base rate.
• For agri term loans, 2% above base rate.
Security : a. For loans upto Rs.1.00,000/-
i. Primary: Hypothecation of crops and poly
house including all machinery/ equipments &
other assets created out of Banks finance.
ii. Collateral: Nil
b. For loans above Rs.1,00,000/-
i. Primary: Hypothecation of crops and poly
house including all machinery/ equipments &
other assets created out of Banks finance.
ii. Collateral: Collateral Security Equitable
Mortgage of SARFAESI COMPLIANT
Immovable property for value not less than
100% of the loan amount by way of first
charge pertaining to the individual/
proprietor/partners/ their near relatives etc.
In addition, the land on which the activity will
be undertaken have to mortgaged. This will
be eligible only in cases where the criteria for
getting backended subsidy are fully complied
with.
Credit Scoring Model : The unit should score
minimum 50 marks under Credit Scoring
Model
Page
21
Repayment : 72 Months:
The loan would be repayable in a maximum
period of 72 months, inclusive of start-up
period of 3-12 months
(for detail refer e-circular Sl. No. : 1517/2015
– 16 dated March 10,2016)
PRADHAN MANTRI FASAL BIMA YOJANA
The Government of India has launched ‘Pradhan
Mantri Fasal Bima Yojna’ (PMFBY) on the18th
February 2016, to enhance crop insurance
coverage
The revised scheme replaced the existing schemes
of National Agricultural Insurance Scheme (NAIS)
& Modified National Agricultural Insurance
Coverage of Farmers:
i. The scheme is applicable to all farmers,
including sharecroppers and tenant farmers,
growing the notified crops in the notified areas.
ii. Compulsory for loanee farmers and optional /
voluntary for non-loanee farmers.
Sum Insured / Coverage Limit:
i. The Scheme is implemented on an ‘Area
Approach Basis’ in the selected defined Areas
called Insurance Unit. State Government / UT will
notify Crops and Defined Areas covered during
the season.
ii. Sum Insured per hectare for both loanee and
non-loanee farmers will be same and equal to the
Scale of Finance (SOF) as decided by the District
Level Technical Committee. Sum Insured for
individual farmer is equal to the Scale of Finance
per hectare multiplied by area of the notified crop
proposed by the farmer for insurance. ‘Area
under cultivation’ shall always be expressed in
‘hectare’.
iii. Sum insured for irrigated and un - irrigated
areas may be separate.
 Quick Success Series: Agriculture Advances
31st October , 2016

Coverage of Crops & Risks

i. Food crops (Cereals, Millets and Pulses),
Oilseeds & Annual Commercial / Annual
Horticultural crops are covered under the scheme.
ii. Stages of the crop and risks leading to crop loss
covered are:
a) Prevented Sowing / Planting Risk (due to
deficit rainfall or adverse seasonal conditions)
b) Standing Crop (Comprehensive risk
insurance to cover yield losses due to non-
preventable risk)
c) Post-Harvest Losses – {Coverage available
only up to a maximum period of 2 weeks from
harvesting of the crop. (Individual farm basis)}
d) Localized Calamities (individual farm basis)

Banks are eligible for commission / service

charges @4% of the premium collected from
farmers from Insurance Company

AGRI BUSINESS:USAGE OF CREDIT

INFORMATION REPORTS (CIRs)

a) For secured Loans up to a limit of Rs.3.00 lac :

Report from one Credit Bureau
b) For secured Loans for limit greater than Rs.3.00
lac : Report from two Credit Bureaus
c) For unsecured Loans up to a limit of Rs.1.00 lac
: Report from one Credit Bureau
d) For unsecured Loans for limit greater than
Rs.1.00 lac : Report from two Credit Bureaus

Undernoted order for pulling CIRs from CICs:

i. CRIF HIGH mark Credit Information Services Pvt
Ltd.
ii. Credit Information Bureau Limited (CIBIL)
iii. Equifax Credit Information Company of India
iv. Experian Credit Information Company of India

Where one report is required, it will be pulled

from CRIF HIGH mark Credit Information Services
Pvt Ltd and if two reports are required then one
report from CRIF HIGH mark Credit Information
Services Pvt Ltd and second from Credit
Information Bureau Limited (CIBIL)*** will be
obtained.

*** CIBIL is now known as TransUnion CIBIL

Limited.

Page
22
 Quick Success Series: NPA Management
QUICK SUCCESS SERIES, an initiative of SBLC
October 31, 2016 Deoghar to facilitate the preparation of
promotion seeking personnel of our Bank,
appears to have succeeded in its objective
to a large extent, as the readers are still
approaching us for its revision/updation
despite availability of plenty of other study
Quick Success materials.

Series We would not have been able to sustain this

unique effort of ours, without the active
support and continuous encouragement of
our DGM cum Circle Development officer
Sri Bijayananda Padhi. We are deeply
indebted to him for his co-operation and
guidance.
Sri Rakesh Roshan, Chief Manager
(Training) and Sri Kumar Priyank, Chief
Manager (Training) Sri Sanjay Kumar
Sharma,Manager(Training) Sri Jitendra
Kumar Arun, Manager(Training) at this SBLC
have owned up this project and have taken
pains to keep it relevant to the users by
updating & improv-ing it at half yearly
interval.
NPA MANAGEMENT
Though every care has been taken while
updating the contents, we request our
readers to point out any lapses at the
earliest. Needless to mention this book is
not a substitute of circular instructions
issued by the Bank from time to time. For
detailed guidelines please refer to Bank’s
latest circulars. Soft copy of this edition is
available on our ftp://10.151.51.33 in QSS
folder and on SBI TIMES>PATNA
CIRCLE>SBLC Deoghar site.
Team SBLC Deoghar is humbled by the
response and recognition, it is receiving
from the readers within and beyond the
circle. We wish the readers grand
success in their endeavours.

Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895
Fax - 06432-231810
e-mail: agmstc.deoghar@sbi.co.in
Updated by Sanjay Kumar Sharma st
Manager (Training), SBLC Deoghar Updated upto 31
Mobile- 9934435855
Email- sanjay.kr.sharma@sbi.co.in October 2016
1
 Quick Success Series: NPA Management
October 31, 2016
In line with the international practices and as per
the recommendations made by the Committee on
the Financial System (Chairman Shri M.
Narasimham), the Reserve Bank of India has
introduced, in a phased manner, prudential norms
for income recognition, asset classification and
provisioning for the advances portfolio of the
banks.
Non Performing Assets
A non performing asset (NPA) is a loan or an
advance where,
 Interest and/ or installment of principal
remain overdue for a period of more than 90
days in respect of a term loan. (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)
 The account remains ‘out of order’ in respect
of an Overdraft/Cash Credit (OD/CC). An
account should be treated as 'out of order' if
the outstanding balance remains continuously
in excess of the sanctioned limit/drawing
power. In cases where the outstanding
balance in the principal operating account is
less than the sanctioned limit/drawing power,
but there are no credits continuously for 90
days as on the date of Balance Sheet or
credits are not enough to cover the interest
debited during the same period,
 The bill remains overdue for a period of more
than 90 days in the case of bills purchased and
discounted,
 The installment of principal or interest
thereon remains overdue for two crop
seasons for short duration crops.
 The installment of principal or interest
thereon remains overdue for one crop season
for long duration crops. “long duration” crops
would be crops with crop season longer than
one year.
@ Advances against term deposits, NSCs eligible
for surrender, IVPs, KVPs and life policies need not
be treated as NPAs, provided adequate margin is
available in the accounts. Advances against gold
ornaments, government securities and all other
securities are not covered by this exemption.
Categories of NPAs
Substandard Assets: A substandard asset would
be one, which has remained NPA for a period less
than or equal to 12 months.
2
Doubtful Assets : An asset would be classified as
doubtful if it has remained in the substandard
category for a period of 12 months.
Loss Assets: A loss asset is one where loss has
been identified by the bank or internal or external
auditors or the RBI inspection but the amount has
not been written off wholly.
@ The outstanding in the account based on
drawing power calculated from stock statements
older than three months would be deemed as
irregular. A working capital borrowal account will
become NPA if such irregular drawings are
permitted in the account for a continuous period
of 90 days even though the unit may be working
or the borrower's financial position is satisfactory.
@ An account where the regular/ ad hoc credit
limits have not been reviewed/ renewed within
180 days from the due date/ date of ad hoc
sanction will be treated as NPA.
@ All the facilities granted by a bank to a
borrower and investment in all the securities
issued by the borrower will have to be treated as
NPA/NPI and not the particular facility/
investment or part thereof which has become
irregular.
@ The bills discounted under LC favouring a
borrower may not be classified as a Non-
performing advance (NPA), when any other
facility granted to the borrower is classified as
NPA.
NEW RG AND SMA STRUCTURE
RISK GRADE DESCRIPTION
RG 00 Account is regular or Principal
(SMA-0) /interest payment not overdue for
more than 30 days but account
showing signs of incipient stress
RG 01 Principal or interest payment
(SMA-1) overdue between 31-60 days
RG 02 Principal or interest payment
(SMA-2) overdue between 61-90 days
RG 03 Standard Asset but temporarily
Irregular up to 30 days but no
signs of incipient stress
RG 04 Sub-Standard Asset
RG 05 Doubtful Asset –Less than 1 Year
RG 06 Doubtful Asset = > 1 Year but < 3
Years
RG 07 Doubtful Asset => 3 Years
RG 08 Loss Asset
RG 09 Regular Accounts which do not
 Quick Success Series: NPA Management
October 31, 2016
show signs of incipient stress.
Accounts where there is erosion in the value of
security/frauds committed by borrowers
i. Erosion in the value of security can be reckoned
as significant when the realizable value of the
security is less than 50 per cent of the value
assessed by the bank, Such NPAs may be
straightaway classified under doubtful category
and provisioning should be made as applicable to
doubtful assets.
ii. If the realizable value of the security is less
than 10 per cent of the outstanding in the
borrowal accounts, the existence of security
should be ignored and the asset should be
straightaway classified as loss asset.
Government guaranteed advances
1) The credit facilities backed by guarantee of the
Central Government though overdue may be
treated as NPA only when the Government
repudiates its guarantee when invoked.
2) State Government guaranteed advances and
investments in State Government guaranteed
securities would attract asset classification and
provisioning norms if interest and/or principal or
any other amount due to the bank remains
overdue for more than 90 days.
PERIODICITY FOR SUBMISSION OF IRREGULARITY
REPORT FOR NON PERFORMING ACCOUNTS:
Sr. Particulars of Irregularity Periodicity
No
01 Immediate reporting To be
(i.e. on loan account submitted
being classified as NPA). within 10th
day of
Subsequent
month.
02 Subsequent reporting – Quarterly
Where the variation in (i.e. January,
irregularity/outstandings March, April –
is only on account of June etc.)
accrued but unapplied
interest (quantum of
unapplied interest to be
shown separately).
03 Subsequent reporting – Quarterly
Where there is variation (i.e. January,
in irregularity March, April –
3
/outstanding due to June etc.)
reason other than
clubbing of accrued
unapplied interest.
PROVISIONING NORMS
1) Loss assets
Loss assets should be written off. If loss assets are
permitted to remain in the books for any reason,
100 percent of the outstanding should be
provided for.
2) Doubtful assets
 100 percent of the extent to which the
advance is not covered by the realisable value
of the security.
 In regard to the secured portion, provision
may be made on the following basis, at the
rates ranging from 25 percent to 100 percent
of the secured portion depending upon the
period for which the asset has remained
doubtful:
Up to one year : 25%
One to three years : 40%
More than three years : 100%
 In cases of NPAs with balance of Rs. 5 crore
and above stock audit at annual intervals by
external agencies would be mandatory.
Collaterals such as immovable properties
charged in favour of the bank should be got
valued once in three years.
3) Substandard assets
 A general provision of 15 percent on total
outstanding.
 The ‘unsecured exposures’ which are
identified as ‘substandard’ would attract
additional provision of 10 per cent, i.e., a
total of 25 per cent on the outstanding
balance.
4) Standard assets
(a) Direct advances to agricultural and Small and
Micro Enterprises (SME) sectors - 0.25%.
(b) All other loans and advances - 0.40%
Medium Enterpises will attract 0.40%
(C) Advances to Commercial Real Estate (CRE)
Sector - 1.0%
(d) advances to Commercial Real Estate –
Residential Housing Sector (CRE - RH) at 0.75 per
cent.
(for details please refer Reserve Bank Cir
RBI/2015-16/101
 Quick Success Series: NPA Management
October 31, 2016
DBR.No.BP.BC.2/21.04.048/2015-16 July 1, 2015
Master Circular - Prudential norms on Income
Recognition, Asset Classification and Provisioning
pertaining to Advances)
Wilful Defaulters
A "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.
Diversion and siphoning of funds
The terms “diversion of funds” and “siphoning of
funds” should construe to mean the following:-
Diversion of funds, would be construed to include
any one of the undernoted occurrences:
(a) utilisation of short-term working capital funds
for long-term purposes not in conformity with the
terms of sanction;
(b) deploying borrowed funds for purposes /
activities or creation of assets other than those
for which the loan was sanctioned;
(c) transferring borrowed funds to the subsidiaries
/ Group companies or other corporates by
whatever modalities;
(d) routing of funds through any bank other than
the lender bank or members of consortium
without prior permission of the lender;
(e) investment in other companies by way of
acquiring equities / debt instruments without
approval of lenders;
(f) shortfall in deployment of funds vis-à-vis the
amounts disbursed / drawn and the difference
not being accounted for.
Siphoning of funds, should be construed to occur
if any funds borrowed from banks / FIs are utilised
4
for purposes un-related to the operations of the
borrower, to the detriment of the financial health
of the entity or of the lender. The decision as to
whether a particular instance amounts to
siphoning of funds would have to be a judgement
of the lenders based on objective facts and
circumstances of the case.
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.
The penal measures would normally be attracted
by all the borrowers identified as wilful defaulters
or the promoters involved in diversion / siphoning
of funds, keeping in view the present limit of Rs.
25 lakh fixed by the Central Vigilance Commission
for reporting of cases of wilful default by the
banks/FIs to RBI, any wilful defaulter with an
outstanding balance of Rs. 25 lakh or more, would
attract the penal measures stipulated below. This
limit of Rs. 25 lakh may also be applied for the
purpose of taking cognisance of the instances of
'siphoning' / 'diversion' of funds.
Penal measures
In order to prevent the 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.
The following measures should be initiated by the
banks and FIs against the wilful defaulters
identified as per the definition indicated above:
a) No additional facilities should be granted by
any bank / FI to the listed wilful defaulters. In
addition, the entrepreneurs / promoters of
companies where banks / FIs have identified
siphoning / diversion of funds, misrepresentation,
falsification of accounts and fraudulent
transactions should be debarred from institutional
finance from the scheduled commercial banks,
Development Financial Institutions, Government
owned NBFCs, investment institutions etc. for
floating new ventures for a period of 5 years from
 Quick Success Series: NPA Management
October 31, 2016
the date the name of the wilful defaulter is
published in the list of wilful defaulters by the RBI.
b) The legal process, wherever warranted, against
the borrowers / guarantors and foreclosure of
recovery of dues should be initiated expeditiously.
The lenders may initiate criminal proceedings
against wilful defaulters, wherever necessary.
c) Wherever possible, the banks and FIs should
adopt a proactive approach for a change of
management of the wilfully defaulting borrower
unit.
d) A covenant in the loan agreements with the
companies in which the banks/FIs have significant
stake, should be incorporated by the banks/FIs to
the effect that the borrowing company should not
induct on its board a person whose name appears
in the list of Wilful Defaulters and that in case,
such a person is found to be on its board, it would
take expeditious and effective steps for removal
of the person from its board. It would be
imperative on the part of the banks and FIs to put
in place a transparent mechanism for the entire
process so that the penal provisions are not
misused and the scope of such discretionary
powers are kept to the barest minimum. It should
also be ensured that a solitary or isolated instance
is not made the basis for imposing the penal
action.
SARFAESI Act (2002)
(Securitisation And Reconstruction of Financial
Assets and Enforcement of Security Interest Act)
1) Applicable to NPA only
2) A secured creditor can take possession of the
secured assets and sell the same without recourse
to the courts.
3) If the sale proceeds are not adequate, the bank
can file a suit with DRT for recovery of the
balance.
4) In case of joint loans by banks, creditors
covering at least 75% of the advances should
agree to serve the notice through one of the
banks.
5) The financial assets can be sold to a
securitization company.
6) The authorized officer empowered to issue
notices to the borrowers is SMGS IV or above.
SARFAESI Act are not applicable
a) Lien on any goods.
b) A pledge of movables.
5
c) Any conditional sale, hire-purchase or lease or
any other contract in which no security interest
has been created.
d) Any security interest for securing repayment of
any financial asset up to Rs. 1 lac.
e) Any security interest created on agricultural
land.
f) Any case in which the amount due is less than
20% of the principal amount and interest thereon.
Time frame for different activities under
SARFAESI Act :
1. Time to be allowed to the borrower /
guarantor in demand notice to repay the dues - 60
days from the date of notice.
2. Time within which the borrower can
submit representation / objection to the above
notice - 60 days from the date of notice.
3. Time within which the Bank has to convey
its decision against the above representation /
objection - 15 days from the date of receipt of the
representation / objection .
4. Minimum Time Bank has to permit for
the borrower to repay the debt, while issuing the
sale Notice - 30 days from the date of notice.
5. Time within which Borrower can file a
petition in the DRT against Bank for having taken
possession of property - Within 45 days from the
date of action of the Bank.
6. Maximum time within which DRT has to
pass the order for the above - Within 4 months
from the date of application in the DRT.
7. Time within which the Bank / Borrower
can file appeal with the Appellate Tribunal against
the order of the DRT - Within 30 days from the
date of receipt of the order of the DRT.
LOK ADALAT
1) Set up under the Legal Services Authority Act,
1987
2) Dues up to Rs. 20 lac can be settled.
3) The Bank can insist on down payment of 25% at
the time of compromise and grant time between
6 months to 12 months to pay the balances dues.
4) No concession on the principal amount. Future
interest may be 6% simple on AGL loans and 10%-
18% on commercial advances from the date of
decree till the date of realization.
DEBT RECOVERY TRIBUNAL (DRT)
 Quick Success Series: NPA Management
October 31, 2016
1) Established on the recommendation of
Narasimham Committee.
2) The bank has to file cases for recovery of debts
of Rs. 10 lac and above.
3) The tribunal has to dispose of the cases within
6 months.
4) An appeal to the Appellate Tribunal has to be
filed within 45 days. 75% of the debt due
should be deposited with the Appellate
Tribunal.
ASSET RECONSTRUCTION COMPANIES (ARC)
1) As per recommendation of Narasimham
Committee
2) It will be a Public Financial Institution with a
minimum capital of Rs. 2 crore.
3) A bank can approach an ARC to take over the
doubtful assets. ARC will issue 7 to 10 year
bonds to the bank.
REVISED COMPROMISE SETTLEMENT POLICY
Compromise settlement refers to a negotiated
settlement where a borrower offers to pay and
the Bank agrees to accept in full and final
settlement of its dues an amount less than the
total amount due to the Bank under the relative
loan account. Thus, the settlement invariably
involves certain sacrifice by the Bank by way of
write off and/or waiver of a portion of its dues.
Recovery of advances through compromise
settlement is accepted as an effective method of
recovery by the Bank in cases where it is
appropriate to adopt this option.
It is not possible, at the same time, to lay down
precise guidelines which can be followed
uniformly in all compromise cases, as each offer is
unique in the context of the circumstances
necessitating its consideration as a recovery
option. However, certain basic principles and
guidelines to be kept in view by the branches and
their controllers, while processing compromise
proposals, are detailed in the subsequent
paragraphs.
1. Basic principles for Compromise Settlement
proposals
i. Bank’s Approach: The compromise will be a
negotiated settlement under which the Bank will
endeavour to recover its dues to the maximum
extent possible with minimum sacrifice and this
process will be initiated after the Bank has
6
exercised its right to set off or lien against any
deposits of the borrower/guarantor lying with the
Bank.
ii. Realisable Value of Securities, and NPV of
compromise amount & Securities: The realisable
value of security charged to the Bank as also the
Bank’s ability to dispose the security will be the
basic factors which would decide the compromise
amount. While assessing the realisable value of
security, proper weightage would have to be
given to its location, condition and marketability.
For this purpose, services of approved valuers
may be engaged and it should be ensured that the
valuation reports are not more than six months
old. In case of loans above Rs. 1 cr , two valuation
reports from Bank’s approved valuers have to be
obtained and the higher value has to be taken
into account for deciding the compromise
amount. The Net Present Value (NPV) of
settlement amount should generally not be less
than NPV of the realizable value of the available
securities. In case of lower value, the same has to
be justified with valid and sufficient reasons.
For calculation of NPV, the rate of discount should
be taken as the prevailing Base Rate with annual
rests and the maximum estimated time to realize
the securities may be taken as 5 years from the
date of notice under section 13(2) in case of
SARFAESI action and 7 years from the date of
filing suits in case of DRT / Court cases.
iii. Influence of Group Companies: In case the
borrower has other group companies, influence of
these companies or the parent company may be
used for a better settlement.
iv. Initial Deposit : Normally along with the
compromise offer letter, an initial deposit of
at least 5% of the offer amount may be taken
from the borrower under no lien account as an
evidence of the borrower's bonafide intention to
pursue the compromise settlement with the Bank.
v. Terms of Payment : Time Period for Payment
& Charging of Interest on Compromise
Settlement amount : It will be the endeavour of
the Bank to get the entire compromise amount
paid up in lump sum. In cases where the amount
is agreed to be recovered in instalments, normally
at least 15% of the approved settlement amount
(inclusive of initial deposit) would be payable
upfront with the balance instalments spread over
a maximum period of 12 months. To incentivise
early payment, no interest is to be charged on the
 Quick Success Series: NPA Management
October 31, 2016
compromise amount paid within three months
from the date of approval of compromise
conveyed to the borrower even in cases of
compromise settlement on installment basis. If
the entire compromise amount is not paid within
three months, interest at minimum Base Rate for
compromise amount up to Rs.50 crs and below,
and interest at minimum Base Rate+2% for
compromise amount of above Rs.50crs on the
balance amount paid after three months shall be
charged from 15th day from the date of letter
conveying approval of the compromise to the
borrower. Repayments exceeding 12 months
should not be considered unless the repayment
source is assured to the satisfaction of the Bank.
Efforts should be made in such cases to tie up the
payment directly to the Bank. The sources from
which the borrowers and/or guarantors will raise
funds to pay the compromise amount will be
identified and recorded, particularly in those
cases where the payment is proposed to be made
in instalments. In case, the compromise amount is
not paid as per terms of sanction, the Bank will be
entitled to treat the compromise settlement as
cancelled.
vi. Cases of wilful defaulters: In the matter of
settling compromise amount, distinction will need
to be made between wilful defaulters and the
borrowers defaulting for reasons beyond their
control. In case of the former, a tough stand has
to be taken and the proposal should be put up
after obtaining in-principle approval of the GM
(NW/MCG/CAG/SAMG) based on a review of such
cases. Further, in case of wilful defaulters, initial
deposit under no lien account will be 10% of offer
amount and on approval of the compromise,
upfront payment including initial deposit will be
25% of the approved compromise amount. If the
compromise amount is payable in instalments, no
interest is to be charged on the compromise
amount paid within three months from the date
of approval of compromise conveyed to the
borrower and interest is to be charged on balance
amount paid after 3 months from 15th day of the
date of letter conveying approval of compromise
to the borrower at a minimum of Base Rate + 2%.
vii. Default Clause: Compromise settlement will
be arrived at with borrowers / guarantors subject
to the condition that in the event of any failure to
honour any of the terms of the compromise
settlement, the Bank will be entitled to exercise
7
against the borrowers / guarantors all the rights
and remedies available prior to the compromise
settlement. This will include collection from the
borrowers/guarantors of the entire amount due
prior to the compromise settlement, together
with interest thereon at the applicable rates.
Suitable clauses in this regard are to be included
in the letter conveying approval for compromise.
viii. Consent Decree: An application for obtaining
Consent Decree from the appropriate Court/DRT
should be filed immediately on sanction of the
compromise proposal incorporating therein a
clause that in the event, the borrowers /
guarantors fail to adhere to the terms of
compromise, the compromise settlement shall
stand automatically cancelled and the Bank will be
entitled to recover the entire outstanding amount
together with interest at the contractual rate. A
consent decree/recovery certificate should be
obtained from the competent court/DRT
recording the settlement. In case the borrowers /
guarantors do not adhere to the settlement
terms, the Bank can proceed with the execution
of the decree/recovery certificate.
ix. Position of other recovery action: The
sanctioning authority must satisfy itself that all
possible steps to recover the dues have been
explored and that compromise settlement is in
the larger interest of the Bank.
x. Opportunity cost analysis : While arriving at a
negotiated settlement, the advantage available to
the Bank from prompt recycling of funds should
be considered in comparison to the likely recovery
by following legal or other protracted course of
action i.e. opportunity cost analysis to be made.
xi. Uncharged assets of the borrowers /
guarantors: Before entering into any compromise
settlement, details of uncharged assets of the
borrowers and guarantors should be collected by
either engaging the services of investigative
agencies or otherwise.
xii. Compromise settlement proposals from
Guarantors: Compromise Settlement proposals
from guarantors should be treated on par with
proposals from borrowers.
Guidelines on Publication of Photographs of
Defaulter Borrowers/Guarantors
Background
 Quick Success Series: NPA Management
October 31, 2016
i) The publication of details including photographs
of defaulters in newspapers is useful in cautioning
the public in general and the fellow banks in
particular in respect of dealings with such persons
or their assets. Such publication is of great help in
dealing with the defaulters who avoid/evade the
notices of the Bank or not responding to the
correspondence from the Bank seeking the
repayments of their dues. It is also helpful in
gathering valuable feedback about the networth
or other hidden financial dealings of the
defaulters.
ii) Publication of details as above is also helpful in
stopping further lending to such defaulters and
also to prevent the fraudulent/dishonest
alienation of securities and assets by the
defaulters. Dissemination of information of the
cases of frauds, misfeasance and wilful defaults is
also in the interest of public at large and to
maintain the proper financial health of banks and
financial institutions who are the custodians of
public money.
iii) In view of the past experience in the matter, it
has been decided to put in place the following
Guidelines in the matter of publication of
photographs of defaulter borrowers/guarantors.
Guidelines:
1. Publication of the names and addresses of the
defaulter Borrowers/Guarantors with their
photographs shall not be resorted to as a matter
of routine. Utmost care is to be exercised in this
matter.
2. The Branches/CPCs may resort to publication of
photographs of defaulter borrowers/guarantors in
cases where the accounts have been classified as
Non-Performing Assets as per RBI guidelines and
the account falls in any of the following
categories:
i. Loan Accounts where the borrower or guarantor
has committed any acts or omissions which
tantamount to “wilful default”. The expression
“willful default” would cover the following: -
Default in an account where the borrower/
guarantor fails to repay the dues despite having
the capacity to do so;
b. Default in an account where the
borrower/guarantor has diverted or siphoned off
the proceeds of loan/ credit facility availed from
the Bank for any purpose other than the purpose
8
for which such loan/ facility is sanctioned (i.e.
other than a legitimate business purpose);
c. Default in an account where the borrower/
guarantor who has wrongfully disposed of any of
the assets/property charged to the Bank or other
properties so as to delay or hamper the recovery
of dues by the Bank.
ii. Loan Accounts where the borrower or
guarantor has indulged in any act or omission
which in the opinion of the Bank amounts to
misfeasance, fraud, nonfeasance or malfeasance,
adversely affecting the interest of the Bank;
iii. Loan Accounts where the borrower/guarantor
is not traceable/absconding and/or the demand
notice/letter sent by the Bank has been returned
undelivered/ refused.
3. In case of loans under any segment where
SARFAESI Act is not applicable, the Branches
/CPCs may resort to publication of photographs of
defaulter Borrowers/Guarantors, if the account
satisfies any of the conditions stipulated in
paragraph 2(i) to (iii) above.
4. In the case of Loan Accounts with outstanding
below Rs.25 lacs, publication of photographs of
the defaulter Borrowers/Guarantors shall not be
resorted to.
5. In respect of educational loans, under no
circumstances, the photographs of students will
be published.
6. In all cases, an advance notice of not less than
15 days shall be issued without fail to the
defaulter borrowers/guarantors, advising them of
the Bank’s intent to publish their names and
addresses with photographs in the newspapers,
before publishing the same in the newspapers.
The advance notice must briefly set out the
allegations against the borrower/guarantor.
7. In case any objection is raised by the
borrower/guarantor to such notice issued by the
Bank, the same shall be considered carefully on
merit and a suitable reply should be given before
proceeding further in the matter.
8. The publication of the names and addresses of
the defaulter borrowers/guarantors with their
photographs shall be approved in each case by
the Chief General Manager of the concerned
Circle/CAG/MCG/SAMG on a case to case basis
after prior vetting of each case by the Law
Department at the Module/LHO/Corporate
Centre, as the case may be.
 Quick Success Series: NPA Management
October 31, 2016
Agent. Such notice
should invariably
mention the number
STANDARD OPERATING PROCEDURE (SOP) ON and date of the earlier
SEIZURE AND SALE OF VEHICLES notices sent and also
BEFORE REPOSESSION the name of the
First Notice On the first non-receipt Resolution Agent
of installment on the
due date notice to the Fifth Notice Immediately after the
customer giving 7 days’ seizure of the vehicle a
time reckoned from the notice need to be sent
date of service of to the borrower to pay
notice to clear the due up the dues to the Bank
amount along with costs of
seizure and storage of
Second On the Second non- the vehicle.
Notice receipt of installment After 5th notice
on the due date similar Valuation and Fixing of
notice to be issued to Reserve Price by ZCC to
the borrower giving be done.
seven days’ notice
drawing attention of Sixth Notice Before affecting the
the borrower to the sale a notice of
terms of the agreement minimum 7 days to be
entitling the lender to given to the borrower.
recall the entire loan
All six notices mentioned above should be sent in
Third Notice On non-receipt of the duplicate, one copy by courier/ ordinary post and
installments after the 7 the second copy by Registered Post.
day period stipulated in Comparative chart of two approaches for seizure
2nd notice, another of vehicle
notice should be issued Sr. Paramet Seizure under Seizure under
intimating the No er Loan SARFAESI
borrower that the loan Agreement
is recalled and entire
amount with interest 01 Cause of After dishonour After account
becomes payable Action of 2nd cheque becomes
within 7 days. (PDC) or default NPA
When the third notice in repayment of under extant
is also ignored the bank 2 installments. IRAC norms
has the right to
repossess the vehicle 02 Enabling Terms of Loan SARFAESI Act
Law agreement
Fourth A notice to be sent to
Notice the borrower to 03 Police If the borrower Police help
handover the vehicle Protectio objects, police can be taken
along with its original n protection is not after Chief
Registration Certificate available Metropolitan
as well as papers Magistrate
relating to insurance (CMM) or
policy to Resolution District

9
 Quick Success Series: NPA Management
October 31, 2016
magistrate
(DM) and 6th Week 2nd Registered
they are reminder with copy to
bound to guarantor for next
provide. installment also if
unpaid
04 Amount No Minimum The amount
due amount due should 7th /8th Week In detail
not be less verification/inspectio
than 20% of n of assets mortgage
principal plus to Bank as per title
interest deed and personal
contact with
05 Value of No stipulation The value of borrower at
Security for security residence/workplace.
(Vehicle) minimum value should not be (It can be combined)
of less than Rs. ACTION : If asset not
security 1 lac created FIR to be
lodged for breach of
06 Authoris Sanctioning Only officers trust /attempted
ed authority of any of Scale lV fraud.
officer Scale and
above are 61-90 9th /10th Week 3rd Registered
authorised days Reminder with copy
(SMA to Guarantor
07 Notice Minimum 7 Minimum 60 -2) (Warning of SARFAESI
period days’ notice for days of action) recalling the
starting seizure notice for entire amount due
Minimum 7 seizure with interest payable
days’ notice for Minimum 30 in 7 days.
intended sale days’ notice
for intended 11th/12th week Tele –Calling by
sale Supplementary Contact Centre
Recovery Efforts

SOP FOR NPA MANAGEMENT OF HOME LOAN Initiation of immediate action under N.I.Act (Sec.
7-30 Within one week First Irregularity 138 to 140 & 146) /Payment and Settlement Act
days of Default reminder notices on 2007 (Sec. -25)
(SMA non receipt of
-0) installment for HARD RECOVERY MEASURES FOR HOME LOAN
payment within 7 1.Action under SARFAESI Act after the account
days. becomes NPA
2.Filing of Suit at DRTs/Civil Court where action
3rd/4th Week Telephonic contact by cannot be initiated under SARFAESI Act.
Branch/RACPC a.Any security interest for securing repayment of
officials. any financial asset not exceeding one lakh rupees.
b.Any case in which the amount due is less than
31-60 SUPPLEMENTAR Tele-calling by 20% of the principal amount and interest
days Y RECOVERY Contact Centre thereon.
(SMA EFFORTS c.Accounts where mortgage has not been
-1) created.

10
 Quick Success Series: NPA Management
October 31, 2016
3. Publication of Photograph of Defaulter
Borrower(s)/Guarantor(s)
STANDARD OPERATING PROCEDURE (SOP)SALE
OF PROPERTIES THROUGH PRIVATE TREATY
UNDER SARFAESI ACT.
1. Conditions for Sale of Properties through
Private Treaty
i. As per Rule 8(8) of the Security Interest
(Enforcement) Rules 2002, sale by any method
other than by public auction or public tender shall
be on such terms as may be settled between the
parties in writing.
ii. Sale through Private Treaty has to be resorted
to when sale through e-auctions
fails. The minimum number of attempts for sale
through e-auction before going for sale through
Private Treaty is as under :
Value of Property No of Attempts
Upto Rs.1 cr 1 fixed in the case, the Authorised Officer may
Above Rs.1 crore 2 discuss the matter with the borrower. If the
iii. However, where the entire dues including up-
to-date interest will be recovered from the sale
proceeds, sale through Private Treaty can be
resorted to without resorting to minimum
number of e-auction as mentioned in (ii) above.
2.Fixation of Reserve Price:
Sale of properties may be done on the basis of
Reserve Price already fixed for sale of the assets
through the last public auction. However, if the
Reserve Price is more than six months old, fresh
sanction for Reserve Price has to be obtained
from the appropriate Committee at Zonal Office/
Local Head Office/Corporate Centre. The
following points need to be considered for
fixation of reserve price of movable/immovable
assets:
i. Reserve price is to be fixed at realisable value of
the securities and the reasons viz. defects/issues
involved in sale of the securities have to be
furnished where the difference between market
value & realisable value is more than 15%.
ii. It should be ensured that the valuation report is
less than 12 months old based on which the
Reserve Price is proposed to be approved.
iii. Valuation reports should be obtained from two
empanelled valuers in case of securities having
value of Rs. 1 crore and above and higher of the
two valuations shall be taken into account for
fixing the reserve price.
iv. No sale should be finalized below the reserve
price. In case, it is found that the reserve price
11
cannot be realized, the Authorised Officer may
submit fresh recommendations to the committee
for a lower reserve price, and property may be
put up for sale through private treaty.
3. Sale Procedure for Movable/Immovable
Property through Private Treaty :
After failure of e-auction, the Authorised Officer
need to contact the borrower/mortgagor and take
his in-principle acceptance to dispose the
property through
Private Treaty and thereafter suitable notices
should be displayed on Bank’s website and in the
branch premises informing the public that the
property is available for sale through Private
Treaty and requesting the interested parties to
contact the Authorised Officer concerned. If any
person comes forward to purchase the property
for an amount not less than the reserve price
borrower is agreeable in writing as required under
Rule 8(8), the property can be sold to the
prospective buyer by Private Treaty. The detailed
procedure is as under:
i. The Authorised Officer will contact the
Borrower(s)/ Guarantor(s)/Mortgagor(s) for sale
of properties through Private Treaty and obtain
their in-principle acceptance.
ii. A simple notice that the property is available
for sale is to be uploaded by the concerned
branch on Bank’s website http://www.sbi.co.in
and also to be displayed in the branch premises.
Branch may also give publicity on the availability
of such property by contacting interested
parties/customers, if any.
iii. If interested buyer is already available, there is
no need to put notice for sale and the branches
can go ahead with the sale after following the due
procedure, mentioned herein.
iv. The buyer will submit application as per to the
Authorised Officer along with the following
documents:
1.Board Resolution authorizing the officials of the
company to participate in sale by Private Treaty in
case of Limited Company
2.Election ID/Electricity Bill/Passport/Bank
Account Statement/ Any other valid and
acceptable document showing the address (As
address proof)
3.Pan Card( Mandatory)
4.Phone/Mobile Number /email ID
 Quick Success Series: NPA Management
October 31, 2016
5.Details of application money (10% of sale
amount)
v. Branches need to complete the verification of
KYC Papers and make sure that the documents
are in order.
vi. On receipt of application for purchase of
property from the prospective buyer, the
Authorised Officer will send a letter to the
Borrower(s)/Guarantor(s) / Mortgagor(s) and
obtain their consent.
vii. Thereafter, the Branch will issue a letter to the
prospective buyer specifying the terms and
conditions of the sale through
Private Treaty and obtain his signature thereon in
token of acceptance thereof.
viii. On confirmation of sale by the secured
creditor and compliance of the terms of payment,
the Authorized Officer shall issue a Certificate of
Sale for the properties in favor of the purchaser
for movable assets and for immovable Assets.
ix. Sale proceeds should be appropriated towards
Bank’s dues after deducting expenses incurred on
the auction process and priority statutory dues.
Residual amount, if any, is to be refunded to the
person entitled thereto in accordance with his
rights and interest.
x. On completion of the sale as above, the
possession of secured assets is to be handed over
to the purchaser and Certificate of Sale is to be
issued.
The Authorized Officer should also obtain
receipt of possession and original Title deeds
xi. The authorized officer shall ensure registration
of Sale Certificate on making payment as per
stamp Act, and charges as applicable in the
respective State, cost of which will be borne by
the purchaser.

12
 Quick Success Series - Technology
 April 24, 2010

 QUICK SUCCESS SERIES is an initiative

 Quick Suc- of SBLC Deoghar to facilitate the
preparation of promotion seeking
personnel of our Bank, appears to
cess Series have succeeded in its objective to a
 large extent as the readers are still
approaching us for its revi-
sion/updation despite availability of
plenty of other study materials.
 We would not have been able to sus-
tain this unique effort of ours, with-
out the active support and continuous
encouragement of our DGM cum Cir-
cle Development officer Sri Bijaya-
nanda Padhi. We are deeply indebted
to him for his co-operation and guid-
 ance.
 Sri Rakesh Roshan, Chief Manager

 Technology (Training) , Sri Kumar Priyank, Chief

Manager (Training) ,Sri Sanjay Kumar
Sharma, Manager (Training) and Sri Ji-
tendra Kumar Arun Manager (Train-
ing) at this SBLC have owned up this
project and have taken pains to keep
it relevant to the users by updating &
improving it at half yearly interval.

 Though every care has been taken
while updating the contents, we re-
quest our readers to point out any
lapses at the earliest. Needless to
mention that this book is not a substi-
tute of circular instructions issued by
the Bank from time to time. For de-
 (UPDATED UP TO 31 st october tailed guidelines please refer to
2016) Bank’s latest circulars. Soft copy of
 this edition is available on our
ftp://10.151.51.33 in QSS folder and
on SBI TIMES>PATNA CIRCLE>SBLC
Deoghar site.
 Team SBLC Deoghar is humbled by the
response and recognition; it is receiv-
ing from readers within and beyond
the circle. Our Team wishes the read-
ers grand success in their endeavors.

 Abhishek Kumar Sharma
Updated By: Kumar Priyank  Assistant General Manager,
Chief Manager- Training, SBLC Deoghar  State Bank Learning Centre,
Mobile- 7321805713  Deoghar- 814112
Email- k.Priyank@sbi.co.in  Phone- 06432-232895
 Fax - 06432-231810
 E-mail: agmstc.deoghar@sbi.co.in


 [Type text] Page 1


 Quick Success Series - Technology
October 31, 2016
 ABBREVIATIONS
 RAM - Random Access Memory
 ROM - Read Only Memory
 CPU - Central Processing Unit
 CDMA- Code Division Multiple Access
 EDP - Electronic Data Processing
 EDI - Electronic Data Interchange
 EFT - Electronic Fund Transfer
 GPRS – General Packet Radio Service
 MICR - Magnetic Ink Character Recognition
 WWW - World Wide Web
 SFMS - Structured Financial Messaging Solu-
tions
 GUI - Graphical User Interface
 HTML- Hyper Text Markup Language
 HTTP - Hyper Text Transfer Protocol
 FTP - File Transfer Protocol
 ISDN - Integrated Service Digital Network
 IMPS- Immediate Payment service.
 VSAT - Very Small Aperture Terminal
 USSD - Unstructured Supplementary Services
Data
 NPCI-National Payment Corporation of India
 MDR: Merchant Discount Rate
 MTSS: Money Transfer service scheme.
 MAB: MERCHANT ACQUIRING BUSINESS
 TSP: Technology Service Provider.
 ADS- Active Directory Services
 BAS-Biometric Authentication Solution
 ASBA- Applications Supported by Blocked
Amount
 NACH- National Automated Clearing House
 MPLS- Multi Protocol Label Switching
 OCAS- Online Customer Acquisition System
 POS- Point Of Sale
 UPI- Unified Payment Interface
 APBS- Aadhar Payment Bridge System
 AEPS- Aadhar Enabled Payment System
 QR code- Quick Response Code
 BBPS-Bharat Bill Payment System
 TreDS- Trade Receivable Discounting Scheme
 MMID-Mobile Money Identifier
 MPIN- Mobile PIN
 VPA- Virtual Payment Address
 TERMINOLOGY
 BIT - The smallest amount of informa-
tion that can be transmitted

Page 2

 BYTE - A unit of information that corres-
ponds to a character (Eight bits)
 FTP - File transfer protocol. A protocol
used to provide file transfers across a wide
variety of systems
 UPLOAD - To Transfer a file from Client’s
computer to host’s computer (Server)
 DOWNLOAD - To Transfer a File From Host
(Server) to Client’s Computer
 URL - Uniform Resource Locator, the form of
the site address that reveals the name of
server where the site’s files are stored
 ENCRYPTION -Conversion of Plain Text to Ci-
pher Text using certain logic
 DECRYPTION -Conversion of Cipher Text mes-
sage to plain Text
 NACH- National clearing system with a centra-
lized platform for bulk electronic debit or cre-
dit transactions. Implemented by NPCI. Being
positioned to replace existing ECS.
 Inland LC- SFMS is made mandatory for is-
suance of LC and other related transaction
from 01/08/2012.
 SBI inTOUCH Branch- Digital Branch , started
on 01/07/2014
 Project Avirat-The 2 Mbps alternate links
project (christened as “Project Avirat”) is an
ambitious project aiming at providing 2 Mbps
alternate links on wireless/wired connectivity
to all branches of State Bank of India and As-
sociate Banks, including VSAT branches. The
alternate connectivity will translate into high-
er uptimes, adequate and consistent connec-
tivity at end locations leading to better us-
er/customer experience.
 ITAM-IT Asset Management Solution-The ob-
jective for ITAM solution was to manage the
IT assets of the Bank with respect to cost, risk,
governance and compliance to meet the busi-
ness performance objectives of the Bank.
 STATE BANK CASH POINT- State Bank Cash
Point is a ‘Cash Recycler’ i.e. an ATM-like ma-
chine that performs dual functions of cash
withdrawal and deposit. From the customer
perspective, it functions exactly like our
present day ATM and CDM. While cash with-
drawals will be effected using a debit card,
customers can use their debit card/ cardless
function to make cash deposits.
ATM
 Quick Success Series - Technology
October 31, 2016
 ATM - stands for- Automated Teller Machine
 FIRST ATM in the world was installed by Bar-
clays Bank in London in 1967
 FIRST ATM in INDIA was installed by HSBC in
Kolkata in 1987
 FIRST PSB to Install ATM in INDIA – Indian
Bank
 Installation of FIRST ATM By SBI- At Jamshed-
pur in 1993
 We have two ATM Switches viz. Base24 and
Electra. The production setup is at Mumbai
and DR setup for Base24 is at Hyderabad and
for Electra at Chennai. All the Electra Switch
Connected ATMs are scheduled to be mi-
grated to Base24 Switch before July 2016.
 The Bank's ATM Switch, set up at Belapur,
Navi Mumbai consists of:
• Tandem Server (HP Himalaya Series), which
is fail-safe, fault-tolerant and highly scaleable.
• Base24, the application software for Tan-
dem, supplied by ACI Worldwide, Singapore.
• Host Security Module (HSM) - supplied by
Racal, UK, provides for PIN authentication.
• Connectivity to the network through
SBConnect, VSATs, CDMA.
 Disaster Recovery Site (DRS): The Bank has
established a DRS at LHO, Chennai to take
care of any disruption of in services at the ASC
at Belapur. The ATM Switch hardware and
software have been replicated at DRS. All
ATM and POS transactions are also replicated
at DRS online using extractor / replicator utili-
ty.
 SBI seamlessly migrates its BASE 24 ATM
SWITCH, to become the first bank in the world
to operate a switch on HP nonstop Quad Core
System, capable of handling over 50000
ATMs..
 ATM vendors : The bank has purchased ATMs
of different makes and models from almost all
ATM manufacturers viz. NCR, Diebold, Win-
cor, Hitachi, Hyosung, Oki and Vortex de-
pending on its requirements.
 ASC has been awarded with the “ISO Certifica-
tion - 27001” indicating highest technical and
Security/safety standards
 Managed Services (MS) providers : The Bank
has outsourced the management of ATMs on
its network to NCR, AGS, HitachiPayments
(Prizm) and FSS (4 vendors)

Page 3

 MS vendor will be allowed maximum 2 cash
outs per 100 ATM per month or part thereof
for the group of ATMs allotted to vendor at
Circle level. Penalty will be levied for any addi-
tional cash out during the month. Penalty
would be as under:-
(i) Rs. 1000/- per incident
(ii) Additional Rs.5000/- if cash out continues
beyond 12 hours, for each block of 4 hours.
 The ATMs have been classified into 3 dif-
ferent categories- Metro ATMs, Preferred
ATMs and Regular ATMs.
Metro ATMs: All ATMs (including BLA/TOM) lo-
cated at six metro centres viz. Delhi, Mumbai,
Kolkata, Chennai, Hyderabad & Bangalore. As per
new MS Agreement, MS vendors have to maintain
higher availability (96%) at all Bank owned ATMs.
The concerned Circles should follow up with BLA
vendors also for maintaining availability commen-
surate to the target (96%) for CAPEX ATMs at
these centres.
Preferred ATMs: ATMs identified (CAPEX only) on
the basis of VIP locations advised by Circles, num-
ber of daily average hits and percentage share of
acquiring transactions in total transactions at a
particular ATMs. MS vendors have to maintain
higher availability compared to other ATMs at the
centres (as mentioned in the agreement).
Star ATMs: These are ATMs identified at four Me-
tro centres (Delhi, Mumbai, Kolkata and Chennai)
where Circles have to achieve 100% availability
and ambience, visibility, signage, etc. of these
ATMs has to be above par.
Regular ATMs: All ATMs which have not been ca-
tegorised in any of the above three categories are
‘Regular ATMs’.
 Overnight cash retention :
Source: Report from the link branch
SLA: Vendor will not hold or retain in their vault
more than 15% of the total cash taken from
Bank on monthly basis.
Penalty: If the retention is more than 15%, a pe-
nalty of 6% per annum will be levied on the
excess cash retained in the vault during the
month
Card Issue Service Providers
I) Vendors for Contact Cards:
a. Syscom Corporation (P) Ltd. – A Morpho Com-
pany.
 Quick Success Series - Technology
October 31, 2016
b. MCT Cards & Technology (P) Ltd.
c. Giesecke & Devrient India (P) Ltd.
II) Vendor for (Dual Interface) Contactless Cards:
a. MCT Cards & Technology (P) Ltd.
b. Oberthur Technologies India (P) Ltd.
c. Syscom Corporation (P) Ltd. – A Morpho Com-
pany.
 For off-site ATM connectivity, we are using
following wireless technologies:
CAPEX Model OPEX Model
VSats HCL Comnet, HCL Comnet,
Hughes, Bharti Hughes, Bharti
Airtel Airtel, Tata
CDMA Tata, Reliance Reliance
2G/3G Vodafone, Airtel
 Criteria for Issue of Cards:
All new SB Account / Current Account holders are
eligible for issuance of ATM- cum-Debit card and
the request is to be made on the SB Account
opening form itself. All existing account holders
who maintain the specified minimum balance are
also eligible for issuance of the card. The excep-
tions to the above rules for the issuance of card
are:
• Accounts Operated jointly by all the account
holders,
• SB accounts of minors except cheque operated
accounts by minor,
• Accounts operated by illiterates.
 Issue of ATM Cards for Joint Accounts
• Either or Survivor / Anyone or Survivor: In case
of joint accounts operated by "either or survivor"
or "anyone or survivor", a card may be issued to
each account holder authorized to operate the
account. Minimum balance and other eligibility
conditions would apply to each card holder sepa-
rately. For joint accounts, maximum of two cards
can be issued under different names.
• Former or Survivor: In case of joint accounts
operated by "Former or Survivor", the card can be
issued only to the "former". The request for is-
suing an ATM card must be signed by all the ac-
count holders in such cases.
• Joint Operation: In case the mode of operation
is "jointly" by all the account holders, ATM cards
cannot be issued. If the account holders desire

Page 4

ATM cards, they must change the mode of opera-
tion suitably.
 Features of the ATM cum Debit Card
The front face of the card displays 19 digit (Maes-
tro Cards) or 16 digit (Visa/Mastercard/Rupay)
card number in addition to the name of the card-
holder and the month from which card is valid.
Maestro Cards are issued with a validity period up
to year 2049.
For 19 digit cards, the first 6 digits of the ATM
card number represent the Bank's Institutional
Identification Number (UN) / (BIN), the next five
digits represent the branch code 12th digit
represents type of card (0 - domestic, 7 - Kisan, 8 -
International), next 6 digits represent the serial
number of card issued at the branch and the last
digit is the check digit.
For 16 digit cards, first 6 digit of the ATM card
number represent the Bank’s Institutional Identi-
fication Number (UB/BIN), next 9 digits represent
the serial number and the last digit is the check
digit.
The reverse of the card has a magnetic stripe and
a white stripe for the signature of the cardholder.
The magnetic stripe contains cardholder related
details and should not be exposed to harsh condi-
tions. So far, the Bank has been issuing only mag-
netic stripe based cards. However, with effect
from 01-11.2015, our bank is issuing only EMV
compliant cards.
EMV : Europay, Mastercard and Visa have devel-
oped a common standard for smartcards to re-
duce the frauds taking place with magnetic stripe
cards. EMV is a standard for chip embedded
cards, often referred to as smart cards. The trans-
actions with EMV Cards are more secure (protects
against counterfeit card) and can hold more in-
formation than magstripes.
ISSUANCE OF ALL NEW DEBIT CARD AS EMV CHIP
+ PIN CARDS (e-cir 1349 dt 03/02/2016)
From 1st Feb 2016 (i.e. as per the extended time-
lines permitted by RBI) all the Branches should
stop issuance of the existing inventory of Mag-
stripe based non-personalized cards and issue
only EMV CHIP Cards. As regards the existing
stock of classic Magstripe Cards, branches may
arrange to destroy the same as the same cannot
be issued from today onwards.
 Quick Success Series - Technology
October 31, 2016

DEBIT CARDS : (Amt in 000’) a. Ideal for payment of salaries/ periodic pay-
Feature Classic Global Gold Platinum ments for blue collar workers.
ATM Limit 40 40 50 100 b. Simplified KYC (i.e. name, photograph, contact
POS Limit 50 75 200 200 number and address)
Dom/Intl DOM INTL INTL INTL c. Validity 10 years
Chip/stripe CHIP CHIP CHIP CHIP d. Card limit Rs. 10000.00 (monthly limit Rs.
Purchase NA NA 5 50 25000.00)
Protection e. Can be bulk loaded online.
Accidental NA NA 200 500 f. Can be used on ATM, POS & online.
Insurance
Prepaid Cards Visa Money Transfer (VMT) facility enables any
A) Gift Card: card holder of the Bank to transfer funds through
a. Ideal for Corporate and individual gifting the SBI Group ATM and all INB Users with transac-
b. Also available online. tions rights to any VISA Debit Card / Credit Card
c. Validity 3 years. issued by the bank or any other bank in India. The
d. Card limit Rs. 50000.00 card holder has to make one time registration and
e. Single load. set up the VISA Card to which he proposes to
f. Can be used on POS and online. transfer funds through www.onlinesbi.co.in.
B) Achiever Card Transaction Limit- Rs 50000/- and Charge Rs 20/-
a. Ideal for Corporates for non-cash incentives to + service tax.
employees.
b. Reloadable. Card to Card Transfer (C2C) All ATM cum Debit
c. Validity 10 years. Card holders of State Bank Group except State
d. Card limit Rs. 100000.00 (200000 for employee) Bank of Patiala and State Bank of Mysore custom-
e. Can be bulk loaded online. ers. (This facility has been disabled for SBP and
f. Can be used on POS and online. SBM as per their request. The card holders of SBP
C) EZPAY Card and SBM cannot remit funds but can receive
a. A variant of Rupee prepaid card with reloadable funds)enables card holders to transfer funds to
limit of Rs. 50000.00 any card holder within State Bank Group through
b. An ideal product for payment of Govt. dis- any State Bank ATM. Transaction Limit Rs 40,000/-
bursement (Scholarship, social benefits etc) . Per day without any limit of number of txn. Time
c. Wages to blue collar workers limit for Credit- Within the same Bank-On line.
d. Validity 10 years Between different Bank-T+1 day.
e. Loading/ reloading at SBI branches/ through
CINB  Money Send is launched by Master Card
f. Can be used on ATM, POS & online. Worldwide (MCW). It enables our card hold-
D) Foreign Travel Card ers to remit funds to any Maestro/Master
An ideal product for IT and other Corporates de- Card holder of other banks within the country
puting their employees on overseas assignment, through State Bank Group ATMs. Transaction
student going abroad for studies and leisure tra- Limit- below Rs 50000/- per transaction.
vellers etc Charges- Upto Rs 25000/- Rs 20.00 per trans-
.a. Available in 8 currencies- USD, GBP, EURO, action and More than Rs 25000/- Rs 30 per
AUD,CAD,JPY,SAR & SGD. transaction. Day of Credit- (T+1) in case of
b. Single/ multi-currency option Maestro Card and (T+2) in case of Master
c. Customised limit. Card & VISA.
d. Add-on card option available  Undelivered ATM Cards & PIN should be in
e. Corporate/ individual variant separate custody.
f. Validity 5 years.  ATM Cards not delivered within a period of 45
g. Reloadable. days should be hot listed through Contact
h. Can be used on ATM, POS & online. Centre.
E) Payroll Card


Page 5

 Quick Success Series - Technology
October 31, 2016
 PIN Mailers not delivered within a period of
45 days should be destroyed and Cards hot
listed through Contact Centre.
 International Debit Card
Bank issues International Debit Cards, which are
affiliated to MasterCard International's/VISA etc.
These cards can be used abroad and transactions
can be made in the currency of the country where
card is used.
There is no monetary ceiling on spends through
International Debit Card while on a visit outside
India except that it should not exceed exchange
entitlements of the person under extant FEMA
guidelines. The other condition is that the total
amount of transactions on the card will be limited
to the extent of the balance available in the ac-
count maintained by the cardholder.
The daily transaction limit per card has been set at
US$ 1000/- each for merchant transactions and
ATMs. As such, the total permissible withdrawal
at Merchant Establishments and ATMs on a day is
a maximum of US$ 2000/-.
Issuance of ATM Photo Card
ATM Photo cards are issued to the following cate-
gories of Customers:
• MAHE Card (exclusively for Manipal University
students / employees)
• ARMY Card (exclusively for Army personnel)
• IIM-L (exclusively for Indian Institute of Man-
agement, Lucknow)
• Pehla Kadam, Pehli Udan etc.
 Kisan card can be given only for ACC / KCC
Account Types excluding PB/RD products
and to individuals only.
 SBI Exporters Gold card can be
given only for EPC (CC) account
types (Product Types
COMPLAINT
 complaints for unsuccessful transactions
 RBI- ATM related complaint to be resolved
within 07 working days from the date of com-
plaint; else Bank has to compensate the cus-
tomer with Rs. 100/- per day beyond the 07th
day.

Page 6

 To be Paid by Debit to BGL A/C No 2399995
Charges (ATM Compensation)
 Centralization of ATM Complaints Registra-
tion. Complaint Management System (CMS)
launched with effect from 21st Dec 2009.
 URL Address for CMS is
https://10.0.22.170:8070/CMS. Can be as-
sessed at Branch, Contact Centre, Administra-
tive offices and ASC
 SBI customer can lodge the complaint in CMS
either by calling the contact centre or at any
branch (not necessarily customer branch) for
following five categories:
i) Account debited but cash not dispensed
ii) Account debited twice for the same withdrawal
iii) Amount debited but amount not transferred to
merchant establishment
iv) Account debited twice for the same transac-
tion at POS
v) Regeneration of PIN
Following transactions can also be lodged through
CMS wef 20.10.2010:
 ATM Services: B to B transactions, C to C
transactions, VISA money transfer, Trust do-
nations, FEE payments, Mobile Top up, SBI
card payments
 Payment gateway transactions: Online trans-
actions through SBI debit card
 Customer can also track his complaint by call-
ing at contact centre or sending a SMS “ATM
ticket number” to 567676 (for e.g. ATM
AT429212345)
 Error Codes in ATM:
 00-Transaction approved with Balances
Transaction is successful
 01- Successful Transaction – NO BALANCES
FOR DISPLAY (applicable to Credit Cards)
 50- UNAUTHORISED USAGE -Card Blocked –
Branch should arrange for re-activation of the
card
 51- Expired Card
 52- Invalid Card
 53- Invalid PIN
 54- ACCOUNT NOT APPEARING IN PBF AT
SWITCH CENTRE. Cards not flagged in the
branch. Card issue status should be ‘ON’
 55- INELIGIBLE TRANSACTION –The customer
account status is dormant. Cashwithdrawal
should be made across the counter to activate
the account or branch should reset the dor-
mancy flag.
 Quick Success Series - Technology
October 31, 2016

 56- Ineligible Account (Selection of wrong
type of A/C)
 57- TRANSACTION NOT SUPPORTED by this
ATM
 58- INSUFFICIENT FUNDS Verify Bankmaster
Node is working properly
 59- INSUFFICIENT FUNDS (Try for lesser
amount) Verify Bankmaster Node is working
properly
 60- MAXIMUM NO. OF WITHDRAWAL for the
User ALLOWED REACHED
 61- Would have EXCEEDED WITHDRAWAL of
per day LIMIT of Rs.15,000/=- customer can
try for a lesser amount
 62- PIN Tries Exceeded
 63- WITHDRAWAL LIMIT ALREADY EXCEEDED
further withdrawal will not be permitted
 64- INVALID CREDIT CARD CASH ADVANCE
AMOUNT
 68- EXTERNAL DECLINE – other bank / agency
not accessible
 69- NO SHARING BETWEEN THE CARD ISSUED
 70- SYSTEM ERROR (Please try other ATM (or)
contact branch – can be hardware problem
 71- CONTACT CARD ISSUER (Credit Cards only)
 72- MINI STATEMENT NOT MADE AVAILABLE
(not connected to database) –
 73- ROUTING LOOKUP PROBLEM – Connectivi-
ty problem
 74- MESSAGE EDIT ERROR – card damaged
 Changes introduced in ATM transaction flow
to safe guard customer interest and Bank’s
image
 i) Screen “Receipt cannot be printed, do you
want to continue” removed - to prevent the
frauds committed by jamming the receipt
printer
 ii) 2 digit security screen introduced - to pre-
vent the key pad tampering frauds
 iii) PIN entry time reduced from 30 seconds to
20 seconds and display time of screen “Do
you want some more time” reduced from 60
seconds to 05 seconds - to restrict the time
availability to the miscreants for manipula-
tions
 The existing Debit Card issuance strategy has
been modified in line with RBI guidelines
w.e.f. September 1, 2013 as follows: (e-Cir
579/ 2013-14)
Debit Card to Illiterate Customers- Now Debit
Card may be issued to illiterate customers under
financial inclusion products to those who request
for such cards. Under PMJDY, RuPay Debit Cards
are to be provided to all Basic SB account holders
to extend to them the benefit of Rs one lac acci-
dent insurance cover.
Limit Channel Change Through INB- The customer
may select “ATM Card Limit/Channel/Usage
Change” option and the customer may decide,
based on his/her preference and input:
• “ATM/POS/CNP” daily limits
• Enable/disable ATM/POS/CNP channel
• Enable/disable domestic/international usage for
State Bank International Debit Cards
INTERNET BANKING
State Bank of India had introduced Internet Bank-
ing Services in July 2001. Through its portal
www.onlinesbi.com, Bank provides world class
Internet Banking services to:
Retail customers – Retail Internet Banking (RINB)
for ‘P’ segment customers including NRI custom-
ers.
Corporate Customers – Corporate Internet Bank-
ing (CINB) for SME customers having business ac-
counts with the Bank.
The list of the banking services (financial and non-
financial) offered to Retail customers through the
Bank’s Internet Banking portal
www.onlinesbi.com are as under;
List of Non-Financial Services
1. View/Download/Print Account Statement (De-
posit, Loan, PPF).
2. View Account summary.
3. Reprint Challan.
4. View Income Tax statement (Form 26AS).
5. Link Aadhaar Number.
6. Link LPG customer ID.
7. Online registration for PMSBY (Pradhan Mantri
Suraksha Bima Yojana).
8. Online registration for PMJJBY (Pradhan Mantri
Jeevan Jyoti Bima Yojana).
9. Online registration for APY (Atal Pension Yoja-
na).
10. Change of Login Password.
11. View Loyalty Points under State Bank Re-
wardz.


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
 Quick Success Series - Technology
October 31, 2016

12. Windows App Registration for State Bank An- 57. Demat Services (Holding details, transaction
ywhere. statement, billing statement)
13. Offers. 58. Generate challans/e-Receipts.
14. Add Billers. 59. Add to Favourites.
15. Delete Billers. 60. Online Registration for Retail Internet Banking.
16. Modify Billers. 61. Online Resetting of Login Password and Profile
17. Approve Billers. Password.
18. View Bills. 62. Filing of Income tax returns.
19. View payments history. 63. SBG Group services (Register and view SBI MF
20. View deleted billers history. and SBI Life details).
21. Scheduling of Bills. 64. Lock User Access.
22. Find Transactions.
23. Interest Certificate on Deposit accounts. List of Financial Services
24. Download Housing Loan Interest Certificate. 1. Intrabank Fund Transfer.
25. Download Education Loan Interest Certificate. 2. Interbank Fund Transfer (NEFT/RTGS/GRPT).
26. Download Housing Loan (Prov.) Interest Certif- 3. IMPS Fund Transfer.
icate. 4. International Fund Transfer.
27. Status Enquiry. 5. State Bank mCASH - Send money on contacts.
28. Scheduled Transactions. 6. Power Jyoti Fee PUL Collection.
29. Pension Slip. 7. NPS contribution.
30. Transaction Limit/Charges. 8. EPFO subscription.
31. Reprint EPFO Challan. 9. Western Union Money Transfer (Receive Mon-
32. Set Account Nick name. ey).
33. View/modify personal details. 10. Credit Card (VISA) Bill Payments.
34. High Security Options. 11. Donation to Religious and Charitable institu-
35. Manage Accounts Display (hide/unhide). tions.
36. Generation of Form 15G/H. 12. NRI e-Z Trade Funds Transfer.
37. Enquire submission of form 15G/H status. 13. Online request for Issue of Demand Draft.
38. TDS enquiry. 14. Utility Bill Payments (Electricity, Water, Tele-
39. TDS Account Linking. phone)
40. Online Mobile Number Registration/Updation. 15. Mobile Top Up & DTH Recharge.
41. SMS alert registration/updation. 16. SBI Life Insurance Premium payment.
42. Request for issue of cheque book. 17. Mutual Fund Purchases.
43. Online request for stop cheque payment 18. SBI General Insurance Premium payment.
(single/range of cheques). 19. Premium payments of other insurance com-
44. Revocation of stop cheques instruction. panies.
45. Online upgradation of access level. 20. Online creation and closure of e-TDR/e-
46. Apply for opening PPF account. STDR/e-MOD.
47. Registration, De-registration of State Bank 21. Online creation and closure of e-RD/e-Flexi
Freedom. Deposit.
48. Locker availability search. 22. Online creation and closure of e-Annuity De-
49. Update Buddy Wallet through KYC. posit.
50. Enquire/Registration/Cancellation of Nomi- 23. Overdraft against Deposit accounts.
nation. 24. My Holiday Savings account.
51. Sweep creation for CSA accounts. 25. Auto Sweep facility.
52. ATM PIN Generation. 26. Online payment of State Govt. taxes.
53. Block/Hotlist ATM card. 27. Online payment of Direct taxes.
54. Activation of New ATM card. 28. Online payment of Indirect taxes.
55. Apply for New ATM card. 29. Setting of SI for periodical transfer of amount
56. Set ATM Transaction limit (Cash withdraw- to other accounts.
al/CNP). 30. Online request for closure of loan accounts.

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 Quick Success Series - Technology
October 31, 2016

31. Apply online for IPO (Equity). No.NBG/NBG-INB-INB/3/2013-14 dated August

32. Apply online for IPO (Debt).
33. NRE Services (Outward Remittance from
NRE/FCNR (B))
34. Request by NRE customers for Inward Remit-
tance Disposal.
35. State Bank Virtual Card (Gener-
ate/Cancel/view virtual card details).
36. Gift Card (Create/Top Up/View History).
37. Prepaid Cards (Register/Top up/De-
Register/view prepaid card details).
38. SBI Exclusif.
39. Payment of various fees of Educational Institu-
tions.
40. Online Ticketing (Booking of Rail/Flight/Bus
tickets).
41. Trade in Shares (eZ-trade@SBI).
42. SBI FX Trade for trading in Currency futures.
43. Sweep Creation for CSA.
44. EMI for e-Commerce.
45. Top up Buddy.
Eligibility:
All individual customers satisfying Bank’s KYC
norms, are eligible to register for Internet Banking
facility.
For minors, the internet banking facility shall be
made available as per the account opened under
the specific product/variant (Pehla Kadam/Pehli
Udaan). Minor accounts opened under product
codes other than Pehla Kadam/Pehli Udaan can
also be provided INB facility with View/Limited
Transaction rights as opted by the account holder.
Jointly operated accounts are not eligible for INB
facility. However, Joint Accounts with operational
instructions as ‘Either or Survivor’ or ‘Anyone or
Survivor’ or ‘Former or Survivor’ or ‘Latter or
Survivor’ are eligible for INB facility.
PMJDY accounts opened under BSBDA (Basic Sav-
ings Bank Deposit Account) are also eligible for
Internet Banking facility.
Power of Attorney (PoA) holders provided the
PoA specifically authorises the agent to operate
the bank account through internet banking. (Refer
e-Circular No. NBG/NBG-INB-INB/13/2012-13
dated January 11, 2013)
Visually Challenged customers are also eligible for
availing INB services of the Bank. (Refer e-Circular
8, 2013).
Types of accounts eligible for INB are Savings Bank
(Including NRE), Savings Bank plus, Current Ac-
count, Current Account (Over Draft), Maxgain Ac-
counts, Term Loan account, Demand Loan ac-
count, PPF account, Term Deposit accounts such
as TDR,STDR,MODs and RD.
(Illiterate customer not to be provided with the
INB facility as he himself will not be able to use it
and will have to depend upon third person to use
the facility giving rise to additional risks of per-
petuating frauds apart from risks of phish-
ing/vishing which are applicable to all types of
customers)
 Site for Internet Banking www.onlinesbi.com
 Site is verified by Veri sign & Secured by 256
bit encryption
 Site is maintained by Satyam / SIFY
 URL Address for Branch login:
http://192.168.25.52
 PPK stands for Pre Printed Kit. A Packet con-
tains 100 PPKs.
 Each PPK has a unique 10 digit Number
 First Five Digit of PPK denotes Packet Number
 6th & 7th Digit of PPK denotes Circle Code
(SBI Circle in which PPK will be issued)
 8th & 9th Digit of PPK Denotes Serial Number
(ranging from 00 to 99)
 10th Digit of PPK Denotes Checksum Number
 PPK is available for Retail Customers & Khata
Type Corporate Customers
 Three types of user rights facility is available
under RINB
 View rights only
 View and transaction rights
 Limited transactions rights
 Under Limited Transaction Rights, Customer
can use following features of INB
 i) Funds transfer within his/her own accounts
 ii) Opening of new deposit accounts under e-
TDR/e-STDR scheme.
 iii) Request for opening new accounts under
the same CIF through branch intervention
 ENHANCEMENTS/MODIFICATIONS
 The following enhancements/modifications
have been done in retail internet banking:
 (i) e-TDR/e-STDR for Senior Citizen with addi-
tional rate of interest:- The facility enabling

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 Quick Success Series - Technology
October 31, 2016
senior citizens to open e-TDR/e-STDR with
additional rate of interest through internet
banking has been introduced. This enables
our senior citizen customers to open e-TDR/e-
STDR without visiting the Branch. The date of
birth recorded in CBS is used for age calcula-
tion and categorization of customer as senior
citizen.
 ii) Maturity Instructions Tenor for e-TDR/e-
STDR:- The functionality has been developed.
It allows an internet banking user to give any
one of the following maturity instructions
while making e-TDR/e-STDR:
• Auto renew principal
• Auto renew principal and repay interest
• Repay principal and interest
 (iii)e-RD for Limited Transaction Rights Us-
ers:- The facility for online opening of RD ac-
counts has been extended to internet banking
users with Limited Transaction Rights.
 (iv) Removal of Term Deposit Account
and Recurring Deposit Account option from
opening of accounts through MIT:- The option
for opening term deposit account and recurring
deposit account through manual intervention
has been removed . This has been done as the
functionality of making e-TDR/e-STDR/e-RD is
fully operational and has gained popularity
among internet banking users.
(v) Maximum Limit for creation of e-TDR/e-
STDR:- The maximum limit for creation of e-
TDR/e-STDR has been increased from Rs.10 lacs
to Rs.25 lacs. Minor can also be given INB Facili-
ty Only with View rights.
 Internet banking facility for the visually chal-
lenged is introduced in January, 2010 and
available to such customer. No additional un-
dertaking should be taken from them for pro-
viding INB facility. The following internet
banking services are available to visually chal-
lenged customers from the above URL: I. En-
quiry of balances and transactions. II. Genera-
tion and downloading of statement of ac-
counts III. Transfer of funds within own ac-
counts linked under the username of visually
challenged customer IV.
 MIT stands for Manual Intervention Transac-
tions (Transactions for which requests re-
ceived from the customer are placed in CBS
by the INB system)

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
 Services where No Manual Intervention is re-
quired- i)Balance Enquiry ii) Account State-
ment iii)Fund Transfer to Self Accounts
iv)Third Party Fund Transfer v) Inter Bank
Payee Fund Transfer vi) PPF transfer vii) E-Tax
Payment viii) E-ticketing ix) Bill Payments x)
Visa Money Transfer xi) Making Donations xii)
eZ Trade xiii) Setting up Standing Instruction
xiv) Issuance of Cheque Book xv) TDS related
enquiry xvi) DEMAT Enquiry xvii) Online Appli-
cation for IPO xviii) Opening of eTDR/eSTDR
 Services where Manual Intervention is re-
quired- i) Opening of new account (Savings,
Current) ii) Issue of Draft iv) deposit renewal
v) closure of loan account
 IRATA- INB Request Approval Through ATM-
Following requests now may be approved
through ATM instead of visiting the branch-
(i) Immediate activation of third party and availing
full third party transfer limit of Rs.10 lacs instantly
(Instead of a cooling period of 4 days from the
normal limit Rs.1,00,000/-)
(ii) Resetting of login password in the event when
the customer has forgotten the profile password.
(iii)Unlock User Access
DD Through INB request: Time Norms: By Hand
(OTC)-10 Minutes, By Courier- Same Day, not later
than 3 working days.
e-RD
1.No manual intervention required by branches
for opening / closure of recurring deposit account
under (e-RD).
2. Domestic, NRE & NRO customers & Staff mem-
bers can avail this facility.
3. The online opening / closure facility through e-
RD available between 08:00 HRS IST and 20:00
HRS IST. Requests received for e-RD creation
/closure beyond this period will be scheduled for
next opening hours, if user opts for the same.
4. The RD a/c in INR will be opened in the same
name(s) and mode of operation as in the debit a/c
from which first installment of e-RD a/c is paid.
The customer can select the debit a/c as per
his/her choice at the time of opening e-RD, if
he/she has more than one transactional accounts
mapped to his/her username.
5. The period and minimum amount limit of e-RD
will same as mentioned for RD product code in
CBS.
 Quick Success Series - Technology
October 31, 2016
6. e-RD will create recurring deposit a/c .In the-
same session, setting up SI possible. The SI
created through this process is cancelled auto-
matically on online closure /
Premature closure of e-RD The SI created (Sepa-
rately through Internet Banking or through
Branch) will need to be cancelled by the custom-
er/Branch.
7. Passbook for e-RD accounts will not be gener-
ated online. Customers can print statement of e-
RD account through IN Banking/home branch, if
they need a passbook for their e-RD accounts.
8. For enquiring current deposit interest rates, a
hyperlink of our corporate web-site
(www.sbi.co.in/ www.statebankofindia.com) has
been provided on e-RD request page,
9. Senior citizens (Public & Staff) will not be able
to avail privileged rate of interest facility in e-RD.
the branch.
10. Benefit of interest rate to staff will be availa-
ble only if the debit a/c is categorized as staff ac-
count in Core & INB database.
11. The e-RD details will contain the e-RD a/c no.,
debit a/c no. from which the e-RD a/c is funded,
period selected by customer, Interest rate and
maturity date.
The RD accounts not opened through e-RD, can-
not be closed online through “Close a/c” tab un-
der “e-RD”.
12. The nominee of the selected debit a/c will be
retained to e-RD account, if the customer opts for
the same. Home branch can set the new nomi-
nee(s) on the request of customer
after receiving appropriate documents from
him/her.
13. Instructions/ rules/guidelines for normal RD
account will mutatis mutandis be applicable for e-
RD accounts also.
 Profile Password is needed to access all links
under profile tab. It is created at the time of
First Login.
INTERNET BANKING : ELECTRONIC BILL PAYMENT
FACILITY INTRODUCTION OF SBI INSTAPAY SER-
VICE‘SBI-Insta Pay’ has been introduced in ‘onli-
nesbi.com’
The salient features of this product are as under:
i) Prior registration with the biller is not re-
quired.ii) The customer can make the payment by
debit to his account in SBI.iii) A wide variety of
billers like electricity and other utility bills, pre-
paid / post-paid mobile phones, insurance pre-

Page 11

mium, credit card, DTH and donations are availa-
ble.
 OD Facility- Now RINB customers can avail OD
against their TDR/STDR online between 8am
to 8 pm.
 A customer can change his/her mobile num-
ber in INB as well as CBS through INB with the
help of ATM Card details and Contact Centre
without visiting the branch
 Corporate Internet Banking has four variants-
KHATA, KHATA PLUS, VYAPAR & VISTAAR.
 KHATA- Enquiry Only / used for enquiry on all
accounts at one branch
 KHATA PLUS- Enquiry Only/ used for enquiry
on all accounts at various branches across the
country
 VYAPAR- Enquiry & transaction / for corpo-
rate maintaining account at any one SBI
Branch. Single Transaction Limit Rs 50.00 Lakh
without day cap. Permitted Transactions -
Fund Transfer/Third Party Payment/ Inter
Bank Payment/Draft Issue/Payment to Regis-
tered Suppliers/ E-Tax.
 VISTAAR- (Complete range of online transac-
tions for corporate maintaining account at
multiple branches of SBI) TP Fund Transfer up-
to Rs 500.00 Crore per transaction without
day cap/ request for issue of Demand Draft -
Rs 1.00 crore per transaction/ No limit on No
of Transaction.
 Permitted Transaction: Fund Transfer/Third
Party Payment/Inter Bank Payment/Draft Is-
sue/Payment to Registered Suppliers/Bulk
Upload Facility/E-Tax/DGFT Pay-
ments/Customs Payments/ Excise Duty Pay-
ments.
 SARAL- A simplified single user interface with
functional and security features similar to Re-
tail Internet Banking facility called “CINB Sar-
al” has been launched. CINB ‘Saral’ will facili-
tate penetration of CINB among a larger sec-
tion of SME customers and micro enterprises
as the facility is single user based, operated
on the lines of RINB and hence highly user
friendly.
RETAIL INTERNET BANKING (RINB) ONLINE FOR-
EIGN OUTWARD REMITTANCE PROJECT ‘rem-
Xout’ (e-cir:520/2012-13 dt:28/08/2012)
The product will be initially available to the RINB
users of Metro-Urban Branches. Remittance will
 Quick Success Series - Technology
October 31, 2016
be permitted in USD, EUR and GBP. Remittance
will initially be restricted to the following 11 coun-
tries : (UK, USA, Australia, New Zealand, France,
Germany, Japan, Canada, Singapore, South Africa
and Hongkong) A user can make upto 4 remit-
tances in a calendar month. A commission of
USD10 in INR equivalent would be charged for
each remittance. The GMU, Kolkata, will share the
commission with the Branches in the ratio of
80:20 on the INR equivalent of commission recov-
ered. No commission would be recovered from
staff and Bank’s pensioners.
The security features and limits applicable for
third party transfer in INR will be applicable muta-
tis mutandis to Forex remittances also, i.e.,
(a) Only one third party foreign beneficiary would
be added in a calendar day. (b) The beneficiary
would be activated on the next day, after a cool-
ing period, during which SMSes will be sent at pe-
riodic intervals to the user. (c) The aggregate fund
transfer limit for the newly added beneficiary will
be equivalent to forex value of Rs.50,000/- for the
first five days. A user can add upto seven benefi-
ciaries for making outward remittances.
A new registration process has been developed
for INB registration for new user- User Driven Reg-
istration Process for Internet Banking (URIB)
Process: 1. Customer will apply online, create his
temporary username, password and generate reg-
istration form containing a ‘Ref. No.’.
2. The registration form, duly signed, will be
submitted by the customer at his home branch in
person or by post/courier.
3. Branch would scrutinize the registration form
and complete the registration process by input-
ting the Ref. No. printed on the application form
against the ‘Internet Banking Kit No.’ field in CBS
screen.
Customer can login after 1 hour with the user-
name and password already created by him. (e-
circ 1386/2013-14). Now CBS sends INC and CAM
files regarding customer data to INB every 30 mi-
nutes during the day from 9.00 am to 8.00 pm.
 Internet Banking Request Approval through
ATM (IRATA)- Functionality to approve follow-
ing INB request
(i) Immediate activation of third party and availing
full third party transfer limit of Rs.5 lacs instantly

Page 12

(Instead of a cooling period of 5 days from the
normal limit Rs.50,000/-)
(ii) Resetting of login password in the event when
the customer has forgotten the profile password.
(iii)Unlock User Access
SBI ANYWHERE- An app meant for using INB in
mobile phone. Internet connectivity is required.
Special feature- ePassbook.
INTERNET BANKING: GIFT CARD
ONLINE PURCHASE FACILITY FOR RETAIL INB
CUSTOMERS (e-cir 1396 dt 11/02/2016)
The bank has introduced following Image based
gift cards for various occasions:-
i. Anniversary Gift card
ii. Birthday Gift card
iii. Christmas Gift card
iv. Congratulation Gift card
v. Diwali Gift card
vi. Durga Puja Gift card
vii. Id Mubarak Gift card
viii. Silver Jubilee wishes Gift card
ix. New year Gift card
The steps involved in the activity are as under:-
a) Customers, having Retail Internet Banking facili-
ty with transaction right will be able to request for
Image Based Gift Card.
b) The applicant provides his/ her details, benefi-
ciary details, address to which the card will be
sent and select the Image. One time password is
sent to INB customer for issuance.
c) Information is sent to prepaid host for
processing the request.
d) Image Based Gift Card is created and sent to
customer as ‘0’ value card along with the PIN Mai-
ler.
e) On receipt of the card, customer logs into Onli-
neSBI and loads (one-time only) the card. SMS
based one-time password (mandatory) is sent to
applicant’s registered mobile number and after
debiting customer’s account the information for
top up is sent to Prepaid Host.
 Quick Success Series - Technology
October 31, 2016
f) Status of the card and value of top up can be
seen from ‘enquiry’ tab.
MOBILE BANKING
 Brand Name- State Bank FreedoM.
 MBS available to satisfactory running Current
/ Savings Account holders of P segment &
SME customers (CC and CA).(For SME cus-
tomers only enquiry right of their last 5 trans-
actions).
 It can be availed over:
A) SMS Platform
B) USSD (Unstructured Supplementary Data-
Services)
C) Wireless Application Protocol, and
D) Application Based
 Functionalities available under C) & D)-
Balance Enquiry / Mini Statement (Last 5
Txns) / Fund Transfer (To accounts with SBI &
other Banks) / Cheque Book Issue / Bill pay-
ment (Telephone Bill, LIC & SBI Life Premium,
SBI Credit Card Bill, etc) / Mobile Top Up / M
Commerce / Online enquiry of DEMAT Ac-
counts
 Maximum Daily Limit-Self A/c- Rs 99.99 Lakhs,
3rd party A/c- Rs 50,000/-,Industry Major tie
ups for Dealer Payment Collections- Rs 15
Lakhs (Calendar Month Cap- Removed)
 SMS Mobile banking/USSD transaction- re-
stricted up to daily limit of Rs.5,000/-with a
calendar month limit of Rs.25,000/-as per RBI
directives.
 MBS on SMS/USSD platform -available on any
Mobile Handsets
 Application software is installed in user’s
Mobile. It can be downloaded from SBI’s web-
site www.sbi.co.in under link services > mo-
bile banking.
 On all platform User ID & MPIN is obtained
by sending an SMS <MBSREG> to
567676/9223440000.
 The customer is required to accept terms and
conditions of the services by sending a SMS to
9223440000 as <saccept><userID><Mpin>
 For Change Mpin <Smpin><UserId><Old
Mpin><New Mpin>
 Balance of account <Sbal><UserId><Mpin>
 Mini statement of account
<Smin><UserId><Mpin>
 Mobile Top-up <Sto-
pup><UserId><Mpin><telecom operator of

Page 13

beneficiary Mobile><Mob no of beneficiary
><Amount>
 DTH recharge <Sdth><UserId><Mpin><Service
Provider><DTH serial number><amount>
 IMPS fund transfer <IMPS><Mobile
No><MMID><amount><User
ID><MPIN><Purpose(optional field- up to 20
char-Alpha numeric)>
 Transaction processed through SMS or GPRS
 GPRS is cheaper as compared to SMS Mode
 Registration of service either through ATM,
GCC (Green Channel Counter) ,INB, SSK or at
the Branch
 Only one Account enabled through ATM
 Maximum 5 Accounts can be enabled for P
Seg. customers and only 1 accounts for non P-
Segment customers.
 End to End security using 128 bit AES encryp-
tion
 MBS over WAP – available on all mobile
phones (Java/non java) with GPRS Connectivi-
ty.
 Installation of software not required.
 Used through browsing Verisign certified se-
curedsite.
https://mobile.onlinesbi.com/sbiwap
 In addition to User ID & MPIN, WAP Login ID is
also provided
 MBS over USSD- available to all types of mo-
bile phones.
 Features- Balance Enquiry / Mini Statement
(Last 5 Transactions) / Fund Transfer to SBI
Accounts only / Mobile Top Up
 Maximum Daily Transaction per Customer for
Fund Transfer & Mobile Top up Rs 5000/-
within an overall Calendar Month Limit of Rs
25000/-
 User ID & MPIN is obtained in the same
process.
 Subscribers can Dial *595#, *99# to access
the MBS facility over USSD.
 In all cases, MPIN is required to be changed
before registering the services.
 Branches can now lodge re-
quests/issues/complaints relating to MBS
transactions at State Bank Group Service
Desk.
 MBS Complaint Redressal System- Financial
request- to be sent to GITC by e-mail
(mb.support@sbi.co.in), Non financial request
to be lodged through Service Desk.
 Quick Success Series - Technology
October 31, 2016
STATE BANK BUDDY – MOBILE WALLET
Mobile Wallet services in collaboration with Ac-
centure and MasterCard. The target customers for
State Bank Buddy include the young generation or
GenNext, who are tech savvy, those who want to
make payments with ease and on the go and also
individuals who are hesitant to expose the entire
balance on their accounts while using digital
channels for payment.
Buddy mobile wallet is available in 13 languages
on Android an iOS. After downloading, it has to be
registered using mobile number or Facebook cre-
dentials. To use the wallet, money has to be
loaded using debit cards/net banking/IMPS cre-
dentials of account with any Bank. User can ask/
send money, recharge and pay bills, and use facili-
ties like shopping, movies, flight tickets, hotels
etc. Limits of Buddy are as follows:
Max Balance- Rs. 20,000/-(NIL KYC), Rs.50,000/-
(Full KYC), Total TOP up through any channel per
txn- Rs. 20,000/-(NIL KYC), Rs.10,000/-(Full KYC),
Total Reload in a month-Rs.20,000/-(NIL KYC),
Rs.50,000/-(Full KYC)
RTGS & NEFT
 RTGS – Real Time Gross Settlement : This is a
system where the processing of funds transfer
instructions takes place at the time they are
received (real time). Also the settlement of
funds transfer instructions occurs individually
on an instruction by instruction basis (gross
settlement). RTGS is the fastest possible
interbank money transfer facility available
through secure banking channels in India
 NEFT- National Electronic Fund Transfer : This
system of fund transfer operates on a
Deferred Net Settlement basis. Fund transfer
transactions are settled in batches as opposed
to the continuous, individual settlement in
RTGS. Presently, NEFT operates in hourly
batches from 8 am to 7 pm on week days.
 Nationwide Fund transfer system maintained
by RBI for enabling transfer of funds from re-
mitter’s account in a particular bank to the
beneficiary’s account in another bank any-
where in the country.
 Banks can only originate credit transactions
 RTGS- Used for high Value remittances of Rs
2.00 Lakh & above / Transactions processed &
settled on Real Time Basis / Transactions set-

Page 14

tled individually & continuously on a transac-
tion by transaction basis / Remittance sent in
rounded off rupees.
 NEFT- For Retail Remittances/No minimum
stipulated transaction amount/Operates on
Deferred Net Settlement (DNS) basis/Settled
in batches- 6 times a day/Can be sent inclu-
sive of paisa component
 RTGS Transaction Types:
 a) R-41 (Customer to Customer)
 b) R-42 (Bank to Bank)
 RBI has decided to levy the following charges
on the member banks for all outward RTGS
transactions like Membership fee (Per
month),Transaction fee (Per month),Time va-
rying tariff (Varies on the time of settlement
at RBI).
From 01/09/2015, timings for RTGS/NEFT:
RTGS - On all working days including working Sat-
urday (Excluding Sundays / Holidays / 2nd and 4th
Saturdays)
Customer Transaction-
Open for Business : 08:00 hours
Cut-off time : 16:30 hours
Inter-Bank Transaction-
Open for Business : 08:00 hours
Cut-off time : 19:45 hours
NEFT- On all working days including working Sat-
urday (Excluding Sundays / Holidays / 2nd and 4th
Saturdays)
Customer Transaction –
Open for Business : 08:00 hours
Cut-off time : 19:00 hours
12 settlements on weekdays - at 08:00, 09:00,
10:00, 11:00, 12:00, 13:00, 14:00, 15:00, 16:00,
17:00, 18:00 and 19:00 hrs.
 Time gap for credit to customers: Beneficiary
bank to afford credit to beneficiary customer
within 30 minutes of receiving message. In
case of delay, interest to be paid at current
repo rate + 2%. (e Cir 826/2013-14)
 Time Gap for return of messages: Within 1
hour of receipt of message at MI. In case of
delay, interest to be paid at current repo +
2%. Data to be maintained for at least 10
years.
 Govt Transaction (NEW): Available (Additional
Fields are kept in ISO message but not
mapped in Converter) Challans are still a pre-
requisite for Govt. Treasuries. RBI’s extant in-
struction should continue.
 Quick Success Series - Technology
October 31, 2016
 IFSC- Indian Financial System Code- It is an
alpha numeric code allotted to all RTGS/NEFT
enabled branches. It is of 11 characters.
 In our Bank, “IFSC” is designed as
SBIN000BBBB
 IFS code is available at http://10.0.1.183/ or
“For Bankers” link at http://www.rbi.org.in
 Every Message released by a bank to RBI is
assigned a Unique Transaction Reference
(UTR)
 Inward- NIL
 State Bank Group Payment Transfer (SBGRPT)
 Applicable to fund transfer between SBI &
Associate banks
 Menu in CBS
 Inter Bank Transfers >> SBGRPT >> Create
Outgoing Message.
 Data Entry Screen is similar to the NEFT
screen
 SBGRPT transactions are closed at 4:30 PM on
weekdays and at 1:00 PM on Saturdays.
 Thereafter the net funds (receivable/payable)
are settled between the Banks through RTGS
(R 42) on the net balance available in the
Payment Settlement Accounts of the Asso-
ciate Banks as at the end of the day.
 Other terms & conditions are as applicable to
RTGS/NEFT
STATE BANK COLLECT
The generic e-Payment module ‘i-Collect’ was
launched during November, 2010 to provide a fast
and convenient mode for online collection of
funds for Corporate/Firms/Institution customers.
With addition of various payment modes it has
been converted into a multi-option payment sys-
tem (MOPS) and the name changed to ‘State Bank
Collect’. All the branches have been enabled for
providing this product. While extending the prod-
uct to firms/ corporate/institutes, branches
should ensure that there is no reputational or le-
gal risk to the Bank.
IPv6 Policy
An IPv6 policy document called “National IPv6
Deployment Roadmap” for migration from the
existing IPv4 (Internet Protocol version 4) to IPv6
(version 6) by all stakeholders in the Government
and private sector. According to this policy, all
Central and State Government ministries and de-

Page 15

partments, including PSUs, shall start using IPv6
services by March 2012, as the current version of
the Internet Protocol (IPv4) has almost run out of
addresses. IPv6 has a number of improvements
over IPv4, the primary difference being IPv6 uses
128-bit addresses as compared to the 32-bit ad-
dresses used by IPv4, and allows for more IP ad-
dresses than are available with IPv4. A directive
has, therefore, been issued by the Government to
all organizations, including banks, to bring their
websites on “dual stack” (both on IPv4 and IPv6)
on priority, latest by December 2012. The Gov-
ernment have also directed that all payment
gateways should also be IPv6-ready by December
2012.(e-cir:678/2012-13 dt:06/10/2012)
The Department of Financial Services, Ministry of
Finance, Government of India, have now directed
that:
i. Government organizations should prepare a de-
tailed transition plan, by December, 2013, for
complete transition to IPv6 (dual stack) by De-
cember, 2017, based on the network complexity
and equipment/technological life cycles.
ii. Government organizations should procure
equipment which are also IPv6 ready (Dual Stack)
and go for deployment of IPv6 ready (Dual Stack)
networks with end to end IPv6 supported applica-
tions. The equipment should be either TEC certi-
fied or IPv6 ready Logo certified. (e-Cir 753/ 2013-
14)
CASH DEPOSIT MACHINE (CDM)
Cash Deposit Machine is a 'cash-in' kiosk that al-
lows a customer to deposit loose bank notes. Our
customers who own any variant of SBI ATM-cum-
Debit Card and SME Insta Deposit Cards are al-
lowed to deposit the cash to their mapped ac-
count(s). The deposit of Cash is through a bunch
of loose notes upto a maximum of 200 pieces at
any one instance (50 pieces in case of HCL manu-
factured CDMs), which the machine scans for ge-
nuineness (quality) and counts Note piece by
piece (quantity). The customer can deposit upto a
maximum of Rs.49900/- per transaction. The
machine is enabled for acceptance of cash with
denominations of Rs.1000/-, Rs.500/- and
Rs.100/- notes only.
 Quick Success Series - Technology
October 31, 2016

GREEN CHANNEL COUNTER User type involved in the Cash module:

Green Channel Counters(GCC) an Cash Deposit Vault Custodian – User Type “50.
Machines (CDM) are innovative channels intro- Cash Officer - User Type “60
duced by the Bank towards changing the beha- Teller - User Type “1
vioural pattern of our customers from traditional Joint custodians are to ensure at close of day
way of paper based banking to card based 'Green that:
Banking' focusing on reduction in paper usage as The balance of cash as per the Vault Register =The
well as saving transaction time. Incidentally, these balance of cash as per Accountant’s Cash Drawer
initiatives save paper, time and resources. As of =The balance of cash as per Branch Cash Balance
now, four types of transactions have been Account 98903BBBBBC =The physical cash in the
enabled through GCC viz. Cash Deposits, Cash Vault.
Withdrawals, Funds Transfer, and Registration for Note: Wherever cash box system is enabled, the
Mobile Banking Service. cash kept overnight in the cash box is accounted
in BGL98912BBBBBC. In such branches, it is to be
The maximum transaction amount has been fixed ensured that the branch closing cash balance is
as Rs 40,000/-. In case of CDM, cash can be depo- equal to balance in BGL98903BBBBBC plus
sited up to Rs. 2,00,000/- at any one instance. BGL98912BBBBBC.
Customers can use the GCC and CDM without
waiting in queues and without taking the tokens. The Bank has launched “State Bank Business Debit
They may simply walk to the GCC counter / CDMs, Card” in two variants, “State Bank Pride” and
swipe their Debit cards and execute the transac- “State Bank Premium” on MasterCard and Visa
tion also. platforms on the occasion of Bank Day’2012.(e-
Normal branch banking transactions take 4 to 5 cir:320/2012-13 dt:04/07/2012)
minutes for completion, a transaction routed
through the GCC / CDM takes less than a minute. Features Pride Premium
GCC and CDM are endeavors to offer ease of Cash Deposit-per Rs. 2,00,000/- Rs. 2,00,000/-
transactions to all customers especially senior citi- CDM txn limit
zens. Moreover, as these facilities do not require / Cash Deposit-per Rs. 40,000 Rs. 40,000
generate any vouchers. There is no pressure on GCC txn limit
the operating staff at the branches for VVR check- Daily limits- Cash Rs. 1,00,000 Rs. 2,00,000
ing. (e-cir:525/2012-13 dt:30/08/2012) withdrawal
Daily limit- pur- Rs. 2,00,000 Rs. 5,00,000
Standalone Functionality- Funds Transfer and chases
Mobile Registration Transactions through this Personal Accident Rs. 2,00,000 Rs. 5,00,000
model are pass through i.e. they do not need ap- Insurance
proval of SWO. Cash Transactions through GCC Issuance Fees NIL NIL
machine configured in this fashion will generate a Annual card fees Rs. 300 Rs. 300
unique reference number for the customer while Eligibility All non per- CA with bal-
adding the transaction for approval in a separate sonal current ances >= Rs.
queue that is accessible to all SWOs in the branch. account hold- 5,00,000
Any SWO of the branch can view and approve the ers
transaction on receipt of the reference number
slip from the customer.

STATE BANK SME INSTA DEPOSIT CARD (SMEIDC)
ENABLED FOR CASH DEPOSIT THROUGH GCC
AND CDM
In addition to cash deposit through Cash Deposit
Machines, this card has been now enabled for
cash deposit through Green Channel Counters
also.(e-cir:519/2012-13 dt:28/08/2012)
it has since been enabled in Core Banking to issue
Business Debit Card to jointly operated Current
Accounts of Partnerships or Companies subject to
meticulous compliance of the certain clauses de-
tailed in e-cir:729/2013-14 dt.30th Nov’2013
GREEN REMIT CARD


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
 Quick Success Series - Technology
October 31, 2016
A non personal card to facilitate non home cash
remitters. May be used at GCC counters and
CDMs. Issuance on the basis of one photo and an
ID proof. Any be issued to customer/ non cus-
tomer. Issuing charge- Rs20/-. Maximum Rs
25000/- per transaction and Rs 1,00,000/- per
month may be remitted.
STATE BANK SMART PAY OUT CARD
Prepaid Card for KYC compliant employees of cor-
porate and individuals, Min Load-100/-, Max load-
10,000/-Validity- 10 years, reloadable with a cap
of Rs 10,000/- per load, Rs 25,000/- max in a
month. May be used for Cash Withdrawal, POS tr
and Merchant Tr.
XPRESS COLLECT CARD
Similar to GRC, a simple, non personalized, non
pin based magstripe card for cash deposit only,
works on GCC and CDM for entities (other than
individual).
Deposit Limit- For cardholders with proper PAN
details- Rs. 40,000/- per transaction on GCC, Rs.
49,900/- per transaction on CDM, No monthly
limit
For cardholders without proper PAN details- Rs.
49,900/- per day on GCC, Rs. 49,900/- per day on
CDM, No monthly limit
Card Issuance Fee: Rs. 30/- per card
Transaction Charges through GCC: Rs. 2/- per Rs.
1000/-, minimum Rs. 50/- (CBS charges)
Transaction Charges through CDM: Rs. 30/- flat
Deposited money will be credited to Company’s
account instantaneously.
SBI QUICK
MISSED CALL BANKING-a new service from the
Bank which involves Banking by giving a Missed
Call or sending an SMS with pre-defined keywords
to pre-defined mobile numbers. Available for
SB/CA/Overdraft/Cash-credit accounts.
Facilities :
i) Balance Inquiry of registered account
ii) Mini Statement of registered account
iii) Blocking of ATM Card
iv) Car/Home Loan features enquiry
Registration- SMS, ‘REG(space)account number'
to 09223488888. e.g. REG 12345678901

Page 17

Balance Enquiry: give a Missed Call or send an
SMS ‘BAL' to 09223766666
Mini Statement: give a Missed Call or send an
SMS ‘MSTMT' to 09223866666
Blocking ATM Card: SMS ‘BLOCK(space)XXXX' to
567676 (XXXX represents last 4 digit of the card
number).
Loan Enquiry : SMS ‘HOME' or ‘CAR' to
09223588888
De-Registration : SMS ‘DREG(space) Account
Number' to 09223488888
STATE BANK mCASH
A facility ‘State Bank mCASH’ for enabling cus-
tomers to send small value remittances to benefi-
ciaries via contacts i.e. mobile number and email
ID has been implemented by the bank customers
can send through Internet Banking, small value
remittances upto Rs.1,101/- per transaction with
per day limit of Rs.2,202/- and monthly limit of
Rs.5,101/- to a third party without registration of
beneficiary by entering or populating from con-
tact list, the mobile number or email-ID of the
beneficiary.
State Bank Virtual Card
State Bank Virtual Card, also known as Electronic
Card or e-Card, is a prepaid card, in association
with Visa, which can be created using the State
Bank internet banking facility for ecommerce (on-
line) transactions only. It provides an easy and
secure way of transacting online without provid-
ing the Primary Card/ Account information to the
merchant. Available to all INB customers with
transaction rights.
Virtual Cards can be used at any merchant loca-
tion accepting MasterCard / Visa Cards online,
without any difference from a regular plastic Card.
Card Type : Visa,
Eligibility : All INB Customers with Transaction
Rights having PAN registered with the Bank can
avail this facility.
Min/Max amount of issue : Rs100/- and Rs
50,000/-,
Frequency of usage (Single / Multi) : Single trans-
action
Card Validity : As soon as the transaction is com-
pleted,Or If the card is cancelled.
Or Card is not used for 48 hours after creation.
(Whichever is earlier.)
 Quick Success Series - Technology
October 31, 2016
Domestic use, acceptable at any merchant outlet
that has facility for Online Purchase, No charge,
Number of cards per customer per day- No limit.
 MISC
 Central Data Centre (CDC) is located at Bela-
pur, Navi Mumbai
 Disaster Recovery Site is located at Chennai
 Front end software used in CBS- Bancslink
(Current Version- 2.9.5)
 Posting of Transaction at CDC- Bancs 24 soft-
ware- Procured from FNS Australia
 System Integrator- TCS
 FNS Taken Over by TCS
 Corporate General Ledger (CGL) - Finance one
– Vendor- Comlink USA
 Trade Finance Software- CS Eximbills – Vendor
– China Systems, Taiwan
 Overseas Branches- Finacle- Vendor- Infosys
 OFSA- Oracle Financial Services Application
Suite- Provides a platform for Asset Liability
Management
 Treasury Management Solution- Procured
from Reuters/Unisys
 our bank has entered into an agreement with
Thomas Cook India Ltd (TCIL) a Principal Agent
for MoneyGram. Under the arrangement, our
Branches will payout inward remittances to
the public, for the funds remitted from
abroad using MoneyGram services. This
amount will be reimbursed by the Thomas
Cook, a principal agent of MoneyGram. Our
Bank is already offering similar services under
Western Union Money Transfer; hence the
operational guidelines are similar.(e-
cir:516/2013-14)
MOTO TRANSACTIONS (e-cir 1197 dt 30/12/15)
A MOTO transaction is such transaction where a
cardholder / card need not be physically present
at the time of transaction on PoS terminal. Essen-
tially, segregating such transactions as Card-Not-
Present (CNP).
b) The merchant may or may not take explicit
consent (such as signature, card imprint etc) from
a cardholder in manual key entry transactions.
Therefore, in majority of cases, an issuer has an
automatic chargeback right for card-not-present

Page 18

transactions in absence of cardholder’s signature
or card imprint to prove cardholder’s approval of
the transaction.
c) The merchant may forcefully obtain authoriza-
tion for transaction by keying in wrong card num-
bers.
State Bank Debit Cards : sbiINTOUCH Tap & Go
Debit Card (The contactless Debit Card) e-cir
1341 dt 02/02/2016)
Bank launched sbiINTOUCH Tap & Go Debit Card
in the month of May 2015. This card has a con-
tactless feature which empowers a customer to
make contactless payments at all merchant loca-
tions where contactless payments are accepted.
A customer can make electronic payments by just
waving the contactless card near the PoS terminal
without any need for dipping or swiping the Card
on PoS, thereby the Debit card will not leave the
hands of the customer.
These cards work on the Near Field Communica-
tion (NFC) technology and are secure with EMV
contactless standard. As contactless transactions
require significantly less time compared to tradi-
tional card based transactions, these cards en-
hances the customer convenience, while at the
same time enabling the merchants to process
payments faster.
The initiative has been launched by the Bank with
a view to boost small ticket transactions i.e.
transactions at supermarkets, quick service res-
taurants and fuel outlets.
Salient features of this Card are as under:
I. No PIN required if contactless transaction is up
to Rs.2000/- per transaction. However, for trans-
actions above Rs.2000/- , PIN will be required and
immediately prompted on the terminals.
II. The Card will work as a regular CHIP based De-
bit Card and can be used for any contact payment
at PoS or for online transactions in the same
manner as the existing Debit cards.
III. Per day limit for all Contactless transactions is
Rs.10, 000/-.
 Quick Success Series - Technology
October 31, 2016
Enterprise Wide Loyalty Programme (EWLP) -
State Bank Rewardz (e-cir 1437 dt 23/02/2016)
With a view to encourage our customers to use
more digital channels and avail of more products
from us, the scope of the programme has been
enhanced significantly and the Debit Card Loyalty
Programme (Freedom Rewards) has been up-
graded into Enterprise Wide Loyalty Programme
named as ‘State Bank Rewardz’ for the State Bank
Group. Under the scheme,in addition to use of
Debit Card, Reward Points are now being given to
the customers for use of various bank products
and for their desired behaviours, which are bene-
ficial for them as well as for the Bank, such as use
of internet banking, mobile banking, cross selling,
keeping CASA balances etc.,
The customers have a very wide variety of options
to choose from, for redemption of points such as
SBI Gift Card, mobile recharge, DTH recharge,
movie tickets, various electronic goods, apparel,
other merchandise, bus tickets, flight tickets etc. If
the customer wishes to select an item with value
more than the value of his accumulated points,
this is also possible: he can make the payment
partially by redeeming his loyalty points and by
paying remaining amount by his Debit Card.
The notional value of one Loyalty point is equiva-
lent to Re. 0.25 (twenty five paise). Further, these
Loyalty Points expire after 36 month from the
date of accrual.
PREPAID CARDS: COMPLAINT RESOLUTION ME-
CHANISM (e-cir 1481 dt 03/03/2016)
The Bank has introduced Prepaid Category in Ser-
vice Desk w.e.f. 06th August’ 2015. Hence all the
complaints received at Branch are compulsorily to
be routed through Service Desk. The customers
may continue to lodge the request through
CMS/emails.
Prepaid card project related complaints/request
are to be lodged under the category SBG Prepaid
Card Project. The following sub-categories are
created under this category.
• Achiever Card Activation
• Application Related Issues
• Card Dispatch Status

Page 19

• Card Load/Re load Status
• Disputed/Unsettled Transaction
• Duplicate PIN (Staff Achiever Card Only)
• File upload Issue (Screen Shot Mandatory)
• FTC Related Issue (Screen Shot Mandatory)
• Replacement Card (staff Achievers Card Only)
• Single Sign-on Login Issue
(STANDARD OPERATING PROCESS FOR CUSTOM-
ER COMPLAINTS RELATING TO RUPEE PREPAID
CARDS AND FOREIGN TRAVEL CARDS ON VISA
PLATFORM has been given in e-cir no 326 dt
08/06/2016)
ATM-CUM-DEBIT CARD
GENERATION OF GREEN PIN (e-cir 321 dt
08/06/2016)
Revised Instructions:
Card PIN/REPIN can be generated by the card-
holder without visiting the branch using SMS, IVRS
or INB.
The Green Pin can only be used for performing a
PIN change transaction.
Such a transaction must be performed only at a
State Bank Group (SBG) ATM. Financial and non-
financial transactions can be done only after
changing the PIN at any of the SBG ATMs.
(A) PIN Generation- Through SMS
Customer has to SEND SMS as per below format
to 567676 from his Registered Mobile Number
(RMN): PIN CCCC AAAA
Where, CCCC is last four digits of card number and
AAAA is last four digits of account number
One Time PIN (OTP) will be sent to customer’s
registered mobile number. OTP remains valid for
2 days and customer must perform PIN change
transaction on any STATE BANK GROUP ATM
(Banking> PIN Change) during this period.
Example: A card holder having a card ending with
xxxx1234 and account ending with xxxx9876
should send SMS as: PIN 1234 9876
(B) PIN Generation-Through IVRS
Customer to call Contact Centre from registered
mobile number. Customer has to enter card num-
 Quick Success Series - Technology
October 31, 2016
ber and account number. One Time PIN (OTP) will
be sent to registered mobile (RMN). OTP is valid
for 2 days and cardholder must change the PIN on
any STATE BANK GROUP ATM (Banking> PIN
Change) during the validity period.
(C) PIN Generation-Through INB
Customer has to login into https://onlinesbi.com/
Go to e-Services ->ATM card services -> ATM PIN
Generation.
Using OTP or profile password, get authenticated
Select the account
Select the card
Enter first two digits of his desired PIN
Enter first two digits created by him followed by
two digits sent to him through SMS
(D) PIN Generation- Through SBI ATM Machines
Visit any SBI ATM
Click on ‘PIN generation option’ which can be
found at bottom right corner of the ATM screen
Enter your Account number
Enter your registered mobile number
Confirm the Mobile number again
OTP will be sent on your registered mobile num-
ber. Use the OTP to change the ATM card PIN
within 24 hours.
PREPAID CARDS; REVISED BREAKAGE POLICY (e-
cir 331 dt 10/06/2016)
Revision in the appropriation of balances in ex-
pired rupee prepaid cards with effect from
31.03.2016.
After expiry of prepaid cards (all variants) the un-
utilized balances up to Rs.500/- shall lapse to the
Bank and Card will be closed.
In case balance in the rupee prepaid cards is
above Rs.500/-, after expiry, an annual mainten-
ance charge of Rs.100/- will be recovered each
year from the unused balance lying on the expired
cards.
In case a customer claims reimbursement after
validity of the Card has expired the balance less
Rs.100/- per year will be refunded to the purchas-
er in case of Gift Cards and to the beneficiary

Page 20

Cardholder in case of other prepaid cards on de-
mand.
CUSTOMER ONE VIEW (COV) e-cir 341 dt
14/06/2016.
Integrated Data Strategy, Processing and Man-
agement (IDSPM, erstwhile EDWP) department
has developed Customer One View (COV) Data
Mart, after consolidating the data sourced from
Bank’s CBS and Subsidiaries i.e. SBI Credit Card,
SBI Demat, SBI Mutual Fund, SBI Life, SBI General
and SBI Life Insurance. In COV Data Mart, custom-
er’s portfolio summary including his/her exposure
in above mentioned business line is prepared and
it is augmented with derived information like Cus-
tomer profitability, Customer Risk Grade, Cus-
tomer Score are stamped to make customer
summary more rich and informative.
INSTANT MONEY TRANSFER (CARD LESS WITH-
DRAWAL FACILITY FROM ATMs) (e-cir 525 dt
20/07/2016)
SALIENT FEATURES
A customer can instantly transfer rupee funds to
anybody anywhere anytime in India.
Only the beneficiary’s mobile number, name and
address with PIN code are required to be known
to the sender.
A one-time mapping of the sender with the bene-
ficiary is carried out by the system. Hence, the
sender need not provide the name and address
for recurring payments.
The beneficiary can withdraw money from State
Bank Group ATMs to begin with, without using a
Debit Card.
An IMT once created cannot be cancelled.
The beneficiary has to withdraw the whole
amount in a single transaction i.e. no partial with-
drawals are allowed, at present.
THRESHOLD LIMITS
 Quick Success Series - Technology
October 31, 2016
There is a minimum transaction limit of Rs. 100/-
and multiples of Rs. 100/- thereafter. A maximum
of Rs. 10,000 per transaction subject to the
monthly cap of Rs. 25,000 per month per benefi-
ciary as prescribed by RBI will be applied automat-
ically by the system. The maximum amount per
sender in a calendar month is Rs.50,000/- and
there is a maximum number of 10 beneficiary per
sender.
SERVICE CHARGES
The sender will be charged a nominal fee of Rs.
25/- (Rupees Twenty five only) inclusive of Service
Tax per transaction at source. There will be no
charges at the beneficiary end.
VALIDITY OF THE TRANSACTION
The beneficiary has T+2 days to withdraw the IMT
else the money will automatically be refunded
back to the sender’s account. The Service Charge
will not be refunded.
Internet Banking (INB) Facility for Illiterate Cus-
tomers (e-cir 544 dt 25/07/2016)
It is clarified that illiterate customers should not
be provided Bank’s Internet Banking facility. While
necessary development is being made in the CBS
to restrict issuance of Net Banking facility to illite-
rate customers, till such time the functionality is
developed, operating functionaries are advised to
ensure that INB is not provided to these custom-
ers. They are also advised to select the option “99
: Illiterate” invariably in the field ‘Education Code’
while opening/amending CIF/Accounts of illiterate
customers, as this field will be taken into account
for restricting issuance of INB to this category of
customers.
CASH DEPOSIT MACHINES/RECYCLERs
MODIFICATION: INCREASE IN PER TRANSACTION
LIMIT TO RS. 2 LACS (e-cir 706 & 707 dt
30/08/2016)
Our CDMs are capable of accepting up to 200
notes per transaction i.e. Rs. 2 lac per transaction
if a customer deposits Rs. 1000 denomination
notes. However, our CDMs have a per transaction
limit of Rs. 49,900/-. In order to further decongest

Page 21

the branches, it has been decided to increase the
cash deposit limit to Rs. 2 lac per transactions in
the following type of cards as under:
Type of Card Present Limit Proposed limit
All Debit Cards Rs. 49,900/- Rs. 2 lac per
per txn txn
SME Insta De- Rs. 49,900/-
posit per txn
Cards
Rationale : a) These cards are issued to the cus-
tomer themselves. b) The cards are linked only to
the customer’s accounts held with the Bank. c)
The txns are authenticated using a PIN.
3. However, the present per transaction limit of
Rs.49,900/- in Cardless/Debit Card (third party
account) and Rs.25,000/- in GRC linked accounts
will remain unchanged. The increase in the trans-
action limit will enable faster transaction
processing, more transactions and reduce queues
at CDMs especially at sites attracting our SME Ins-
ta Deposit and Business Debit Card customers.
CASH DEPOSIT MACHINES/RECYCLERs
ENHANCEMENT OF FACILITY TO DEPOSIT IN PPF,
RD& LOAN ACCOUNTS ((e-cir 707 dt 30/08/2016)
It has been decided to extend the facility of cash
deposits in Loan, PPF and Recurring Deposit ac-
counts also through CDMs/Recyclers.
CONTACT CENTRE
 Handled by Intelenet Global services since
March 2013 on a fully outsourced plat-
form answering 3272,769 calls per
month.(150842 Phone banking calls).
 Contact Center works as 4th Alternate
Channel apart from (ATM/INB/MBS) ser-
vice customer
 Operations from Vadodara, Bangalore,
Agra and Kolkata, which are linked by tel-
ecom leased lines with capabilities to re-
route overflow of calls to any of the Cen-
ters
 Currently operating at a capacity of 1250
seats and 2833 staff
 Offers 24X7 “Helpline” services for
Phone Banking in 12 languages ( Hindi,
English, Assamese, Bengali, Gujarati, Ma-
 Quick Success Series - Technology
October 31, 2016
rathi, Odiya, Kannada, Tamil, Telugu, Ma-
layalam & Punjabi )
 Contact center helps in reducing footfalls
from 25 to 30 percent on daily basis, per
day, per branch
 Agents resolve Customer queries with the
help of scripts provided by the BUs and
applications hosted at GITC
Eligibility : All personnel segment (Saving and
Current ) accounts are eligible for Phone Banking.
(Joint accounts with E or S or (b) Anyone or survi-
vors mode of operation are also eligible.)
 Mobile Number registration is necessary to
avail Phone Banking Services.
 Ineligible Accounts: The following account
holders are NOT ELIGIBLE for Tele-banking fa-
cility:
i) Minor Accounts
ii) Joint Accounts with F or S, L or S or B or S
iii) Blocked Account
iv) Inoperative Account (Allowed for ‘Stop
Payment of Cheque/s functionality)
v) Deaf and Dumb
vi) Illiterate
vii) Blind
viii) Hindu Undivided Family account. Howev-
er, Karta of HUF can avail this facility by
providing an indemnity.
Service offered :
i) Account Information Services
ii) Stop Payment of Cheque/s
iii) Transfer of Funds(within SBI)
iv) Issue of Statements of account
v) Issuance of Interest Certificates
vi) Issuance of Fixed Deposit Receipts
Account information Services
i) Customer can get account information by
calling our toll free number-1800-11-22-
11/1800-425-3800 and Toll Number 080-
26599990
ii) Customer can listen to last 5 transac-
tion/can get SMS of last 5 transaction
through IVR through Phone Banking
iii) Customer can get MOD account/Loan Ac-
count information through Customer Ser-
vice Representative ,
Stop Payment of Cheque/s
i) Through Phone Banking Services Cus-
tomer can Stop the payment of cheque
through Contact Centre.

Page 22

ii) Customer can stop with Single Cheque
and multiple cheque through IVR and
through CSR respectively
iii) Customer can stop maximum 3 series of
cheque through CSR.
iv) Customer need to call with cheque num-
bers to stop cheque payment.
Transfer of Funds
i) Through Phone Banking Services Cus-
tomer can transfer funds through Contact
Centre within SBI.
ii) Customer need to add beneficiary as
own accounts or third party ac-
counts(through IVR)
iii) Beneficiary account will be activated after
24 hours
iv) For a transaction of more then Rs .5000,
OTP is required
v) OTP can be generated through IVR. Cus-
tomer need to generate OTP before trans-
ferring Funds
vi) Minimum amount that can transferred is
Rs . 100 and other details are
Own Account Third Party a/c
Daily 25000 10000
Monthly No limit 50000
vii) Timings for transferring funds through
Contact center using Phone banking is
08:00 am to 08:00 PM only.
viii) Transferred amount is credited instantly
to beneficiary account.
Issue of Statements of account
i) Through Phone Banking Services Cus-
tomer can avail Statement of Accounts at
Registered Email ID or at Registered ad-
dress
ii) Customer can avail statement from
IVR(recorded Voice System) or through
CSR
iii) Customer can obtain Account statement
from April 2012 on wards
iv) Customer at a time can give Statement
request for the period of 6 months
through CSR or through IVR
v) Statement through Email will be free of
cost to our customer
vi) Charges for statement through Post is Rs
44+service Tax
vii) Statement through Email will reach cus-
tomer within 2 Working days and within
 Quick Success Series - Technology
October 31, 2016
7 working days on registered address
through Post
Issuance of Interest Certificates
i) Through Phone Banking Services Cus-
tomer can avail interest certificate for
Deposit and Loan Accounts as below
 Home Loan Interest Certificate
 Educational Loan Interest Certifi-
cate
 Deposit Interest Certificate
ii) Customer can avail Interest Certificate
through IVR(recorded Voice System) or
through CSR
iii) Statement through Email will be free of
cost to our customer and will be delivered
instantly
iv) Charges for statement through Post is Rs
44+service Tax
v) Interest Certificate will reach customer
through post within 7 working days on
registered address
Issuance of Fixed Deposit Receipts
i) Through Phone Banking Services Cus-
tomer can create Term Deposits
ii) Customer can avail this facility only
through CSR
iii) This facility is only available between
08:00AM to 08:00PM
iv) Mode of Operation will be Single in all the
cases
PRODUCTS LAUNCHED ON BANK’S DAY 2016
 SBI DIGITAL VILLAGE :
A radical initiative by SBI TO CREATE A CASH-
LESS ECOSYSTEM in each village and provide
access to government supported digital initia-
tives in education, health, social security and
agri-scheme, subsidies and benefits.
 SBI MINGLE :
Convenience of banking on Facebook and
twitter through an APP based interface. Do all
your transactions anytime, anywhere just by
logging in to your social media account.
 SBI BUDDY :
Best-in-market-wallet with a unique blend of
payment and banking service. State Bank
Buddy has compresensive collaborations with
merchant partners for shopping and payment
experience.
 SBI SCRIBE :

Page 23

A unique , first-of-its-kind service. Just fill up
the account opening form on the digital board
at the bank and open your account in a jiffy.
Walk-in with your KYC documents, walk-out
with an account number.
 SBI Digi Voucher :
A green initiative of SBI that gives you online
access to various challans, transactions slips &
forms through an APP. It saves valuable time
by allowing you to pre-complete transaction
forms online to get direct access to the teller
counter.
 SBI Video Statement :
A video statement of your account with
spends analysis and dashboards. A statement
that comes with a friendly audio narration for
the visually challenged.
 SBI Smart watch :
Do banking through your state bank smart
watch. A unique banking experience that is in
tune with the technology of future.
SBI InCube
A specialised branch to understand and address
the banking needs for the start-up business and to
help them realize their vision through banking
support.
The will provide you the best suitable solutions in
banking transactions and investments on a robust
tech platform customized to your business model.
Features:
Experienced relationship managers, who know
the exact solutions for your banking needs,
•Comprehensive, competitively priced financial
products and services,
•Integrated online and mobile banking solutions
to save time & money,
•Curated collection of financial and operation
tools,
•Solutions that streamline receivables and
payables and optimise cash conversion cycle,
•Limited advisory on investments, taxation and
forex transactionsthat help optimise liquidity,
capital preservation and return.
 Quick Success Series - Technology
October 31, 2016

Software Used in Core Banking

B@ncsLink : Front-end software used by branches

B@ncs24 : Transaction posting software that is
available at CDC. It also provides inter branch
transaction capability.
Finance One : Corporate General Ledger software
CS-EximBills : Trade Finance software
LOS (PBBU/ SME/ Agri) : Loan Origination Soft-
ware for sourcing processing and sanction of
loans of various segments.
Internet Explorer : It is the Browser that is used
by end-users to connect to B@ncsLink and
B@ncs24 for working in Core Banking environ-
ment


Page 24

 [Type the document title] SUCCESS SERIES, an initiative of SBLC
QUICK
Deoghar to facilitate the preparation of
promotion seeking personnel of our Bank,
appears to have succeeded in its objective to a
large extent, as the readers are still
approaching us for its revision/updation
despite availability of plenty of other study
Quick materials.

Success We would not have been able to sustain this

unique effort of ours, without the active
Series support and continuous encouragement of our
DGM cum Circle Development officer
Sri Bijayananda Padhi. We are deeply indebted
to him for his co-operation and guidance.

Sri Rakesh Roshan, Chief Manager (Training) Sri

Kumar Priyank, Chief Manager (Training) ,Sri
Sanjay Kumar Sharma,Manager(Training),and
Sri Jitendra Kumar Arun Manager (Training) at
this SBLC have owned up this project and have
taken pains to keep it relevant to the users by
updating & improving it at half yearly interval.

Though every care has been taken while

updating the contents, we request our
readers to point out any lapses at the earliest.
Needless to mention this book is not a
Liability & Transaction substitute of circular instructions issued by the
Bank from time to time. For detailed guidelines
Products please refer to Bank’s latest circulars. Soft
copy of this edition is available on our
ftp://10.151.51.33 in QSS folder and on SBI
TIMES>PATNA CIRCLE>SBLC Deoghar site.
Team SBLC Deoghar is humbled by the
response and recognition, it is receiving from
the readers within and beyond the circle. We
wish the readers grand success in their
endeavours.
Abhishek Kumar Sharma
Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895 Fax - 06432-231810
e-mail: agmstc.deoghar@sbi.co.in

Updated upto
Updated by :Sanjay Kumar Sharma 31thOctober 2016
Manager Training,
SBLC Deoghar
Mobile- 9934435855 Page 1
email- sanjay.kr.sharma@sbi.co.in
 Quick Success Series Liability & Transaction Products
October 31, 2016
SAVINGS BANK
(Master cir.no-391/2016-17dated22 June,2016)
 Savings Account may be opened by
i) Any individual in his sole name
ii) By two or more individuals jointly with
survivorship benefits (like E or S, Both or
Survivor etc) or to be jointly operated also
 Removal of charges for non maintenance
of minimum balance in Savings Bank
Accounts of Personal Segment customers:
As a major step toward customer
retention and acquisition, it has been
decided that all Personal Segment Savings
Bank account holders across all our
branches will now be benefitted from
waiver of service charge for non
maintenance of minimum balance
stipulation (e-Circular no.1025/2011-12
dated 22.02.2012).
 If at any time any one of the account
holders issue stop payment of operation
by the other joint account holders then
account can be operated in future only
Jointly by all the account holders
 Minimum Cash Deposit permitted
Rs 10/-
 Maximum Cash Deposit permitted
No restriction
 Minimum cash withdrawal permitted
Rs 50/-
 Maximum cash withdrawal permitted
No restriction
 Number of Credits permitted
No restriction
 Personal Accident Insurance available.
 Maximum number of debit entries
permitted without any charge
30 per half year excluding SBI alternate
channel transactions. Transactions
through other bank’s ATM will be
included
 Can third party cheques endorsed in
favour of account holder be deposited
No
 In non cheque operated A/c, withdrawal
form should be invariably accompanied
by Passbook
 Payment through withdrawal form can be
made to Self only
 Any exception
When an account holder is unable to
attend personally for withdrawing money,
Page 2
he may send his representative along with
the pass book and a letter of authority in
the prescribed format
 W.e.f. 1st Apr 2010, Interest in SB A/c are
being calculated on daily product basis
Interest is paid in the month of June
 September, December and March every
year in SB accounts.
 Can an account be opened in the name
of Minor
Yes, either (a) singly or jointly with her /
his guardian only or
b) by guardian alone on behalf of her/ his
minor ward
 Conditions for opening an account in sole
name of minor
Minors who can adhere to uniform
signature, who understand nature of
Banking Transaction and are not less than
ten years old.
 SB –Minor Accounts in the sole name or
Minor- Minor Becoming Major
The minor has to complete the below
mentioned formalities on attainment of
majority:
a) Confirm the balance in his/her
account.
b) Submit fresh specimen signature and
photograph.
c) Provide a declaration with the proof
of majority for activation of the
account as a major account.
d) Obtain the copy of PAN Card or Form
60/61 (whichever is applicable)
All Branches can monitor such
accounts i.e. accounts where minors
have attained majority from the daily
report (depd0622.txt)
e-Circular no.1346/2013-14 dated
11.03.2014
 Can an account be opened in the name
of Illiterate person
Yes, An illiterate person may open an
ordinary Savings Bank account in his sole
name or jointly with other person(s).
 Can Illiterate person open a cheque
operated A/c
Where one of the depositors is literate a
cheque-operated joint account payable to
‘any one, survivors or survivor’ or ‘either
or survivor’, etc., may be opened in which
 Quick Success Series Liability & Transaction Products
October 31, 2016
event only the literate depositor will be
allowed to withdraw moneys from the
account by means of cheques
 Extra Precaution to be observed
in case of Account closure by Illiterate
Person. The thumb impression of the
depositor on the Savings Bank account
closing form will, in all cases, be
witnessed by an independent witness
acceptable to the Bank. Also, the passing
official will explain to the depositor in the
presence of the witness that no more
money is due to the depositor from the
Bank.
 Can an account be opened in the name
of a person not knowing either the
Regional language or English or Hindi
Yes, on the same terms & conditions as
for an illiterate person
 Extra caution to be observed in opening
account in the name of person who are
deaf/dumb and also illiterate
In such cases preferably accounts should
be opened to be operated jointly by the
deaf dumb illiterate along with his close
blood relations
 Revised Guidelines for self operated
cheque facility to visually impaired person
i) Third party cash payment of self drawn
cheques by visually impaired persons is
now permitted
ii) Letter of undertaking for “Self
Operated Cheque Facility to Visually
Impaired/Blind person” is dispensed with
and shall not be obtained henceforth
iii) If a visually impaired depositor is able
to sign the cheques consistently, affixing
her/his thumb impression at the time of
issuing cheque is not required
iv) The cheque leaves hitherto required to
be branded as “CARE – Depositor Visually
Impaired”, shall now be stopped
v)However, if the depositor(s) feel(s) that
her/his/their signature may not exhibit
consistency due to the impairment / some
other infirmity and do/does not mind
branding “CARE – Depositor Visually
Impaired” stamp, in order to avoid the
‘cheque being returned unpaid’ on
account of ‘difference in the signature’, in
such cases a written request for branding
the cheques may be obtained, cheques
Page 3
shall be branded and thumb impression
shall also be obtained and witnessed by
the Bank Official under his signature and
specimen signature number, along with
the Bank stamp
 SB Account is treated as inoperative if
No transactions for a period of 2 years
(For this purpose both the type of
transactions i.e. debit as well as credit
transactions, induced at the instance of
customers will be considered. However,
the service charges levied or interest
credited by the Bank will not be
considered)
 Provision for treating the account as
dormant after one year removed
(Rationale: i) It was an extra precaution
taken by the Bank for better risk
management. ii) RBI do not make any
differentiation between dormant and
inoperative account ii) Thus, to align with
RBI Guidelines and to have uniformity
across the banks, the instruction has been
revised)
 Annual review should be carried out of
accounts with the balance of Rs. 5000/=
and more and no operations for more
than a year
i) Branches may inform the account
holders in writing on the prescribed
format, to ascertain the reason for non-
operation in the account.
ii) If, it is due to shifting of the locality,
they may be asked to provide details of
their new accounts to which the balance
in the existing account could be
transferred.
 Steps to be taken for ‘Inoperative
Accounts’, with balance of Rs 25000/=
and more
i) If the letter is returned undelivered,
they may immediately be put on enquiry
to find out the whereabouts of customers
or their legal heirs in case of deceased
account.
ii) In case, the whereabouts of the
customers are not traceable, person(s)
who has/have introduced the account
holder should be contacted. Contacting
the employer or any other person whose
 Quick Success Series Liability & Transaction Products
October 31, 2016
details are available with the Bank may
also be considered.
iii) The account holder may also be
contacted telephonically if the
telephone/cell number is available. In
case of non-resident accounts, account
holders may also be contacted through
email and confirmations be obtained
 Can overdraft be granted in SB A/c
Yes, to good customers only to an extent
of Rs 1000/- for not more than three
occasions in a year. OD to be adjusted
within one month
 A/c to be debited for this purpose
‘Overdrafts in Savings Bank Account’- it is
a current account
 No charge to be levied for updation of
passbook at non home branches. (e-
Circular no.258/2011-12 dated
02.07.2011)
 In case of joint accounts operated by
"Former or Survivor", the ATM card can
be issued only to the "former". The
request for issuing an ATM card must
 be signed by all the account holders in
such cases.(ATM Manual 2016 Para 10.9)
 Government departments / bodies /
agencies in respect of grants/ subsidies
released for implementation of various
programmes / Schemes sponsored by
Central Government /State Governments
subject to production of an authorization
from the respective Central / State
Government departments can open
savings bank account”.(e-cir167/16-17dtd
03.05.16)
 Basic Savings Bank/Small Account : With
a view to doing away with the stigma
associated with the nomenclature ‘no-
frills’ accounts, RBI has advised the banks
to offer a ‘Basic Savings Bank Deposit
Account’/ ‘Small Account’, which will offer
certain minimum common facilities to all
their customers without levying charge.
No Frills Account has since been
withdrawn. All such SB account should be
opened either Basic Savings Bank or As
Small Accounts.
BASIC SAVINGS BANK DEPOSIT ACCOUNT
(Fully KYC Compliant)
Page 4
 Purpose: Financial Inclusion
 Salient Features: No minimum balance
requirement. ATM-cum-Debit card will be
issued free of cost. No annual
maintenance fee will be levied.
Transferability of accounts. Max 4
withdrawals in a month including ATM
withdrawals. INB, MBS & Kiosk Banking is
available. Interest calculated on daily
basis.
 MCC-Rs.3/ per cheque leaf for all Savings
Bank accounts having QAB as on previous
quarter end below Rs.25000/-.(First 20
leaves free). Rs.2/- per cheque leaf for
accounts having QAB25000/- and above
as on previous quarter end. (First 50
leaves free)
 Restrictions: Max 4 withdrawals in a
month, including ATM withdrawals at
own and other Bank’s ATMs. Holder of
Basic Savings Bank Account will not be
eligible to open any other Savings Bank
Account. In case, he/she already has an
account, the same will have to be closed
within a month of opening a Basic Savings
Bank Deposit Account. Only basic ATM-
cum-debit card will be issued. However,
the services like debit transactions
beyond 4 in a month will be allowed after
recovery of stipulated service charges.
Variants of ATM cards can be issued on
payment of stipulated charges.
SMALL ACCOUNTS (Liberalised KYC)
 Purpose: Financial Inclusion. To facilitate
opening of accounts for individuals who
do not have officially valid KYC
documents.
 Salient features: No minimum balance
required. Liberalised KYC requirement.
Earn interest at 4% p.a. ATM-cum-Debit
card will be issued free of cost. Maximum
four withdrawals including ATM
withdrawals in a month. Interest
calculated on a daily basis.
 Restrictions: Aggregate of all credits in a
FY does not exceed Rs.1.00 lac. Aggregate
of all withdrawals and transfers in a
month should not exceed Rs.10000/-.
Balance in this Account at any point
should not exceed Rs.50000/-. Foreign
Remittances are not allowed to be
 Quick Success Series Liability & Transaction Products
October 31, 2016
credited into a Small Account unless the
identity of the client is fully established
through the production of officially valid
documents. A small account shall remain
operational initially for a period of 12
months, and thereafter for a further
period of 12 months if the holder of such
an account provides evidence before the
Bank of having applied for any of the
officially valid documents within 12
months of opening of account, with the
entire relaxation provisions to be
reviewed in respect of the said account
after 24 months. A stop will be set in CBS
on completion of 12/24 months which can
be removed by the Home Branch after
reviewing the account as above.
Maximum 4 withdrawals in a month,
including ATM withdrawals at own and
other Bank’s ATMs shall be allowed.
Thereafter service charges as per regular
Savings Bank Account will apply. Only
basic ATM-cum-debit card will be issued.
SMALL ACCOUNT: LATEST KYC
INSTRUCTIONS (e-Circular Sl No.
1151/2014-15 dated 27.12.2014)
 “Those persons who do not have any of
the ‘officially valid documents’ can open
Small Accounts with Banks. A Small
Account can be opened on the basis of a
self attested photograph and putting
her/his signature or thumb print in the
presence of an official of the Bank. Such
accounts have limitations regarding the
aggregate credits (not more than Rupees
one lakh in a year), aggregate withdrawals
(not more than Rupees ten thousand in a
month) and balance in the accounts (not
more than Rupees fifty thousand at any
point in time). These Small Accounts
would be valid normally for a period of
twelve months. Thereafter, such accounts
would be allowed to continue for a
further period of twelve more months, if
the account holder provides a document
showing that she/he has applied for any
of the officially valid document, within
twelve months of opening the Small
Account.”
FINANCIAL INCLUSION:
Page 5
OPENING OF ACCOUNTS UNDER PRADHAN
MANTRI JAN-DHAN YOJANA
(e-Circular Sl No.665/2014-15 dated 03.09.2014)
With a view to expand comprehensive financial
inclusion in a mission mode, Hon’ble Prime
Minister had announced ‘Pradhan Mantri Jan-
Dhan Yojana’ on Independence Day 15th August
2014. The scheme has been officially launched
across the country on 28th August, 2014.
The scheme envisages provision of banking
outlets and a Basic Saving Bank Deposit (BSBD)
account to every household by 26th January 2015.
BSBD accounts can be opened with zero balance.
The target group under the scheme would be the
households which could not open their account so
far. In order to ascertain the uncovered
households in villages/wards allocated to our
Bank, our Bank have already advised the Circles to
get a survey completed by 30th September 2014.
These FI customers are also to be provided with
Rupay Debit cards which have an in-built
accidental insurance cover upto Rs one lac.
Since there are many variants of SB accounts in
our Bank, therefore for operational convenience
a) The term FI accounts is used for BSBD and
Small accounts opened through branch or BC
channel.
b) Product codes of FI accounts:
Available at Branches: 1011-1701 BSBD
1011-1601 Small Accounts
1611-1411 SBI Tiny OD Accounts
Available at BC channel: 1611-1411 SBI Tiny OD
Accounts1611-1401 Tiny Accounts (used for
minors, without OD)
c) Therefore, any new FI account opened under
the captioned scheme is to be opened under
above product codes.
d) BSBD is a full KYC account, whereas Small
account or Tiny account are opened with
liberalized KYC (For details refer to e-Circular
NBG/PBU/LIMASB/15/2013 dated 26th Sept 2013
and NBG/PBU/LIMA-SB/16/2013 dated 26thSept
2013)
e) There is no separate product code for PMJDY.
Existing account holders are not required to
open fresh account under PMJDY. RuPay Debit
Cards can be issued against existing accounts
 Quick Success Series Liability & Transaction Products
October 31, 2016
also. All RuPay Debit Cards carry an in built
accidental insurance upto Rs 1 lac.
f) PMJDY scheme provides for overdraft facility
after six months of satisfactory conduct of
account. For this purpose, our existing product
(1611-1411 SBI Tiny OD Accounts) enabled both at
branch and BC channel will suffice.
New Savings Bank Product Savings Bank
Account for Children below 18 Years of Age –
“Pehla Kadam and Pehli Udaan”
(Refer e-Circular Sl no.662/2014-15 Circular
No. : NBG/PBU/LIMA-SB/16/2014 – account.
15September 05, 2014)
Two new Savings Bank products have been
designed for Minors – “Pehla Kadam and
Pehli Udaan”. Pehla Kadam is a Savings Bank
account for Minor of any age operated jointly
with his/ her Parent/Guardian or singly by
Parent/Guardian, while Pehli Udaan is a singly
operated Savings Bank Account for a Minor
aged 10 years and above and who can sign
uniformly.
Certain limits and restrictions have been built
into these accounts as risk mitigation feature.
The maximum balance in these SB accounts is
capped at Rs. 5 lacs and the aggregate
balance on the Minor’s CIF is capped at Rs.
10 lacs. Moreover, there are various caps on
the maximum amount transacted using these
accounts in order to limit exposure.
Special Account Opening Kits have been designed
for these products with colourful creative to suit
the taste and likings of the youngsters. This kit
consists of an A4 size jacket (enclosed) which in
turn houses a Letter to the customer listing the
product features in brief, a proposal form for the
Child Plan – Smart Scholar, Smart Scholar leaflet,
etc. All these items are housed inside an A4 size
envelope. An Account Opening Form will have to
be inserted in this kit to complete it and then can
be handed over to the potential customers.
For opening accounts under this product code the
following KYC documents should
be taken as below:
Page 6
a) Pehla Kadam: Proof of Date of Birth of
the Minor and KYC documentation of the
Parent.
b) Pehli Udaan Proof of Date of Birth of the
Minor and KYC documentation of the
Parent.
An agreement/undertaking with respect to
Internet Banking, ATM cum- Debit Card and
Mobile Banking will be signed by both the
Minor (more than 10 years of age) and the
parent/guardian of the Minor. The
parent/guardian shall be solely responsible
for the transactions made by the Minor in this
Passbooks and Cheque Books have been specially
designed for these products. The passbooks for
these accounts will be provided to all the
Branches by the respective Circle Stationery
Departments. The specially designed cheque book
stationery has been provided to the LCPC by CSD
Kolkata. Personalised cheque books will be sent to
the address of the customer. Keeping in view the
sensitive nature of minor account, it has been
decided to put a limit of Rs. 5000 for ATM
withdrawal, POS transactions, Payment of Bills,
Third Party cash payment, Inter Bank transfer.
Minors will be given exclusively designed branded
Photo ATM-cum-Debit Card. The card will have
product branding on it and the photograph of the
Minor will be embossed on it. The limit for
withdrawal/POS will be restricted to Rs. 5,000/-
for both the variants. Under Pehla Kadam, the
ATM Card will be issued in the joint names of
Minor and Guardian and under Pehli Udaan the
ATM card will be in the sole name of the Minor.
Branches are advised not to issue normal
domestic classic ATM card while opening the
account and in lieu of the same upload the
scanned image of the account holder before
applying for the specialised ATM card designed
for the account.
Some features bundled along with these products
are:
i. Auto sweep: The product has the auto sweep
facility with a minimum threshold of Rs. 20,000
however the Sweep will be in multiple of Rs 1,000
with a minimum of Rs. 10,000.
 Quick Success Series Liability & Transaction Products
October 31, 2016

ii. OD facility: An Overdraft facility is available to Inter-Bank funds

STDR/e-RD,
the parents for meeting immediate requirements transfer (NEFTInter-Bank
such as payment of school fees, etc. The only), and Issue
funds transfer
Overdraft may be grated against fixed deposits or Demand Draft. (NEFT only),
two months’ salary in case of Per day
and Issue
Corporate Salary package accounts as the case transaction limit
Demand
may be subject to fulfilling other terms and of Rs. 5,000/-Draft.Per day
conditions. transaction
iii. Internet Banking: The customers will be limit of
provided with Enquiry Rights and Limited Rs.5,000/-
Transactions like Bill payment, Opening of e- Product • 1029 1411- 1029 1421-
TDR/e-STDR/e-RD with Per day Transaction Limit Codes SBCHQ SBP SBCHQ SBP
of Rs. 5,000/-. PEHLAKADAM PEHLIUDAAN
iv. SMS facility is available & would be sent to the (G) INR (G) INR
mobile number of the parent if so desired by the • 1029 3411-
parent. The branch will require to capture the SBCHQ SBP STF
mobile no. of the parent/guardian accordingly. In PEHLAKADAM
case of Pehli Udaan account, since the minor will (G) INR
be able to carry out INB transactions by using OTP
received, the minor will require to register his/her KYC Date of Birth Date of Birth
mobile no. in the INB platform. Requirements proof of the proof of the
v. Mobile Banking: The customers will have the Minor + KYC of Minor + KYC
Viewing Rights and limited transaction rights like the Parent of the Parent
Bill payment, Top ups with per day transaction
limit of Rs. 2,000/-. The minor can opt for a Cheque book Personalised Personalised
different mobile no. for operational chequebook chequebook
convenience if parent’s mobile number is (with 10 cheque (with 10
captured in CBS. leaves) will be cheque
issued to the leaves) will be
Brief features of the two products are given in Guardian in the issued if the
the table below: name of minor minor can
Features Pehla Kadam Pehli Udaan u/g guardian. sign
Eligibility Minor of any Minors above uniformly.
age the age of 10 Photo Child’s photo Photo
years and ATM-cum- embossed ATM embossed
who can sign Debit Card cum- Debit Card ATM-cum-
uniformly with Debit
Cap on • Rs. 5 lac in the Account withdrawal/ POS With
Balance • Rs. 10 lac aggregate deposit on limit of Rs withdrawal/
the CIF of the Minor 5,000/. Card will POS limit of
Mode of Jointly with the Singly be issued in Rs.
Operation Parent/Guardian operated the name of the 5,000/- will
or Singly by minor and be issued in
Parent/Guardian Guardian the name of
Internet With Enquiry With Enquiry the minor.
Banking rights and rights and Mobile With viewing With viewing
limited limited Banking rights and rights and
transactions like transactions limited limited
- Bill payment, like - Bill transaction right transaction
Opening e- payment, like: Bill right like Bill
TDR/e-STDR/e- Opening e- payment, Top payment, Top
RD, TDR/e- ups. Per day txn ups, IMPS.
Page 7
 Quick Success Series Liability & Transaction Products
October 31, 2016

limit of Rs. Per day txn open the 18 years & above who
2,000/- limit of account undergoes a skill development
Rs.2,000/- training in an eligible sector by
Auto sweep Auto sweep facility with a an approved training partner of
minimum threshold of Rs. NSDC
20,000. Sweep in multiple of Rs 5 Account can Individuals singly
1,000 with a minimum of Rs. be opened
10,000 by
Over Draft Overdraft against Fixed deposits 6 Documents Normal KYC documents
or two months’ salary in case of required
Corporate Salary package 7 Nomination Available
accounts as the case may be 9 Marking/ The account holders will be
subject to fulfilling other terms Unmarking trainees of NSDC. The training
and conditions. of Hold will be provided by the training
Standing An option of setting up of one institutions and the cost of the
Instruction Standing Instruction for training will be
Recurring recovered from the monetary
Deposit, free of charge. incentive released by NSDC,
after the successful completion
of the course. For this purpose a
Value Added Feature (optional) hold equal to the amount
payable to the
PAI for Parent Personal Accident Insurance training centre ,will be created in
Cover (offered by SBI General) favour of the training institution,
for and the money will be
the Parent (in case of Pehla transferred to training institution
Kadam account only). on completion
Child Plan Smart Scholar - Child Plan of the training. To this effect a
offered by SBI Life with inbuilt mandate signed by the trainee
premium will be obtained at the time of
waiver benefit and loyalty account opening.
additions to fulfil the child’s 10 Transfer to After auto transfer of the
dreams. normal S B specified hold amount, the
 NEW SAVINGS BANK PRODUCT: account. account will be treated as
NATIONAL SKILL DEVELOPMENT normal SB account or closed as
CORPORATION-TRAINEE’S ACCOUNT per the mandate
UNDER PRIME MINISTER KAUSHAL given by the trainee.
VIKAS JOJANA: PROJECT PRODUCT  The training institutions selected by NSDC
CODE (1119- 1101) (e-cir.350/16- will sign the MOU with our Central
17dtd15.6.16) Secretariat Branch New Delhi which is the
1 Purpose To facilitate opening of Savings Nodal branch for this scheme.
Bank accounts by the  After signing the MOU the training
beneficiaries/trainees under the institutions will admit students and collect
scheme. account opening forms with KYC documents and
2 Product 1119-1101 submit the same at the branch which is
Code convenient to them. The branch has to verify KYC
3 Scheme to All the branches documents and open the account. As in the case
be of Salary Accounts , any official from the branch
operational will go to the training institution and verify the
at KYC documents and get the Trainee’s signature
4 Who can Indian individual at the age of ,else the trainees will have to come to the branch
for opening the accounts.
Page 8
 Quick Success Series Liability & Transaction Products
October 31, 2016

 Along with the Account Opening Form the the account holder is not enjoying any
trainees will also sign a mandate authorizing the credit facility with other Bank(s). Banks should
bank to transfer the training cost received from scrupulously ensure that their branches do not
NSDC on completion of the training to the open Current Accounts of entities which enjoy
trainer’s account. The training institutions will credit facilities (fund based or non-fund based
also open Current Account with the Bank if they from the banking system without specifically
are not already having the same. obtaining a No-Objection Certificate from the
 Introduction of new product for INB lending bank(s). Banks note that non-
Customers SBI Holiday Savings Account(e- adherence to the above discipline could be
cir.1369/15-16 dtd08.02.16) perceived to be abetting the siphoning of funds
The general rules as applicable for e-RD will be and such violations which are either reported to
applicable here. However, other features to be RBI or noticed during their inspection would
noted are listed below: make the concerned banks liable for penalty
1. Holiday Savings Account can only be opened underBankin Regulation Act.1949”.(e-cir 701/16-
online through internet banking. 17 dtd 29.08.16
2. It is a 12 month RD opened with the Bank and  Minimum QAB to be maintained in a current
13thinstallment will be a combination of account by Non-Individuals in Rural Areas & Other
interest from the Bank and top up from Thomas Areas Rs. 5000 & Rs. 10000/-respectively.
Cook.  Minimum QAB to be maintained in a current
3. At the time of opening account SI will be set account by Individual in Rural Areas & Other Areas
automatically on the account. However customer respectively. Rs.2500 & Rs. 5000/-respectively
can change this later online or through home  Penalty for non maintenance of QAB for Non-
branch. individual Current AccountRs 1000/- per quarter
4. RD installments can be made online or at  Penalty for non maintenance of QAB for
branch. individual Current Account
5. Domestic, NRE, NRO and staff can avail this Rs 611/- per quarter
facility.  A/ C Closure Charge (See SB A/c)
6. The account can be closed online or at branch.  POWER POS: CURRENT ACCOUNT POS (POINT
7. RD installment amount is calculated by dividing OF SALES) LINKED OVERDRAFT
the holiday package cost by 13 and rounded off to (e-cir.621/16-17 dtd 09.08.16)
a multiple of 100. Target Customers ( All
8. The maturity proceeds will go to Thomas Cook Customers Segments ) with our
account which is the default option set at the time POS facility
of opening the account. However, customer can Minimum The account may be opened
change this maturity mandate Balance with
online or through branch at any time during the Zero balance
tenure. He can do so online through ‘Modify QAB Rs.5000/-
Maturity Instruction’ tab under ‘My Holiday Cash deposit in Free up to Rs.25,000/-
Savings A/c’. home branch Beyond Rs.25,000/- Cash
9. Penalties and charges as applicable for e-RD will Handling Charges would be
apply here as well. Rs.0.75/ Rs.1,000/-
10. The interest rate as applicable at the time of + ST
booking the RD will be fixed during the Minimum Rs 50/-+ST
entire tenure of the scheme. Maximum Rs 20000/-+ST
11. Senior citizens can avail special rates of Cash deposit at Normal Card Rates
interest on this product by ticking the box ‘Senior CDM Service Charge: Rs 22 /-
citizen’ at the time of opening the account online. +Service
Tax
CURRENT ACCOUNT Levied from 1st October
2015,
Banks should, at the time of opening Current Maximum Limit: Rs.49900/-
Accounts, insist on a declaration to the effect that

Page 9
 Quick Success Series Liability & Transaction Products
October 31, 2016

per months
transaction (Maximum of transaction.
200 pieces Min: Rs 25000/-
at any one instance). Max: Rs 5 Lacs
Cash No upper limit Facility is available :
withdrawal in • Only after 6 months after
Home Branch installation and satisfactory
Banker's At par operation of terminal with all
Cheques/ other
Demand terms and conditions
Drafts/IOI remaining
Cash Pick up Withdrawal of 100% waiver same.
Charges of • satisfactory operation will
CMP charges. necessarily mean, the
Normal CPU charg terminal has
Outstation 50 % Normal card rates not been levied commitment
Cheque charges due to inactivity of
Collection the
Multicity First 100 cheques free, terminal
Cheque issue thereafter • To be eligible for OD, the
charges 50% of the card rates merchant
Cash Deposit at Maximum : Rs. 2.00 lacs per must have generated a
non-home day transaction
Branch Charges : Normal card rates volume of at least Rs 1.25 lac
will be on
applicable the terminal(s) installed in
Branch Manager vested with the last 6
the months to be eligible.
discretion to accept higher • Loan Amount :25% of last 6
amount. months transaction ,
Normal charges will be min. Rs 25000/-, Max :Rs 5
applicable lacs
Encashment of Normal card rates Non Rs. 500 /- per quarter.
self cheques at Max.Limit:1.00 lac maintenance of
Non-Home Free up to Rs.50,000/- QAB
Branch above Rs. 50,000: Rs.2.50/-
per Rs.  Interest on deceased CA to be paid at the rate of
1000 SB rate based on simple interest from the date of
SME Insta To be offered by the branch death to the date of final payment made to the
Card, at the beneficiary.
• Xpress time of opening of the TDR/STDR
Collect Card, account  Minimum amount of deposit that can be accepted
• Business as Term / Special Term Deposit
Debit Card Rs.1000.00 & thereafter in multiple of Rs 100.00
• CINB/RINB  Minimum & Maximum tenure for Term
Penalty for Rs. 1000 /- Deposits
closure of 7 days & 120 months respectively
account within  Minimum & Maximum tenure for S.T.D.R
12 months 6 months & 120 months respectively
Overdraft Available up to Rs 5 lakhs  Maximum amount of loan that can be
Loan Amount: 25% of last 6 granted against Term Deposits

Page
10
 Quick Success Series Liability & Transaction Products
October 31, 2016

90% of principal amount + accrued Rational:- To meet the requirements of customers

interest (Subject to an undertaking to be who have surplus funds and are willing to invest
furnished by the applicant to repay the funds to get higher return
loan in monthly installments) Purpose To provide a scheme with
 Opening of multiple Demand Loans an option to invest surplus
against the same TDR/STDR is now funds for a long period
permitted, so long as the sum total of the at a higher rate of interest
limits of all DL A/cs is within permissible Eligibility All depositors (Only
limit of DL against TDR/STDR. The domestic deposits)
sanctioning authority can allow max of 4 Nature of Term Deposit (TDR)/
such DLs. In special cases AGM/RM can Deposit Special Term Deposit
permit 5th loan. (STDR)
 At what interval Interest is to be paid on It would not be made
TDR available for MOD/ Auto-
Generally at Quarterly Interval, But on sweep
request from the depositor, interest may Period Period of deposit from
be paid at half-yearly or monthly intervals 181 days to 3 years
in case of term deposits fixed for a term Amount Minimum: Rs.1 Crore and
of twelve months and above. Monthly above
interest will be paid at a discounted value. Maximum : No limit
 Can Interest be paid at Calendar Quarter Interest Payment of interest at
i.e. on 31st Mar, 30th Jun, 30th Sep & 31st Payment Monthly/Quarterly/Half
Dec irrespective of the Date of Deposit yearly/Annual basis as
Yes, this facility is now available (e- per customer
circular No 768 dated 17th Feb 2010) requirement. In STDRs
(Rationale: For easy & convenient quarterly compounding
computation of Interest Received by the done
depositor during the financial year for the Calendar option not
purpose of filing I. Tax return) available.
TDS on Term Deposit Interest Payment of interest on
 As per Section 194A of the Income Tax Act, Tax is monthly interval will be at
deducted at source whenever interest on time discounted rate
deposits credited or paid or likely to be credited Interest to be paid at
or paid to the account of a customer, exceeds Rs the contracted rate
10000/- per person, per branch in a financial year irrespective of change in
 TDS is applicable on all time deposits . the
 TDS Rate applicable on interest payable on Time rate thereafter
Deposit Senior Citizens/ Staff -
i) For Company: Domestic 20%/Others 40% Additional interest rate as
ii) Other than company: Residents 10% / NRI 30% per the prevailing
Education Cess @ 2% & Secondary & Higher extant guidelines
Education cess @ 1% to be added additionally Rate of interest Additional interest rate
 Form 15H is submitted by (%) p.a. over and above
Depositors with age of 60 years & above the card rate applicable to
 Form 15G is submitted by Normal depositsof all
Individuals below age of 60 years tenors available between
 Form 15G & 15 H are valid only if 181 days to 3 years.
It contains PAN Currently as following:
 If PAN is not submitted, applicable rate of TDS for Tenor : Premium over
Resident Individuals Card interest rate
20% Plus 3% Cess applicable
SBI- NON-CALLABLE TERM DEPOSIT SCHEME
Page
11
 Quick Success Series Liability & Transaction Products
October 31, 2016
for relevant Tenor
i) 181Days up to 210 days
: 0.10 % per annum
ii) 211 Days up to less
than 1 year : 0.10 % per
annum
iii) 1 year to 455 days :
0.10 % per annum
iv) 456 days to less than 2
years : 0.10 % per annum
v) 2 years to less than 3
years : 0.10 % per annum
Differential i) Available.The amount
interest rates and tenor of Bulk deposit
for DIR is decided by
Global Markets on daily
basis and will be available
to branches through
SME BU Corporate Centre.
ii) Interest Rate : 0.10 %
per annum additional
interest rate will be over
and above interest rate
quoted by Global Markets
Department
Premature No premature withdrawal
Withdrawal allowed
On maturity payment will
be made to depositor or
survivor as per mandate.
In case of deceased
account, payment should
be made to survivor
and/or
legal heirs as the case may
be only on maturity.
Premature payment is not
allowed even in deceased
case. Undertaking as
mentioned in Step 3 of
Standard Operating
procedure (SOP)
(Annexure 2) has to be
obtained in all
cases.
Loan facility Only Demand loan is
allowed. Branches should
ensure that Demand
Loan limit should be set
up in CBS on the date of
drawal.
Non -callable deposits
Page
12
should not be used as
security/ margin
moneyfor
(LC/BG) and any other
credit facility or purpose.
Overdraft Overdraft strictly not
allowed.
Documents As per extant instructions
Required for Term Deposits
Recurring Deposit
 Minimum monthly installment
Rs. 100/- at Metro/ Urban/ Semi Urban centre &
Rs 50/- at Rural centres (Thereafter in multiples of
Rs. 10/ -)
 Minimum & Maximum tenure
12 months & 120 months respectively
 If opened in the name of Minor (Sole name, above
10 years of age): Monthly installments should be
so adjusted that the total amount payable on
maturity does not exceed
Rs.2,00,000/-
 U/s 269 of the Income Tax Act, time
deposits with interest thereon amounting to
Rs.20000/- and above has to be paid by way of
credit to account/Bank Draft/crossed cheque only
unFixed Deposit
 Provides high returns and full liquidity.
 Ideal for short term liquidity of Individuals,
Companies, Institutions, Firms, Trusts,
Associations, Societies etc.
 Tenor : 7 to 180 days
 Amount : Rs.15 lacs and above
 Can be withdrawn anytime after 7 days,
no penalty to be levied
Kisan Mitra Jama Yojana (KMJY)
 Authorised Branches
ADBs, ABDs and All Branches at Rural/ SU Centre
 Minimum amount of deposit
Rs 1500 and thereafter in multiples of Rs. 100
 Minimum amount of Partial withdrawal
Rs. 500/- in multiples of Rs. 100/-
 Minimum & Maximum period of Deposit
12 months & 10 years
 Whether Deposit Receipt is Issued
No, a Passbook is issued
 Whether Loan available
Yes
Savings Plus
 Quick Success Series Liability & Transaction Products
October 31, 2016
 Savings Plus Account is a Savings Bank Account
linked to MODS, wherein surplus fund above a
threshold limit from the Savings Bank Account is
transferred automatically to Term Deposits
opened in multiples of Rs.1000.
Any surplus funds in the account exceeding the
threshold limit (to be set by the customer), for a
minimum amount of Rs.10,000/- and in multiple
of Rs.1000/- in any one instance, are transferred
as Term Deposit and earns interest as applicable
to Term Deposit.
 Flexibility to set any threshold limit of Rs.5,000/-
or above.
 Account holder has the flexibility to choose the
period of deposit from 1 year to 5 years and to set
any threshold limit.
 Payments in excess of available balance in the
Savings Bank Account can be made by breaking
MODs Last In First out.
Premium Savings Account (Discontinue w.e.f 1st
August, 2016(e-cir.579/2016 – 17dtd 02.08.16)
SBI SURABHI(e-cir.622/16-17dtd09.08.16)
 Purpose (Rationale)
To Provide Value added Product to the
top Corporates/Institutions/Trusts &
other entities who need liquidity as
well as better returns on their funds
 Nature of Deposit :
SB or CA linked to CLTD
 Minimum Balance for CA
Rs 10000/-
 Minimum Bal for SB
Rs 5000/-
 Period of CLTD
Minimum-12 Months; Maximum-36
Months
 Threshold Limit for Auto Sweep
Rs 100000/-
 For CLTD – Initial deposit would be i.e. for the first
sweep –Rs. 1,00,000/-and above,and
subsequent deposits would be in multiples of
Rs.10,000/- with a minimum of Rs 1,00,000/-
 Periodicity for Sweep
Weekly
 Partial Withdrawal based on
LIFO in multiples of Rs.10,000/
 No loan ar OD is permissible against the deposit
SUKANYA SAMRIDDHI ACCOUNT (SSA)
(e-Circular Sl no. 181/2015-16 dated 14.05.2015)
Page
13
Eligibility: SSA may be opened by the natural /
legal guardian in the name of a girl child from the
birth of the girl child till she attains the age of ten
years and any girl child who had attained the age
of ten years, one year prior to the
commencement of SSA Rules 2014 shall also be
eligible for opening of account.
i.e. any girl child born after 01.12.2003.
Natural/ Legal guardian may open two accounts in
the name of two girl children. Third account in
case of twin girl as second birth or if first birth
itself results in three girl children.
Documents: Birth Certificate of a girl child and KYC
of the guardian.
Deposits: Initial deposit Rs.1000/- thereafter any
amount in multiples Rs.100/-provided Minimum
Deposit in a year is Rs.1000/- and Maximum is
Rs.150,000/-.
Duration: Minimum deposit mandatory till 14
years from the date of opening.
Interest on Deposit: (i) Cumulative, compounded
yearly till maturity.
(ii) Non- cumulative, Monthly interest payment on
complete thousands by credit to Savings Bank
Account. The balances in fraction of thousands
will continue to earn interest at prevailing rate.
(iii) Interest rate to be decided by GoI, presently
9.2 %.
Withdrawal: Withdrawal allowed only after the
girl child attains 18 years of age. Amount of
withdrawal upto 50% of the balance at the credit
at the end of preceding financial year.
Transfer of account: Account is transferable
anywhere in India if the girl child in whose name
the account stands shifts to a place other than city
or locality where the account stands.
Premature closure: (i) Death of account holder on
production of Death Certificate
(ii) By explicit orders of Central Govt, in case the
operation of account causes hardship to account
holder
(iii) Marriage of Girl Child after 18 years of age.
Maturity: The account shall mature on completion
of 21 years from the date of opening the account.
In case the account continues after maturity/ not
claimed on maturity, interest at the prevailing
rate will be payable till final closure.
Senior Citizen Deposit Scheme
 Minimum age of the depositor should be
60 years or above on the date of deposit
 Quick Success Series Liability & Transaction Products
October 31, 2016
 Period of deposit
Minimum 1 year maximum 10 years
 Minimum amount of deposit is
Rs. 10000.00 and thereafter in multiple of Rs
1000.00 (For RD, maturity value should be Min.
Rs.10,000/-)
 Differential rate of interest under Senior Citizen
Deposit Scheme is
0.25% above the normal rates
 Nomination: i) Signature of nominee duly
attested by Senior Citizen to be obtained.
ii) Option to write name of nominee on receipt
apart from ‘nomination registration no’ (if Senior
Citizen not agreed for above provision, consent
letter to be kept on record)
Capgain Plus
 Purpose
For parking of capital gains for a period of
maximum 3 years and utilization thereof for
capital investment
 Authorised branches
All branches except rural branches
 Minimum amount of deposits
Rs 1000.00 for a Savings Bank and Rs. 5,000.00 for
a term deposit
 Period of Deposit
Not exceeding 2 to 3 years from the date of
transfer of original asset as applicable under
different sub sections of the act (i.e. U/s 54 B & F
for 2 years, U/s 54, 54 D, 54 G for 3 years)
 Amount withdrawn is to be utilised within
60 days
 No Cheque Book
 No ATM Card
 No Loan facility
 Term deposit can neither be accepted as margin
money for NFBL nor as collateral for any FBL.
 Withdrawal from SB on specified forms (Form D
to be submitted in duplicate)
 Premature Payment of TDR – only after
production of a specific letter of Authority from
the concerned Income Tax Officer (Form C)
 Withdrawal of amount can be permitted only by
way of DD in favour of the person to whom
payment has to be made, if amount of such
withdrawal exceeds Rs 25000/-
 Account can be closed only with the approval of
the IT Assessing Officer (Form G)
 Application Form (Form A), Conversion of TDR
into SB (Form B), Nomination (Form E),
Page
14
Cancellation of Nomination (Form F), Settlement
of Deceased (Form H)
Gold Deposit Account
 Eligibility
i)Individual (Singly, E or S, F or S)
ii)Joint Hindu Family
iii)Trust
iv)Company
 Nomination facility will be available if the deposit
is
In single name in individual capacity, however,
Nomination facility will lapse if the certificate is
transferred to another person
 “Nodal Branch” for the scheme
Overseas Branch, Mumbai
 Minimum quantity of gold that can be deposited
500 gms (gross)
 Period and rate of interest of Deposit
(3 years-1%),( 4 years-1.25%) & (5 years-1.50%)
 Gold will be accepted in the scrap form.
 Gold deposit certificate will be issued.
Alternatively statement of account/passbook may
also be issued at the choice of the depositor.
 Depositors opting for certificate would be issued a
single certificate or certificate in the
denomination of 100 gms and 1000 gms
alongwith one certificate for the balance quantity.
 Single certificate will also be available for the full
quantity. These certificates are transferable by
endorsement and delivery.
 Gold deposit certificate has been classified as
specified security. Loan facility (OD/DL) may be
availed for any general purpose.
YUVA SB Account
 Special Savings Bank product to entice the youths
and bring them to our fold.
 Residents, above 18 years age and up to 30 years
of age, at the time of entry.
 Mode of Holding: Singly/Jointly/ Jointly with
survivorship benefits. The first account holder has
to be eligible as per the above eligibility criteria.
 Yuva Card (Visa), which have many
concessionary/complimentary facilities, will be
issued free of cost.
 Quick Success Series Liability & Transaction Products
October 31, 2016
 One draft/ Bankers Cheque will be issued free, per
calendar month, favouring Educational
Institutions or for applying jobs.
 Free collection of one cheque, with a ceiling of
Rs.20,000/- per month.
SBI Flexi Deposit
 Purpose
To cater to the needs of the people who have
surplus income and desire to earn attractive
interest with flexibility of increasing the amount
 Scheme similar to
PPF Deposit Scheme
 Minimum Deposit at any one instance
Rs 500/-
 Minimum Deposit per financial year
Rs 5000/- plus in multiples of Rs 500/-
 Max Deposit per Financial Year
Rs 50000/-
 Type of Account
Recurring Deposit (Variable deposit) account
 Penalty for default in payment of Minimum
Deposit per Financial Year
Rs 50/-
 Period of Deposit
Min 5 yrs & Max 7 yrs
 Interest will be compounded at quarterly
intervals, based on the balance outstanding on
the last date of each month.
 Deposit on maturity can be withdrawn on the last
date of the month in which it matures
SBI Annuity Deposit
 Under this scheme a lump sum amount deposited
by a customer is repaid over a period of equated
monthly installments, comprising part of principal
amount and as well as interest on the reduced
principal amount, compounded at quarterly rests
and discounted monthly
 Minimum Deposit Amount
Rs 25000/-
 Minimum Monthly Annuity
Rs 1000/-
 Period of Deposit
36 / 60 / 84 / or 120 months
 Loan upto 75% of the balance amount of annuity
permitted
 Whether premature payment permitted
Only in case of death of depositor
SBI Tax Saving Scheme 2006
 Who can open
Page
15
Individuals in single name or joint name or Karta
of an HUF
 Cater the need of Income Tax assesses
 PAN is mandatory
 Tax Benefit under Sec 80C of IT Act 1961
 Minimum Deposit
Rs 1000/-
 Maximum Deposit
Rs 150000/- in a year (e-Cir Sl No.1022/2014-15
dated 12.12.2014)
 Period of Deposit
Minimum 5 Years and Maximum 10 Years
 Whether Premature payment allowed
After completion of 5 yrs (There is a lock in period
of 5 years)
 Whether loan available
No loan facility. It can also be not held as
collateral for securing any loan
 In case of Joint A/c, who will get tax benefit
First Account holder (u/s 80c of IT Act,1961)
 IT on interest : Income is liable for tax deduction
u/s 194A & 195 of the act)
TERM DEPOSITS FOR 18 YEARS FOR THE BENEFIT
OF GIRL CHILD
 Purpose
To target beneficiaries of Government
Departments who plan to deposit a corpus at the
time of birth of a “girl child.”
 Who can open?
a) Joint accounts with legal guardian of girl child
operating the account.
b) Provision for to be made to accept the
mandate of Govt. Department funding the
amount
 Minimum Balance
Rs 1000/- (Deposits can be made by cheques
issued by Government authorities/ funds
transferred from Govt. account)
 Maximum Balance
No Cap on Maturity Amount
 Premature Withdrawal
Allowed under the following circumstances:
a)Death of the minor,
b)Mandate received from Government
 Loan Facility
Not available
 Auto Renewal of Account
Not Applicable at the time of Maturity
 Maturity Date
Not to exceed 18 years from the date of birth of
the Girl Child
 Quick Success Series Liability & Transaction Products
October 31, 2016
SME SAHAJ
 Purpose (Rationale)
To make banking facility accessible to vast section
of low profile trading community and Non-
individual customers
 QAB
Rs 1000/-
 Penalty for Non Maintenance of QAB
Rs 300/- per quarter
 Whether Cash Withdrawal Permitted at Cash
Counter
No
 Whether ATM Card Facility Provided
Yes
 Card Name & Cash Withdrawal Limit
Sahaj, Rs 15000/-
 Whether INB Facility Provided
Yes
 Any Restrictions on Cash Deposit
Yes, Max Deposit Rs 10000/- per day
 Whether Cheque Facility Available
Yes
 Charge for Cheque Book
Rs 5/ - per cheque upto 25 leaves per year
Additional cheques @ Rs 10/- per leaf
 Drawing Per Cheque to be limited to
Rs 15000/-
 Charge for SI for Payment to Other Account
Rs 50/- per Transaction
 Immediate credit of Outstation Cheques upto
Rs 15000/-
SBI SHAKTI
 Current Account product with QAB Rs.20,000/-.
 Penalty for non maintenance of QAB Rs.750 per
qtr
 Cash deposit/withdrawal at home branch –
unlimited
 Cash deposit/withdrawal at non home branch –
Max Rs.20,000/- on charge of Rs.100 per
transaction.
 Penalty on closure of A/c within 12 months –
Rs.750/-
 Deposit of cheque & clearing instrument at
home/non home branch, issuance of BDs/B Chq/
Pay orders, remittances at concessional rates.
CINB-free.
 MCC,NEFT & RTGS available at normal charges.
POWER JYOTI
 Purpose (Rationale)
To provide customized fee/funds collection
facility for Institutions/firms/companies, etc
through our core banking branches
Page
16
 Eligibility : Any Institution/ Firm/Company, etc,
desirous of countrywide collection of fee/funds
from multi location outlets
 Type of A/c : CA
 QAB
Rs 50000/-
 Penalty for non maintenance
Rs 2500/- per quarter
 Penalty for Closing A/c within 12 months
Rs 1000/-
Whether Cheque Facility available
No
 No overdraft facility is permissible.
 Transactions other than fee collection is not
permitted in non-home branches
 In a single Challan, Upto _____ types of
fee can be collected :10
 Challan is in ____ Parts
Three
POWER JYOTI PLUS for Brokers
 Tailored product with customized MIS to suit the
broking house needs.
 Power Jyoti Plus A/cs to be opened at our Capital
Market Branch, Mumbai.
 Branches and franchisees of the brooking firms
from other will bring only local cheques for credit
to these accounts with special challan forms for
assured MIS facility.
 No cash deposit is allowed.
SME POWER
Out of eight variants of the product SME-POWER,
five variants of the product- Power
Premium/Privilege/Advantage/Super/Lite have
been discontinued vide e- Circular Sl no.
210/2014-15 dated 30/05/2014. However, the
existing accounts opened under these five
variants would continue. They would also be
allowed to convert their accounts to Power Pack
and Power Gain variants.
The revised instructions would be applicable
from 15/07/2014.
fig in Rs.
Features POWER POWER POWER
PACK GAIN BASE
 Quick Success Series Liability & Transaction Products
October 31, 2016

QAB 500000 100000 20000  Any Exception to the above

Penalty for 10000 6000 3000 Platinum Variant not available in DSP-AR (Since
non Per Qtr Per Qtr Per Qtr officers qualifying for Platinum Variant are on
maintenance deputation from Army & they are already covered
of QAB under DSP-Army)
Penalty for 5000 1000 750  Common Features applicable to Silver Variant in
closing the All the Salary Packages
account Free Domestic ATM Card
within 12 One additional ATM card to Single Accountholders
months at their risk & responsibility (DSP/PMSP) Personal
(Pl refer e-Circular Sl. No. : 379/2014 - 15 12 July, Accident Insurance Cover of Rs 1 Lakh (RSP only)
2014 for details) Personal Accident Insurance Cover of Rs 3.00 lacs
Salary Packages (enhanced from Rs.2.50 lacs) PSP/DSP/PMSP
 Corporate Salary Package (CSP) - For Permanent  Common Features applicable to Gold & Diamond
employees of a Corporate or Institution fulfilling Variant in All the Salary Packages
two criteria* (See box below) Free Gold International Visa or Master Debit
 Defence Salary Package Army (DSP-Army)- For Cards. Personal Accident Insurance cover of Rs 5
Personnel of Army & Rashtriya Rifles lacs (enhanced from Rs.4 lacs)
 Defence Salary Package Navy (DSP-Navy)- For  Common Features applicable to Platinum Variant
Personnel of Navy in All the Salary Packages
 Defence Salary Package Air Force (DSP-Airforce)- Free Platinum International Debit Cards
For Personnel of Airforce Personal Accident Insurance cover of Rs. 5 lacs
 Defence Salary Package Assam Rifles (DSP-AR)- SBI Vishesh status
For Personnel of Assam Rifles 25% Concession in locker charge
 Defence Salary Package GREF (DSP-GREF)- For Application for availing overdraft to be obtained
Personnel of General Reserve Engineer Force at the time of opening new accounts /conversion
 Para Military Salary Package (PMSP)- For of existing accounts and limit set up ab-initio.
Personnel of Central Reserve Police Force (CRPF);
Commando Battalion for Resolute Action
(COBRA), under Command & Control of CRPF;
Sashastra Seema Bal (SSB); Border Security Force
(BSF); National Security Guards (NSG); Indo
Tibetan Border Police (ITBP) & Central Industrial
Security Force (CISF)
 Railway Salary Package (RSP)- For Personnel of
Indian Railways
 Police Salary Package (PSP)- For permanent
employees of Central Police Organisations and
Police Forces of States and Union Territories
 Indian Coast Guard Salary Package- A new salary
package scheme is launched
 State Govt Salary Package (SGSP)- Concession will
be available to those employees who maintain
their salary account with SBI only
 Central Govt Salary Package (CGSP)- Permanent
employees of all ministries and department of
Central Govt including defence civilians are
covered by the scheme already. Now employees
of RBI and NABARD are also included.
 Variants of Salary A/cs in all theses Salary
Packages
Four (Silver, Gold, Diamond & Platinum)
Page
17
 [Type the document title]
June 4, 2010

QUICK SUCCESS SERIES is an

initiative of SBLC Deoghar to facilitate

Quick the preparation of promotion seeking

personnel of our Bank, appears to
have succeeded in its objective to a

Success large extent as the readers are still

approaching us for
revision/updation despite availability
its

Series of plenty of other study materials.

We would not have been able to

sustain this unique effort of ours,
without the active support and
continuous encouragement of our
DGM cum Circle Development officer
Sri Bijayananda Padhi. We are deeply
indebted to him for his co-operation
and guidance.

Sri Rakesh Roshan, Chief Manager

(Training) , Sri Kumar Priyank, Chief
Manager (Training) ,Sri Sanjay Kumar
Sharma Manager (Training) and Sri
Jitendra Kumar Arun Manager
(Training) at this SBLC have owned
Govt Sponsored Schemes up this project and have taken pains
to keep it relevant to the users by

UPDATED UPTO updating & improving it at half yearly

interval.

31 st OCTOBER 2016 Though every care has been taken

while updating the contents, we
request our readers to point out any
lapses at the earliest. Needless to
mention that this book is not a
substitute of circular instructions
issued by the Bank from time to time.
For detailed guidelines please refer to
Bank’s latest circulars. Soft copy of
this edition is available on our
ftp://10.151.51.33 in QSS folder and on
SBI TIMES>PATNA CIRCLE>SBLC
Deoghar site.

Team SBLC Deoghar is humbled by

the response and recognition; it is
receiving from readers within and
beyond the circle. Our Team wishes
the readers grand success in their
endeavors.

Abhishek Kumar Sharma

Updated By Kumar Priyank Assistant General Manager,
Chief Manager, SBLC Deoghar State Bank Learning Centre,
Mobile- 7321805713 Deoghar- 814112
Email- k.priyank@sbi.co.in Phone- 06432-232895
Fax - 06432-231810
E-mail: agmstc.deoghar@sbi.co.in

Page 1
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
PRADHAN MANTRI MUDRA YOJANA (PMMY)
The Micro Units Development and Refinance
Agency (MUDRA) has been launched by the
Hon’ble Prime Minister on 8th April, 2015 as a
new financial entity for developing and
refinancing last mile financial intermediaries like
Banks, NBFCs, MFIs, who are in the business of
lending to smaller of the micro enterprises in
manufacturing, trading and services sector.
Pradhan Mantri MUDRA Yojana (PMMY) has also
been launched to “fund the unfunded”, i. e. to
provide credit to micro enterprises / units in the
country, which are outside the formal banking
fold. It has been decided by GOI that the loans to
this segment for income generation will be
known as MUDRA loans under the Pradhan
Mantri MUDRA Yojana (PMMY) and branded
accordingly.
All advances granted on or after 8th April, 2015
to non-farm enterprises in Manufacturing,
Trading and Services with credit limits upto Rs 10
lac, are to be classified as MUDRA Loans under
PMMY under three categories, such as Shishu,
Kishore & Tarun as per the loan value of upto Rs
50000, Rs 50001 to Rs 5 lac and >Rs 5 lac to Rs 10
lac respectively. All such loans can be covered
under refinance and/or credit enhancement
products of MUDRA. The application forms for
such loans shall carry the name “Pradhan Mantri
MUDRA Yojana (PMMY)”.
In addition to above,
(i) Overdraft amounts of Rs 5000/- sanctioned
under Pradhan Mantri Jan Dhan Yojana (PMJDY)
are also to be classified as MUDRA loans under
PMMY.
(ii) Loans with credit limits upto Rs 10 lac
sanctioned to non-farm enterprises under Rural
Business segment for manufacturing, trading and
services shall also be categorised as MUDRA
loans with sub-categories such as, Shishu,
Kishore & Tarun as per the loan value of upto Rs
50000, Rs 50001 to Rs 5 lac and >Rs 5 lac to Rs 10
lac respectively. The application forms for such
loans shall also carry the name “Pradhan Mantri
MUDRA Yojana (PMMY)”.
Page 2
(SB-OD) – MUDRA LOAN, OVERDRAFT UPTO Rs.
5000/- UNDER PMJDY, MODIFICATIONS IN
LOAN PROCEDURE (e-cir dt 1122 dt 09/12/2015)
a) The concerned branch will process eligible
PMJDY SB OD. There is no need for the customer
to visit the branch to avail the loan.
b) On getting message from New Project
Department for successful OD mapping with
NPCI, the branch will approve the limit and send
an intimation letter through Registered Post,
preferably in local language. (specimen enclosed)
Duplicate copy of this letter will be retained by
the Branch for record.
c) Obtention of loan documents has been
dispensed with for these loans.
PRADHAN MANTRI AWAS YOJANA
CREDIT LINKED SUBSIDY SCHEME
Government of India under the aegis of the
Ministry of Housing and Urban Poverty
Alleviation (MoHUPA) has launched ‘Credit
Linked subsidy Scheme (CLSS)’ for Urban Areas
under the ambit of Pradhan Mantri Awas Yojana.
The CLSS will be
implemented upto 31st March, 2022 in all 4041
statutory towns as per 2011 census. The list of all
statutory towns eligible under this scheme has
been uploaded on REHBU site (under downloads
link). Under the Scheme, credit linked interest
subsidy @6.50% for a tenor of 15 years or actual
tenor of the loan, whichever is lower, will be
provided to the eligible beneficiaries in EWS/LIG
category by the Government of India. The Net
Present Value (NPV) of the subsidy will be
calculated at a discount rate of 9% and will be
credited to the loan account directly.
Eligible Loans under CLSS- Scope and Coverage:
Credit Linked Subsidy will be available for
housing loans availed for
acquisition/construction of house.
The credit linked subsidy will be available for loan
amount upto Rs. 6 lacs. The Bank may sanction
Home Loans more than Rs. 6 lacs also. However,
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
wherever the limit is more than Rs. 6 lacs, the
subsidy will remain available for loan amount
upto Rs. 6 lacs only.
The EWS/LIG beneficiaries under this Scheme
have been defined as under:
(a) EWS households with an annual income upto
Rs. 3 lacs, (b) LIG households with an annual
income above Rs. 3 lacs and upto Rs. 6 lacs,
The beneficiary family should not own a pucca
house (an all weather dwelling unit) either in
his/her name or in the name of any member of
his/her family in any part of India.
For identification of beneficiary under the
Scheme, all applicants will be required to submit
undertaking on prescribed format (enclosed at
Annexure-A) as proof of house hold Income.
However, ITR/Form-16/Salary Certificate will
continue to be obtained from applicants/co-
applicants in terms of extant instruction.
All loans accounts under the Scheme will be
linked to Aadhaar or Voter Card or PAN Card.
The carpet area of house under this Scheme
should be upto 30 sq. mts. For EWS beneficiaries
and upto 60 sq. mts. for LIG beneficiaries.
Subsidy will be disbursed maximum in 4
installments in proportion to the disbursements
made in loan account. Bank will directly credit
subsidy amount to beneficiary’s loan account
which will effectively reduce loan amount of the
beneficiaries.
The borrower has to complete the construction
of house or to take possession of the house
within a period of 36 months. CPCs/Branches
shall have to
submit a consolidated certificate on completion
of the housing unit within one year period from
the completion of construction or a maximum of
36 months from the date of the disbursement of
the 1st installment of the loan amount. In case of
default in not providing completion certificate by
the CPCs/Branches within stipulated period or
the loan account becoming NPA, Bank will
Page 3
require to recover the subsidy amount already
released for refund to the Government of India.
In case a borrower who has taken a Home Loan
under the Scheme from other Bank and has
availed interest subvention benefit under the
Scheme but later on switch-over to our Bank,
such beneficiary will not be eligible for the
benefit of interest subvention again.
CPC/Branches will not recover processing fee
from the beneficiaries. A lump sum amount of Rs.
1000/- per sanctioned application will be paid to
the Bank by the Government in lieu of the
processing fee.
In the event of default in repayment of the loan
by the borrowers and the loan becoming NPA,
the CPCs/Branches will proceed for recovery of
the dues through appropriate recovery
measures. In all such cases, the recovery will be
charged to the subsidy amount on a
proportionate basis (in proportion to the loan
outstanding and subsidy disbursed).
ATAL PENSION YOJANA (APY)
Background: APY is a fixed pension scheme
announced by the Finance Minister in his Budget
Speech for 2015-16. APY is for all citizens in the
unorganized sector who are not members of any
statutory social security scheme. The scheme is
administered by Pension Fund Regulatory and
Development Authority (PFRDA) and the Central
Record Keeping Agency is National Securities
Depository Limited (NSDL). All our branches are
required to be enabled to offer this product.
Eligibility: All citizen of the country (organised
&unorganised).
Benefit of APY: The guaranteed minimum
pension for the subscriber ranging between Rs.
1,000/- to Rs.5,000/- would be available, if he
joins and contributes between the age of 18
years and 40 years. The contribution levels would
vary and would be low if subscriber joins early
and increase if he joins late.
Central Government co-contribution : The
Central Government co-contribution is payable
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
into subscriber’s Savings Bank account at the end
of financial year once subscriber has made the
entire contribution for the year and this co-
contribution would be transferred to the APY
account by the
bank.
Periodicity of subscription : The subscribers
should keep the required balance in their savings
bank accounts on the stipulated due dates to
avoid any late payment penalty. The monthly /
quarterly / half-yearly contribution must be
deposited on the first date of
month/quarter/half year in the saving bank
account. However, if there is inadequate balance
in the SB account of the subscriber till the last
day of the month /last date of the first month in
a quarter /last day of the first month in a half
year, it will be treated as default and
contribution will have to be paid in a subsequent
month along with overdue interest for delayed
payment.
KYC Document : Aadhaar would be the
recommended KYC document for identification
of
beneficiaries, spouse and nominees to avoid
pension rights and entitlement related disputes
in the long-term. However, it is not mandatory at
the time of enrolment.
Penalty on default of subscription: Overdue
interest for delayed contribution Rs. 1/- per
month for contribution for every Rs. 100/-, or
part thereof, for each delayed monthly payment.
Overdue interest for delayed contribution for
monthly/ quarterly / half-yearly mode of
contribution shall be recovered accordingly. The
overdue interest amount collected will remain as
part of the pension corpus of the subscriber.
Pension Payment on attaining superannuation :
i) upon completion of 60 years, the subscriber
will submit the request to the Associated Bank
for drawing the guaranteed minimum monthly
pension or higher monthly pension. If investment
returns are higher than the guaranteed returns
embedded in APY the same amount of monthly
pension amount is payable to spouse (default
nominee) upon death of subscriber. Nominee will
Page 4
be eligible for return of pension wealth
accumulated till age 60yrs of the subscriber upon
death of both the subscriber and spouse.
ii. Each subscriber under APY shall receive a
Central Government Guaranteed minimum
pension of Rs 1,000/- per month to Rs 5,000/-
per month after attaining the age of 60 years
until death.
iii. After the subscriber's demise, the spouse of
the subscriber shall be entitled to receive the
same pension amount as that of the subscriber
until the death of spouse.
iv. After the demise of both the subscriber and
the spouse, the nominee of the subscriber shall
be entitled to receive the pension wealth, as
accumulated till age 60 of the subscriber.
Exit before Superannuation :
i. Exit before 60 years of age is generally not
permitted, it may be permitted only in
exceptional circumstances, i.e., in the event of
the death of beneficiary or specified illness, as in
the Pension Fund Regulatory Authority (Exit and
withdrawal under the National Payment System)
regulation, 2015 before the age of 60.
ii. Subject to the conditions as mentioned above
(i), in case a subscriber who has availed
Government co-contribution under APY, chooses
to voluntarily exit APY at a future date, he shall
only be refunded the contributions made by him
to APY, along with the net actual interest earned
on his contributions (after deducting the account
maintenance charges). Whereas, the
Government co-contribution, and the interest
earned on the Government co-contribution, shall
not be returned to such subscribers.
PRIME MINISTER EMPLOYMENT GENERATION
PROGRAMME (PMEGP)
-Introduced by merging 2 schemes that were in
operation till 31.03.08 - PMRY (Prime Minister’s
Rojgar Yojna) and REGP (Rural Employment
Generation Programme) for generating
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016

employment through micro-enterprises in rural SC/ST/OBC /

as well as urban areas. Minorities/
-Scheme is administered by Ministry of Micro, Women, Ex-
Small and Medium Enterprises servicemen,
-Eligibility Conditions of Beneficiaries Physically
(i) Any individual, above 18 years of age handicapped,
(ii) There will be no income ceiling for assistance NER, Hill and
for setting up projects under PMEGP. Border areas etc)
(iii) For setting up of project costing above Rs.10 Quantum of Finance- (1) The maximum cost of
lakh in the manufacturing sector and above Rs. 5 the project/unit admissible under manufacturing
lakh in the business /service sector, the sector is Rs. 25 lakh.
beneficiaries should possess at least VIII standard (2) The maximum cost of the project/unit
pass educational qualification. admissible under business/service sector is Rs. 10
(iv) Assistance under the Scheme is available only lakh.
for new projects sanctioned specifically under
the PMEGP. (3) The balance amount of the total project cost
(v) Self Help Groups (including those belonging to will be provided by Banks as term loan.
BPL provided that they have not availed benefits
under any other Scheme) are also eligible for Repayment: 3 to 7 years after an initial
assistance under PMEGP. moratorium period of maximum 12 months
(vi) Institutions registered under Societies -Nodal Agency: (KVIC), Mumbai, single nodal
Registration Act,1860; agency at the national level
(vii) Production Co-operative Societies, and -Implementing agencies in Rural Areas: State
(viii) Charitable Trusts. Directorates of KVIC, State Khadi and Village
(ix) Existing Units (under PMRY, REGP or any Industries Boards (KVIBs) and District Industries
other scheme of Government of India or State Centres
Government) and the units that have already -Implementing Agency in Urban Area - State
availed Government Subsidy under any other District Industries Centres (DICs) only
scheme of Government of India or State -Identification of beneficiaries will be done at
Government are not eligible. district level by a Task Force consisting of
representatives of KVIC, DIC and Banks headed
One person from one family. Family includes self by DC
and spouse. -After conduct of Entrepreneur Development
-Other Eligibility Conditions Programme training, the beneficiary will deposit
1. Relevant Caste certificate. owner’s contribution with bank
2. Certified copy of bye-laws of the institution -Margin Money (Subsidy) claim will be submitted
3. Project without capital expenditure is not by the Bank after partial/ full finance. Released
eligible. Project above Rs 5 lacs not requiring Subsidy will be kept in TD for 3 yrs favouring the
Working capital needs clearance from Controller. beneficiary. No interest on TD and corresponding
4. Cost of land should not be included in Project amount of loan. Subsidy kept in TD will be
5. All new viable micro-enterprises including transferred to loan a/c after 3 yrs .
village industries
-Effective FY 2013-14, the implementing
Categories of Beneficiary’s Rate of agencies (KVIC, KVIB and DICs ) will forward the
beneficiaries own Subsidy PMEGP applications to financing branches only
under PMEGP contribution Urban Rural after entering the applications in the e-tracking
(of project system. The financing branches should enter the
cost) data relating to sanction and disbursement in the
General Category 10% 15% 25% e-tracking system. The KVIC has advised that it
Special (including 5% 25% 35% will not release Margin Money subsidy in respect

Page 5
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
of those applications which have not been
processed through e tracking system. The
financing branches should accept the
applications of PMEGP scheme only if they are
entered in the e-tracking system; otherwise they
should reject the application forms outright.
(Circular No. : NBG/RRBLBCSB-LB/1/2013 – 14th
June 07,2013.)
Inclusion of SHGs under the PMEGP:
SHGs (including those belonging to BPL) can also
be financed under the PMEGP provided, they
have not availed benefits under any other
scheme. (e-manual, vol 6, page 372)
SWARNA JAYANTI SHAHARI ROJGAR YOJNA
-Operative from 1st Dec 1997 in all urban towns
after replacing three schemes- Nehru Rojgar
Yojna (NRY), Urban Basic Services for the Poor
(UBSP) & Prime Minister’s Integrated Urban
Poverty Eradication Programme (PMIUPEP)
-Purpose: To provide gainful employment to
unemployed or underemployed urban poor living
below the urban poverty line
-Funding of Scheme between Centre and States
on 75: 25 basis
On 90:10 basis for Special Category States (NE,
Sikkim, J&K, HP & Uttarakhand)
-Components of scheme where credit from banks
is involved – Urban Self Employment Programme
(USEP) & Urban Women Self- Help Programme
(UWSP)
URBAN SELF EMPLOYMENT PROGRAMME
(USEP) -ASSISTANCE TO INDIVIDUAL URBAN
POPULATION BELOW POVERTY LINE AS DEFINED
BY PLANNING COMMISSION
-Sub target – Women (Not less than 30%), SC/STs
(Proportionate to their BPL Population in city),
Disabled (3%), Minorities (15% of Physical &
Financial Targets)
-No Minimum or Maximum Educational
Qualification
-Age – Min 18 years at the time of applying for
loan
-Residing in the town for at least 3 years
-Should not be a defaulter to any bank/FI
-Maximum Project Cost Rs 200000/- for
individual
Page 6
-In case of partnership, share of each person in
project should be Rs 200000/- or less
-Loan Amount – 95% of Project Cost including
subsidy (Interest to be charged on loan
component only)
-Subsidy- 25 percent of Project Cost subject to a
ceiling of Rs 50000/- per beneficiary
-In case of partnership, subsidy would be
calculated for each partner separately at
-Margin Money- 5 percent of project cost per
beneficiary
-Security – No collateral or Guarantee
-Repayment- 3 to 7 years after initial moratorium
of 6 to 18 months
Urban Women SELF HELP GROUP (UWSP)
Assistance to Urban Poor Women taking up any
group activity
-Age – Members should be of Min 18 years at the
time of the group applying for loan
-Should not be defaulter to any Bank/FI
-Group shall consist of at least 5 urban poor
women
-Project Cost – No Maximum Limit
-Subsidy- 35% of project cost subject to a ceiling
of Rs 3.00 Lakhs or Rs 60000/- per beneficiary
-Margin money- 5% of project cost by group as a
whole
-Loan Component: Project Cost - Margin (5% of
Project Cost) - Subsidy
-Security- No collateral or Guarantee
-Repayment - 3 to 7 years after initial
moratorium of 6 to 18 months
NATIONAL RURAL LIVELIHOOD MISSION (
NRLM) – AAJEEVIKA ( E circular 339/ July 12,
2013) - CBS Scheme Code – 09097
-The Ministry of Rural Development, Government
of India has launched National Rural Livelihood
Mission (NRLM) by restructuring Swarnajayanti
Gram Swarozgar Yojana (SGSY) replacing the
existing SGSY scheme, effective from April 1,
2013.
- NRLM is the flagship program of Govt. of India
for promoting poverty reduction through
building strong institutions of the poor,
particularly women, and enabling these
institutions to access a range of financial services
and livelihoods services.
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
KEY FEATURES :
-Universal Social Mobilization: To begin with,
NRLM would ensure that at least one member
from each identified rural poor household,
preferably a woman, is brought under the Self
Help Group (SHG) network in a time bound
manner. NRLM would ensure adequate coverage
of vulnerable sections of the society such that
50% of the beneficiaries are SC/STs, 15% are
minorities and 3% are persons with disability,
while keeping in view the ultimate target of
100% coverage of BPL families.
-Participatory identification of poor (PIP): NRLM
will undertake community based process i.e.
participation of the poor process to identify its
target group. Up to 30% of the total membership
of the SHGs may be from among the population
marginally above the poverty line, subject to the
approval of the BPL members of the group. This
30% also includes the excluded poor, those who
are really as poor as those included in BPL list but
their name does not figure in the list.
-Promotion of Institutions of the poor: NRLM
would promote specialized institutions like
Livelihoods collectives, producers’
cooperatives/companies for livelihoods
promotion
-Strengthening all existing SHGs and federations
of the poor
-Emphasis on Training, Capacity building and
skill building
-Revolving Fund and Community investment
support Fund (C.I.F): Revolving Fund would be
provided to eligible SHGs as an incentive to
inculcate the habit of thrift and accumulate their
own funds towards meeting their credit needs in
the long-run and immediate consumption needs
in the short-run.
Universal Financial Inclusion: NRLM would work
towards achieving universal financial inclusion,
beyond basic banking services to all the poor
households, SHGs and their federations.
-Provision of Interest Subvention:
NRLM has a provision for subvention on interest
rate above 7% per annum for all eligible SHGs,
who have availed loans from mainstream
financial institutions.
- Funding Pattern between Centre and States on
75: 25 basis (90:10 in case of North Eastern
Page 7
States including Sikkim; completely from the
Centre in case of UTs).
-Phased Implementation:
-Intensive blocks : The blocks that are taken up
for implementation of NRLM, ‘intensive blocks’,
would have access to a full complement of
trained professional staff and cover a whole
range of activities.
Rural Self Employment Training Institutes
(RSETIs) : The model envisages transforming
unemployed youth into confident self- employed
entrepreneurs through a short duration
experiential learning programme followed by
systematic long duration hand holding support.
-Eligibility: upto 30% of the total membership of
the SHGs may be from among the population
marginally above the poverty line, subject to the
approval of the BPL members of the group.
-Loan amount:
First dose: 4-8 times to the proposed corpus
during the year or Rs. 50,000 whichever is higher.
Second dose: 5-10 times of existing corpus and
proposed saving during the next twelve months
or Rs. 1 lakhs, whichever is higher.
Third dose: Minimum of Rs. 2 lakhs, based on the
Micro credit plan prepared by the SHGs and
appraised by the Federations/Support agency
and the previous credit history
Fourth dose onwards: Loan amount can be
between Rs. 5-10 lakhs for fourth dose and/or
higher in subsequent doses. The loan amount will
be based on the Micro Credit Plans of the SHGs
and their members.
Type of facility and repayment : either Term
loan or a CCL loan or both. Repayment schedule
could be as follows:
-The first dose of loan will be repaid in 6-12
instalments
-Second dose of loan will be repaid in 12-24
months.
-Third dose will be sanctioned based on the
micro credit plans, the repayment has to be
either monthly/quarterly /half yearly based on
the cash flow and it has to be between 2 to 5
Years. Fourth dose onwards: repayment has to
be either monthly/quarterly /half yearly based
on the cash flow and it has to be between 3 to 6
Years
Security and Margin:
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
No collateral and no margin will be charged upto
Rs. 10.00 lakhs limit to the SHGs.
DIFFERENTIAL RATE OF INTEREST (DRI) SCHEME
The target for lending under DRI scheme will be
1% of the previous years’ total advances.
-Family income of the borrower from all sources
should not exceed Rs.18000/- in Rural areas and
Rs. 24000/- in Urban and Semi urban area per
annum
-Land holding should not exceed 1 acre of
irrigated land or 2.5 acres of non irrigated land
-SC/ST borrowers are eligible for finance
irrespective of their land holdings
-Applicant should not have been assisted under
any of the subsidy linked scheme
-Orphanages and women’s homes where
saleable goods are made and for which no
adequate and dependable source of finance exist
& Institutions of physically handicapped persons
pursuing a gainful occupation are also eligible
-Banks may also route credit under the scheme
through State Corporations for the welfare of
Scheduled Caste and Scheduled Tribes subject to
the beneficiaries of the corporation meeting the
eligibility criteria indicated above
-Quantum of Finance –
For Housing Purpose – Rs 20,000/-
For Others Purpose – Rs 15,000/-
-Target
i) Minimum of 40% of DIR advances to SC/ST
beneficiaries. 2/3rd of the advances should be
routed through Rural/Semi urban branch.
ii) Overall target for the Bank: 1% of the total
advances of the bank as on previous year
-Subsidy – NIL
-Margin – NIL
-Rate of Interest – 4% p.a. at simple rate
-Repayment – 5 Yrs including Moratorium Period
-Insurance - No insurance except for live stock. If
considered necessary, the premium amount
should be borne by the Bank
SCHEME FOR FINANCING AGRICULTURE
MARKETING INFRASTRUCTURE (AMI)
NABARD has advised that Gramin Bhandaran
Yojana & Scheme for Development/
Strengthening of Agriculture Marketing
Infrastructure, Grading and Standardization
Page 8
(AMIGS) are Subsumed in Scheme for Financing
Agriculture Marketing Infrastructure (AMI) w.e.f.
01/04/2014 into a new Scheme named
Agricultural Marketing Infrastructure (AMI) for
implementation during the 12th Plan period.
Nodal agency for subsidy management will be
NABARD. Min contribution of the promoter- 20%
of the project cost, min TL including subsidy- 50%
of the project cost. Will be classified under
Indirect Agri Advances except in case Loans to
farmers for pre and post-harvest activities which
will be classified under Direct Agri Advances. (e-
Circ- 402 dt 17/07/2014)
PRADHAN MANTRI FASAL BIMA YOJANA
The Government of India has launched ‘Pradhan
Mantri Fasal Bima Yojna’ (PMFBY) on the18th
February 2016, to enhance crop insurance
coverage. The revised scheme replaced the
existing schemes of National Agricultural
Insurance Scheme (NAIS) & Modified National
Agricultural Insurance Scheme (MNAIS) from
ensuing Kharif 2016 season. The revised scheme
would provide insurance cover for all stages of
the crop cycle, including post-harvest risks in
specified
instances. Weather Based Crop Insurance
Scheme (WBCIS) has also been modified and the
administrative provisions and operationalization
of the scheme have been brought at par with
PMFBY.
Implementation of the Scheme:
i. The Scheme shall be implemented through a
multi-agency framework by selected insurance
companies under the overall guidance & control
of the Department of Agriculture, Cooperation &
Farmers Welfare (DAC&FW), Government of
India (GOI) and the concerned State Government
/ UT.
ii. State Government / UT will issue notification,
at least one month in advance, of the
commencement of the crop season incorporating
all the essential details about insured crops.
Coverage of Farmers:
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
i. The scheme is applicable to all farmers,
including sharecroppers and tenant farmers,
growing the notified crops in the notified areas.
ii. Compulsory for loanee farmers and optional /
voluntary for non-loanee farmers.
Sum Insured / Coverage Limit:
i. The Scheme is implemented on an ‘Area
Approach Basis’ in the selected defined Areas
called Insurance Unit. State Government / UT will
notify Crops and Defined Areas covered during
the season.
ii. Sum Insured per hectare for both loanee and
non-loanee farmers will be same and equal to
the Scale of Finance (SOF) as decided by the
District Level Technical Committee. Sum Insured
for individual farmer is equal to the Scale of
Finance per hectare multiplied by area of the
notified crop proposed by the farmer for
insurance. ‘Area under cultivation’ shall always
be expressed in ‘hectare’.
Coverage of Crops & Risks:
i. Food crops (Cereals, Millets and Pulses),
Oilseeds & Annual Commercial / Annual
Horticultural crops are covered under the
scheme.
ii. Stages of the crop and risks leading to crop loss
covered are: a) Prevented Sowing / Planting Risk
(due to deficit rainfall or adverse seasonal
conditions) b) Standing Crop (Comprehensive risk
insurance to cover yield losses due to non-
preventable risk) c) Post-Harvest Losses –
{Coverage available only up to a maximum period
of 2 weeks from harvesting of the crop.
(Individual farm basis)} d) Localized Calamities
(individual farm basis)
Indemnity Level & Premium Rates:
i. The three levels of Indemnity, viz., 70%, 80%
and 90% corresponding to crop Risk in the areas
shall be available for all crops.
Page 9
ii. State Government notified seasonality
discipline for various activities under the scheme
viz. submission of insurance proposals,
consolidated declaration by banks, yield data,
claim assessment of losses for (i) standing crop
(ii) localized calamities (iii) prevented sowing (iv)
post-harvest loss, (v) on-account payment for
major calamities, etc as per the provision of the
scheme.
iii. There will be a uniform premium ranging from
2% for Kharif to 1.5% for Rabi for food crop,
oilseeds and pulses. In case of annual commercial
and horticultural crops, the premium will be 5%.
iv. The cut-off date is uniform for loanee and
non-loanee cultivators. Loaning period (loan
sanctioned) for Kharif April to July and for Rabi
October to December. The State –wise cut off
dates for difference crops shall be based on Crop
Calendar of major crops published from time to
time by the Directorate of Economics & Statistics.
SUKANYA SAMRIDDHI ACCOUNT
Sukanya Samriddhi Account has been introduced
vide Government of India Notification No.
G.S.R.863(E) dated December 02, 2014 and
circulated to Banks by Reserve Bank of India vide
their letter No.RBI/2014-
15/494/IDMD(DGBA).CDD/No.4052/15.02.006/2
014-15 dated 11th March 2015 which was
received by us on 17th March 2015.
The salient features of the Account in brief are
enumerated below:
Objective: To promote the welfare of Girl Child
Authorized Institutions: Post Office and
Commercial Bank branches authorized to open
PPF accounts.
Who can open the account: A natural/ legal
guardian on behalf of a girl child
Maximum number of accounts: Upto two girl
children or three in case of twin girls as second
birth or the first birth itself results in three girl
children
Minimum and Maximum Amount of Deposit:
Min.1000 of initial deposit with multiple of one
hundred rupees thereafter with annual ceiling of
Rs.150000 in a financial year
Tenure of the Deposit: 21 years from the date of
opening of the account
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
Maximum period upto which deposits can be
made: 14 years from the date of opening of the
account
Interest on Deposit: As notified by the GOI,
compounded annually with option for monthly
interest pay-outs to be calculated on balance in
completed thousands, w.e.f 01/10/2016-8.5%
p.a.
Premature Closure: Allowed in the event of
death of the depositor. Also allowed in cases of
extreme compassionate grounds such as medical
support in life threatening diseases to be
authorized by an order by the Central
Government
Irregular Payment/ Revival of account: By
payment of penalty of Rs.50 per year along with
the minimum specified amount per year
Mode of Deposit: Cash/Cheque/ Demand Draft
Withdrawal : 50% of the balance lying in the
account as at the end of previous financial year
for the purpose of higher education, marriage
after attaining the age of 18 years
PRADHAN MANTRI JAN-DHAN YOJANA (PMJDY)
National Mission for Financial Inclusion to ensure
access to financial services, namely, Banking/
Savings & Deposit Accounts, Remittance, Credit,
Insurance, Pension in an affordable manner.
Account can be opened in any bank branch or
Business Correspondent (Bank Mitr) outlet.
PMJDY accounts are being opened with Zero
balance. However, if the account-holder wishes
to get cheque book, he/she will have to fulfill
minimum balance criteria.
Benefits:
1. Interest on deposit.
2. Accidental insurance cover of Rs.1.00 lac
3. No minimum balance required.
4. Life insurance cover of Rs.30,000/-
5. Easy Transfer of money across India
6. Beneficiaries of Government Schemes will get
Direct Benefit Transfer in these accounts.
Page
10
7. After satisfactory operation of the account for 6
months, an overdraft facility will be permitted
8. Access to Pension, insurance products.
9. Accidental Insurance Cover, RuPay Debit Card
must be used at least once in 45 days.
10. Overdraft facility upto Rs.5000/- is available in
only one account per household, preferably lady
of the household.
PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (e-
cir 319 dt 07/06/2016)
Insurance Scheme offering life insurance cover for
death due to any reason.
The savings bank account holder of the participating
banks aged between 18 years completed) and 50
years (age nearer birthday) and who have given the
consent to join the scheme during the ‘enrollment
period’ are eligible to join the scheme.
Premium to be deducted from member’s SB Account.
The premium is Rs.330/- plus Service Tax (if payable)
irrespective of date of entry i.e. during enrollment
period or after that date during the first year.
Renewal premium is chargeable as per the rate
decided from time to time on Annual Renewal dates.
An assurance of Rs.2,00,000/- on death of the
insured member is payable to the Nominee
Upon the death of the Member prior to Terminal
Date, the sum assured under the Assurance shall be
payable to the nominated Beneficiary, provided the
assurance is kept in force by payment of premium for
that member provided the claim is otherwise
admissible and subject to the 45-days exclusion
clause as detailed under exclusions.
The Assurance on the life of a Member shall
terminate on an Annual Renewal Date upon
happening of any of the following events and no
benefit will become payable thereunder:-
a. On attaining age 55 years (age neared birthday) on
annual renewal date.
b. Closure of account with the Bank or insufficiency
of balance to keep the insurance in force.
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
c. In case a member is covered through more than
one account and premium is received by SBI Life
inadvertently, insurance cover will be restricted to
Rs. 2 Lakh only and the premium shall be liable to be
forfeited.
d. The date on which the claim on insured member is
settled by a bank in case the member was insured by
more than one bank/ branch of the same bank where
he/she was having more than one savings account.
The Grace Period for payment of premium to SBI Life
shall be 30 days from the due date. In case of death
during Grace Period, assured benefit as defined in
rule 7 shall be settled on receipt of premium.
There will be no Surrender value or Maturity Value
payable under the policy.
It has been decided to incorporate a lien clause in
the rules of PMJJBY with effect from 1st June, 2016,
whereby claims for deaths which occur during the
first 45 days from the date of enrollment will not be
paid, effectively meaning that the risk cover will
commence only after the completion of 45 days
from the date of enrollment into the scheme by the
member. The date of enrolment means date of debit
of premium in customer account. However deaths
due to accidents will be exempt from this Lien
Clause.
PRIME MINISTER KAUSHAL VIKAS JOJANA PROJECT :
NEW SAVINGS BANK PRODUCT: NATIONAL SKILL
DEVELOPMENT CORPORATION-TRAINEE’S ACCOUNT
(e-cir 350 dt 15/06/2016)
To facilitate opening of Savings Bank accounts by the
beneficiaries/trainees under the scheme.
Indian individual at the age of 18 years &above who
undergoes a skill development training in an eligible
sector by an approved training partner of NSDC.
The account holders will be trainees of NSDC. The
training will be provided by the training institutions
and the cost of the training will be recovered from
the monetary incentive released by NSDC, after the
successful completion of the course. For this purpose
a hold equal to the amount payable to the training
Page
11
centre ,will be created in favour of the training
institution, and the money will be transferred to
training institution on completion of the training. To
this effect a mandate signed by the trainee will be
obtained at the time of account opening.
After auto transfer of the specified hold amount, the
account will be treated as normal SB account or
closed as per the mandate given by the trainee.
STAND UP INDIA (SUI) SCHEME :GUIDELINES AND
MONITORING UNDER STAND UP INDIA (e-cir 172 dt
05/05/2016)
The Stand up India scheme was launched by the
Prime Minister on 05.04.2016. The scheme
endeavours to create an eco system for SC, ST and
women entrepreneurs, which facilitates and
continues to provide a supportive environment for
doing business.
The objective of Stand Up India scheme is to facilitate
sanction of bank loans between Rs. 10 lakhs and Rs. 1
crore to atleast one Scheduled Caste (SC) or
Scheduled Tribe (ST) borrower and at least one
women borrower per Bank branch for setting up a
Greenfield enterprise in FY 2016-17. The enterprise
may be in manufacturing, services or the trading
sector. In case of non-individual enterprises atleast
51% of the shareholding and controlling stake should
be held by either SC / ST or Women entrepreneur.
Credit Guarantee Scheme for Stand Up India(CGSSI)
A New Credit Guarantee Scheme Launched by GOI
Stand Up India Scheme (SUI) (e-cir 731 dt
01/09/2016)
The scheme ‘Credit Guarantee Scheme for Stand Up
India (CGSSI)’ has come into force from the date of
notification by GOI i.e. 25.04.2016. Subsequently,
SIDBI has clarified us that the guarantee coverage will
be available for all the cases sanctioned since the
launch of SUI scheme i.e. 05.04.2016.
The National Credit Guarantee Trustee Company
(NCGTC) will act as the Trustee and operations of
CGSSI scheme would be undertaken by NCGTC on
behalf of the said Fund Trust. Our Bank has been
enrolled by NCGTC as a Member Lending Institution
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
(MLI) and necessary agreement has been executed
by the Bank.
Eligible Borrower –SC, ST and Women Entrepreneurs
above 18 years of age setting up Greenfield
Enterprises in non-farm sector. In case of non-
individual enterprises, 51% of the shareholding and
controlling stake should be held either by SC / ST and
/ or Women Entrepreneur.
Credit Facility – Financial assistance by way of Term
Loan and / or fund based and non-fund based
working capital (eg. Bank Guarantee, Letter of Credit,
etc.).
Scope and Extent of the scheme – The Trust shall
cover assistance of over Rs. 10 lacs and up to Rs. 100
lacs inclusive of WC extended without any Collateral
Security and / or Third Party guarantees or such
amount as may be decided by the Trust from time to
time, provided that: a) The dues have not become
bad or doubtful of recovery at the time of applying
for coverage. b) The business activity of the borrower
for which the credit facility was granted has not
ceased. C) The credit facility has not wholly or partly
been utilised for adjustments of any debts deemed
bad or doubtful of recovery without obtaining a prior
consent in this regard from the Trust.
The following credit facilities shall not be eligible for
being guaranteed under the Scheme: a) Any credit
facilities in respect of which risks are additionally
covered under a scheme operated/administered by
Deposit Insurance and Credit Guarantee Corporation
or the Reserve bank of India, to the extent they are
so covered. b) Any credit facilities in respect of which
risks are additionally covered by Government or by
any general insurer or any other person or
association of persons carrying on the business of
insurance, guarantee or indemnity, to the extent
they are so covered. c) Any credit facilities, which
does not conform to, or is in any way inconsistent
with, the provisions of any law, or with any directives
or instructions issued by the Central Government or
the Reserve Bank of India, which may, for the time
being, be in force. d) Any Credit facilities granted to
any borrower, who has availed of any other
composite loan covered under this Scheme or under
the schemes mentioned in clause (i), (ii) and (iii)
above, and where the lending institution has invoked
Page
12
the guarantee provided by the Trust or under the
schemes mentioned in clause (i), (ii) and (iii) above,
but has not repaid any portion of the amount due to
the Trust or under the schemes mentioned in clause
(i), (ii) and (iii) above, as the case may be, by reason
of any default on the part of the borrower in respect
of that composite loan. e) Any credit facility which
has been sanctioned by the lending institution
against collateral security and / or third party
guarantee. f) Any credit facility which has been
sanctioned by the lending institution which is not
conforming to the Stand Up India Scheme.
Interest Rate – The interest Rate to be charged by
the Member Lending Institution should be the lowest
applicable rate for the category (as per rating) and
should not in any case, be more than 3% p.a. over
the MCLR.
Lock in Period – A lock-in-period of 18 months has
been stipulated from the date of commencement of
guarantee cover or end of period of moratorium of
interest, whichever is later.
Time for applying for Guarantee coverage – For
availing the guarantee coverage, Bank will have to
apply for guarantee cover in respect of credit
proposals sanctioned in the quarter April-June, July-
September, October-December and January-March
prior to expiry of the following quarter viz. July-
September, October-December, January-March and
April-June respectively. For example facilities
sanctioned between 01.04.2016 –30.06.2016should
be lodged with the Trust latest by 30.09.2016.
Payment norms of Guarantee Fees – As per Bank’s
guidelines, guarantee fee is to be borne by the
borrower. A risk based guarantee fee (non-
refundable) of the sanctioned amount has to be paid
within 16 days from the end of the concerned
quarter in which the credit facility was sanctioned /
renewed. Further, a Management Certificate needs
to be furnished to the Trust within 10 days from the
end of the quarter. Thereafter, a Credit Guarantee
Demand Advice Note (CGDAN) would be issued by
NCGTC within 3 days of receipt of Management
Certificate and subsequently, the guarantee fee shall
be payable within 3 days from the issue of CGDAN.
Guarantee Fee with respect to NPA accounts in the
batch would continue to be paid till lodgement of
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
claim for such accounts. The Guarantee fee once paid
is non-refundable except under certain
circumstances like: a) Excess remittance b)
Remittance made more than once against the same
Stand Up India credit facility c) Annual guarantee fee
not due.
PRADHAN MANTRI SURAKSHA BIMA YOJANA
The scheme will be a one year cover, renewable from
year to year, Accident Insurance Scheme offering
accidental death and disability cover for death or
disability on account of an accident. All savings bank
account holders in the age 18 to 70 years in
participating banks will be entitled to join. In case of
multiple saving bank accounts held by an individual
in one or different banks, the person would be
eligible to join the scheme through one savings bank
account only. Aadhar would be the primary KYC for
the bank account.
Premium: Rs.12/- per annum per member
Benefits:
Death : Rs. 2 Lakh
Total and irrecoverable loss of both eyes or loss of
use of both hands or feet or loss of sight of one eye
and loss of use of hand or foot Rs. 2 Lakh
Total and irrecoverable loss of sight of one eye or
loss of use of one hand or foot Rs. 1 Lakh
Eligibility: The savings bank account holders of the
participating banks aged between 18 years
(completed) and 70 years (age nearer birthday) who
give their consent to join / enable auto-debit, as per
the above modality, will be enrolled into the scheme.
Deendayal Antyodaya Yojana -National Urban
Livelihoods Mission (DAYNULM) : SELF
EMPLOYMENT PROGRAMME (SEP
Financial assistance to individuals/groups of urban
poor for setting up gainful self-employment
ventures/ microenterprises, suited to their skills,
training, aptitude and local conditions.
The percentage of women beneficiaries under SEP
shall not be less than 30 percent. SCs and STs must
be benefited at least to the extent of the proportion
of their strength in the city/town population of poor.
A special provision of 3 percent reservation should be
made for the differently-abled under this program. In
view of the Prime Minister’s 15-Point Program for
Page
13
the Welfare of Minorities, at least 15 percent of the
physical and financial targets under this component
shall be earmarked for the minority communities.
The financial assistance available to urban poor in
setting up individual and group enterprises will be in
the form of Interest subsidy on the bank loans.
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 DAY-NULM. Interest
subsidy will be given only in case of timely repayment
of loan. Suitable certification from banks will be
obtained in this regard.
INDIVIDUAL APPLICANT :
Age: The prospective beneficiary should have
attained the age of 18 Years at the time of applying
for loan.
Project Cost (PC): The Maximum unit Project Cost for
individual microenterprises cases is ₹ 2,00,000 (₹
Two Lakhs).
Collateral on Bank Loan: No collateral required. As
per RBI guidelines, banks are mandated not to accept
collateral security in the case of loans up to ₹ 10
lakhs extended to units in the MSE sector. Therefore,
only the assets created would be hypothecated/
mortgaged/ pledged to banks for advancing loans.
The banks may approach Credit Guarantee Fund
Trust for Micro and Small Enterprises (CGTMSE)
setup by Small Industries Development Bank (SIDBI)
and Government of India for the purpose of availing
guarantee cover for SEP loans as per the eligibility of
the activity for guarantee cover.
Repayment: Repayment schedule ranges from 5 to 7
Years after initial moratorium of 6-18 months as per
norms of the banks.
Margin Money: No margin money should be taken
for loans up to ₹ 50,000 and for loans ranging from
₹50,000 - ₹10 lakhs, preferably 5% should be taken
as margin money and it should in no case be more
than 10% of the Project cost.
Type of Loan Facility: Bank may extend finance to
individuals for capital expenditure in the form of
Term Loan and Working Capital loans through Cash
Credit. Banks may also extend Composite Loans
consisting of Capital Expenditure and Working Capital
components, depending upon individual’s
requirement.
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
Group Enterprises (SEP-G) -Loan & Subsidy
A Self Help Group (SHG) or members of an SHG
constituted under DAY-NULM or a group of urban
poor for self-employment can avail benefit of
subsidized loans under this component from any
bank. The norms/ specifications for group 
microenterprise loans are as follows:

Eligibility Criteria: The group should have minimum 5 
members with a minimum of 70% members from
urban poor families. More than one person from the
same family should not be included in the same
group.
Age: All members of the group enterprise should
have attained an age of 18 years at the time of
applying for bank loan.
Project Cost (PC): The Maximum unit Project Cost for
a group finance for enterprise is ₹ 10,00,000 (₹ Ten
Lakhs).
Type of Loan: Loan can be extended either as a single
loan to the group functioning as one borrowing unit
or each member of the group can be provided
individual loans based on mutual trust and collateral
substitute among the group. The principles laid down
in the RBI circular on “Budget (2014-15)
Announcement Financing of Joint Farming Groups of
‘Bhoomi Heen Kisan’ dated 13th November, 2014”
and subsequent revisions should be followed in case
of loans to a group.
Type of Loan Facility: Bank may extend finance to
groups for capital expenditure in the form of Term
Loan and for Working Capital, through Cash Credit
Facility. Banks may also extend Composite Loans for
Capital Expenditure and Working Capital, depending
upon Group’s requirement.
Loan and Margin Money: Project Cost less the
beneficiary contribution (Margin Money) would be
made available as loan amount to the group
enterprise by the bank. No margin money should be
taken for loan up to ₹ 50000 and for higher amount
loans, preferably 5% should be taken as margin
money and it should in no case be more than 10% of
the project cost.
Collateral Guarantee on Bank Loan: No collateral/
guarantee required. Only the assets created would
be hypothecated/ mortgaged/ pledged to banks for
advancing loans. The banks may approach Credit
Page
14
Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE).
Repayment: Repayment schedule ranges from 5 to 7
Years after initial moratorium of 6-18 months as
decided by banks.
Credit Enhancement Guarantee Scheme for the
Scheduled Castes (CEGSSC):
A New Credit Guarantee Scheme Launched by GOI
for SCs Beneficiaries: A social sector initiative by
Ministry of Social Justice and Empowerment
(hereinafter referred to as MSJ&E) in order to
support the banks and financial institutions in the
form of credit guarantee, for providing financial
assistance to the schedule caste entrepreneurs.
Accordingly, a new scheme named as “Credit
Enhancement Guarantee Scheme for Scheduled
Castes (CEGSSC) has been launched by Ministry of
Social Justice and Empowerment (MSJ&E),
Government of India. Industrial Finance Corporation
of India Limited (ICFI) has been identified as the
nodal agency for the scheme to issue guarantee to
the banks and FIs who shall be encouraged to finance
schedule caste entrepreneurs at reasonable interest
rates Our Bank has been enrolled by IFCI as a
Member Lending Institution (MLI) and necessary
agreement has been executed by the Bank. All our
branches are now eligible to finance to SC
beneficiaries under the guarantee cover of CEGSSC
scheme & take maximum advantage of the scheme
of GOI, while financing Scheduled Caste (SC)
borrowers (e.cir.Sl. No. : 735/2015 – 16
dt:11/09/2015)& 988/2015-16 dt:05/11/2015)
Eligibility criteria and amount of guarantee cover of
the scheme :
• Small and Medium Enterprises, projects/units being
set up, promoted and run by Scheduled castes in
manufacturing and services sectors in the form of
Registered Companies, Societies, Partnership firms
(none of the partner shall be below the age of 18
years) having more than 75% shareholding held by
Scheduled Caste entrepreneurs/ promoters/
members with management control for the past 12
months OR sole proprietorships firms being into
existence and proprietorship of a scheduled caste
entrepreneur for past 12 months, ensuring asset
creation out of the funds deployed in the unit, which
 Quick Success Series – Govt Sponsored Schemes
October 31, 2016
are not covered under any State/Central Government
Subsidy/Grant Scheme shall be considered;
• Documentary proofs of being SC will have to be
mandatorily submitted by the entrepreneurs/
promotes/society members at the time of
submitting the proposals;
• The Scheduled Caste promoter(s)/ Partners/
Society members shall not dilute their stake
below 75% in the company/enterprise during the
currency of the loan.
• To be eligible for Guarantee Cover under the
Scheme, the banks/FIs shall submit to IFCI a copy
of the valid sanction letters/LoI issued to
Scheduled Caste beneficiary/ enterprise/
company/firm/society. (e-cir 363 16/06/2016)
Credit Guarantee Fund for Micro Units (CGFMU)
New Guarantee Scheme Launched by GOI for
providing guarantee to loans under Pradhan
Mantri Mudra Yojana (PMMY) (e-cir 733 dt
01/09/2016)
Ministry of Finance (Department of Financial
Services) vide notification dated 18th April, 2016,
had announced a new Credit Guarantee Scheme
to guarantee loans extended under Pradhan
Mantri Mudra Yojana (PMMY). The scheme
‘Credit Guarantee Fund for Micro Units
(CGFMU)’ has come into force from the date of
notification by Government of India.
As per the scheme micro loans up to the
specified limit (currently Rs.10 lakh) extended by
Member Lending Institution to an eligible
borrower, provided that the lending institution
applies for guarantee cover in respect of such
loans so sanctioned within such time period and
as per procedures prescribed by the Fund for the
purpose.
Further, Overdraft loan amount of Rs.5,000/-
sanctioned under PMJDY accounts shall also be
eligible to be covered under Credit Guarantee
Fund. The micro loans under PMMY inclusive of
overdraft under PMJDY, sanctioned since 8th
April 2015 would qualify for guarantee cover
under the scheme.
Guarantee Cover – Maximum cover available per
portfolio, based on the amount in default. The
Page
15
first 5% of the amount in default will be borne by
the Bank. Above 5% (if applicable) will be settled
by the fund to the extent of 50% on pro-rata
basis, subject to the receipt of an Auditor’s
certificate confirming eligible claim amount.
The claim will be in the nature of “First Loss
Portfolio Guarantee”, wherein the loss to the
extent of 5% of the crystallized portfolio of the
Bank, will be borne by the Bank and therefore
will be excluded from the claim. Out of the
balance portion, the extent of guarantee will be
to a maximum extent of 50% of “Amount in
Default’ in the portfolio or such percentage as
may be advised by the Fund from time to time on
pro-rata basis.
Invocation of the guarantee –The Bank may
invoke the guarantee in respect to the amount in
default out of the crystallized portfolio of Micro
Loans subject to the condition of First Loss
Guarantee, after a lock-in-period of 12 months
from the date of crystallization of the portfolio
and thereafter, at the end of every financial year.
Payment of Claims – The Fund shall pay eligible
claim amount within 60 days, subject to the claim
being otherwise found in order and complete in
all respects. The Fund shall pay to the Bank
interest on the eligible claim amount at the
prevailing Bank Rate for the period of delay
beyond 60 days. If serious deficiencies are found
in appraisal / renewal / follow-up / conduct of
Micro Loans or where lodgment of claim was
more than once or where there is any
suppression of material information by the Bank
for settlement of claims then the Bank will have
to refund the claim with penal interest.
NOTE : MARGINAL COST OF FUNDS BASED
LENDING RATE (MCLR), REVISED INTEREST RATE
STRUCTURE FOR GOVT SCHEMES W.E.F.
01.04.2016 has been provided in the e-cir
118/2016-17 dt 27th April, 2016.
 Quick Success Series - Technology
 April 24, 2010

Quick Success QUICK SUCCESS SERIES is an initia-

tive of SBLC Deoghar to facilitate the
preparation of promotion seeking per-
Series sonnel of our Bank, appears to have suc-
ceeded in its objective to a large extent as
the readers are still approaching us for its
revision/updation despite availability of
plenty of other study materials.

We would not have been able to sustain

(UPDATED UP TO 31th OCTOBER
this unique effort of ours, without the
active support and continuous encou-
ragement of our DGM cum Circle Devel-
opment officer Sri Bijayananda Padhi.
We are deeply indebted to him for his co-
operation and guidance.

2016) Sri Rakesh Roshan, Chief Manager

Deposit General (Training), Sri Mukul Manohar, Chief

Manager (Training),Sri Sanjay Kumar
Sharma,Manager(Training),and Sri Ji-
tendra Kumar Arun,Manager(Training)
at this SBLC have owned up this project
and have taken pains to keep it relevant
to the users by updating & improving it
 at half yearly interval.

Though every care has been taken while

updating the contents, we request our
readers to point out any lapses at the ear-
liest. Needless to mention that this book is
not a substitute of circular instructions
issued by the Bank from time to time. For
detailed guidelines please refer to Bank’s
latest circulars. Soft copy of this edition is
available on our ftp://10.151.51.33 in QSS
folder and on SBI TIMES>PATNA CIR-
CLE>SBLC Deoghar site.

Team SBLC Deoghar is humbled by the

response and recognition; it is receiving
from readers within and beyond the cir-
cle. Our Team wishes the readers grand
success in their endeavors.

Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Updated By: Sanjay Kumar Sharma Phone- 06432-232895
Manager- Training, SBLC Deoghar Fax - 06432-231810
Mobile- 9934435855 E-mail: agmstc.deoghar@sbi.co.in
Email- sanjay.kr.sharma@sbi.co.in Fax - 06432-231810
E-mail: agmstc.deoghar@sbi.co.in

 [Type text] Page 1

 Quick Success Series –Deposit: General
31th OCTOBER, 2016
Various Types of Depositor
 (i) Minor (ii) Married Woman (iii) Pardanashin
Woman (iv) Lunatics (v) Drunken Person (vi)
Deaf/Dumb & also illiterate (vii)Visually im-
paired/blind persons (vii) Insolvents (viii) Official
Liquidator (ix) Agents & Attorneys (x) Executors &
Administrators (xi) Trust (xii) Joint Hindu family
(xii) Partnership (xiii) Joint Stock Companies.
 Relationship between Banker & Customer in
case of Deposit Account – Debtor & Creditor
Minor
 A person below 18 years of age is Minor as
per Sec 3 of The Majority Act (also applicable
in case guardian of minor is appointed by
court)
 Any contract with minor is void ab-initio as per
S-11 of Indian Contract Act
 The minors' accounts opened are not allowed
to be overdrawn and operating staff members
will ensure that accounts always remain in
credit.
 Any contract entered into by a Minor for meet-
ing the necessaries of his/her life is not void and
such contract is called Quasi-Contract (As per Sec-
tion 11 of Indian Contract Act)
 RBI, vide their circular
DBOD.No.Leg.BC.108/09.07.005/2013-14 dated
6th May, 2014 have issued the following instruc-
tions on opening of Savings Account for Minors:
a. A Savings /Fixed / Recurring bank deposit ac-
count can be opened by a minor of any age
through his/her natural or legally appointed guar-
dian.
b. . Banks must not open joint account with ‘Either
or Survivor’/’former or Survivor’ mandate where
one account holder is a minor and other one is
major who might not be a guardian(e Cir no-
122/2015 – 16 dated 28/4/15
c. Minors above the age of 10 years may be al-
lowed to open and operate savings bank ac-
counts independently, if they so desire. Banks
may, however, keeping in view their risk man-
agement systems, fix limits in terms of age and
amount up to which minors may be allowed to
operate the deposit accounts independently. They
can also decide, in their own discretion, as to what
minimum documents are required for opening of
accounts by minors.

Page 2
d. On attaining majority, the erstwhile minor
should confirm the balance in his/her account and
if the account is operated by the natural guardian
/ legal guardian, fresh operating instructions and
specimen signature of erstwhile minor should be
obtained and kept on record for all operational
purposes.
 Maximum Deposits that can be accepted in
the SB/Term deposits accounts of minors in
single name is Rs.2,00,000/-. and with guar-
dian is Rs20,00,000/-
 RBI has advised banks can offer additional
banking facilities to minors like
INB,ATM/Debit Card, Cheque book facility etc,
subject to safeguards
 Keeping in line with the above, two new Savings
Bank products have been designed for Minors –
“Pehla Kadam and Pehli Udaan”. Pehla Kadam is a
Savings Bank account for Minor of any age oper-
ated jointly with his/her Parent/Guardian or singly
by Parent/Guardian, while Pehli Udaan is a singly
operated Savings Bank Account for a Minor aged
10 years and above and who can sign uniformly.
 Certain limits and restrictions have been built
into these accounts as risk mitigation feature. The
maximum balance in these SB accounts is capped
at Rs. 5 lacs and the aggregate balance on the Mi-
nor’s CIF is capped at Rs. 10 lacs. Moreover, there
are various caps on the maximum amount trans-
acted using these ac-counts in order to limit expo-
sure KYC documents should be taken as below:
a) Pehla Kadam: Proof of Date of Birth of the Mi-
nor and KYC documentation of the Parent.
b) Pehli Udaan Proof of Date of Birth of the Minor
and KYC documentation of the Parent.
Guardians of Minor:
As per Hindu Minority & Guardianship Act, Father
is Natural Guardian. Mother becomes natural
guardian only after death of Father of Minor. Su-
preme Court has held that Mother will be the nat-
ural Guardian where father is not available for
some reason or other to per-form his duties as
regards the minor
Natural Guardian varies from religion to religion
Guardian of Hindu married minor girl – Hus-band
(if Major); Girl’s father, if Husband is Mi-nor
Guardian of illegitimate minor child – Mother
Guardian appointed by Court is called Legal Guar-
dian
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
 Guardian appointed by a will is called Testa-
mentary Guardian. Becomes effective after
death of father and mother
SAVINGS BANK – MINOR ACCOUNTS IN THE SOLE
NAME OF MINOR & MINOR BECOMING MAJOR
Savings Bank account of a minor (accounts in the
sole name of the minor), the minor has to com-
plete the below mentioned formalities on attain-
ment of majority. In the absence of completion of
these formalities, the Core Banking Solution (CBS)
does not permit debit or credit in the account. The
required formalities are:
a. Confirm the balance in his/her account.
b. Submit fresh specimen signature and photo-
graph
c. Provide a declaration with the proof of majority
for activation of the account as a major account.
d. Obtain the copy of PAN Card or Form
60/61(whichever is applicable)
All Branches can monitor such accounts i.e. ac-
counts where minors have attained majority from
the daily report (depd0622.txt)
Married Woman
-Married Woman has their separate legal identity
like single women. Hence they are treated on par
with men in respect of Advances and other bank-
ing services.
-Personal assets of a married woman are liable for
any loan availed from the Bank
-Husband is not liable for the loans availed by his
wife
-However, when loans are taken by married wom-
an with the express consent/authority from hus-
band or loans availed for the necessities of her,
then Husband is also liable
-Married woman may extend guarantee on behalf
of third parties
-A woman cannot be arrested or imprisoned for
non-payment of judgment debt
-A married woman dependent on husband cannot
be adjudged as insolvent
 Pardanashin Woman
-These woman does not have any contact outside
the family circles
-Extreme precaution is required to be exercised in
dealing with them particularly the illiterates par-
danashin woman
-Any contract with illiterate pardanashin woman
may not be free from undue influence and she
may not understand the nature of transaction

Page 3
-Hence, no account should be opened in the name
of illiterate Pardanashin woman
Lunatics
 A person of unsound mind is not competent
to enter into any valid contract
 No account should be opened in the name of
a lunatic person
 When a person of sound mind becomes in-
sane, operations in the account may be
stopped forthwith (Such action should not be
based on hearsay report)
 Near relative of such person should be ad-
vised to approach any court for appointment
as Receiver under the Mental Health Act
 Balance in the account is to be paid to the Re-
ceiver
Drunken Person
 Contract will be valid if the person is able to
understand the nature of transaction during
the state of drunkenness.
Deaf/Dumb & also illiterate
The Bank can in such cases preferably open
joint accounts to be operated jointly by the
deaf dumb illiterate along with his close blood
relations.
BANKING FACILITIES TO VISUALLY CHALLENGED
(e Cir no 829/2014 – 15 dt 11/10/2014)
Following Banking facilities are available to the
Blind / visually challenged individuals:
1. Deposit Accounts
2. ATM Cards
3. Internet Banking
4. Safe Deposit Lockers
5. Loans
A Blind / visually challenged person can open or-
dinary or cheque operated deposit account in his /
her sole name or jointly with other person(s) or in
the names of sole proprietorship concerns / firms
/ partnerships where a Blind / visually challenged
person(s) is / are involved.
The Bank official with the written consent of the
customer shall arrange for branding of the caution
stamp "CARE-DEPOSITOR BLIND / VISUALLY CHAL-
LENGED" on the cheque book (each cheque leaf)
to alert the Bank officials /operational staff.
If a Blind / visually challenged person is illiterate,
or literate but unable to sign uniformly, his thumb
impression should be obtained as a rule on the
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
account opening form, pay-in slips and the with-
drawal order forms and all the other precautions
prescribed for the opening and conduct of ac-
counts of illiterate depositors will be followed.
 Opening of Bank account by Patients affected
by Leprosy
There is no bar for leprosy patients in opening of
accounts. However, if such patients are incapaci-
tated, Bank’s extant Instructions/procedure for
Operation of Accounts by Old & Incapacitated
Persons would apply.(e-cir.1495/15-16 dtd
08.03.16)
 Insolvents
 Insolvency of a person is civil death
 A person who cannot pay his debts of Rs 500/-
or more may be declared insolvent by the
Court
 Application for declaring a person insolvent
can be made either by the person himself or
his creditors
 Operation in the account should be stopped
from the date of notice that an insolvency pe-
tition has been filed by or against the custom-
er
 Once an order of adjudication is issued, the
account should be closed and paid to the Offi-
cial Receiver through banker’s cheque
 An insolvent person cannot act as a Director
of a company
 He cannot be a partner in a partnership firm
but he can act as an agent of another person
 He can operate his PPF A/c and a Trust A/c as
trustee
Official Liquidator
 Liquidator is appointed as per Court’s order
when a company goes into liquidation
 All monies received by him by disposal of
company’s assets will be deposited in the ac-
count
 Only order cheques will be issued to facilitate
verification of disposal of the estate through
endorsement of payee
Customer’s Agents & Attorneys
 A customer may appoint an attorney or agent
to operate his account
 Power of Attorney is a general notice and au-
thority for this purpose
 Person giving power to another person is
called donor or grantor or principal and the

Page 4
other person is called grantee or PA holder or
Agent
 A PA holder or Agent must indicate that he is
signing on behalf of the donor/principal by
writing ‘per pro’ (Per Procuration meaning ‘by
arrangement’)
 Agency is terminated on death and insanity of
Principal or Agent and also by insolvency of
Principal
 Insolvency of the agent does not terminate
the agency
 A cheque signed by an agent can be paid even
after his death as principal is alive
 PA should be duly stamped and registered
with Registrar of documents or Attested by a
Notary Public
 If a PA is executed abroad, it has to be
stamped within 3 months of its receipt in In-
dia
 Specific powers entrusted to the attorney viz.
power to open A/c, to draw & endorse che-
que, to overdraw the A/c should be verified
and recorded in Power of Attorney Register
 PA should not contain any condition on the
occurrence of which it will be enforceable
 Executors & Administrators
 Executors and Administrators are appointed
to conduct the affairs of a person after his
death. Former are appointed by a testator
through a will & Later are appointed by Court
in absence of a will or if the executor dies or
refuses to act through Letter of Administra-
tion
 Both perform the same duties i.e. to realize
the assets of the deceased and distribute
them as per will or letter of administration
 Account in the name of Execu-
tor/Administrator is opened in style “ABC ex-
ecutors (or administrators) to the Estate of
XYZ Deceased” and balance in the account of
deceased is transferred to it
 Before opening the Account Probate of will
obtained by Executor & LA secured by Admi-
nistered should be examined carefully
 On death of one of the execu-
tors/administrators his powers are vested in
surviving executors and administrators
 Trust
Trusts are usually created by the settler (also
referred to as creator or donor) for the bene-
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
fit of a third party (beneficiary) through a
‘Trust Deed’
 Trustee is the person entrusted with the re-
sponsibility to manage the Trust
 Trust deed is required to be registered with
the Registrar of Assurances
 Trustee’s powers and obligations should be
thoroughly examined through Trust Deed
 Account should be operated as per provisions
of Trust Deed otherwise bank may be held lia-
ble for being a party to breach of trust
 All trust accounts should be examined by
Branch Manager once at the time of taking his
charge & thereafter annually
 Insolvency of a Trustee does affect his func-
tions as trustee
 Cheque favouring Trust shall not be credited
to personal A/c of Trustee
 A trustee cannot delegate his powers to other
trustees except as provided for in the Trust
 Joint Hindu Family (JHF)
 A JHF possesses ancestral property and carries
on ancestral business
 It is a legal entity with perpetual succession
like companies without requiring any registra-
tion
 It is governed by two schools of Hindu law –
Dayabhaga & Mitakshara
 Dayabhaga School is applicable to West Ben-
gal only & Mitakshara School is applicable to
the rest of India
 Under Mitakshara School, every son/daughter
of a coparcener acquire a right in JHF by birth
whereas in case of Dayabhaga School he/she
acquires the right in JHF only after father’s
death
 Head of JHF is Karta – eldest coparcener. All
other male/female members of the family are
called coparceners except mother and daugh-
ter-in-law
 On the death of Karta, the eldest surviving
coparcener becomes Karta
 JHF cannot become a partner in a Partnership
Firm
 JHF letter (COS 38) is obtained while opening
account of a JHF
 It is signed by all adult coparceners including
Karta. Minor coparceners do not sign this let-
ter. (Advantages – (i) The JHF letter presumes
that the business is ancestral one. Thus it

Page 5
binds the Karta & Coparceners even if the
business turns out to be not an ancestral one.
(ii) To advise the bank of any change in the
membership of the family is also undertaken)
 Partnership Firm
 It is not a legal entity. It is an association of
persons to run a business
 Minimum Number of Partners – 2
 Maximum Number of Partners (Banking Firm)
– 10 (As per Sec 11 of Companies Act)
 Maximum Number of Partners (Non Banking
Firm) – 20 (As per Sec 11 of Companies Act)
 Registration of a Partnership firm is not man-
datory
 (Disadvantage- Creditors of firm can sue an
unregistered firm but the unregistered firm
cannot sue its debtors or partners)
 A minor cannot become partner in a firm but
he can be admitted to the benefits of partner-
ship
 While opening an account of a Partnership
firm, Partnership letter (COS 37) is obtained
duly signed by all the partners
 (Rationale: Through this Letter, the Partners
undertake to notify the Bank of any change
in their constitution & It gives the firm an im-
plied authority to open an account)
 Partnership deed is also obtained. It may be
registered or unregistered.
 Every Partner is an agent of other partners
 A partner has the following implied powers:
 To sell/pledge movable goods on account
of partnership
 To borrow money, contract debts etc for
the business of the partnership
 To draw, make or accept negotiable in-
struments
 A partner has no implied power to mortgage
partnership property
 He has no implied power to extend guaran-
tees on behalf of the partnership unless the
partnership business is in nature of extending
guarantees
 Death/insolvency of partner dissolves the
partnership
 A partnership firm may be dissolved compul-
sorily in the following circumstances
 When all the partners are declared insolvent
 When the business of the firm becomes un-
lawful
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
 When a competent court passes an order for
the dissolution of the firm
 Joint Stock Companies
 A Company is a legal entity created by Law,
having perpetual succession, limited liability
and common seal
Documents to be obtained for opening Ac-
count of a Public/Pvt. Ltd. Company
(i) Memorandum of Association (MOA) Co-
tains Company’s name, objects and pur-
pose, authorized capital, liability of the
members, address of registered office etc.
Borrowing powers of the company are al-
so contained in it.
(ii) Articles of Association (AOA) - Contains
rules and regulations regarding operations
of the company. It deals with matters
such as the rights and powers of directors,
proceedings of the meetings, delegation
of powers etc.
iii) Certificate of Incorporation issued by Regi-
strar of Companies
iv) Board Resolution
v) Certificate to commence business is re
quired in case of public limited companies
only. Registrar of companies issues this
certificate as soon as the minimum capital
(min 90% of subscription) is subscribed
LEGAL GUARDIANSHIP CERTIFICATES ISSUED
UNDER THE MENTAL HEALTH ACT,
(e-cir:1168/2013-14 dt:23/01/2014)
The Mental Health Act, 1987 provides for a law
relating to the treatment and care of mentally ill
persons and to make better provision with respect
to their property and affairs. According to the said
Act, “Mentally ill person” means a person who is
in need of treatment by reason of any mental dis-
order other than mental retardation. Sections 53
and 54 of this Act provide for the appointment of
guardians for mentally ill persons and in certain
cases, managers in respect of their property. The
prescribed appointing authorities are the district
courts and collectors of districts under the Mental
Health Act, 1987.
 The National Trust for Welfare of Persons with
Autism, Cerebral Palsy, Mental Retardation and
Multiple Disabilities Act, 1999 provides for a law
relating to certain specified disabilities. Clause (j)

Page 6
of Section 2 of that Act defines a “person with dis-
ability” to mean a person suffering from any of
the conditions relating to autism, cerebral palsy,
mental retardation or a combination of any two or
more of such conditions and includes a person
suffering from severe multiple disabilities. This Act
empowers a Local Level Committee to appoint a
guardian, to a person with disabilities, who shall
have the care of the person and property of the
disabled person.
NOMINATION
 Facility of Nomination is available in Deposit
Accounts (U/S Sec 45 ZA of BR Act),
 Safe Custody & Safe Deposit Articles (U/S Sec
45 ZC of BR Act) &
 Safe Deposit Lockers (U/S Sec 45 ZE of BR Act)
 Introduced in the Banks with effect from
29.03.1985 on recommendations of Talwar
Committee (THE BANKING COMPANIES
(NOMINATION) RULES, 1985)
 Nominee has to be an Individual only. A firm,
club, company trust etc. cannot act as nomi-
nee.
 RBI has permitted to allow Nomination in case
of sole proprietorship Accounts.
 Available to both Residents and Non Residents
 In bank’s deposit accounts of individuals, in all
type of mode of operations- only one nomi-
nee is allowed. In locker, SO- one nominee, E
or S- No nominee allowed, JO- Multiple Nomi-
nee. In Safe Custody- SO- One Nominee, Other
than SO- No nominee allowed. In P.P.F A/C-
Multiple nominee
 Nomination is not permissible in accounts
held in representative capacity
 Appropriate nomination form (DA1/SC1/SL1-
1A*) is to be signed by Account holder for
nominating a person in his/her account. Now,
witness is not required to be obtained.
 In case of thumb impression on the Nomi-
nation, two witness is required to be obtained
(e.cir 32/2012-13 dt:11.04.2012) but signature
of the account holder need not be attested.
 In case of Joint A/c, all account holders should
jointly nominate a person
 A minor can be a nominee. In such case, an
appointee (major) is required to be named by
the account holder who could provide dis-
charge to bank in case the account holder dies
during minority of the nominee
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
 Account holder may cancel or change nomi-
nation any time during the continuance of the
account by submitting appropriate forms i.e.
DA-2/SC-2/SL-2/2A* for cancellation and DA-
3/SC-3/SL3-3A* for variation in nomination
 In joint accounts, all account holders should
jointly sign these forms in case of Cancella-
tion/ Variation in nomination
 If the person opening the account does not
want to nominate, he should be asked to give
a specific mandate/letter to the effect that he
does not want to make a nomination. In case
he declines to give such a letter, the fact
should be recorded on the account opening
form and the account should be opened if
otherwise found eligible
 Legend "Nomination Registered" should man-
datorily be recorded on the face of Pass-
books/TDR/ STDR advices / Statement of ac-
count whenever the accountholder avails the
facility of Nomination
 Name of Nominee shall also be recorded ma-
nually on the face of the passbooks/TDR/STDR
Receipts /Statement of account in case the
customer is agreeable to the same.
 Any practice of sharing of nomination details
with the nominees is highly irregular.(e-
cir:982/2013-14 dt:26/11/2013)
 Retail Internet Banking Nomination Facility :
Online Nomination facility is available in respect
of e-TDR/e-STDR/eRD for SO accounts.
Unlike other e-Fixed Deposit products, the Tax
Saving Scheme e-TDR/e-STDR does not gener-
ate an ‘online advice’. The advice will have to
be printed by the Home Branch only at the
request of the depositor and the customer
will collect the same from the Home Branch
(e-cir:214/2013-14 dt:10/06/2013)
Settlement of claims in respect of deceased
depositors
(A) With Legal Representation
i. Will
ii. Letter of Administration
iii. Succession Certificate
(B) Without Legal Representation
i. With Nominee
ii. Without Nominee
(A) With Legal Representation:
i. Will- A Will is a declaration of the intention of a
testator with respect to his property to be carried

Page 7
out after his death. Such death by leaving a Will is
called “Testate”. Section 59 of Indian Succession
Act states that any person of sound mind other
than a minor can execute a Will. Two respectable
persons shall witness the execution of the Will. A
supplementary Will is called Codicil. A will must be
probated. Probate is a certified copy of the Will
granted by a “Competent Court”. Probate issued
by High Court is valid throughout India. Probate
issued by District Court is Valid within the State
and for property valued<=10,000/-, outside the
state. Executor- is the person named in the will
for giving effect to its provisions. An Executor is
appointed by the person making the Will.
ii. Letter of Administration (LoA)- A Letter of Ad-
ministration is legal representation for debt, se-
curities, moveable and immoveable properties. It
is issued by a Court in favour of an Administrator
in following cases-
-When the deceased has not left a Will.
-When the deceased has left a Will but has not
named an Executor.
-When the Executor named therein refuses to act
or he is dead.
LoA issued by High Court is valid throughout India.
LoA issued by District Court is Valid within the
State and for property valued<=10,000/-, outside
the state.
iii. Succession Certificate- Legal Representation
granted under Indian Succession Act, 1925 in re-
spect of debts and securities, and when the de-
ceased has not left any Will. It does not cover gold
loan ornaments, articles in safe custody and safe
deposit lockers. It is valid throughout India even if
granted by a District Court.
(B) Without Legal Representation:
i. With Nominee-
In banks’ deposits accounts, nominee comes into
picture when all depositors are dead. In case of
survivor, the claim has to be settled with the sur-
vivor (where survivorship clause is present) or
with the survivor and legal heirs of the deceased
(where a/c is operated jointly)
Nominee may opt for premature closure of ac-
counts also.
Due care should be exercised in establishing the
identity of the nominee. For this, Nominee is re-
quired to submit a duly filled in and signed stan-
dard claim form. The claim form is required to be
witnessed by Magistrate or Judicial Officer or (ii)
An officer of the Central or State Govt or (iii) An
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
officer of a Bank or (iv) Two persons of good
standing and integrity and acceptable to the Bank.
In case of lockers, In SO locker- claim may be set-
tled in favour of Nominee. In JO lockers, claim has
to be settled with Survivor + nominee(s).
ii. Without Nominee-
SETTLEMENT OF CLAIMS WITHOUT LEGAL RE-
PRESENTATION BALANCES HELD IN THE AC-
COUNT(S) OF DECEASED CONSTITUENTS SIMPLI-
FICATION OF PROCEDURE- (e-Cir 990/2014-15 dt
17/11/2014)
Bank Deposit- In SO a/c-Legal Heirs , In Jointly op-
erated accounts - survivor + Legal Heirs of the de-
ceased person(s), In a/cs with survivorship clause-
Survivor.
Locker/ Safe Custody Article - In case of locker/
Safe Custody Articles with no nomination or survi-
vorship clause, claim can be settled only with legal
representation.
 Requirement for claim up to and inclusive of
Rs 5.00 Lakhs- i. Claim Format, ii. Stamped letter
of indemnity iii. Letter of disclaimer, if needed.
Above Rs 5.00 Lakhs- i. Claim Format, ii. Stamped
letter of indemnity iii. Letter of disclaimer, if
needed, iv. Affidavit v. Surety.
Additional disposal Options: i. Bank Transfer if
the a/c of claimant is in our Bank, ii RTGS/ NEFT if
the a/c of claimant is in other banks.
Dispensation of Stamped Receipt: i. In case of
Bank transfer- Copy of the statement of account
carrying the relevant entry, ii. In case of
RTGS/NEFT- Copy of acknowledgement of elec-
tronic transfer credit.
 Any legal heir who has signed the letter of
disclaimer in favour of other legal heir(s) may
stand as surety if he/she is independently good
for the amount of claim.
 Where TDR is issued in the form of an ad-
vice in place of receipt, return of the discharged
TDR receipt may not be insisted upon.
 Declaration on the Claim form regarding
legal heirs of the deceased may be obtained from
any independent person known to the family of
the deceased but unconnected with it and accept-
able to the Bank. Or
Any account holder of the Bank known to the fam-
ily of the deceased but unconnected with it. Or

Page 8
Any Govt. Official whose signature is verifiable by
the Bank.
However, for claims above Rs. 5 lacs such declara-
tion has to be sworn as an affidavit before judicial
Magistrate or Notary Public.
 Regarding premature payment of Term
Deposits, if one of the depositors expires before
maturity, with “E or S” or “F or S” mandate. In this
connection, RBI has, vide their letter no.RBI/2012-
13/168 DBOD No.eg.BC. 37/ 09.07.005 /2012-13
dated 16.08.2012 clarified that “the joint deposit
holders may be permitted to give the mandate
either at the time of placing Term deposits or any-
time subsequently during the term/tenure of the
deposit. If such a mandate is obtained, banks can
allow premature withdrawal of Term Deposits by
the surviving depositor without seeking the con-
currence of the legal heirs of the deceased joint
deposit holder. It is also reiterated that such pre-
mature withdrawal would not attract any penal
charge.” (e-cir:596/2012-13 dt:18/09/2012)
 Recording of “Maturity Mandate” for the
disposal of deposit on maturity has been made
mandatory by RBI (e-cir:966/2011-12 03/02/2012)
 Request by Legal heir to stop payment to
Nominee
 Payment to nominee after death of the depo-
sitor constitute a full & valid discharge of
bank’ s liability except in case of any order,
decree, certificate or other authority from a
Court of competent jurisdiction restraining
the bank from making the payment from the
account of the deceased is produced. Where
one of the legal heirs has obtained an injunc-
tion order the branch should advise the nomi-
nee to take up the matter, pending before the
Court and the Bank is bound by the orders of
the Court for payment of the deposit amount
as the matter is sub-judice.
 Moreover, nominee receives payment from
the bank as a trustee of the legal heirs of the
deceased depositor, i.e., such payment to him
shall not affect the right or claim which any
person may have against the survivor(s) / no-
minee to whom the payment is made
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
 Notice from advocate seeking time to initiate
legal action and stop payment to the nomi-
nee
 Branch need not take cognizance of a notice
from the advocate seeking time to initiate le-
gal action and the deposit amounts may be
paid to the nominee. This will constitute full &
valid discharge of its liabilities under the Act
Time norms for settlement of claims (as per
IBA MOP 2014)
 Accounts with nominee/ survivor – 15 Days
 A/cs without nominee/ survivor- one month
Settlement of Claims in respect of Missing
Persons
 Claim upto Rs 1 lakh & in respect of missing
persons, reported missing for a minimum pe-
riod of one year, shall be settled on produc-
tion of the following documents.
 FIR
 Non-traceable report issued by the police au-
thorities.
 Indemnity from the claimant
 RM of the respective region will be the autho-
rized authority to settle such claims
 Claims in respect of missing person above Rs
100000/--
 Under section 108 of the Indian Evidence Act,
Nominee /legal heirs will have to raise an ex-
press presumption of death of the subscriber
after a lapse of seven years from the date of
his /her being reported missing before a com-
petent court. If the court presumes that
he/she is dead, then a certificate to that effect
is issued and the claim in respect of missing
person can be settled as is done for any other
deceased accounts.
Garnishee Orders (Court Attachment Order)
 Creditor of a bank depositor (Judgement –
creditor) obtains the order attaching the
funds in the hands of garnishee (debtor of the
Judgement – debtor viz. Bank)
 Issued U/S 60 of the Civil Procedure Code
 Initially, order for freezing the operations on
the account called ‘Order Nisi’ is obtained
 On receipt of Final Order called ‘Order Abso-
lute’, payment is made to the court
 In case specific amount is mentioned then
excess balance is transferred to a new A/c and
operations in the new A/c is continued

Page 9
 Attaches credit balance in the accounts
 Attaches TDRs payable at a future date
 Future Credits not attached
 Collection items / Clearing Credits realized
after the receipt of the order are not attached
 Order in single name then Joint deposit &
Partnership deposit not attached
 Order in Joint names / name of Partnership
then deposit in single name attached
 Does not attach balances in the accounts of
deceased/insolvent
 Does not attach unutilised drawing power in a
borrowing a/c
 Salary is attached subject to some restrictions
 Subject to Bank’s right of set-off against any
debts owed by the debtor (Contingent debt
cannot be set off)
 Does not attach Trustee/ Fiduciary accounts
Revenue Attachment Orders
 Attaches the credit balances of the assessees
in the hands of the banker
 Income Tax, Sales Tax and Wealth Tax authori-
ties issue it
 Specific amount will be mentioned
 Attaches credit balance in the accounts
 Attaches TDRs payable at a future date
 Attaches future credit also
 Collection items / Clearing Credits realized
after the receipt of the order are attached
 Joint deposits attached proportionately
 Partnership deposit not attached
 Order in Joint names / name of Partnership
then deposit in single name attached
 Attaches balances in the accounts of de-
ceased/insolvent also
 Does not attach unutilised drawing power in a
borrowing a/c
 Salary is attached
 Subject to Bank’s right of set-off against any
debts owed by the debtor (Contingent debt
cannot be set off)
 Does not attach Trustee/ Fiduciary accounts

Personal Accident Insurance scheme(PAI) - i) PAI
will cover loss of life due to accident only any-
where in the world, terrorism is covered. (ii) The
entry into the scheme is open to SBI/ Associates
SB/CA Account holders between the ages of 18
and 65 years who are permanent Indian resi-
dent.(iii) The new application form will list out, on
the reverse, all broad categories of customers that
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
are excluded from the scheme. Occupations like
army, paramilitary, police, etc. are excluded from
the coverage and are mentioned in the applica-
tion form{extended to Armed forces, Paramilitary,
police personnel also, under certain caveat
w.e.f.03/12/2012 e-cir:890/2012-13 dt:04th
Dec,2012 & again suspended vide e-cir:900/2012-
13 dt:06th Dec’2012} (vi) Auto renewal of policy is
enabled, customer consent is required. (viii) Data
entry for the PAI, will continue to be in CBS screen
8890, which will be re-activated as at the close of
business / EOD on 08.09.2012 (xi) After a transac-
tion has been put through, no branch will have
the authority to reverse the entry. In case, how-
ever, it is observed that the customer was not eli-
gible for the policy, the branch must make a ref-
erence to Mumbai Main Branch, on the specified
format enclosed with the circular, who will, in
turn, take up with SBI General and will refund the
amount to the branch. Request may be sent to
Mumbai Main Branch by Fax or Email
Personal Accident Insurance (PAI) scheme mod-
ified w.e.f.01/01/2014. Coverage from 2.00 lakhs
to Rs.20.00 lac can be done under the scheme. (e-
cir:1068/ 2013-14 dt:24/12/2013)
Issue of Duplicate Certificate of Insurance (COI) of
PAI-
http://192.168.123.10:9003/upload/sbibhome.do
The page has been exclusively developed for SBI
employees and is accessible from all our branches.
All branches accordingly can print the COIs in case
any customer requests for the same (e-
cir:778/2013-14 dt:10/10/2013)
CTS-2010
As per RBI’s directives, following mandatory secu-
rity features have been incorporated in the CTS-
2010 Cheque standard:
i) “Watermark, with the word “CTS-2010”
ii) “VOID” Pantograph
iii) Bank’s logo and Bank’s name in Ultra Violet
ink
iv) Standardized fields placement
v) Pre-printed account number field
vi) Micro Lettering in place of line
vii) New rupee symbol
viii) Printer’s name along with printing “CTS-
2010” establishing CTS-2010 compliance. (De-
tailed features about CTS-2010 STD.ch e-cir:
761/2012-13 dt:19/10/2012)
 Page
10
 Payment of MCCs at Non-Home Branches as per
the ceiling/legend will be system enabled. Till the
functionality for the same is developed by GITC, it
is to be administratively controlled at paying
branches / CPCs.
(e-cir:1008/2013-14 dt:04/12/2013)
 Not to accept fresh Post Dated Cheques
(PDC)/Equated Monthly Installment (EMI) che-
ques (either in old format or new CTS-2010 for-
mat) in locations where the facility of ECS/RECS
(Debit) is available. Make all efforts to convert
existing PDCs in such locations into ECS/RECS (De-
bit) by obtaining fresh mandates from the bor-
rowers.(e-cir:1295/2012-13 dt:30/03/2013)
 REVISION IN SERVICE CHARGES
W.E.F 30.12.2013: (e-cir:1072/2013-14
dt:24/12/2013)
 ECS Debit Returning Charges Rs. 100/- + service
tax Rs.12/- - Total Rs. 112/-
 All KYC deficient accounts (Excluding inoperative
accounts and also excl. small accounts as these
accounts are opened with relaxed KYC norms as
per the RBI guidelines). After giving 2/ 3 notices to
the concerned customer to comply KYC norms. Rs
100 + service tax Rs12/- - total Rs. 112/- per an-
num (till account remains KYC deficient)
 Tax deduction at source (TDS) amendment in the
income tax rules 1962 has taken place.Details in e-
cir:1297/2012-13 dt:30/03/2013)
 RBI has set up 3 grid based (Northern Grid in
Delhi, Southern Grid in Chennai and Western Grid
in Mumbai) CTS-2010 cheque clearing centres
(e-cir:992/2013-14 dt:30/11/2013)
 CHEQUE COLLECTION POLICY 2015
Bank's Cheque Collection Policy (CCP) was first
formulated in 2005 and is reviewed periodically,
as per the guidelines issued by Reserve Bank of
India (RBI)/IBA/BCSBI from time to time. The Poli-
cy duly approved by Bank’s Central Board shall be
known as Bank’s Cheque Collection Policy -2015.
Cheque Truncation System (CTS) is presently
working at Northern grid in Delhi, Southern Grid in
Chennai and Western grid in Mumbai.
RBI has directed that no changes/corrections
should be carried out on the cheques. For any
changes in the payee’s name, courtesy amount
(amount in figures) or legal amount (amount in
words) etc. fresh cheque forms should be used by
customers.
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
Collection of Third Party Cheques in clearing: RBI
has prohibited Banks from crediting ‘account
payee’ cheques to the account of any person oth-
er than the payee named therein. However, with a
view to mitigating the difficulties faced by mem-
bers of co-operative credit societies in collection
of account payee cheques, RBI has permitted
 ONLINE ACCOUNT APPLICATION FACILITY TO
banks to collect for such societies account payee
cheques drawn for an amount not exceeding
Rs.50,000/- on behalf of their constituents.
TIME FRAME FOR COLLECTION OF OUTSTATION
INSTRUMENTS
Branches of>>>> SBI Oth-
er
Bank
s
Collections between Metropoli- 6 7
tan Centres/ Major ‘A’ Class Ci- days days
ties (Mumbai, Chennai, Kolkata,
New Delhi, Ahmedabad, Banga-
lore & Hyderabad)
Collections between places at (a) 8 10
above and State Capitals (other days days
than North Eastern States & Sik-
kim) and Area I Cities, i.e. Pune,
Nagpur, Kanpur, Surat, Vishaka-
patnam, Vadodara, Kochi, In-
dore, Ludhiana, Coimbatore,
Agra, Madurai and Varanasi
Collections between all other 10 14
Centres days days
 Interest for delayed collection shall be paid at
the following rates:
a) Saving Bank rate for the period of delay beyond
7/10/14 days, as the case may be, in collection of
outstation cheques, i.e. [the interest will be paya-
ble] from 8th /11th /15th day.
b) Where the delay is beyond 14 days, interest will
be paid at the rate applicable for term deposit for
the corresponding period or Saving Bank rate,
whichever is higher.
c) In case of extraordinary delay, i.e. delays ex-
ceeding 90 days, interest will be paid at the rate of
2% above the corresponding Term Deposit rate.
d) In the event of the proceeds of cheque under
collection to be credited to an overdraft / loan
account of the customer, interest will be paid at
the rate applicable to the loan account. For ex-
 Page
11
traordinary delays, i.e. delays exceeding 90 days,
interest will be paid at the rate of 2% above the
rate applicable to the loan account.
-Interest as above shall be payable with a mini-
mum of Rs.25/-.
APPLY FOR SAVINGS BANK ACCOUNT ONLINE:
The Bank has been offering e-TDR/e-STDR/e-RD to
its Savings Bank customers. A facility to open Sav-
ings Bank Account online from Retail clients has
been developed. e-Circular no:895/2012-13
dt:04th Dec,2012, gives the detailed process-flow
of the Online Savings Bank Account Application
(OSBAA) facility with screen-shots of the relevant
screens.
 Deposits of Rupees one crore and above are
classified as ‘Bulk Deposit’.
 TDR/STDR Min.amt.1000/ in multiples of Rs100/-.
Period:07 days to 10 Years. Deposit of more than
10 Year may be accepted under court orders.
 Under section 194A of the Income Tax Act, TDS is
not to be deducted on Interest payments made to
any banking company/co-operative bank, financial
corporation, LIC, UTI, insurance compa-
ny/insurance co-operative society. Further,w.e.f.
1st January 2013, no TDS is required to be de-
ducted on following payments made to the sche-
duled Banks (Please refer e-circular no.CFO/FRT-
TAX/9/2012-13 dated 23rd January 2013):
a)Bank guarantee commission;
b)Cash management service charges;
depository charges on maintenance of DEMAT
accounts;
d)charges for warehousing services for commodi-
ties;
e)underwriting service charges;
f)clearing charges (MICR charges);
g)credit card or debit card commission for
transaction between the merchant establishment
and acquirer bank. (e-cir:301/2013-14
dt:02/07/2013)
 RBI has advised Banks to extend all banking
facilities such as cheque book facility including
third party cheques, ATM facility, Net Banking fa-
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
cility, locker facility, retail loans, credit cards etc.,
to visually challenged/ persons with disabilities,
without any discrimination as they are legally
competent to contract. As the extant norms for
sanctioning Personal & Education Loans are based
on scheme specific criteria, customers who are
visually challenged/ persons with disabilities
should not be barred from availing these loans if
they fulfill the scheme specific criteria.(e-
cir:322/2013-14 dt:09/07/2013)
While transferring Public Provident Fund (PPF)
Account from our one Branch to another Branch,
the accrued interest is not to be remitted by the
transferor Branch at the time of transfer of ac-
count. The accrued interest is only to be advised
by the transferor Branch. The interest in the ac-
count is to be credited only at the end of the fi-
nancial year i.e 31st March and not in the middle
of the financial year) (e-cir:324/2013-14
dt:09/07/2013)
DROP BOX FACILITY: Drop Box facility is available
to the customers on 24X7 basis at all branches of
the Bank irrespective of their size and geographi-
cal location. The Drop Box is to be opened in the
morning, without fail, well before the com-
mencement of the business hours on every work-
ing day. Drop box is to be cleared daily at frequent
intervals as warranted by local requirements but
at least after every hour. Both at BPR and non BPR
center branches details of instruments received
through Drop Box are to be recorded in a separate
register before handing them over to the Single
Window Operator against his / her acknowledge-
ment for disposal as per the extant instructions.(e-
cir:788/2014-15 dt:30/09/2014)
Inspection & Audit- The modular structure in RFIA
has been implemented . Inherent Risk will be
identified for each value statement and check list
of the Risk Assessment Module and graded on a
four point scale of Critical, High, Medium & Low
by assigning corresponding weightages. Scores are
auto generated and are automatically populated
in the ARF as per pre defined deviation range and
score band. Overall distribution of scores under
various core parameters i.e. Credit Risk Manage-
ment (CRM), Operational Risk Management
(ORM), External Compliances (EC) & Self Audit has
been kept unchanged. Printing of entire report is
being dispensed with as it is available in the sys-
tem for the users. Instead, a condensed report
having Management Letter (as per existing prac-
 Page
12
tice), Heat Map & Risk Matrix, Consolidated find-
ings of high risks in Critical Modules, Consolidated
findings of high risks in Critical Value Statements
and List of Accounts rated as High Risk & Medium
Risk will be provided. Inspecting Officials (IOs) will
apply penalties for adverse performance under
Off Site Transaction Monitoring System (OTMS)
and also for frauds.
Incentives for early closure of audit reports and
penalties for false compliance will be applied at
ZIO / CAU level as is being done hitherto. IOs will
not have access right here. Implementation of
Modular Structure will result in following benefits
: a) There will be only one ARF, but enough mod-
ules to cover all the activities handled by various
branches,
b) ARF will have only those modules which cover
the specific activities undertaken by the auditee
unit for more meaningful evaluation,
c) Flexibility of modification - modules and value
statements can be added / removed, scores can
be re-aligned easily, in case of need,
d) No clubbing of value statements,
e) Scores will be auto generated based on devia-
tions marked. Scoring and risk grading will be
more objective and reflect the ground reality
more precisely,
f) Sampling method for verification of some iden-
tified ORM areas by generating samples through
the system
g) Addresses the Government of India (GoI) con-
cern to exclude ‘not applicable’ areas from risk
assessment.
h) Online submission of compliance remarks and
closure of audit report is also envisaged to make
the modular structure completely system driven
and paperless. (e-cir199/2016-17dtd-11.05.16)
Self-Audit for Group-I, II and III units is done on-
line and only the print of the last page of the Self-
Audit, duly signed, is sent to the Controllers. Con-
trollers are now able to see the Self-Audit details
of any unit online where modifications, if re-
quired, can also be made. The Self-Audit formats
have been standardized and placed on the web-
site of I&MA Dept. along with ‘Guidelines for us-
ing Self Audit Format.(e-cir:434/2013-14
dt:29/07/2013)
 It has been decided to dispense with the require-
ment of receipt of “Non-payment advice” from
the drawee branch while issuing a duplicate IOI
(draft), as the payment status of an IOI (Draft) i.e.,
 Quick Success Series –Deposit: General
31th OCTOBER, 2016
whether already paid or outstanding, can be
viewed in CBS by the issuing branch (e-cir:
467/2013-14 dt:06/08/2013)
 Master circular Term Deposits(e-cir: 1492-2014-15
dt:30/03/2015)
 Master circular Savings Bank Accounts (e-cir: 391-
2016-17dt:22/06/2016)
 Procedure of payment of pension in case of
deceased pensioners, recovery in respect of
excess payments, discontinuation of payment of
pension/other benefits by branches is discussed in
detail in e-cir:497/2013-14 dt:14/08/2013
 Cross selling products should be offered for
distribution to the existing customers on “Need
basis” only and all laid down guidelines for sale of
cross selling products should be meticulously fol-
lowed. No mis-selling should be done.(e-
cir:510/2013-14 dt:19/08/2013)
 Online Application for opening Public Provident
Fund (PPF) Account can be done through RINB
under e-services menu (e-cir:540/2013-14
dt:24/08/2013)
 Now Pensioners can submit his / her Life certifi-
cate either through the conventional method or
availing the Digital Life Certificate methodology.
As “Jeevan Pramaan”initiative enable the old age
and infirm pensioners for submission of their Life
Certificate Digitally even from remote point of
their living area, Govt. of India suggested to en-
courage the pensioners especially the old and in-
firm to adopt this methodology. It is pertinent to
note that adoption of Digital Life Certificate is a
voluntary decision of the pensioner, therefore, it
should be ensured that there is no discrimination
against those pensioners who choose to submit
the Life Certificate through the conventional
means(e-cir.1521/15-16 dtd 11.03.16)
 The revised Life Certificate for CMPFO will be
submitted by the pensioner in a single copy at the
respective pension paying branch. The pension
paying branch will advise the names of the pen-
sioners to nodal branch (Dhanbad) only, whose
Life Certificates have been received by them. (e-
cir:550/2013-14 dt:26/08/2013)
 SBI General’s health insurance policy is a product
on the group platform and can, thus, be sold by
any staff of the Bank, just like PAI. The Health In-
surance sale will also be routed through CBS
screen no. 8890, like PAI (e-cir:577/2013-14
dt:31/08/2013)
 Page
13
 Adoption of uniform holiday calendar under
cheque truncation system (CTS)has been
adopted.( e-cir:599/2013-14 dt:05/09/2013)
 It has been decided by the Competent Authority
that the branches should not carry out any finan-
cial transactions requested by the NRI/Non-NRI
customers, too, through e-mail even if the re-
quest is made by a letter scanned as an attach-
ment (e-cir: 1115/2013-14 dt:09/01/2014)
 Account Opening Forms of FI Accounts opened
under product codes 1611-1411, 1611-1401 and
1611-1431 at BC channel and 1011-1601 and
1611-1411 at Branch Channel are to be retained
at the respective branches.(e-cir.1516/2015-16
dtd10.03.2016)
 OPENING OF ACCOUNTS WITH WELCOME KITS
AND ISSUE OF CHEQUE BOOKS NEED FOR A CAU-
TIOUS APPROACH: At present two types of Non-
Personalised Welcome Kits are issued one with
Cheque
book and another without Cheque books. While it
is necessary that accounts are opened with wel-
come-kits only, adequate care should be taken if
Welcome kits with cheque books are issued. Fur-
ther, it should be ensured that at the time of deli-
very of welcome-kits to the customers or putting
request in the Cheque-book Request Screen the
customers should be made fully aware of the pre-
cautions to be observed while drawing cheques.
They should be educated that carelessness in is-
suance of Cheques may lead to fraud.(e-cir
1417/2015-16 dtd16.02.2016)
 SERVICE CHARGES(e-cir1202 dated 31.12.2015)
Issue of Multicity Cheque books : Savings Bank
For PER &AGL Segments
(i)If QAB<25000-Rs20 Cheque leaves free per year,
thereafter, Rs3/- + ST (per leaf)
(ii) If QAB = & >25000/-Rs20 Cheque leaves free
per year, thereafter, Rs2/- + ST (per leaf)
(iii) Emergency Cheque request (10 leaves set)-
Rs50/- + ST for cheque book of 10 leaves set (Rs 5
per leaf)
 For all CSP Accounts(e-cir1202 dated
31.12.2015:
 Irrespective of QAB- Unlimited cheques: Free ;
Bulk requirement : Chargeable- No change
 [Type the document title]

QUICK SUCCESS SERIES, an initiative of SBLC

Deoghar to facilitate the preparation of
Quick promotion seeking personnel of our Bank,
appears to have succeeded in its objective to a
large extent, as the readers are still

Success approaching us for its revision/updation

despite availability of plenty of other study
materials.

Series We would not have been able to sustain this

unique effort of ours, without the active
support and continuous encouragement of our
DGM cum Circle Development officer Sri
Bijayananda Padhi. We are deeply indebted to
him for his co-operation and guidance.
Sri Rakesh Roshan, Chief Manager (Training) ,
Sri Kumar Priyank, Chief Manager
(Training),Sri Sanjay Kumar Sharma,Manager
(Training)and Sri Jitendra Kumar
Arun,Manager( Training) at this SBLC have
owned up this project and have taken pains to
keep it relevant to the users by updating &
improving it at half yearly interval.

Though every care has been taken while

updating the contents, we request our readers
to point out any lapses at the earliest.
Needless to mention this book is not a

SME ASSET PRODUCTS substitute of circular instructions issued by the

Bank from time to time. For detailed
guidelines please refer to Bank’s latest
circulars. Soft copy of this edition is available
on our ftp://10.151.51.33 in QSS folder and on
SBI TIMES>PATNA CIRCLE>SBLC Deoghar site.

Team SBLC Deoghar is humbled by the

response and recognition, it is receiving from
the readers within and beyond the circle. We
wish the readers grand success in their
endeavours.

Abheshek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895
Fax - 06432-231810
E-mail: agmstc.deoghar@sbi.co.in

Updated By: Kumar Priyank

Chief Manager (Training),
SBLC Deoghar Updated upto
Mobile- 7321805713
31 st October 2016
Email- k.priyank@sbi.co.in

Page 1
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
MSMED ACT 2006
The Government of India has enacted the Micro,
Small and Medium Enterprises Development
(MSMED) Act, 2006 on June 16, 2006 which was
notified on October 2, 2006.
The MSMED Act, 2006 has modified the definition
of micro, small and medium enterprises engaged
in manufacturing or production and providing or
rendering of services.
Two categories of Enterprise- Manufacturing &
Service.
Manufacturing - Engaged in manufacture or
production, processing or preservation of goods
Service- Engaged in providing or rendering of
services such as small road and water transport
operators, small business, professional & self
employed persons, etc.
Manufacturing Enterprises are further classified
as Micro, Small and Medium on the basis of
original investment in plant & machinery
(excluding cost of land & building and other items
specified by Ministry of Small Scale industries)
Service Enterprises are also further classified as
Micro, Small & Medium on the basis of
investment in equipments (excluding cost of land
& building and furniture-fittings and other items
not directly related to the service rendered)
Manufacturing Enterprises:
i) Micro- Investment in P& M does not exceed Rs
25 Lakhs,
ii) Small- Investment in P&M more than Rs 25
Lakhs but does not exceed Rs 5 Crores,
iii) Medium- Investment in P&M More than Rs 5
Crores but does not exceed Rs 10 Crores
Service Enterprises:
i) Micro- a) Enterprises engaged in providing/
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) does not
exceed Rs.10 lac, irrespective of the location of
the unit.
b) Advances granted to Retail Traders dealing in
essential commodities (fair price shops),
consumer co-operative stores and advances
granted to private retail traders with credit limits
not exceeding Rs.20 lacs.
ii) Small- Investment in equipment more than Rs
10 Lakhs but does not exceed Rs 2 Crores
SBLC DEOGHAR
iii) Medium- Investment in equipment more than
Rs 2 Crores but does not exceed Rs 5 Crores
 Khadi and Village Industries Sector (KVI):
All advances granted to units in the KVI sector,
irrespective of their size of operations, location
and amount of original investment in plant and
machinery will be treated as Micro Enterprise.
SME DOCUMENTATION
Applicable to all accounts in SME segment.
National Rollout wef 1st Aug 2005.
Product Neutral/Facility Neutral.
Pledge dispensed with.
Initial Documents:
i) SME-1 (Letter of Arrangement)
 Adheres to KYC Norms
 Divided into two Parts
 Annexure A & Annexure B
 Annexure A contains Terms & conditions
of sanction of Particular facilities/limits to a
borrower.
 Annexure B contains the Bank’s standard
Terms and Conditions of Sanction.
 No need of fresh documents in case of
change in terms & conditions without any
change in Aggregate Limit. Only a fresh letter
of arrangement to be exchanged after
suitable modification
 Product Neural
 The Letter of Arrangement provides for
collection of personal details of the
Borrower(s) and Guarantor(s) and their
respective legal heirs, besides establishing
the identification of the properties
charged to the Bank.
 Provides for affixing self-attested
photographs of the Borrower(s), Guarantor(s)
and Third Party Mortgagor(s) to establish
their identity besides serving proof of their
signatures.
 Attracts Stamp Duty
 To be executed by all, Borrower(s),
Guarantor(s) and Third Part Mortgagor(s)
 Fresh SME-1 to be obtained in case of
enhancement
ii) SME-2 (Agreement of Loan cum
Hypothecation)
 To be obtained for Aggregate Limit
including all type of Fund Based & Non Fund
Based Credit Facilities. All the credit facilities
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
(Fund Based & Non- Fund Based) granted to the
Borrower(s) are to be totalled into an aggregate
limit and covered by a single set of documents
 It is both a ‘Principal’ and ‘Charging’
document. It covers all types of facilities besides
creating a hypothecation charge on a wide variety
of movable assets.
 Provides for incorporating the name &
other details of Borrower(s) in a tabular form.
Contains Two Schedules. Schedule A- Provides for
furnishing particulars of all the facilities/Limits
sanctioned alongwith rate of interest and also the
interest rate and repayment schedule in respect
of Term Loan sanctioned. Schedule B- Provides for
furnishing Description of all movable assets
hypothecated to the Bank. No need to fill in any
other blanks in the document. (Rationale: To
eliminate errors in documentation)
 Provides for communication to
Borrower(s) in any medium, such as letter,
courier, facsimile, e-mail, etc.
 To be stamped with total stamp duty
payable for an Agreement + Hypothecation +
Indemnity + General Power of Attorney as per
State Stamp Act.
 Not to be attested
 In case of second charge or third charge,
the expression first charge appearing in Clause 7
to be suitably modified.
iii) SME- 2A (Letter Furnishing the Particulars of
Assets Acquired after the Execution of SME-2)
 To be obtained where certain assets are
acquired after execution of SME-2
 No stamp duty is payable
 To be executed by all the Borrower(s)
 Form an integral part of SME-2
 Date to be mentioned in SME-2 A may be
similar to the date mentioned in SME- 2 or it
could be a subsequent date depending upon the
date of acquisition of assets by the Borrower(s)
iii)SME-3 (Guarantee Agreement)
 Only security document to be executed by
Guarantor(s) in addition to Letter of Arrangement
 To be executed by all the Guarantor(s)
 To be stamped as an Agreement + Power of
Attorney
 Provides for Joint & Several Liability of the
Guarantor
 Covers all types of Guarantees like Personal
Guarantees, Third Party Guarantees and
Corporate Guarantees
SBLC DEOGHAR
 No Supplemental Guarantee agreement
 In case of enhancement, Fresh Guarantee
Agreement to be obtained for enhanced
aggregate limit.
Supplemental Document:
SME 4 (Supplemental Agreement of Loan cum
Hypothecation)
Supplemental to SME-2
To be obtained in case of enhancement beyond
the Aggregate limit
To be stamped as an Agreement +
Hypothecation
Not to be witnessed
Contains two schedules: Sch A & Sch B
Provision to record details of original Aggregate
Limit, enhancement or additional limits
sanctioned and the enhanced aggregate limits
in Schedule A.
Description of additional assets hypothecated to
the Bank is required to be recorded in sch B.
Documents / Recital for creation of EM:
i)SME-5 Memorandum for recording creation of
Mortgage by deposit of title deeds
Provides for creation of EM by all types of
mortgagors, viz. Borrower(s) or Guarantor(s) or
Third Party Mortgagor (s).
To be stamped as stamp duty applicable for
mortgage in respective states
Mortgage debt may comprise the facilities and
limits either equal to or less than the total
aggregate limit.
Mortgage Debt is to be recorded in the
Memorandum
To be signed on behalf of the Bank by two
officers
ii)SME-6 Letter of confirmation for creation of
mortgage by deposit of title deeds
An independent evidence for creation of
mortgage by Deposit of Title Deeds and
intention to create EM in favour of the Bank.
To be signed by all the Mortgagor(s)
To be obtained from all types of Mortgagor(s)
Documents / Recital for Extension of EM:
i)SME-7 Memorandum for recording extension of
mortgage by deposit of Title Deeds
This Memorandum provides for :
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
(a) Extension of the earlier mortgage to cover
additional facilities / limits beyond the mortgage
debt.
(b) Creation of mortgage on the additional
properties offered for securing the existing
facilities / limits and additional facilities beyond
the mortgage debt.
ii)SME-8 Letter of confirmation of extension of
mortgage by deposit of title deeds
This letter of confirmation to be sent by the
Mortgagor(s) for confirming :
(a) The extension of the Equitable Mortgage on
the existing property (ies) for securing additional
facilities / limits beyond the mortgage debt.
(b) The creation of Equitable Mortgage on the
additional property (ies) for securing the existing
limits within the mortgage debt, and also for
additional facilities / limits beyond the mortgage
debt.
SME-5A & SME-7A to be used where registration
of EM is mandatory, presently in Gujrat state only
Documents for creation / Extension of
Registered Mortgage
i)SME-9 Deed of Mortgage
To be used for creation of Registered Mortgage
To be witnessed by two persons
Should be compulsorily registered with Registrar
of Assurances within 4 months from the date of
creation of Mortgage
ii)SME-10 Deed of Further Charge
To be used for extension of a mortgage created
initially by way of Registered Mortgage
Stamp duty is to be adjudicated
To be registered with the Registrar of Assurances
within 4 months from the date of execution
To be witnessed by two persons
Complementary Documents:
i)SME-11 Revival Letter
The Revival Letter provides for extending the
limitation period under The Limitation Act, 1963,
for a further period of 3 years in respect of
Agreement of Loan-cum-Hypothecation (SME-2)
and Supplemental Agreement of Loan cum-
Hypothecation (SME-4), if any, executed till that
date and Guarantee Agreement (SME-3).
SBLC DEOGHAR
Should be obtained without fail in respect of all
documents before the expiry of limitation
period.
Should be signed by the Borrower(s) /
Mortgagor(s) and endorsed by the Guarantor(s)
ii) SME-12 Link Letter
Facilitates migration from earlier segmental
documents (SSI & C&I) to SME documents.
To be executed by all the Borrower(s) and
Guarantor(s).
In case of Corporate Borrowers, the Link letter
may have to be filed with the RoC along with the
SME documents to evidence the continuity or
modification of the existing charges.
Title Investigation Report:
SME-13 has since been withdrawn.
It has been replaced by a new format which is to
be used for obtaining the Advocate’s Report (Title
Investigation Report) for all the segments w.e.f.
1st July 2006). The report last modified in 2013
vide e-cir 41/2013-14 dt 13/04/2013. It includes
Eight Annexures, Annexure A TO H.
i)Ann A : Letter to advocate for search and
verification of title deeds/documents.
ii)Annexure A1 - Details of the property offered as
the security (To be prepared by the Branch).
iii)Annexure B – Report of Investigation of Title in
respect of immovable Property. ( To be submitted
by the panel Advocate).
iv)Annexure C- Certificate on title to be submitted
by the panel Advocate.
v)Annexure C1-Interim certificate to be submitted
by panel Advocate in respect of takeover loans.
vi)Annexure D- Guidance Note for the Advocate
verifying the Genuineness of Title Documents.
vii) Annexure E- Checklist on scrutiny of TIR by the
branches/operating units. (To be prepared by the
Branch).
viii) Annexure F -Checklist on identification and
physical verification of the property. (To be
prepared by the Branch).
ix) Annexure G- Procedure, precautions and due-
diligence.
x) Annexure H -Review of Panel advocates.
Xi) Annexure H1-Memorandum of Understanding
with Panel Advocate.
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
CREDIT GUARANTEE FUND TRUST for Micro &
Small Enterprises (CGTMSE)
Set up by SIDBI & Govt of India
The Bank has now decided to mandatorily
coverall eligible MSE loans only up to Rs.50 Lacs
under Credit Guarantee Scheme (CGS) of
CGTMSE. Now, it is not mandatory to finance all
eligible MSE borrowers availing loan limits above
Rs.50 lacs to Rs. 100 lacs under CGTMSE
guarantee cover.
Prospective borrowers for credit limit more than
Rs.50 lacs may be covered under CGTMSE
guarantee scheme in case they are willing to bear
the CGTMSE premium. Other borrowers may be
sanctioned credit facilities under Bank’s regular
schemes.
All proposals > Rs 50 lacs should be rated
internally
No collateral Security and/or Third Party
Guarantee should be taken
Personal guarantee of the borrower Promoters,
Partners etc may be obtained
 In case of loan sanctioned to Private/Public
Limited company, the guarantee of directors
other than Promoter Directors will be treated as
third party guarantee .
Account should not have become bad
As per the revised guidelines, the existing
interest cap of 4% above Base Rate has been
reduced to 2% and 3% above Base Rate for loans
up to Rs.50 lakh and loans above Rs.50 Lakh
respectively, taking into account the overall
exposure of the borrower.
if, any credit facility (i.e. credit limit up to Rs.50
Lakh) sanctioned under the above revised
guidelines of interest cap of 2% above Base Rate
crosses Rs.50 lakh due to enhancements of
existing credit limit, the cap of interest rate would
be enhanced to 3% above Base Rate for the entire
loans sanctioned and covered under Credit
Guarantee Scheme (CGS).The revised guidelines
shall be applicable for the credit facilities to be
sanctioned by the Bank on or after December 01,
2015, including additional term loans for existing
credit facilities covered under CGS. The revised
interest cap shall, not be applicable for existing
working capital accounts already covered under
CGS where enhancement and / or renewal takes
place subsequent to December 01, 2015.)
(e.cir.sl.no:964/2015-16 dt:02/11/2015)
SBLC DEOGHAR
Business or activity of the Borrower should not
have ceased
 Loan to retail/wholesale trade, educational
institutions and training institutions & SHG etc are
not eligible for coverage
 Credit facilities being extended by more than one
bank and/or financial institution jointly and/or
separately to eligible borrower upto a maximum
upto Rs.100 lakh per borrower subject to ceiling
amount of individual MLI may be covered.
 The cost of Annual Guarantee Fee (AGF) for
guaranteed loans with limit up to Rs.50 lacs shall
be absorbed by the Bank and to be paid to
CGTMSE by debiting Branch Charges account in
line with the existing guidelines.
The cost of Annual Guarantee Fee (AGF) for
CGTMSE guaranteed accounts within the limit
range of more than Rs.50 lacs to Rs.100 lacs shall
be borne by the borrower and to be paid to
CGTMSE by the Branch by debiting borrower’s
loan account through VPS mode.
Vendor ID (to be used in VPS while making
payment of guarantee fee to CGTMSE:
CRED1479666
Vendor Service Tax Registration Number:
AAATC2613DSD001
Vendor Name: Credit Guarantee Trust For Micro
and Small Enterprises (CGTMSE).
Initially, while taking guarantee cover for new
loans /enhancements/renewals concerned branch
has to pay the fees for one year as per the extant
guidelines. For subsequent years.
Annual Guarantee Fee (AGF) shall be paid at
Corporate Centre for whole Bank in a Centralized
manner on or before May, 31 of every year till the
end of the tenure of all guaranteed accounts.
The cost of AGF for CGTMSE guaranteed accounts
within the limit range of more than Rs.50 lacs to
Rs.100 lacs for subsequent years shall be paid at
Corporate Centre by debiting respective Circles
with instructions to recover such amount from
concerned borrower’s loan account.
The revised instruction for loans above Rs.50 lacs
will be applicable for all such guaranteed loans
sanctioned on or after 17.06.2014
(e.cir.sl.no:307/2014-15 dt:24/06/2014)
Extent of Guarantee Cover:
 It has now been decided by the CGTMSE to charge
differential rates of ASF/AGF depending upon the
NPA levels reported by the concerned MLIs. It is
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
the objective of the Trust to gradually move
towards a risk based premia. The existing
provision of the Scheme and the proposed
revised rate structure is detailed in
e.cir.390/2015-16 dt.01/07/2015.
(The effective date for levying the differential
rates of ASF/AGF has now been shifted to October
01,2015 as against July 01,2015 as indicated
earlier.(e.cir.683/2015-16 dt:31/08/2015)
 It has now been decided to scale down the extent
of guarantee cover from 62.50% / 65 %
(depending on the category of borrower/location
of the unit/credit facility) to 50% of loans
between Rs.50 lak to Rs.100 laks irrespective of
the category of borrower/location of the
unit/credit facility. . For loans above Rs.50 laks to
Rs.100 lack would stand modified accordingly with
the maximum guarantee cover being upto to
Rs.50 lakh. Care may be exercised by MLIs while
sanctioning additional loans which bring the
overall credit exposure within the above
mentioned category. (CGTMSE cir.70/2013-14
dt:16/12/2013)
 ‘Amount in default’ means the principal and
interest amount outstanding in the account(s) of
the borrower in respect of term loan and amount
of outstanding working capital facilities (including
interest) as on the date of the account becoming
NPA or the date of lodgment of claim application
whichever is lower subject to a maximum of
amount Guaranteed.
Guarantee cover would be for agreed tenure of
the term loan/ composite credit.
In case of working capital, the tenure is 5 years
or block of 5 years
Application for Guarantee cover for credit
proposals sanctioned in the quarter April-June,
July-September, October-December, and January-
March should be lodged before expiry of the
following quarter viz. July-September, October-
December, January-March and April-June
respectively
Applications are lodged online through the
website of CGTMSE
On approval of application by CGTMSE, a
demand advice (CGDAN) is generated
All the payments towards guarantee fee would
now be made by respective Nodal/Operating
offices of the Bank by means of RTGS/NEFT
only.(e.cir.sl.no: 61/2014 – 15 dt:17/04/2014)
SBLC DEOGHAR
 CGTMSE has now decided to discontinue the
procedure of acceptance of Guarantee Fee by
RTGS / NEFT from the Nodal / Operating offices
effective from October 01, 2014 and accept the
same by way of Demand Drafts / Pay orders, as
was being done prior to April 21, 2014. The
Existing procedure with regard to payment of
Annual Fees i.e. Annual Service Fee (ASF) and
composite Annual Guarantee Fee remain
unchanged. (e.cir.sl.no: 933/2014 – 15
dt:05/11/2014)
GUIDANCE NOTE FOR LOANS COVERED UNDER
CGTMSE : PROCESS OF GUARANTEE
APPLICATION (e-cir 1419 dt 16/02/2016)
MLIs (Member Lending Institutions) to apply
online in CGTMSE portal for guarantee cover for
eligible cases sanctioned by them.
Time Period: Application to be submitted by the
end of subsequent quarter of Loan Sanction Date.
(Loan sanctioned during 01st Oct 2015 to 31st Dec
2015 to be submitted before 31.03.2016)
(However operating units are advised to submit
the online application for CGTMSE cover
immediately after sanction of the loan)
Path in the System: Member Login area>>
Application processing>> Guarantee for >> Select
Type of facility sanctioned
After online approval of application by CGTMSE,
CGPAN is generated which is unique to the
credit facility sanctioned i.e. Term Loan (TC)/
Working Capital (WC).
Annual Guarantee Fee (AGF) is generated and
demanded by end of the day as per rate
applicable, which is visible to MLIs online for
facilitating payments. AGF to be paid within 30
days of generation of demand or first
disbursement of loan by MLI whichever is later.
On receipt of demand advice from CGTMSE, MLIs
are required to allocate the demands by ticking
against the correct CGPAN. Upon allocation, RP
number is generated.
MLIs to forward demand of AGF by means of
Demand Draft alongwith covering letter which
should specifically indicate the RP number to
CGTMSE. On realization of DD amount and
appropriation of the same in the system by
CGTMSE, guarantee of the unit commence. MLIs
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
to verify from CGTMSE portal about the
commencement of Guarantee through Path
Report and MIS >> Application related reports >>
CGPAN History
INVOCATION OF GUARANTEE / PREFERMENT OF
CLAIM: When the CGTMSE guaranteed account
turns NPA and chance of recovery is bleak, the
Bank needs to invoke the guarantee and lodge
claim with CGTMSE.
a) For Loan sanctioned on or after 01.01.2013,
Bank may invoke the guarantee within a
maximum period of two years from the date of
NPA, where the NPA date is after the lock-in
period*. If the NPA date is within the lock-in
period, the claim has to be made within two
years from the end of Lock-in period.
b) For Loan sanctioned prior to 01.01.2013, Bank
may invoke the guarantee within a maximum
period of one year from the date of NPA, where
the NPA date is after the lock-in period. If he NPA
date is within the lock-in period, the claim has to
be made within one year from the end of Lock-in
period.
*(Lock-in period of 18 months either from the
date of last disbursement or the date of issuance
of guarantee cover, whichever is later).
Before lodging claim, the operating official should
verify the following aspects and ensure that:
a) Guarantee is in force at the time of account
turning NPA.
b) Annual Guarantee Fee is paid in time.
c) Type of Activity mentioned in CBS is an eligible
activity under the Scheme.
d) NPA date is correctly inputted in CGTMSE site
within stipulated time frame.
e) Eligibility criteria and conditions for coverage
under the scheme are met properly.
f) Lock-in period has lapsed.
g) Recalled Notice served.
h) A legal proceeding has initiated. (For loans with
limit >Rs.50000/).
i) Approval for waiver of Legal action is on record
(For loans with limit upto
Rs.50,000/).
PRE-CONDITIONS STIPULATED BY CGTMSE FOR
INVOCATION OF GUARANTEE:
a) The guarantee in respect of a credit facility
should be in force at the time of account turning
SBLC DEOGHAR
NPA. That means the Annual Guarantee Fee (AGF)
has been paid to CGTMSE regularly within the
scheduled time. AGF is to be paid till the
settlement of 1st installment of the claim, to keep
the guarantee in force.
b) Lock-in period of 18 months either from the
date of last disbursement or the date of issuance
of guarantee cover, whichever is later.
c) The loan account has been classified as Non-
Performing Assets (NPA) as per norms.
Reasons for account turning NPA should not be
owing to actions/decisions taken contrary to or in
contravention of the guidelines issued by the
trust.
d) The date of classification of the account as NPA
in a particular calendar quarter should have been
informed to the Trust latest by the end of
subsequent quarter using the following option in
CGTMSE online system. (Member Login area >
Guarantee Maintenance> Periodic Info > NPA
Details)
e) The credit facility has been recalled. Date of
issue of recalled notice is required to be furnished
at the time of lodgement of claim.
f) The legal recovery proceedings have been
initiated. Initiation of legal proceedings can be
done by filing a suit in the Civil Court / LokAdalat /
RRA / DRT / SARFAESI Act. If recovery proceedings
are initiated under SARFAESI Act, physical
possession of security as per Section 13(4) of
SARFAESI Act has to be taken; merely giving a
notice is not sufficient. For loans with credit limit
upto Rs.50,000/- , waiver of legal action may be
permitted by a committee headed by an officer
not below the rank of General Manager.
g) Bank may use OTS / Compromise settlement
route for recovery (after release of first
installment of claim). CGTMSE is to be informed if
such settlement is negotiated. (Issue of notice
under Lok Adalat is sufficient to prove the legal
proceedings have initiated).
PROCEDURE FOR LODGING THE CLAIM ONLINE:
Before lodgement of claim application, the details
of disbursement / repayment /outstanding /
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
NPA / recovery etc. need to be updated in the
CGTMSE website. Operating official should
choose the “periodic information” menu for
updating the above details.
After updation of periodic information, the
guarantee can be invoked and claim lodged.
Detailed navigation paths are given below:
a) Login to CGTMSE website.
b) Select the ‘Claims Processing’ icon from the
main menu.
c) Select Claim for – First Installment/ Second
Installment (as the case may be)from the two
drop-down boxes provided just below the above
icon.
d) Fill the Claim Application form in all respects by
giving the CGPAN number of the borrower unit.
Details of subsidy (amount and date of credit)
received after date of NPA, if any, availed by the
borrower should also be furnished in the specified
table.
e) Print two copies (one for CGTMSE and other for
record) of this filled in application and submit to
the Trust along with a declaration and
undertaking duly executed by an Officer not
below the rank of the AGM of the Bank.
f) Furnish information as per Annex 7(i) of
Handbook on CGTMSE (duly signed by AGM) in
respect of claims up to Rs.20 lacs and Annex-7(ii)
for claims above Rs.20 lacs.
g) Bank Mandate Form authorizing CGTMSE to
credit of amount through RBI RTGS/NEFT to
be enclosed.
CLAIM SETTLEMENT: COMMITMENT OF THE
TRUST AND THE BANK.
The Trust shall pay 75 percent of the guaranteed
portion of the amount in default within 30 days of
receipt of complete information along with
declaration and undertaking signed by
appropriate authority (not below the rank of
AGM) subject to the claim being otherwise found
in order and complete in all respects. The amount
realized, if any, from the unit by sale of assets or
otherwise shall first be credited in full by the Bank
to the Trust before it claims the remaining 25 per
cent of the guaranteed amount.
The balance 25 percent of the amount payable as
mentioned above will be paid on conclusion of
recovery proceedings by the Bank or after 3 years
SBLC DEOGHAR
of obtention of decree of recovery, whichever is
earlier.
COMMON REASONS FOR REJECTION OF CLAIMS:
a) Account was irregular on the date of obtaining
guarantee cover. In such cases CGTMSE reject the
claims stating the reason as “Material Date”.
Almost 80% claims are rejected by CGTMSE due to
this reason.
b) Claim not lodged within prescribed time limit
(linked to NPA date).
c) NPA date either not reported or reported late.
d) Claim lodged after lapse of Guarantee Period.
e) Activity found ineligible on later date.
COMMON REASONS FOR DELAY IN CLAIM
SETTLEMENT:
a) Claim Form is not filled in, with proper
information.
b) Mismatch in data provided in claim application.
c) Non submission of Declaration and Undertaking
& Mandate form.
d) Query from CGTMSE not responded by the
operating office.
e) Claim not submitted online.
f) Required documents as advised by CGTMSE not
submitted in time to their Auditors for
verification.
SME ASSET PRODUCTS
AUTO CLEAN : Since Discontinued
SWAROJGAR CREDIT CARD : Since Discontinued
CYBER PLUS : Since Discontinued
SCHCOOL PLUS : Since Discontinued
SBI DENTAL EQUIPMENTS PLUS : Since Discntd
SBI SHOPPE PLUS : Since Discontinued
SBI PARYATAN PLUS : Since Discontinued
TRADER’S EASY LOAN : Since Discontinued
TRANSPORT PLUS : Since Discontinued
Stand by line of credit for purchase of vehicle :
Since Discontinued
ARTISAN CREDIT CARD
Artisans in the handicrafts sector and not
covered by the government sponsored loan
schemes.
Eligibility : Minimum score of 60% under the
simplified scoring model. ● Preference to be given
to artisans registered with the Development
Commissioner (Handicrafts).● Thrust to be to
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
finance in clusters and preferably those supported
by a Self Help Group (SHG) ● Existing borrowers
with limits upto Rs.2 lacs and satisfactory track
record are also eligible.New units are also eligible
Beneficiaries of other Govt sponsored loan
schemes not eligible
A photo card and passbook is issued
Assessment of working capital as per Nayak
Committee (20% of anticipated turnover)
Maximum Loan – 2 lakhs
Margin upto Rs 25000/- Nil
Above Rs 25000/- and Upto Rs 2 Lakhs – 20%
Validity for 3 years subject to annual review
based on assessment of performance during
inspection by field staff & operation.
Processing fee : As applicable to SSI segment. No
fee to be charged for review/renewal of the limit.
Beneficiaries registered with Development
Commissioner (Handicrafts) eligible for coverage
under group insurance scheme. Premium to be
shared between Govt & Beneficiaries in the ratio
60:40 or as mutually agreed between office of DC
(Handicrafts) and insurance company
SME CREDIT CARD
Units in existence for 2 years with excellent
performance & credentials whether banking/not
banking with us/other bank
Maximum Loan- Rs 10 Lakh
Margin upto Rs 25000/- NIL
Above Rs 25000/- & upto Rs 10 lakh- 20%
Minimum score 60% as per scoring model (36
out of 60)
Assessment : For professional and self
employed: Assessment of credit at 50% of gross
income shown in IT return. A scoring model has
been designed and those units which score a
minimum of 60% qualify under the Scheme for
which the working capital assessment will be
made as under:
i. For small business, retail traders, etc.,
- 20% of their annual turnover OR
- 20% of turnover of the last 12 months in their
accounts, whichever is higher.
ii. For self- employed and professionals
- 50% of gross annual income as declared in their
income tax return
iii. For SSI units
- As per Nayak Committee norms ie. 20% of
annual turnover
SBLC DEOGHAR
Validity: The limit will be valid for 3 years but is
subject to annual review. A major portion of the
sales turnover should have been routed through
the account as revealed by the credit
summations.
Collateral : SSI – No collateral is to be insisted
upon (To be covered under CGTMSE),
SBF—For loans more than Rs.25000/- charge over
movable /immovable property/ third party
guarantee. All loans that are eligible for guarantee
cover under credit guarantee scheme of CGTMSE
should be invariably covered under the scheme.
Repayment : The working capital component
should be reviewed every year provided the credit
summation is not less than 50% of the projected
turnover. If the credit summation is less than 50%,
then a repayment schedule should be fixed for
the outstandings in suitable monthly instalments.
The Term Loan component should be repayable in
a maximum of 5 years in suitable instalments.
Stock Statement : To be obtained annually as on
28th February
SME SMART SCORE
Age of chief promoter / Chief executive should
be between 18 and 65 years
Promoters should not be defaulters to the banks
financial institutions.
All the clearances including but not limited to
environmental clearance for the project should
have been obtained & satisfactory evidence of
their being made available
Promoters should be to the area of operation of
the branch and should have satisfactory
references
Loan Amount:
i) Manufacturing Units: Rs 5 lacs to below Rs 50
lacs, (20% of Projected sales for WC loan and 67%
of project cost for TL)
ii) Trade & Services: Rs 5 lacs to Rs 25 lacs, (15% of
Projected Sales for WC and 67% of Project cost for
TL)
Margin: 25% for WC & 33% for TL
Working capital loans to be sanctioned for two
years, specifying the limit requirement for each
year. Documents are to be obtained for higher of
the two limits. The limits assessed and sanctioned
for the second year should be released after a
satisfactory review of achievement of the
projected level of operations for the first year.
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
Minimum score 60% as per scoring model i.e.
60 out of 100 with a minimum of 50% under each
sub head like Person details (max:30 marks),
Business details (max:50 marks) & collateral
details (max: 20 marks)
Minimum Marks under collateral details are 10
except in cases where Collateral should not be
asked as per Bank’s norms, where the minimum
mark will be nil
Units not able to score 60% or more marks in
the scoring model can still be considered by the
Branches under the normal credit dispensation
based on specific considerations
Repayment of TL not more than 5 years
excluding moratorium not exceeding 6 months
Working Capital loans to be renewed if credit
score is 35 and above out of 60 under business
score
DOCTOR PLUS
 Eligibility: Medical Registered Practitioners of any
discipline. In case of partnerships, corporate,
trusts with powers to borrow, Key promoters
should be registered qualified medical
practitioners and should possess minimum
qualification to practice in a discipline such as
MBBS/ BDS/ BAMS/ GAMS/ BHMS.
 PURPOSE: For purchase of equipment, For setting
up clinic, nursing home, path. Lab, drug store,
ambulances, computers, vehicle, etc. For dentists,
the loan also covers dental implants besides
equipments; For orthopaedists, the loan also
covers various replacements/ implants for hip/
knee/ shoulder/spine etc. Expansion/ renovation
of existing premises. Any other activity related to
medical profession.
 Loan Amount :
1) a.) In Metro/ urban for Corporates
partnerships/ Trust : Maximum of Rs.10 crores of
which a sub ceiling.
b.)In Metro/ urban for individuals/Proprietorship :
Maximum of Rs.5 crores of which a sub ceiling.
2) a.) In Rural/Semiurban centres for Corporates/
partnerships/Trusts/individuals/proprietorship:
Rs.5 crores with sub-ceiling.
Sub-ceiling for Working capital limits :
• 10% of total loan amount for up to Rs.1 crore
• 5% of total loan amount for above Rs.1 crore
3). For Non Allopathic doctors (Unani,
Ayurvedic,Homeopathic): Maximum of Rs.10 lacs
SBLC DEOGHAR
of which a subceiling for working capital limits at
10% of total loan amount.
Margin : Upto Rs. 10 lacs : 15%,
Above Rs.10 lacs Upto 5 Crores: 20%,
Rs. 5 Crores – Rs. 10 Crores : 25%
Minimum DSCR : 1.50
 Minimum score of 40 as per Scoring Model for
loan upto 25 lakhs. CRA Model applicable for loan
above 25 lakhs . should not go beyond SB 8.
Collateral : No tangible collateral security for
loan amounts upto Rs.1 crore. These are to be
covered under CGTMSE scheme.
For loans above Rs.1 Crore: Tangible security for
at least 25% of the loan amount and Personal
guarantee of promoters.
Upfront Fee – concession of 50% on card rates.
Disbursal – Over a period of 24 months.
Repayment: Maximum period up to 5 years
(including moratorium period): For buying
equipments and expansion/ renovation/
modernization of existing premises. Maximum
period up to 7 years (including moratorium
period): For setting up clinic, nursing home,
pathology labs, drug store and other
infrastructure.
Max. moratorium – 12 months
Disbursements can be made in installments over
a period of 24 months
Inspections will be carried out at half-yearly
intervals. End use of funds should be monitored.
WORKING CAPITAL FINANCE TO TRADE &
SERVICE SECTOR
Retail and wholesale traders in agricultural and
industrial commodities, Dealers in consumer
durables, consumer goods, vehicles, showrooms,
etc.
Units in C&I segment established with profits at
least in the preceding 3 years with CRA rating of
SB9 and above
Working capital requirements
 Cash credit limit with a sub-limit for LCs if
required
15% of projected annual turnover which should
not be more than 25 % of the turnover in the
previous year subject to a maximum of Rs.5
Crores
Margin: 25%
A concession of 0.50% may be offered for units
with at least 75% collateral coverage
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
Collateral security of at least 50% is to be
prescribed. Based on Credit Risk Assessment,
antecedents and market reputation of borrower,
reduction in collateral coverage may be allowed
to be reduced up to 25% of the total exposure for
sanction by & upto NCC/SMECC. No
administrative approval of CCC-II is required. In
respect of advances to the trade sub-segment
only sanctioned by CCC II and above, a minimum
of 10% collateral may be considered in
exceptional circumstances subject to permission
of appropriate authority
In case the proposal does not fit into the
turnover based model of credit assessment, the
traditional method of projected balance sheet
method may be adopted.
SME CAR LOAN (MIGRATED TO PBBU)
Purpose: To provide term loan to SME unit
having borrowing arrangements with the Bank, or
their family members either in their own name or
in the unit’s name & SME CA holders of the Bank
of their family members either in their own name
or in the unit’s name, and other
SME clients banking with other Banks.
In case of borrowers of other banks, Bank has to
advise their existing bankers of the sanction of
their loan and ensure that the borrower’s account
is standard with that Bank. MCG units of the Bank
will also be eligible for the product.
Eligibility: Minimum Net Annual Income
Case I – When the loan is availed of in the name
of an individual: Individual must have a Gross
Taxable income of Rs. 4 lacs and above for the
last year as per income tax return.
Case II – When the loan is availed of in the name
of unit:
Since the promoter/partner will be the joint
applicant and is also liable to repay the loan so
he/she should meet the following criterion:
Income: The joint applicant must have a Gross
Taxable income of Rs. 4 lacs and above for the
last year as per income tax return or should have
a minimum net profit of Rs. 4,00,000/-
Loan Amount:
The maximum loan amount would be 2.5 times
the net annual income (i.e., income as per latest
income tax return filed less tax payable).
SBLC DEOGHAR
Regular income from all sources can be
considered provided the sanctioning authority is
satisfied with the proof of income.
The income of spouse can be included provided
the spouse guarantees the loan.
Whenever “Senior Executive” has joined-in as a
co-applicant after fulfilling all the above
mentioned conditions, his (Senior Executive’s) Net
Annual Income (NAI) shall be clubbed with the
NAI of joint applicant (Promoter / Partner) to
determine the Maximum Loan Amount
For new vehicles, there is no ceiling in loan
amount (For Used Vehicles: Max Rs 15 Lakh)
In any case the EMI/NMI* percentage should not
exceed 50%.
Margin: 15% of the ‘on road price’ of the vehicle
Repayment: In Monthly/Quarterly installments;
Maximum 7 years (For Used Vehicles: Within 7 yrs
from date of Original sale)
Documents: P Segment Car loan documents
Security: Only Hypothecation of Vehicle
Processing Fee:
1. When loans are sanctioned: 0.51% of the loan
amount subject to minimum of Rs.1020/- and
maximum of Rs.10,200/-.
2. When loans are rejected: 25% of the
‘Processing Fee’ will be retained if the application
is rejected after pre-sanction survey subject to
minimum of Rs.500/- and maximum of Rs.2500/-
Prepayment penalty: Waived
FINANCE TO RESTAURANTS
Term loan or overdraft to owners of Restaurants
&Fast food chains
Purpose : For purchase of Kitchen equipments,
For investment in Interior decoration, For
purchase of furniture and fixtures, For purchase of
land and construction of buildings
Loan Amount: Investment in the Restaurant for
the aforementioned purposes less margin /
promoters contribution whichever is lower
Margin: 25%
Repayment: Up to 7 years when land and
building cost included in loan, otherwise 5 years
Collateral:
Extension of charge over current assets, fixed
assets and other existing collateral if any
Obtaining additional tangible security such as
immovable property, bank deposits, etc. is to be
explored wherever possible
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
In all cases personal guarantees of
proprietors/partners/promoters to be invariably
obtained
In cases of corporate restaurants, pledge of
promoter’s equity should be examined
Inspection Monthly by the Field Officer and
quarterly by the Divisional Manager / Branch
Manager as per extant instruction for trade
advances.
SBI CONSTRUCTION EQUIPMENT LOAN:
(e.cir.sl.no:1145-2014-15 dt:26/12/2014)
Considering the opportunity in the Construction
Equipment segment the modified CEL is brought
in a revised scheme called SBI Construction
Equipment Loan (SBI-CEL
INDICATIVE LIST OF CONSTRUCTION EQUIPMENT
FOR WHICH LOAN MAY BE MADE AVAILABLE :
Excavators, Backhoe Loader, Tippers/Dumpers,
Transit Mixer, Compactors, Wheel loaders, Road –
Rollers, Fork Lift, Rock breakers, Crushers &
others
Target group
• Existing Construction Equipment owner, mine
owner, contractor, builder, port operator, other
captive business Individual/Self Employed/
Proprietor / firms / companies / Trust/Societies
Purpose: Term loan for funding of purchase of
new Construction Equipments. (Mining, material
handling, earth moving etc)
Facility :Term Loan/ pre-approved line of credit
for 12 moths Dropline Overdraft facility
Eligibility :Minimum 3 years experience in
business. Ownership of minimum 5 Construction
Equipment (NA for captive users)
Minimum loan requirement amount Rs.25 lacs
Satisfactory track record with existing banks/FIs
for the last one year, Income Tax Assesse
(personal & Business),Borrower has to get
minimum eligible score under Pricing Matrix to be
eligible for SBI Construction Equipment Loan
Finance Scheme.
Loan Amount :Minimum Rs.25 lacs
Loans above Rs 25 Crores cannot be sanctioned by
any Committee below CCC-I.
Drawals against aggregate limit sanctioned for
purchasing vehicles can be permitted upto 12
months from the date of sanction, beyond which
unutilized limit would lapse.
1st year’s premium under General Insurance will
be covered under the loan and will be amortized
SBLC DEOGHAR
throughout the tenor of loan. [Two separate
accounts for "Loan Amount" and "Insurance
Premia Loan Amount" may be opened]
Interest Rate:(Interest Rate based on scores
under the Pricing Matrix as below)
Contractor/ Owner Captive User
Strategic Customer* BR + 100 bps BR + 100 bps
Retail Customer** BR + 200 bps BR + 175 bps
Power to extend 25 bps concession given to CCC-I
for strategic customers
Power to extend concession upto Base Rate given
to MD & GE (NB) for strategic customers only.
• Note: Interest rate is not linked to CRA model.
*Strategic customers are customers scoring 60%
and above (for contractor) and 55% and above
(for captive user) in the pricing matrix **Retail
customer is customer scoring between 40% and
60%(for contractor) and scoring between 40% and
55%(for captive user) in the pricing matrix.
Interest concession on satisfactory repayment
• In case of satisfactory repayment (payment of
instalment within 3 day from due date), after end
of every year, 10 bps concession will be provided
on the annualised interest rate till liquidation. In
case repayment is not satisfactory during any
year, no concession will be provided next year and
same interest rate will continue to be charged
for the entire tenor and no further concession will
be provided.
• No concession will be available to the borrower
when Base Rate is charged.
Margin : Margins are linked to the scores under
Pricing Matrix.
Contractor/Owner Captive User :Min
10%(Strategic customer) Min 15% (Retail
Customer)Min 10% (Strategic Customer ) Min 15%
(Retail Customer )
• Power to reduce Margin to Nil for customers
scoring more than 55% vested with CCC-I.
Repayment:
• Repayment upto maximum 4 years.
• Repayment in EMI basis. Customized repayment
is possible depending on cash accruals.
Processing fee
• Min Rs 25000 per equipment, subject to
maximum Rs 3 lacs. In case of pre-approved line
of credit, service fee to be charged based on
disbursement made for purchasing equipment.
• Sanctioning authority can reduce upfront fee as
per the matrix:
Contractor/Owner Captive User
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
Upto Rs 10000 per equipment Upto Rs 10000 per
equipment
• CCC-I vested with power for 100% concession on
processing fee.
Pre-Payment Fee
• For Individuals: NIL
• Upto 2 years, 4% of the outstanding amount.
• Beyond 2 years, 2% of the outstanding amount.
PenalInterest • 2% on the entire outstanding for
the period of default.
Primary Security
• Hypothecation of the Equipment (s) financed by
the Bank. Registration of charge with RTO is to be
ensured wherever applicable.
Collateral Security
• Minimum 25% collateral.
• CCC-1 can waive the collateral requirement upto
Zero for strategic customers. (tangible collateral
may include tangible collateral and
unencumbered existing construction equipments)
(current resale value to be taken)
Guarantor
• For individual/proprietors, third party
guarantees to be insisted upon.
• In other cases: Personal Guarantee from the
Promoters/Partners
/Directors of the Unit will be mandatory.
Assessment
• Term loan as per the requirement.
• Pre-approved line of credit can be given to the
borrowers for 12 months based on its annual
purchase plans and disbursement can be made
based on the orders/deployment schedule.
Commitment charge
• 1% for undrawn limit beyond 3 months
(not applicable for pre-approved line of credit)
Preapproved line of credit
• Pre-approved line of credit may be sanctioned
to the customers for 12 months based on the
projected purchase/deployment schedule of
Construction Equipment and based on
project/contract agreement disbursement can be
made.
Insurance
• Comprehensive Insurance with endorsement in
favor of SBI as “loss payee”
Inspection
• Half Yearly. In case of irregularity, inspection
frequency may be increased.
SBLC DEOGHAR
Other Points
• The premium of General Insurance for the first
year will be financed under the scheme and can
be repaid along with the regular repayment
schedule.
• PDCs/ECS to be obtained for entire repayment
period at the time of disbursement.
• Work order to be given very high importance
while considering the loan. Wherever possible,
escrow mechanism to be put in place
• Pricing is not linked to CRA but pricing matrix
SBI ASSET BACKED LOAN (ABL):
(It has been decided by the Bank to remove the
primary security clause under ABL and ABL CRE.
Hence, ABL and ABL CRE can now be sanctioned
against mortgage of collateral security only.)
(e.cir.sl.no 306/2014 – 15 dt:24/06/2014).
Scheme Features (e-cir 732 dt 01/09/2016)
 Target Group: All Business Units who want to avail
loan facility for manufacturing and services activities
covered by MSMED act 2006, wholesale/retail trade.
 Eligibilty : i. Existing Customer already availing
credit facilities from us.
ii. New units with marketable assets to offer as
security.
iii. Takeover of existing units from other Banks/ FIs
with satisfactory track record. (Credit information
report to be obtained) .
 Takeover Criterea : a) Credit Information Reports
from CICs/CIBIL Report should be satisfactory and
Credit Opinion Report from other Banks to be
obtained. B) Bank statements of all accounts of the
constituent with other banks for last 12 months are to
be mandatory obtained and perused. C) The name of
the promoters /directors/guarantors should not be
appearing in the list of defaulters/ wilful defaulters/
CRILC/ Caution lists, etc. d) Accounts restructured
under CDR, JLF mechanism, MSME restructuring
Scheme, etc., and accounts under rehabilitation or
under OTS should not be taken over. E) Takeover of
loans from our associates / subsidiaries companies are
not permitted. F) NPAs / SMA should not be taken
over G) iProbe should also be verified. H) Bank’s
other takeover norms will not be applicable under this
scheme.
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
 Loan Amount: Min Rs.10 lacs to Max Rs.20 Crore
 LTV% : Immovable property :
• For loans upto Rs 10 Crores: 60% of the realizable
value
• For Loans above Rs 10 Crores upto Rs. 20
Crores: 50% of the realizable value
Assessment of Loan Amount
Working Capital - Based on the projected sales as
per Nayak committee (UPTO Rs. 5.00 crs) or
Assessed Bank Finance (more than 5 crs),
Term Loan -Based on the actual expenditure
Proposed.
REPAYMENT : Drop-line Overdraft:
• Limits can be sanctioned for periods ranging
from 12 months to 180 months with either
equated reduction in limit or customized
reduction in limit, depending upon the cash
accruals.
• Moratorium under the scheme should not be
more than 18 months based on activity. Interest
to be serviced monthly in case of moratorium.
• The drawing power shall be reduced monthly so
as to have the overdraft liquidated at the end of
the period.
• Regular transactions are permitted upto
drawing power available.
• No over-drawings permitted.
• Concessions sanctioned within delegated
concessionary powers will be reviewed every year
at the time of review of the limits
 Stock Statements : Quarterly Operational
Data cum status of working capital funds
statement on Quarterly basis.
(May/Aug/Nov/Feb).
• Drawing Power is not linked to Quarterly
Operational Data cum status of working capital
funds statement. However, current assets level as
per quarterly operation data should be more than
bank borrowings.
 Renewal /Review : No renewal of limit.
• Review has to be carried out annually and put
up to sanctioning authority under whose powers
total/aggregate exposure to the borrowing
unit/entity falls.
 Inspection : Half yearly inspection of
property and unit/activity.
• Only digital inspection application to be used.
 ECR : ECR not mandatory
SBLC DEOGHAR
 Hurdle and CRA Rating : CRA to be done
as per the extant instructions; however, CRA will
not be linked with pricing.
• Unit with CRA of SB 10 and below is not eligible
for finance under ABL.
• In case, at the time of review, unit’s internal
rating is SB 10 and lower, interest benefit under
ABL will be withdrawn and CRA linked pricing will
be applicable.
 End use of funds : End use of funds to be
ensured immediately upon disbursement of loan,
through inspection/verification of purchase bills,
etc. In addition, QOD cum status working capital
funds statement to be obtained from the
borrower to confirm the level of current assets
and end use of funds
 Special Mention : The end use under
“SBI Asset Backed Loan” does not include
“Commercial Real Estate”.
SBI ASSET BACKED LOAN FOR COMMERCIAL
REAL ESTATE
 Target Group:
Proprietorship/Partnership/Company
 Eligibilty : Existing customers with a satisfactory
track record. New connections including take -
over can be considered subject to take- over
norms. Unit with CRA of SB 10 and below is not
eligible for finance under ABL (CRE). In case at the
time of renewal unit’s internal rating is SB 10 and
lower, interest benefit under ABL (CRE) will be
withdrawn and CRA linked pricing will be
applicable.
 Type of loan : Drop line Overdraft facility
 Purpose : Creation/acquisition of real estate such
as office buildings, retail space, residential
building, industrial or warehouse space, multiplex,
hotels, restaurants, gymnasium, amusement
parks, cold storage, education institution etc
where the prospect for repayment would
generally be lease or rental payment or sale of
asset. For both working capital (including pre-
operative expenses) and fixed asset.
Loan Amount: Minimum - Rs.10 lacs Maximum
loan amount:
Tier I Branch: Rs 50 Crores
Tie II, III Branch: Rs 20 Crores
Tier IV,V, VI Branch: Rs 5 Crores
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
 Assessment of Loan Amount
Working Capital - Based on projected cash flow of
the project.
Fixed Asset : Based on the project cost after
deducting various advances/deposit
received/receivable from the project.
Maximum Permissible Amount against the
property i.e.LTV - 60% of the realizable value
 Margin - 25% margin on project cost for fixed
asset requirement
 Repayment
Drop-line Overdraft: Limits can be sanctioned for
period of 12 months to 96 monthsthrough
Equated Monthly Installments (EMI) or
customized repayment depending upon the cash
accruals.
Special Features:
 Prepayment Penalty - 2% of the limit
 Penal interest- 1% , if overdue more than 30
days
 Valuation Of Property- Property mortgaged
needs to be within a radius of 25 km from the
Branch, wherein account is maintained.
Valuation of property to be carried out as per
the Bank’s extent instructions. Fresh valuation
of property to be carried out every 3 years
and any shortfall has to be topped up.
 Stock statements need to be furnished at the Half
yearly during second quarter and last quarter of
financial year.
 Review/ Renewal – No renewal of limit. Review
has to be carried out annually.
 Inspection - Half yearly inspection of property and
unit/activity. Only digital inspection application to
be used.
 Special - ECR is mandatory for sanction of limits
above Rs 10 Crores but will not be a factor for
pricing.
Earlier the bank had restricted sanction of ABL
only in limited number of branches. Now the
authorized branches for sanction of the loan
under the schemes are as under,
i. All branches linked to SMECCC/RASMECCC can
sanction loans under ABL & ABL CRE.
ii. All Scale III and above branches can sanction
loans under ABL & ABL CRE.
(e.cir.sl.no: 589/2014 – 15 dt19/08/2014)
The type of properties which cannot be
considered as collateral security for mortgage
under ABL and ABL CRE are:
a. Agricultural land
SBLC DEOGHAR
b. Properties on which social infrastructures are
created like School, college, university, old age
home, hospital.
c. Special Economic Zone property
ABL(CRE) REVISION IN PRODUCT FEATURES is
detailed in e.cir.927/2015-16 dt:26/10/2015.
RENT PLUS LOAN SCHEME : (SINCE CLOSED)
NEW LRD SCHEME LAUNCHED BY CPPD
Quantum of Loan : Minimum Rs.50,000,
Maximum Rs.10 Crores
Margin : 25% (reduced from the earlier level of
40%)
Period of loan : 10 years or the residual lease
period, whichever is less
Purpose : To meet borrower’s liquidity mismatch
Eligible customers * Owners of residential
buildings and commercial properties, which are to
be rented or already rented to MNCs/Banks/
Large & Medium size Corporates and Government
offices (both Central and State). The stipulation of
External Credit Rating (ECRA) for Borrowers under
Rent Plus Scheme (Upto Rs.10 Cr) and other loans
under Rent Securitisation route (more than Rs.10
Cr) has been dispensed with and the loan product
is available to all categories of borrowers.
Location of Property Properties located in
Metro/ Urban/ Semi-urban/ Rural areas.
Administrative clearance in respect of properties
located in rural areas is dispensed with. However,
Plan approval and other approval and other
related permissions for the property from
appropriate authority need to be in place.
Scale of Finance Lowest of:
i. 75% of realisable value of the property
mortgaged (as per latest valuation report of the
bank’s approved valuer).
ii. Maximum permissible under the scheme.
iii. 75% of total rent receivable for the residual
lease period, loan period, whichever is lower
minus total of advance deposit, estimated amount
of property tax, service tax, TDS and other
statutory dues for the period
Collateral Security :The realisable value of
property to be mortgaged should be at least 135%
of the amount of loan
Inspection: Half Yearly
Review :Annual
Deviations: Any deviation in the scheme to be
approved by a committee not lower than CCC-1
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
FLEXI LOANS SCHEME
The ‘Flexi Loans’ Scheme has been devised to
meet most of the requirements of the units under
the Small Business sector through a single product
Purpose : The loan can be considered for any
general purpose like:
- Holding of stocks/book debts
- Acquisition of land and building
-Building construction/ upgradation and
renovation of offices, show rooms, godowns, etc.
- Purchase of equipment, furniture and vehicles,
etc.
- Substitution of high cost debt.
- Shoring of networking capital
- Computerisation expenditure
Eligible Customers : A) Traders in goods,
commodities and services, Business Enterprises,
Professionals and Self-Employed persons and
Transport Operators covered under SBF segment,
are eligible to avail of the facilities offered under
the scheme.
B) The business unit should have earned pre-tax
profits in each of the immediately preceding 3
years. The scheme is extended only to established
traders with proven record of profitability.
Quantum of Finance : Minimum: Rs.5 lacs
Maximum: Rs.1 cr.
Margin : 20%
Repayment : The loan may be repaid in 3 to 5
year’s time in monthly /quarterly instalments,
depending upon the production cycle and/or cash
generation.
Collateral :
(i) a) Tangible collateral security equivalent of at
least 35% of advance in respect of borrowers with
a satisfactory tack record of 3 years.
b) 50% in respect of others
(ii) Personal guarantees of proprietor/ partners/
promoters will be invariably obtained. Further an
undertaking will be obtained from the borrower
that they shall not raise any further loans without
Bank’s written consent. (However, all loans that
are eligible for guarantee cover under credit
guarantee scheme of CGTMSE should be
invariably covered under the scheme.)
Calling up of Loans : As a matter of policy, the
flexi loans should be called up if instalments
remain overdue for 3 quarters (i.e. 9 months).
SBLC DEOGHAR
SBI FLEET FINANCE SCHEME
( MODIFIED TRANSPORT PLUS)
E Circulars No. : 1031/2013 – 14/ December
10,2013 , 1181 / January 28,2014 & 1246/
February 13,2014,44/2014-15 dt:07/11/2014/,
42/2015-16 dt: 16/10/2015 and 987/2015-16
dt:05/11/2015
 Eligibility: Existing Fleet Operators
(Goods or Passenger) having existing fleet of
minimum 10 vehicles. Requirement of minimum
10 new vehicles or minimum loan amount Rs. 50
Lacs. Borrower has to get min 35% score under
scoring model. SRTOs will not be eligible
Loan Amount : Minimum- Rs 50 lacs, Maximum-
Rs. 10 Crores . • Loans above Rs 10 Crores upto Rs
25 Crores approval required from CCC_I.
• For loans above Rs 25 Crores approval required
from WBCC -II
 Margin: Linked to Scores under Scoring Model
 Repayment - Upto maximum 66 Months based on
scores under scoring model. Scores between 35%
to less than 60%: Max 60 months,
Scores 60% and above: Max 66 months
Repayment in EMI basis. Customized repayment is
possible depending upon cash accruals.
 Collateral Security- Min 20% tangible
collateral including unencumbered vehicles in the
existing fleet (current resale value to be taken) (In
case, the borrower has scored minimum 60% and
above under the scoring model, sanctioning
authorities may allow for ‘Nil Collateral’ with
additional 25 bps in interest rate)
 Guarantor- Personal Guarantee from the
Promoters/Partners /Directors of the Unit will be
mandatory. For proprietary concerns, third party
guarantee is mandatory.
Minimum Average DSCR (gross) : 1.5(below 1.50,
special approval from authority one step higher
than sanctioning authority)
SBI SHOPPE
Purpose
For purchase of new / old shops / establishment
/ offices by SMEs, SSSBEs, self-employed and
professional persons, etc.
Modernization / renovation / face lifting of
shops, Expansion /addition /alteration to shops.
Dealer’s showroom: Dealer’s showroom under
tie-up arrangement with the reputed industries
(viz. Bajaj, Hindustan Lever, Mahindra).
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
Building for Training Centres, Services Centres,
Repairs Centre/Garage
Building for Consultant/Chartered Accountants
All furniture/fixtures, electrical fittings and other
accessories required for the
showroom/offices/shops
Loan Amount:Maximum of Rs 20 Lakhs
Margin:25% for new and 40% for purchase of old
property.
Repayment:3 to 7 years excluding a maximum
moratorium period of 6 months
Minimum DSCR:1.75
No Objection Certificate and No Lien Letter to be
invariably obtained from the owner-lessor of the
property in the case of rented property
Repayment period should be well within the
lease period in the case of rented property
SBI SMILE
Launched in place of Equity Fund Scheme
Interest Free Loan for providing equity assistance
to professional and technically qualified
entrepreneurs setting up new Micro and Small
enterprises (MSEs) and units covered under the
Bank’s Project Uptech for technology up gradation
Professionals and Technically qualified persons
for this scheme will cover doctors including
dentists, engineers (diploma and degree holders),
management graduates etc
Should be a new unit except in case of units
covered under Bank’s Project Uptech Programme
Entrepreneur must devote his direct and full
attention to the unit
Should not be involved in any other unit in any
capacity- proprietary or administrative
Entire borrowings should be confined to the
Bank
Total project cost should be more than Rs 10 lacs
Extent of Assistance
For Micro and Small Scale industries and units
under Project Uptech- Min Rs 1 lac & Max Rs 10
Lacs
For professionals and self-employed persons Min
Rs 50000/- & Max Rs 5 lacs
Equity assistance should be in multiples of
Rs.1000/- rounded off to the nearest thousand
Additional ELA may be considered in case of
escalation in project cost during implementation
process subject to the above ceilings
Computation of Assistance
SBLC DEOGHAR
Difference between applicable margin (15%) and
capital contributed by entrepreneur including
seed capital & subsidy, if any, subject to the above
ceiling
Min Equity Contribution by Entrepreneur – 7.5%
of cost of Project
Repayment: In 3 yrs after initial moratorium of 5
to 7 yrs
Disbursement – in lump sum or in Installments
RICE MILL PLUS (SSI)
Purpose: Acquisition of machinery/factory
building for modernization & Working capital
needs.
Eligibility : a) Profit making existing units with
CRA rating of SB-9 and above as per the simplified
CRA system for Rice Mills. B) Take-over of good
units, subject to observance of takeover norms
Takeover permitted. Newly established units also
eligible.
Type of Facilities : TL, CC, Outward Bill Limit, LC,
BG & SME Credit Plus (for unforeseen exigencies)
Loan Amount : No upper ceiling
WC assessment as per Nayak Committee for
limits upto Rs 5 Crores. Higher Limit under PBS
Method can be considered Peak & Non Peak
Limits may be fixed depending upon actual need
Margin : TL - 15-25%, WC (Stocks): 15-20% for
(paddy & rice), Broken (20%), Bran (30%), Gunny
Bag (40%), WC (Book debt): 40% (Cover period-
Max 60 days). (Can be lowered upto 25% where
adequate collateral is available).
Repayment- TL- 5to 7 yrs excl max gestation
period of 12 months
Collateral: Loans upto Rs.50 lacs to be
mandatorily covered under CGTMSE.
For loans of Rs.50 lacs – Rs.1 cr to be covered
under CGTMSE only if the guarantee fee is borne
by the borrower.
Loans without CGTMSE cover :
Units with CRA rating SB-4 and above: Equitable
mortgage of property / tangible security
belonging to borrower / guarantor valued not less
than 50% of the loan amount.
Units having CRA rating SB-5 to 9 : Equitable
mortgage of property / tangible security
belonging to borrower / guarantor valued not less
than 75% of the loan amount.
Processing Fee: Rs 115 per lac
Upfront fee for TL- 0.60% of loan amount
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
Issue of Draft/BC/Cheque Collection- 50% of
applicable charges.
The Scoring model will be used for pricing
purpose only
DALL MILL PLUS SCHEME
 Eligibility :
a) Profit making existing units with CRA rating of
SB- 9 and above as per normal Credit Risk
Assessment(CRA new).
b) Take-over of good units, subject to observance
of takeover norms.
 Purpose :
a) Working capital needs
b) Acquisition of machinery/factory building for
modernisation/ Expansion etc.
 Nature of facilities :
Term Loan, Working capital, Non fund based
facilities, Cash Credit, LCs, BGs, SME Credit Plus.
 Assessment and Quantum of Finance
For limits upto Rs.5 crores- Nayak committee
method would be applicable. Being a seasonal
industry peak level and non peak level limits can
be fixed depending on the actual need. A higher
limit can be considered selectively on projected
balance sheet method.
Margin :
Term Loan: 15% - 25%
Working capital: Stocks 15% - 20%,
Book debts: 25% - 40% (cover period -60 days).
Repayment :
Term Loan: 5 to 7 years excluding the gestation
period of maximum 12 months.
Security : Collateral:
Loans upto Rs.50 lacs:
To be mandatorily covered under CGTMSE.
For loans of Rs.50 lacs – Rs.1 cr
To be covered under CGTMSE only if the
guarantee fee is borne by the borrower.
Loans without CGTMSE cover:
Equitable mortgage of property /tangible security
belonging to borrower / guarantor valued not less
than 75% of the loan amount.
GENERAL PURPOSE TERM LOAN- SSI (GPTL- SSI)
Existing SSI Borrowers with CRA rating of SB3
(Old)/SB7(New) and above (as far as possible,
minimum limit Rs 25 lakh)
Should have earned pre-tax profit for last 3 years
Should not have no history of default of any kind
SBLC DEOGHAR
Purpose: Shoring up of NWC; Capital
Expenditure; Substitution of high cost debt; R&D
expenses; Quality up gradation to ISO standards
Loan Amount- Maximum Rs. 50 lac
Margin – 25%
 DSCR of 1.5; TOL/TNW not to exceed 3, Total
Long term liabilities to equity not to exceed 2:1,
Current ratio not to be less than 1
Repayment: In monthly /quarterly installments
normally in 3 years, extendable upto 5 years in
deserving cases
Collateral:
Extension of charge over existing collateral
Obtention of additional collateral by way of
tangible security to be explored
Personal guarantees of proprietor/ partners /
promoters to be invariably obtained
CORPORATE LOAN
 Existing corporate and non-corporate customers
in C&I and SSI segments with SB10 rating.
 External Credit Rating (ECR) is mandatory for
exposures of Rs.10 crore and above and entities
with ECR of ‘D’ and below are not eligible.
 Non customers can also be offered this product
after ensuring the creditworthiness and Obtention
of opinion report from their bankers
 Purpose: Repayment of high cost debt, VRS
scheme, acquisition of trademarks, patents,
shoring up of net working capital, Long Term WC
requirement etc.
Where the loan is for shoring up of NWC, then the
loan amount should come down commensurate
with the building up of the NWC.
It should be ensured that the loan amount is not
diverted for purchase of land or shares for
speculative purposes.
 Type of Facility: Clean Term Loan
 Loan Amount: Minimum Rs.25lacs Maximum
Rs.10 Crores for non corporate(C&I – Mfg.) / SSI
borrowers No cap for corporate borrowers
 Repayment period up to 10years or the useful life
of the fixed assets under cover, whichever is
earlier. The repayment schedule may be flexible
(quarterly/half yearly). Uneven or bullet
installments may also be permitted based on the
cash flows .
 Fixed Asset Coverage Ratio (FACR) should be
minimum of 125%. To be calculated on WDV
method.
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
 Disbursement- Individual disbursements to be
permitted only by Branch head after ensuring end
use.
 First/Paripassu charge on fixed assets.
 Personal Guarantee of
promoters/partners/proprietor should be
obtained
 In the case of Corporate, pledge of promoters'
equity should be explored.
 A second corporate loan may also be considered
while the first loan is outstanding subject to all
the earlier loans and WC advances being regular
and the conduct of the accounts has been
regular.
 The number of Corporate Loans outstanding in
the name of a borrower at any point of time,
should not be more than three.
SME CREDIT PLUS
 A clean cash credit facility to meet unforeseen
expenses of Existing SSI Borrowers such as
meeting bulk orders, repairs to machinery, tax
payments, any other contingency etc).
 Can be extended to new borrowers also.
 Units should have CRA rating of
SB4(Old)/SB9(New) and above and or standard
assets for the past two years
 Loan Amount – 20% of aggregate working capital
limit (FB+NFB) subject to a maximum of Rs 25 lacs
 This facility can be used 12 times in a year
 There should be a gap of 15 days between the last
date of repayment of outstanding and the next
withdrawal
 Each amount of withdrawal should be repaid
within 2 months
 No DP is available to cover the outstanding
 No cheque book issued and no need of
maintaining 2 running accounts
 Limit renewed once in a year along with working
capital limits
STANDBY LINE OF CREDIT (WC)
 To meet genuine contingency needs arising out of
bunching of orders, delay in shipment / realisation
of receivables, sudden increase in raw material
costs, mismatch in cash flows
 All borrowers including non-Corporates under
CAG/MCG/SME segments with CRA rating of SB-
10 & above and above ECR of ‘D’ by the External
Credit Rating Agencies.
SBLC DEOGHAR
 External Credit Rating (ECR)is mandatory for total
exposure of Rs10 crore and above.
 Loan Amount: FB and NFB limits
15% of the working capital facilities (Fund Based +
Non-Fund Based) Maximum Rs. 20 cr. In case of
consortium advance, only our share of credit
limits is to be reckoned for the purpose.
May be made available as fund based and/or non
fund based limits subject to the overall exposure
being within the SLC limit.
Rate of Interest one percent higher than that
applicable to the Cash Credit Limit. (SLC availed as
non-fund based facility shall attract normal rates
of commission). No concession in additional
interest of 1% will be permitted.
Tenor - For a maximum period of 2 months at
any one instance. Where SLC remains
outstanding for more than the stipulated period,
it should be treated as irregular drawings and
reported accordingly. Gaps of less than 15 days to
be neglected for calculating the period during
which SLC has remained outstanding for such
reporting. There will be no restriction as to the
number of occasions SLC can be made available in
a calendar year.
SME OPEN TERM LOAN
 Separate Open Term Loan to Manufacturing and
services sectors merged into one.
Applicable to all manufacturing units and among
service sector for - Educational Institution,
Healthcare Industry (Hospital, Doctors,
Pathological Labs, and Nursing Home), Hospitality
Industry (Hotels, Restaurants, and Health Club
etc), and Transport Operators with minimum 25
vehicles.
 The loan can be considered for any genuine
commercial purposes in line with the regular
business activity of the customer. These would
include term loans for:
-Expansion and modernisation
-Substitution of high cost debts / high cost term
debts of other banks/FIs.
-Design and introduction of new lay-outs in the
factory to enhance productivity.
-Up gradation of technology & energy
conservation schemes/ machinery.
-Acquisition of software, hardware, consumable
tools, jigs, fixtures etc.
-Acquisitions of ISO & other similar certifications.
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
-Visits abroad for acquiring technology, finalizing
business deals, participating in exhibitions/ fairs
for market promotion etc
- R&D activities of the units in overall business
development objective.
- For any other genuine need.
 Eligibility: The product will be extended upto CRA
rating of SB – 6 or ECR of BBB and above.
Non customers shall not be eligible.
 Collateral: Additional collateral should be
obtained to maintain the collateral coverage (%)
at the existing level
 This is a unique facility, facilitating the customers
to negotiate for acquisition of assets, etc. with the
comfort of a pre-sanctioned term loan limit. There
is no need for routine references to the
Consultancy cells for TEV study for this
 Current Ratio & TOL/TNW should be at acceptable
level. Current Ratio should be not be less than
1.00
 DSCR should be at least 1.75
 Loan Amount – Max 250 lacs. For expansion,
modernization, technology up-gradation
purposes,maximum Rs 2.5 crore, for the purpose
of creation of tangible assets and maximum Rs 1
crore, for business development expenditure
incurred for creation of intangible assets
applicable to both manufacturing and service
sector units.
 Repayment period not to exceed three years. SA
may selectively consider repayment period upto
five years
 Sanction valid for 12 months from the date of
sanction. After that un-utilised portion lapses.
 Margin 10% uniformly
 Borrower free to avail facility at their
convenience. Disbursal by Branch on demand
from the borrower subject to scrutiny of certain
basic financial information and their validation in
line with projections assumed at the time of
sanction.
 Documentation to be obtained upfront for the
sanctioned TL. Purpose wise Sub-limit may be
drawn and loan account may be opened
accordingly each being treated as separate limits.
 At the end of 12th month, branch has to take
stock and cancel the unutilized portion of TL Limit
ELECTRONIC VENDOR FINANCING SCHEME
 Launched after renaming Express Vendor
Discounting Scheme
SBLC DEOGHAR
 Purpose: To finance receivables of Vendors of
Reputed Industry Majors (IMs)
 A dedicated Supply Chain Financing Unit (SCFU)
headed by DGM has been established at SMEBU
Corporate Centre, Mumbai
 SCFU (Marketing) is located at SMEBU, Corp
Centre, Mumbai
 SCFU (Operations) is located at Shivsagar Branch
Worli, Mumbai.
 CAG/MCG identifies new IMs and ties up with
them to finance their vendors
 Setting up over all exposure limit on IM, finalising
the terms and conditions with IM, obtaining
sanction for exposure to IM and communicating
sanction and forwarding the list of IM’s vendors
with requisite details to the SCFU (Marketing) will
be the responsibility of CAG/MCG.
 Marketing of the scheme and enrolling the
vendors will be the responsibility of NBG
branches, MCG branches and CAG branches
depending on the size of vendor.
 SCFU (Marketing) and Mid-Corporate Regional
Offices (MCROs) would also be involved in
marketing the scheme to vendors
 Branches/SMECCCs/SMECCs committees will
obtain sanction for credit limits to vendors from
the respective competent authorities.
 Accounts of the various vendors of IM will be
domiciled at branches proximate to them.
 The day to day transactions pertaining to e-VFS in
the vendors account as well as IMs account will
only be done by the SFCU (Operations) at SME
Shiv Sagar, Mumbai.
 The branches holding vendors and IMs accounts
will only have viewing rights for these accounts.
As such no branch needs to pass any accounting
entry under e-VFS scheme without prior
intimation to SCFU (operations) at SME Shivsagar
Branch, Mumbai.
 However, the Branch will be responsible for the
review/renewal/enhancement, control and
follow-up of the account, obtaining revival letter,
etc. and for enhancing the relationship.
 Although e-VFS facility is without recourse to IM,
the IM has assured payment of bill / invoice
discounted on due date by auto debit to their loan
accounts, the credit risk associated with this
scheme is very less. Hence the appraisal process
of assessing the limits to vendors has been
simplified. The limits to vendors can be
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
considered without insisting upon additional
collateral or third party guarantee etc. on merits
DROPLINE OVERDRAFT FACILITY FOR DEALERS
COVERED UNDER e-DFS & m-DFS
 Eligiblity : Dealers who availed of a limit of Rs.100
lakhs andabove under e-DFS & m-DFS.
 Purpose: For purposes other than covered under
e-DFS like spares, demo cars, consumables,
payment of salary / taxes, body shop claim from
Insurance companies, improvement in ambience
of showroom and other incidental expenses
related to dealership business. The list is only
illustrative not exhaustive.
 Type of Facility: Drop line Overdraft
 Loan Amount: 25% of the existing e-DFS/m-DFS
limit subject to a maximum of Rs.5 Cr
 Repayment: Maximum of 36 months.
 Collateral: For e-DFS accounts- Minimum 25% of
the loan amount. The collateral can be by way of
land & building property. Personal guarantee of
the promoters / Partners /Directors.
 For m-DFS accounts- No additional collateral is
necessary, provided the existing collateral for the
m-DFS account is150% or more, If the collateral is
less than 150%, additional collateral security to
that extent is to be provided.
COMMODITY BACKED WAREHOUSE RECEIPT
FINANCING
 Purpose: To finance traders/ owners of goods/
manufacturers for own processing against
warehouse receipts of warehouses managed by
MCX/NBHC, NCDEX(NSMSL) and CWC/SWC by
way of working capital demand loan.
 Eligibility: Any one dealing in Commodities. CC
facility only for limits of Rs 1 Crore & Above
 Limit for manufacturing units should be assessed
under Assessed Bank Finance (ABF) and
interchange of limit in between CC Hypothecation
& WCDL against Warehouse receipt may be
permitted. It should also be ensured that the
projected stock level within the ABF does not
exceed the quota of storage fixed by the
respective Central/State Government, if any, for
the unit under finance.
 Margin:Cash Credit: 30% of the value of the
warehouse receipt, valued at market price OR
25% of the MSP declared by State / Central
Government, whichever is higher
SBLC DEOGHAR
 The margin shall be topped up on a fortnightly
basis. However, it should be topped up
immediately in case the price of commodity
moves by more than 10%, in opposite direction,
since last top up.
 Security:Primary: Charge over warehouse receipt
with lien marked in favour of the Bank.
 Collateral: Personal guarantee of the partners/
directors as the case may be.
Repayment Demand Loan: The loan should be
liquidated as and when the produce is sold during
the interim period not exceeding 12 months.
Cash Credit: Repayable on demand. To be brought
to credit balance and DP made Nil/reduced when
the quality certificate expires.
POINT OF SALES LINKED OVERDRAFT
 Purpose Extension of Clean OD to POS terminal
holding establishments
 Target Customer : Merchant establishment
owning SBI POS, New merchants applying for SBI
POS
 Loan Amount 25% of aggregate average
monthly transaction volume on SBI POS machine.
Min: Rs.25000/- Max: Rs.5 lacs
 Margin Not applicable
 Assessment of Limit : Existing merchants
with SBI POS can be sanctioned limit
equal to 25% of average monthly transaction over
a period of last three months subject to a
minimum of Rs.25,000/- and maximum of Rs.5
lacs. New merchants will be sanctioned a limit of
Rs.25,000/- abinitio and subsequently the limit
can be enhanced as per the above criterion.
 Review/Renewal : Annual
 Exclusion This scheme shall not be extended to
merchants with SBI POS and enjoying Cash Credit
facility with us.
 REVISED GENERAL CREDIT CARD Scheme:
(e.cir.sl.no:959/2014-15 dt:12/11/2014)
 To enhance the coverage of General Credit Card
(GCC) scheme, the relative guidelines have been
revised by Reserve Bank of India so as to ensure
greater credit linkage for all productive activities
falling under the ambit of priority sector and to
capture all credit extended by banks to
“Individuals” for non-farm entrepreneurial
activity. Moreover, the Revised GCC scheme
would now cover “Individual” Entrepreneurs for
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
entrepreneurial activity in Metro and Urban areas
also.
 Target Group: Individual entrepreneurs involved
in productive activities covered under Priority
Sector guidelines
 Objective: The objective of the scheme is to
increase flow of credit to individuals for
entrepreneurial activity in the non-farm sector
 Eligibility:All non-farm entrepreneurial credit
extended to “Individuals”, which is eligible for
classification under Priority Sector guidelines.
 Nature of facility Working Capital as well as Term
Loan according to the requirement of
entrepreneur. GCC, preferably, will be issued as a
Smart Card / Debit Card viz. Biometric Smart Card
compatible for use in the ATMs / Hand held Swipe
Machines and capable of storing adequate
information on entrepreneur’s identity, assets
and credit profile etc. For the time being, a pass
book containing the name, address, photograph
of the holder, particulars of borrowing limit,
validity period etc. may be issued. The pass book
will serve both as an identity card as well as
facilitate recording of the transactions on an
ongoing basis.
 Quantum of Finance: Maximum Rs.5.00 lacs
(However, RBI has stipulated no ceiling on the
loan amount as long as the loan is for the purpose
of non-farm entrepreneurial activity and is
otherwise eligible for classification as priority
sector. To start with, we are proposing a ceiling of
Rs. 5.00 lacs). Applications for higher loan
amount may be processed under Bank’s other
Schematic Lending / Regular Schemes etc.
 Assessment of Limit:Assessment of loan is to be
done as per SME Credit Card Scheme as detailed
hereunder:
 For professional and self employed: 50% of gross
income shown in IT return.
 For SSI / Traders etc.: 20% of Projected Annual
Turnover (TIN No. / Service Tax Registration No. is
to be obtained and Sales Turnover should be
verified from the VAT and Service Tax returns,
wherever applicable)
 Margin 20%
 Renewal of Limit The working capital limit will be
valid for 3 years subject to annual review
 Rate of interest As per the extant instructions for
SME loans.
 Security Primary: Hypothecation of stock in trade,
receivables, machinery, office equipment etc.
SBLC DEOGHAR
 Collateral: As per extant instructions for SME
loans (For Manufacturing & Service Sector – No
collateral is to be obtained if otherwise eligible for
cover under CGTMSE)
 Insurance As per the extant instructions for SME
loans
 Processing fees Upto Rs.5.00 lacs – Nil
 Repayment Term Loan to be repaid in maximum
60 monthly installments
 Documentation As per SME documents
Follow up & Inspection As per the extant
instructions for SME loans
 NBG Branches are allowed to handle proposal for
limits of up to Rs 50crores (FB+NFB).
For limits of above Rs. 50 crores (FB+NFB),
proposals are allowed to be handled by local SME
intensive branches subject to approval of Group
Head i.e. MD (NB).
Where in a centre SME intensive branch is not
located, other branch may source proposal above
Rs. 50 crores and forward to nearest SME
Intensive branch/MCG branch for doing the
needful.
 Mid Corporate Branches
MCG Branches are allowed to handle proposal for
limit of above Rs. 50 crores and up to Rs. 500
crores (FB + NFB).
• At CAG center where they have presence MCG
branches shall not handle proposals for limit of
above Rs 500 crore (FB+NFB).
• At all other centers MCG branches will handle
the proposal for limit of above Rs. 500 crores
(FB+NFB) subject to approval of their Group Head.
CAG Branches
CAG branches are allowed to handle accounts
with limits of above Rs. 500 crores (FB+NFB).
Revised business rules will be applicable for new
proposals only. (e.cir: Sl. No. : 1310/2013 – 14
dt:03/03/2014)
 HUNTING LIMITS
With a view to ensuring that business
opportunities offered by Corporates rated “AA”
and better, preferably in top quartile of their
respective segment/ line of activity do not go
past us, a credit product structured on
preapproved lines or “Hunting Limits” have been
placed. The features of the product are detailed in
e.cir.406/2015-16 dt:04/07/2015)
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
 Soft Loan to Sugar Mills: (e.cir.sl.no.508/2015-16
dt:25/07/2015)With a view to assist Sugar
Companies / Mills to partially pay arrears of cane
dues payable to sugarcane farmers (for the
current Sugar Season 2014-15), banks would
provide, after due diligence, soft loan to Sugar
Companies / Mills equivalent to stock value of 25
lakh tonnes @ Rs. 24000/- per ton. Thus, the
maximum loan amount that can be advanced
under the Scheme, by all the banks, shall be up to
Rs.6,000 crores.
Eligibility: All those Sugar Companies / Mills
would be eligible for soft loan under the Scheme,
which have:
(i) at least undertaken sugar production in the
sugar seasons 2013-14 and 2014-15.
(ii) cleared at least 50% of the cane price payable
for the current Sugar Season 2014-15, calculated
on the basis of FRP, by 30.06.2015.(since
enhanced by 31.08.2015, e.cir.sl.no.675/2015-16
dt:26/08/15)
(iii) Sugar Companies / Mills shall furnish to the
bank(s), the following certificates:
 Certificate from the Central Excise
authorities concerned that the Company / Mill has
undertaken sugar production in the sugar seasons
2013-14 and 2014-15.
 Certificate from the respective Sugar /
Cane Commissioner indicating that the Company /
Mill has cleared at least 50% of the cane dues of
the current Sugar Season 2014-15, by 30.06.2015.
(since enhanced by 31.08.2015,
e.cir.sl.no.675/2015-16 dt:26/08/15)
(iv) NPA units are also covered under the Scheme,
provided the State Government concerned gives
its guarantee for the new loan.
Purpose of Loan: The loan is to be used for
payment of cane price arrears of farmers, for the
Sugar Season 2014-15, relating to the Fair and
Remunerative Price (FRP) of sugarcane fixed by
the Central Government for that sugar season.
Quantum of Loan: Company / Mill-wise quantum
of soft loan shall be determined by taking into
account 11% of their reported production of
white sugar in the Sugar Season 2013-14
computed @ Rs.24,000/- per M.T. (production
quantity for this purpose to be arrived at based on
certificate to this effect issued by the Central
Excise authorities concerned).
Tenure of the Loan: The soft loan duration would
be 12 months (during which period, moratorium
SBLC DEOGHAR
on principal repayment is allowed), at the end of
which it will have to be fully repaid. However,
further period of upto 3 Months may be allowed
for liquidating the soft loan at the request of the
Sugar Company / Mill, which should be clearly
documented / incorporated in the terms &
conditions of the sanction.
Security:
i. Since the proposed loan is in the nature of
short-term working capital loan, the sugar
company would be required to make available
sufficient free stocks of sugar (reckoned for
computation of loan amount), as primary security
exclusively for the soft loan.
For the sake of maintaining clarity on the stocks
charged to working capital lenders, the Company
/ Mill should indicate the stock of sugar provided
as security for the Soft Loan separately in the
Stock & Receivables Statement.
ii. Extension of 1st / 2nd (pari passu) charge on
other existing securities (including collaterals and
Fixed Assets of the unit).
iii. Personal guarantees of Promoters / Directors,
wherever available for the existing credit facilities,
should be extended to the proposed loan also.
The security for the loan should also include other
assets of promoters, which are free from
encumbrances.
iv. The loan may be disbursed, pending creation /
extension of charge on Fixed Assets / collateral
securities, in view of the urgency, but should be
completed within a maximum period of three (3)
months. A further relaxation of 3 months may be
extended by the competent authority of the Bank
on a case-to-case basis. However, creation of
charge on primary security as mentioned under
item No. (i) above is must before release of loan.
Interest Subvention:
i. Interest subvention up to 10% (on simple
interest basis) or at the actual rate charged,
whichever is lower, for a maximum period of one
year, will be available from the Department of
Food and Public Distribution.
ii. All loans which are sanctioned and disbursed by
30.09.2015, under this Scheme, would be covered
under the interest subvention scheme.
(e.cir:598/2015-16 dt:12/08/2015)
iii. Pre-payment during the moratorium period of
one year, commencing from 01.10.2015, will be
accepted by banks, and in such cases, the interest
subvention liability of Department of Food and
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
Public Distribution towards loan account would
accordingly get reduced.
Disbursement:
(i) Once the loan is sanctioned and necessary
formalities for disbursal are completed, the
branch will obtain from the respective sugar
Company / Mill the list of farmers along with bank
account details (borrowal account numbers of
farmers who have availed credit facility from the
banking system, and regular saving bank or
current account numbers in respect of farmers
who have not availed any credit facility) and the
extent of cane dues to be paid and shall directly
remit the funds allocated into the accounts of
farmers on behalf of the sugar Company / Mill.
Subsequent balance, if any, will then be
credited into the mill account. (since
amended vide, e.cir.sl.no.675/2015-16 dt:
26/08/15)
(ii)Branches should endeavour to link Aadhar
numbers with the bank accounts of farmers.
(iii) The loan amount available to a sugar
Company / Mill shall be apportioned on a pro-rata
basis in accordance with outstanding arrears of
the farmers whose dues are with the Company /
Mill.
Separate account should be opened for holding
the amounts, disbursed under the soft loan
scheme, till the same are credited to the accounts
of the farmer beneficiaries.
Repayment:
(i) The loan will be repayable within a maximum
period of 12 / 15 months (as decided mutually
between the bank(s) and the borrowing
sugar company / mill).
(ii) The difference between the interest charged
on the facility by the bank and interest subvention
received from the Government is to be serviced
by the borrowing company during the
moratorium period. Entire interest applied in the
account is to be serviced as per extant
instructions of the bank, after the moratorium
period of 12 months.
Other terms & conditions:
I.Margin for the soft loan would be Nil. However,
all the other existing / proposed credit facilities
will attract margin norms as per banks’
instructions / respective approvals.
ii. The lending will be subject to all relevant
banking norms applicable to sugar Industry as
mentioned under chapter 40 in Manual on Loans
SBLC DEOGHAR
and Advances (Part-4) including the restructuring
guidelines as notified by RBI for the sugar industry
from time to time.
iii. Loans sanctioned and disbursed by 30.09.2015
only would be eligible for interest subvention
facility.
iv. In case of Consortium / Multiple Banking
Arrangement, participating banks will sanction
loans under the scheme in the same proportion as
their share in the existing working capital limits
and remit the amount to the separate account to
be opened with the lead bank / lender. The lead
bank / lender will disburse the full amount of loan
to the borrowing unit and obtain the utilization
certificate on behalf of all the lenders.
v. In case Sugar Companies / Mills are availing
credit facilities under Consortium / MBA, our
terms of sanction / disbursement should not be
inferior to those stipulated by other banks.
vi. In the event of any surplus cash flow during
moratorium or repayment period with the
borrowers, accelerated repayments can be made
and the interest subvention liability of
Department of Food and Public Distribution
towards the Soft Loan would accordingly get
reduced
 SBI GATI Vaahan Commercial
Vehicle(e.cir.sl.no:702/2015-16 dt:02/09/2015)
Target group GATI associates / Business Partners
who are attached to GATI
Purpose: To finance purchase of new vehicles
(TATA ACE / MAHINDRA JEETO or any similar
vehicle) by GATI associates / Business partners
Quantum of Finance:Minimum: Need based
Maximum: Rs. 20 lacs
Facility type Term Loan
Margin: Ex-show room price – NIL
Body building – NILup to Rs. 35,000/-. If the cost
exceeds Rs. 35,000/- then the excess cost will be
borne by the borrower.
Registration / Tax / Insurance / AMC / Accessories
– 100%
Interest Rate:BR + 100 bps
(Present effective rate 10.30%)
Repayment Upto 48 months (including one
month of moratorium)
Upfront Fee Card Rates
Pre-Payment Fee NIL
Inspection charges: Card Rates
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
Primary Security: Hypothecation of the vehicles
financed in favour of the Bank.
Collateral:NIL as all the loans will be covered
under CGTMSE.Guarantee Fees to be borne by
the Bank.
Insurance:Comprehensive Insurance policy with
endorsement in favour of SBI on the policy as
“loss payee” from SBI General.
Other features:Loans up to Rs. 10 lacs will be
covered under MUDRA
Insurance premium will have special discounted
pricing on Own Damage (OD) premium for
erstwhile Tariff rate - 66% (i.e. 34% effectively)
for all the vehicles financed by State Bank of India
under this scheme.These vehicles will be
considered under GCV Private Career.
Incentive to dealer (1.50%) and incentive to DSE
(0.25%) will not be shared.
Comfort /Support from GATI:GATI will provide an
attachment letter confirming that the said
Associate / Business partner is attached to them
for the tenure of the loan, duly renewed on
mutual terms.
GATI will ensure payment in all the accounts till
the time Associate / Business partner is attached
to them.
Product Code 6221-7712 TL-SBI GATI VAAHAN
SME Advance: Credit Guarantee Fund Trust for
Micro and Small Enterprises (CGTMSE)
Revised Pricing Structure for Advances with
CGTMSE Guarantee Cover (e-cir 1098 dt
05/12/2016)
CGTMSE has restored the earlier uniform interest
rate cap of 4% over Base Rate, vide their Circular
No.100/2015-16 dt.16.11.15 (available in CGTMSE
website www.cgtmse.in, which has been advised
vide our Circular No.SME/AK/CIR-No.50/2015-16
dated 24.11.2015.
In view of the above, the Bank has now again
revised the interest rate structure for CGTMSE
covered accounts w.e.f 01.12.2015. The revision
involves charging of interest for loans up to Rs.50
lacs at BR+3% and for loans >Rs.50 lacs & up to
Rs.100 lacs at BR+4%, irrespective of CRA rating.
SME BUSINESS UNIT : NEW PRODUCT
SBI - PHILIPS INDIA LIMITED: MEDICAL
EQUIPMENT FINANCE SCHEME (e-cir 1084 dt
02/12/2015)
SBLC DEOGHAR
The Bank has entered into a tie-up with M/s
Philips India Ltd. for financing purchases of Philips
Medical Equipment (New or Factory refurbished)
and for ancillary equipment across the country.
The scheme is in two parts:
Part A: It covers Medical Equipment Finance up to
Rs. 50 lacs. Loan to be compulsorily covered
under CGTMSE.
Part B: It covers Medical Equipment Finance
above Rs. 50 lacs up to Rs. 7 Crore, with margin of
10% to 15% and collateral required from 0% to
25%, with option to the unit for paying fee and
taking cover under CGTMSE for loans upto Rs. 1
Crore.
PART A
SCHEME : SBI- Philips India Limited: Medical
Equipment Finance Scheme (Up to Rs. 50 lacs)
Target group : Nursing Homes, Hospitals, Day
Care Centres, Speciality Clinics, Diagnostics
Centres and Pathology Laboratories, Medical
Practitioners, Pharmaceutical Manufacture
Purpose : For Purchase of Philips Medical
Equipment (New Equipment or Factory
Refurbish)and Funding for ancillary equipment.
Eligibility : Individuals, Partnerships, Corporates,
Trust & Societies, ITR of Rs.5.00 Lac and above
from Professional Income/Consultancy in last:
1 years for Post Graduate or 2 years for Graduate
and other than Individual.
In case of Individual: Applicant should have
recognized qualification in any branch of medical
science like MBBS/BDS or any other equivalent
recognized degree in Allopathy with minimum 3
years of Post qualification experience or should be
a post graduate with minimum 1 years of
experience. Should be licensed by IMC as an
Allopathic medical practitioner. Post Graduate /
Diploma qualification is mandatory for specialised
equipment [E.g. DMRD or MD (Radiology) degree
for Equipment like CT SCAN, MRI SCAN, and PET
scan]. Should be registered with the necessary
statutory/regulatory authority.
For constituents other than individual: Minimum
2 years of operations of the diagnostic centre,
pathological lab, hospital, nursing home etc.
Should have the required approvals/registrations
from the statutory / regulatory authority. Should
have employed qualified doctors. Note: To be
eligible under this scheme, one has to get positive
response as per the “Entry Barriers”.
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016
Quantum of Finance : 90% of the Invoice value of
the equipment to be financed, subject to a
maximum of Rs 50 lacs. Further, Loan amount is
subject to the current surplus income which
should be sufficient to meet the proposed EMI
obligations- Based on following calculations.
• Net Monthly Income (NMI) = (Gross taxable
income as per ITR + add back depreciation if any +
Other tax free recurring income) / 12, This NMI
should be more than the proposed EMI
• Regular income from all sources can be
considered provided the sanctioning authority is
satisfied with the proof of income (e.g. ITR, Form
16, Salary slip of spouse, Bank statement,
registered lease deed for rental income etc.,) and
sustainability of income. Income of spouse may be
included for arriving at the loan eligibility, in
which case he/she will join as a co-borrower.
Facility : Term Loan
Margin : Minimum10% margin
Repayment : Term Loan:
Repayable EMI in 3 – 5 years (including maximum
moratorium period of maximum 3 months).
Interest Rate : Base Rate + 150 bps, 10 bps
concession can be given in case unit is ready to
install SBI POS machine.
Processing fee : 0.25% of loan amount –
maximum Rs 2,500
Pre-Payment Fee : In case of pre-payment
through internal accrual/ own fund – Nil, In other
Case- 1st Year – 2%, in 2nd Yr. – 1.5%, in 3rd Year
1 % and Thereafter Nil.
Primary Security : Hypothecation of assets
financed.
Collateral Security : No Collateral security up to
Rs. 50 Lacs. Loan to be compulsorily covered
under CGTMSE. Fees to be borne by the Bank.
Equipment Covered :
• CT SCAN (including Chiller, UPS and Injectors),
• MRI SCAN (including RF Cage, Chiller, UPS and
Injectors),
• Cathlab (including Injectors and UPS),
• Linear Accelerator, B&W Ultra Sound / Colour
Doppler/ Ultrasound Scanner, X-ray, Ventilator,
Monitor, and other ancillary equipment like
Operation Theatre Equipment, Air Conditioners,
Generators, Refrigerators, Computer and
Accessories, Software necessary for diagnostic
purpose and UPS systems.
SBLC DEOGHAR
• Ancillary Equipment associated with the
equipment and cost should not be more than 15%
of main equipment (for which financing is done).
CRA : CRA will be applicable for loan Rs. 25 Lacs
and above. However, Hurdle for CRA rating will
not be applicable as it is covered under CGTMSE.
(Loan and Policy review documents Credit
Management Para 7.7 Page No.38). Also pricing
will not be linked to CRA
ECR : Not applicable
RMD : RMD guidelines will not be applicable.
Sourcing Lead will be provided by Philips through
SMEBU, Corporate Centre. Circles may also source
locally
Inspection : Yearly Inspection. In case the account
becomes irregular, inspection should be done
monthly
MOU WITH TATA PROJECTS LTD.(TPL)
SOCIAL ENTREPRENEURSHIP FOR PROVIDING
SAFE DRINKING WATER TO THE COMMUNITY (e-
cir 1250 dt 08/01/2016)
The Bank has entered into a MoU with Tata
Projects Ltd on 04.12.2015 for providing loans as
per the MoU. Details of the scheme are as under :
Target group : Unemployed youth in the age
group of 18-40. or SHG's.
Purpose : Setting up Water Purification Plants to
promote social entrepreneurs and to provide safe
drinking water to the needy villages across the
country.
Eligibility : Projects by entrepreneurs/SHG's
identified by the Tata Projects after carrying out
the baseline assessment and project viability.
analysis.
Facility : Term Loan
Loan Amount : 3.80 Lakhs per Unit (max)
Margin : Rs.1.00 Lakh
Interest rate : Base Rate +70 bps (10.00%)
Repayment : Term Loan: Max. 3 years (excluding
moratorium period of 3 months).
Loan Processing Fee / Upfront Fee : Nil
Pre-Payment Fee : Nil
Primary Security: Hypothecation/ Mortgage of
assets financed.
Collateral Security : To be covered under
CGTMSE
The indicative funding arrangement of the project
will be as under:
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016

Contribution Source Cost & Percentage Thus, the portal will act as a facilitator to provide
Entrepreneur’s Rs.1.00 Lakh linkages in the financial services eco-system to
contribution (15% of the Project support both Ready and Trainee borrowers from
(Minimum)* Cost ) marginalized sections of society i.e. SC / ST and
Tata Projects Rs. 1.90 Lakhs Women entrepreneurs. The portal has a set of
contribution (50% of the Bank questions which will provide relevant information
funding) and feedback to the borrowers. Thereafter, the
Banks Funding (TL) Max. Rs.3.80Lakhs borrowers will be classified as Ready borrower or
(57% of the total Trainee borrower. The ready borrower can start
project cost) the process of application by registering on the
Total Project Cost 6.70 Lakhs portal while the trainee borrowers will be mapped
to the concerned LDM and the relevant linked
office of SIDBI / NABARD (will act as Stand Up
STAND UP INDIA (SUI) SCHEME Connect Centres-SUCC) for handholding in
different ways viz. Financial training, for skill
The Stand up India scheme was launched by the development, for margin money, for utility
Prime Minister on 05.04.2016. The scheme connections, for mentoring support, etc. Portal
endeavours to create an eco system for SC, ST and also has provisions for redressal of grievances of
women entrepreneurs, which facilitates and the borrower. Once the handholding
continues to provide a supportive environment requirements are adequately met to the
for doing business. satisfaction of the LDM and the Trainee borrower,
a loan application will be generated through the
The objective of Stand Up India scheme is to portal. Applications can be accepted off-line also.
facilitate sanction of bank loans between Rs. 10
lakhs and Rs. 1 crore to atleast one Scheduled The Lead District Manager (LDM) shall be the
Caste (SC) or Scheduled Tribe (ST) borrower and nodal point of a network of Stand up India
at least one women borrower per Bank branch Connect Centres and will monitor the
for setting up a Greenfield enterprise in FY 2016- performance (process and work) alongwith local
17. The enterprise may be in manufacturing, offices of SIDBI / NABARD. They will also work
services or the trading sector. In case of non- with other stakeholders such as Dalit Indian
individual enterprises atleast 51% of the Chambers of Commerce and Industry (DICCI),
shareholding and controlling stake should be held Women’s Entrepreneurs Associations, etc.
by either SC / ST or Women entrepreneur.
The Bank’s guidelines of the Stand Up India
The scheme, which covers all branches of scheme
Scheduled Commercial Banks, can be accessed in
three potential ways: Target Group : SC / ST and Women
 Directly at the branch entrepreneurs.
 Through SIDBI’s interactive Stand up India Purpose : To meet all kinds of credit requirement
portal called www.standupmitra.in for setting up Greenfield projects under
(accessible at home / branch / through LDM manufacturing, services or the trading sector.
/ Common Service Centres (CSCs)). Login id’s Type of facilities : Composite Loan (Working
and passwords will be provided separately to Capital facilities / Term Loan ).
access the portal. Quantum ofFinance : Minimum – More than Rs.
 Through the Lead District Manager (LDM) 10 lakhs, Maximum – Rs. 1 crore
Repayment : for Term Loans Maximum of 7 years
The interactive portal has 3 important features (including moratorium period upto 18 months),
viz. Margin Minimum mandatory margin is 10%.
i) Handholding support Max. Margin money on composite loan would be
ii) Loan from Banks upto 25% which will be reduced through
iii) Guarantee support for Collateral free loans convergence with Central / State schemes.
SBLC DEOGHAR
 Quick Success Series – SME Asset Products
Updated upto 31st October 2016

RuPay Card RuPay Card to be issued for Cash

Credit component.
Credit Guarantee/Collateral: A new scheme for
Credit Guarantee for loans under SUI has been
notified by GOI with NCGTC (National Credit
Guarantee Trustee Company Ltd.) on the lines of
CGTMSE. Details will be advised
subsequently.
Inspection CC Limits / Term Loans – Quarterly
However, if the account becomes irregular,
inspection to be done on monthly basis.

SBLC DEOGHAR
 [Type the document title]
June 4, 2010

QUICK SUCCESS SERIES an initiative of SBLC

Deoghar to facilitate the preparation of

Quick promotion seeking personnel of our Bank,

appears to have succeeded in its objective to a
large extent as the readers are still approaching
Success us for its revision/updation despite availability
of plenty of other study materials.
Series We would not have been able to sustain this
unique effort of ours, without the active
support and continuous encouragement of our
DGM cum Circle Development officer Sri
Bijayananda Padhi. We are deeply indebted to
him for his co-operation and guidance.

Sri Rakesh Roshan, Chief Manager (Training), &

Sri Kumar Priyank, Chief Manager (Training),Sri
Sanjay Kumar Sharma, Manager(Training) Sri
Jitendra Kumar Arun, Manager(Training) at this
SBLC have owned up this project and have
taken pains to keep it relevant to the users by
updating & improving it at half yearly interval.

Though every care has been taken while

updating the contents, we request our readers
to point out any lapses at the earliest. Needless
to mention that this book is not a substitute of

Accounting System & circular instructions issued by the Bank from

time to time. For detailed guidelines please
refer to Bank’s latest circulars. Soft copy of this
General Instructions edition is available on our ftp://10.151.51.33 in
QSS folder and on SBI TIMES>PATNA
CIRCLE>SBLC Deoghar site.

Team SBLC Deoghar is humbled by the

response and recognition, it is receiving from
readers within and beyond the circle. Our Team
wishes the readers grand success in their
UPDATED UP TO 31 st October, 2016) endeavours.

Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Updated By:
Phone- 06432-232895
Kumar Priyank
Fax - 06432-231810
Chief Manager Training, SBLC Deoghar
E-mail: agmstc.deoghar@sbi.co.in
Mobile- 7321805713
e-Mail- k.priyank@sbi.co.in

Page 1
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
MARGINAL COST OF FUNDS BASED LENDING
RATE (MCLR) : INTRODUCTION OF NEW LENDING
RATE SYSTEM (e-cir 1487 dt 05/03/2016)
As per RBI notification, all rupee loans sanctioned
and credit limits renewed w.e.f. April 1, 2016 will
be priced with reference to the Marginal Cost of
Funds based Lending Rate (MCLR) which will be
the internal benchmark for such purposes. Actual
lending rates will be determined by adding the
components of spread to the MCLR. Accordingly,
there will be no lending below the MCLR of a
particular maturity for all loans linked to that
benchmark. The actual rates, pertaining to
different maturities under this dispensation will
be advised separately.
Following categories of loans are exempted from
being linked to MCLR as the benchmark for
determining interest rate:
i. Loans covered by schemes specially formulated
by Government of India where under banks are
required to charge interest rates as per the
scheme.
ii. Working Capital Term Loan (WCTL), Funded
Interest Term Loan (FITL), etc. granted as part of
rectification/restructuring packages.
iii. Loans granted under various refinance
schemes formulated by Government of India or
any Government Undertakings wherein banks
charge interest at the rates prescribed under the
schemes to the extent refinance is available.
However, interest rate charged on the part not
covered under refinance should adhere to the
MCLR guidelines.
iv. The following categories of loans can be priced
without being linked to MCLR as the benchmark
for determining interest rate:
(a) Advances to banks’ depositors against their
own deposits.
(b) Advances to banks’ own employees including
retired employees.
(c) Advances granted to the Chief Executive
Officer / Whole Time Directors.
(d) Loans linked to a market determined external
benchmark.
Page 2
(e) Fixed rate loans granted by banks. However, in
case of hybrid loans where the interest rates are
partly fixed and partly floating, interest rate on
the floating portion should adhere to the MCLR
guidelines.
2. Fixed rate loan means a loan on which the
interest rate is fixed for the entire tenor of the
loan and Floating rate loans means a loan on
which interest rate does not remain fixed during
the tenor of the loan.
3. Base rate linked loans (other than those
exempted above), cannot be opened on and after
01.04.2016. Therefore, for all recent/current
sanctions and even those likely to be considered
and approved before 31.03.2016, the branches/
Operating Units should open loan accounts in CBS,
with Base Rate linked pricing, before 31.03.2016.
MRFTP
 Market Related Fund Transfer Price
Mechanism (MRFTP) is applicable to
Branches only.
 IT is an internal measurement designed to
assess the financial impact of uses and sources of
funds and can be used to evaluate the
profitability.
 It is a scientific internal funds transfer
price mechanism evolved to supplement Asset
Liability management.
 Under this system different weightages
are attached to the normal interest rates of
deposits and advances.
 It is a system under which the market is
scanned on a daily basis to arrive at TP Bid rates &
TP Offer rate.
 TP Bid rate means Central Office Interest
Receivable on Deposits.
 TP offer rate means Central Office
Interest Payable on advances.
 For detailed pricing, e-cir dt 11/06/2014
and e-cir dt. 20/08/2015 to be referred.
USROMD A/c
 Returnable Deposits made with public
utilities or advances made in respect of houses
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
taken under bank lease are paid by debit to
USROMD A/C (Utility Services, Rental & Other
Miscellaneous Deposits A/C)
Rationale: To ensure effective control over
these long term deposits so that these may be
recovered when the occasion arises
 Telex Deposit/OYT Deposit for telephones
are debited to Charges A/C (Telephone/Telex)
Rationale: These are allowed as revenue
expenses by the IT Department
Office Account
 Debits in Income A/cs should be
authorised by Branch Head
 Debits in Sundry Deposits should be
authorised by Branch Head
 Both Debit & Credit in Suspense A/c
should be authorised by Branch Head
 Items which cannot be classified
immediately and debited to their respective
accounts are placed in SUSPENSE A/C
 Period by which entries relating to
Advances availed towards TA Bills are to be
reversed : 30 days from the date of
completion of journey
 Rate of interest to be charged , if the T.A.
bill is not submitted by the staff within 30
days after returning from the journey : As
applicable to clean OD from the date of
Advance
 Within how many days of payment of
bonus the bonus statement is to be
submitted?
3 days from the date of payment
 The Amount of credit which cannot be
appropriated to a particular account is
credited to Sundry Deposit Account
 Reversal of entry Pertaining to Excess
Found in cash can be authorized by
Branch Manager or Controlling Authority as
per discretionary powers
 Recoveries made from officials for
providing residential accommodation is
credited to Charges Account (Other Rent)
 Bankers Cheques (Prepared by debiting
charges Account only) outstanding for more
than 3 years are credited to Charges Account
(Sundries)
Page 3
 Every Year Expenses on account of
Training of all the branch staff is transferred
to LHO on 28th/29th Feb
 Recoveries made on account of written
off accounts are credited to
Charges Account (Recovery from written off
Account)
 Periodicity of balancing of Stamp is
monthly.
 Yearly entry relating to staff welfare fund
is passed on 28th/29th Feb
Records
 Sale proceeds of old records is credited to
Charges Account (Sundries)
 Periodicity for Inspection of Record Room
by B.M/Acct./MOD should be Monthly
 Retention Period for Power of Attorney
Register :60 years
 Income Tax Deduction register is to be
preserved for at least 10 years
 Preservation of Records come under the
Provisions of Banking Regulation Act, Right to
information Act & Prevention of Money
Laundering Act
 Record Register, Letter of Indemnity and
General Ledger are to be preserved
Permanently
 Every year obsolete records have to be
identified on 1st January
 They should be destroyed on 7th Feb
Stationery
 Every year Valuation of Stationery is to be
done on 31st January
 Value of Stationery consumed during the
year is credited to Stationery Account
 Balance in the Stationery A/c of the
Branch represents Cost of high value
stationery held at the branch
Fixed Assets
 Subsidiary head of charges to which we
debit the purchases made below Rs.1000/- in
fixed assets account Charges Account
(Sundries)
 Account to be debited for expenditure for
improvement of land owned by Bank
Premises account (land) at LHO
 Initial amount of Rs. 10,000/- spent by the
branch to have wooden partitions of rented
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
premises will be debited to which Account :
Fixed Assets Account (Furniture & Fixtures)
 Depreciation for Furniture and Fixtures
credited to which Account :
Fixed Assets a/c (Furniture and Fixtures)
 Cost of furniture item (teapoy) amounting
to Rs.850/- is debited to
Fixed Assets Account (Furniture and Fixtures)
 When an asset is purchased and put to
use for less than 180 days in a financial year ,
what is the rate of depreciation to be applied
50% of original applicable depreciation rate
 The cost of a trunk box for an amount of
Rs.700/- for using cash remittances is debited
to Exchange Account
 Depreciation rate and method we adopt
for calculating depreciation on computers for
the purpose of Profit and Loss Account :
33.33% p.a. on the original book value
straight line method. (We have to ensure
that, the book value of the computer will
become NIL at the end of the 3rd year from
the year in which the computer is purchased).
 Depreciation rate and method we adopt
for calculating depreciation on computers for
the purpose of Income Tax Liability : 60% p.a.
on the book value - written down value
method
 Depreciation rate on Computer Software
not forming integral part of hardware : 100%
(M.S. Office tools e.g. Word, Excel, Power
Point etc.)
 Depreciation rate on Computer Software
forming integral part of hardware :60% on
book value – Written down value method
 Cost of all types of electrical fans, is
classified under which head of Fixed Assets?
Fixed Assets – Furniture & Fixtures
 Cost of electrical installations, incurred
initially is classified under which head of Fixed
Assets?
Fixed Assets – Furniture & Fixtures
 Air Conditioners, Air coolers,
Refrigerators, Water Filters at Bank’s Premises
are classified under which head of Fixed
Assets?
Fixed Assets – Plant and Machinery
 Depreciation to be Charged on Fixed
Assets (Furniture & Fixtures) & Fixed Assets
(P& M) respectively
Page 4
 10% WDV, 15% WDV
Monitoring of Large Value Cash Payments
 Limit for monitoring Large Value Cash
Payments at Metropolitan Branches Rs 5.00
Lakh & Above
 Limit for monitoring Large Value Cash
Payments at Branches of other centre Rs 1.00
Lakh & Above
Double Passing
 Cheques / Instruments etc in respect of
Govt/Non Govt Transactions to be passed by
two officials with full passing powers for
amount of Rs 10 lakh & above
Accounting Units of Bank
 There are two Central Office Accounting
Units in our Bank
At Kolkata (COAU 1) &
At Mumbai (COAU 2)
Inter Branch Transfer System
 Inter Office Transactions in general are
routed through
Branch Clearing General Account
INTER BRANCH TRANSFER SYSTEM (IBTS)
 Monitoring / Reconciliation of BCGA IBTS
is done by - IOA Mumbai
 IBTS System has been Implemented wef
15th March, 2011. On pilot basis from
Bangalore Circle.
 What kind of Transaction allowed initially
: office/ Non Customer account. The non
home branch 'customer' transactions shall
continue through Core Power functionality.
 Branch Clearing General Account
originating entries shall be blocked in CBS and
no BCGA originating entries (Schedule1,3 &7)
shall be allowed to be raised by any branch.
Only responding entries in BCGA.(Schedule 2,
4 & 8) shall be permitted for entries
originated prior to the date of introduction of
IBTS. Further, reversal entries (Schedule
5,6,9&10), for rectifying erroneous
originating/ responding entries pertaining to
BCGA System shall be permitted.
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
 Names of BGL accounts for routing Inter
Branch Transaction- Inter Branch Transfer
Credit Account (NDTL) 2399775bbbbbc &
Inter Branch Transfer Debit Account (NDTL).
2399776bbbbbc
 Names of BGL accounts for Automatic
posting of Reversal entries - Inter Branch
Transfer - Sundry Deposit Account
2399777bbbbbc & Inter Branch Transfer -
Suspense Account 2399778bbbbbc
 SC/DDP transactions shall be routed
through the revised SC/DDP automation
process
 Entries originated through IBT accounts
shall not hit the BGL of the Non Home
Branch directly but shall be parked in one of
the new BGL Accounts (i-a,b) of the
Originating Branch
 Originating branch shall initiate such
transactions by debit/credit to its own Inter
Branch Transfer Account and debit/credit its
customer/BGL A/c as the case may be.
 All such entries shall be reflected in the
accounts of the Originating Branch till they
are accepted (responded to by the
Responding branch).
 The entry and reversal shall be responded
by a user/maker of minimum capability of 3
and approved by a checker of minimum
capability of 5 and above.
o Entry originated may be corrected only on
same day. From the next day of the entry
originated no transaction can be reversed
by the Originating Branch without the entry
being declined by the Responding Branch.
Further, no transaction can be amended by
the Responding Branch in the CBS system.
 Once the Responding Branch declines the
transaction only Originating Branch can
reverse the transaction in case of a wrong
originating entry and re-originate the
entries afresh, wherever required.
o Double signature on TR above Rs.50000/=
and affixing of check signal discountinued.
Single signature irrespective of any limit.
 All IOA memos should be disposed of within
weeks
 Provision against the net debit balance in
inter branch account should be made for
outstanding beyond Six Month
Page 5
Agency Clearing General Account
 Transactions with Associate Banks are put
through
Agency Clearing General A/c
 Drafts issued by Associate Banks are paid
by debit to
Agency Clearing Drafts Paid Account
Irrespective of the instrument issued by
Associate Bank on SBI, whether an
IOI/DD, the payment should be made
through the online/batch options
available for ‘draft payment’.
 Only Originating credits and No
Originating debits should be raised in
Agency Clearing General A/c
 A/c to be credited when IOIs are issued on
an Associate Bank
Agency Clearing General A/c
 EFT between SBI & Associate Banks are
put through
SBGRPT System
 Reversing entries are passed through
Agency Clearing General A/c in case
i)an entry pertaining to some other
system is treated as Agency Clearing Entry
in first instance and mistake is rectified
later on
ii) the originated entry is cancelled at the
request of applicant (Ex-IOI paid by
cancellation)
iii) transfer of Balances of Agency Clearing
Department through respective LHO
ISSUE OF DUPLICATE IOI (DRAFTS)-
Production of sureties may not be insisted upon
while obtaining indemnity for issuance of a
duplicate IOI (Draft) where the amount of IOI
(Draft) is up to Rs.1,00,000/- if the applicant
(purchaser) of a IOI (Draft) is considered good for
the amount involved. Earlier this limit was
Rs.50000/=.
INTER OFFICE INSTRUMENT (IOI) : ISSUE OF
DUPLICATE IOI-DRAFTS-DISCONTINUANCE OF
NON PAYMENT ADVICE
In this connection, we advise that it has been
decided by the appropriate authority to dispense
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
with the requirement of receipt of “Non-payment
advice” from the drawee branch at the time of
issuing a duplicate IOI (draft), as the payment
status of an IOI (Draft) i.e., whether already paid
or outstanding, can be viewed in CBS by the
issuing branch.
Branch Documents
 Power of Attorneys are entered in Power
of Attorney Register
 LIC Policy given as security for Overdrafts
are entered in Miscellaneous Security Register
 TDRs given as security for DL/OD are
entered in Deposit Receipt Joint Custody Register
 Death Certificates, Succession Certificates,
Letters of Administration, Probates, Court orders
appointing receivers for Property are entered in
Sundry Documents Register
 Check signals, cypher code, etc are
entered in Branch Document Register
 Licenses, Retention Limits, Insurance, Title
Deed related to Bank’s Property, lease,
agreement, etc are entered in Branch Document
Register
 Indemnity Bonds are entered in Branch
Document Register
 Branch Document Register has seven
sections.
 When the unused cheque leaves are not
surrendered, the details should be entered in Lost
Document Register.
Rationalisation of Registers maintained at
Branches / CPCs (e-cir 1325 dt 30/01/16)
 72 registers shall be compulsorily
maintained for the purpose of Auditby Branches
(both BPR & non-BPR)/ CPCs, as applicable.
 121 registers shall be maintained by
Branches/CPCs as applicable, as per there
requirements/usage i.e. these registers will be
used as per operational requirement of
branches/CPCs.
Protective Arrangement
 License for Gun at the Branch is obtained
in the name of Branch Manager
 Bank Guard’s name is entered in Gun
License as Retainer
Page 6
 Details of Cartridges are available in Gun
History Book
 In case of sudden incapacitation of Branch
Manager emergency arrangements are reviewed
at Yearly interval
 Disaster Recovery Plan (DRP) and Business
Continuity Plan (BCP) is prepared in the first week
of January every year and is approved by the
controlling authority. January
 DRP & BCP are kept as Branch Document
register.
TDS Provisions : FY 2016-17 ( e-cir 302 DT
03/06/2016)
Salary (Sec 192)
Income Tax (%)
Upto 2,50,000/- Nil
Rs 2,50,001-Rs 5,00,000 10%
Rs 5,00,001-Rs10,00,000 20%
Rs 10,00,001 and above 30%
Education cess (inc higher education cess)
3%
For Resident Woman- No difference with general
rate.
For Senior Citizens (persons of age 60 years or
more but below 80 years) : No Tax upto Rs
3,00,000/-, after that normal rates.
For Senior Citizens (persons of age 80 years and
above) : No Tax upto Rs 5,00,000/-, after that
normal rates.
Surcharge of 15% of such income tax, in case of a
person having a total income exceeding One crore
rupees.
TAX BENEFIT ON ADDITIONAL INVESTMENT OF
RS.50,000/-UNDER NPS (e-cir 1572 dt
28/03/2016)
In the Finance Act, 2015, an additional tax benefit
has been made available whereby any NPS
subscriber can get additional tax deduction on
investment upto Rs.50,000/- under a new Section
80 CCD (1B) of Income Tax Act. This is an exclusive
tax benefit available only for contribution under
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
National Pension System (NPS). This additional
tax deduction on investment upto Rs.50,000/-
provides an opportunity not only to those
employees who are mandatorily covered under
NPS but also to all citizens of India including
employees who are covered under old defined
benefit Pension Scheme/ Provident Fund/
Superannuation Fund, to avail of this tax benefit
by opening an NPS account on an individual basis
and by investing upto Rs.50,000/- per annum.
Major payments made by Bank where TDS is
applicable:-
Following payments made by the Bank are
subjected to Tax Deduction at Source (TDS) under
the stipulated sections of Income Tax Act
mentioned there against:-
i. Interest on securities [Section 193];
ii.Interest other than Interest on securities
[Section 194A];
iii.Payment/ Credit to Contractors/sub-
Contractors [Section 194C];
iv.Commission, brokerage etc.[Section 194 H];
v. Rent [Section 194 I];
vi. Fees for professional or technical services or
royalty [Section 194J];
vii. Transfer of immovable property [Section
194IA];
viii. Interest [other than NRE/FCNR Ac] & any
other payments made to nonresidents,
which are taxable under Income Tax Act [Section
195];
ix. Any other payments liable for TDS.
Interest on Securities (Sec 193 )
Interest on 8% Savings(Taxable) Bonds, 2003
exceeding Rs 10,000/- : 10%
Interest other than Interest on securities (Sec
194A)
Interest on Term Deposits [including RD] xceeding
Rs.10,000/- per person for Bank as a whole in a
financial year- : 10%
Payment to Contractors (194 C)
Page 7
Where a single contract payment exceeds
Rs.30,000/- or in cases where the aggregate amt
of such payments credited or paid or likely to be
credited or paid during the financial year
(including advances if any) exceeds Rs.1,00,000/-.
TDS is required to be made on payment or credit
to :
a) Individual/ HUF – 1%
b) Other than Individual/ HUF – 2%
* In case, Payee - transporter submits a
declaration in prescribed form alongwith PAN
stating that he is covered under section 44AE and
no tax is required to be deducted.
Commission or Brokerage (Sec 194 H)
When such commission or brokerage exceeds Rs
15,000/- in a FY- : 5%
Rent (Sec 194 I)
When rent in a financial year exceeds Rs 1,
80,000/- (including advances if any)
a) Rent of Machinery, Plant & Equipment – : 2%
b) Rent of others viz. land, building, furniture
and fittings etc. – : 10%
Transfer of immovable property (Sec 194-IA)
When consideration on acquisition of immovable
property from a resident transferor ((other than
rural agricultureal land) equal to or more than Rs.
50,00,000/-)-: 1%
Fees for Professional or Technical Services or
royalty (Sec 194 J)
When such fees in a financial year exceeds
Rs.30,000/- :10%
Importance of Permanent Account Number
(PAN):- Under Section 206AA of the Income Tax
Act, the rate of TDS is higher of 20% or the
applicable rate in all cases where valid PAN is not
quoted by the recipient [except on payment of
interest under section 194LC or to non-residents
not being a company or foreign company,
subject to prescribed conditions (as may be
notified by Income Tax department)]. Further,
the declaration filed in 15G and 15H is not valid
 Quick Success Series- Accounting System & General Instructions
October 31, 2016

unless the person filing the declaration furnishes

his valid PAN in such declaration. Therefore,
branches should make extra efforts in persuading
the customers to provide their PAN.
Due Date of Deposit of TDS (e-cir 1640dt
02/05/2016)
The due date of deposit of TDS is on or before 7
days from the end of the month.
In this regard, it is to be noted that a customer
would need to provide the details of all of his/her
time deposits with all branches in Form 15G/H.
The updated details of all time deposits should be
obtained each time in the relevant form, on any
of the following events:-
a. change of financial year;
b. transfer of time deposits from one branch to
another;
c. at the time of making a new time deposit.

Due Date for filing TDS statement : (24Q-Salary, DUEDATE FOR ISSUANCE OF FORM 16 (TDS on
26Q-Non Salary and 27Q-NRI) Salary) AND 16A (TDS other than Salary):

Quarter ending date Due date for filing Ret. Period (Form 16) Due Date
30th June 31st July Year ended 31st March 31st May
30th Sep 31st October
31st Dec 31st January Period (Form 16A) Due Date
31st Mar 31st May Quarter ended 30th June 15th Aug
Quarter ended 30th Sep th
15 Nov
Challan cum statement for deduction made u/s Quarter ended 31st Dec 15th Feb
194-IA on transfer of immovable property (26QB)- Quarter ended 31st March 15th June
PERIOD Monthly- 30 days from end of the month.

Form 15G/15H:- Under Section 197A of the DUE DATE FOR QUARTERLY UPLOADING OF
Income Tax Act:- FORM 15G/H DECLARATIONS (e-cir 344 dt
14/06/2016)
i. Person who is resident in India and of less than
60 years of age can request the Bank not to Date of ending Due date
deduct tax at source on interest paid/payable on of the quarter
time deposits and Rent payable, by furnishing a
declaration in Form 15G to the effect that the tax 30th June 15th July of the FY
on their estimated total income of the relevant 30th Sep 15th Oct of the FY
financial year will be Nil. However, the declaration 31st Dec 15th Jan of the FY
in Form 15G is not applicable if the amount of 31st March 30th April of the FY immediately
the income (individually or in aggregate) credited following the FY in which
or paid or likely to be credited or paid during the declaration is made
concerned financial year in which such income is
to be included exceeds the maximum amount  One consolidated Annual Information
which is not chargeable to tax (Rs. 2,50,000/- for Return(AIR-data in respect of savings accounts
F.Y. 2016-17). with cash deposits of Rs 10 lakhs or more in a
financial year) is required to be filed by the Bank
ii. Resident senior citizen person can furnish incorporating information from all its branches
similar undertaking in Form 15H (certifying that
tax on his estimated total income would be NIL)  SERVICE TAX PROVISIONS
irrespective of the interest amount and rent
amount paid or credited or likely to be paid or Revision of Service Tax wef. 01/06/2016 : (e-cir
credited during the financial year. 131 dt 28/04/2016)

Page 8
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
Applicable Rate of Service Tax
The Government of India has imposed Krishi
Kalyan Cess of 0.5 % on the value of all taxable
services w.e.f. 01.06.2016, as a result of which the
rate of Service Tax (ST) will stand increased from
14.50 % to 15.00 % (including Krishi Kalyan Cess,
(Service Tax 14.00 % + Swachh Bharat Cess 0.5% +
Krishi Kalyan Cess 0.5%)) w.e.f. 01.06.2016.
Accordingly, branches are advised to recover
service charges along with Service Tax @ 15.00 %
with effect from 01.06.2016.
 Cenvat Credit Rules
a) Time limit for availing of CenVAT credit on input
services has been Increased from six months to
one year. Operating Units have to ensure that
payment is made within one year from the date of
invoice; otherwise CenVAT credit is not claimable
on such payments.
b) The Bank is liable to pay interest/penalty on the
reversal of CenVAT in the subsequent months on
account of wrong capture of CenVAT in earlier
months
Centralisation of Service Tax
 Bank has obtained a Centralised Service
Tax Registration Number – AAACS8577KSDB73
 Now, Service tax liability for the Bank as a
whole wef 1st Oct 2010 would be discharged at
Corporate Level itself
 Accordingly, no branch/office/unit is
required to discharge its service tax liability arising
on or after 1st October 2010
SERVICE TAX ON COMMISSION PAID TO
RECOVERY AGENTS/ RESOLUTION GENTS
 As per the Service Tax Rules effective
from 11th July, 2014, commission paid to the
Recovery agents is liable to Service Tax under
Reverse Charge Mechanism. Accordingly, the
Bank is liable to pay Service Tax to Government
for the recovery charges paid to such agents.
Since the commission/remuneration paid to
resolution / recovery agent are inclusive of service
tax, such payments should be made by debit to
charges only after reducing service tax payable.
Page 9
 A New BGL No. “3199993” named
“CHARGES-COMM PAID TO RECOVERY AGENT”
has been opened and the operating units are
required to select the nature of service as “14.
BC/BF/ Recovery agent/ other Banks/
NOSTRO/CIBIL” and sub nature of service “BC/BF
– recovery commission/ incentive” or
“Commissions paid to Recovery Agent” and BGL
No. “3199993” while making the payment of such
agents in the Vendor Payment system (VPS).
CTS CHEQUE CLEARING
 CCPCs are raising IBTS entries for payment
of Govt Cheques on branches for net amount of
government cheques paid, allocation of
settlement amount to different CCPCs by Grid HQ
CCPC, etc. The branches/ other CCPCs are advised
to attend to IBTS entries, originated by CCPCs,
relating to CTS promptly.
 All the IBTS entries (either debit or credit)
will be originated by those CCPCs who are
attending to inward clearing. Linked Branches are
not allowed to originate entry (particularly for
return of cheques), unless specifically allowed by
competent authority, as CCPC is responsible for
reconciliation of CTS clearing transactions.
SUNDRY DEPOSIT (MISCELLANEOUS)-BGL-98749:
CHANGE OF NAME
 Two of the Sundry Deposit Accounts viz.
BGL-98749 Sundry Deposit (Miscellaneous) and
98751-Sundry Deposit (Others) are similar in
nature. To have proper classification of entries
parked in Sundry Deposit accounts, name of BGL
Account - 98749 has been changed from SD-
MISCELLANEOUS -to- SD-DISPUTED OR COURT
CASES. Entries pertaining to pending court cases
and disputed amounts only should be parked in
BGL-98749 and other miscellaneous entries
should be parked in BGL-98751(Sundry Deposit-
Others).
ANALYSIS OF OTHER MISC INCOME
COMMISSION ON EPFO/ESIC TRANSACTIONS
A New BGL account has been opened as under to
enable Branches to credit the commission earned
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
on EPFO, ESIC and CMPFO transactions: BGL A/C
No 4599137BBBBBC
REVISION IN RATE OF INTEREST RATES FOR
SMALL SAVINGS SCHEMES : RATE OF INTEREST
WEF. 01.10.2016 TO 31.12.2016
Scheme Rate of Interest
5 Year SCSS, 2004 8.5% p.a
5 Year Monthly Income 7.7% p.a
Account Scheme
5 Year NSC 8.0% p.a
PPF, 1968 8.0% p.a.
Kishan Vikas Patra 7.7% p.a.
Sukanya Samriddhi 8.5% p.a.
Account Scheme
Miscellaneous
 Account Keeping Charges from all “Per”
segment customers, excluding staff members,
maintaining Current Accounts at the rate of
Rs.550/- plus service tax applicable thereon per
annum. Charges will be deducted automatically
by system.
 Restriction of maximum deposits in staff
account has been removed.
 Water droplet test needs to be conducted
for instruments of Rs 25000/-.
 Cheques for Rs 50000/- and above,
deposited at the branch/drop box need to be
scrutinized at the branch under Ultra Violet (UV)
Lamp to verify that the cheques are not fake/
fabricated/ altered, as the responsibility to ensure
the genuineness of cheques is now shifted to
presenting bank in CTS environment. A stamp
confirming such verification “UV Lamp verified”
should be affixed on back of the cheque and
record of such verification may be kept at the
branch for verification at a later date.
 Tele-calling of customers has to be made
on the registered phone number of customers for
cheques amounting to Rs 1.00 lacs and above and
record of such calls will be maintained. Before
calling a customer a suitable SMS regarding
Page
10
calling, need to be sent to customer to ensure
that the call is accepted.
Transaction in relation to which PAN is to be
quoted or Form 60 is to be submitted by the
transacting party (Rule 114B): (e-cir 1301 dt
21/01/2016)
a) A time deposit, exceeding fifty thousand
rupees or aggregating to more than five lakhs
rupees during a financial year.
b) Opening an account other than mentioned in
above and a Basic Savings Bank Deposit account.
c) Payment in cash for purchase of bank drafts or
pay orders or banker’s cheques from a bank for an
amount exceeding fifty thousand rupees during
any one day.
d) Deposit in cash exceeding fifty thousand
rupees with a bank during any one day.
e) Making an application to any bank for issue of
credit or debit card.
f) Payment of an amount exceeding fifty
thousand rupees to a company to acquire its
debentures or bonds issued by it.
g) Payment of an amount exceeding fifty
thousand rupees to the Reserve Bank of India for
acquiring bonds issued by it.
h) Payment in cash of an amount exceeding fifty
thousand rupees in connection with travel to any
foreign country or payment for purchase of any
foreign currency at any one time.
i) Sale or purchase of any immovable property
exceeding ten lakhs rupees or valued by Stamp
Valuation authority at an amount exceeding ten
lakh rupees.
j) Payment for one or more pre-paid payment
instruments, to a banking company, in cash or by
way of a bank draft or pay order or banker’s
cheque of an amount aggregating to more than
fifty thousand rupees in a financial year.
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
k) Sale or purchase, of goods or services of any
nature other than those specified above of this
Table (if any) for amount exceeding two lakh
rupees per transaction.
l)contract of value exceeding one lakh rupees for
sale or purchase (other than shares) as defined in
section 2 the Securities Contract (Regulation) Act,
1956.
l)Sale or purchase of shares of company not listed
on a recognized stock exchange for an amount
exceeding one lakh rupees.
(Provided that where a person, entering into any
transaction referred to in this rule, is a minor and
who does not have any income chargeable to
income-tax, he shall quote the permanent
account number of his father or mother or
guardian, as the case may be, in the document
pertaining to the said transaction.)
(Provided further that any person who does not
have a permanent account number and who
enters into any transaction specified in this rule,
he shall make a declaration in Form No.60 giving
therein the particulars of such transaction.)
Further, under current guidelines, the
requirement of PAN or Form 60/61 is not
applicable for non-residents and the Central
Government, State Government and Consular
Offices in transactions where, they are payers.
The same exemptions are applicable to the
Central Government, State Government and
Consular Offices under revised guidelines also.
However, under new guidelines, in case of
nonresidents, only the transactions as mentioned
in point no. (c), (e), (g), (h), (j) and (k)of the
above table are exempted from such
requirements of obtaining of PAN or Form 60.
BMMC (BRANCH MANAGER’S MONTHLY
CERTIFICATE) e-cir 1333 dt 30/01/2016)
The revised format comprising a total of 59
certificates to be submitted at Monthly/ Quarterly
/ Half Yearly periodicity as mentioned hereunder,
Page
11
will now have to be certified by the Branch
Manager:
A) MONTHLY CERTIFICATES:
i. 27 certificates to be submitted by the Branch
Manager on a monthly basis (Applicable for all
branches Pan India).
ii. Trade Finance Related Certificates: A separate
section comprising 13 Trade Finance related
certificates have to be submitted by the Branch
Managers of branches handling Trade Finance
business along with the Monthly Certificates {item
(i) above}.
B. QUARTERLY CERTIFICATES: 8 certificates are
included in this group. These certificates are to be
submitted as on 30th June, 30th September, 31st
December, and 31st March along with the
Monthly Certificates.
C. HALF YEARLY CERTIFICATES: 11 certificates are
included in this group. These certificates are to be
submitted as on 30th September and 31st March
along with Monthly and Quarterly Certificates.
It has also been decided to discontinue
maintenance of the BMMC Register in the present
form, as this was more relevant for manual
operations.
Definition of "Currency", 2015 (e-cir 1390 dt
11/02/2016)
Debit cards, ATM cards or any other instrument
which can be used to create a financial liability
may be defined as currency.
Post Office (Postal Orders/Money Orders), 2015
(e-cir 1391 dt 11/02/2016)
General permission has been given to any person
to buy foreign exchange from any post office in
India in the form of postal order or money order.
Facility in CBS to Inquire INB/ATM/SMS
Registration Status of a Customer (e-cir 101 dt
26/04/2016).
 Quick Success Series- Accounting System & General Instructions
October 31, 2016

To enable the staff at branches to ascertain

whether a particular customer has availed,
ATM/INB, etc. facility or not and for supporting
the efforts made by them for migrating customers
to these low cost channels, a hot key
‘Ctrl+Shift+A’ has since been introduced in CBS.
On pressing the hot key, a small window
containing the status (Y/N) for INB, ATM and SMS
facility is displayed on the CBS screen.
REVISION OF CERSAI REGISTRATION CHARGES
w.e.f. 01.02.2016 (e-cir 1405 dt 15/02/2016)
Description Service Servic Charges
Charges e Tax including
Exc.S Tax S Tax
CERSAI charges Rs 50/- 14.5% Rs 58/-
for limits upto
Rs 5 lacs
CERSAI charges Rs 100/- 14.5% Rs 115/-
for limits above
Rs 5 lacs
OPERATIONS IN CURRENT ACCOUNT (e-cir 45 dt.
07/04/2016)
i) AOFs of non Individual customers should
continue to be maintained at the branches as
instructed by CPC Redesign & other Projects as
AOFS of Non individual accounts (viz Private Ltd
Companies, Govt. Accounts, Partnership Firms,
SHGs etc) take much more time for processing
due to various documentation formalities and also
branches receive requests for frequent changes in
the authorized signatories.
ii) Normally Branches should not issue contingent
cheques. In case of extreme emergency, only
those Branches having contingent cheque book in
Valuable Paper Inventory System (VPIS) in CBS,
should issue contingent cheque through CBS.
iii) At non-home branches raising of debit in C/As
should be allowed on the basis of cheques only.
At non home branches raising of Debit in C/As
through Letter of authority/ debit voucher
should not be allowed.
Admissible transactions:
a) Cash Deposit: ‘P’ Segment Cash Deposit : Max.
Rs.25, 000/- per day.SME Segment – Rs 2,00,000/-
per day.
b) Cash Withdrawal : P Segment – Rs 50,000/- for
self. SME Segment – Rs 1,00,000/- for self. No
cash payment to third parties. No cash payment
of CAG/MCG/CMPcheques.
c) Passbook Updation: Facility of Savings bank
pass -book updation at all non-home branches
without any charge except PBBs, SPBBs, CAG,MCG
and NRI branches throughout the country.
d) Transfer: (i) The restrictions are not applicable
to Multi City Cheques (MCC) which will be paid as
per the ceiling prescribed for different segments.
However, as System does not validate the ceilings
prescribed for Multi City Cheques, these have to
be monitored and controlled administratively by
the branches.
(ii) All intra-city Cheques will be allowed to be
paid without upper limit from non- home
branches as hitherto.
(iii) All transactions between same CIF,
irrespective of mode of transaction will be
allowed.
(iv) All transactions through Rupee Vostro
Account/ Dividend Warrant module will be
allowed without ceiling as hitherto.
Note : (i) There will be a general cap of Rs. 10 lacs
in originating debits for non-home transactions
for all branches and the special cap of Rs. 5 lacs
will be imposed for branches manned by Single
Officer and Single Clerk.
(ii) All RTGS transactions will be restricted to
home branches only. However RTGS remittances
on behalf of other banks from their accounts
maintained with us in capacity of clearing house
settlements will be allowed with debit vouchers.
In such circumstances all interbank RTGS
transactions are enabled to be processed through
R42 RTGS transaction module.

NON-HOME TRANSACTIONS (e-cir 90 dt (iii) All RTGS will be backed by cheque only. There
22/04/2016) will be no debit on the basis of debit voucher).

Page
12
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
However, to avoid any inconvenience to our
customers and also to comply with RBI guidelines,
following branches/ CPCs have been exempted
from above restrictions and they will continue to
undertake transactions as hitherto. However,
non-home debit for RTGS will not be allowed by
the System in any Branch including under noted
exempted branches. (i) All CAG/ MCG/CMP
enabled/ DGM/AGM headed branches.(ii) All BPR
outfits including RACPCs and SMECCCs.
(iii) All other arrangements already approved by
respective Group Head in respect of special type
of transactions such as Western Union, SBI card,
Metal Gold Loan etc.
(iv) All clearing CPCs including MICR & non-MICR
centres, where Speed Clearing System is
applicable as per RBI guidelines.
Auch Branches of Scale IV, III & II categories,
which are specially identified and recommended
by the Circle CGM, would be allowed to carry out
RTGS transactions by debit voucher at Home
Branch.
Branches should however continue to accept
Cheques drawn on other Branches of our Bank for
above Rs. 10 lacs in all branches and above Rs. 5
lacs in branches manned by Single Officer and
Single clerk, for collection of Cheques through SC/
DD automation module.
RISK FOCUSSED INTERNAL AUDIT (RFIA)
INCENTIVE FOR EARLY CLOSURE OF AUDIT
REPORTS (e-cir 124 dt 28/04/2016)
Penalty to be imposed on account of False
Compliance :
(a) High Risk & Medium Risk Areas : 1 False
Compliance : 10 marks, 2 False Compliances : 20
marks, => 3 False Compliances : 30 marks
(b) Low & Very Low Risk Areas : 1 to 3 False
Compliances : 10 marks, 4 to 5 False Compliances
: 15 marks, > 5 False Compliances : 20 marks,
Subject to (a) + (b) not exceeding 30 marks.
Further, penalty as per e-Circular No.
IMA/IMACA/6/2013-14 dated 26.11.2013 will
continue.
Financial Inclusion : RuPay Card- Personal
Accident Insurance (e-cir 189 dt 10/05/2016)
Page
13
Benefits of insurance will be available to the
cardholders who have performed minimum one
successful financial or non-financial transaction*
at any channel both intra and inter-bank i.e. on-us
and off-us (ATM/MicroATM/ POS/e-com/Business
Correspondent of the bank at locations by any
payment instrument) within 90 days prior to date
of accident including accident date of Non-
Premium cardholders.
*Transaction types means all customer induced
transaction at bank branch or by any payment
instrument whether on-us (Bank
Customer/RuPay card holder transacting at same
bank channels) and / or off-us (Bank Customer /
RuPay card holder transacting at other bank
channels).
OFFSITE TRANSACTION MONITORING SYSTEM
(OTMS) : PENALTY PROVISION IN RFIA FOR
SUBMISSION OF FALSE / DELAYED COMPLIANCE
TO OTMS ALERTS (e-cir 1433 dt 14/12/2015)
Parameters Mark
1 False Compliance observed during -5
RFIA
2 More than 90 % alerts responded after -4
7 days
3 More than 50 % but less than 90 % -3
responded after 7 days
4 50 % or less responded after 7 days -2
RISK FOCUSSED INTERNAL AUDIT (RFIA)
IMPLEMENTATION OF MODULAR STRUCTURE
AUDIT REPORT PROCESSING SYSTEM (e-cir 199 dt
11/05/2016)
RISK FOCUSSED INTERNAL AUDIT (RFIA) &
CREDIT AUDIT: INCENTIVE FOR EARLY CLOSURE &
PENALTY FOR FALSE COMPLIANCE (e-cir 826 dt
26/09/2016)
It has been decided to withdraw the early closure
incentive and its corresponding penalty in the
following manner :
a. The branches, where RFIA is completed on or
before 30.09.2016, will be eligible to be
considered for incentive score, subject to
 Quick Success Series- Accounting System & General Instructions
October 31, 2016
submission of satisfactory compliance remarks,
within the approved time frame. The branches
where RFIA will be completed after 30.09.2016,
will not be eligible for incentive score.
b. The penalty for submission of false compliance
remarks for the purpose of early closure
incentive, will continue for those branches which
have received the incentive scores in the RFIAs
completed up to 30.09.2016, till the closure of
their subsequent / next RFIA reports.
2. However, the penalty for false compliance in
terms of e Circular No. IMA/IMACA/6//2013-14
dated 26.11.2013 i.e. 1 mark for each High /
Medium Risk and 0.50 mark for each Very Low /
Low Risk area, subject to maximum of 50 marks,
will continue. This will help the branches and the
controllers, to concentrate on rectification of
irregularities more meaningfully and submit
comprehensive compliance remarks within the
stipulated time frame, rather than aiming for
early closure incentives by submitting false
compliances in a shorter time frame, than the
usual prescribed period.
EQUALISATION LEVY RULES, 2016 (e-cir 653 dt
19/08/2016)
Government has recently introduced a special
levy viz. Equalisation Levy w.e.f. 1st June 2016. In
terms of the provision of Finance Act 2016, Bank
is liable to deduct at the rate 6%, the equalisation
levy from the amount paid or payable to a non-
resident in respect of the specified service
provided by way of;
(i) online advertisement,
(ii) any provision for digital advertising space or
(iii) any other facility or service for the purpose of
online advertisement and includes any other
service as may be notified by the Central
Government in this behalf.
The equalisation levy shall not be charged, where:
(a) the non-resident providing the specified
service has a permanent establishment in India
and the specified service is effectively connected
with such permanent establishment;
Page
14
(b) the aggregate amount of consideration for
specified service received or receivable in a
previous year by the non-resident from the Bank
does not exceed one lakh rupees; or
(c) where payment for the specified service is not
for the purposes of carrying out business or
profession.
RISK FOCUSSED INTERNAL AUDIT (RFIA) :
DOCUMENTS NOT PRODUCED FOR VERIFICATION
(e-cir 520 dt 18/07/2016)
The competent authority has decided that :
i) Documents not produced for verification in
previous RFIA will form a part of sample in next
RFIA.
ii) There may be possibility of few such accounts
getting closed during the intervening period. IOs
will verify such closed accounts and if any major
irregularity is found in such closed accounts which
were not produced in previous RFIA and closed
before current RFIA, he will mention them in
detail in the Management Letter.
iii) Further, if a branch is not able to produce the
same document in next RFIA i.e. the documents of
an account are not produced in two continuous
audits, such account will be treated as Fraudulent
Account and the IO will record his observations
accordingly in RFIA Report.
However, while taking a view in the matter, the IO
will examine the following aspects before treating
it as Fraudulent Account :
a) Ascertain the end use of funds i.e. whether the
debits in the accounts were properly utilized for
the purpose for which the loan was sanctioned,
and
b) Source of credits, if any, in the account.
LAUNCH OF INSURANCE CLAIM REPORTING
SYSTEM (ICRS) (e-cir 897 dt 07/10/2016)
With a view to create proper database of Bank’s
Insurance claims and their proper follow up at
various levels on the basis of MIS, a need has
been felt to put in place an on-line reporting
system of insurance claims lodged by branches/
offices. Accordingly, Online Insurance Claim
 Quick Success Series- Accounting System & General Instructions
October 31, 2016

Reporting System (ICRS) has been launched and

the same is available at the following link:
https://icrs.statebanktimes.in
User manual detailing the ICRS portal is annexed
to this Circular (Annexure-A) and is also available
at State Bank Times > Department 1 > Banking
Operations Department > Insurance.

Page
15
 QUICK SUCCESS SERIES – ADVANCES GENERAL

QUICK SUCCESS SERIES an initiative of SBLC

Deoghar to facilitate the preparation of promo-
tion seeking personnel of our Bank, appears to
have succeeded in its objective to a large extent
QUICK as the readers are still approaching us for its
revision/updation despite availability of plenty
of other study materials.
SUCCESS We would not have been able to sustain this

SERIES unique effort of ours, without the active sup-

port and continuous encouragement of our
DGM cum Circle Development officer Sri Bi-
jayananda Padhi. We are deeply indebted to
him for his co-operation and guidance.
Sri Rakesh Roshan, Chief Manager (Training)
,Sri Kumar Priyank, Chief Manager (Training)
,Sri Sanjay Kumar Sharma,Manager (Train-
ing)and Sri Jitendra Kumar Arun,Manager
(Training) at this SBLC have owned up this
project and have taken pains to keep it relevant
to the users by updating & improving it at half
yearly interval.
Though every care has been taken while updat-
ing the contents, we request our readers to
ADVANCES GENERAL point out any lapses at the earliest. Needless to
mention that this book is not a substitute of
circular instructions issued by the Bank from
time to time. For detailed guidelines please re-
fer to Bank’s latest circulars. Soft copy of this
edition is available on our ftp://10.151.51.33 in
QSS folder and on SBI TIMES>PATNA CIR-
CLE>SBLC Deoghar site.
Team SBLC Deoghar is humbled by the re-
sponse and recognition, it is receiving from
readers within and beyond the circle. Our Team
wishes the readers grand success in their en-
deavours.

Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895
Fax - 06432-231810
E-mail: agmstc.deoghar@sbi.co.in

Updated By: Rakesh Roshan

Chief Manager (Training),
SBLC Deoghar
Mobile- 9162370185 Updated upto
Email- r.roshan@sbi.co.in 31st October 2016

Page 1
 QUICK SUCCESS SERIES – ADVANCES GENERAL
Loan Policy (Applicable to domestic Lending)-
Important Points
(RBI cir-RBI-2014-15/66 dtd 01.07.2014)
All Scheduled Commercial Banks(excluding RRBs)
Prudential Credit Exposure Norms
It has been prescribed by RBI.
Single Borrower :- Maximum exposure 15% of
Capital funds; for infrastructure lending 20%.
Group Borrower :- Maximum exposure 40% of
Capital funds; for infrastructure lending 50%.
(Capital funds includes Tier I and Tier II capital)
Individual Borrower :- Maximum aggregate credit
facilities ( FB and NFB ) of Rs. 25 Cr. (excluding
loan against specified securities).Rs.50 Cr. (H/L
only.) (E-cir:1182/2014-15 dt.05/01/2015)
Individuals as borrowers: Maximum aggregate
exposure of Rs. 50 crores. However, the maximum
aggregate exposure in respect of Ship Breaking
and Diamond Industry shall be Rs.200 crores.
ii)Noncorporates
($):Maximum aggregate exposure of Rs. 100
crores. However, the maximum aggregate expo-
sure in respect of Renewable Energy Projects shall
be Rs.50 crore, and for Ship Breaking and Di-
amond Industry - Rs.400 crores.
The above ceilings will also be applicable to the
aggregate of all facilities sanctioned to partner-
ship firms which have identical partners.
(REF:155/2016-17 DT:01/05/2016)
Non Corporates :- Maximum aggregate credit
facilities ( FB and NFB ) of Rs. 100 cr (excluding
loan against specified securities).
Corporates :- 15% of Bank’s capital funds for sin-
gle borrower exposures and 40% of capital funds
for group exposures.
A credit facility extended by lenders (i.e. banks
and select AIFIs) to a borrower for exposure in the
Transport, Energy, Water & Sanitation, Communi-
cation, Social and Commercial Infrastructure &
their infrastructure sub-sectors will qualify as
'infrastructure lending'.
Exposures to NBFCs
The exposure (both lending and investment, in-
cluding off balance sheet exposures) of a bank to
a single NBFC / NBFC-AFC (Asset Financing Com-
panies) should not exceed 10% / 15% respectively,
of the bank's capital funds as per its last audited
balance sheet. Banks may, however, assume ex-
Page 2
posures on a single NBFC / NBFC-AFC up to
15%/20% respectively, of their capital funds pro-
vided the exposure in excess of 10%/15% respec-
tively, is on account of funds on-lent by the NBFC
/ NBFC-AFC to the infrastructure sector. Exposure
of a bank to Infrastructure Finance Companies
(IFCs) should not exceed 15% of its capital funds
as per its last audited balance sheet, with a provi-
sion to increase it to 20% if the same is on ac-
count of funds on-lent by the IFCs to the infra-
structure sector. Further, banks may also consider
fixing internal limits for their aggregate exposure
to all NBFCs put together. Infusion of capital funds
after the published balance sheet date may also
be taken into account for the purpose of reckon-
ing capital funds. Banks should obtain an external
auditor’s certificate on completion of the aug-
mentation of capital and submit the same to the
Reserve Bank of India (Department of Banking
Supervision) before reckoning the additions to
capital funds.
Lending under Consortium Arrangements
The exposure limits will also be applicable to lend-
ing under consortium arrangements.
Food credit
Borrowers, to whom limits are allocated directly
by the Reserve Bank for food credit, will be ex-
empt from the ceiling.
Guarantee by the Government of India
The ceilings on single /group exposure limit would
not be applicable where principal and interest are
fully guaranteed by the Government of India.
Loans against Own Term Deposits
Loans and advances (both funded and non-funded
facilities) granted against the security of a bank’s
own term deposits may not be reckoned for com-
puting the exposure to the extent that the bank
has a specific lien on such deposits.
Exposure to Leasing, Hire Purchase and Factoring
Services
 QUICK SUCCESS SERIES – ADVANCES GENERAL

Banks have been permitted to undertake leasing,
hire purchase and factoring activities departmen-
tally. Where banks undertake these activities de-
partmentally, they should maintain a balanced
portfolio of equipment leasing, hire purchase and
factoring services vis-à-vis the aggregate credit.
Their exposure to each of these activities should
not exceed 10 per cent of total advances.
Irrevocable Payment Commitments (IPCs)
Banks issue Irrevocable Payment Commitments
(IPCs) in favour of stock exchanges on behalf of
domestic mutual funds/FIIs to facilitate the trans-
actions done by these clients.
The maturity of Term Loan should not exceed 8
years, including moratorium period (except cases
under CDR mechanism approved by the bank,
Housing Loan, Infrastructure Loans, Education
Loans and ATL under approved schemes etc.)
Quantitative Credit Standard Appraisal
 Minimum Current Ratio desired for manufacturing
company - 1.33
 Min. Current Ratio desired for
others - 1.20
 (for FBWC limits above Rs. 5cr). 1.00 (for FBWC
limits up to Rs. 5 cr).
 Maximum TOL/TNW desired for manufacturing
company - 3.00
 Maximum TOL/TNW desired for Others
- 5.00
 Minimum Net DSCR desired for manufacturing
company & others - 2:10
 Minimum gross DSCR desired for manufacturing
company & others - 1.75:1
Credit Risk Assessment (CRA)
 Models designed in conformity with Internal
Ratings Based (IRB) requirements of Basel-II.
 The current CRA (Simplified) Non-Trade and Trade
& Services models were developed in-house in
2007.
 Separate models for Non-Trading Sector (NTS)
and Trading Sector (TS).
 Two-dimensional structure for Risk Rating –
Borrower Rating and Facility Rating.
 Borrower Rating (BR) expanded to 16 grades (SB-1
to SB-16).
 Hurdle rate is SB 10.
 Facility Rating (FR) would also range from FR-1 to
FR-16
 The new CRA models will be applicable to all
accounts with Aggregate Exposure (FBL + NFBL) of
Rs. 25 lacs and above, for both Non-Trading Sec-
tor (C&I, SSI & AGL segments) and Trading Sector
(Including Services).
There will be following 3 CRA (Simplified)
Models-
i) CRA (Simplified) Non-Trade
ii) CRA (Simplified) Trade
iii) CRA (Simplified) Services
 Simplified Model covers accounts with exposure
of Rs. 25 lacs and above, but upto Rs. 5 crores.
 Regular Model covers accounts with exposure
above Rs. 5 crores.
 Facility Rating (FR) will be applicable only for
exposures covered under the Regular Model
 Borrower accounts rated SB 10 and below would
be rated at half-yearly intervals considering the
risk severity of the loan.
Separate weightage scheme and hurdle scores for
New Units as under:
Risk Existing - Revised for
Catego- Common New Units*
ry for Both
Existing &
New Units
Weigh-

Weigh-
Hurdle

Hurdle
Score

Score
tage

tage

 Maximum Debt/Equity desired for manufacturing

company - 2:1
Finan- 55 24 25 10
Maximum Debt/Equity desired for others cial Risk
- 2:1 Busi- 15 8 30 17
ness &
Indus-
try Risk

Page 3
 QUICK SUCCESS SERIES – ADVANCES GENERAL
Mana- 30 15 45 22
gem-
ent Risk
Total 10 47 100 49
0
*No changes for existing units.
The Credit Risk Assessment Model for Non Bank-
ing Finance Companies (CRANBFC), in its existing
form was introduced for use in the Bank in May
2000. The review of CRA Model for Non banking
finance companies (NBFC)/ Housing Finance Com-
panies (HFC) are in line with requirements of IRB
approach. The Model is applicable across the Bank
for all exposures to NBFCs and HFCs of Rs. 25 lacs
& above. The changes and highlights of the
NBFC/HFC model are summarized in
e.cir.sl.no:1228/2015-16 dt:12/01/2016
TAKE OVER OF ADVANCES
Take over norms applicable to C&I and SME seg-
ment:
For exposures from Rs.25 Lacs and above to less
than Rs.10 crores: The CRA of the borrower
should be SB-7 or better.
For exposures from Rs.10 crores and above upto
Rs.50 crores: Where ECR is not available: The CRA
of the borrower should be SB-7 or better,and and
the proposed exposure must be backed by mini-
mum 75% Collateral Security.
Further, it is also to be noted that no dilution in
existing security coverage would be permitted for
the amount taken over. Where ECR is available:
CRA should be SB-9 or better and ECR should be
BBB or better.
c) For exposures above Rs.50 crores: Where ECR is
not available: The CRA of the borrower should be
SB-5 or better. Where ECR is available: CRA should
be SB-9 or better and ECR should be BBB+ or bet-
ter.
iii. Other guidelines: Stock and Receivables Audit
is to be conducted prior to disbursement of any
credit facilities above Rs.5.00 crores except for
units having ECR of “A-” and better. Perfection of
securities must be completed within 90 days of
disbursement. (e.cir.sl.no:40/2016-17
dt:06/04/2016)& (e.cir.sl.no:786/2016-17
dt:16/09/2016)
 Norms for Takeover of advances under Agricul-
ture segment
Page 4
The minimum amount eligible for takeover would
be as under :
Nature of Facility Amount
ACC Rs.1.00 Lac
ATL– for Allied Ac- Rs.10.00 Lac
tivities
ATL for other than Rs.2.00 Lac
allied activities
The maximum amount eligible for takeover would
be Rs.2 crores. However, administrative clearance
should be obtained from ZCC for loans above Rs.2
crores to Rs.5 crores and from CCC-II for loans
above Rs.5 crores
No administrative clearance is needed for takeo-
ver wherever prescribed norms for takeover are
met or not and the Sanctioning Authority would
take a call.
Takeover from our Associate Banks is not permit-
ted.
No dilution in the security in takeover proposals is
permitted
(e.cir.sl.no:786/2016-17 dt:16/09/2016)
 Stock Audit
a) Stock and Receivables Audit shall be conducted
at yearly intervals for all exposures above Rs. 1
crore and upto Rs. 25 crores.
b) For units having credit limits of Rs. 25 crs and
above, the frequency of Stock and Receivables
Audit will be half yearly. For CAG/MCG accounts,
all unlisted companies falling under speculative
Grade, frequency of Stock and Receivables audit
will also be half yearly.
c) All other accounts of Rs. 5 crores and above
with Credit Rating of SB-8 and below, or accounts
where slippage in Credit Rating is by two notches
or more, irrespective of the rating, will also be
subjected to Stock and Receivables Audit at half
yearly intervals. (e-cir- 324 dt 04/07/2012)
d) In respect of accounts which are “B” and be-
low, Stock & Receivable Audit to be conducted at
quarterly intervals.
 QUICK SUCCESS SERIES – ADVANCES GENERAL
e) In respect of all accounts eligible for Stock Au-
dit, verification of Invoice by the Stock Auditor
should be made part of the Stock Audit. Failure of
verification of invoice should be suitably dealt
with. (e-cir- 794 dt 15/10/2013)
 Legal Audit
Reserve Bank of India told banks to do legal audit
and re-verification of title deeds of loans above Rs
5 crore to check fraud. Two years back, banks
were told to put a system a place wherein the
concurrent auditors were required to look into
the genuineness of the title documents especially
for large value loans. This move was prompted by
an RBI study of large value frauds, especially in
the housing loan segment.
The Legal Audit shall be conducted preferably 3
months before the commencement of RFIA / Cre-
dit Audit, so that auditee branches can comply
with rectification of the deficiencies pointed out.
A separate Legal Audit Report Format (LARF) to be
submitted by Legal Auditor has been designed.
The format contains Value Statements pertaining
to documentation, mortgage, charge creation,
etc., corresponding to Value Statements in the
existing Credit Audit Report Format (CARF). Legal
Audit was rolled out in all the Business verticals in
June, 2014 to cover all loan and Mortgage related
documents pertaining to accounts with aggregate
exposure of Rs.5.00 crores and above. As on 31st
March, 2015 Legal Audit has been commenced in
8,976 eligible accounts and already completed in
3,310 accounts.
 Credit Audit
Credit Audit Department (CAD) is a specialized
wing of Inspection & Management Audit Depart-
ment, Corporate Centre, Hyderabad, exclusively
dealing with high value Credit Accounts (with an
exposure of Rs.10 crore and above) domiciled at
Branches all over the country.
 Takeout finance
Takeout finance is the product emerging in the
context of the funding of long-term infrastructure
projects. Under this arrangement, the institu-
tion/the bank financing infrastructure projects will
have an arrangement with any financial institution
for transferring to the latter the outstanding in
respect of such financing in their books on a pre-
determined basis.
Page 5
 FACTORING:- Kalyansundaram Committee
recommended introduction of Factoring in India.
Factoring is purchase of a trade debt by a factor.
 Clayaton’s Rule
It is incorporated in S 59-61 of Indian Contract
Act. It is related to appropriation of Payment to-
wards debt. The first item of debit is offset by the
first payment. It is the sum first paid that is
treated as first paid out. This rule is applicable to
running a/cs like OD, CC etc., only.
 Various Types of Borrowers
Minor: - As per S 11 of Indian Contract Act, a con-
tract with minor is void-ab-initio (from the begin-
ning). Money lent to a minor can’t be recovered
from him even after he attains majority. But if the
money is spent for the necessaries or for the ben-
efit of his estate, the minor’s estate would be lia-
ble.
Joint Hindu Family (JHF): All adult co-parcener are
required to sign the security documents. If a Joint
Hindu Family has a minor co-parcener, his guar-
dian should sign the documents on his behalf to
bind the minor’s interest in the JHF. Loan granted
to a JHF binds the share of the minor in JHF prop-
erty, but not his personal property, if any. Loan
granted for a business which is not ancestral will
not bind the co-parceners.
Partnership: All partners are jointly and severally
liable for all the debts of the firm. The liability of
the partners is unlimited. The properties of the
firm as well as the properties of individual part-
ners are liable for the satisfaction of the liabilities
of the firm. Guarantee of the partners in their
personal capacity is also obtained. This is done
with a view to ensure that the Bank will rank
along with the private creditors of the partners to
claim the dividend from the personal property of
the partners, in case of their insolvency. RBI has
decided to prohibit NBFCs (both deposit and non
deposit taking ) from contributing capital to any
partnership firm or to be partners in partnership
firms. In cases of existing partnerships, NBFCs may
seek early retirement from the partnership firms.
Trust: No trustee can delegate his power to the
other parties for operation of the account. An ad-
 QUICK SUCCESS SERIES – ADVANCES GENERAL
vance can be granted to a Trust only if the trust
deed gives power to borrow money. In the case of
advances to Public Trusts, prior permission of the
Commissioner of Charity is to be obtained.
Liquidator: Official liquidator of a company is ap-
pointed by the court and the court’s specific sanc-
tion for the borrowing must be obtained. General-
ly no advance is granted to the liquidator.
Receiver: Receiver is appointed in respect of indi-
viduals and firms who have declared insolvency.
Generally no advance is granted to the Receiver.
Highlights On New Indian Companies Act, 2013
1. Immediate Changes in letterhead, bills or other
official communications, as if full name, address
of its registered office, Corporate Identity Number
(21 digit number allotted by Government), Tele-
phone number, fax number, Email id, website ad-
dress if any.
2. One Person Company (OPC): It's a Private Com-
pany having only one Member and at least One
Director. No compulsion to hold AGM. Conversion
of existing private Companies with paid-up capital
up to Rs 50 Lacs and turnover up to Rs 2 Crores
into OPC is permitted.
3. Woman Director: Every Listed Company
/Public Company with paid up capital of Rs 100
Crores or more / Public Company with turnover of
Rs 300 Crores or more shall have at least one
Woman Director.
4. Resi-
dent Director: Every Company must have a direct
or who stayed in India for a total pe-
riod of 182 days or more in previous calendar year
. ties (FB or NFB) without obtaining "No Objection
5. Accounting Year:
Every company shall follow uniform accounting
year i.e. 1 st April -31st March.
6. Loans to director – The Company CANNOT
advance any kind of loan / guarantee / security
to any director, Director of holding company, his
partner, his relative, Firm in which he or his rela-
tive is partner, private limited in which he is di-
rector or member or any bodies corporate
whose 25% or more of total voting power or
board of Directors is controlled by him.
7. Articles of Association- In the next General
Meeting, it is desirable to adopt Table F as stan-
dard set of Articles of Association of the Com-
Page 6
pany with relevant changes to suite the re-
quirements of the company. Further, every copy
of Memorandum and Articles issued to mem-
bers should contain a copy of all resolutions /
agreements that are required to be filed with
the Registrar.
8. Disqualification of director- All existing direc-
tors must have Directors Identification Number
(DIN) allotted by central government. Directors
who already have DIN need not take any action.
Directors not having DIN should initiate the
process of getting DIN allotted to him and in-
form companies. The Company, in turn, has to
inform registrar.
9. Financial year- Under the new Act, all com-
panies have to follow a uniform Financial Year
i.e. from 1st April to 31st March. Those compa-
nies which follow a different financial year have
to align their accounting year to 1st April to 31st
March within 2 years. It is desirable to do the
same as early as possible since most the compli-
ances are on financial year basis under the new
Companies Act.
10. Appointment of Statutory Auditors- Every
Listed company can appoint an individual audi-
tor for 5 years and a firm of auditors for 10
years. This period of 5 / 10 years commences
from the date of their appointment. Therefore,
those companies have reappointed their statu-
tory auditors for more than 5 / 10 years, have to
appoint another auditor in Annual General
Meeting for year 2014.
As per RBI guidelines, Non-Lending Banks should
not open CAs of borrowers enjoying credit facili-
Certificate (NOC)" from Lending Banks. If the NOC
sought is not received within a fortnight, a non
lending bank may go ahead and open the Current
Account.
In view of the above, a request for NOC sought
from our branches / by other banks, must be at-
tended to promptly and our objection / Non ob-
jection should be conveyed to the other Bank /
our Branch at the earliest and in any case well
within the laid down timeline of a fortnight
 QUICK SUCCESS SERIES – ADVANCES GENERAL

 The incidence of frauds involving

fudged/fabricated financial statements contin-
ues to be cause for serious concern. In this con-
nection, verification and cross checking of major
items of Profit & Loss account and Balance Sheet
with the regulatory returns, for validation and
ensuring their genuineness and acceptability,
should be ensured from various sources, such
as;

Sl.no Items in P/L account Returns filed by the

& B/Sheet unit, with which
the figures have to
be cross checked
1 Capital Balance Sheet avail-
able with Registrar
of
Companies (ROC)
2 Domestic Sales VAT Return
3 Payment to Con- Quarterly statement
tractors of TDS for other
than Salary filed un-
der Section 194-C
(Form No.26Q) with
Income Tax
Department
4 Net Profit Income tax return
and other related
documents submit-
ted to Income Tax
authorities
5 Purchases Credit claimed in the
VAT returns

 OFF SITE TRASACTION MONITORING SYSTEM

(OTMS):
Exception data generated by Data Warehouse (DW)
based on requirements submitted by Offsite Monitoring
Centre (OMC) at I &MA Hyderabad. OTMS, a web based
solution has been introduced to capture deviations and
take corrective actions. Presently 11 types of deviations
are being monitored and will be reviewed as per re-
quirements.

Page 7
 QUICK SUCCESS SERIES – ADVANCES GENERAL

LENDING TO PRIORITY SECTOR

(RBI CIR –RBI/2015-16/63 dtd 01.07.2015)
2. HOUSING
Categories Domestic commercial banks / Foreign banks with 20 and Foreign banks with less than
above branches 20 branches
Total Priority 40 per cent of ANBC* or credit equivalent amount of 40 percent of ANBC or credit
Sector ad- OBE*, whichever is higher. equivalent amount of Off-
vances Balance Sheet Exposure, whi-
chever is higher.

Agricultural Foreign banks with less than 20 branches and above have Not applicable.
to achieve the Agriculture Target within a Maximum pe-
riod of five years starting from April 1,2013 and ending on
March 31, 2018 as per the action plans submitted by
them and approved by RBI. The sub-target for Small and
Marginal farmers would be made applicable post 2018
after a review in 2017.
Micro Enter- 7.5 percent of ANBC or Credit Equivalent amount of OBE Not applicable.
prise whichever is higher to be achieved in a phased manner
i.e.7 percent by March 2016 and 7.5 percent by March
2017.
The Sub target for Micro Enterprises for foreign banks
with 20 branches and above would be made applicable
post 2018 after a review in 2017.
Advances to 10 per cent of ANBC or credit equivalent amount of OBE, Not applicable.
weaker sec- whichever is higher.
tions Foreign banks with 20 branches and above have to
achieve the Weaker Sections Target within a maximum
period of five years starting from April 1, 2013 and ending
on March 31, 2018 as per the action plans submitted by
them and approved by RBI.

(i) Loans to individuals up to 25 lakh in metropoli-

*Adjusted Net Bank Credit (ANBC) (Net Bank Cre-
dit plus investments made by banks in non-SLR
bonds held in HTM category)
*OBE - Off-Balance Sheet Exposure.
 For foreign banks with 20 and above branches,
priority sector targets and sub-targets have to be
achieved within a maximum period of five years starting
from April 1, 2013 and ending on March 31, 2018.
1. EDUCATION
Educational loans granted to individuals for edu-
cational purposes up to Rs. 10 lakh for studies in
India and Rs. 20 lakh for studies abroad.
tan centres with population above 10 lakh and 15
lakh in other centres for purchase/construction of
a dwelling unit per family excluding loans sanc-
tioned to bank’s own employees.
(ii) Loans for repairs to the damaged dwelling
units of families up to 2 lakh in rural and semi-
urban areas and up to 5 lakh in urban and metro-
politan areas.
(iii) Bank loans to any governmental agency for
construction of dwelling units or for slum clear-
ance and rehabilitation of slum dwellers subject
to a ceiling of 10 lakh per dwelling unit.
(iv) The loans sanctioned by banks for housing
projects exclusively for the purpose of construc-
tion of houses only to economically weaker sec-
tions and low income groups, the total cost of
which do not exceed 10 lakh per dwelling unit. For
the purpose of identifying the economically

Page 8
 QUICK SUCCESS SERIES – ADVANCES GENERAL
weaker sections and low income groups, the fami-
ly income limit of 1,20,000 per annum, irrespec-
tive of the location, is prescribed.
3. AGRICULTURE
Separate strategic business unit viz. Agriculture
Business Unit (ABU), was created during 2004.
The credit policy and procedures for agricultural
segment are by and large determined by RBI and
NABARD and the State Level Bankers’ Committee
(SLBC).
The policies and procedures substantially differ
from those of other segments. Lending to this sec-
tor is characterised by the twin features of Service
Area Approach (SAA) and scale of finance.
'Direct Finance' for Agricultural Purposes:
(i) Loans to individual farmers [including Self Help
Groups (SHGs) or Joint Liability Groups (JLGs), i.e.
groups of individual farmers] engaged in Agricul-
ture and Allied Activities, viz., dairy, fishery, ani-
mal husbandry, poultry, bee-keeping and sericul-
ture.
(ii) Loans to corporates including farmers' pro-
ducer companies of individual farmers, partner-
ship firms and co-operatives of farmers directly
engaged in Agriculture and Allied Activi-
ties, viz., dairy, fishery, animal husbandry, poultry,
bee-keeping and sericulture up to an aggregate
limit of `2 crore per borrower.
(iii) Loans to small and marginal farmers for pur-
chase of land for agricultural purposes.
(iv) Loans to distressed farmers indebted to non-
institutional lenders.
(v) Bank loans to Primary Agricultural Credit Socie-
ties (PACS), Farmers’ Service Societies (FSS) and
Large-sized Adivasi Multi Purpose Societies
(LAMPS) ceded to or managed/ controlled by such
banks for on lending to farmers for agricultural
and allied activities.
 EARLY SANCTION REVIEW (ESR): ESR mechanism
introduced in audit system since September 2014
to review sanctions of more than Rs.1 crore upto
Page 9
Rs.5 crores which are largely sanctioned / re-
newed by RCCs and ZCCs.(e.cir:835/2014-15
dt:13/10/2014)
The objectives of ESR are:
 To capture the critical risks in the proposals
sanctioned, as an early stage and apprise the controllers
of such risks for mitigation thereof at the earliest.
 Improve the quality of pre-sanction
process/sanctions in respect of exposures falling in this
category.
 Improve the quality of sourcing of loan propos-
als.
 During FY 2015, 4,339 accounts have been re-
viewed under ESR.
Based on feedback received in course of Early
Sanction Review I&M Audit Department, Hydera-
bad have drawn up a checklist for convenient ref-
erence by Regional Credit Committee (RCC) mem-
bers. (detailed in e.cir.1221/2014-15
dt.17/01/2015)
e-DFS, SME Car loan & SBI Shoppe Plus eligible for
review-YES (e.cir.1121/2015-16 dt:09/12/2015)
Analysis of Financial Statements
Important Financial Statements – Balance Sheet
& Profit & Loss Statement
 Balance Sheet – Statement of assets and liabili-
ties of a concern as on a particular date
 Asset – What the business entity owns
 Liabilities – What the business entity owes
 Assets can be classified into – Current Assets,
Non Current Assets, Miscellaneous As-
sets, Intangible Assets and Fixed Assets
 Liabilities can be classified into - Current Liabili-
ties, Term Liabilities and Net worth
 Current Asset – Likely to be converted into cash
in 12 months.
Examples – Cash and Bank Balance, Investments,
Stock (Raw Material, Stock in Process and Finished
Good), Sundry Debtors, Pre Paid Expenses ( Insur-
ance Premium Paid, Advance Tax Paid, etc)
Exceptions – 1. Sundry debtors outstanding up to
6 month only are classified as Current Asset, out-
standing beyond 6 month are classified as Non
Current Asset
2. Investment in Bank’s TDR are classified as Cur-
rent Asset irrespective of Period of Deposit
Non Current Asset – Previously current, but now
not likely to be converted into cash
Examples – Obsolete stocks, Non – Moving Stocks,
Sundry Debtors due beyond 6 months
 QUICK SUCCESS SERIES – ADVANCES GENERAL
 Miscellaneous Asset – Advance to employees,
Investment in associate firms, Investment in equi-
ty shares
 Intangible Asset – Goodwill, Copy Right, Trade
Mark, Patent, Royalties, Licences, Preliminary and
Pre operative expenses incurred by the firm, Debit
balance in Profit & Loss A/c.
 Fixed Asset – Assets employed for aid in the
production process but not used up in the produc-
tion process
Examples – Land & Building, Plant & Machinery,
Furniture & Fittings, Office equipments, etc. Fixed
assets go through wear and tear on their use. De-
preciation by Straight Line Method (SLM) or Writ-
ten Down Value Method (WDV) is applied on
these assets every year. Depreciation is a non
cash expense to the business entity.
 Current Liabilities – dues of the firm payable
within 12 months from the date of balance sheet
Examples – Bank Borrowings (Cash Credit, Over-
draft, etc), Sundry Creditors, Advance Payments
Received from customers, Term Loan Installments
due within 12 months
 Term Liabilities – dues of the firm Payable after
one year from the date of balance sheet. Source
for acquiring Fixed Assets, Supporting accumu-
lated losses and raising working capital margins.
Examples – Term Loan from Bank & FIs, Deben-
tures, Deferred Credit from supplier of Capital
equipments, Deposits from Public (Repayable
beyond one year) Term Liabilities are repaid out
of Cash Accrual (Profit after Tax + Depreciation +
Other Non Cash expense)
Definition of Net Worth
 Net worth would comprise Paid-up capital plus
Free Reserves including Share Premium but ex-
cluding Revaluation Reserves, plus Investment
Fluctuation Reserve and credit balance in Profit &
Loss account, less debit balance in Profit and Loss
account, Accumulated Losses and Intangible As-
sets. No general or specific provisions should be
included in computation of net worth. Infusion of
capital through equity shares, either through do-
mestic issues or overseas floats after the pub-
lished balance sheet date, may also be taken into
account for determining the ceiling on exposure
to capital market. Banks should obtain an external
auditor’s certificate on completion of the aug-
mentation of capital and submit the same to the
Page 10
Reserve Bank of India (Department of Banking
Supervision) before reckoning the additions, as
stated above. Tangible Net Worth – Net worth –
Intangibles
Ratio Analysis
Financial Ratios can be classified broadly under
four heads
a) Liquidity Ratio – Indicates ability to meet cur-
rent dues out of Short Term Assets
b) Solvency Ratio – Indicates extent of depen-
dence on outside liabilities and the feasibility of
meeting them if need arises
c) Activity Ratio – Indicates efficiency of the unit
in utilizing present available resources
d) Profitability Ratio – Indicates capacity of the
unit to generate profit and its rate of return
Liquidity Ratio
i) Current Ratio = Current Asset/Current Liabilities
ii) Quick or Acid test ratio = (Current Assets – In-
ventory) / Current liabilities
iii) Net Working Capital (NWC) or Margin or Liquid
Surplus = (Long Term Sources – Long Term Uses)
or (Current Asset – Current Liability)
Solvency Ratio
i) Debt Equity Ratio = Debt / Equity or Term Liabil-
ities / Tangible Net Worth
ii) Financial Leverage Ratio = Total Outside Liabili-
ties/ Tangible Net worth
iii) Debt Service Coverage Ratio = (Profit After Tax
+ Depreciation + Interest on TL)/(Principal Re-
payment of TL + Interest on TL)
Activity Ratio
i) Assets Turnover Ratio = Net Sales/Net Tangible
Assets
ii) Stock Turnover Ratio = Cost of goods sold
(COS)/ Average Inventory
COS = Net Sales – Gross Profit
Average Inventory = (Op Stock + Closing Stock)/2
iii) Debtor’s Period = Average Sundry Deb-
tors/Average daily credit sales
Average Sundry debtors = (Opening + Closing Deb-
tors)/2
iv) Creditor’s Period = Average Sundry Creditors/
Average daily credit purchases
Profitability Ratio
i) Return on Investment (ROI) = (Profit after Tax/
Total Tangible Assets) x 100
 QUICK SUCCESS SERIES – ADVANCES GENERAL
ii) Return on Equity (ROE) = (PAT / Tangible Net
worth) x 100
Bank Guarantees
Proper Classification- Financial or Performance
Credit Conversion Factor (e-cir-365-16.07.2013)
Financial guarantees, attract a CCF of 100 per
cent.
Performance guarantees, attract a CCF of 50 per
cent.
VALUATION OF LANDED ASSETS:
 (Modifications in the obtention of Valuation
Reports for Loans, applicable to all segments ir-
respective of the amount)
(e.cir.sl.no 229/2014-15 dt:04/06/2014)
Standard formats -one for properties valued up to
Rs 5 crores (Annexure-I) and the other for proper-
tiesvalued above Rs 5 crores (Annexure-II of the e-
cir.1227/2014-15 dt.17/01/2015.
 In case of variation of 10 % or more in the valua-
tion proposed by the valuer and the Guideline
value provided in the State Government notifica-
tion or Income Tax Gazette, justification on varia-
tion has to be given by the Valuer. The same
should be brought out in the Appraisal Memoran-
dum for the Sanctioning Authority to take a view.
 Details of last two transactions in the area also to
be incorporated in the Valuation Report.
 Valuers are to be provided with precise details of
the property to be valued. A copy of the TIR ob-
tained from the Empanelled Advocate for the
property to be valued should be given to the
Valuers.
 The guidelines in respect of TIR has been re-
viewed in respect of Home Loans and Home re-
lated loans with a view to improve delivery:
 TIR in respect of POA Sales/Gift Deed will invaria-
bly be obtained from two empanelled advocates,
irrespective of loan amount.
Scrutiny of Gift Deed and POA by Bank’s Law of-
ficer will be waived in respect of loans up to Rs.
1.00 crore. In all cases, where two TIRs are re-
quired to be obtained, certified copies of all rele-
vant documents will be obtained by only one of
the two empanelled advocates. The extant in-
structions for verification of genuineness of title
Page 11
documents by the empanelled advocates by in-
spection of books maintained at the Sub-registrar
office will continue to be followed by both the
advocates.
In cases where Title documents of current owner
is more than 13 years old and the property is mu-
tated in the name of current owner, the certified
copy will be obtained for the current Title docu-
ments only instead of current instruction of mini-
mum two previous chain title documents.
In all other cases, the extant instructions for ob-
taining certified copy of minimum two previous
chain titles falling within the TIR period (i.e. 13 or
30 years, as the case may be)/or all chain title
documents executed within three year period
from the date of the latest/current title deed pa-
pers will continue to be followed.(e.cir.Sl. No. :
649/2015 – 16 dtd:24/08/2015)
Whenever any property is taken as security (pri-
mary/ collateral) based on Gift Deed as the prin-
cipal title deed, clearance must be obtained from
the Law Department without fail. This is in addi-
tion to obtention of TIR from the Panel Advocate
as required in the normal course. A suitable con-
firmation to this effect must Invariably be pro-
vided in the loan proposal submitted to the Sanc-
tioning Authority, as a foot note under Security
column. (e.cir. 823/2015 – 16 dt:01/10/2015)
CENTRAL REGISTRY UNDER SARFAESI ACT 2002
The Central Registry of Securitisation Asset Re-
construction and Security Interest of In-
dia (CERSAI) is a company licensed under section
25 of the Companies Act, 1956 and registered by
the Registrar of Companies, New Delhi. CERSAI
was promoted by central government to prevent
frauds involving multiple lending by different
banks on the same immovable property. It be-
came operational on March 31, 2011.
The Company is a Government Company with
a shareholding of 51% by the Central Government
and select Public Sector Banks and the National
Housing Bank are also shareholders of the Com-
pany.
The Company is providing the platform for filing
registrations of transactions of securitisation, as-
set reconstruction and security interest by the
banks and financial institutions.
 QUICK SUCCESS SERIES – ADVANCES GENERAL

Any person can also search and inspect the The Menu navigation is Transaction Posting > On
records maintained by the Registry on pay- line fee deduction
ment of fees prescribed under the Securitisa- (i) The user has to key in the account number
tion and Reconstruction of Financial Assets from which the CERSAI Registration charges are to
and Enforcement of Security Interest (Central be recovered
Registry) Rules, 2011. (ii) From drop box select as LON/DEP for Ter-
mloan/Deposit accounts as applicable
 The process of registration of transactions of (iii) CERSAI charges will be automatically picked by
creation of security interest, securitization and the system when the loan sanctioned amount is
asset reconstruction will be carried out through entered by the user in the tier value column The
the web-portal www.cersai.org.in of the Central CERSAI registration charges recovered will be cre-
Registry. dited to the Bank CGL account which is paramete-
 As the registration of transactions of creation of rized. Once the Fee is successfully debited, the
security interest, securitization and asset recon- system shows a pop-up message “ An amont of
struction has been made mandatory in respect of INR (amount) has been debited from the
all mortgages created on or after 31st March account.
2011.
 The filing has to be done on an ongoing basis CERSAI has advised vide their Circular No CER-
within the 30 day. SAI/IT/1178/2016 dated 01.02.2016 that the fees
 A fee of Rs 500 is payable to CERSAI for each for various transactions in CERSAI has been re-
filing. duced
The Registrar has the discretion to permit regis- Nature of transaction Amount of fee payable
tration of charges up to 60 days from the date of to be Registered
the charge subject to payment of late fee up to
ten times of the prescribed amount of the fee on Particulars of creation or Rs.100/- for creation and for
the Banks/FIs However, the Central Registry has modification of Security any subsequent modification
Interest by way of mort- of Security interest for a loan
so far allowed for filing of charge within the next gage by deposit of title above Rs.5 lakh.
30 days following expiry of the initial period of 30 deeds For a loan below Rs.5 lakh,
days, without levying any penalty or additional the fee would be Rs.50/- for
fee. With the insertion of Section 26 A in SARFAE- both creation and modifica-
tion of security interest.
SI Act , if the particulars of the transaction are not
filed with the Registry within a period of 60 days
from the date of transaction, the secured creditor Particulars of Satisfaction NIL
of charge for security
has to approach the Central Government to get
interest filed under sub-
the delay condoned under the Act. rule (2) and (2A) to (2D) of
rule 4
Sl. Registration on CER- Additional fee proposed to be
Particulars of securitiza- Rs.500/-
SAI after charged if
no the date of transaction the loan amount is: tion or reconstruction of
financial assets
Upto Rs.5 Above Rs. 5 Particulars of satisfaction
Lakh Lakh
of securitization or recon- Rs.50/-
1 From 31st to 40th day Rs.500 Rs.1000
struction transactions
2 From 41st to 50th day Rs.1250 Rs.2500
From 51st to 60th day Any application for infor- Rs.10/-
3 Rs.2500 Rs.5000
mation recorded / main-
tained in the Register by
any person
To recover CERSAI registration charges for all
mortgages required to be registered in the Central Any application for condo- Not exceeding 10 times the
Registry Site, a front end menu has been devel- nation of delay up to 30 basic fee, as applicable
oped in CBS for recovery of CERSAI Charges by days
GITC, Belapur.
Note: Service Tax shall be applicable over and above
the fees mentioned above

Page 12
 QUICK SUCCESS SERIES – ADVANCES GENERAL
REGISTRATION OF CHARGES:
 Manual on Loans & Advances, Part-2, Chapter-18,
para 1.3 (iii) on the captioned subject says “The
pledge of goods on the company’s assets is a spe-
cific/ fixed charge. Therefore, the relative docu-
ment does not require registration with the Regi-
strar of Companies.”
 Revised Instructions: it has been decided that till
any future clarification is issued by the Ministry of
Corporate Affairs, operating functionaries should
register charges created by pledge under the op-
tion “Other” under “Type of Charge” in Form CHG
1. (e.cir.sl.no 242/2014-15 dt:07/06/2014)
The branches/operating units should use appro-
priate notice formats for serving notices to de-
faulting borrowers/guarantors under Section
13(2), and issuing/publishing Possession Notice
under Section 13(4) of the SARFAESI ACT-2002.
A complete set of model notices are available at
SAMG site, the access path being: SBI Times ->
Departments 2 -> SAMG -> Standard Format ->
Model Notices for action under SARFAESI Act.
Sale of Properties under SARFAESI Act, 2002
Standard Operating Procedure (SOP) is detailed in
e.cir.Sl. No. : 1459/2015 – 16 dtd:01/03/2016.
FUND TRANSFER PRICING (FTP)
(e.cir.sl.no 267/2014-15 dt:11/06/2014)
 For rated accounts, differential Transfer
Pricing Rates for limits from Rs. 5 Crores to 25
Crores and Rs.25 Crores and above, are intro-
duced To sensitize the branches for follow-up of
NPA’s, the Transfer Price Rates has been In-
creased.
{For advances of Rs.5 Cr. but less than Rs.25 Cr,
for units rated BBB and above, to encourage
branches to book quality business TP rates are
revised downwards by 10 bps. TP rates for ad-
vances rated BBB minus and below TP rates are
revised downwards by 5 bps. For advances of
Rs.25 Cr and above TP rates are revised down-
wards by 10 bps in respect of accounts rated “A”
and above.For advances of Rs.25 Cr and above TP
rates revised downwards by 5 bps in respect of
accounts rated “BBB”. For accounts with internal
rating of SB-6 and above TP rates are revised
downward by 10 bps. For accounts with internal
rating of SB-7 and below TP rates are revised
Page 13
downward by 5 bps. (e.cir.sl.no:636/2015-16
dt:20/08/2015)}
 Transfer price is applied for Savings Bank and
Current Account deposits on the portfolio out-
standing balance of the branch.
 For Limits Rs.5 Crs. and above but below Rs. 25
Crores Transfer Price is applied on External Rating
basis.(i.e. External Agencies)
 CC/OD/DL/WCDL (Limits Rs.5 Crore and above) for
accounts where External Rating is not available,
Transfer Price is to be charged/applied on Internal
rating basis.
 Term Loans (Limits Rs.5 Crore and above) for
accounts where External Rating is not available
Transfer Price is to be charged/applied on Internal
rating basis.
Accounts where there is neither External nor
Internal ratings, such accounts irrespective of
the limit transfer price is charged as under
Food Credit Accounts and others limits below
Rs. 5 Crores Base Rate + 15 bps
Restructured Accounts
(As per details obtained from CBS/BU)
Base Rate + + 50 bps
 The Tier-I capital adequacy ratio (CAR) of our Bank
stood at 9.60%, as against the RBI minimum re-
quirement of 7% as on March 2015. The Minimum
Common Equity Tier 1 CAR stood at 9.31%, well
over the RBI mandated 5.5%. The overall CAR of
the Bank by the end of FY2015 was 12.0%,
 As per the published accounts as on 31.03.2015,
the Bank’s Capital Funds (Basel III) stood at
Rs.1,46,518.95 crores as under:
Tier- I Capital— Rs 1,17,157.20 crores,
Tier- II Capital—Rs 29,361.75 crores.
Further, Bank’s Net Worth as on 31.03.2015 stood
at Rs.1,20,082.35 crores.
(e.cir: 304/2015 – 16 dtd:11/06/2015)
 As per extant instructions, Staff Accountability is
to be conducted when an account becomes NPA
or a fraud has been detected.
 Conveying reason(s) leading to rejection of loan
proposal and providing a copy of loan document
to the borrower is detailed under Fair Practices
Code for Lenders in line with RBI guidelines.
 It has now been decided to enable Cash Credit
accounts and Current Accounts with sanctioned
 QUICK SUCCESS SERIES – ADVANCES GENERAL
overdraft limits under non-retail segments for
transactions through Mobile Banking Service. All
other conditions remain the same.
 (e.cir.sl.no:337/2014-15 dt.02.07.2014)
 Ministry of Corporate Affairs had introduced e-
filing system in 2006.
 As a part of information to be submitted quarterly
on large borrowers (CRILC), starting from June
2014, Reserve Bank of India required the Banks to
furnish the information on non-cooperative bor-
rowers with exposure of Rs.5 cr and above. RBI
also prescribed higher/accelerated provisions on
new loans/exposures sanctioned to such bor-
rower entities as well as new loans/exposures to
any other entities promoted by such promot-
ers/directors or to a company, on whose board
any of the promoter/directors of identified non-
cooperative borrower entity is a director.
 Definition: Reserve Bank of India defined a non-
cooperative borrower as
 ‘One who does not provide necessary informa-
tion required by a lender to assess its financial
health even after 2 reminders; or
 Denies access to securities etc. as per terms of
sanction or
 Does not comply with other terms of loan
agreements within stipulated period; or
 Is hostile/indifferent/in denial mode to negoti-
ate with the bank on repayment issues; or plays
for time by giving false impression that some
solution is on horizon; or
 Resorts to vexatious tactics such as litigation to
thwart timely resolution of the interest of the
lender/s.
(e.cir.sl.no:355/2014-15 dt:07/07/2014)
 Provisions applicable: The higher/accelerated
provisions applicable in cases where a borrower is
identified as non-cooperative borrower are as
under:
 Standard-5%
 Sub-standard (secured)
Upto 6- months--15%
6 months to 1 year—25%
 Sub-standard (Unsecured-ab-initio)
Page 14
Upto 6- months--25%
6 months to 1 year—40%
 Doubtful-I- 2nd year- 40% (secured por-
tion) & 100% (unsecured portion)
 Doubtfull II- 3rd & 4th Year-100% for
both secured and unsecured portions
 Doubtfull III- 5th year
Onwards- 100%
 ADOPTION OF IBA APPROVED COMMON APPLI-
CATION FORM: it has been decided that in addi-
tion to the PAN No., Mobile No. & email IDs of
promoters / guarantors, all other details viz. Aad-
har No., Passport No., Social Media IDs etc. are
also to be captured in the loan application form.
These details may be inserted in item no. 14 & 20
(a) of the captioned application.
 Appropriate authority has approved reclassifica-
tion of major infrastructure related construction
activities viz. Roads, Ports, Airports, Railways,
Transport Terminals, Bridges, Tunnels and Dams,
from the existing Services Sector, to Industry Sec-
tor. Following this reclassification, the Collateral
Security norms applicable to Working Capital and
Term Loans to units under the Services Sector, will
not be applicable to units engaged in the eight
aforementioned major infrastructure related con-
struction activities. (e.cir. sl.no.911/2014-15
dt:29/10/2014)
 TUFS-Technology Upgradation Fund Scheme-
submission of ‘Asset Verification Certificate’ has
been made mandatory for release of subsidy un-
der TUFS from quarter ended June 2014 onwards.
 It has been decided to give separate value
statements in CRA (framework is to be used for all
internal credit rating models) more relevant for
assessment of New Units under ‘Management &
Corporate Governance’ parameter.
Standard Covenants form an integral part of the
credit delivery process and serve to bring in the
required discipline, as also take care of the regula-
tory requirements. There were 3 types of cove-
nants viz. Basic (12), Optional(14) and Nega-
tive(4). The Standard Covenants, aggregating to
30, have now been bifurcated into two (2) catego-
ries aggregating to 31 viz. ‘Mandatory Cove-
nants’(15) and ‘Mandatory Negative Cove-
 QUICK SUCCESS SERIES – ADVANCES GENERAL
nants’(16). Covenants under “Mandatory Nega-
tive” category (other than MN1) are those in re-
spect of which the borrower is required to obtain
prior approval of the Bank in writing. The breach
of any Standard Covenant would be treated as an
event of default and Bank will charge card rates
(in case concession has been extended) and in
addition a penalty may also be levied. The revised
Standard covenants (Mandatory and Mandatory
Negative) will be applicable for fresh/new sanc-
tions as well as renewal of WC limits of existing
customers. (e.cir.1242/2015-16 dt:07/01/2016)
 Whenever a breach of covenant takes place, a
suitable communication be sent to the CEO of the
Company expressing concern of the Bank.
(e.cir.sl.no:1028/2014-15 dt:12/12/2014)
 VALUATION OF LANDED ASSETS AND PHYSICAL
VERIFICATION OF PROPERTY
(e.cir.sl.no:1130/2014-15 dt:24/12/2014) In case
of variation of 20 % or more in the valuation pro-
posed by the valuer and the guideline value pro-
vided in the State Government notification or In-
come Tax Gazette, justification on variation has to
be given by the Valuer.
 Details of last two transactions are additionally to
be provided in the Valuation Report, if available.
Selfie of the Inspecting Official at the site, with or
without the borrower should be taken as an
integral part of inspection and the same should be
kept along with the security documents. This ex-
emption (with or without the borrower) will ap-
ply only in respect of Housing Loans.
 In respect of prospective new connections where
our estimated exposure is Rs. 5 crore or above
(aggregate of fund based and non-fun based ex-
posures), the Bank has entered into an agreement
with a service provider M/S Cubictree Technology
Solutions Pvt. Ltd., (CTSPL)for pre-screening ser-
vices.
 Obtention of CIR is mandatory prior to sanction of
credit facilities when the borrower is having Mul-
tiple Banking Arrangement or considered under
take over norms. The genuineness of the CIR
should be ascertained diligently and carefully i.e.
to be verified by way of branch visit, telechecking,
examining statements of accounts etc.
 It has been decided that Branch Managers, Case
Lead Officers or Case Officers in SAMBs and Offi-
Page 15
cers from SARBs/ Branches in the Circle / MCG /
CAG can file RTI application with Income Tax De-
partment, Sub-Registrar of Assurances and Mu-
nicipal Corporation for ascertaining details of in-
come and properties owned by the borrowers /
guarantors. Further the Income Tax Authorities
cannot claim exemption as furnishing the details
would involve overriding public interest for recov-
ery of money due to the Bank which is public
money. In case the CPIOs or the respective Appel-
late Authorities reject the application or deny the
information, the Bank can consider taking up the
matter with CIC and subsequently with High Court
and Supreme Court, if necessary.
(e.cir.sl.no:179/2014-15 dt:20/05/2014)
 DCCO =Date of commencement of commercial
operations.
 RAR=Risk Assessment Report
 AFI=Annual Financial Inspection
 MMPs=Mission Mode Projects
 MENA=Middle East & North Africa
 SOP=Standard Operating Procedure
 NEGP=National E-Governance Plan
 HPTF COMMITTEE=High Power Task Force Com-
mittee
 CRGFTLIH=Credit Risk Guarantee Fund Trust for
Low Income Housing
 CRILC=Central Repository of Information on Large
Credits.

 It has been decided by the Executive Committee
of Central Board (ECCB) that while putting up any
credit proposal (Format S or AS) to ECCB, a tem-
plate containing highlights of the proposal should
additionally be attached. (e.cir.1212/2014-15
dt:14/01/2015)
 In Section F (of Format S), item (i) (i.e. Risks /
adverse features and mitigating factors), a provi-
sion has been made for recording remarks featur-
ing in Credit Audit Report. In this section the criti-
cal risks / deficiencies/observations of the Credit
Audit report should be reported.
 Negative Lien:- It does not create any charge in
favour of the bank but merely prohibits the com-
pany from creating further charge in favour if the
third parties. (COS 245)
 Paripassu Charge: In consortium advances, the
borrower creates paripassu charge over his assets
in favour of all member banks. This is a charge
over the securities given to more than one credi-
tor with the condition that all the creditors will be
 QUICK SUCCESS SERIES – ADVANCES GENERAL
entitled to the charge on equal footing in propor-
tion to the amount of their advances.
 To strengthen measures to ensure proper end use
of Term Loan proceeds-Plant and machineries to
be purchased out of Bank’s loan are procured di-
rectly from the manufacturer/authorized dealer
instead of intermediaries. Borrowers have to sub-
mit quotations from the manufacturer/ authorized
dealer, at the time of request for sanction of Term
Loan, which should contain the details of RTGS
Code and Account Number to which the TL
proceeds have to be remitted.
 To have a Policy to protect and facilitate the oper-
ating functionaries handling recovery of Bank’s
NPAs/AUCAs. it has been decided to put in place a
policy for providing legal and financial protection
to Bank’s officers who adopt a tough posture
against defaulters and initiate criminal proceedings
based on facts of individual cases so that the de-
faulters do not go scot free under any circums-
tances and they are punished as per provisions of
Indian Penal Code (IPC), 1860 etc for various crimi-
nal offences committed by them against the Bank.
(e.cir.425/2015-16 dt:10/07/2015)
 NPAs should be migrated to SAMG immediately,
but in any case within a maximum period of 180
days from the date of NPA with the approval of the
Controllers of the Branches. However, accounts
where restructuring in JLF/CDR/Non-CDR mechan-
ism is under process, such accounts need not be
migrated within the maximum stipulated time limit
of 180 days.
 The present cut off limit of Rs.25 lacs for migration 
of accounts from NBG to SARBs has been lowered
to Rs.10 lacs.
 All existing AUCAs in CAG, MCG & AUCAs of Rs.10
lacs & above in NBG have to be migrated to SAMG.
 Branches in NBG should obtain approval
from their Controlling Authority not below the
rank of DGM for not migrating NPAs to SAMG 
within 180 days from the date of NPAs in their
branch. In case of MCG/CAG, this approval would
be required from the CGM.
 Advances related fraud cases can be mi-
grated to SAMG after registration of FIR with State
Police/CBI
 A standard Operating Procedure based on Bank’s
policy has been laid down with the approval of
competent authority for the benefit of the operat-
Page 16
ing units regarding Publication of Photographs of
Defaulter Borrower(s)/Guarantor(s) The required
formats of the proposals and the notices have
also been designed & enclosed.
(e.cir.sl.no.1245/2013-14 dtd:13.02.2014 &
e.cir.sl.no. 509/2015 – 16 dtd: 25/07/2015.)
 ECR has a bearing on Capital Adequacy
Ratio of the Bank. Obtaining External Credit Rat-
ing (ECR) has been made mandatory for all expo-
sures above Rs.5 Cr.
Obtention of ECR from any of the six accre-
dited agencies is mandatory for all exposures
of Rs.10 crores and above. Product specific
schemes (e.g. Lease Rental Discounting
Scheme, Asset Backed Loan, e-VFS etc.) are
exempted from obtaining ECR. (Reference
Loan Policy as on 01/01/2016, Chapter-6, pa-
ra.6.7) The extant instructions that:
• The validity of External Credit Rating is to be
treated as 15 months from the date of rating
and
• Independent verification of ECR must be en-
sured in all cases, by accessing the website of
the Rating Agency concerned (Ref.: e-Circular
No. CCO/CPPD-ADV/82/2015 – 16 dated
25/08/2015)
 Branches can update ECR information in CBS
through “Common Processing>CIS/BASEL/ Re-
structure> Capital Adequacy Details”.
Special Mention Account’ (SMA) was introduced
in terms of RBI Circular No.
DBS.CO.OSMOS/B.C./4/33.04.006/2002-2003
dated September 12, 2002, whereby banks are
required to identify incipient stress in the account
by creating a sub-asset category viz., SMA.
With a view to discouraging borrowers/defaulters
from being unreasonable and non-cooperative
with lenders in their bonafide resolution/recovery
efforts, banks may classify such borrowers as
“Non-cooperative borrowers”, after giving them
due notice if satisfactory clarifications are not fur-
nished. Banks will be required to report classifica-
tion of such borrowers to CRILC.
 QUICK SUCCESS SERIES – ADVANCES GENERAL
 A Non-cooperative borrower is one who does not
engage constructively with his lender by default-
ing in timely repayment of dues while having abili-
ty to pay, thwarting lenders’ efforts for recovery
of their dues by not providing necessary informa-
tion sought, denying access to assets financed /
collateral securities, obstructing sale of securities,
etc. In effect, a non-cooperative borrower is a de-
faulter who deliberately stone walls legitimate
efforts of the lenders to recover their dues.
 The Gold loan portfolio of the bank stands at
Rs.40, 995 cr as on 31.03.2015. Average ticket size
of gold loan is Rs.1.05 lakhs.
 Teaser rates: Comparatively lower rates of
interest in the first few years, after which rates
are reset at higher rates.
 Provisioning Coverage Ratio (PCR): The ratio of
provisioning to gross non-performing assets and
indicates the extent of funds a bank has kept
aside to cover loan losses.
 Sick Industrial Company means an industrial
company (being a company registered for not less
than five years) which has at the end of any finan-
cial year accumulated losses equal to or exceeding
its entire net worth.
 BIFR=Board for Industrial and Financial Recon-
struction
 SICA=The Sick Industrial Companies (Special
Provisions) Act, 1985
 OPINION REPORT - DEFINITION OF NET MEANS
AND RATING: The Managing Committee of IBA,
has accepted the revised parameters for calculat-
ing the Net Means of borrowers, for reporting in
Credit Information Reports. Accordingly, all mem-
ber banks have been advised for implementation
of the structure as under (e.cir.sl.no:679/2015-16
dt:28/08/2015)
Net Means Means.
Up to Rs. 1.00 lac. Very small
Above Rs.1.00 lacs to Small Means.
Rs.4.00 lacs
Above Rs.4.00 lacs to Moderate
Rs.10.00 lacs means.
Above Rs. 10.00 lacs to Fair means.
Rs. 25.00 lacs.
Page 17
Above Rs. 25.00 lacs to Good means
Rs.1.00 crore
Above Rs.1.00 crore to Very good means
Rs.10.00 crores.
Above Rs.10.00 crores Large means.
to
Rs.25.00 crores
Above Rs.25.00 crores Very Large means.
 Opinion Reports should invariably be compiled
and updated annually for borrowers in CAG,MCG,
SME and before migration of accounts to SAMG.
In case of loans under PBBU and RE, H&HD, Opi-
nion Reports would be compiled once at the time
of sanction.
 The operating functionaries are not required to
forward copies of Opinion Reports to Controllers.
 Compiling fresh Opinion Reports during change in
incumbency of Field Officer/Cash Officer/Branch
Manager has since been dispensed with
 Compilation of detailed opinion report has been
exempted in following cases:
 Opinion Reports need not be compiled for Loans
against Bank’s own fixed deposits
 Borrowers availing loans against pledge of Gold
upto Rs.3.00 Lacs (Both “P” and “AGL” segments)
 Borrowers availing loans upto Rs.3.00 Lacs in case
of AGL and SME segments.
(e.cir.Sl. No. : 753/2014 – 15 dt: 25/09/14)
 RAROC=RISK ADJUSTED RETURN ON CAPITAL:
RAROC presents risk-oriented view for the reve-
nues in terms of risks taken to generate those
revenues. It serves as a uniform measure of per-
formance to compare profitability across different
businesses with different levels of risk and capital
requirements.
(e.cir:438/2015-16 dtd:13/07/2015)
RAROC is defined as
Risk Adjusted Return
RAROC = -------------------------------
Economic Capital
 QUICK SUCCESS SERIES – ADVANCES GENERAL
[(Interest + Non Interest Income) - Ex-
penses -Expected Losses +Notional return
on regulatory Capital]
RAROC= -------------------------------x(1-Tax Rate)
Economic Capital
 RAROC will be calculated at customer level to
evaluate customer’s profitability. Indicative Hur-
dle rate has been approved at 25%. Benchmark
will be reviewed after 9 months, i.e. in Mar'16.
 RAROC thus calculated, will be available to the
Relationship Manager and Credit committees as a
reference in decision making, by comparing with
minimum expected return (Hurdle Rate as de-
cided by the Bank), for negotiating
 Pricing
 Additional Non-interest income
 Collateral
 Out of Order:An account should be treated as 'out
of order' if the outstanding balance remains con-
tinuously in excess of the sanctioned lim-
it/drawing power for 90 days. In cases where the
outstanding balance in the principal operating
account is less than the sanctioned limit/drawing
power, but there are no credits continuously for
90 days as on the date of Balance Sheet or credits
are not enough to cover the interest debited dur-
ing the same period, these accounts should be
treated as 'out of order'.
 Overdue: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.
 In the case of bank finance given for industrial
projects or for agricultural plantations etc. where
moratorium is available for payment of interest,
payment of interest becomes 'due' only after the
moratorium or gestation period is over. There-
fore, such amounts of interest do not become
overdue and hence do not become NPA, with
reference to the date of debit of interest. They
become overdue after due date for payment of
interest, if uncollected.
 In the case of housing loan or similar advances
granted to staff members where interest is pay-
able after recovery of principal, interest need not
be considered as overdue from the first quarter
onwards. Such loans/advances should be classi-
Page 18
fied as NPA only when there is a default in re-
payment of instalment of principal or payment of
interest on the respective due dates.
 CDR system in the country will have a
three tier structure :
 CDR Standing Forum and its Core Group
 CDR Empowered Group
 CDR Cell
A loan granted for short duration crops will be
treated as NPA, if the instalment of principal or
interest thereon remains overdue for two crop
seasons. A loan granted for long duration crops
will be treated as NPA, if the instalment of princip-
al or interest thereon remains overdue for one
crop season. For the purpose of these guidelines,
“long duration” crops would be crops with crop
season longer than one year and crops, which are
not “long duration” crops, would be treated as
“short duration” crops. The crop season for each
crop, which means the period up to harvesting of
the crops raised, would be as determined by the
State Level Bankers’ Committee in each State. De-
pending upon the duration of crops raised by an
agriculturist, the above NPA norms would also be
made applicable to agricultural term loans availed
of by him.
 Corporate Debt Restructuring (CDR) Me-
chanism: The objective of the Corporate Debt Re-
structuring (CDR) framework is to ensure timely
and transparent mechanism for restructuring the
corporate debts of viable entities facing prob-
lems,outside the purview of BIFR, DRT and other
legal proceedings, for the benefit of all concerned.
The CDR Mechanism has been designed to facili-
tate restructuring of advances of borrowers enjoy-
ing credit facilities from more than one bank / Fi-
nancial Institution (FI) in a coordinated manner.
The CDR Mechanism is an organizational frame-
work institutionalized for speedy disposal of re-
structuring proposals of large borrowers availing
finance from more than one banks / FIs. This me-
chanism will be available to all borrowers engaged
in any type of activity subject to the following con-
ditions :
 QUICK SUCCESS SERIES – ADVANCES GENERAL
a) The borrowers enjoy credit facilities from
more than one bank / FI under multiple banking /
syndication / consortium system of lending.
b) The total outstanding (fund-based and non-
fund based) exposure is Rs.10 crore or above.
 The instructions on interpretations of CIBIL report
and certain relaxations /modifications in mini-
mum CIBIL score, some relaxation for certain cat-
egories of borrowers under salaried private un-
listed companies, professional & self-employed
and established Businessmen have been made in
view of the high incidence of NPAs and frauds in
Auto loans. (e.cir.833/2015-16 dt:05/10/2015)
 CGTMSE has revised the interest rate structure
for covered accounts w.e.f 01.12.2015. The revi-
sion involves charging of interest for loans up to
Rs.50 lacs at BR+3% and for loans >Rs.50 lacs & up
to Rs.100 lacs at BR+4%, irrespective of CRA rating
The existing as well as revised interest structure
for CGTMSE guaranteed loans w.e.f.
01.12.2015).(e.cir.1098/2015-16 dt:05/12/2015)
Recoveries made, post settlement of claims by
CGTMSE in respect of proposals covered under
Credit Guarantee Scheme (CGS), should be passed
on to CGTMSE as per provisions of CGS. As per
Chapter IV, Clause 11(iii) of CGS, every amount
recovered and due to be paid to the Trust shall be
paid without delay, and in case it remains unpaid
beyond a period of 30 days from the date on
which it was first recovered, interest shall be pay-
able to the Trust by the MLI at the rate which is
4% above Bank Rate for the period for which
payment remains outstanding after the expiry of
the said period of 30 days.
 Aggregate Limits include all Fund and Non-fund
based Limits (including Term Loans).
Page 19
 With a view to discourage the branches from
submission of false / delayed compliance to
OTMS alerts, it has been decided to impose a
penalty and award negative marks in RFIA score
and become effective from RFIA October, 2015.
 I&MA department has since revised the audit
report formats (ARFS). Implementation of mod-
ular structure Audit report processing system has
been initiated. Risk assessment modules (RAMS)
have been developed for each auditee unit to as-
sess its activities and related risk profile compre-
hensively. Scores are auto generated and are au-
tomatically populated in the ARF as per pre de-
fined deviation range and score band. A graded
system of penalty in RFIA for false compliance
has been introduced.
(e.cir. sl.no.199/2016 – 17 dt: 11/05/ 2016.)
Penalty to be imposed on account of False
Compliance:
(a)High Risk & Medium Risk Areas :
1 False Compliance : 10 marks
2 False Compliances : 20 marks
=> 3 False Compliances : 30 marks.
(b) Low & Very Low Risk Areas :
1 to 3 False Compliances : 10 marks
4 to 5 False Compliances : 15 marks
> 5 False Compliances : 20 marks
Subject to (a) + (b) not exceeding 30 marks.
 Term Loans having tenure beyond 7 years will not
be eligible for CGTMSE Guarantee Coverage as
interest rate will cross 13.30%(BR+4%), the cap
prescribed by CGTMSE. (e.cir.964/2015-16
dt:02/11/2015)
 Payment of Annual Guarantee Fee(AGF) on Term
Loans: As per extant instructions, the Bank is not
absorbing the Annual Guarantee Fee (AGF) for
CGTMSE guaranteed loans with limit >Rs.50 lacs
to Rs.100 lacs w.e.f 17.06.2014(Ref. SMEBU e-
circular SL.No.307/2014-15 dated 24th June,
2014). It has been decided that henceforth, AGF
on Term Loans financed under CGTMSE guaran-
tee cover w.e.f. 01.12.2015 will not be absorbed
by the Bank irrespective of the amount. Hence,
AGF on Term Loans sanctioned on or after
01.12.2015(irrespective of amount) shall be de-
bited to borrower’s loan account and paid to
 QUICK SUCCESS SERIES – ADVANCES GENERAL
CGTMSE. In case the borrower is inclined to avail
Term Loans under Credit Guarantee Scheme of
CGTMSE and in respect of such Term Loans sanc-
tioned on or after 01.12.2015, the concerned
branch has to pay the AGF for the first year by
debiting borrower’s account. For subsequent
years, AGF on such Term loans shall be paid by us
at Corporate Centre on or before May, 31 of
every year till the end of the tenure of guarantee
cover by debiting concerned circles with instruc-
tions to recover the AGF from respective bor-
rower’s account. (e.cir.964/2015-16
dt:02/11/2015)
 Websites for verification along with navigation
Path for various Documents for verification by
Processing/ Sanctioning Officer is detailed in the
Master circular on Auto loan
e.cir.sl.no.1111/2015-16 dt:08/12/2015.
 Assessment of credit limits based on unauthentic,
unverified financials submitted by borrowers
/prospective borrowers leads to frequent and
large enhancements in limits. With a view to en-
suring realistic assessment of scale of operations
so that optimum credit limits are considered for
sanction, our satisfaction as to authenticity / rea-
sonableness of data provided by customers is of
utmost importance during assessment. Projected
sales figures should be in sync with Industry /
Sector / Sub-sector growth and in case of va-
riance by more than 20%, deeper analysis needs
to be carried out. Similarly, projected Cash flows
submitted by the customers, need to be in sync
with past sales and are to be cross checked with
the credit summations in the account.
(e.cir.sl.no:1112/2015-16 dt:08/12/2015)
 For operational convenience it has now been
decided to revise the authority structure as under
(e.CIR.SL.NO:1350/2015-16 DT:03/02/2016)
Amount of Loan Deviation to be
approved by
Up to Rs 50 lacs Sanctioning Authority
Above Rs 50 lacs & up to Zonal Credit Commit-
RCC powers tee
Within the powers of ZCC / CCC-1
CCC-II
Within the powers of CCC–I/ WBCC-II
MCCC
Within the powers WBCC-II / Sanctioning Authority
WBCC-I /
CCCC
Page 20
Within the powers CCCC
ECCB
 KYC DOCUMENTS applicable for Non Individu-
als/Entities accounts of Proprietary concerns,
Accounts of partnership firms, Accounts of com-
panies, Accounts of trusts & foundations, Ac-
counts of Unincorporated association or body of
individuals, Hindu Undivided Family (HUF) de-
tailed in e.cir.sl.no:1115/2015-16dt:08/12/2015
 In terms of the extant instructions, operating
units have to obtain Credit Information Report
from one CIC for Home Loan limits upto Rs 10
lacs and two CICs in respect of Home Loan limits
above Rs 10 lacs, to scrutinize credit history of
the borrower. (e.cir.sl.no:1209/2015-16 dt:
31/12/2015)
 Project TATkal, is about total revamping of entire
Home Loan Delivery Channel, starting from
sourcing till Maintenance, is under implantation
in the Bank.
 As per judgement of Hon’ble Supreme Court of
India, application for recovery of dues before
DRTs in BIFR cases are not to be
filed.(e.cir.sl.no:1244/2015-16 dt:07/01/2016)
 To obviate complaints of delay, rejection, timely
decision on sanction, etc. a Standard Operating
Procedure (SOP) for sanction of loans (including
takeover of loans), has been prepared. SOP will
cover loans sanctioned by RMSEs & RMMEs i.e.
in BPR Centres above Rs.50 lacs and in Non BPR
Centres above Rs. 1 crore. (e.cir.sl.no:1267/2015-
16 dt:13/01/2016
 In order to enhance credit skills of the operating
staff and obviate complaints of delay in
processing of Auto Loans, a Standard Operating
Procedure (given as Annexure), for convenience
to operating functionaries, has been prepared.
(e.cir.sl.no:1321/2015-16 dt:29/01/2016
 Our Bank is launching the Wealth Management
Initiative SBI Exclusif. The objective of Wealth
Management initiative is to retain as also acquire
the premium customer segment by offering a
complete range of financial products and servic-
 QUICK SUCCESS SERIES – ADVANCES GENERAL
es along with investment advisory services,
which are technology driven, contemporary &
comprehensive. The Wealth Management Busi-
ness would be driven through Wealth hubs, ded-
icated branches and e-Wealth Centres (where
banking and investment services would be pro-
vided over audio, video and web chat channels)
using state of the art technologies. Presently, the
Wealth Management Initiative is being
launched in Bengaluru and will be rolled out to
select cities shortly. SBI Exclusif is a new set of
services designed to give our registered (signed
up) customers the following benefits -
 Unique Relationship Manager Model (RM)
backed by a team of experts. Extensive range of
rewarding products and services including an all
new enhanced savings account, a wide range of
investment products, lifestyle privileges including
an exclusive health card, loan approvals on priori-
ty, Visa Signature cards with additional privileges,
as well as expert legacy & taxation advisory ser-
vices.
Expert financial advisory across all asset classes
crafted to suit the Customer’s immediate & long-
term financial needs – this includes mutual funds,
real estate advisory, gold etc. (To be rolled out)
Enhanced digital platform on internet and mobile,
which gives the Customer access to all his/her
information in one place and lets him/her carry
out all banking and investment transactions on
the go. (e.cir.sl.no:1270/2015-16 dt: 14/01/2016)
Concession on different services have been ex-
tended to the SBI Exclusif customers. Detailed in
e.cir.sl.no.151/2016-17 dt:30/04/2016
 Earlier service fee /incentive for sourcing Auto
Loans to dealers /DSEs were being paid by debit
to branch Interest Account. Now any charges pay-
able to third party entities (TPEs) shall be paid by
debit to Charges Account through Vendor Pay-
ment System (VPS)) to enable the Bank to dis-
charge service tax liability under reverse charge.
 In terms of extant instructions, operating units
have to obtain IN PER SEG.Credit Information Re-
ports from two of the four Credit Information
Companies viz. Credit Information Bureau Limited
(CIBIL), Equifax Credit Information Services Pvt Ltd
(ECISPL), Experian Credit Information Company of
India Ltd (ECICIPL) and CRIF Highmark Credit In-
Page 21
formation Services Pvt. Ltd (HMCISPL).
(e.cir.sl.no:1298/2015-16 dt: 21/01/2016)
 In terms of the extant instructions, operating units
have to obtain Credit Information Report in AGRI
SEG.as under:
a) For secured Loans up to a limit of Rs.3.00 lac :
Report from one Credit Bureau
b) For secured Loans for limit greater than Rs.3.00
lac : Report from two Credit Bureaus
c) For unsecured Loans up to a limit of Rs.1.00 lac
: Report from one Credit Bureau
d) For unsecured Loans for limit greater than
Rs.1.00 lac: Report from two Credit Bureaus
It has been decided to follow the undernoted or-
der for pulling CIRs from CICs:
i. CRIF HIGH mark Credit Information Services Pvt
Ltd.
ii. Credit Information Bureau Limited (CIBIL)
iii. Equifax Credit Information Company of India
iv. Experian Credit Information Company of India
Where one report is required, it will be pulled
from CRIF HIGH mark Credit Information Services
Pvt Ltd and if two reports are required then one
report from CRIF HIGH mark Credit Information
Services Pvt Ltd and second from Credit Informa-
tion Bureau Limited (CIBIL) will be obtained.
(e.cir.sl.no:1305/2015-16 dt: 22/01/2016)
 The National Payments Corporation of India
(NPCI) offers to banks, financial institutions, Cor-
porates and Government/s a service termed as
“National Automated Clearing House (NACH)”
which includes both Debit and Credit. It shall be
referred to as NACH hereafter.
Proposed NACH (Debit) & NACH (Credit) aims at
facilitating interbank high volume, low value de-
bit/credit transactions, which are repetitive in
nature, electronically using the NPCI service. De-
tailed procedural guidelines is there in
e.cir.sl.no.1366/2015-16 dt:06/02/2016
 ECS is now being migrated to NACH and NPCI / RBI
has advised member banks to migrate full volume
to NACH as processing of ECS by RBI will be com-
pletely stopped with effect from 01.04.2016.
Therefore, all branches/ RACPCs should stop ac-
cepting ECS mandates and obtain fresh NACH
Mandates. However, customers who have already
given ECS debit mandate need not execute NACH
 QUICK SUCCESS SERIES – ADVANCES GENERAL
mandate afresh and only for the new debit in-
structions NACH mandate should be obtained.
(e.cir.sl.no. 1371/2015 – 16 dt:09/02/2016)
 ECS/NACH files will be processed daily, except on
RTGS holidays. SBI has opted for decentralized
processing of ECS files received from NPCI and it
will be the responsibility of the respective Cen-
tres/CCPCs/Branches to process the records/files
and upload the return files to NPCI same day
within stipulated time lines prescribed by NPCI,
even if the day is a holiday in the Circle/ branch
but working day for RTGS.
(e.cir.sl.no. 1493/2015 – 16 dt:05/03/2016)
 It has now been decided by the appropriate
authority to modify the guidelines pertaining to
the WCDL product as under:
Parameter Revised Guide-
lines
Maximum Tenor 365 days
Minimum Tranche Rs.5 Crore
 The guidelines on minimum tenor i.e 7 days,
provided the tranche is at least Rs 25 crores, and
30 days otherwise, remain unchanged.
 Supreme Court Order dated 11.08.2015 –
Prohibition of display of Aadhaar number of resi-
dents in public domain: all the operating functio-
naries are advised not to display or make available
Aadhaar numbers in public domain such as inter-
net, web, public notices etc . In case there is a re-
quirement to publish a list of individu-
als/customers by any department/branch/office
through a public notice, such list shall not contain
Aadhaar numbers. (e.cir.sl.no:1411/2015-16
DT:16/02/2016)
 As of now, for agricultural advances with limit of
Rs.25 lacs to Rs.2 crores, Simplified Liberal Model
of CRA is being adopted.The Bank has approved
the waiver of CRA rating in Produce Marketing
Loans of Rs.25 lac to Rs.50 lac under Collateral
Management arrangement with empanelled Col-
lateral Managers based upon certain conditions.
(e.cir.sl.no.1415/2015-16 dt:16/02/2016)
 All Mudra loans (Manufacturing & Services) upto
Rs. 10 lacs also should be covered under the Cre-
dit Guarantee Scheme of CGTMSE. Loans to retail
Page 22
trade are not eligible for coverage under Credit
Guarantee Scheme of CGTMSE.
 The interest rate structure for CGTMSE loans
above Rs.10 lacs to Rs. 100 lacs (effective from
01.12.2015) advised earlier remains unchanged.
The Annual Guarantee Fee (AGF) for all eligible
MSE loan accounts with Cash Credit limit upto
Rs.50 lacs is being absorbed by the Bank. AGF for
Cash Credit limit above Rs.50 lacs (sanctioned on
or after 17.06.2014) and AGF on Term Loans fi-
nanced under CGTMSE guarantee cover (w.e.f.
01.12.2015) irrespective of the loan amount will
not be absorbed by the Bank. Hence, AGF on
Term Loans sanctioned on or after 01.12.2015
(irrespective of the amount) and Cash Credit limit
above Rs.50 lac shall be debited to borrower’s
account and paid to CGTMSE.
(e.cir.sl.no:1419/2015-16 dt:16/02/2016)
 Under SARFAESI Act, 2002, the Bank can sell the
secured assets to recover its dues by following the
prescribed procedures. Under Rule 6(1) and 8(5)
of the Security Interest (Enforcement) Rules, sale
of the secured assets can be made by any one of
the following methods to secure maximum sale
price:
a) By obtaining quotations from the persons deal-
ing with similar secured assets or otherwise inter-
ested in buying such assets
b) By inviting tenders from the public
c) By holding public auction
d) By private treaty (e.cir.sl.no: 1423/2015 – 16
dt:17/02/2016)
 Liquidity Coverage Ratio (LCR)
 TDRs of our bank with the exception of SBI Tax
saving Scheme, 2006 have the option of prema-
ture payment and therefore the entire TDR/STDR
portfolio would be considered as callable within
the next 30 days.
The product SBI- NON-CALLABLE TERM DEPOSIT
SCHEME is available for TDRs/STDRs of Rs.1 Crore
and above where the banks would have the dis-
cretion to offer differential interest rates based on
whether term deposits are with or without pre-
mature withdrawal facility. Product code 3411-
1529 for NCD-STD-GEN PUB-IND-2Y has been
opened. Premiums on interest rates for Non-
Callable Deposits of Rs.100 Crores and above to
all customers for both Card Rates and DIR Rates.
 QUICK SUCCESS SERIES – ADVANCES GENERAL
Currently Lock-in Period would be allowed to be
set at product level in years i.e. 1 year, 2 years
and 3 years.
 In respect of guarantees issued by the branches
favouring Government Departments, branches
should not address any correspondence to the
President of India, although such guarantees are
favouring the President of India. The correspon-
dence relating to such guarantees should instead
be addressed to the concerned Government Min-
istry/Departments.
 All rupee loans sanctioned and credit limits
renewed w.e.f. April 1, 2016 will be priced with
reference to the Marginal Cost of Funds based
Lending Rate (MCLR) which will be the internal
benchmark for such purposes. Actual lending
rates will be determined by adding the compo-
nents of spread to the MCLR. Accordingly, there
will be no lending below the MCLR of a particular
maturity for all loans linked to that benchmark.
The actual rates, pertaining to different maturities
under this dispensation will be advised separately.
 Banks are required to carry out their own internal
credit assessment and internal ratings even in re-
spect of rated issues and not rely entirely on the
ratings of External Agencies for investment deci-
sions. Accordingly, CRMD have developed in-
house credit rating models for investment deci-
sion making namely, Risk Assessment Model for
Investments in Non-Banking Finance companies
(RAMIN) and Risk Assessment Model for Invest-
ments by the Treasury (RAMIT).
RAMIN model is applicable for assessment of in-
vestment decision in respect of those NBFCs/HFCs
which are not our borrowers. In case of existing
borrowers, CRA NBFC model is applicable even for
decision making related to investment and RAMIT
model is applicable for assessment of investment
decision in respect of those corporates which are
not our borrowers. In case of existing borrowers,
CRA Regular Non-Trade model is applicable even
for decision making related to investment.
(e.cir.sl.no:1597/2015-16 dt:31/03/2016)
 SBI GENERAL Loan Insurance product is a unique
product with multiple coverages / benefits. The
product provides cover for 13 critical illnesses,
accidental death or permanent disablement and
Page 23
loss of job. For details e.cir.Sl. No. : 900/2014 – 15
dt:28/10/2014 and e.cir.Sl. No. : 1461/2015 – 16
dt:01/03/2016 may be referred.
 LOAN AGAINST MORTGAGE OF IMMOVABLE
PROPERTY (LAP) is detailed in e.cir.sl.no.43/2016-
17 dt:07/04/2016
 Bank has engaged for Repossession and Sale of
Vehicles with TVS Credit Services Ltd as Resolu-
tion Agent. (e.cir.sl.no.67/2016-17 dt:16/04/2016)
 Bank has arrangement for the above purpose with
Shriram Automall India Ltd (SAMIL)also, for sto-
rage and auction of the repossessed vehicles.( e-
Circular No: NBG/PBU/AL-NPAM/51/2015-16
dated 22.01.2016)
 A Standard Operating Procedure (SOP) for
operation of the Currency Chests has been pre-
pared and annexed to this Circular. A copy of the
same is also placed in State Bank Times> Depart-
ment 1> Banking Operations Department.
(e.cir.sl.no.68/2016-17 dt:16/04/2016)
 Electrical Safety Audit is carried out at least once
in a year. Fire Safety And Electrical Audit of
Branches / Offices Standard Operating Procedure
(SOP) For Protection Against Short circuting is de-
tailed in e.cir.sl.no:69/2016-17 dt:16/04/2016.
On a review it has been considered desirable to
undertakerevision/restructuring of SME Centre
(SMEC) with a view to ensure:
i) Better utilisation/productivity of SMECs.
ii) To reduce the large number of rejections by
SMECs.
iii) To provide marketing /sourcing of SME Busi-
ness.
iv) To address RMSE’s handling multiple branches.
v) To provide end-to-end solution for SME cus-
tomers
Upon undertaking restructuring the following are
proposed to be covered:
i) Creation of dedicated Asset Management
Teams.
ii) Budgetary targets to be given for SMECs and in
turn to the AMTs.
iii) Marketing of proposals below Rs. 50.00 Lacs to
be done by AMTs.
iv) Posting officers in SMECs who possess requi-
site credit experience
e.cir.Sl. No. 232/2016 – 17 dt:17/05,2016)
 QUICK SUCCESS SERIES – ADVANCES GENERAL
The name of ‘CREDIT INFORMATION BUREAU (IN-
DIA) LIMITED’, a Credit Information Company, has
since been changed to ‘TRANS UNION CIBIL LI-
MITED’.
Implementation of holding on operations in re-
spect of SMA – Category I & II or Substandard
Accounts which are identified as ‘potentially via-
ble’ would not require any administrative clear-
ance / approval / sanction and would need to be
only reported to the appropriate authority as laid
down. However, in those cases where holding on
operations are proposed as a part of restructuring
package, along with other terms, prior approval of
authority approving the restructuring package will
have to be taken before implementing holding on
operations. Subsequent extensions, if considered
necessary, will also require to be cleared by the
appropriate sanctioning authority in advance.
(e.cir.sl.no. : 827/2016 – 17 DT:27/09/2016)
 Lead Banks Scheme is administered by the Re-
serve Bank of India. Assignment of lead bank re-
sponsibility in every district and State Level Bank-
ers’ Committee responsibility to various Banks is
done by RBI. Our Bank has been assigned
SLBC/UTLBC responsibility in 12 States/UT out of
36 States/UTs and Lead District responsibility in
190 districts out of 673 Districts.
 State Level Banker’s Committee (SLBC): State
Level Bankers’ Committee is an apex inter-
institutional forum to create adequate coordina-
tion machinery in all States, on a uniform basis for
development of the State. Representatives of var-
ious organizations from different sector of the
economy are special invitees in SLBC meetings for
discussing their specific problems. The SLBC meet-
ings are held on quarterly basis.
PERIODICITY FOR SUBMISSION OF IRREGULARITY
REPORT has been reviewed.
Irregularities due to application of interest in
Working Capital accounts: Irregularities in ac-
counts arising solely from application of interest
need not be reported, if the account is regularised
within 30 days from the date of application of in-
terest, irrespective of whether the outstanding
are within the sanctioned limit or not.
Irregularity in Term Loan accounts : Irregularity in
Term Loan on account of application of inter-
Page 24
est/non-payment of installment, but adjusted
within 30 days has been reviewed detailed in
e.cir:629/2016-17 dt:11/08/2016
 The Stand Up India scheme was launched by the
Prime Minister on 05.04.2016.The objective of the
scheme is to create an eco-system for SC, ST and
women entrepreneurs by providing bank loans
over Rs.10 lakh and up to Rs.100 lakh to atleast
one Scheduled Caste (SC) or Scheduled Tribe (ST)
borrower & at least one women borrower per
Bank branch for setting up a Greenfield enterprise
in FY 2016-17.(e.cir:731/2016-17 dt:01/09/2016)
To include SME schemes / products with different
Product codes, a new scheme code (09121) has
now been made available by GITC.
 It has now been decided to merge Rent Plus
Scheme (P-segment) with Loan against Property
Scheme (LAP). The Rent Plus Scheme (P-segment)
will stand withdrawn with immediate ef-
fect.(908/2016-17 dt:13/10/2016)
The following communities have been notified as
minority communities by the Government of In-
dia, Ministry of Minority Affairs:
a) Sikhs b) Muslims c) Christians
d) Zoroastrians e) Buddhists f) Jains
Lending to minority communities forms a part of
weaker sections advances. It should be ensured
that minority communities secure adequate bene-
fits flowing from various Government Sponsored
Schemes in a fair manner.
 In FY2016, Ecosystem Financing (Project Shikhar)
has been started by your Bank to take advantage
of growing e-Commerce footprint in the economy.
 QUICK SUCCESS SERIES, an initiative of SBLC
Deoghar to facilitate the preparation of promo-
tion seeking personnel of our Bank, appears to
Quick have succeeded in its objective to a large extent,
as the readers are still approaching us for its re-
vision/updation despite availability of plenty of
Success other study materials.

Series We would not have been able to sustain this

unique effort of ours, without the active sup-
port and continuous encouragement of our
DGM cum Circle Development officer Sri
Bijayananda Padhi. We are deeply indebted to
him for his co-operation and guidance.

Sri Rakesh Roshan, Chief Manager (Training)

and Sri Kumar Priyank, Chief Manager (Train-
ing), Sri Sanjay Kumar Sharma, Manager (Train-
ing) and Sri Jitendra Kumar Arun Manager
(Training) at this SBLC have owned up this
project and have taken pains to keep it relevant
Cash Department to the users by updating & improving it at half
yearly interval.
System & Procedure
Though every care has been taken while updat-
ing the contents, we request our readers to
point out any lapses at the earliest. Needless to
mention this book is not a substitute of circular
instructions issued by the Bank from time to
time. For detailed guidelines please refer to
Bank’s latest circulars. Soft copy of this edition
is available on our ftp://10.151.51.33 in QSS
folder and on SBI TIMES>PATNA CIRCLE>SBLC
Deoghar site.

Team SBLC Deoghar is humbled by the response

and recognition, it is receiving from the readers
within and beyond the circle. We wish the
readers grand success in their endeavours.

Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895
Fax - 06432-231810
E-mail: agmstc.deoghar@sbi.co.in

 Updated By: Rakesh Roshan

 Chief Manager (Training),
 SBLC Deoghar
 Updated upto
 Mobile- 9162370185
 31sth Octoberer 2016
 Email- r.roshan@sbi.co.in
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016

 CRR
In terms of Section 42(1) of the RBI Act, 1934
the Reserve Bank, having regard to the needs
of securing the monetary stability in the coun-
try, prescribes the CRR for SCBs without any
floor or ceiling rate.
 Demand Liabilities
 Demand Liabilities of a bank are liabilities
which are payable on demand. These include
current deposits, demand liabilities portion
of savings bank deposits, margins held
against letters of credit/guarantees, balances
in overdue fixed deposits, cash certificates
and cumulative/recurring deposits, out-
standing Telegraphic Transfers (TTs), Mail
Transfers (MTs), Demand Drafts (DDs), un-
claimed deposits, credit balances in the Cash
Credit account and deposits held as security
for advances which are payable on demand.
Money at Call and Short Notice from outside
the banking system should be shown against
liability to others.
 Time Liabilities
Time Liabilities of a bank are those which are
payable otherwise than on demand. These in-
clude fixed deposits, cash certificates, cumula-
tive and recurring deposits, time liabilities
portion of savings bank deposits, staff security
deposits, margin held against letters of credit,
if not payable on demand, deposits held as
securities for advances which are not payable
on demand and Gold deposits.
Currency Chest.
It has been decided by RBI vide letter No. DCM
(NPD) No. 2564/ 09.40.02/2015-16 dated
21.01.2016 to allow the Currency Chest holding
banks to enhance the service charges on cash de-
posited by non-chest bank branches from the ex-
isting rate of Rs.2/- per packet of 100 pieces to Rs.
5/- per packet. These instructions come into ef-
fect from February 1, 2016. RBI has also placed
the aforesaid circular on its website
www.rbi.org.in. (e.cir.sl.no:1367/2015-16
dt:08/02/2016)
 Currency chest is the property of :Reserve
Bank of India (RBI).
 Currency chests are intended to facilitate the
distribution, exchange and remittance of
notes, including one rupee notes and rupee
coins and small coins.
 The Department of Currency Manage-
ment (DCM) of the Reserve Bank located at
Central Office(RBI), Mumbai, takes policy de-
cisions on the designs of bank notes, fore-
casts the demand for notes and coins, en-
sures the smooth distribution of bank notes
and coins throughout the country, arranges
to withdraw unfit notes, administers the RBI
Note Refund Rules and reviews/rationalizes
the work system/procedures at the Issue Of-
fice on ongoing basis.
 Currency Chests and Small coin Depots as
at end March 2015/

Category No.of Cur-

 Other Demand and Time Liabilities (ODTL)
rency chest
ODTL include interest accrued on deposits, No.of Small
bills payable, unpaid dividends, suspense ac- coin Depot.
count balances representing amounts due to SBI 2033 1930
other banks or public, net credit balances in SBI Ass.Bank 763 733
branch adjustment account, any amounts due
Nationalised 1162 987
to the banking system which are not in the
Bank
nature of deposits or borrowing. Such liabili-
Priv. Sec.Bank 153 149
ties may arise due to items like collection of
Co-op.Bank 4 4
bills on behalf of other banks, interest due to
Foreign Bank 4 4
other banks and so on. If a bank cannot seg-
RRBs 5 5
regate the liabilities to the banking system,
from the total of ODTL, the entire ODTL may STOs 7 0
be shown against item II (c) 'Other Demand RBI 1 1
and Time Liabilities' of the Return in Form 'A' Total 4132 3813
and average CRR maintained on it.

 2

 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
 Our Bank maintains Currency Chests across
the country on behalf of RBI under Agency
arrangement.
 SBI, it’s Associates as well as other Banks
maintain Currency chests as Agents of Re-
serve Bank of India.
 SBI is a Bailee for the currency chest en-
trusted to it and therefore has to take due
care of the currency notes. However it will
not be liable for the losses arising out of the
acts beyond its control.
 It is the Responsibility of RBI to make
available physical cash to public to meet their
cash requirements. It has its own chest of
cash at a few places. SBI currency chest
branches are entrusted with the custody of
currency notes and coins for the same pur-
pose.
 Notes in Currency chest comprises of
Fresh notes, Issuable notes, Soiled Notes, Mu-
tilated Notes and two half notes.
 One rupee coin form part of Currency Chest
 A General Ledger Account styled CURRENCY
TRANSACTIONS ACCOUNT (CT) is maintained
at the branches (Now in CBS system) having
Currency Chests. Net Deposit will be debited
to this account and Net withdrawals will be
credited to this account.
 The Currency Chest Book is maintained in
duplicate. It contains denominational details
of the notes. The balance in this register
should tally with that in the Vault Register al-
ways. One set of Currency chest book should
always be kept in the Strong room.
 There can be any number of withdrawals
from and deposits into the Currency Chest on
every day, without any ceiling However, the
minimum transaction in Currency chest will
be 100000/- in multiples of 50000/- thereaf-
ter.
 Always use CC Module to post CC transac-
tions in CBS.
 The amount to be withdrawn /deposited
is first entered by Cash Officer in Vault Regis-
ter and then in the Cash Receipt Delivery
book. The Vault Register is to be always held
 3

in the joint custody of Cash Officer and Ac-
countant and kept inside the strong room.
 Accountant and Cash officer should en-
sure that all the CC transactions viz. with-
drawals, deposits and remittances are en-
tered in CBS correctly.
 Balance of BGL 98958 and denomination
wise balance in CBS both should invariably
tally with Vault Register.
 Balance of BGL 98959 and denomination
wise balance in CBS both should invariably
tally with Vault Register of Small Coin Depot.
 Difference between Day’s deposits and
Withdrawals in the chest is known as Curren-
cy Transfer
 When withdrawals are more than depo-
sits in to the chest ‘Currency Transaction
A/c is Credited.
 Currency Transfer figure is to be advised to
Funds Settlement Link Office (FSLO) at LHO
on daily basis. . –NIL- statement has to be
sent if there are no operation in a day. In
case of any delay in reporting of figures
beyond 3 clear days (including transaction
date) or in case of wrong reporting, Reserve
Bank of India will charge penal Interest at the
rate of 2% over applicable Bank rate.
 RBI has imposed huge penalty/ penal inter-
est on several occasions for non adherence
of RBI instructions of currency transaction
reporting, mainly due to either knowledge
gap or casual approach of officials handling
CC operations. The existing instructions have
been reiterated in e-cir:738/2013-14
dt:01/10/2013.
 Currency Chest slip is prepared by Cash
Officer in triplicate, a copy each of which is sent
to FSLO and retaining third copy with the
Branch. The balances in Currency Transactions
account are transferred to FSLO on the last
working day of April & October.
To have better control over the status and
progress of the verifications of Currency Chests
(CC) by different branch/circle functionaries, a
new web based monitoring system “CCONLINE”
has been developed by the Agency Banking De-
partment (ABD) at Corporate Centre. URL of the
new website is
https://abd.statebanktimes.in/cconlinesso/ .The
new website will be accessible through Bank’s
Single Sign On portal, “SBI Passport”. This does
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
not require separate login. The officer would be
required to login in the Windows using Active Di-
rectory credentials. Users accessing the portal are
of three types: branch officials, controlling office
functionaries and other verifying official.
(e.cir.sl.no:34/2016-17 dt:05/04/2016)
Periodicity of Currency chest verification:
Bi-Monthly verification: By the official, not con
nected with the custody of the CC. Report to be
submitted to the controller of the Branch.Half-
Yearly verification: By the official from the Con-
trolling office of the branch.
Report to be submitted to the Controller of the
Branch.
Quarterly verification: By the official from other
branch.Report to be submitted to the Controller
of the Branch.
Quarterly Inspection: By the Chief Manager (Ad-
min) from the Controlling office of the branch.
Report to be submitted to the Controller of the
Branch.
Quarterly inspectionBy the DGM & CFO of Cir-
cle.Report to be submitted to the General Man-
ager,Network of the Branch.
(e.cir.sl.no:34/2016-17 dt:05/04/2016)
 Bank to create partition in the strong
room to segregate non currency items in the ex-
isting chests.(e-cir:1046/2013-14
dt:19/12/2013)
 Two percent of the balances in each
denomination of 100/-, 500/- and 1000/- may
be verified through Note Sorting Machines.
 All notes in the denomination of 100/-
and above received from Hand Balance Branch
by the Currency Chest Branch should proceed
through Note Sorting Machine as prescribed by
RBI for checking their authenticity/ genuineness
and fitness before depositing the same in the
Currency Chest. ( e-cir:151/ 2012-13 dt:
16.05.2012).
 The Branch Cash is the joint responsibil-
ity of the Key holders in the Bank. The Manager
(Cash) is responsible for the effective function-
ing of the Cash Department.
 Branch Cash Officer / Award Cash Offi-
cer (Special Assistant / Senior Assistant in-
charge of cash) is responsible for ensuring genu-
ineness and purity o f gold ornaments
 4

 Insurance for balances in Currency Chests
is not required to be obtained by the Bank in
terms of RBI’s directives. (e-
cir.sl.no:1316/2013 – 14 DT:04/03/2014)
 No entry is to be passed when remittance
is sent from one currency chest to another
currency chest. Only entry has to be made in
the Vault Register and the currency chest
books and indicated in the chest slip.
 Diversion of excess cash to other Currency
Chest (CC) Branches of our Bank should never
be reported as withdrawals in CBS and CCRS
and remitting branch should never raise IBTS
debits against other CC Branch and should re-
port it as remittance in CBS and CCRS.
 RBI imposes penalty of 50,000/- of each
such instances of wrong reporting. This is ir-
respective of amount of withdrawal.
 Currency Chest (CC) branch which is re-
ceiving such remittance from another CC
Branch should also not report it as deposit.
 Penal interest is levied by RBI in respect of
cases of wrong reporting till the date of re-
ceipt of corrected advice by Reserve Bank. (e-
cir:738/2013-14 dt:01/10/2013 & 414/2015-
16 dt:08/07/2015)
 While sending soiled note remittance
(SNR) to RBI, amount of SNR should be
strictly in multiple of 50,000/-. Adjudi-
cated notes should be sent in separate
cover and the total amount of such notes
should be strictly in multiple of 500/-.
Half value notes should not be part of
SNR.
 The half value paid notes and adjudicated
notes, which are held by the chest
branches in their cash balance, may be
sent to RBI either in separate cover along
with SNR or by registered and insured
post as and when required
 Cash officer who enters CC transaction data in
CCRS package and uploads files at RBI’s ICCOMS
website should ensure accuracy of data entry. To
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
ensure the correctness, he should get hard copy
of chest slip generated by CCRS and should match
all the information viz. denomination-wise open-
ing/closing balances, withdrawal/deposit and in-
ward/outward remittance with relevant books.
Closing balance as per chest slip should also tally 
with the balance of BGL 98958. He should not
upload the files without verifying the correctness
of chest slip. Penal interest is levied by RBI in re-
spect of such cases of wrong reporting till the
date of receipt of corrected advice by Reserve
Bank. RBI does not consider any representation
for waiver of penal interest in such cases.(e-
cir:738/2013-14 dt:01/10/2013)
 RBI has advised the cost of remittance/
diversion is to be borne by the cash receiving bank
in the following situation:-
a)When currency chests seek fresh note remit-
tances from Issue Office (i.e. other than fresh
note remittances arranged by Issue Offices on
their own as part of normal programme of period-
ical replenishment of chest balances) / diversion
of re-issuable notes (from chests of the same
bank or chests of other banks or without identify-
ing remitting chests) exclusively, or predominantly
in denominations normally used in ATMs (i.e.
higher denomination banknotes for ATM related
needs).
b) When diversion is sought, irrespective of de-
nomination, among the chests of the same bank
to facilitate the bank’s cash management and
when remittance / diversion is arranged by the
Regional Office of RBI from one surplus chest of
the bank, maintaining surplus position conti-
nuously, to another chests of the same bank. In
case of diversion/ remittance is necessitated spe-
cifically by the demand for funds by Government
Departments or on account of natural calamities
etc, the Reserve Bank will bear the cost. (e-
cir:1047/2013-14 dt:19/12/2013)
 In case counterfeit banknotes are found in remit-
tances from currency chests, entire amount equal
to the value of counterfeit banknotes will be de-
bited to the bank’s current account and penal in-
terest @ Bank rate + 2% will be levied on the
amount of counterfeit banknotes from the date of
previous remittances to RBI. FIRs will also be
lodged with the police in all cases of detection of
counterfeit banknotes in chest remittances.
 In a soiled note remittance to RBI if more
than 5% of notes are found to be issuable
 5

notes, then the entire remittance will be re-
turned to the bank at its cost besides debiting
the amount of remittance to the account of
the bank maintained with the Reserve Bank of
India
Repository is part of Currency Chest.
 Strong Room Fitness Certificate is ob-
tained every year and displayed in the Strong
room
 Under guarantee bond system, only
currency notes below the denomination of Rs
100/-(₹. 100/- not included) can be accepted
 Under Guarantee bond system, remittance can be
accepted from all scheduled Banks and Co-
operative Banks.
 Remittances accepted under Guarantee Bond
System is entered in -Unexamined Remittances
Register.

The Department receives notes from four curren-
cy note printing presses. Two of the currency note
printing presses are owned by the Government of
India and two are owned by the Reserve Bank,
through its wholly owned subsidiary, the Bhara-
tiya Reserve Bank Note Mudran Ltd. (BRBNML).
The government owned presses are at Nasik
(Western India) and Dewas (Central India). The
other two presses are at Mysore (Southern India)
and Salboni (Eastern India). Coins are minted in
four mints owned by the Government of India.
The mints are located at Mumbai, Hyderabad,
Calcutta and NOIDA.
 India is the largest producer and con-
sumer of currency notes, next only to China. Cur-
rency continues to be the dominant means of
payment with the banknotes in circulation (in
value terms) placed at ₹14.3 trillion as of end
March 2015.
 Detection of Counterfeit Notes
 The procedure for detection of counterfeit notes
has been reviewed in consultation with the Gov-
ernment and it has been observed that certain
modifications are required for bringing improve-
ment in reporting of counterfeit notes and facili-
tating maintenance of records by banks.
Detection
i. Over the Counter
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Banknotes tendered over the counter should be
examined for authenticity through machines and
such of these determined as a counterfeit one,
shall be stamped as "COUNTERFEIT NOTE" and
impounded. Each such impounded note shall be
recorded under authentication, in a separate reg-
ister.
ii. Bulk Receipts at Back Office / Currency Chest
Procedure as banknotes tendered over the coun-
ter to be followed where notes are received di-
rectly at the back office / currency chest through
bulk tenders.
When a banknote tendered at the counter of a
bank branch or treasury is found to be counter-
feit, an acknowledgement receipt must be issued
to the tenderer, after stamping the note as
"COUNTERFEIT NOTE". The receipt, in running
serial numbers, should be authenticated by the
cashier and tenderer. Notice to this effect should
be displayed prominently at the offices / branches
for information of the public. The receipt is to be
issued even in cases where the tenderer is unwil-
ling to countersign it.
 No credit to customer’s account is to be
given for counterfeit notes, if any, in the
tender received over the counter or at the
back-office / currency chest.
 The instructions on compensation to
banks at 25% of the notional value of
counterfeit notes detected and reported
and the system of lodging claims for com-
pensation by Forged Note Vigilance Cell of
banks stand withdrawn.
 Penalty at 100% of the notional value of
counterfeit notes, in addition to the re-
covery of loss to the extent of the notion-
al value of such notes, will be imposed
under the following circumstances:
a) When counterfeit notes are detected in the
soiled note remittance of the bank.
b) If counterfeit notes are detected in the curren-
cy chest balance of a bank during Inspection / Au-
dit by RBI.
 All other instructions relating to examina-
tion of notes before issuance over the
counter, top up of ATMs, reporting to po-
lice and other authorities, infrastructure
etc. to enable detection as well as liaison
with the authorities, remain unchanged
 6

 The counterfeit banknotes can be im-
pounded by:-
 All branches of public sector banks
 All branches of private sector banks &foreign
banks
 All branches of co-operative banks & regional
rural banks
 All Treasuries and Sub-Treasuries
 All RBI Issue Offices.
 Each banknote, which is suspected to be
counter- feit or is found to be counterfeit, shall be
branded with a stamp
COUNTERFEIT BANKNOTE IMPOUNDED
BANK / TREASURY/ SUB-TREASURY
BRANCH
SIGNATURE
DATE
Size of Stamp should be 5 cm X 5 cm
(e.cir 716/2015-16 dt:04/09/2015)
The notes identified as counterfeit should be kept
separately with proper impounding stamp as per
the format. Details of each impounded note
should be recorded under authentication in a
separate register.
 In no case, the counterfeit notes should be
returned to the tenderer or destroyed by the
bank branches / treasuries. Failure of the
banks to impound counterfeit notes detected
at their end will be construed as willful in-
volvement of the bank concerned, in circulat-
ing counterfeit notes and penalty will be im-
posed for violation of Directive No.
3158/09.39.00 (Policy)/2009-10 dated No-
vember 19, 2009 issued by the Reserve Bank
 For cases of detection of counterfeit notes up
to 4 pieces, in a single transaction, a consoli-
dated report should be sent by the Nodal
Bank Officer to the police authorities or the
Nodal Police Station, along with the suspect
counterfeit notes, at the end of the month.
 For cases of detection of counterfeit notes of 5 or
more pieces, in a single transaction, the counter-
feit notes should be forwarded by the Nodal Bank
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
Officer to the local police authorities or the Nodal
Police Station for investigation by filing FIR.
 Each bank should designate Nodal Bank Officer,
district-wise and notify the same to the concerned
Regional Office of RBI and Police Authorities. All
cases of reporting of counterfeit note should be
through the Nodal Bank Officer. The Nodal Bank
Officer will also serve as the contact point for all
counterfeit note detection related activities.
Individual reporting of all instances of detection of
Counterfeit Currency Notes to the Chief General
Manager (BO), Banking Operations Department,
Mumbai, for it’s reporting to the FIU-IND through
CCR under the provisions of the PML Act 2002,
has to be ensured.
(e-cir:1331/2015-16 dt: 30/01/2016)
 A copy of the monthly consolidated report / FIR
shall be sent to the Forged Note Vigilance Cell
constituted at the Head Office of the bank(only in
the case of banks), and in the case of the treasury,
it should be sent to the Issue Office of the Reserve
Bank concerned.
 Acknowledgement of the police authorities
concerned has to be obtained for note/s for-
warded to them both as consolidated monthly
statement and FIR. If the counterfeit notes are
sent to the police by insured post, acknowledge-
ment of receipt thereof by the police should be
invariably obtained and kept on record. A proper
follow-up of receipt of acknowledgement from
the police authorities is necessary. In case, any
difficulty is faced by the Offices / Branches due to
reluctance of the police to receive monthly conso-
lidate statement / file FIRs, the matter may be
sorted out in consultation with the Nodal Officer
of the police authority designated to coordinate
matters relating to investigation of counterfeit
banknotes cases. The list of Nodal Police Station
may be obtained from the respective Regional
Office of Reserve Bank.
 The progress made by banks in detection and
reporting of counterfeit notes to Police, RBI, etc.
and problems thereof, should be discussed regu-
larly in the meetings of various State Level Com-
mittees viz. State Level Bankers’ Committee
(SLBC), Standing Committee on Currency Man-
 7

agement (SCCM), State Level Security Committee
(SLSC), etc.
The data on detection of counterfeit Indian notes
at bank branches & treasuries should be included
in the monthly Returns forwarded to the Reserve
Bank Issue Offices.
The definition of 'counterfeiting' in the Indian
Penal Code covers currency notes issued by a for-
eign government authority as well. In case of sus-
pected foreign currency note received for opinion
from the police and government agencies, etc.,
they should be advised to forward the case to the
Interpol Wing of the CBI, New Delhi after prior
consultation with them.
Disbursement of counterfeit banknotes through
the ATMs would be treated as an attempt to cir-
culate the counterfeit banknotes by the bank con-
cerned.
To facilitate the detection of counterfeit bank-
notes, all bank branches/ treasuries may be
equipped with ultra-violet lamps. All currency
chest branches should be equipped with verifica-
tion, processing and sorting machines.
In case of suspected foreign currency notes re-
ceived for opinion from Police / Government etc.,
the sender may be advised to forward the same
to Interpol wing of CBI.
 Printing & Circulation of forged Indian
currency notes is an offence u/s 489A, 489B,
489C, 489d & 489E of the Indian Penal Code.
 All Counterfeit Notes received back from
the police authorities/courts may be carefully
preserved in the safe custody of the bank and a
record thereof be maintained by the branch con-
cerned.
 These Counterfeit Notes at branches
should be subjected to verification on a half-
yearly basis (on 31st March and 30th September)
by the Officer-in- Charge of the branch concerned.
 These should be preserved for a period of
three years from the date of receipt from the po-
lice authorities. The Counterfeit Notes may the-
reafter be sent to the concerned Issue Office of
Reserve Bank of India with full details.
 The Counterfeit Notes, which are the sub-
ject matter of litigation in the court of law should
be preserved with the branch concerned for three
years after conclusion of the court case. (e-
cir:332/2010-11 dt: 13/08/2010)
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 RBI has advised that under the present
system of mechanized processing of Bank notes,
inscription or scribbling on any part of the Bank
notes would render it to be classified as unfit for
re-issue. Accordingly, such bank notes get treated
as soiled bank notes and cannot be re-circulated.
The customers/ general public should also be
educated suitably in the matter by displaying in
notice board in local language (e-cir:1074/2013-
14 dt:24/12/2013)
 Mutilated Notes – Presentation and
Passing
A Mutilated note is a note of which a portion is
missing or which is composed of more than two
pieces. Mutilated notes may be presented at any
of the bank branches. The notes so presented
shall be accepted, exchanged and adjudicated in
accordance with Reserve Bank of India (Note Re-
fund) Rules 2009.
 Adjudication of MUTILATED NOTE :
 (Re.1 to Rs.20 denominations)
 Rule :8.1(i) – If the Single largest undi-
vided piece of the note is more than 50%
of the note – PAY FULL VALUE.
 Rule: 8.1(ii) – If the single largest undi-
vided piece of the note is equal to or less
than 50% of the note – NO VALUE (RE-
JECT)
 RULE :8.2 – Applicable for Rs.50 to
Rs.1000 denominations
 Rule: 8.2(i) – If the single largest undi-
vided piece of the note is more than 65%
of the note – PAY FULL VALUE
 Rule: 8.2(ii) – If the single largest undi-
vided piece of the note is equal to or
more than 40% and less than or equal to
65% of the area of the respective deno-
mination rounded off to the next com-
plete square centimeter - PAY HALF VAL-
UE
 Rule: 8.2(iii) – Applicable for Rs.50 to
1000 denominations.
If the single largest undivided piece of the
note is less than 40% - NO VALUE (RE-
JECT)
 Rule: 8.2(iv) – Applicable for Rs.50 to
Rs.1000 denominations. If a note is com-
posed of TWO PIECES of the same note
 8

and the two pieces, individually, have an
area equal to or more than 40% of the to-
tal area of the note in that denomination,
then the claim may be paid for full value
and need not be treated as consisting of
two tenders for half value.
 RULE : 9 – MIS-MATCHED NOTE: A muti-
lated note which has been formed by join-
ing a half note of any one note to a half of
the other note. The payment of claim in
respect of mismatched note may be dealt
with as follows:
 (a)In case of notes up to Rupees twenty
denomination notes, the area of the larg-
er of the two pieces presented may be
measured and adjudicated as per the pro-
visions of sub-rule (1) of Rule 8, ignoring
the smaller half.
 (b)If none of the two pieces presented
meets the minimum area stipulated as
per provisions of clause (i) of sub-rule 8,
the claim shall be rejected.
 (c)In case of rupees fifty and above de-
nomination, the two pieces may be
treated as two separate claims and deal
with it accordingly.
A ‘soiled note’ means a note which has become
dirty due to normal wear and tear and also in-
cludes a two piece note pasted together wherein
both the pieces presented belong to the same
note and form the entire note with no essential
feature missing.
Explanation:- Vertical / horizontal / diagonal cut
including a full cut on the NUMBER PANEL may
be treated as soiled note.
These notes should be accepted over bank coun-
ters in payment of Government dues and for cre-
dit to accounts of the public maintained with
banks. However, in no case, these notes should be
issued to the public as re-issuable notes and shall
be deposited in currency chests for onward
transmission to RBI offices as soiled note remit-
tances for further processing.
IMPERFECT NOTE Any note, which is wholly or
partially obliterated, shrunk, washed, altered or
indecipherable but does not include a MUTILATED
NOTE. Explanation:- This rule refers to notes
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Cash Department System & Procedure
Updated upto 31st October 2016
which are ENTIRE (i.e. not mutilated) but are
wholly or partially obliterated. The guiding prin-
ciple is that the notes should be established as
being genuine Indian Currency Notes. The value of
an imperfect note may be paid for full/half-value
if the following two conditions are satisfied:
(a)The matter which is printed on the note has
not become totally illegible, and
(b)The prescribed officer is satisfied, having re-
gard to the printed matter which is legible on the
note, that it is a genuine note.
 Extremely brittle, burnt, charred, stuck
up Notes
Notes which have turned extremely brittle or are
badly burnt, charred or inseparably stuck up to-
gether and, therefore, cannot withstand normal
handling, shall not be accepted by the bank
branches for exchange. Instead, the holders may
be advised to tender these notes to the con-
cerned Issue Office where they will be adjudicated
under a Special Procedure.
 Any note with slogans and message of a political
nature written across it ceases to be a legal ten-
der and the claim on such a note will be rejected
under Rule 6(3) (iii) of Reserve Bank of India (Note
Refund) Rules, 2009. Similarly, notes which are
disfigured may also be rejected under Rule 6(3) (ii)
of Reserve Bank of India (Note Refund) Rules,
2009
 All branches of banks in all parts of the
country should provide the customer ser-
vices for this purpose:
(i) Issuing fresh / good quality notes and coins of
all denominations on demand,
(ii) Exchanging soiled / mutilated / defective
notes, and
(iii) Accepting coins and notes either for transac-
tions or exchange.
 All branches should provide the above fa-
cilities to members of public without any
discrimination on all working days
Small Coin Depot
 Small Coin Depot is the property of Gov-
ernment of India.
 Small Coin depot contains- Coins of denomination
of 50 paise & below.
 9

 The minimum transactions from/to Small coin
depot will be of.100/- and in multiples of ₹.50/-
 At the end of the day, the net of deposits and
withdrawals in respect of Small coin depot will be
transferred to the Link Branch.
 Small Coin Depot transactions are reported to
FSLO
 The coins of denomination of 25 paise and below,
issued from time to time, ceased to be legal ten-
der for payments as well as account with effect
from June 30, 2011 in terms of Gazette Notifica-
tion No.2529 dated december 20, 2010 issued by
the Government of India. All such coins should be
retained in the Small Coin Depots (SCDs) of the
bank till further advise from Reserve Bank of In-
dia.
 For the purpose of Cash Retention Limit, our
branches are divided into two broad categories-
(i) Hand Balance Branches and (ii) Currency Chest
Branches.
Hand Balance/Non Currency Chest Branches
 Cash held by our Non currency Chest
Branches in their safe room is the property of
State Bank of India
 Transfer Pricing on Cash Balances at the
branches at Savings Bank deposits rate (at present
@ 4%)
 Cash held at Non-currency chest branches
has a carrying cost, so branches have to pay inter-
est on cash balance to Corporate Centre under
transfer pricing mechanism. So minimum required
cash to be retained
 Each branch is fixed a retention limit
 The provision of fixing of limit of cash
retention was derived as per the provisions of the
Banking Regulation Act, 1949
 Cash Retention Limit of branches linked to
CACs will be determined by the respective con-
trollers, keeping in view cash requirement for
ATMs and for starting next day’s functioning of
the branch .
 Cash retention limit of branches as on
31st December is required to be reviewed annu-
ally in the month of January so that the required
data are made available to BPMM department,
LHO Mumbai in the month of February for obtain-
ing insurance on centralised basis w.e.f. 1st April
every year.
 Review of Cash Retention Limit, whether
to increase/ decrease or maintain the same level
 Quick success series
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will be done by the Controller of the branch, i.e.,
Regional Manager
 Based on such review, the cash retention
limit of the branch is renewed/ revised. This
should be reported to the Local Head Office,
which arranges for renewing/ revising the insur-
ance cover.
 Any enhancement in cash retention limit
of branches having cash retention limit of ₹.10 lac 
and above will be approved by the DGM (B&O).
(This was vested with GM (Network) until the res-
toration of the position of DGM of Modules.)
 DGM (B&O) will put up review Note of the
Cash Retention Limit of all branches under his
Administrative Office to the Network GM through
BOPM (NW) Department for approval, in the
month of January each year.
 Provision of insurance of cash and other
valuables at branches as well as balances in
ATMs centralised at Mumbai LHO. Circles are
required to provide their cash insurance re-
quirement to Mumbai LHO’s BPMM department
in the month of February every year and, there-
after, Mumbai LHO will arrange for obtaining in-
surance policies, duly approved by the Group
Head (NB).
 There are four types of population-based
branch categorisation in State Bank of India.
These are Metro, Urban, Semi-urban and Rural.
 Normally, cash retention limit of a rural
branch is fixed up to ₹.10 lacs depending upon
the business requirement. Retention limit of
Semi urban branches is usually between ₹.10
lacs to ₹.20 lacs and for Urban and Metro
branches ₹.20 lac and above, depending upon
their business requirement.
 Branches with Cash Retention Limit up
to ₹.10 lac will be categorised as “Small”
Branches. The Cash Retention Limit of such
“Small” Branches will not be allowed to be
raised beyond ₹.10 lac, except with the permis-
sion of DGM (B&O). The DGM (B&O) will con-
sider the security aspect of the branch before
according approval.
 Transit insurance for cash remittances
between branches/between CAC and branches
 10

is being obtained by the respective LHO based
on the information received from the respective
branches through email/fax. Branch Managers
of branches are responsible for sending the re-
quired information to BPMM deptt. LHO di-
rectly, under advice to respective controllers
through fax/emails.
It is proposed to obtain cash-in-transit insurance
along with Insurance of Cash and other valu-
ables simultaneously on centralised basis at
Mumbai LHO (BPMM Deptt).
 Cash-in transit insurance will be limited to the
cash retention limit of the branch In case of re-
mittance from the currency chest to the link
branch, the remittance will be restricted to the
cash retention limit of the receiving branch. This
transit insurance will be covered for any num-
ber of remittances to and from the remitting
branches.
 Cash given to outsourcing agencies (e.g.
for loading cash in ATMs) is not covered under
this insurance cover, as the outsourced agents
themselves arrange for insurance of cash in
transit at their end.
 Under no circumstances the branches
will be allowed to move in one trip more than
their retention limit, i.e. insured amount. (e-
cir.sl.no:1316/2013-14 dt:04/03/2014.
 In State Bank of India, in addition to
cash, branches hold considerable amount of
gold which is pledged to them on account of
sanctioning of gold loans.
 A Gold Retention Policy has been for-
mulated to mitigate the risk involved, by taking
into consideration the following points:-
 Fixing of the amount of gold Retention
Limit at Rural / Semi-Urban / Urban and
Metro branches, which will be linked to
total Cash & Valuables Retention Limits of
branches.
 Security norms needed for such branches.
 Insurance coverage.
 Storage requirements and feasibility of
separate safe for safe keeping of the gold
ornaments at branches.
 While fixing the cash retention limit of a branch,
controller will also take a view on its gold reten-
tion limit which will be approved by the Net-
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work General Manager. The proposal for fixing
of gold retention limit of individual branches
will be put up by the concerned DGM (B&O) to
the General Manager through BOPM depart-
ment of the Network.
 Controllers will review simultaneously Cash
Retention Limit and Gold Retention Limit of
branches annually in the month of January so
that the required data are made available to the
BPMM Department, LHO Mumbai for obtaining
insurance on centralised basis w.e.f 1st April
every year. The review will indicate any upward
revision/ downward revision/ retaining the
same limit.
 The risk classification and norms for posting of
guards as per marks obtained in risk matrix are
as under:-
70 or more marks:High Risk: 2 Guards
50 to 69 marks: Normal Risk: 1 Guard
Below 50 marks:Low Risk: No Guard
 Insurance for gold held as per Gold Reten-
tion Limit at branches will be taken on a cen-
tralized basis through Mumbai LHO w.e.f. 1st
April along with cash as per Cash Retention
Limit held at branches as on 31st March, each
year based on the data / information pro-
vided by Circles.
 Although the data on gold loans sanc-
tioned at branches is dynamic and subject to
change every day, insurance will be obtained
for the retention limit amount. The market
value of gold also fluctuates widely, which
needs to be considered at prevailing conver-
sion rate, at the time of obtaining insurance
cover.
 Storage of gold will invariably be done in FBR
safes, when there is no strong room in the
branch. Such FBR safes, when not placed in
proper RCC strong room, should be embed-
ded by RCC 6” in thickness on all 5 sides with
a minimum RCC base of 12” height.
 Gold ornaments must be placed under
double lock of the Branch Manager / Accoun-
tant and the Cash Officer.
 11

 Ornaments relating to each loan should be
held in a separate bag marked with the loan
account number and the name of the bor-
rower. A slip showing the particulars of or-
naments viz. number, weight etc. duly signed
by joint custodians should also be placed in-
side the bag. At branches where loans are
numerous, it would be advisable to hang the
bags in numerical order of accounts on ‘S’
shaped hooks suspended from horizontal
bars fitted inside the safes/ cupboards stored
in the strong room.
 The policy will be reviewed once in 3 years or
as and when required
General Instructions
 Security Officers at LHOs/AOs are re-
quired to visit all branches once in six months
to review the security arrangements as per
guidelines issued by the Security Department
at Corporate Centre.
 The Controller of the branches will ar-
range for periodical cash verification of Hand
Balance Branches at half yearly interval by
the Branch Managers of nearby branches
and submit his report on consolidated basis
to DGM (B&O) for review.
 Single window operators are covered un-
der Fidelity insurance cover.
 When excess note is found in the
branch/cash deptt. it is credited to Sundry
Deposit account.
 The person preparing the Note packets
for denomination below Rs 500/- (i.e. upto
100/-) is responsible for Both quality and
quantity
 In respect of the packets of notes of de-
nominations of Rs 500 and above, Asstt
(Cash) counting the note packets will be re-
sponsible for Quality & Cash-in Charge re-
counting the note packet will be responsible
for the Quantity of pieces
 Recounting is not required for denomina-
tions upto 100
 In respect of tampered bundles / note
packets in the vault the Joint Custodian will
be responsible
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
 CIC/Senior Assistant/Special Assis-
tant/SWO etc who prepare the soiled notes
bundles for remittance to RBI are / is respon-
sible for both Quality & Quantity of notes in
the bundle
 Cash shortage when not made good by
the employee concerned on the day of short-
age is debited to Recalled Asset A/c (Sus-
pense A/c in Feb-Mar)
 Colour of vertical polymer band printed
with SBI name and logo shall be Pink for
notes up to denomination of Rs 20/- whereas
for other denomination up to Rs 1000/- the
colour specified is White
 Size of adhesive paper seal having SBI
name & logo printed on it shall be of 185 X
25 mm size
 Ceiling for petty cash expense is Rs 50/-
 Petty Cash is checked by BM on any day
of the Month
In-Branch Cash Handling Procedure
 Day to day handling of cash and Reconcil-
iation of cash errors detailed guidelines and
menu navigation in CBS is enclosed with the
e-cir.no:661/2012-13 dt:05/10/2012
 In- Branch Cash Handling Process has
been introduced for All Branches (Currency
Chest as well as Hand Balance Branches)
 Verification of the contents of cash boxes
of SWOs by the Cash-in-Charge on the basis
of system generated random list is carried
out-At the end of day on any day.
 Overnight cash retention limit allotted to
the SWO / Assistant (Cash) in the system for
keeping cash in a aluminium box is 1.00 lac
 Size of the aluminium box should be
14”X11”X 4” size
 Duplicate Key of SWO/Asstt (Cash) in re-
spect of his/her cash box is used if
 He/she remains on leave without
prior approval
 He/she goes on sick leave without
handing over cash and his/her absence
is indeterminable
 Any other unforeseen and emer-
gent situation
 The benefits accrued from revised cash
handling process are as under:
 12

 There will be no delay in starting custom-
er transactions at the beginning of the day.
 The process will reduce the time spent by
the Cash Officer/Cashier-in-
charge/SWO/Assistant (Cash) in handing over
and receiving cash at the beginning/close of
the day
 Various Registers to be main-
tained/discontinued In cash section are as
per e- circular no: 1044/2012-13
dt:29/02/2012. Head cashier’s jotting book
register (discontinued), Intraday cash verifi-
cation register (to be main-
tained),Excess/short cash register( to be
maintained), Petty cash register (to be main-
tained),ATM Cash replenishment register (to
be maintained),Excess/short cash in ATM
register (to be maintained),Branch cash bal-
ance book(to be maintained),ATM
cash/physical cash balance register (to be
maintained),Cash receipt/delivery register (to
be maintained).
Branch Key Register
 Standard key register is maintained to record all
important keys of the branch.
 In case of temporary Charge Handover, Key
register to be maintained.
 All important duplicate keys to be lodged in
another branch in safe custody.
 During withdrawal of duplicate key, they should
be operated & checked.
 All withdrawals of duplicate keys to be recorded
in a portion of the key register
 Withdrawals / Deposits of duplicate keys are to
be promptly advised to the controller
 In all cases duplicate keys withdrawn are to be
re-deposited on the same day
 Safe deposit receipts relating to the deposit of
duplicate keys is entered in BD register and the
safe deposit receipt is held by the BM in his safe
outside the strong room
MISCELLANEOUS
 CSPPC: Central Staff Pension Processing
Centre.
BCP Plan in case of newly opened
branches/units/offices should be drawn and ap-
proved within 15 days from the date of opening.
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
The existing BCP Plans are now required to be re-
viewed and approved as on 30th June every year.
 The following five variants of SME POWER CUR-
RENT ACCOUNTS have been discontinued from
01/06/2014: (e.cir:210/2014 – 15 Dt:30/05/2014)
Power Premium – (5096-2411)
Power Privilege - (5096 -2421)
Power Advantage – (5096 -2431)
Power Super - (5095 -2411)
Power Lite - (5095 -2421)
The existing accounts opened under these five
variants would continue. They would also be al-
lowed to convert their accounts to Power Pack
and Power Gain variants. (e.cir:379/2014-15
dt:12/07/2014)
 At present, the maximum limit for non-home GRC
cash deposits at the Branch is ₹.25,000/- per day
(monthly transaction limit per remitter from Rs
1,00,000/-).and the inter-core charges are recov-
ered @ ₹. 50/- per transaction. These charges are
being recovered from the beneficiary’s account. It
has now been decided to levy inter-core charges
on GRC transactions at CDMs as well.
(E.cir:241/2014 – 15 Dt:07/06/2014)
 Around 25% of GRC transactions are being routed
through CDMs / Recyclers.
 Revised Non-home transactions charges at CDMs
(GRC only) are flat ₹. 25/- per transaction applica-
ble from 21st May 2016.(e.cir:290/2015 – 16
Dt:31/05/2016)
 Owing to centralization of ATM complaints at
GITC, Bank has decided to withdraw all discre-
tionary powers of branches for resolution of cus-
tomer complaints for unsuccessful transactions.
 (Discretionary powers to settle the disputed ATM
transactions by paying up to ₹. 15,000/- with cus-
tomer transaction slip showing unsuccessful
transaction and ₹. 5,000/- without transaction
slip-SINCE WITHDRAWN) (E.cir:839/2014 – 15
Dt:14 /10/2014)
 Cash withdrawals and deposits for ₹.10.00 lacs
and above in deposit, cash credit and overdraft
accounts to be recorded in a separate register and
reported to controlling office every month.
(E.cir:840/2014 – 15 Dt:14 /10/2014)
 13

 Liberalised Remittance Scheme (LRS) for
resident individuals-Increase in the limit
from USD 75,000 to USD 125,000 per fi-
nancial year (April-March) (E.cir:252/2014
– 15 Dt:09/06/2014)
 Any person resident in India may take
outside India (other than to Nepal and
Bhutan) currency notes of Government of
India and Reserve Bank of India notes up
to an amount not exceeding ₹.25,000
(Rupees twenty five thousand only); and )
who had gone out of India on a temporary
visit, may bring into India at the time of
his return from any place outside India
(other than from Nepal and Bhutan), cur-
rency notes of Government of India and
Reserve Bank of India notes up to an
amount not exceeding ₹.25,000 (Rupees
twenty five thousand only).
(E.cir:392/2014 – 15 Dt:15/07/2014)
 Any person resident outside India, not be-
ing a citizen of Pakistan and Bangladesh
and also not a traveller coming from and
going to Pakistan and Bangladesh, and vis-
iting India may take outside India cur-
rency notes of Government of India and
Reserve Bank of India notes up to an
amount not exceeding ₹. 25,000 (Rupees
twenty five thousand only) while exiting
only through an airport. may bring into
India currency notes of Government of
India and Reserve Bank of India notes up
to an amount not exceeding ₹. 25,000
(Rupees twenty five thousand only) while
entering only through an airport.
(E.cir:392/2014 – 15 Dt:15/07/2014)
 One Rupee coin is issued under Coinage
Act 1906
 Currency Notes are printed at Nasik, De-
was, Mysore & Salboni.
 RBI has decided to adopt the STAR series
numbering system replacement of defec-
tive printed banknotes. To begin with
STAR series banknotes will be issued in Rs
10, Rs 20 and Rs 50 denomination in Ma-
hatma Gandhi series
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
 Clean Note Policy has been issued under
Section 35A of Banking Regulation Act.
 Penalty for violating Clean Note Policy is
Rs 5 lakh fine or cancellation of chest
 With a view to ensuring availability of
adequate and genuine notes to the public,
banks must use modern technology and secu-
rity system for stocking, processing and distri-
bution. Every bank must appoint a Nodal Of-
ficer for Currency Management. He/She will
be accountable to RBI. He/ She should be at
least of General Manager (GM) cadre.
 OPTICASH means Cash Management in
ATM by NCR/Diebold
CASH PICK UP FACILITY- CONCESSION IN SERVICE
CHARGES:
 Circle CGM and GM (Network) can waive up to
50% and 25% of cash handling charges respec-
tively. No discretion to waive cash handling
charges by the DGM (B&O).
Existing instruction of “No cash handling charges
(₹. 2/-per thousand)to be levied for Power Pack
and Power Premium accounts for cash pick up
facility up to ₹. 2 lacs per day.” has since been
modified as “To levy cash handling charges at 40
% of the card rate on Power Pack & Power Pre-
mium accounts.” (e-cir:1392/2013-14
dt:24/03/2014)
 Any remittance of funds by way of Demand
Draft/IOI, Bankers' Cheque, Mail/ Telegraphic
Transfer/ NEFT/RTGS or any other mode and issue
of Travellers’ Cheques for value of Rupees fifty
thousand and above is effected by debit to the
customer’s account or against cheques and not
against cash, even if the applicant submit his PAN
details or Form No.60/61.
 Cash Management Product Centre (CMP) is han-
dling dividend warrant (DW) payments of Corpo-
rate Clients. These DW accounts are pre-funded
by the corporate and the warrants are payable at
par at all Branches of the Bank. Wrongful disho-
nor of divided warrants causes severe embar-
rassment to the top management of the Company
as well as the Bank. Since dividend payment is a
statutory obligation of the Corporate, dishonoring
of DWs may entail imposition of penalty by the
Regulator (SEBI), apart from humiliation of the
Corporate. It also tarnishes the Bank’s image, re-
 14

sulting in loss of business and exposing the Bank
to avoidable pecuniary liability. dividend warrants
(DWs) should not be dishonored for the wrong
reasons. Further, before returning any DW,
Branches/CCPCs should contact the Dividend
Payment Team at CMP Centre on the following
telephone numbers/ e-mails:
Telephone No.- 022-26814810, 26814818,
26814819 and 26814891.
e-mail- dw.cmp@sbi.co.in
State Bank of India, along with its Associate Banks
has one of the largest ATM networks in the world
with more than 59000 ATMs including Kiosks,
Cash Deposit Machines and Recyclers as on
31.3.2016.
 Bank has installed Cash Acceptor Machines/ Cash
Deposit Machines (CDMs) at select branches to
facilitate customers to deposit their cash as per
their convenience the facility of availing services
of alternate channel of Cash Deposit Machines
(CDMs) is optional for customers and any custom-
er who wishes to deposit cash at the counter
should not be forced to deposit their cash at
CDMs.
More than 6,000 SWAYAMs (Barcode based Pass-
book Printing Kiosks) at its branches and on-
site/offsite lobbies. Using these kiosks, customers
can print their passbooks on their own using bar-
code technology.
 In case, the CDM machine detects any
suspect/counterfeit note, the same is
stored in a separate bin. Credit for these
notes is not afforded to the customer at
the time of deposits. The joint custodians
will verify the genuineness of these notes
in the branches.
Our CDMs are capable of accepting up to 200
notes per transaction i.e. Rs. 2 lac per transaction
if a customer deposits Rs. 1000 denomination
notes. However, our CDMs have a per transaction
limit of Rs. 49,900/-. In order to further decongest
the branches, it has been decided to increase the
cash deposit limit to Rs. 2 lac per transactions
However, the present per transaction limit of
Rs.49,900/- in Cardless/Debit Card (third party
account) and Rs.25,000/- in GRC linked accounts
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
will remain unchanged.(e.cir.sl.no:706/2016-17
dt:30/08/2016)
At present, our CDMs/Recyclers accepts deposits
only in Savings and Current Accounts. It has been
decided to extend the facility of cash deposits in
Loan, PPF and Recurring Deposit accounts also
through CDMs/Recyclers. e.cir.sl.no:707/2016-17
dt:30/08/2016)
In case the notes are found to be counterfeit,
branches are advised to meticulously follow the
instructions issued by RBI on Detection and im-
pounding of counterfeit notes from time to
time.(Details available under e.cir. sl. No. :
174/2015 – 16 dtd. May 12,2015).
A new category of Post called “Customer Assis-
tant” since redsignated as Associate (Customer
Support & Sales) in between the Assistant and
Senior Assistant positions has been introduced.
(e-cir:507/2013-14 dt:17/08/2013)
 CLERICAL CADRE EMPLOYEES have been
re-designated. (e.cir.sl.no:498/2015-16
dt:22/07/2015)
 As of now transactions undertaken by a
teller of capability 7 and above are not
subjected to maker-checker concept and
are thus fraught with risk. Functionality in
CBS to production on 08.06.2013 has
been made and now all debit transactions
posted by any teller beyond the institu-
tion level threshold (current limit set at ₹
5.00 lac) will go to checker for authoriza-
tion irrespective of the capability level of
the maker. (e-cir:610/2013-14
dt:06/09/2013)
 RBI has advised the Bank to introduce
Shrink Wrapping of soiled note bundles to
avoid incidents of shortages at Currency
Chests in the soiled note remittance and
also pilferages during transit. (e-
cir:887/2013-14 dt:01/11/2013)
 The Reserve Bank of India (RBI) permitted
cash withdrawal at Point of Sale (POS)
terminals using Debit and Prepaid Cards
at different merchant establishments. The
amount that can be withdrawn at POS
terminals is Min. ₹100 to ₹1000/- in mul-
tiples of ₹100/-per card per day (e-
cir:897/2013-14 dt:07/11/2013)
 15

 The Government has notified ˜Printing of
One Rupee Currency Notes Rules, 2015,
which will come into effect from January
1, 2015. Due to higher cost and for freeing
capacity to print higher denomination
notes, printing ₹ 1 note was discontinued
in November 1994, followed by ₹ 2 in Feb-
ruary 1995, and ₹5 in November 1995.
Since then, only coins have been issued
for these denominations. However, old
notes are still in circulation and remain le-
gal tender.
 All other currencies have ˜Bhartiya Re-
serve Bank” and ˜Reserve Bank of India”
printed on them. While the notification
does not give any reason for resuming the
printing of ₹1 notes, it is believed that re-
ports of coin shortage and the rising inci-
dence of melting coins might have
prompted the move. The notification does
not mention how many notes will be
printed and issued.
 In the last year of its printing, 44 million
pieces of ₹1 notes were issued. Despite
the RBI’s appeal to change these notes for
coins, these are still in circulation. How-
ever, there is no current estimate of such
notes in circulation. According to the last
official number in RBI’s Annual Report for
the year ended June 2002, a total of 3,076
million pieces of ₹1 notes (value ₹308
crore) were in circulation at the end of
March 2002.
The Government of India in consultation with the
Reserve Bank of India decides on the design of
banknotes. The Government of India is responsi-
ble for the designing and minting of coins in vari-
ous denominations.
Currency paper is composed of cotton and cotton
rag.
There are fifteen languages appearing in the lan-
guage panel of banknotes in addition to Hindi
prominently displayed in the centre of the note
and English on the reverse of the banknote.
Reserve Bank of India decided to withdraw from
circulation all banknotes issued prior to 2005 as
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
they have fewer security features as compared to
banknotes printed after 2005.
 RBI has since revised exchange facility of
Pre -2005 series banknotes vide their notification
no. RBI/2015-16/ 443 DCM (Plg) No. G-
12/4297/10.27.00/2015-16 dated June 30, 2016
(copy enclosed) and decided that from July 01,
2016 onwards, the facility for the members of
Public to exchange the pre-2005 banknotes will be
available only at the following offices of RBI: Ah-
medabad, Bengaluru, Belapur, Bhopal, Bhuba-
neshwar, Chandigarh, Chennai, Guwahati, Hyde-
rabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow,
Mumbai, Nagpur, New Delhi, Patna, Thiruva-
nanthpuram and Kochi.
Earlier, in March 2014, it had set the last date for
public to exchange these notes was January 01,
2015.(DATE SINCE EXTENDED TILL June 30, 2016)
From January 01, 2016, such facility will only be
available at identified bank branches (Currency
Chest branches) and issue offices of RBI.
(e.cir.sl.no:1235/2015-16 dt:07/01/2016) It is a
standard international practice to withdraw old
series notes. The RBI has already been withdraw-
ing these banknotes in a routine manner through
banks.
Banknotes printed before 2005 do not have the
year of printing on the reverse side and hence can
be easily distinguished.
 As before, the new one rupee note will
have the signature of the Finance Secretary. Apart
from the one rupee note, all other paper currency
(₹2, ₹ 5, ₹10, ₹20, ₹50, ₹100, ₹500 and ₹1,000)
have the signature of the RBI Governor, as these
are issued by the Reserve Bank of India, whereas
₹1 is issued by the Government of India. The new
₹1 note will be different in terms of colour. It will
be predominantly pink and green. Earlier, the ₹ 1 along with relevant information like data on the
currency note had a predominantly indigo colour.
Also, the new note will have ˜Bharat Sarkar” on its
masthead, with ˜Government of India” printed
below that.
 The Reserve Bank can also issue bank-
notes in the denominations of five thousand ru-
pees and ten thousand rupees, or any other de-
nomination that the Central Government may
 16

specify. However, there cannot be banknotes in
denominations higher than ten thousand rupees
in terms of the current provisions of the Reserve
Bank of India Act, 1934. Coins can be issued up to
the denomination of ₹.1000 in terms of The Coi-
nage Act, 2011.
 Demonetization of higher denomination
bank notes.:- ₹1000 and₹10000 banknotes,
which were then in circulation were demonetized
in January 1946, primarily to curb unaccounted
money. The higher denomination banknotes
in ₹1000, ₹ 5000 and ₹ 10000 were reintroduced
in the year 1954, and these banknotes
(₹1000,₹ 5000 and ₹10000) were again demone-
tized in January 1978.
 What is legal tender?
The coins issued under the authority of Section 6
of The Coinage Act, 2011, shall be legal tender in
payment or on account i.e. provided that a coin
has not been defaced and has not lost weight so
as to be less than such weight as may be pre-
scribed in its
case: - (a) coin of any denomination not lower
than one rupee shall be legal tender for any sum,
(b) half rupee coin shall be legal tender for any
sum not exceeding ten rupees,
Every banknote issued by Reserve Bank of India
(₹2, ₹5, ₹10, ₹20, ₹50,₹ 100, ₹500 and ₹1000)
shall be legal tender at any place in India in pay-
ment or on account for the amount expressed
therein, and shall be guaranteed by the Central
Government, subject to provisions of sub-section
(2) Section 26 of RBI Act, 1934.
Cheque Truncation:-Truncation is the process of
stopping the flow of the physical cheque issued by
a drawer at some point by the presenting bank
en-route to the drawee bank branch. In its place
an electronic image of the cheque is transmitted
to the drawee branch through the clearing house,
MICR band, date of presentation, presenting
bank, etc.
Images of cheques are taken using specific scan-
ners. Scanners also function like photo-copiers by
reflecting the light passed through a narrow pas-
sage on to the document. Tiny sensors measure
the reflection from each point along the strip of
light. Reflectance measurements of each dot are
called a pixel. Images are classified as black and
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
white, gray-scale or colour based on how the pix-
els are converted into digital values. For getting a
gray scale image the pixels are mapped onto a
range of gray shades between black and white.
The entire image of the original document gets
mapped as some shade of gray, lighter or darker,
depending on the colour of the source. In the case
of black and white images, such mapping is made
only to two colours based on the range of values
of contrasts. A black and white image is also called
a binary image.
The limits on cash withdrawal at ATMs and for
purchase of goods and services are decided by the
issuer bank.
Time limit, for resolution of customer complaints
by the issuing banks, is within 7 working days
from the date of receipt of customer complaint.
Bank is liable to pay ₹100 per day as compensa-
tion to the customer.
RBI has mandated that banks may issue new debit
and credit cards only for domestic usage unless
international use is specifically sought by the cus-
tomer. Such cards enabling international usage
will have to be essentially EMV Chip and Pin
enabled. The banks have also been instructed to
convert all existing Mag-stripe cards to EMV Chip
card for all customers who have used their cards
internationally at least once (for/through e- com-
merce/ATM/POS)
The limit of PPIs (Pre paid payment instru-
ments)has now been enhanced from ₹50,000 to
₹1,00,000/- The balance in the PPI should not ex-
ceed ₹1,00,000/- at any point of time.
The maximum validity of the gift cards has been
enhanced from one year to three years.
White Level ATM Operators are authorised under
PSS Act 2007 (Payment and Settlement Systems
Act 2007.
Remit funds less than ₹.50000/= through NEFT by
accepting cash. (e-circular no.NBG/BOD-
KYC/94/2012-13 dtd: 05.01.2013)
 It is mandatory for all branches to balance the
CGL & BGL Cash accounts with physical cash
balance on a daily basis without fail. GLCOMP
report is sent as a part of CDC reports daily to
all the branches. This report contains the dif-
ferences in amount of Branch Cash BaLance in
BGL (98903 + 5 digit Branch Code + Check
Digit) and its respective CGL account. For veri-
fying the CGL balances, CDC is generating a
 17

Cash report_cfpd0903, which contains teller
wise cash transactions of the day and placing it
in Branch Reports folder daily.
 Water droplet test needs to be conducted for
instruments of Rs 25000/- and above. (e-
Circular NBG/S&P-SP/21/2009-10 dated
19.12.2009).
 Cheques for Rs 50000/- and above , deposited
at the branch/drop box need to be scrutinized
at the branch under Ultra Violet ( UV) Lamp to
verify that the cheques are not fake/ fabri-
cated/ altered A stamp confirming such verifi-
cation “UV Lamp verified” should be affixed on
back of the cheque and record of such verifica-
tion may be kept at the branch for verification
at a later date.
 As per RBI Notification dated 28.08.2015, the
timings for RTGS / NEFT will be modified as
under for working Saturdays as full working
day with effect from September 1, 2015:-
RTGS On all working days including working
Saturday (Excluding Sundays /Holidays / 2nd
and 4th Saturdays) Customer Transaction:
Open for Business: 08:00 hours ; Cut-off time :
16:30 hours. Inter-Bank Transaction: Open for
Business: 8:00 hours; Cut-off time : 19:45
hours. NEFT On all working days including
working Saturday (Excluding Sundays / Holi-
days / 2nd and 4th Saturdays) Customer
Transaction: Open for Business: 08:00 hours,
Cut-off time : 19:00 hours.
 Measures of Monetary aggregates:
M1=Currency with the public +Demand deposit
with the bank +Other deposits with the RBI
M2=M1+Savings deposits of Post office savings
Bank.
M3=M1+Time deposits with the Banking sys-
tem=Net bank credit to the banking system+
Bank credit to the commercial sector+ Net
foreign assets of the Banking sector+ Gov-
ernment’s currency liabilities to the Public-
Net non-monetary liabilities of the banking
sector.
M4=M3+All deposits with the post office savings
banks(excluding National savings certificates)
 Do You know:
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
Numismatics is the study or collection
of currency, including coins, tokens, paper money,
and related objects.
 The Indian rupee sign (sign: ; code: INR)
is the currency sign: for the Indian rupee, the
official currency of India. Designed by D. Udaya
Kumar, Associate Professor IIT Guwahati.,it was
presented to the public by the Government of
India on 15 July 2010, following its selection
through an “open” competition among Indian
residents. Before its adoption, the most com-
monly used symbols for the rupee
were Rs, Re or, if the text was in an Indian lan-
guage, an appropriate abbreviation in that lan-
guage. The new sign relates solely to the Indian
rupee.
 The design resembles both
the Devanagari letter "र" (ra) and
the Latin capital letter "R", with a double hori-
zontal line at the top.
 On 5 March 2009, the Indian govern-
ment announced a contest to create a sign for
the Indian rupee. During the 2010 Union Budget,
Finance Minister Pranab Mukherjee said that the
proposed sign should reflect and capture the In-
dian ethos and culture. From around 3,331 res-
ponses received, five symbols were short-
listed. These were the entries from Nondita Cor-
rea-Mehrotra, Hitesh Padmashali, Shibin KK,
,
Shahrukh J. Irani, and D. Udaya Kumar and one
of them was due to be selected at the Union
Council of Ministers of India meeting held on 24
June 2010. However, the decision was deferred
at the request of the Finance Minister, and the
final decision was made when they met again on
15 July 2010, when they chose the symbol
created by Udaya Kumar.
 The new sign is a combination of
the Devanagari letter "र" (ra) and
the Latin capital letter "R" without its vertical
bar (similar to the R rotunda). The parallel lines
at the top (with white space between them)
are said to make an allusion to the trico-
lor Indian flag and also depict an equality sign
that symbolizes the nation's desire to reduce
economic disparity. Other countries that use a
rupee, such as Sri Lanka, Pakistan and Nepal,
 18

still use the generic U+20A8 ₨ RUPEE SIGN cha-
racter.
Active Market: This is a term used by stock ex-
change which specifies the particular stock or
share which deals in frequent and regular transac-
tions. It helps the buyers to obtain reasonably
large amounts at any time.
Ad-valorem Tax: Ad-valorem tax is a kind of indi-
rect tax in which goods are taxed by their values.
In the case of ad-volorem tax, the tax amount is
calculated as the proportion of the price of the
goods. Value added Tax (VAT) is an ad-volorem
Tax.
Amalgamation: It means ‘merger’. As and when
necessity arises two or more companies are
merged into a large organisation. This merger
takes place in order to effect economies, reduce
competition and capture market. The old firms
completely lose their identity when the merger
takes place.
Balance of Payment: Balance of payment of a
country is a systematic record of all economic
transactions completed between its residents and
the residents of remaining world during a year. In
other words, the balance of payment shows the
relationship between the one country’s total
payment to all other countries and its total re-
ceipts from them. Balance of payment is a com-
prehensive term which includes both visible and
invisible items. Balance of payment not only in-
clude visible export and imports but also invisible
trade like shipping, banking, insurance, tourism,
royalty, payments of interest on foreign debts.
Balance of Trade: Balance of trade refers to the
total value of a country’s export commodities and
total value of imports commodities. Thus balance
of trade includes only visible trade i.e., movement
of goods (exports and imports of goods). Balance
of trade is a part of Balance of payment state-
ment.
Blue Collar Jobs: These Jobs are concerned with
factory. Persons who are unskilled and depend
upon manual jobs that require physical strain on
human muscle are said to be engaged in Blue Col-
lar Jobs. In the age of machinery, such Jobs are on
the decline these days.
AEPS (Aadhaar Enabled Payment System)
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
 UCIC: Unique Customer Identification Code
 FICN:FAKE INDIAN CURRENCY NOTE
 FCORD:FAKE INDIAN CURRENCY NOTE
COORDINATION CENTRE
BRBNMPL: Bharatiya Reserve Bank Note Mudran
Private Limited- RBI SUBSIDIARY,
CTS : Cheque Truncation System
PPIs : Pre paid payment instruments
WLA : White Label ATM
 CAC: Currency Administration Cell
 HCI: Hidden code Identification
 BAS: Biometric Authentication Solution
CHANGEOVER TO 12 BORE PUMP ACTION SHOT
GUNS (PASG) FOR GUARDING OF OUR RANCHES
Bank has signed a Memorandum of Understand-
ing (MoU) with Rifle Factory, Ichapore (RFI), West
Bengal for procurement of PASG for guarding our
branches.
The guns are to be introduced in a phased man-
ner, as under:-
a) During 2016-17 - All SCABs, Currency chests and
CACs.
b) During 2017-18 - 50% of cash balance
branches.
c) During 2018-19 - Balance 50% of cash balance
branches.
Entry of the DBBL gun be deleted from the li-
cense, after entering details of the new PASG.
(e.cir.Sl. No. : 61/2016 – 17 dtd: 13/04/2016.)
The Currency Distribution & Exchange Scheme
(CDES) for bank branches including currency
chests has been formulated in order to ensure
that all bank branches provide better customer
service to members of public with regard to ex-
change of notes and coins, in keeping with the
objectives of Clean Note Policy.( e.cir.sl.no. Sl. No.
275/2016 – 17 dtd: 27/05/2016)
Nature of Service Incentives
Exchange of soiled i) Exchange of soiled
notes/ adjudication of notes- Rs. 2 per
mutilated banknotes packet for exchange of
over the counter at soiled notes up to
bank branches denominations Rs.50/-
ii) Adjudication of muti-
 19

lated notes- Rs.2
per piece.
Distribution of coins Rs.25/- per bag for dis-
over tribution of coins
counter over the counter.
The incentives for installation of machines have
been restricted to Cash Recyclers & ATMs dis-
pensing lower denominations notes, with a cap on
reimbursement of cost per machines.
It has been decided to implement the Revised Ac-
counting Process for Cash Points (RAPCP) on the
lines of Revised Accounting Process for Cash Rep-
lenishment in ATMs. Recycler/Smart ATM/CDM
have been collectively referred as Cash Point.
(E.cir.sl.no:490/2016-17 dt:11/07/16)
In terms of Corporate Centre letter No. CO
S/43/315 dated 11 Dec 2002, electronic time locks
(ETLs) have been installed on vault doors of strong
room of all currency chests and on cash safe of
cash balance branches. However, it is observed
that wherever ETLs are installed in the branches,
it is either not being used or lying out of order.
Utility of the ETLs has been discussed in the suc-
cessive Circle Security Officers (CSOs) Conference
and majority of the CSOs are of the opinion that
the ETL does not serve any purpose and could be
dispensed with, especially in cash balance
branches in non-sensitive
areas.(e.cir.sl.no:916/2016-17 dt:13/10/2016)
 .Use of paper-based instruments (like
cheques, drafts, and the like) accounts for nearly
60% of the volume of total non-cash transactions
in the country. In value terms, the share is present-
ly around 11%.
 Electronic Clearing Service (ECS) Credit:
The Reserve Bank introduced the ECS (Credit)
scheme during the 1990s to handle bulk and repe-
titive payment requirements (like salary, interest,
dividend payments) of corporates and other insti-
tutions. ECS (Credit) facilitates customer accounts
to be credited on the specified value date and is
presently available at all major cities in the coun-
try.
 Electronic Clearing Service (ECS) Debit:
The ECS (Debit) Scheme was introduced by RBI to
provide a faster method of effecting periodic and
 Quick success series
Cash Department System & Procedure
Updated upto 31st October 2016
repetitive collections of utility companies. ECS
(Debit) facilitates consumers / subscribers of utility
companies to make routine and repetitive pay-
ments by ‘mandating’ bank branches to debit their
accounts and pass on the money to the compa-
nies.

 Electronic Funds Transfer (EFT):This retail

funds transfer system introduced in the late 1990s
enabled an account holder of a bank to electroni-
cally transfer funds to another account holder with
any other participating bank.

 Definition of "Currency”:In pursuance of

clause (h) of Section 2 of the Foreign Exchange
Management Act, 1999 (42 of 1999), and in super-
session of Notification No. FEMA 15/2000-RB
dated May 3, 2000, as amended from time to time,
the Reserve Bank notifies debit cards, ATM cards
or any other instrument by whatever name called
that can be used to create a financial liability, as
‘currency’.

 AMFI- Association of Mutual Funds in

India
 AMBI- Association of Merchant Bankers in
India
 Aunt Jane/Aunt Agatha A passive long
term investor.
 Average Annual Growth Rate – AAGR

 20

1 Quick Success Series – Remittance & Collection

QUICK SUCCESS SERIES, an initiative of SBLC

Deoghar to facilitate the preparation of pro-
QUICK motion seeking personnel of our Bank, appears
to have succeeded in its objective to a large ex-
tent, as the readers are still approaching us for
SUCCESS its revision/updation despite availability of
plenty of other study materials.
SERIES
We would not have been able to sustain this
unique effort of ours, without the active sup-
port and continuous encouragement of our
DGM cum Circle Development officer Sri Bi-
jayananda Padhi. We are deeply indebted to
him for his co-operation and guidance.

Sri Rakesh Roshan, Chief Manager (Training)

,Sri Kumar Priyank, Chief Manager (Training)
Sri Sanjay Kumar Sharma,Manager (Training
and Sri Jitendra Kumar Arun, Manager (Train-
ing) at this SBLC have owned up this project

LEGAL ASPECTS and have taken pains to keep it relevant to the

users by updating & improving it at half yearly
interval.

OF BANKING Though every care has been taken while up-

dating the contents, we request our readers to
point out any lapses at the earliest. Needless
to mention this book is not a substitute of cir-
cular instructions issued by the Bank from time
to time. For detailed guidelines please refer to
Bank’s latest circulars. Soft copy of this edition
is available on our ftp://10.151.51.33 in QSS
folder and on SBI TIMES>PATNA CIRCLE>SBLC
Deoghar site.

Team SBLC Deoghar is humbled by the re-

sponse and recognition, it is receiving from the
readers within and beyond the circle. We wish
the readers grand success in their endeavours.

Sri Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Deoghar- 814112
Phone- 06432-232895
Fax - 06432-231810
E-mail: agmstc.deoghar@sbi.co.in

Updated By: Rakesh Roshan

Chief Manager (Training),
SBLC Deoghar
Mobile- 9162370185 Updated up to
Email- r.roshan@sbi.co.in 31st October 2016

Page 1
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016

 TDS compliance at the Branch level involves mainly the following functions:-
 Deduction of Tax at Source (TDS)
 Deposit of TDS
 Filing of the TDS statements (Form 24Q/26Q/27Q)
 Issuance of TDS certificates
 Submission of Declarations/Forms [15G/15H and Form 60/61] periodically to the Income Tax de-
partment.
 Dealing appropriately with various notices/orders received from the Income Tax department.
 Dealing with penalties and other penal provisions on account of non-compliance with TDS provisions
 Miscellaneous
 Tax is deducted on term deposits*, where interest paid/payable to a customer at a branch exceeds
Rs.10,000/- in a financial year. Tax is automatically deducted by the CBS and parked in the TDS-BGL ac-
count of the branches. Wherever, any erroneous deduction is observed, the amount should be refunded
to the customers through proper screen i.e. 20045 and 20151. PLEASE REMEMBER: - Refunds can be
made up to 5th of the following month only (27th in case of April).

 *Definition of ‘time deposits’ to include Recurring Deposits (RD) within its scope for the purposes of de-
duction of tax under section 194A of the IT Act. Therefore, interest on RD is subject to TDS w.e.f.
01.06.2015. Further, the existing threshold limit of Rs.10,000/- for non-deduction of TDS will be applica-
ble including interest on RD also. ii. The threshold limit of Rs.10,000/- for non-deduction of TDS on time
deposits including RD, is to be computed for Bank as a whole w.e.f. 01.06.2015 (not branch-wise as pre-
scribed earlier).(e.cir.s;.no:290/2015-16 dt:08/06/2015)

 If the payee does not provide his PAN, the applicable TDS rate will be the specified rate or 20% of
the gross amount, whichever is higher.
 After deduction, the tax is required to be deposited to the Government account through internet
banking *within the prescribed time limits as below:-

Tax deducted during the month Due date of payment of tax

March 30th April
In any other case (i.e. April to February) 7th of the following month

*in terms of the Notification No.34/2008 dated the 13th March 2008, issued by CBDT, all the
branches/offices are required to pay tax electronically w.e.f. 1st April 2008.(e.cir.sl.no:749/2007-08
dt:28/03/2008)

 The quarterly TDS statements are:

TDS in respect of Salary-24Q
TDS in respect of payments other than Salary made to residents -26Q
TDS in respect of payments other than Salary made to non-residents -27Q

 After filing the TDS returns, the branch must log on to the TRACES website and download the TDS
certificates and verify them before signing and issuing it to the persons on whose account tax has
been deducted. The last date for issuance of certificates is as under:
Particular of certificate Due date for issuing of certificate
Form 16 (in case of salary) 31st May of the F.Y. immediately following the
F.Y. in which the income was paid and tax de-
ducted.

2
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016

Form 16A ( other than salary)

For the Quarter ending 30th June 30th July
For the Quarter ending 30th September 30th Oct
For the Quarter ending 31st December 30th January
For the Quarter ending 31st March 30th May
Form 16B (for consideration towards acquisition Within 15 days from due date of furnishing the
of immovable property other than agricultural challan-cum-statement in Form 26QB
land from resident)

SUBMISSION OF PERIODICAL FORMS (DECLARATIONS)

Revised procedure for submission of Form 15G/15H (e.cir.1236-2015-16 dt:07/01/2016)
With effect from 1st October 2015,
i. The Branches shall receive two copies of Form 15G/Form15H in new format from the eligible customers.
The Form be marked in the CBS as hitherto and one copy of Form duly acknowledged with UIN allotted ma-
nually (in the Format detailed below) may be handed over to the customers for their record;
ii. The UIN shall consist of three fields a), b) and c) viz:
a) Running Sequence Number (10 alphanumeric for Form 15G/Form 15H) given as follows:-
Form 15G Form 15H
10 alphanumeric characters starting with G followed 10 alphanumeric characters starting with H followed
by 9 digits (Eg.: G000000001) by 9 digits (Eg.: H000000001)

b) Financial year for which the declaration is being furnished;

c) TAN of the branch.
e.g. The sample format of UIN for a branch for the year 2015-16 and
TAN as ‘ABCD12345E’ should be as below:
- Form 15G - G000000001201516ABCD12345E
- Form 15H - H000000001201516ABCD12345E )
would be a separate series for UIN allotted to Form 15G and Form 15H.
The UIN running sequence number series shall be reset to 1 in case of each TAN of the branch at the start of
each financial year;
iii. The branches shall upload, the prescribed details of all the 15G and Form 15H declarations received dur-
ing a quarter, in the file format provided in Income Tax website. However, the branches shall be required to
retain the physical forms for a period of seven years from the end of the financial year in which the Form
15G/Form 15H has been received;
iv. In addition to the above, the branch shall quote “sequence number” (Field ‘a’ of UIN as detailed in ii
above) in quarterly TDS statement i.e. Form 26Q against the transaction covered under 15G/15H declara-
tion, that no tax has been deducted in the said quarter;
v. The branches will be responsible for reconciliation of the allotted UINs vis-à-vis reported UINs to the In-
come Tax Department through quarterly TDS statement i.e. Form 26Q as well as through upload of declara-
tions on quarterly basis;
vi. The branches shall file exceptional report for the following UINs, in the format which will be made availa-
ble separately in the Income Tax website.
a) UINs not reported in TDS statements;
b) UINs not uploaded on TDS website.

3
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016

 Form 60
Any person who does not have a PAN and who enters into any transaction where PAN is required to
be quoted, can make a declaration in Form no. 60 giving therein the particulars of such transactions.

 Form 61
Any person, who does not have a PAN and having agricultural income and is not in receipt of any
other income chargeable to income tax, shall make a declaration in Form no. 61 giving therein the
particulars of such transactions.

 The Forms 60/61 so collected need to be forwarded it to the Commissioner of Income tax (Central
Information Branch) having territorial jurisdiction over the area in which the transaction is entered,
in two half yearly instalments i.e. on or before 31st October (for the forms received up to 30th Sep-
tember) and 30th April (for the forms received up to 31st March).
 However, Form 60/61 obtained at the time of opening an account (other than a time deposit ac-
count exceeding Rs. 50000/-) is not required to be furnished to Income tax authority and should be
retained at branch only.

RIGHT TO INFORMATION ACT (2005)

Responses to RTI requests should be furnished as quickly as possible and in no case should they be allowed
to cross the stipulated timelines provided under the RTI Act. The stipulated timelines are;

Sl.no. Situation Time limit for disposing off

1 Supply of information in normal
course
2 Supply of information if it concerns
the life or liberty of a person
3 Supply of information if the
application is received through
CAPIO
4 Supply of information if application /
request is received after transfer
from another public authority:
(a) In normal course
(b) In case the information
concerns the life or liberty of a
person.
5 Supply of information if it relates to
third party and the third party has
treated it as confidential.
6 Supply of information where the
applicant is asked to pay additional
fee.
applications
30 days
48 hours
05 days shall be added to the time
period indicated at Sr. NO.1 and 2.
(a) Within 30 days of the receipt of the
application by the concerned public
Authority.
(b) Within 48 hours of receipt of the
application by the concerned public
authority
Should be provided after following the
procedure given in Section 11 of the
RTI Act.
The period intervening between
informing the applicant about additional
fee and the payment of fee by the
applicant shall be excluded for
calculating the period of reply.

4
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016

If the CPIO fails to give decision on the request for information within the prescribed period, the Central
Public Information Officer shall be deemed to have refused the request. It is pertinent to note that if a public
authority fails to comply with the specified time limit, the information to the concerned applicant would
have to be provided free of charge.
 Appeals :
 The appeal should be disposed off within 30 days of receipt of the appeal.
 In exception cases, the Appellate Authority may take 45 days for its disposal.
 However, in cases where disposal of appeal takes more than 30 days, the Appellate Authority should
record in writing the reasons for such delay.
(e.cir.sl. No. : 639/2012 – 13 dt: 28/09/2012)

RTI STRUCTURE
Establishment APPELLATE AUTHORI- CPIOs CAPIOs
TIES
LHO GM (Net work-I) AGM(Premises & Estate) CM (P&E),LHO * *
AGM SBLC Manager / Dy. Manager
[AGM (P&E), if the SBLC is (Administration)
headed by CM]
Administrative office GM (Respective Networks) DGM (B&O) of Respective CM (GB) at Zonal Office
Zones
RBO GM (Respective Networks) Regional Manager C.M( Admin)

CPCs DGM (B&O) for CPCs headed by CM heads of CPCs

GM (Respective CMs
Networks) AGM (CPC) for CPCs headed by CM/Manager in AGM headed CPCs
CMs
Branches (Directly report- GM (Respective Networks) DGM/AGM (Branch Head) Chief Manager/Manager (Branch opera-
ing to GMs/DGMs tions)

Branches (Others) GM (Respective Networks) Regional Managers( for other Branch Head (SMGS-IV & below)
Branches)

** Modified vide e-cir: 774/2014-15 dt:27/09/2014)

Ref:e.cir.sl.no:568/2015-16 dt:06/08/2015

GROUP HEAD APPELLATE AUTHORITIES CPIOs CAPIOs

MD & GE (A&S) CGM-I(A&S) DGM (BPR &RM) CM (BPR & RM)
GM, SBSC DGM, SBLC AGM (Admin) SBSC
GM, (SBIRD) DGM, (SBIRD) AGM (Admin),SBIRD
GM, SBA DGM, SBA AGM (Admin) SBA
GM & Director, (SBIICM) DGM, (SBIICM) AGM/CM (Admin)
GM (CRPD) DGM (CRPD) AGM (CRPD)
DMD & CDO DGM (PMD & PDG) AGM (PPG)
AGM (PMD)
CGM (HR) DGM (CMD) AGM (CMD)
DGM (IR) for all other de- AGM (HR) for all other depart-
partment under HR ments under HR
CGM (STU) DGM (STU) AGM (L&D)
CIP GM (ITSS & QA) For all De- DGM (S & C) for all other AGM/CM (Admin)
partment of GITC GITC issues

5
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016

GROUP HEAD APPELLATE AUTHORITIES CPIOs CAPIOs

DGM (PPBU-Ops) for all AGM (PBU-NPA)
PBBU matters-
including Home
GM (Cross selling) Loans
MD & GE (NBD) DGM (Ops-RE,H&HD) for AGM (Home Loans)
all matters related
to RE,H & HD and
AGM (Precious Metal)
Precious Metal

DGM (Cross selling) AGM (Cross Selling)

GM(AB&R) for AB&R and DGM (DRD & ACD) for AB AGM (ABD) for AB&R
GAD &R and GAD AGM(GAD) for GAD
GM (SMEBU) DGM (SME-Ops) for SME- AGM (SME-Ops)
BU
GM (Agri Business) DGM (BPM & MI) for Agri AGM (BPM&MI)
Business
GM (Outreach) DGM (RB-Ops) for Rural CM (Ops)
Business Non-Farm
GM(NB Co-Ordination) DGM (Customer Service) AGM (Customer Service)
GM (Alternate Channel) DGM (ATM) AGM (ATM)
CGM (BO) DGM (RTI) for all Depart- AGM(RTI)
ment at Corporate
centre not mentions
elsewhere
Global Markets GM (Rupee Treasury DGM (Compliance) AGM (Compliance)
CFO Corporate Centre Global Market)
Global Markets Unit GM (GMUK) DGM(Funds Management) AGM (Compliance)
Kolkata

CAG CENTRAL CGM -I (CAG) DGM (CAG Cen- AGM (MIS & SYS)
tral)

CAG BRANCHES GM & RH (Branch Head DGM & COO (for all CAG AGM (A&A) / CM (A&A)
Branches)
TBU (Transaction Bank- GM (TBU) DGM & RM (FIBU) AGM 1 (FIBU)
ing Unit)
DGM (CMP) CM (Admin) CMP

AGM Capital Market CM (Operation & COO)

Branch

MCG Corporate CGM (MCG-I) DGM (MC&BS) AGM (GB)

Centre

MCROs (Mid Corporate GM (MC) of respective MCRO AGM (GB) at respective CM (HR) at respective
Regional Offices) MCRO MCRO

MCG Branches GM (MC) of Respective MCRO DGM (Branch AGM & COO
Head )

AGM (Branch CM ( A&A)

Head)
MD & GE (Corporate
Banking)
International Banking GM (Compliance) DGM (O & IS) AGM(O & IS)

SAMRO GM of Concerned SAMRO DGM of Concerned AGM /CM of con-

SAMRO cerned SA-
MROs as
identified by
GM /DGM

SAMB GM of Concerned SAMRO DGM of Concerned AGM /CM of concerned

Branch Branch as identified by
DGM of the Branch

6
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016

SARBs GM of Concerned AGM of concerned SARB; Senior CM /

SARB MMGS-III
DGM (SAMRO) if the of the Br.
branch is headed by
C.M.

GM (CAU) for I&MA Deptt. Hyderabad AGM (HR & Admin), CM (Admin),
MD (Compliance &
Risk) GM (I&A) ZIO For respective Z I O AGM (I&A) ZIO C.M. (HR & Admin) ZIO

NEGOTIABLE INSTRUMENT ACT, 1881

Sec 4 - Defines a promissory note
Sec 5 - Defines bill of exchange
Sec 6 - Cheque
Sec 8 - Holder
Sec 9 - Holder in due course
Sec 10 - Payment in due course
Sec 15 - Endorsement
Sec 18 - If the amount undertaken or ordered to be paid is stated differently in words and figures, the
amount in words shall be the amount undertaken or ordered to be paid.
Sec 20- An inchoate instrument is one which is signed and stamped as required by law, but which has not
been completely filled by the maker.
Sec 26- A minor may draw, indorse, deliver and negotiate such instruments so as to bind all parties except
himself.
Sec 87- Material alteration of negotiable instrument renders the same void.
Sec 99 - Noting
Sec 100 - Protest
Sec 131 - Protection to the collecting banker
Sec 138 to 142 - New Secs 138-142 added in 1988, detailing penalties for bouncing of cheques due to insuf-
ficiency of funds.
# If a cheque in discharge of a liability is returned by the bank unpaid, due to insufficient funds, such per-
son shall be deemed to have committed an offence and shall, be punished with imprisonment for a term
which may extend to two years, or with fine which may extend to twice the amount of the cheque, or with
both.

THE NEGOTIABLE INSTRUMENTS (AMENDMENT) ORDINANCE, 2015

 In exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President has prom-
ulgated ‘The Negotiable Instruments (Amendment) Ordinance 2015’. The same has been published in Ga-
zette dated 15th June, 2015 and has come into force with immediate effect.

 The Ordinance defines ‘a cheque in the electronic form’ & is focused on clarifying jurisdiction related issues
for filing cases for offence committed under section 138 of the Negotiable Instruments Act, 1881. It also pro-
vides that the offence u/s. 138 shall be inquired into and tried only by a Court within whose local jurisdiction
–
 the branch of the bank where the payee or holder in due course, as the case may be, maintains the
account is situated, if the cheque is delivered for collection through an account.
or
 the branch of the drawee bank where the drawer maintains the account is situated, if the cheque is
presented for payment by the payee or holder in due course otherwise through an account.

7
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016

 It provides for retrospective application for the new provision of determining the jurisdiction of a court to try
a case under section 138 of the NI Act, 1881. The Ordinance also mandates centralisation of subsequent
complaints against the same drawer.
 Consequent upon passing of ‘The Negotiable Instruments (Amendment) Act 2015’ by the Parliament and
getting assent of the President on 26th December, 2015,‘ The Negotiable Instruments (Amendment) Second
Ordinance 2015’ stands repealed. (e.cir.sl.no.1433/2015-16 dt:20/02/2016)

Payment & settlement Act-2007

Sec 2(1)(c) Defines electronic fund transfer
Sec 25 (5) of the act provides that provisions of chapter XVII of the Negotiable Instruments Act,
1881 (26 of 1881), shall apply to the dishonour of EFT to the extent the circumstances permit
Sec 21 Duties of a system provider
Sec 25 Dishonour of electronic funds transfer for insufficiency, etc., of funds in the account.
Sec 30 Power of Reserve Bank to impose fines

INDIAN CONTRACT ACT 1872

Sec 11 – Minor cannot enter into a contract
Sec 59 to 61 - Clayton’s Rule (Appropriation of payments when several debts are owed)
Sec 124 - Indemnity
Sec 126 – Guarantee
Sec 148 to 176 – Bailment/ Pledge
Sec 171 – Lien
Sec 172 – Pledge
Sec 182 – Agent and Principal

LIMITATION ACT 1963

Sec 4 – If prescribe period expires when the court is closed, suit may be filed on the next day when the
court reopens
Sec 18 - Revival/acknowledgement of debt
Sec 19 – Payment/deposit of any amount by the borrower himself by a signed voucher extends limitation
period further by 3 years

INFORMATION TECHNOLOGY ACT 2000

Sec-65-Tampering with computer source documents
Sec-66- Hacking with computer system
Sec-66B-Receiving stolen computer or communication device
Sec-66C-Using password of another person
Sec-67-Publishing information which is obscene in electronic form.
Sec-67C-Failure to maintain records

TRANSFER OF PROPERTY ACT

Sec 58( a to f ) – Mortgage (EM) defined
Sec 100 – Registration of charge ( in case of companies) (not defined in companies act)
Sec 105 - Lease

PARTNERSHIP ACT 1932

8
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016

Sec 25 – Joint and several liability of partners

Sec 30 – A minor can be admitted to the benefits of a partnership but cannot become a partner.
Sec 42 - Death, insolvency of a partner dissolves the partnership
Sec 69 – A registered firm can file a suit against others to enforce rights arising from a contract but an un-
registered firm cannot. The creditors of an unregistered firm can file a suit against the firm

SBI ACT 1955

Sec 32 – Act as agent of RBI
Sec 34 1 (b) – Cannot lend against its own share
Sec 39 – Balance Sheet to be prepared as at 31st March

RBI ACT 1934

Sec 28 - Note refund rules
Sec 35- RBI can carry out inspection of any bank
Sec 42 – Schedule/Non-Schedule banks defined.
Sec 42(1&6) – CRR to be maintained with RBI and it is fixed on market situations
Sec 45 – Nationalised banks can conduct Govt. business as agent of RBI
Sec 49 – Bank rate
[ A bearer draft cannot be issued ( sec 31). A fine up to the amount of the bearer draft issued may be im-
posed on the bank ( sec 58 B ) ]
Sec 24- RBI issues all currency notes for denomination 2,5,10,20,50,100,500,1000,5000,10000. It has the
power to direct discontinuation or non-issue of currency notes of any denomination.

BANKING REGULATION ACT 1949

Sec 6 – Forms of business a bank can transact
Sec 11 – Min paid up capital and reserves
Sec 19 – Restrictions regarding advances against shares
Sec 20 – Bank cannot grant loan against its own shares as it will amount to a reduction in its capital
Sec 24 – SLR maintenance
Sec 29 – Publication of balance sheet every year
Sec 35 – Inspection of branches by RBI
Sec 35A – Ombudsman appointed
Sec 45 –Return of paid instrument to customers
Sec 45ZA to ZF – Nomination facility

CONSUMER PROTECTION ACT (COPRA) 1986

District Forum
 3 members
 Term is 5 years
 Claims up to Rs 20 lac
 Appeal against it can be filed within 30 days
State Commission
 3 members
 Claims > Rs 20 lac up to Rs 100 lac
 Appeal will be allowed if either 50% amount ordered by district forum or Rs Rs 25000/- whi-
chever is less, is deposited

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Updated up to 31st October 2016

National Commission
 5 members
 Claims > Rs 100 lac
 Appeal will be allowed if the appellate deposits 50% of the amount ordered by State Com-
mission or Rs Rs 35000/- whichever is less

INCOME TAX ACT-1961

Sec 194 – TDS (Tax Deducted at Source)
Sec 269 - If the aggregate of principal of a term deposit and interest is Rs 20000/- or more then payment
should not be made in cash.
Sec 271 – If violated Sec 269, the official responsible has to pay the penalty up to the amount of Term De-
posit

IMPORTANT POINTS RE-
LATED TO LEGAL ASPECTS
 Bankers’ Books Evidence Act came into
existence in year 1891.
 Bankers’ books include ledgers, day books,
cash books, micro films, magnetic tapes
etc.
 Certified copy means a copy of any entry
in the books of a bank together with a cer-
tificate that it is true copy of the original
entry.
 Maintenance of SLR: max 40%
 Pursuant to the amendment of the Banking
Regulation Act, 1949, section 26A has been
inserted in that Act, empowering Reserve
Bank to establish a Depositor Education
and Awareness Fund (the Fund). Under
the provisions of this section the amount
to the credit of any account in India with
any bank which has not been operated
upon for a period of ten years or any depo-
sit or any amount remaining unclaimed for
more than ten years shall be credited to
the Fund, within a period of three months
from the expiry of the said period of ten
years.
 Every scheduled commercial banks has to
publish its B/S & P&L A/c as on 31.03 latest
by June 30th of every year.
 Garnishee order is issued under Civil
Procedure code (1908) act
 A complaint under Consumer Protection
Act can be filed within 2 years from the
date on which the cause of action has ari-
sen.
 The ROC on the application of the compa-
ny, on being satisfied that the company
had sufficient cause for not filing particu-
lars of charge within 30 days may allow
registration after 30 days but within a pe-
riod of 300 days from the date of creation
of charge.
 If the particulars of charge or for modifica-
tion or satisfaction of charge are not filed
within 300 days the company or any per-
son interested in registration of charge can
file an application to the Central Govt. for
condonation of delay and extension of time
for filing particulars of charges. Central
Govt. can impose conditions for extension
of time. IMPORTANT- It is important to
note that it is imperative that charges
created in favour of the Bank are regis-
tered within a period of 30 days from the
date of creation of charge. Otherwise it is
possible that Bank may lose priority of
charge created in favour of the Bank.
 Reserve Bank of India vide their circular
dated 07.06.2013 advised all banks to sub-
ject the title deeds and other loan docu-
ments in respect of all exposures of Rs 5
Crs and above to periodical legal audit and
re-verification of title deeds with relevant
authorities as part of regular audit exercise
till the loans are fully repaid.
 As per Legal Audit Plan, the Auditors for
conducting the Legal Audit shall be out-

10
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016
sourced and reputed Legal Firms/ Advo-
cates empanelled with our Bank would
carry out Legal Audit by visiting the
branches where the accounts are being
operated and documents are kept.
 The Legal Audit shall be conducted pref-
erably 3 months before the commence-
ment of RFIA / Credit Audit, so that auditee
branches can comply with rectification of
the deficiencies pointed out. A separate
Legal Audit Report Format (LARF) to be
submitted by Legal Auditor has been de-
signed. The format contains Value State-
ments pertaining to documentation, mort-
gage, charge creation, etc., corresponding
to Value Statements in the existing Credit
Audit Report Format (CARF).
 RFIA / Credit Auditors will award scores
based on the Legal Audit observations and
compliances by the branch during their
respective audits. The score so awarded
will be integrated in the Credit Manage-
ment Score of the Branch. The Legal Audit
is a regulatory prescription and its progress
will be reported to Bank’s ACB on quarterly
basis.
 Criminals Procedure Code came into
existence in 1973 year.
 Clayton’s Rule defines Appropriation of
payments when several debts are owned.
(under sec 59 to 61 of Indian Contract Act)
 Quasi Contracts means Loans to minors to
meet necessaries of life are binding on the
minor’s estate.
 When the same person is the drawer
and the drawee of an instrument, the
holder can treat the instrument as Bill
of exchange or Promissory note ( e.g.
Banker’s cheque)
 Inchoate instruments means incom-
plete instruments wherein some de-
tails would have been left blank.
 If no rate of interest is mentioned in
the Promissory note intt @ 18% p.a is
to be paid.
 Dishonour of cheques are defined in
sec 138 to 142 of NI Act.
 On the dishonour of a cheque the
payee must give a notice to the
11
drawer within 30 days days of the re-
ceipt of information from the bank.
 Scheduled Banks defined as The
names of banks with capital and re-
serves of Rs 5 lakhs and above will be
included in the II schedule to the Act (
S 42)
 If the aggregate of principal of a term
deposit and interest is Rs 20000/- or
more then payment should not be
made in cash.
 A minor can be admitted to the bene-
fits of a partnership. (But he cannot
become a partner; also documents will
be signed by the guardian on minor’s
behalf).
 A registered partnership firm can sue
third parties to enforce rights arising
from a contract. An unregistered firm
cannot; the creditors of an unregis-
tered firm can sue the firm.
 Forms of legal representation: Legal
Representation is a legal decision
granted on the death of a person
owning property or money in order to
dispose-off the said property or mon-
ey. It is governed by the provisions of
the Indian Succession Act, 1925. The
three forms of legal representations
are (a) probate (b) letter of Adminis-
tration and (c) Succession certificate.
 a) Probate: If the deceased has left a
will, it must be first produced in a
court. The court after satisfying itself
that it is the last will of deceased and
was duly executed, will issue a pro-
bate, empowering the executor of the
will to do all acts specified in the will.
The executer is appointed by the per-
son making the will. A copy of the will
is always attached to the probate. A
probate is only conclusive as to the
appointment of executer and validity
of the will. It applies to both movable
and immovable properties. A probate
issued by a High court is valid
throughout India. If it is issued by a
district court, the probate is valid
within the state and in case the value
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016
of property outside the state does not
exceed Rs.10, 000/-, it is even valid
outside the state. If a supplementary
will called (a codicil) is discovered af-
ter the grant of a probate, a separate
probate of that codicil may be granted
to the executer.
 b) Letter of Administration: It is
issued by a court in favour of an Adminis-
trator (i) when the deceased has not left a
will or (ii) when the deceased has left a will
but has not named an executor, or (iii) the
executor named therein refuses to act or
he himself is dead .A letter of administra-
tion covers not only debts due to the de-
ceased and transferable securities but also
all kinds of movable and immovable prop-
erties. It is valid throughout India if issued
by a High court. If it is issued by a District
Court, it is valid within the state. However,
if the value of the property outside the
state does not exceed Rs.10,000/ even a
letter of administration issued by a District
Court is valid throughout the Country.
 c) Succession Certificate: A Succession
Certificate is granted when the deceased
has not left any will It is issued to the legal
heirs in respect of only debts and securi-
ties. It is to be noted that a succession cer-
tificate does not cover gold loan ornaments
articles in safe deposit/safe deposit lockers
etc. It is valid throughout India even if
granted by a District Court. The certificate
should specify the debts and securities and
will be granted in a special form. The certif-
icate empowers a person to whom it is
granted to collect debt and securities and
interest thereon.
 Credit Information Companies (Regu-
lations) Act, 2005(CIC Act) and the
Rules and Regulations framed there
under have come into force with effect
from December 14, 2006. Section 17 of
the CIC (Regulations)Act, 2005 provides
for collection (from members) and fur-
nishing (to specified users) of credit in-
formation by Credit Information Com-
12
panies. The CIC Act provides statutory
backing for sharing of credit informa-
tion by Credit Institutions with Credit
Information Companies subject to con-
ditions stipulated therein. Therefore
with CIC Act coming into force, the
“consent clause” has become redun-
dant and hence the consent of the bor-
rower prescribed vide Annexure- I & II
of Circular No. CPP/CKG/CIR/40 dated
13.11.2002, need not be insisted upon
now. (e-cir:461/2013-14
dt:03/08/2013)
 Since the Govt. of India has directed
the Bank to establish Facilitation cen-
ters to help less conversant bidders,
who intend to participate in e-auction
under SARFAESI / DRT. The branches,
which conduct e-auction under SAR-
FAESI / DRT, should make arrange-
ments for Facilitation Center to provide
all information about the process of e-
auction and facilitate the bidders to bid
in the e -auction in a transparent man-
ner.(e-cir:544/2013-14 dt:24/08/2013)
 Guidelines on KYC/AML/CFT measures
are issued by Reserve Bank of India un-
der Section 35A of the Banking Regula-
tion Act, 1949 and Rule 7 of Prevention
of Money- Laundering (Maintenance of
Records) Rules, 2005.
 As per Rule 114B it is compulsory to
quote PAN in all documents pertaining
to financial transactions notified from
time to time by CBDT.
 Person not having the PAN are to make
a declaration in form No. 60/61, giving
therein the particulars of such transac-
tions. Person with agricultural income
and those who are not in receipt of any
income chargeable to tax, have to make
a declaration in Form No.61.
 RBI has permitted Banks to formulate a
scheme for providing services at the
premises of a customer (Doorstep bank-
ing) under section 23 of Banking Regula-
tion act 1949.
 SARFAESI-2002 Act came into force
from 21st August 2002.Under the act a
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016
secured creditor shall have the following
powers:-(i) To take possession, sell or
lease the secured assets (both movable
and immovable assets, (ii) To take over
the management of the business of the
borrower, (iii) To appoint a manager,
(iv) To recover any money payable by
third parties to the borrower, (v) In case
a joint financing under consortium or
multiple lending arrangement, if 75% of
the secured creditors in value agree to
initiate recovery actions, the same shall
be binding on all the secured creditors.
 Securitization: A process by which
a single asset or a pool of assets are
transferred from the balance sheet of
the originator (bank) to a bankruptcy
remote SPV (trust) in return for an im-
mediate cash payment.
 An entity which may be a trust, com-
pany or other entity constituted or es-
tablished by a ‘Deed’ or ‘Agreement’ for
a specific purpose.
 Minutes of the Board meetings and the
memoranda are commercial confidence
for the Bank and are exempted from
disclosure in terms of Section 8(1)(d) of
the RTI Act, 2005. (e-cir:899/2013-14
dt:07/09/2013)
 The Mental Health Act, 1987 provides
for a law relating to the treatment and
care of mentally ill persons and to make
better provision with respect to their
property and affairs.
 According to the said Act, “Mentally ill
person” means a person who is in need
of treatment by reason of any mental
disorder other than mental retardation.
Sections 53 and 54 of this Act provide
for the appointment of guardians for
mentally ill persons and in certain cases,
managers in respect of their property.
The prescribed appointing authorities
are the district courts and collectors of
districts under the Mental Health Act,
1987. (e-cir:1188/2013-14
dt:23/01/2014).
13
 RBI has now advised that banks are
insisting on guardianship certificate
from all mentally ill persons. In this re-
gard it is clarified that paragraph 2(iii) of
our aforesaid ecircular is not intended
to insist on appointment of a guardian
as a matter of routine from every per-
son “who is in need of treatment by
reason of any mental disorder”.
Branches should seek for appointment
of a guardian only in such cases, where
they are convinced on their own or
based on documentary evidence availa-
ble, that the concerned person is men-
tally ill and is not able to enter into a va-
lid and legally binding contract. (e-
cir:1416/2015--16 dt:16/02/2016)
 Major Changes Brought In By Banking
Law (Amendments) Act, 2012
 The said Amendment Act has amended
the BR Act, the Banking Companies (Ac-
quisition and Transfer of Undertakings)
Act, 1970, the Banking Companies (Ac-
quisition and Transfer of Undertakings)
Act, 1980 and also made consequential
amendments to certain other enact-
ments including the Indian Stamp Act,
1899 and the Indian Contract Act, 1972
 Amendment to Section 12 to provide for
issue of preference shares:
 Amendment to the said Section now
enables banks to issue preference
shares subject to the guidelines to be
framed by RBI. However banks cannot
proceed to issue preference shares and
have to wait for RBI to prescribe guide-
lines in respect of the same.
 The amendment also provides that pro-
visions of Section 87(2)(b) of the Com-
panies Act, 1956 will not be applicable.
Thus default in payment of dividend
would not confer voting rights (in re-
spect of all resolutions placed before
the general meeting of the bank) to
holders of preference share capital of a
Bank.
 The preference shareholders in a bank
will continue to have power to vote in
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016
respect of matters affecting their rights
directly as provided in Section 87(2).
 Banks may alter the capital clause in
the Memorandum of Association such
that the capital clause contains the two
classes of shares viz., equity shares and
preference shares.
 The amendment to Section 12 also pro-
vides power to RBI for increasing the
ceiling on a phased manner for exercise
of voting rights on poll from 10% to 26%
in a bank. Earlier there was no such
power and voting rights was restricted
to 10% of the total voting rights.
 Insertion of new Section 26A for setting
up DEAF: Depositor Education and
Awareness Fund: By this section, RBI has
been empowered to establish Depositor
Education and Awareness Fund. Funds
lying in any non-operative accounts for
10 years or more or any deposits not
claimed for 10 years or more in a bank
now requires to be credited to the said
Fund within 3 months from the expiry of
10 years.
 Insertion of new Section 29A for seeking
annexure of financial statements of as-
sociate enterprise of the bank: This Sec-
tion provides power to RBI to require a
bank to annex to its financial statements
or to provide separately the financial
statements of any associate enterprise
like holding company, subsidiary com-
pany, joint venture company etc. or to
cause inspection of books of accounts of
such associate enterprise.
 Insertion of new Section 36ACA for su-
persession of powers of Board of bank:
By this Section RBI has been empo-
wered to supersede the powers of the
Board of Directors a Bank for a period
not exceeding 6 months, if affairs of a
Bank is conducted in a manner detri-
mental to the interests of public or its
deposit holders in consultation with the
Central Government. The period can be
extended however not exceeding 12
months in total.
14
 Amendments to Stamp Act, 1899 A
new Section 8E is inserted in the Stamp
Act, 1899 whereby any conversion of a
branch of a bank in to its wholly owned
subsidiary or transfer of shareholding in
a bank to a holding company in terms of
scheme or guidelines of the bank will
not be liable to stamp duty and any in-
strument transferring any property
movable or immovable or any right or
liability in relation to the above will also
be not chargeable to duty.
 Amendments to Contract Act, 1872:
Section 28 of the Contract Act, 1872
declares that Agreements in restraint of
legal proceedings to be void. The said
Section is amended so as to exempt
Guarantee Agreements executed in fa-
vour of the Bank or financial institution
for proper enforcement of guarantee
provided to banks and their redemp-
tion.
 Government of India, Ministry of Fi-
nance, Department of Revenue (CBDT),
has issued Notification No. 63/2014,
F.No.142/09/2014‐TPL dated 13th No-
vember, 2014. As per the said notifica-
tion, the Central Government made
the amendments to the Tax Savings
Bank Term Deposit Scheme, 2006. This
scheme may be called the Bank Term
Deposit (Amendment) Scheme, 2014.
 The existing limit of Rs 1,00,000/-
per financial year, in our SBI Tax Savings
Scheme 2006 has been enhanced to Rs
1,50,000/- with immediate effect.
 It has been decided by the Compe-
tent Authority that the branches should
not carry out any financial transactions
requested by the Non-NRI customers,
too, through e-mail even if the request is
made by a letter scanned as an attach-
ment.(e-cir:1115/2013-14 Dt:09/01/2014)
 Companies Act, 2013: A statistical
Snapshot
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016
Number of schedules: 7
Number of chapters: 29
Number of sections: 470
 The 2013 Act has introduced several new
concepts and has also tried to streamline
many of the requirements by introducing
new definitions.
 A few of these significant aspects are:
 One-person company: The 2013 Act
introduces a new type of entity to the ex-
isting list i.e. apart from forming a public or
private limited company, the 2013 Act
enables the formation of a new entity a
‘one-person company’ (OPC).
 An OPC means a company with only one
person as its member [section 3(1) of 2013
Act].
 Private company: The 2013 Act introduces
a change in the definition for a private
company, inter-alia, the new requirement
increases the limit of the number of mem-
bers from 50 to 200. [Section-2(68) of 2013
Act].
 Small company: A small company has been
defined as a company, other than a public
company.
(i) Paid-up share capital of which does not
exceed 50 lakh INR or such higher amount
as may be Prescribed which shall not be
more than five crore INR
(ii) Turnover of which as per its last profit-
and-loss account does not exceed two
crore INR or such higher amount as may be
prescribed which shall not be more than 20
crore INR:
 As set out in the 2013 Act, this sec-
tion will not be applicable to the
following:
• A holding company or a subsidiary com-
pany
• A company registered under section 8
• A company or body corporate governed
by any special Act [section 2(85) of 2013
Act]
 Dormant company: The 2013 Act states
that a company can be classified as dormant
when it is formed and registered under this
2013 Act for a future project or to hold an
asset or intellectual property and has no
significant accounting transaction. Such a
company or an inactive one may apply to the
ROC in such manner as may be prescribed
for obtaining the status of a dormant com-
pany. [Section-455 of 2013 Act].
 Class action suits: The 2013 Act introduces
a new concept of class action suits which can
be initiated by shareholders against the
company and auditors.
 The 2013 Act increases the limit for
number of directorships that can be held by
an individual from 12 to 15 [section 149(1) of
2013 Act].
 Key Managerial Personnel (KMP) - The
Provisions relating to appointment of KMP
includes (i) the Chief Executive Officer (CEO)
or the managing director (MD) or the man-
ager (ii) the company secretary (iii) the
whole-time director; (iv) the Chief Financial
Officer (CFO); and (v) such other officer as
may be prescribed is applicable only for
Public Limited Companies having paid up
capital more than 10 crores and Private
Limited Companies are exempted from ap-
pointment of KMPs.
 Attending at least one Board Meeting by a
director in a year is a must; else he has to
vacate his/her office.
 Financial Year - The Companies Act 1956
Act provided companies to elect financial
year. The Companies Act 2013 Act eliminates
the existing flexibility in having a financial
year different than 31 March. The 2013 Act
provides that the financial year for all com-
panies should end on 31 March, with certain
exceptions approved by the National Com-
pany Law Tribunal. Companies should align
the financial year to 31 March within two
years from 01 April 2014.
15
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016
 Eligibility age to become Manag-
ing Director or whole time Direc-
tor - The eligibility criteria for the
age limit has been revised to 21
years as against the existing re-
quirement of 25 years.
 Number of directorships held by
an individual - Section 165 pro-
vides that a person cannot have di-
rectorships (including alternate di-
rectorships) in more than 20
(twenty) companies, including ten
(ten) public companies.
 Board meetings – At least 7 days
notice to be given for Board Meet-
ing. The Board need to meet at
least 4 times within a year. There
should not be a gap of more than
120 days between two consecutive
meetings.
 Appointment of Statutory Audi-
tors- Every Listed Company can
appoint an individual auditor for 5
years and a firm of auditors for 10
years. This period of 5 / 10 years
commences from the date of their
appointment. Therefore, those
companies who have reappointed
their statutory auditors for more
than 5 / 10 years have to appoint
another auditor in their Annual
General Meeting for year 2014.
 Corporate Social Responsibility
(CSR) – the company has to consti-
tute a CSR committee of the Board
and 2% of the average net profits
of the last three financial years are
to be mandatorily spent on CSR ac-
tivities by an Indian company if any
of the following criteria is met:
 Net worth of Rs.500 crores or
 Turnover of Rs. 1000 crores or
more or
16
 Net profit of Rs. 5 crores or more
 Financial statements - Financial State-
ments are now defined under the Act as
comprising of the following. All compa-
nies (except one person Company, small
company and dormant company)are
now mandatorily required to maintain
the following, which may not include
the cash flow statement) –
 A balance sheet as at the end of
the financial year
 A profit and loss account / an in-
come and expenditure account for
the financial year, as the case may
be
 Cash flow statement for the finan-
cial year
 A statement of changes in equity (if
applicable)
 Any explanatory note annexed to,
or forming part of, any document
referred to in sub-clause (i) to sub-
clause (iv)
 CVA: Credit valuation adjustment
 HPTF: High Power Task Force Committee
 DEAF: Depositor Education and awareness
Fund
 SPV: Special Purpose Vehicle
 RTI - QM & TS:RTI Query Management
and Tracking System
 FATCA: Foreign Accounts Tax Com-
pliance Act
 CRS: Common Reporting Standards
 INDIAN STAMP ACT: VALIDITY PE-
RIOD FOR USE OF STAMP PAPER: The
Hon'ble Supreme Court has considered le-
gal issue whether a stamp paper purchased
more than six months prior to the date of
execution of a document is valid or not
based on the case of Thiruvengada Pillai Vs
Navneethammal in WP (Civil) No 290 of
2001 decided on 19.02.2008. The Hon'ble
Apex Court, while deciding the issue in af-
firmative observed that the Indian Stamp
Act nowhere prescribes any expiry date for
use of stamp paper. The Section 54 merely
 Quick Success Series
Legal Aspects Of Banking
Updated up to 31st October 2016
provides that a person possessing any
stamp paper for which he has no imme-
diate use (which is not spoiled or rendered
unfit or useless) can seek refund of the val-
ue thereof by surrendering such stamp pa-
per to the Collector provided it was pur-
chased within the period of six months
next preceding the date on which it was so
surrendered. The stipulation of the period
of six months prescribed in Section 54 ibid
is only for the purpose of seeking refund of
the value of unused stamp paper, and not
for the use of stamp paper, to use it within
six months. Therefore, there is no impedi-
ment for user of stamp paper purchased
more than six months prior to the date of
execution of a document.
Lok Adalat is a forum where disputes pend-
ing in the court of law, or at pre-litigation
stage, are settled amicably. Lok Adalat has
been given statutory status under the Legal
Services Authorities Act, 1987. An award
made by the Lok Adalat is deemed to be a
decree of a Civil Court and is final and bind-
ing on all parties. Settlement of cases
through Lok Adalat has certain advantages
over other methods of recovery. Monetary
ceiling of cases to be referred to the Lok
Adalat organized by Civil Courts is Rs. 20
lacs. Further, our branches can participate
in Lok Adalats to be organised by
DRTs/DRATs irrespective of the amounts
involved in the cases. (Standard Operating
Procedure is laid down in e.cir.845/2015-16
dt:05/10/2015)
To recover Bank’s dues, suits before Civil
Courts may be filed when the amount of
total debt due from the borrowers is less
than Rs.10 lac. Documents should not be
time barred and should be in order. Civil
suit is to be filed immediately on approval
but in any case within a maximum period
of 3 months from the date of approval.
Plaint is to be signed by the authorized
Branch official. Demand Draft for court
fees, process fees and copying fees has to
be prepared. Affidavit of Branch official has
17
also to be filed along with the plaint, in
duplicate. The case number allotted by the
Court has to be obtained from the Court by
the Branch. (Standard Operating Procedure
is laid down in e.cir.940/2015-16
dt:28/10/2015)
 Government of India has levied Swachh
Bharat Cess @0.5% on value of all the
taxable services from 15-11-2015. Effec-
tive rate of service tax would be 14.5%.
GLOSSARY
AGNATES
A person is said to be “agnate” of another
if the two are related by blood or adoption
wholly through males. If there are no heirs
of Class I and Class II, then upon the “ag-
nates” of the deceased can claim.
COGNATES
One is a “Cognate” of another, if the two
are related by blood or adoption, but not
wholly through males. If there are no ag-
nate, then upon the “Cognates” of the de-
ceased can claim.
CLASS I HEIRS
Son, daughter, widow, mother,
son/daughter of a predeceased
son/daughter.Son/daughter of a prede-
ceased son of a predeceased son, or widow
of a predeceased son of a predeceased
son.
CLASS II HEIRS
Father, son’s daughter’s children, daugh-
ter’s grand children, children of brothers
and sisters etc.
 Quick Success Series - Technology
 April 24, 2010


 Quick
QUICK SUCCESS SERIES, an initiative of
SBLC Deoghar to facilitate the preparation
of promotion seeking personnel of our

 Success Bank, appears to have succeeded in its ob-

jective to a large extent, as the readers are
still approaching us for its revi-

 Series sion/updation despite availability of plenty

of other study materials.
  We would not have been able to sustain
this unique effort of ours, without the ac-
tive support and continuous encourage-
ment of our DGM cum Circle Development
officer Sri Bijayananda Padhi. We are deep-
ly indebted to him for his co-operation and
guidance.
 Sri Rakesh Roshan, Chief Manager
(Training), Sri Kumar Priyank, Chief
Manager (Training),Sri Sanjay Kumar
 Safe Custody, Security, Sharma,Manager(Training)and Sri Jitendra
Kumar Arun, Manager(Training) at this
 Safe Deposit Article SBLC have owned up this project and have
taken pains to keep it relevant to the users
 & by updating & improving it at half yearly
interval.

 Safe Deposit Locker  Though every care has been taken while
updating the contents, we request our
readers to point out any lapses at the earli-
est. Needless to mention this book is not a
substitute of circular instructions issued by
the Bank from time to time. For detailed
guidelines please refer to Bank’s latest cir-
culars. Soft copy of this edition is available
on our ftp://10.151.51.33 in QSS folder and
on SBI TIMES>PATNA CIRCLE>SBLC Deog-
har site.

 Team SBLC Deoghar is humbled by the
response and recognition, it is receiving
from the readers within and beyond the
circle. We wish the readers grand success in
their endeavours.
 Sri Abhishek Kumar Sharma
 Assistant General Manager,
 State Bank Learning Centre,
 Deoghar- 814112
 Phone- 06432-232895
 Fax - 06432-231810
 e-mail: agmstc.deoghar@sbi.co.in

 Updated By: Rakesh Roshan

 Chief Manager (Training)
 SBLC Deoghar
 Mobile- 9162370185
 Updated Upto
st
 Email- r.roshan@sbi.co.in  31 October 2016

 [Type text] Page 1

 Quick Success Series
Safe custody, security Safe deposit articles & Safe Deposit Lockers
31st October 2016
 Safe Custody
 Safekeeping of Shares, Bonds, Govt Se-
curities, TDRs, Magnums etc entrusted by cus-
tomers to the Bank is known as Safe Custod
 Relationship between Customer & Banker
in case of Safe Custody: Bailer & Bailee
 Scrips accepted under Safe Custody are
entered in: Safe Custody Ledger
 Separate folio for each of the Govt. Secur-
ities, Shares etc are maintained in Safe Cus-
tody Register to know at any time the number
& value of the different types of scrips held as
safe custody
 Safe Custody/ Security are balanced once
in Half Year
 Bearer Bonds, IVPs, TDR/STDR are held in
Joint Custody of Manager (cash) & Branch
Manager
 When a Scrip is withdrawn for renewal, it
will be entered in :Securities Ex-Custody Reg-
ister
 When a Govt Security is sent to PDO for
interest collection, it will be entered in
:Interest realized on securities register
 When securities are sent for sale under
instructions from the customer, they are en-
tered in: Securities and Shares Purchase &
Sale Register
 Safe custody account has to be opened in
the same name as found in the scrip
 Safe Custody A/c in the name of Minor
can be opened only in respect of:TDR and not
other securities
 In case of joint A/cs, COS 141R must be
obtained regarding delivery either to the ac-
count holders jointly or to one or more of
them or the survivor(s)
 Safe Custody Receipt (COS 139 A) is issued
to the depositor as acknowledgement of
scrips for safe custody. It is required at the
time of delivery of scrips to the depositor. In
case of loss of receipt, indemnity is required
to be obtained before delivery of the scrips.
 Sometimes, a Memorandum of Securities
(COS 339) is given to the depositor. It is a
mere narration of the fact of the deposit on a
particular date. Therefore, no indemnity is re-
quired in case it is lost.
 Memorandum of securities can be issued
in respect of both security & safe custody ac-
 2
counts whereas safe custody receipt is issued
only in respect of Safe custody accounts.
 Safe Custody scrips must be delivered to
the depositor only against his acknowledge-
ment on COS 49 after verifying his signature.
 Securities and shares held by the bank in
safe custody in the names of deceased. Con-
stituent must ordinarily be delivered to the
legal representative of the deceased. Without
production of legal representation on affida-
vit-cum-indemnity basis, as per discretionary
powers given to different functionaries.. For
this purpose, the value of the securities,
shares etc. will be computed ay market value
or redemption value whichever is higher.
 If all the legal heirs do not join in execut-
ing the indemnity or if there is a dispute be-
tween them, the Bank can insist on suitable
legal representation. Since Indian Succession
Act covers debts & securities, the scrips held
under Safe Custody A/c can be delivered
against succession certificate.
 The Safe Custody in CBS deals with two
major functions viz.:
i)Safe Custody of articles/ scrip
ii)Security Register/ Ledger and mainte-
nance of Gold ornaments.
 The Safe Custody in CBS handles:
 Issue of Safe Custody Receipt to the cus-
tomers
 Printing of COS 49
 Ex-custody Register functions
 Types of Safe Custody:
 1. Safe Custody of Articles/ Envelopes for
regular customers
 2. Safe Custody of Collateral like paper-
based Securities given by customers as
Collateral. It is implemented in 4 types of
Collaterals:
a. Gold Securities
b. Shares Securities
c. Paper-based Securities
d. TDR Securities
 Quick Success Series
Safe custody, security Safe deposit articles & Safe Deposit Lockers
31st October 2016
 Securities
 All scrips like TDRs, STDRs, NSCs, KVIPs,
IVPs and Shares which are offered as security
for obtaining any loan constitutes-Securities
 Except IVPs/TDRs/STDRs all other securi-
ties are kept under: Single custody.
 Scrips accepted as security are entered in
Securities Ledger & Securities Register
 TDRs/STDRs accepted as security for ad-
vance are entered in Term Deposit Joint Cus-
tody Register
 Life Insurance Policies accepted as securi-
ty for advance should be entered in Miscella-
neous Security Register
 In case of death of a customer having a
security A/c, the Bank can continue to collect
the interest and credit it to his overdraft A/c as
the Bank’s Agency is coupled with interest.
However, in respect of a safe custody a/c, the
mandate will lapse on the death of the cus-
tomer
 Safe Deposit Article
 Safekeeping of articles other than parcels
received on account of L.S.C. bills, belonging to
customers is Safe Deposit Article
 Relationship between Customer & Banker
in case of Safe Deposit Article: Bailer & Bailee
 A receipt (COS 138-R) is issued to the de-
positor stating “Received a sealed cover / box
the contents of which are unknown but said to
contain…..”. The same is recorded on the
packet / box also. In case of loss of receipt, de-
livery of the articles can be made only against
indemnity.
 Packets containing ‘Will’ must be super
scribed by the maker-depositor with the le-
gend “Deliverable to Sri ………………………. on
application”. Such packets should not contain
stipulations like “please deliver to Sri ……….. on
my death” as it would be difficult to fulfill such
directions. Also, only the packet containing the
‘Will’ will be delivered on proof of death of the
depositor and not any other packet kept as
safe deposit. Other articles, if any will be deli-
vered to legal representatives on production of
probate.
 Packets of duplicate keys of other banks
etc should be accepted only from and deliver-
able to the persons authorized to handle such
 3
keys. Such packets are kept free of charge by
convention. Normal charges are recovered
from LIC and Central and State Warehousing
Corporations
 Nomination facility is available. Only one
individual can be named as nominee. Nomi-
nation is not available in case of joint accounts
(viz:E or S, A or S) with survivorship benefit as
in case of lockers.
 In case nomination is not available Safe
Deposit Articles may be delivered on affidavit
cum indemnity basis.
 If all the legal heirs do not join in execut-
ing the indemnity or if there is a dispute be-
tween them, the Bank can insist on suitable le-
gal representation. Indian Succession Act cov-
ers only debts & securities. It is not applicable
to safe deposit articles or items kept in lockers.
Therefore, Safe Deposit articles standing in the
name of a deceased depositor can be delivered
only against production of a probate or a letter
of administration. However, In the states of UP
& MP, succession certificate is applicable to
Safe deposit articles and safe deposit lockers
also.
 Safe Deposit Lockers
 RBI has issued revised guidelines on Safe
Deposit Lockers/Safe Custody of Articles based
on the recommendations of the Committee on
Procedures and Performance Audit on Public
Services.
 Relationship of the Banker and the hirer
in case of lockers -Licensor & licensee, estab-
lished by stamped agreement (COS 404).
 The customer puts his signature in “LOCK-
ER ACCESS REGISTER” when he has to operate
the locker.
 If the locker is in joint names, mandate of
the operation should be verified and access to
the hirer(s) should be allowed as per mandate.
If a notice of revoking of mandate of operation
is received, the access should be allowed
jointly. The revocation letter may be given by
any one of the joint hirers.
 The Bank has particular Lien & can recov-
er the arrears in rent by sale of the contents af-
ter giving adequate notice. Controlling authori-
 Quick Success Series
Safe custody, security Safe deposit articles & Safe Deposit Lockers
31st October 2016
ty’s prior permission has to be obtained in
each case.
 For the unrented or surrendered lockers,
both the keys (custodian key and hirers’ key)
should not be held by the same official. Ade-
quate arrangements should be made for safe
and separate custody of both the keys.
 Multiple Locker facility can be availed by
the customer also, subject to the availability of
the locker at the Branch. Branches should
strictly follow RBI instructions on risk assess-
ment of the customers ((e-cir:645/2012-13
dt:01/10/2012),e-cir:655/2012-13
dt:04/10/2012.
 More than ordinary care should be taken
while allotting more than one Locker to a cus-
tomer either singly or jointly. .(e-cir:414/2013-
14 dt:25/07/2013)
 The officer in charge should check the
locker room immediately after the locker hirer
has used it to ensure that hirer has not left any
valuable belongings outside locker inadver-
tently and he/she has properly closed the
locker door.
 Locker cannot be allotted to a minor nei-
ther as a single nor a joint account with other.
 Locker can be allotted in the name of
blind/visually impaired person(s), literate or il-
literate, single or joint operation with other
person permitted
 A locker can also be rented out to a Non
Resident
 Power of Attorney holder can operate the
Locker but cannot surrender the locker
 In case of Joint A/c (E or S), locker can be
surrendered and the account closed by both of
them only.
 7 days notice should be given before clos-
ing Locker A/c
 Lockers to be allotted on first come first
serve basis, provided the applicant is eligible
for the same and is complying with the KYC
norms without insisting for deposits.
 However To ensure prompt payment of
rent, Branch should obtain a STDR from new
hirers that would cover 3 years rent and the
charges for break open in case of an eventuali-
ty.
 4
 80% of the lockers to be issued on First
come first basis whereas 20% may be issued as
per BM’s discretion
 New Clause to be incorporated in Locker
Agreement
“In case the locker remains un-operated
for more than one year, the bank would
have right to cancel the allotment of the
locker and open the locker, even if the
rent is paid regularly” (for the time being
a suitable rubber stamp may be used)
(Rationale: To enable the bank to go for
break open of non operated lockers for
more than one year belonging to the High
Risk category customers and 3 years for
medium risk category customer after giv-
ing a 15 day notice, even though the lock-
er rent has been paid regularly. Further,
branch should ask the locker hirer to give
in writing, the reasons why he / she did
not operate the locker for such a long pe-
riod. In case the locker-hirer has some ge-
nuine reasons as in the case of NRIs or
persons who are out of town due to a
transferable job etc., branch may allow
the locker hirer to continue with the lock-
er) .(e-cir:414/2013-14 dt:25/07/2013)
 For New Hirers: Locker rent will be paya-
ble in advance up to 31st March of current
financial year on pro rata basis together with
12 month rent of the following year and on
2nd April every year thereafter. Registration
Charge (one time)- Rs. 843/- should also be
charged.
 Branch should provide a copy of the
locker agreement regarding operation of the
locker to the locker hirer at the time of al-
lotment of the locker.
 For Existing hirers: Locker rent will be
payable up to next 31st March and on 2nd
April every year thereafter.
 Procedure to be followed in case of non-
payment of rent
 i)Reminder sent on due date if no balance in
the A/c
 ii)If not paid, another reminder after 3
months
 iii)Notice on COS 405 after 6 months
 iv)Notice on COS 406 after 1 year
 Quick Success Series
Safe custody, security Safe deposit articles & Safe Deposit Lockers
31st October 2016
 v) Controlling authority’s approval to be ob-
tained for breaking open the locker
 vi)Locker should be broken open in presence
of a committee which may comprise of Notary
Public, Bank’s Advocate and 5 independent
witnesses
 vii)Inventory of contents (Panchnama) to be
prepared in presence of witnesses
 viii)Contents to be valued by an approved
Govt. Valuer and kept on record
 ix)Contents are kept as a Safe Custody item
under joint custody of Joint Custodians
 Access to the Safe Deposit Lockers/Return
of Safe Custody Articles to Survi-
vor(s)/Nominee(s)/Legal heir(s)
( e.cir:511/2007-08 dt:22/11/2007)
 Access to the Safe Deposit Lockers/ Return of
Safe Custody Articles (with survivor/nominee
clause):
 (a) When it is reported that the locker hirer is
dead, a noting should be made in the locker
ledger, key register, systems and on the
locker itself.
 (b) If the sole locker hirer nominates a per-
son, branch should allow access of the locker
to such nominee and liberty to remove the
contents of the locker in the event of the
death of the sole locker hirer. In case the
locker was hired jointly with the instructions
to operate it under joint signatures and the
locker hirers nominate one or more person(s)
as nominee(s), in the event of death of any of
the locker hirers, the branch should give ac-
cess of the locker and the liberty to remove
the contents jointly to the survivor(s) and
the nominee(s). In case the locker was hired
jointly with survivorship clause and the hirers
instructed that the access of the locker
should be given over to 'either or survi-
vor’,'anyone or survivor,' 'former or survivor'
or according to any other survivorship clause,
branch should follow the mandate in the
event of the death of one or more of the
locker hirers. However, branch should take
the following precautions before handling
over the contents.
 Branch should exercise due care and caution
in establishing the identity of the survivor(s)/
 5
nominee(s) and the fact of death of the
locker hirer by obtaining appropriate docu-
mentary evidence. The genuineness of the
documents must be ensured.
 (ii) Branch should make diligent effort to find
out if there is any order from a competent
court restraining the branch from giving ac-
cess to the locker of the deceased; and iii)
Branch should make it clear to the survi-
vor(s)/nominee(s) that access to locker/safe
custody articles is given to them only as a
trustee of the legal heirs of the deceased
locker hirer i.e. such access given to him/ her
shall not affect the right or claim which any
person may have against the survi-
vor(s)/nominee(s) to whom the access is
given. Similar procedure should be followed
for return of articles placed in the safe cus-
tody of the branch. Branch should note that
the facility of nomination is not available in
case of deposit of safe custody articles by
more than one person.
 (c) Branch should note that since the access
given to the survivor(s)/nominee(s), subject
to the foregoing conditions, would constitute
a full discharge of the bank's liability, insis-
tence on production of legal representation
is superfluous and unwarranted and only
serves to cause avoidable inconvenience to
the survivor(s)/nominee(s) and would, there-
fore, invite serious supervisory disapproval.
In such case, therefore, while giving access to
the survivor(s)/nominee(s) of the deceased
locker hirer/depositor of the safe custody ar-
ticles, the branch should not insist on pro-
duction of succession certificate, letter of
administration or probate, etc., or obtain any
bond of indemnity or surety from the survi-
vor(s)/nominees(s).
 Access to the Safe Deposit Lockers/ Return of
Safe Custody Articles (without survi-
vor/nominee clause):
There is an imperative need to avoid incon-
venience and undue hardship to legal heir(s)
of the locker hirer(s). In case where the de-
ceased locker hirer had not made any nomi-
nation or where the joint hirers had not given
any mandate that the access may be given to
one or more of the survivors by a clear survi-
 Quick Success Series
Safe custody, security Safe deposit articles & Safe Deposit Lockers
31st October 2016
vorship clause, following procedure may be
adopted.
(i) In case of death of a sole locker hirer
(where there is no nomination) and there is a
valid will, probate may be obtained and ac-
cess may be given to the execu-
tor/administrator. In other cases, access may
be given to the legal representative of the
deceased. In such cases death certificate and
proof of the legal representation should be
obtained.
(ii) Where there are joint locker hirers and as
per the contract of locker hire, the locker is
to be operated jointly and there is no nomi-
nation, if one of the hirers dies, access may
be given to the survivor jointly with the legal
heirs of the deceased hirer. In such cases,
death certificate and proof of the legal repre-
sentation should be obtained.
(iii) Where there are joint locker hirers having
a locker with ‘either or survivor’ clause
(nomination not allowed), access may be
given to the survivor in case of death of one
of the hirers. In such cases, only death certifi-
cate should be obtained.
(iv) Where there are joint locker hirers and
all the hirers die and where there is no nomi-
nation, access may be given jointly to the le-
gal heirs of all the deceased hirers (or the ex-
ecutors/administrator, if appointed).In such
cases, death certificate and the proof of legal
representation should be obtained.
 Branch should be guided also by the provi-
sions of Sections 45 ZC to 45 ZF of the Bank-
ing Regulation Act, 1949 and the Banking
Companies (Nomination) Rules, 1985 and the
relevant provisions of Indian Contract Act
and Indian Succession Act.
 Branch should prepare an inventory before
returning articles left in safe custody/ before
permitting removal of the contents of a Safe
Deposit Locker. The inventory shall be pre-
pared in the presence of two officers of the
branch and two independent witnesses in
the appropriate forms as circumstances re-
quire (Specimen copies of the forms are en-
closed as Annexures to the circular).
 In case the nominee(s)/ survivor(s)/ legal
heir(s) wishes to continue with the locker,
branch may enter into a fresh contract with
 6
nominee(s)/ survivor(s)/ legal heir(s) and also
adhere to KYC norms in respect of the nomi-
nee(s) / legal heir(s). Branch is not required
to open sealed/closed packets left with it for
safe custody or found in locker while releas-
ing those to the nominee and surviving locker
hirer/ depositor of safe custody article.
 In order to facilitate the identification of Safe
Deposit Lockers on the basis of locker keys,
branch should arrange to emboss on all
locker keys, an identification code which
could indicate the bank and the branch pro-
viding the locker. Accordingly, the following
procedure will be followed:
i) In respect of purchase of new locker cabi-
nets for the branch, the supplier of locker
cabinets should engrave all the keys of the
lockers with abbreviation of State Bank of In-
dia and five digit branch code e.g. SBI/00001
as identification code. Fresh locker cabinets
should not be purchased without identifica-
tions marks engraved on the relative keys.
ii) As regards existing hirers/ lockers in use,
branch should arrange for sending letters to
the existing locker hirers informing them to
remain present in the branch premises on
predetermined time and date and at the
same time requesting the officials of the
vendor company of the locker cabinet to de-
pute technician for doing the engraving work.
The identification code would be engraved
on the locker key in the presence of the
locker holder only.
 Introduction to SDV (Locker) in B@ncs24:
 The SDV Module covers opening of SDV ac-
count, operation of locker, collection of rent
and surrender of Lockers. However, Locker
Access Register is to be maintained manually.
Each SDV is another a/c in CBS. Every Locker
Number will be an account in Core. CDC cre-
ates and generates an account number for
each Locker. The branch will then allot an
SDV account number to the locker lessees.
 The branch has to create cabinets and lockers
thereof by using a separate menu-‘Safe De-
posit Vault’. Cabinet creation and Locker
creation can be done only by officers with
user type of 40, 45, 50 or 60. This is a one-
time activity.
 Quick Success Series
Safe custody, security Safe deposit articles & Safe Deposit Lockers
31st October 2016
 If the status of the Locker is ‘Inactive’, it can-
not be allotted to anybody.
 When a customer wishes to avail of Locker
facility, an SDV account is to be created. Pre-
conditions: CIF Number for the customer
should pre-exist in the system.
 When the customer wishes to convert SDV
account as joint account, CIF of joint account
holder is to be created if not existing.
 In the Field ‘Accessing Customer’, give the CIF
of the customer (s), who is/ are being in-
cluded as a Joint Account Holder (s).
 In case of giving access to Power of Attorney
Holder, input the CIF of the Power of Attor-
ney Holder’ in the Field ‘Accessing Customer’,
under ‘Power of Attorney’.
 The Locker status may have to be changed
when the customer wants to discontinue the
Locker facility or when he/ she lose the
Locker key. The status of locker is changed to
– ‘Cut open’ when there is a need to break
open the Locker.
 When the customer surrenders locker, the
locker key should be exchanged with an
available locker as a security measure. After
physically interchanging the keys, the details
are entered in the system
 All Locker keys to be embossed with iden-
tification code which could indicate the Bank
and Branch which has rented out the locker.
(Rationale: To facilitate identification of Safe
Deposit Locker on the basis of locker keys by
the Income-Tax and other investigating au-
thorities)
 Keys of vacant and surrendered lockers
should be kept with the person other than
person holding custodian (master) key
 Locks of surrendered lockers should be in-
terchanged among the surrendered lockers
before allotting to a new hirer.(Rationale: To
ensure against any attempt by previous locker
hirer to try to open/operate the surren-
dered locker)
 Search warrant for Locker issued by In-
come Tax Department should bear Signature
of official not below the rank of Commissioner
of I.T. of search authority. (Sec 132of I tax act)
 In case of search, hirer’s presence is not a
must. He/ She may be invited to witness the
search
 7
 In the lockers hired in joints names, if key
is reported lost, the advising letter should be
signed by all the hirers.A service charge
ofRs..750/-+ST has to be recovered from hirer,
in addition to the actual expenditure incurred
for breaking open the locker and changing the
lock by manufacturers of lockers
 Nomination facility is available under Sec
45 ZE of Safe Deposit Lockers.
 Only one individual can be named as no-
minee in case of locker in single name
 In case of Joint operation without survi-
vorship benefit, each locker holder can nomi-
nate a person
 Nomination is not available in case of
joint accounts with survivorship benefit.
 In case nomination is not available items
in Safe Deposit Locker of a deceased person
may be delivered to legal heirs on affidavit
cum indemnity basis.
 If all the legal heirs do not join in execut-
ing the indemnity or if there is a dispute be-
tween them, the Bank can insist on suitable
legal representation. Indian Succession Act
covers only debts & securities. It is not appli-
cable to articles kept in lockers. Therefore,
Safe Deposit Lockers standing in the name of
a deceased depositor can be delivered only
against production of a probate or a letter of
administration. However, in the states of UP
& MP, succession certificate is applicable to
Safe deposit lockers also.
 For Latest Service Charge Revised w.e.f
01.01.2016
(e.cir:1202/2015-16 dt:31/12/2015)
Registration Charge (one time)- Rs 500/-
+ST
Annual Rent New Size/ Type:
Small:Size A:125 x 175 x 492
Size B:159 x 210 x 492
(Metro & Urban Centres:Rs..1100/-)+ST
(Semi-urban & Rural:Rs..800/-)+ST
Medium:
Size:C:125X352X492;
Size:D:189X263X492
Size:E:159x423x492
Size H1:325X210X492
Metro & urban Centres:Rs..2800/-+ST
Semi-urban & Rural:Rs..1800/-+ST
 Quick Success Series
Safe custody, security Safe deposit articles & Safe Deposit Lockers
31st October 2016
Large:
Size:F:278X352X492
Size:G:189X529X492
Size:H:325x423x492
Metro & Urban Centres:Rs..6000/-+ST
Semi-urban & Rural:Rs..5000/-+ST
Extra large:
Size L:404X529X492
Size:L1:385X529X492
Metro & Urban Centres:Rs..8000/-+ST
Semi-urban & Rural:Rs..7000/-+ST
 No.of Locker visits per year: 12 visits free:
thereafterRs..100/-+ST. per visit to be
recovered manually.**
 Locker Rent Overdue Charges:
(TO BE RECOVERED MANUALLY)
1st Quarter 10% of annual rent.
2nd Quarter 25% of annual rent
3rd Quarter 40% of annual rent
1yr 50% of annual rent.
For More than 1 Yr-Locker to be broken
(overdue period is classified as under:
S.I. set up on say, 1st April, 14 for Advance
rental for the financial year 2014-15, (Overdue
charges @10%/25%/40%/50% of annual rent
to be levied on 1st July,2015/1st October
2015/1st January2016 / 1st April 2016 respec-
tively, if remaining unpaid t that date.)
(e.cir:1202/2015-16 dt:31/12/2015)
 Safe custody charges
a) Scrips (for each scrip)-Rs..150/- +ST per
scrip. Min.Rs..300/-+ST p.a. or part thereof
b) Sealed cover (for eachcover)-Rs..300/-+ST
per cover p.a. or part thereof.
c) Bank’s own deposit receipt- Nil
 Safe deposit articles
(To Be Recovered Manually)
Rs..600/- +ST one time charge for all kinds of
Safe Deposit Articles
Additional charge for Envelope (p.a) -Rs..150/-
+ S.T.
Additional charge for Packet:Rs..600/-+ST p.a.
Additional charge for Large packet / Box –
Rs..1200+S.T. p.a. (100 cm. max)
Beyond thatRs..50/- per. cm.+ST
 8
 In case of loss of key a service charge
ofRs..750/-+ST is to be recovered from
the hirer of the locker in addition to the
actual expenditure incurred for breaking
open the locker and changing the locker
key by the manufacturer of locker.
 NOMINATION FORM SL 1
(By Sole Hirer of Safety Locker)
Nomination under Section 45ZE of the Banking
Regulations Act, 1949 and Rule 4(1) of the Bank-
ing Companies (Nomination) Rules, 1985 by Sole
Hirer in respect of Safety Locker
 NOMINATION FORM SL 1A
(By Joint Hirers of Safety Locker)
Nomination under Section 45ZE of the Banking
Regulations Act, 1949 and Rule 4(2) of the Bank-
ing Companies (Nomination) Rules, 1985 by Joint
Hirers in respect of Safety Locker
 NOMINATION FORM SL 2
(For Cancellation of Nomination of Safety Locker)
Cancellation of nomination under Sections 45ZE
and 52 of the Banking Regulations Act, 1949 and
Rule-4(5) of the Banking Companies (Nomination)
Rules, 1985 in respect of Safety Lockers
 NOMINATION FORM SL 3
(Variation of Nomination by Sole Hirer of Safety
Locker)
Variation of nomination under Sections 45ZE and
52 of the Banking Regulations Act, 1949 and Rule
4(6) of the Banking Companies (Nomination)
Rules, 1985 by Sole Hirer in respect of Safety
Locker
 NOMINATION FORM SL 3A
(Variation of Nomination by Joint Hirers of Safety
Locker)
Variation of nomination under Sections 45ZE and
52 of the Banking Regulations Act, 1949 and Rule
4(7) of the Banking Companies (Nomination)
Rules, 1985 by Joint Hirers in respect of Safety
Locker.
 Quick Success Series : P Seg Loan Products
December 31, 2016

QUICK SUCCESS SERIES is an initiative of

SBLC Deoghar to facilitate the preparation
of promotion seeking personnel of our
Quick Success Series Bank, appears to have succeeded in its
objective to a large extent as the readers
are still approaching us for its
revision/updation despite availability of
plenty of other study materials.

We would not have been able to sustain

this unique effort of ours, without the
active support and continuous
encouragement of our DGM cum Circle
Development officer Sri Bijayananda
Padhi. We are deeply indebted to him for
his co-operation and guidance.

P SEG LOAN PRODUCTS Sri Kumar Priyank, Chief Manager

(Training) and Sri.Sanjay Kumar
Sharma,Manager (Training)Sri J.K.Arun,
Manager (Training) at this SBLC have
owned up this project and have taken
pains to keep it relevant to the users by
updating & improving it at half yearly
interval.

Though every care has been taken while

(UPDATED UP TO 31st December , 2016)
updating the contents, we request our
readers to point out any lapses at the
earliest. Needless to mention that this
book is not a substitute of circular
instructions issued by the Bank from time
to time. For detailed guidelines please
refer to Bank’s latest circulars. Soft copy of
this edition is available on our
ftp://10.151.51.33 in QSS folder and on SBI
TIMES>PATNA CIRCLE>SBLC Deoghar site.

Team SBLC Deoghar is humbled by the

response and recognition; it is receiving
from readers within and beyond the circle.
Our Team wishes the readers grand
success in their endeavors.

Abhishek Kumar Sharma

Assistant General Manager,
State Bank Learning Centre,
Updated By: Deoghar- 814112
Sanjay Kumar Sharma Phone- 06432-232895
Manager Training, SBLC Deoghar Fax - 06432-231810
Mobile- 9934435855 E-mail: agmstc.deoghar@sbi.co.in
e-Mail- sanjay.kr.sharma@sbi.co.in

Updated by Sanjay Kr.Sharma, Manager(Trg) Page 1

 Quick Success Series : P Seg Loan Products
December 31, 2016
Home Loan
(Note: Based on Master Circular Home Loans as on
31/08/2015 (e-Circ1064/2016-17dt.11Nov.2016) and e-
circular published after that date.)
Purpose:
purchase a plot of land for purpose of construction of
house
ii. Purchase /construct a new house/flat
iii. Purchase an existing (old) house / flat or extend an
existing house
iv. Repair or renovate an existing house /flat
v. takeover of Home Loans from other Banks/HFCs/FIs
vi. furnishing/interiors as part of the project cost.
vii. re-imbursement of investment made from own
resources during the preceding twelve months for
purchase of property/construction/repairs/extension
of house (except in case of purchase of vacant plots)
(Home Loan LTV to be used).
Eligibility: Individual(s) over 18 years of age with
steady source of income, including persons engaged in
agriculture & allied activities. In case the property
holder is not having independent source of income, the
Income earning near relative may join as co-borrower/
guarantor for the loan and his or her income can be
taken for arriving at loan eligibility.
Loan Tenor/ Repayment Period: Up to 30 years subject
to liquidation of the Home Loan before the borrower
reaches the age of 70 years.
For Commercial Real Estate (CRE) and Individuals
engaged in business- maximum loan tenor- 25 years.
Maximum Age: Maximum age limit for a Home Loan
borrower, i.e. the age by which the loan should be fully
repaid is fixed at 70 years. Sanctioning authority is,
however, left with discretion to sanction loans to
individuals above the age of 70 years, provided son /
daughter / spouse, who is a legal heir and preferably
below the age of 50 years, with sufficient income for
servicing the loan repayment, joins as co-borrower /
guarantor. Loan repayment in such cases should be
made through a joint deposit account /current account
in the names of all the joint borrowers / guarantors. In
such cases, no of co-borrower may increase more than
three due to inclusion of legal heirs.
No. of Co-Borrowers: maximum 3 including
spouse/children/parents/siblings. AGM Region/ Branch
may relax provided Repayment is made through a Joint
A/C of borrowers.
Eligible Income for arriving at maximum loan amount:
For Salaried Customers: salary income + other incomes
which are either appearing in the Salary Slip or/and
Form-16 or/and IT Return such as variable pay,
performance/production linked incentives, bonus,
overtime allowance, reimbursement of expenditure,
etc. may be included in the salary income on the basis
of the average of the last two years after excluding
taxes and statutory deductions
Updated by Sanjay Kr.Sharma, Manager(Trg)
For Non-Salaried Customers: Net Annual Income
appearing in the latest Income Tax Return (lat 3 yrs ITR
to be obtained) +Depreciation (average of last 3 years
or depreciation for the current year whichever is
lower). Any disproportionate variation, say more than
20%, in current year income as compared to the
previous year should be examined judiciously and the
Sanctioning authority should satisfy themselves about
the reasons for such major variations. (Ref. e-Circular
NBG/PBU/HL-HOME LOANS/39/2014-15 dt 10.02.2015)
For Agriculturist: NAI will be arrived at, based on the
nature of their activity (e.g. farming, dairy, poultry,
orchards, etc.), land holding, cropping pattern, yield
etc. and average level of income derived there from in
the area
Income of spouse/children/parents/ siblings may be
considered for arriving at maximum loan amount
provided they stand as co-borrower/ Guarantor.
Expected rent accruals: may be reckoned, subject to
maximum amount <= applicant’s Net Monthly
Income(NMI)/Net Annual Income (NAI)
Not to be considered in case of ‘SBI-Realty’ Home
Loans and ‘SBI Yuva’ Home Loan
EMI/NMI Ratio:
NAI (in Lakhs) EMI/NMI Ratio
<=1.20 20%
>1.20 <=3.00 30%
>=3.00, <= 5.00 50%
>=5.00, <= 8.00 60%
>8.00, <= 10.00 65%
>10.00 70%
Discretionary power for relaxation- Nil
Limit enhancement due to SBI Life premium : Margin
on premium = 0, Int Rate= same as Home Loan,
EMI/NMI= Increase due to SBI Life Premium permitted.
Use of LOS- Mandatory
LTV Ratio: (e-cir-1056/2015 – 16 dt 23/11/2015)
Home Loan Amount (LTV) Ratio
Loan up to 30 Lakhs 90%
Loan above 30 up to 75 Lacs 80%
Loan above 75 Lakhs 75%
Discretionary power to for concessions in LTV- NIL
Included- one time cost of additional amenities & other
costs related to the property which are permanent in
nature and add up to the realizable value of the
security/property (viz. Township Corpus Fund, One
time maintenance fund/deposit/corpus, Development
Charges, Electrical fittings, one time Generator
Charges, Club House Membership charges,
Electricity/Water/Sewerage Board one time
charges/deposits, VAT & Service Tax, Premium for
Insurance of mortgage Property etc.) Stamp duty,
Registration Charges and other documentation charges
< Rs 10 LaKhs,
Excluded- Stamp duty, Registration Charges and other
documentation charges > Rs 10 Lakhs.
Page 2
 Quick Success Series : P Seg Loan Products
December 31, 2016
In case of construction: the LTV will be calculated on
the estimated cost of construction + current market Basel II Capital Adequacy Framework:
value of the plot. However, the maximum loan amount HL Amount Risk Wt (%) Std Asset Provision (%)
will be restricted to the estimated cost of construction. <= 20 Lakhs 50 0.40
In case of Take Over- LTV will be calculated on the >20,<= 75 50 0.40
basis of-i. Ready to Move- MV as per latest valuation > 75 Lakhs 75 0.40
report. CRE HL 100 1.00
ii. Under Construction- lower of a. Value mentioned in Processing Fee:
agreement to sale plus other permissible expenses and Loan Amount (In Lakhs) Processing Fee
b. Market value as per the latest valuation report. Up To 25 0.25% of Loan, Min-
Maximum Loan Amount: 1,000/-
Lowest of: >25 Upton 75 6,500/-
a) Permissible EMI/NMI ratio > 75 10,000/-
b) Maximum permissible LTV ratio
Premium for SBI Life excluded for calculation of
c) Loan amount applied for
processing fee.
Adding cost of furnishings/interior to the cost of
Processing fee will be recovered at the time of
house/flat: 10% of the cost of the house/flat or Rs. 25
documentation rather than upfront except in Pre
lacs, whichever is lower. Max loan amount restricted to
Approved Limit (PAL) where it will be recovered at the
stipulated LTV ratio.
time of issuance of PLAL.
Maximum loan for repair & renovation- 10 Lakhs
Non-Home Charges on Repayment: Non Home
Home Loans (i) to builders for acquisition of
Charges waived for Credit to HL in non home branch.
flat/house in their own project, (ii) for acquiring
Normal charges will be recovered in case of outstation
residential property from close relatives- may be
cheques which are to be sent for collection.
considered after obtaining deviation from DGM (B&O)
CERSAI e- The registration charges (on actual basis)
in cases where Sanctioning Authority is upto the rank
payable to CERSAI will be recovered from Home Loan
of SMGS-V. Finance for purchase of multiple units in
borrowers at the time of documentation w.e.f.
one project not allowed.
01.02.2016. The limit-wise registration charges will be
Interest Rate General- i. Bank moved to base rate
system from 01/07/2010 ii. HL int rt cannot be below as under:
base rate. iii. Loan sanctioned before 30/06/2010 Loan Amount Registration Charges (per loan account)
Upto Rs. 5 lacs Rs. 50/- plus applicable Service Tax
continues to be linked with SBAR and borrower may
Above Rs.5lacs Rs. 100/- plus applicable Service Tax
opt to switch to Base Rate without any charges. iv. No
Before creation of any mortgage the branches/
fixed rate option from 01/05/2011, only floating rate.
operating units have to verify the records of CERSAI to
Option for existing fixed rate/ floating rate customers
see that there is no preexisting charge registered with
to switch over to current rate: Fixed/ Floating rate
Central Registry.
borrowers may switch to current interest rate by
Security: Primary: EM/RM of the immovable property.
paying switch over fee of 0.58% of outstanding , Min-
Collateral: i. In lieu of mortgage of residential unit, loan
Rs 5000/-. Switchover fee to be credited to branch
may be secured by pledge on liquid securities of
commission account. (e-cir 1033 dt 17/11/2015)
adequate value. ii. Other immovable properties may be
Penal Interest on Irregular Loans:
taken as security in lieu of mortgage of house/flat
i. < 25000/--No penal interest
financed provided realizable value of property (should
ii. above Rs.25000/- , if the irregularity exceeds EMI or
not be vacant plot/land)>125% of loan amount.
Installment amount, for a period of one month, then
Pari-passu/ Second Charge: permitted, administrative
penal interest should be recovered @ 2% p.a. (over
approval to be obtained from-upto 30 lakhs-
and above the applicable interest rate) on the overdue
AGM(Region/branch), over 30 lakhs- GM Network.
amount for the period of default. If part installment or
Interim Security: Wherever creation of mortgage is
part EMI remains overdue, then penal interest should
likely to be delayed for any valid reason, suitable
not be levied.
security including third party guarantee, as considered
Pre-closure penalty:
necessary, may be taken for the interim period. The
No pre payment and/or pre closure penalty will be
Agreement to Mortgage should be executed by the
levied Home Loans irrespective of the period for which
borrower and the mortgage, as prescribed, must be
the account has run or the source of funds.
created subsequently at the earliest.
Waiver of Interim Security in prescribed cases-
Centralized Mailing of Interest Certificate- From May
Sanctioning Authority or AGM (Region)/ (Branch)
2012, Interest Certificates are dispatched to customer
Execution of Documents on the basis of Power of
centrally at their CBS addresses.
Attorney: Not permitted for resident Home Loan

Updated by Sanjay Kr.Sharma, Manager(Trg) Page 3

 Quick Success Series : P Seg Loan Products
December 31, 2016
borrowers, except borrowers employed in Defense
Services, Para Military Forces and NRIs. The Power of
Attorney would be restricted to close relatives namely
Spouse, Father, Mother, Brother, Sister, children,
Father-in-Law and Mother-in-Law
Purchase of house /flats which are more than 15
years old: Administrative Clearance should be obtained
from the next higher authority except expected
longevity of the structure, as certified by an
empanelled structural engineer / architect (or
unexpired lease period, in case of lease hold
properties) is at least 5 years more than the loan tenor
Validity of Sanction: 6 months from the date of
sanction.
In-Principle’ approval: The ‘in-principle’ approval shall
be valid for 30 days from the date of issue, subject to
that at least partial disbursement of the loan is made
before the expiry of the validity period.
CIBIL & CIR: Upto 10 lakhs- Report from CIBIL
Above Rs 10 Lakhs- Report from two credit bureau i.e.
CIBIL &ECISPL (Equifax Credit Information Services Pvt
Ltd)
Multiple Deviations /concessions: In case of multiple
deviations, all deviations to be approved by the highest
authority in the Circle authorized to approve the
required deviation/concession in the proposal.
Option to avail loan at:
(i) either at the place of construction, or
(ii) place of employment/ profession/ business activity,
or
(iii) at a place of residence, or
(iv) at a Branch located at other centre where he/she
has ongoing relationship for last two years, by securing
the loan repayment through check-off facility or by
obtaining post-dated cheques/ECS/S.I. as per extant
instructions.
DSP account holders can avail Home Loan at a branch/
RACPC as per his convenience at
(a) Place of posting
(b) Place where salary is drawn and
(c) Place of construction of property
Moratorium:
for buildings up to 7 floors – 18 Months
> 7 and up to 14 floors – 24 months
> 14 and up to 21 floors – 30 Months
More than 21 floors – 36 Months
Mega/ Integrated Township - 48 Months (GM
Approval)
Interest Rate : Special interest rate is available to
women borrowers under Her Ghar Scheme,subject to
compliance of the following eligibility criteria;
(i) Woman should be the sole applicant or one of the
co-applicants for Home Loan,and also
(ii) The woman should be the sole owner or one of the
co-owners of the property proposed to be financed by
the Bank Interest rates of our Home Loans and other
RE products namely (i) SBI Home Top up Loan (ii) SBI
Updated by Sanjay Kr.Sharma, Manager(Trg)
Reverse Mortgage Loan (iii) Loan against Property
(LAP) are linked to 1 year MCLR. The effective rate of
interest in the account will be calculated on daily
balance of the loan amount at monthly rests, subject to
interest rate reset at the end of every year from the
date of first disbursement on the basis of prevailing 1
year MCLR as on the date of reset.
Loan for more than one house may be provided
subject to:
a) i- Applicant should fulfill income criteria and
EMI/NMI norm,
ii. Satisfactory conduct of existing account as
evidenced in CIBIL
b) Exposure for 3rd house/ plot onwards will be
treated as CRE Home loans.
PDC: In terms of RBI Circular No. RBI/2012-
12/444/DPSS.CO.CHD.No.1622/04.07.05/2012-13
dated 18.03.2013; no fresh Post Dated Cheques
(PDC)/Equated Monthly Installment (EMI) cheques
(either in old format or newCTS-2010 format) shall be
accepted by lending banks in locations where the
facility of ECS/RECS (Debit) is available. Section 25 of
Payment and Settlement System Act provides legal
recourse on dishonor of ECS/SI.
Where check off/ ECS/SI are not available, at least 48
PDCs (or for the remaining loan period) to be obtained.
Inspections:
>>Property inspection is to be carried out and recorded
at each stage of disbursement.
>>Post disbursement inspection within 15 days in
respect of all loans disbursements, thereafter every
quarter for the first year to ensure mortgage
formalities have been completed, Bank’s charge on
property noted and possession of the property is taken
th
by the borrower. The 2nd and 4 inspections should be
carried out by a different official. Thereafter,
inspection to be carried out once in every 3 year
thereafter once in every 3 years.
>>Randomly selected 5% accounts should be verified
by Inspection every month.
>>If repayments are in arrears for two successive
months- ENTRY IN ‘Default TL Account Register’
>> 6 Month Default- Revival Letter to br obtained from
Borrower and Guarantor.
>>For NPAs: At half - yearly intervals
Engagement of Builders as Marketing Associates:
The builders, with whom we have tie-up arrangements,
are engaged as our Marketing Associates (MA) for
promoting our Home Loans. In addition to the builder
and builder’s representatives, Housing Co-operative
Societies or their representatives may also be engaged
as MA. MAs will be paid service charges of 0.25% of
the loan amount for every case directed to the Bank
(only if the loan is ultimately sanctioned and disbursed
by us)
Page 4
 Quick Success Series : P Seg Loan Products
December 31, 2016
Empanelment of Home Loan Counselors (HLCs) at >>Change in Name- The RE,H&HD Vertical has been
Branches linked to RACPC/ RASMECC/ LPC etc: renamed as Real Estate and Housing Business Unit
Any individual (including a builder’s representative) (REHBU) w.e.f. 19.09.2015
who has prior experience of selling Home Loans, >> Project Tatkal- Pertains to streamline the end to end
mortgage backed products, auto loans, credit/ debit delivery of our Home Loan product, a comprehensive
cards, demat accounts and any other similar financial set of changes in the extant marketing and delivery
products can be empanelled as Home Loan Counselors structure of our Home Loan product.
(HLCs) for sourcing Home Loan proposals. The services >>CREDIT RISK GUARANTEE FUND TRUST FOR LOW
of well established non-individual Firms/Companies INCOME HOUSING (CRGFTLIH) IN URBAN AREAS- Set-
may also be utilized by Circles for sourcing of Home up by the Government of India and the National
Loan proposals. Housing Bank (NHB) has been nominated to manage
HLC/MC/MA Remuneration (to be paid only after the operations of the Trust. Under CRGFTLIH, default
sanction and first disbursement of Home Loan based guarantee cover will be available to the Bank for
on LOS data) : eligible Home Loans upto Rs. 5 lacs granted to the
borrowers in the EWS/LIG categories in Urban Areas
Loan Limit New Loan Take Over NRI HOME LOANS
Up to 25 Lakhs 0.25% 0.35% upto Individual (s) over 18 years of age with a steady source
25 to 50 lakhs 0.30% Rs. 15 lacs of income who:
Above 50 lakhs 0.35%, Max- 1.50 and 0.50% i. are NRI holding Indian Passport
Lakhs per loan above Rs. 15 ii. are PIO holding a foreign passport.
lacs, subject And:
to max of Rs. i. Total work experience of 2 years in India or Abroad
2 lacs per ii. Job contract of min 2 years abroad, after completion
loan. of 6 months in the employment,
Agg Sourcing iii. Indian citizens working abroad on assignments with
3-6 Cr 0.35 %, Max 1.50 L per Loan foreign Governments/ govt agencies or International/
6-9 Cr 0.40 %, Max 1.50 L per Loan Regional Agencies like the UNO, IMF, World Bank,
>9C 0.45 %, Max 1.50 L per Loan working with Merchant Navy etc., Officials of the
For SSL 0.35% upto Central and State Governments and Public Sector
(SBICAPSecurities Ltd) Rs. 15 lacs Undertakings deputed abroad on Temporary
15-25 L 0.35 and 0.50% assignments or posted to their offices (including Indian
25-50L 0.40 above Rs. 15 Diplomatic Missions) abroad.
> 50 L 0.45, Max 2 L per lacs, subject Loan Amount: Minimum Rs. 3.00 lacs, Max- max
Loan to maximum permissible as per EMI/NMI and LTV.
of Rs 2 lacs >>Clubbing of income permitted as per Home Loan
per loan. Norms.
Project Approval 200/- per Flat, Repayment- maximum period of 30 years subject that
Max 10,000/- per the loan should be liquidated by the age of 60 years or
project. by the age of retirement, whichever occurs earlier. The
Suraksha premium amount may be considered for such AGM (Region)/ (Branch) may permit the repayment of
remuneration if sanctioned simultaneously, and not loan up to the age of 70 years.
subsequent to sanction and disbursement of the loan. SBI REALTY
The remuneration will be paid to HLCs on the basis of (Cir no-1105/2016 - 17Circular No. : NBG/RE,H&HD-HL/40/2016 - 17
LOS data only w.e.f. April 2013 onwards. (Plz Ref E-Cir Wednesday,November 23,2016.)
No-1214 dt 05/03/2013.) Purpose: Purchase of a residential plot located within
>>Free Group Personal Accident Insurance Cover the municipal/corporation area of Urban/Metro
(Death only) provided to our Existing as well as New centres with population of 1 lac and above for
Home & Car Loan customers DISCONTINUED with construction of a house.Purchase of Plots located
effect from 01.07.2013 outside municipal/corporation area will be permitted
>>Take over of HL from Associate Banks now allowed only in cases where the plots are allotted/developed by
provided customer maintains Salary A/c with us under Government Bodies/ Development Authorities such as
CSP. DDA, HUDA, BDA, LDA, etc.
>>Bankbazaar-The Bank has now entered into a Type of Loan: Term Loam
tripartite partnership with Bankbazaar.com and SSL for Eligibility: as per Home Loan Scheme
displaying our Home Loan products on Minimum Loan Amount-Rs 10.00 lacs
Bankbazaar.com and acquiring Home Loan leads. Maximum Loan Amount –Rs 15.00 Cr

Updated by Sanjay Kr.Sharma, Manager(Trg) Page 5

 Quick Success Series : P Seg Loan Products
December 31, 2016
EMI/ NMI:
NAI (in Rs lakhs) Max EMI/NMI
>Rs. 3 lacs & <= Rs. 5 lacs 40%
> Rs. 5 lacs & <= Rs. 8 lacs 50%
> Rs. 8 lacs & <= Rs. 10 55%
lacs
> Rs. 10 lacs 60%
There will be no discretion vested with the Circle
Authorities for approval of relaxation in EMI/NMI ratio.
Maximum period for construction of house: 5 years
from the date of first disbursement of the loan
Penalty in case of delay in construction- Higher of Rate
applicable to Personal Loan against Mortgage of
Immovable Property or 5.25% above the Base Rate
after expiry of stipulated period
For loans above Rs 50 lakhs i) prior administrative
clearance will not be required ii) The loan eligibility will
continue to be arrived at on the basis of lower of the
value mentioned in the ‘Agreement to Sale’ or‘Market
Value’ based on current Valuation Report not more
than 3 months old iii) two title search reports to be
obtained – one before loan sanction another before
disbursement from two different empanelled lawyers
iii) CIBIL Credit Information Report on the borrower to
be obtained twice - one during loan sanction process
and another before disbursement of loan
Max Repayment – 120 Months, no moratorium.
LTV-
Loan Amount LTV
Upto Rs.75 Lac 70%
Above Rs.75 Lac 60%
SBI MAXGAIN
Facility – HL as Overdraft facility (with INB, Cheque
book)
Eligibility- As applicable to Home Loans. Additional-
Should have SB/CA (Existing or prospective) with
minimum balance of Rs 5000/-
This stipulation not applicable to Salary Accounts.
Businessmen whose loan eligibility is assessed on the
basis of firm’s turn over (loan to businessmen) are not
eligible.
Min loan -20 lakh; Max- No upper limit
INB/ Cheque Book Facility- INB and Cheque Book after
full disbursement, However, ATM cum Debit card will
not be issued in Maxgain account.
Interest Rate- Same as Home Loan Scheme, however a
premium of 0.25% over and above the applicable rate
for above Rs 1.00 crore new Maxgain Home loans. In
CRE, 0.45% premium on Int Rt.
Conversion of Existing Home Loan (TL) to Maxgain
A/c- Permissible to all home loan borrower except staff
IHLS borrowers, subject to:
(a) Fully disbursed accounts having outstanding of Rs.
20 lacs and more, (b) IRAC status of the account should
be Standard and account should be regular, and
Updated by Sanjay Kr.Sharma, Manager(Trg)
(c) Security under Collateral field has already been
created and authorized.
>>Rs 1,000/- to be charged as Processing Fee.
SBI HOME TOP UP LOAN
Purpose: Any personal purpose other than speculative
purpose.
Eligibiity- All existing Home Loan customers with a
satisfactory repayment record of at least one year
provided possession of the house has been taken by
the customer and valid mortgage has been created in
favour of the Bank are eligible.
Loan Amount- Min- Rs 2.00 Lakhs, Max- Rs 5.00 Cr
EMI/NMI:
NAI EMI/NMI
> Rs. 3.00 lac <= Rs. 5.00 lakh 55%
> Rs. 5.00 lakh <= Rs. 10.00 lakh 60%
> Rs. 10.00 lakh 70%
NAI < 3.00 Lakhs, Not eligible.
Facility- TL/ OD
Tenure- residual tenure of underlying Home Loan or 15
years, whichever is higher, subject to liquidation of the
loan before the borrower attans the age of 70 years.
However, the borrowers can opt for a lower tenor.
No of Loans- At any point of time not more than two
loans will be allowed to exist under the proposed
scheme. Second loan may be considered only after a
gap of one year from the date of disbursement of first
loan.
Security- Extension of Mortgage (Not mandatory for
loan up to 5 lakhs.
Take Over HL-Home Equity can be given in case of Take
Over also. If the a/c has run for more than one year in
other Bank, it may be sanctioned immediately after
creation of valid EM.
Processing Fee- 0.35% of loan, min-Rs 1500/-, max-
Rs10,000/-
Festive Offer till 31/12/2015- Waiver of Processing Fee
for all take over during campaign period provided that
the loans are sanctioned and partly/fully disbursed by
CPCs/Branches latest by 31.03.2016
TRIBAL PLUS (FOR HILLY/ TRIBAL AREAS)
Purpose: SBI-Tribal Plus' Home Loan is a Special
Scheme designed for Hill/Tribal areas where land
records are not proper and restrictions to transfer of
property, for extending financial assistance to
individuals in such areas for purchase/ construction of
a new/ old house and repair/ renovation of existing
house.
Age – Min 21 Yrs, max-60 years
Eligibility - Salaried- Min 5 years of service, should
provide check off
Others- 5 years in the activity, deposit a/c with us for 2
years with avg balance of Rs 5,000/- OR satisfactorily
conducted loan with us for min 2 years,
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December 31, 2016
Loan Amount- For Employees – 36 times NMIs, For
Others- 3 times NAI
Max loan- 10 lakhs
Max Loan Tenure- 15 Years, loan to be fully repaid by
the remaining service period of the borrower
(salaried), 65 year (others)
Margin- Construction/ Purchase 15%
Repair/ Renovation/ Addition 20%
Security- Salaried:
i. TPG of another employee good for the loan amount,
OR
ii. Group Guarantee of 3-4 employees
iii. Lien on PF of the applicant, wherever possible
iv. Applicant should obtain Life Insurance policy equal
to the loan amount assigned to the Bank.
v. Liquid Securities not less than 30% of loan amount
Others:
i. TPG good for the loan amount
ii. Applicant should obtain Life Insurance policy equal
to the loan amount assigned to the Bank.
iii. Liquid Security not less than 50% of the loan
amount.
The stipulation above may be waived by the
Sanctioning Authority if the borrower/ guarantor offer
valid mortgage property owned by him at other centre.
AGM Region/Branch may reduce it to 15% of the loan
amount in respect of tie-ups with govt. Depts, reputed
corporate with availability of bulk business potential of
not less than Rs.2 cr.
GRAM NIWAS
Purpose: To provide Home Loans to poorest of the
poor in Rural areas
Operational Area: Rural and Semi Urban Centers.
“Rural Area” for the purpose of the Scheme is the area
comprised in any village including the area comprised
in any town, the population of which does not exceed
50000 as per 2001 census. Location of the residential
property being funded by us should be within the
“Rural Area” as defined above.
Eligibility- All Individuals (farmers, entrepreneurs,
traders, businessmen, employees etc.) having
satisfactorily conducted account with us or a member
of a
Self Help Group having savings / loan accounts with us.
Age - 18 years to 50 years. Age > 50 Yrs may be
considered if all the legal heirs join as guarantor
Max Loan Amount-
For construction/purchase of house : Rs.5.00 lakhs
For repairs/renovation : Rs.2.00 lakhs
For purchase of land : Rs.1.00 lakh
EMI/NMI:
Avg Annual Income* EMI/NMI
<= 40,000/- 25%
>40,000/- , <=2.00lacs 45%
>2.00 lakhs, <= 5.00 lakhs 55%
Updated by Sanjay Kr.Sharma, Manager(Trg)
*Average of last two years income
Margin- Up to 50,000/- 10%
>50,000/- , up to 5.00 lakhs 15%
Processing charge- waived, Rs 500/- for legal opinion.
Facility – TL or OD
Max Repayment Period – 15 Years
SAHYOG NIWAS
Objective- To finance Self Help Groups for on lending
to members for housing in rural areas.
Eligibility- SHGs with a good track of payment record
for 2 years.
Loan Amount: 10 times the savings of the corpus of
SHG including limits already sanctioned
On lending by SHG-
Purchase/ construction- Max Rs 50,000/- per member
Repair/ Renovation- Max Rs 25,000/- per member
Classification- Priority sector advances under SHG
EARNEST MONEY DEPOSIT SCHEME
Loan amount- up to 100% of application money – Max
Rs 10 lakhs
Age – Min 21 yrs;
Facility – Demand Loan
Repayment – Unsuccessful Applicant- By refund in
case of Non Allotment
Successful Applicants- or ii) lump sum repayment of
the loan, Not more that 12 month from the
disbursement date.
One Person- One Application.
REVERSE MORTGAGE LOAN
Age of first borrower: Above 60 Yrs; When Loan Jointly
with spouse – Minimum Age of spouse above 58 Yrs
Should not have more than one surviving spouse –
Undertaking to not remarry during loan term
Loan availed jointly with spouse: Loan Tenor –If age of
Younger Borrower up to 68 Yrs-15 Yrs
Loan Tenor –If age of Younger Borrower above 68 Yrs-
10 Yrs
Loan availed in single name: Loan Tenor –If age of
Borrower up to 68 Yrs-15 Yrs
Loan tenor –If age of Borrower above 68 Yrs-10 Yrs
Loan Amount – 90% of value of property (it includes
interest till maturity) Min 3 lakhs Max 1 Cr
Loan may be disbursed in Monthly/ Quarterly
Installments or 50% in lump sum and remaining 50%
through periodic payments
GREEN HL
Financing Green Buildings (Energy Savings – 20-30% &
Water Savings – 30-50%)
Incentives –Waiver of Processing Fee.
CRE HOME LOAN
If an individual owns two or more houses, singly or
jointly then the exposure for the third house
onwards/purchase of plot will be treated as CRE Home
Loans. The maximum number of
houses/flats/residential plots will be restricted to 3
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 Quick Success Series : P Seg Loan Products
December 31, 2016
under CRE Home Loans over and above the two houses
/ flats permissible under Home Loan Scheme. In cases
where total units, including existing and proposed,
exceed 5, the loan proposal will be processed under
SME (CRE). In other words, CRE Home Loan interest
rates will be applicable to a maximum of 3 units
beyond which SME interest rates and repayment terms
will apply.
No OD facility. No interest Concession.
CRE exposure to the extent secured by Commercial
Real Estate attracts risk weight of 100%.
Provision on standard CRE to be made at 1% instead of
0.40% for Home Loans
Interest Rate- Same rate applicable as in Home Loan
(Term Loan) except for CRE Maxgain Loan account
where a premium of 0.45% p.a. over and above the
applicable interest rate on similar loan amount under
Term Loan.
ISHUP
(Interest Subsidy Scheme for Housing the Urban Poor)
Ministry of Housing and Urban Poverty Alleviation
(MHUPA) Govt. of India has designed an interest
subsidy scheme as an instrument of addressing the
housing needs of the Economically Weaker Section
(EWS) and Low Income Group (LIG) through Jawaharlal
Nehru National Urban Renewal Mission (JNNURM).
Average Monthly Household income
EWS – Up to Rs 1.00 Lakhs, LIG- 1,00,001 to Rs 2.00
Lakhs.
Max Loan Amount Eligible for subsidy – Rs 1 Lac
Loan Term – 20 Yrs including moratorium period
Interest subsidy @ 5% on admissible loan amount over
the full period of loan
Net present value (NPV) of the subsidy will be
calculated on the basis of notional discount rate
advised by the Central Government, presently 9% p.a.,
for the full remaining loan term.
SBI SURAKSHA
funding 100% of the SBI Life premium through a
separate account (a/a). Outstanding under the
Suraksha loan will be classified under “Personal Loans”
in the P-report
YUVA HOME LOAN
Eligibility: Salaried employees of reputed companies
from the private sector, MNCs, Government
undertakings, PSUs, Government employees.
Age: YUVA – >=21 to <=45 Yrs; In joint borrowing with
spouse, Min/upper age limit- 21/45 years.
Min NMI – Rs 30,000/- ; Expected Rental Income from
proposed property not to be added
Loan Term: up to 30 Years
Repayment – First 36 Months – Only Interest
th
From 37 month onwards- Normal EMI
Loan Amount – 20% extra i.e. 1.2 times the loan as per
Regular HL based on EMI/NMI ratio
Updated by Sanjay Kr.Sharma, Manager(Trg)
Benefit under Corporate Salary Package if employer
Company Covered under CSP. If not under CSP, then
Festival Loan (DL) equivalent to 3 Months NMI
repayable within 36 Months permitted
HOME LOAN PAL ( PRE-APPROVED LIMIT )
KYC compliance and Assessment of eligible loan
amount are completed before finalization of the
property deal by the borrower. Borrowers get assured
of eligible loan amount and the time to be taken for
disbursement. However, The Interest Rate prevailing
on the date of sanction of Home Loan will be
applicable.
PLAL will be valid for a period of 4 months.
Available at RACPC only.
Min loan amt - 10 lakhs
Sanction of pre-approved Home Loan limit will be
advised to the borrowers through a “Pre-approved
Loan Arrangement Letter (PLALs)”.
Non-refundable processing fee as applicable to the
Home Loan will be collected upfront.
CAR LOAN
(Note: Based on Master Circular Auto Loans as on
01/12/2015 (e-Circ 1111/2015-16 dt 08/12/2015) and
e-circular published after that date.)
Purpose-
Type of Loan- TL/OD
Age – 21-65 Yrs (For Sanction of Loan); Loan must be
fully repaid before the age of 70 Yrs
Minimum Income:
Salaried : NAI-2.50 Lakhs per annum.
Self-employed, Professionals, Proprietary/Partnership
firms and Businessmen: Net Profit or Gross Taxable
income of Rs. 4,00,000/- p.a. as per ITRs after adding
back depreciation.
Agriculturist: NAI of applicant and/or co applicant
together to be Rs. 4,00,000/-.to be arrived at based on
the nature of the activity, land holding, cropping
pattern, yield etc.
Income of co-Applicant, if any, can be clubbed to arrive
at the income criteria. The person whose income is
included will join as a co-borrower. The maximum
number of applicants should be restricted to two.
Computation of Net Income: Salaried: Gross Salary net
of all statutory deduction. (No other deduction to
taken into account) NAI= NMIX12
Self employed, Professionals, Proprietary / Partnership
firms and Businessmen: Net Profit or Gross taxable
income of Rs 4,00,000/ as per ITR after adding back
depreciation.
EMI/NMI
NAI (in lakhs) EMI/NMI not to Exceed
<= 5 50%
>5, <=10 50%
>10 60%
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 Quick Success Series : P Seg Loan Products
December 31, 2016
EMI/NMI concession to Salary Package account has
been withdrawn.
LTV Ratio:
85% of the On-Road price of the car
90% of the On-Road price of the car in Salary Package/
tie up.
On-Road price includes taxes, insurance, accessories
and extended warranty total maintenance Package etc.
The maximum cost of accessories, extended warranty
and total maintenance should not exceed 5% of the ex-
showroom cost of the vehicle or Rs. 50,000/ whichever
is lower.
Maximum Loan Amount –
Type Of Customers Max Loan
Salaried 48 times NMI
Self employed, Professionals, 4 times NAI
Proprietary / Partnership firms
and Businessmen
Agriculturist 3 time NAI
Max Repayment – 7 years, age at the time of
liquidation of loan<=70 yrs
Penal Interest: For Loan up to 25,000/-- Nil
For Loan above 25,000/-: If the irregularity exceeds
EMI or Installment amount, for a period of one month ,
then penal interest would be charged @2% p.a.(over
and above the applicable interest rate) on the overdue
amount for the period of default. If part installment or
part EMI remains overdue, then penal interest should
not be levied.
Inspection: After initial inspection, waived for standard
asset.
Post Sanction Inspection-
(a) Post disbursement inspection of vehicle must be
carried out within 15 days from the date of
disbursement in respect of auto loans.
(b) If there is default in auto loan, then an inspection
will take place.
(c) The branch/RACPC will initiate 1st Post Sanction
Inspection for Xpress Credit, SBI Saral, Festival and
Education loans within a week of the accounts being
classified as RG “3”. (eCirc 138 dt 09/05/2014)
Credit Report: For Car loan > 5 Lakhs, at least two
agencies’ credit report strictly to be obtained. (CIBIL &
ECISPL)
Processing Charge: 0.52% of the loan amount subject
to a minimum of Rs.1,035/- and maximum of
Rs.10,350/-. 25% of the Processing Fee will be retained
if the application is rejected after pre-sanction survey
subject to Minimum of Rs. 510/- and maximum of Rs.
2550/-.
Waiver of Processing Charge- till 31/12/2015
PRE PAYMENT PENALTY: Nil
Scoring Model:
Score 60 to 100 - Clear Sanction
Updated by Sanjay Kr.Sharma, Manager(Trg)
Score 46 to 59 - May be considered a)after credit
enhancements or b) application to be referred to next
higher authority
Score 45 or below- Decline
Tele Calling- It has been decided to recover the
expenses incurred in connection with soft recovery of
loans from the borrowers like cost of SMS/Tele-Calls,
visit by an authorized person/employee of the Bank
etc.
LETTERS FROM BRANCH TO DEALERS- Clause to be
added-i. Discounts should be remitted to customer
loan a/c, ii. E-mail of photo of vehicle with borrower iii.
Vehicle should not be registered outstation without
bank’s express written consent.
SBI COMBO LOAN SCHEME
A Term Loan for purchase of a Car and a Two Wheeler
taken together. No overdraft will be available under
the Scheme. No Take Over or Reimbursement
permitted in this scheme.
NRI CAR LOAN FOR NEW VEHICLES
Eligibility- Principal Borrower- NRI, Guarantor-
Resident Indian close relative to the NRI.
NRI fulfilling following condition:
▪ Having valid Indian passport
▪ Steady Source of Income
▪ Employed abroad for at least 2 yrs
▪ Holding a valid job contract/work permit
▪ Having NRI account with SBI for at least 12 months
with min. average balance of Rs. 50,000/- or New
Account with USD 5000/- or equivalent.
Age – 21- 65 Yrs (for both);
Guarantor: Resident Indian who is the guarantor to the
loan should be a close relative (as defined in Section 6
of the Companies Act 1956) of the NRI borrower
Repayment- 7 years/ 65 years of age.
Minimum Income - Min NMI USD 1000 or Min NAI USD
12000 or equivalent
Loan Amount- 18 times of NMI or 1.5 times of NAI of
NRI borrower-no ceiling for new vehicles.
Other criteria are same as Car Loan Scheme.
SBI LOYALITY CAR LOAN SCHEME
A new Car Loan Scheme for our housing loan
borrowers to avail Car Loan at concessional rate of
interest and processing fee. The new product will be
made applicable to all car loan scheme variants viz Car
Loan Scheme, Combo Loan Scheme, NRI Car Loan
Scheme, Used Car Loan Scheme and Certified Pre-
owned Car Loan Scheme.
Eligibility- Individuals including joint borrowers who
have
i) Availed the housing loan from SBI,
ii) Satisfactorily serviced the loan for at least one year
after the moratorium period,
iii) Taken the possession of the house
iv) Created valid equitable mortgage and
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 Quick Success Series : P Seg Loan Products
December 31, 2016
v) Maintained security margin of at least 15% for
purchase/construction of plot/house.
vi) Completed all terms and conditions regarding
sanction of housing loan.
Permissible Loan Amount- 75% MV of house property
less present outstanding of HTL and Home Equity.
Security- Hypo of vehicle and extension of EM. Ext of
EM is not required for Car Loans up to 10.00 lakhs.
Margin- Nil, 100% finance is possible.
Income Criteria- Min NAI Rs 2.00 Lakhs.
Repayment- 7 years
No take over, no reimbursement.
CAR LOAN OD
Min Loan - Rs 3 Lac
Facility – OD (ATM, INB, Cheque book)
SBI CAR LOAN SCHEME FOR USED CARS
Vehicle should not be more than 5 years old. No
financing on Duplicate RC Book.
EMI/NMI- 50%, (70% if NAI>10 Lakhs)
Loan Amount- 30 time NMI/ 2.5 time NAI, Maximum-
15 lakhs
Margin- 15 % for all loans
Repayment- within 7 years from the date of original
sale.
Valuation- Required from reputed garage.
Other criteria are similar to Car Loan Scheme.
CERTIFIED PRE OWNED CAR LOAN (Modified Scheme)
Term Loans for purchase of Certified Pre-Owned cars
Age of the vehicle: Not more than eight years old
Tenure: 8 years minus the age of the vehicle at the
time of applying for loan subject to a maximum tenure
of 5 years
Maximum Number of ownership: The ownership
vehicle which is put up for sale under certified pre
owned should not have changed more than 2 times.
Income- Rs 2,00,000/- and above
Loan Amount- Min-Rs 1 lakh, Max- Rs 5 Lakh. Max- 30
Times NMI/ 2.5 times of NAI.
Valuation: Invoice of the dealers or the IDV as per the
motor insurance policy whichever is less.
Margin-20%
Repayment-8 years minus the age of the vehicle at the
time of applying for loan subject to a maximum tenure
of 5 years
Takeover : Not to be considered
SBI NANO YOUTH CAR LOAN SCHEME
For purchase of new Tata Nano Car variants
manufactured by Tata Motors Ltd.
The scheme will target youth (age between 18 to 28
years), will have reduced income criteria (minimum
NAI of Rs.2 lakhs per annum) and will be repayable in
maximum 60 months.
REIMBURSEMENT OF COSTS OF CAR PURCHASED BY
OWN SOURCES
Updated by Sanjay Kr.Sharma, Manager(Trg)
We may also reimburse finance for the cars purchased
out of own funds which are not more than 3 month
old. The rate of interest applicable to New Cars will be
available for loan by way of reimbursement.
TWO WHEELER LOAN
For regular petrol/diesel/gas operated scooters &
motor cycles:
Min. NMI Rs. 6,250/-; or Min. NAI Rs. 75,000/-
For mopeds and battery-operated Two-wheelers: Min.
NMI 5000/-; or Min. NAI 60000/-
Loan – 6 Months NMI or half of NAI
Max Repayment – 36 Months
Margin- 15%
HIGH VALUE SUPER BIKE LOAN
Term Loan & Overdraft will be sanctioned by the Bank
for purchase of super bikes
Min NAI- Rs 6.00 Lakhs
Min Loan- Rs 3.00 Lakhs
EMI/NMI- Up to 10.00 L NAI-50%
> 10.00Lakhs NAI- 60%
Margin -15%
Repayment- 5 Years
SBI STUDENT LOAN
To be sanctioned in the jointly in the name of the
Student and his Parent/ Guardian
LIMIT : a) Max 30 lakhs (For Studies Abroad)
b) Max 10 lakhs (For Studies in India)
Margin- Nil- Loan Up to 4 lakhs
5%- Loan Above 4 lakhs (Studies in India)
15%- Loan Above 4 lakhs (Studies Abroad)
No Security for loans up to 4 lakhs - Each ward of a
parent/guardian may be sanctioned loans up to Rs. 4
lakhs individually without insisting for any security
For Loans Above 4 lakhs & up to 7.50 lakhs – Suitable
TPG. The sanctioning authority will replace Third Party
Guarantee with Parent/ Guardian as co-borrower
provided the Gross Annual income of Parent/ Guardian
(co-borrower) as verified by the latest Income Tax
Return is 3 times the loan amount.
For Loans Above 7.50 lakhs – Tangible Collateral
Security of Suitable value
Moratorium – Course Period + 1 Year or 6 months
after getting Job, whichever is earlier
0.50% concession in interest rate for girl students wef
nd
2 Mar 2009
1% concession in interest rate for full tenure of loan
full interest serviced during moratorium
>>Loans up to Rs. 10 lakhs for studies in India and Rs.
20 lakhs for studies abroad are reckoned under priority
sector advances
Expenses covered- Purchase of books/ equipments/
instruments/ uniforms/ computer at reasonable cost, if
required for course completion and any other expense
required to complete the course– like study tours,
project work, thesis, etc. considered for loan should be
capped at 20% of the full amount of total tuition fee
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 Quick Success Series : P Seg Loan Products
December 31, 2016
payable by the students who do not get any
concessions/ remissions.
nd
@ Modification in moratorium for 2 Top Up Loan( SBI
Student and Scholar)- For Students opting for Higher
nd
Studies, without availing 2 (Top Up) Loan from our
Bank due to following reasons:
i. Availability of Scholarship for the Higher studies.
ii. Concessional /Low fee structure, moratorium period
to be
extended for the duration of the higher studies also.
• The combined repayment to be shifted to one year
after the completion of Higher Studies, or 6 months
after taking up a job whichever is earlier.
Note: In cases where the student is pursuing higher
studies by availing Second Loan from some other Bank,
there will be no change in the moratorium period. (e-
cir 1172 dt 24/01/14)
@ Post Sanction Supervision- NODAL OFFICER- To be
identified from among the existing officials who are
handling the job of education loans in Branches with
more than 200 Education Loans. The position of Nodal
Officer will also be created at the RACPCs with more
than 200 Education Loans. (e-Circ no 1317 dt
04/03/2014)
@SBI Student Plus Advantage Card- A product of SBI
Card specifically for Education Loan Borrowers. Target
Market- Students/ Parent/ Co-borrowers.
@Photo publication of defaulters- In respect of
educational loans, under no circumstances, the
photographs of students will be published.
Life Insurance Cover- Effort should be made to cover by
life insurance policy, preferably SBI Life, duly assigned
to us for Full value of loan+ accr int during moratorium,
for full tenure of the loan. ( in case of student being
eligible for interest subsidy, life cover for only loan
amount)(e-cir 798 dt 17/10/13)
> “All Indian Citizens who intend to obtain primary
medical qualification from any foreign country on or
after 15th May, 2013 are not required to obtain
Eligibility Certificate from the Medical Council of India.”
(eCir 677 dt 08/09/14)
INTEREST SUBSIDY SCHEME ON EDUCATION LOAN
FOR ECONOMICALLY WEAKER SECTION PROPOSED BY
MINISTRY OF HRD, GOVT. OF INDIA
@ The scheme is known as Central Scheme to provide
Interest Subsidy for the period of
moratorium on Education Loans taken by students
from Economically Weaker Sections
(EWS) with annual gross parental/family income up to
Rs.4.50 lakhs per annum from the academic year 2009-
10.
@ The scheme could be adopted by all scheduled
banks and would be applicable only for studies in
recognized Technical/Professional courses in India.
@ The subsidy is provided for the period of
moratorium i.e. course period plus one year or six
months after getting job whichever is earlier.
Updated by Sanjay Kr.Sharma, Manager(Trg)
@ The interest subsidy under the scheme shall be
available to the eligible students only once either for
the first undergraduate degree course or the post
graduate degree/diploma in India.
@ The scheme shall be implemented through Canara
Bank, which is the Nodal Bank.
Applicability of Interest Subsidy Scheme to our
Bank : Under Education Loan Scheme, we have two
schemes at present.
i. SBI Student Loan ii. SBI Scholar Loan
Under the above schemes, education loans for eligible
students for studies in India up to a
maximum limit of Rs.10 lakhs would be eligible for
interest subsidy.
> Purchase of Foreign Travel Card ( FTC) by students
availing education loans for studies abroad should be
made mandatory as part of loan process by default
(eCirc 48, 12/04/14)
> Opening of account through LOS made mandatory.
SBI SCHOLAR LOAN
To be sanctioned jointly in the name of the Student
and his Parent/ Guardian
Sanction & Disbursement: In addition to existing
designated campus branches, all MMGS-III and above
incumbency branches will also sanction the Scholar
Loans, as per the convenience of student/parent. (e-cir
226 dt 12/06/2013)
(After completion of the studies and if the student
desires, the loan account may be transferred to a
branch closer to the place of co-borrower and
preferably to the branch which has made KYC
verification at the time of availing loan for tracking
purposes)
Max Loan Amount:
List ‘AA’: Up to Rs 30 Lakhs Without any tangible
Collateral.
List A- Without Coll- 20 Lakhs
With Collateral -30 Lakhs
List ‘B’: Without Coll- 20.00 Lakhs
List C-Without Coll-Up to Rs 7.5 Lakhs,
With Coll- Above 7.5 Lakhs and up to Rs. 30 Lakhs,
Margin- Nil
Repayment- Up to 12 years. Repayment starts 6
months after the completion of the course.
SBI SKILL LOAN SCHEME
(REPLACES SBI LOAN SCHEME FOR VOCATIONAL
EDUCATION AND TRAINING)
SBI Skill Loan Scheme aims at providing a loan facility
to individuals who intend to take up skill development
courses as per the Skilling Loan Eligibility Criteria.
Min Loan- 5000/-, Max Loan- 1,50,000/-
Margin- Nil
SBI EDUCATION PLUS
To finance employed persons to pursue Distance
Education Programmes and Part Time Courses
(evening, etc.) for career development.
Age- Below 45 years
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December 31, 2016
Loan amount- 15 time NMI min 25000/- max 1 lakh. Min NMI – Rs 5,000/-
Margin- 10% Margin-Nil, Security- Nil, TPG- Nil
SBI CAREER LOAN Type of Loan- TL & OD
Eligibility- Individuals who undertake a course for Loan Amount –T.L- Min-25,000/-O.D-Min-5 Lac, Max-
training/skill development. This scheme will be 24 times NMI Max 15 lakhs; Max loan to School
restricted to persons joining Airhostess Training Teachers-(a) Govt School-24 Times NMI,(b)Govt aided
courses in India and abroad, from institutes recognized school-12Times Gross salary
by the Ministry of Civil Aviation/ DGCA. Rated Corporates:24 times NMI
Loan Amount- max 3 lakhs Unrated Corporates:24 times NMI
Age- borrower- min 18 years, co-borrower- max 60 Penal intt:- Penal Interest @2% p.a. would be charged
years (irrespective of loan amount)over and above the
Security- EM or liquid security applicable interest rate on the overdue amount for the
Margin- EM- 20%, Liquid Sec- 10% period of default. If part instalment or part EMI
Repayment- 36 EMI after moratorium. remains overdue then penal interest should not be
PADHO PRADESH levied.
As per Prime Minister's 15 Point Programme for the Processing fee:- 1% of the Loan Amount + applicable
Welfare of Minorities, announced in June 2006, Service Tax. A concession of Rs 250 will be provided to
Scheme of Interest Subsidy on Educational Loans for the borrower in case he provides all 3 of the following
Overseas Studies for Students from Minority documents:
Communities has been formulated and implemented. Aadhar Card
The scheme will promote educational advancement of PAN Card
student from minority communities and provide them Mobile No
better opportunities for higher education abroad and Pre-Sanction:- Not Mandatory (for accounts opened
enhance their employability. This is a Central Sector under DSP/PMSP/ICGSP product codes)
Scheme to provide interest subsidy to the Repayment- Lower of 60 EMIs or Remaining Service
student belonging to the communities declared as EMI/NMI Ratio<= 50%
minority communities in terms of section 2 (c) of Review- Yearly, Renewal- 24 months
nd
National Commission for Minorities Act, 1992, on the Provision of 2 Loan- 1yr after disbursement of 1st
interest payable for the period of moratorium for the loan, max 2 Xpress credit at one time.
Education loans under the Scheme of Interest subsidy Prepayment Charges- Nil
on Educational loans for Overseas Studies to pursue Partial check-off facility now abolished.
approved courses of studies abroad at Masters and Interest Rate based on Proposed Spread over 2 year
Ph.D levels. However, subsidy is available only on loan MCLR:
sanction and disbursed from 2013-14 onwards and (a)Rated corportates:-
limit up to Rs 20 Lakhs for candidates having family A+ and above BBB- and below
annual income < Rs 6 Lakhs. Full C O 340 bps 390 bps
No C O 540 bps 590 bps
An additional 25 bps will be charged if the customer
SBI SARAL avails an overdraft facility.
Min NMI - Rs 5000/-; Loan- 12 times NMI (Max Rs 10 CIBIL TU 800 700 - 799
lakh); Repayment – 6-48 Months Score
Individuals other than salaried person not eligible Check Off 415 bps 465 bps
Min Loan- 10000/- (R & SU) & 24000/- (Metro &
No Check off 490 bps 615 bps
Urban)
An additional 25 bps will be charged if the customer
Max Loan- 10 lakhs
avails an overdraft facility.
EMI/NMI Ratio- 50%
For employees of Unrated Corporates / Organizations
:-�Minimum CIBIL TU Score of 700
XPRESS CREDIT
(Modification vide cir no-1296/2016 - 17Circular No. : NBG/PBU/PL- �Interest rate will be linked to CIBIL TU Score of the
XPRESS/71/2016 - 17Monday,January 02,2017) borrower�Regular Salary Credits for last 6 months
Purpose: any legitimate purpose Rated Corporates: Will include all Corporates having
Eligible Employers: Central and state Government, ECR (except C & D) or having Banking relationship
Quasi-Government, Central PSUs, Profit making State with the Bank.
PSUs, Educational Institutions of National Repute Unrated Corporates:Will include Corporates/
(Institutions covered under SBI Scholar Loan Scheme), Organizations who neither have ECR nor have any
Corporates, Employees: Permanent employees with a Banking relationship with us,
minimum of 1 year’s length of service > NO SALARY A/C, NO XPRESS CREDIT LOAN.

Updated by Sanjay Kr.Sharma, Manager(Trg) Page 12

 Quick Success Series : P Seg Loan Products
December 31, 2016
Disbursement- Never in cash, only by transfer to
account. Intimation to DDO in prescribed format with
full details of the loan is must, but not mandatory for
DSP and PMSP accounts.
PERSONAL BANKING ADVANCES
NEW LOAN PRODUCT: XPRESS CREDIT – IT EMPLOYEES
(Cir. No-669/2016 - 17Circular No. : NBG/PBU/PL-
XPRESS/44/2016 - 17Monday,August 22,2016)
Parameters Details
Eligible EMPLOYERS:
Criteria All Employers in IT/ ITeS industry who are
member of NASSCOM, the list of which is
attached as Annexure to this circular.
EMPLOYEES: Employees
with a minimum of 6 months length of
service & should have salary accounts
with SBI Should comply with Bank’s
KYC norms Purpose Loans under the
scheme are to be sanctioned
Purpose Loans under the scheme are to be
sanctioned for any legitimate personal
purpose(e.g., expenses for domestic or
foreign travel, medical treatment of self
or a family member, meeting margins for
purchase of assets etc.)
Minimum Net The minimum Net Monthly Income (NMI)
Monthly of the employee should be Rs.25000/-
The Branch will ensure to obtain an
Income
Undertaking from the borrower that
there is no other deduction from his/her
salary which is not reflected in the salary
slip as applicable in Xpress Credit Loan
Scheme.
Security& Nil
Margin
Foreclosure/ 3% on prepaid amount. No prepayment/
Prepayment foreclosure charges will be applicable if
Charges the account is closed from the proceeds
of a new loan account opened under the
same scheme.
Penal Interest Same as normal x-press credit.
Type of Loan Overdraft with fixed repayment (reducing
DP). Limit can be reinstated after
liquidation of earlier outstanding.
(No Cheque book facility to be provided)
Loan Amount 18 Months Net Monthly Income of
the employee.
Minimum Loan Amount : Rs. 50,000/-
Maximum Loan amount: Rs.10.00
lacs,
subject to EMI/NMI not exceeding
50%
Repayment Maximum 36 months
Period
Review Review of loan to be done if 3
months instalments are overdue
Second loan 2nd loan can only be taken after
liquidation of First loan.
Updated by Sanjay Kr.Sharma, Manager(Trg)
PERSONAL BANKING ADVANCES
XPRESS ELITE: PERSONAL LOANS FOR SENIOR OFFICIALS OF
CENTRAL/STATE GOVERNEMNT, DEFENCE ESTABLISHMENTS, PSUs
& QUASI(Cir.no- 946/2016 – 17 Circular No. : NBG/PBU/PL-
PERLOANS/54/2016 – 17 Thursday,October 20,2016)
Parameters Details
Eligible Criteria EMPLOYERS
Senior Officials working with Central/
State Governments/ Defence
establishments,Quasi Government
Bodies, PSUs.
EMPLOYEES:-Should comply with Bank’s
KYC norms(There is no compulsory
requirement of him/ her maintaining
salary account with the Bank)
Minimum The minimum Gross Monthly Income
Net Monthly (GMI) of the employee should be
Income Rs.1,00,000.
Security/Margin Nil
/Processing fee
Type of Loan Overdraft (Reducing DP) [with cheque
book facility]
Loan Amount 24 Months Net Monthly Income of
the employee.
Minimum Loan Amount : Rs.
3,00,000
Maximum Loan amount: Rs.
20,00,000
subject to EMI/NMI not exceeding
60%
Repayment Maximum 60 months or residual service
period whichever is less.
Review Review of loan to be done if 2 months’
instalments are overdue
Provision Top up loan can be sanctioned after 1
for Top up year of disbursement of the 1st Loan,
Loan provided the 1st Loan is being
satisfactorily conducted and is regular at
the time of sanction of Top up Loan.
There cannot be more than 2 Xpress Elite
Loans standing in the name of a
borrower. However this is subject to the
overall EMI/ NMI Ratio of 60%.
Customer with CIBIL TU Score of less than 600 will not be
sanctioned loan under this scheme irrespective of their
Application Score.
GOVERNMENT BODIES
FESTIVAL LOAN SCHEME
Employees with min. 2 yrs service; Self employed with
min. 3 yrs standing. NMI of Rs 3000 & above
Min loan- Rs.5000; Max - Rs.50,000 subject to 4 times
the NMI. Loan up to Rs.1 lakh to individuals who are
either employees and provide check off
facility or are well established self employed
whose dealings with us is satisfactory.
Type of loan: DL
Repayment: 12 EMIs
Page 13
 Quick Success Series : P Seg Loan Products
December 31, 2016
Security: Primary: Nil; Collateral: Personal guarantee of Repayment (DL) – Within 30 Months The repayment of
spouse or 3rd party of adequate worth where check off Principal and Interest should commence from the
is not there. month following the month of disbursement (e-cir
1001/2013-14)
LOAN AGAINST MORTGAGE OF IMMOVABLE Min Loan- Rs 20,000
PROPRERTY Max Loan- 20 lakhs
Criteria Guidelines Margin- 25%
Eligibility IT assessee individual owning a property Int Rate- 2.50 % above BR min 12.50 %
in his own name or third party (may be a Loan not granted against the security of primary gold,
firm of pvt ltd co), NRI customer also i.e., 24 carats gold bars and biscuits
eligible Can be granted against specially minted gold coins sold
Max Age 60 years by Bank as RBI clarified that it need not be treated as
Income Min NMI- 25000/- ‘Bullion’. However, RBI has advised the banks that
Min NAI- 3.00 Lakhs while granting advance against the security of specially
Margin 40 % of market Value of Property [As per minted gold coins sold by them, bank should ensure
Bank's approved valuer's report not that the weight of coin(s) does not exceed 50 grams
more than 3 months old.] per customer.
Facility Term Loan. No OD. Processing Fee- (i) For BIS Hallmarked Jewellery/
Loan a)Max: Rs 2.00 Cr Ornaments and specially minted Gold Coins sold by
Amount For Tier I and Tier II Cities Banks : 0.51% of the Loan Amount (Min: Rs 256 ; Max:
b) Max : Rs 1.00 Cr Rs 1022)
Rest of India. (ii) For Non Hallmarked Jewellery/ Ornaments:
c) Max Rs: 50 lakhs for Bhubaneswar, (a)Up to Rs 25000: Rs 511 per application;
North East and Bengal Circles (excluding (b)Above Rs 25000: 1.01% of the Loan amount or Rs
those cities which are covered under 1022 whichever is higher.
Tier I and II cities) Further, In view of the restriction imposed by RBI, it
Processing 1.01% of the loan amount. has been decided to withdraw existing scheme of loan
Fee Max of Rs 50933/- (inclusive of service against gold exchange Traded Fund (ETF) i.e., ‘Loan
tax) against the units of Gold Exchange Traded Scheme’
EMI/NMI Not to exceed 50% with immediate effect.
Repayment With check off: maximum of 120 months > Branch Cash Officer/ Award Officer is responsible for
genuineness and purity (by use of Touchstone/ Nitric
Period [or date of retirement, whichever is
Acid/ Sp. gravity method). Karatometer is also used to
earlier]
assess quality of the gold.
Without out check off: 72 months.
Where check off is not available, >Insurance for gold held as per Gold Retention Limit at
branches will be taken on a centralized basis through
ECS/PDCs should be obtained.
Mumbai LHO w.e.f. 1st April along with cash as per
(Sanctioning Authority may permit
Cash Retention Limit held at branches as on 31st
longer repayment period up to 84
Months) March, each year based on the data / information
provided by Circle. Insurance cost is presently borne by
Other Property should be SARFAESI compliant.
the Bank and will continue to be absorbed by the Bank.
Conditions Not to be sold in States where SARFAESI
> Now Quarterly verification of Personal Gold loan
not applicable.
ornaments quality and number to be done by an
CERSAI Verification of the property to be
official other than Joint custodians at the Personal Gold
done.
Loan intensive branches.
Property should be within a radius of 25
KM from the Branch.
nd BHAGYA REKHA
No 2 / Pari Passu charge allowed.
Demand Loan to women only against Savings in
I-Probe of customer mandatory.
Recurring Deposit (At least 12 Months Old)
Take over allowed.
Loan - Twice the balance outstanding in the RD
Prepayment Charge- 2%
account; Min Rs.5,000/- Max Rs.50,000/-
E Cir no 1283/2013 – 14 dt 22/02/2014
RD Term – 36 Months – Min Installment Rs 400/- – Min
Loan 10000/-
SBI GOLD LOAN
RD Term – 60 Months – Min Installment Rs 200/- Min
Age – Min 21 Yrs; Proper Introduction & Capacity to
Loan 5000/-
service the Interest
Clean portion of loan to be repaid in 24 or 48 months,
rest to be recovered from Maturity Value

Updated by Sanjay Kr.Sharma, Manager(Trg) Page 14

 Quick Success Series : P Seg Loan Products
December 31, 2016
SBI PENSION LOAN 72 years
SBI Loan to pensioners and SBI Loan to Affluent More than 48 months 78 years
Pensioners have been merged and a new pension loan 72 years
scheme named SBI Pension Loan has been launched. and up to
74 years
Min Loan - Rs 25,000
More than 24 months 78 years
Max Loan - 18 Month’s Pension with a ceiling of Up to
74 years
72 yrs- 14.00 Lakhs, Above 72 and up to 74 yrs- 12.00 and up to
Lakhs, Above 74 and up to 76 yrs- 7.50 Lakhs, EMI/MI- 76 years
Not to exceed 50% Type of Loan:-Term Loan
Max Loan to Family Pensioners- 18 Month’s Pension Loan may be sanctioned at Non-Home branch also but
with a ceiling of up to 72 years- 5.00 lakhs, 72 to up to non-home branch make aware the Home Branch about
74 years- 4.50 Lakhs, 74 to up to 76- 2.50 Lakhs, sanction of Pension Loan.
EMI/NMI not to exceed- 33% Fresh Loans can be taken after liquidating the first loan
Repayment- For Both Pensioners & Family Pensioners only after 12 months.
Age At Sn Rpmnt Prd Ag @ full rpmnt Security- Primary- Nil, TPG- Spouse eligible for Family
Pension, in absence of spouse- other family member or
>= 70 yrs 60 Mnths 75 Yrs Third party worth the amount.
<70,<=72 yrs 48 Mnths 76 Yrs NEW SCHEME - PENSION LOAN TO COAL MINES PROVIDENT
>72,<=76 yrs 24 Mtnhs 78 Yrs FUND (CMPF) PENSIONERS:
(Cir. No-1249/2016 - 17Circular No. : NBG/PBU/PL-
ROI- 3.50 % above Base Rate, Min- 13.50% PENSION/66/2016 – 17 Thursday, December 22,2016)
Processing Fee- 0.51%, Min 250/-, Not applicable to SBI Parameters Description
Pensioners. Eligibility All CMPF Pensioners (Except Family and
Children Pensioner)whose pension
Top Up Loan- May be sanctioned to Pensioners and
st accounts are maintained with the SBI.
Family Pensioner after 1 year 1 loan, subject to Loan Amount Minimum Rs.25,000/-
satisfactory conduct of loan, Max 2 Pension loan Maximum: 18 months’ Net Monthly
permitted at one time subject to overall EMI/NMI of Pension (NMP) but not exceeding Rs.3.00
50% or 33% in respective case. lacs, subject to EMI/NMP not exceeding
50%.
JAI JAWAN PENSION LOAN Age Maximum Age at the time of Sanction of
(Circular no-198/2016 - 17Circular No. : NBG/PBU/PL-JAI Loan : 65 Years
JAWAN/15/2016 -17Wednesday,May 11,2016.) Margin Nil
Eligibility- Loan for Pensioners of Armed Forces - Army, Security Third Party Guarantee of a person good
Navy and Air Force & Paramilitary Forces - Coast for the loan amount who has been
Guards, Rashtriya Rifles, CRPF, BSF, ITBP, etc. maintaining a satisfactorily conducted
Age – There is no minimum age bar under the scheme. account with the Bank;preferably
spouse/son/daughter of the pensioners.
The Maximum age at the time of availment of loan
Facility Demand Loan
should be 76 years
Processing Fee 0.50% of the loan amount, Minimum :
Loan amount –Minimum Rs.25,000/-
Rs.500/- + ST
A. Maximum of 36 months’ pension with a ceiling of
Risk The loan processing Branch on receipt of
Rs.14.00 lacs for pensioners who are up to 56 Years of age.
Mitigation the loan application and copy of the PPO
B. Maximum of 18 months’ pension with a ceiling of
from the Pensioner would request
(i) Rs.14.00 lacs for pensioners who are above 56 years and
Dhanbad Branch to fax/mail the duly
up to of 72 years of age
certified scanned copy of the PPO and
(ii) Rs.12.00 lacs for pensioners who are above 72 years and
copy of the latest Life Certificate held by
up to 74 years of age
them to cross check the genuineness of
(iii) Rs.7.50 lacs for pensioners who are above 74 years and
the PPO, to ascertain the age and to avoid
up to 76 years of age.
any impersonation.[No loan will be
EMI/NMP(net monthly pension) not to exceed 50%.
sanctioned unless PPO submitted by
Repayment – the Pensioner is cross checked by the
Age at the time of Repayment Period Age at the time Branch with the certified copy of PPO
Loan sanction of full repayment received from Dhanbad Branch ]
Repayment 60 EMIs
Up to 56 84 months 63 years
years
More than 60 months 77 years
LOAN FOR SUBSCRIPTION TO IPOs
56 years
and up to For funding subscription to IPOs of PSUs and Public
Limited Companies.

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 Quick Success Series : P Seg Loan Products
December 31, 2016
Eligibility: New customers with sufficient cash flow
evident by last 2 yrs IT Returns & satisfy KYC norms.
Old Customers satisfactorily availing loan. Amount of
Loan: Min- 50% of application money stipulated in IPO,
Max- up to 1.00 lakh per IPO subject to a max of 10.00
lakhs per person. Total exposure to the shares,
convertible bonds, convertible debentures and units of
equity of oriented mutual funds to individuals from
banking system should not exceed the limit of Rs. 20
lakhs.
Margin: 50%
Security: Lien on shares if allotted
Repayment: Within 30 days of allotment.
Type of Loan: Demand Loan.
st
Processing Fee- 1 loan-511/-, subsequent loan- 101/-,
after 3 loans- Nil.
LOAN AGAINST NSCs/KVP
Facility- DL or OD
Margin- a) Staff/ Bank Pensioners- 15% of face value
plus accrued interest of NSC VIII issue/KVPs.
b)Public- 40% of face value plus accrued interest of
NSC VIII issue/KVPs.)
Repayment - A suitable repayment schedule is to be
fixed. At no point of time, the outstanding in loan a/c
should exceed the maturity value of the certificates
pledged. [Otherwise a/c will be treated as NPA.]
No ceiling on maximum loan amount provided
stipulated margin is maintained.
EQUITY PLUS
The “Equity Plus” scheme has been devised exclusively
for employees of the leading Public Sector
Undertakings (PSUs), who desire to avail Bank’s finance
for purchasing their company’s shares offered either
under ESOP or IPO.
@ Check Off facility must
@ Undertaking from DDO to obtain NOC from Br
before releasing terminal/ superannuating benefits
Max Loan-90% of the purchase price of the shares
subject to a maximum of 18 months NMI.
Repayment- Max 60 EMIs.
Processing Fee- Rs 2040/- per application.
ADVANCE AGAINST RBI RELIEF BONDS
Individuals aged over 21 with an assured income
including NRI. To meet investor’s credit needs;
personal/ business needs & contingencies.
Margin - 40% on the face value & accrued interest.
No repayment is compulsorily proposed. Non-payment
of interest will not attract IRAC norms. However,
borrower has the option to repay even
prematurely. The loan to be liquidated out of maturity
proceeds of bonds.
@ Securities must be endorsed/ transferred by the
beneficiary to the bank.
ADVANCE AGAINST DEMAT UNITS OF OPEN ENDED
SCHEMES OF SBI MUTUAL FUND
Individuals aged above 21, Max Age-65 with Min. NMI
of Rs.5000 / Min. NAI of 50000.
Limit- Min- Rs.10,000;
Max. Against demat units -Rs.20 lakhs which is
inclusive of any loan granted against the security of
shares, bonds, etc.
Margin:50% (NAV/Repurchase Value/ Market Value,
whichever is less)
Repayable : 30 EMIs
Type: DL / OD; DL
Security- Lien on the units.
ADVANCE AGAINST LIFE INSURANCE POLICY
Eligibility- In force policy in the name of borrower
issued by LIC, SBI Life or Department of Post Office.
Excluded- policy under Married Woman Property Act,
1874
Margin- 5% of Surrender value of Policy
Type : DL or OD
Repayable-Within 3 yrs
Other Criteria- a) Policy to be unencumbered & in full
force (premium must have been paid up to date). Age
of the insured to have been admitted in the policy.
b) Assignment in favour of Bank on the policy itself. If
assignment is done on a separate paper it attracts ad
valorem stamp duty.
c) LIC’s acknowledgement to be obtained. OD may
be granted against an endowment policy, anticipated
endowment policy; policy issued by the Postal
department.
d) Advance against Whole Life Policy should be
discouraged. .
f) Standing Instruction should be obtained for payment
of the premium so as to policy may not lapse on
account of nonpayment of premium.
LOAN AGAINST THE UNITS OF GOLD EXCHANGE
TRADED SCHEME (SBI-GETS)
In view of the restriction imposed by RBI, it has been
decided to withdraw our existing scheme of loan
against gold exchange Traded Fund (ETF) i.e., ‘Loan
against the units of Gold Exchange Traded Scheme’
with immediate effect. (e-cir 237/2013-14 dt
13/06/2013).
LOAN AGAINST THE UNITS SBI DEBT FUND SERIES
Product SDFS Short SDFS Long
Duration Duration
Type of Loan DL/OD
Age Min-21, Max-65
Income (Min) NMI-5000/-, NAI- 50000/-
Max Loan Min-10000/- Max-20.00 lakhs
subject to 10 time NMI/ 1 time NAI.

Updated by Sanjay Kr.Sharma, Manager(Trg) Page 16

 Quick Success Series : P Seg Loan Products
December 31, 2016
Margin 30% 50% other statutory dues for the
Security Lien on units period].
Repayment 12 EMI 36 EMI Applicability i. All Scale IV branches and above and
Processing fee 0.51%, min Rs 101/- PBB
Valuation The security should be marked to ii. CMC may identify Scale III branches
market on a weekly basis i.e., the also.
value determined based on the Security Primary- Assignment of Rent
lower of NAV / repurchase price on Receivables
any day of the week. Coll- EM of let out property or any
other acceptable property. Coll may be
RENT PLUS waved in eligible cases.
Purpose- Financial assistance to the owners of
residential buildings/commercial properties to meet
their liquidity mismatch against assignment of future
rentals of such buildings/properties.
LOANS TO EMPLOYEES TO PURCHASE ESOPs OF THEIR
Eligibility Individual OWN COMPANY
Facility TL Eligibility- permanent employee with min 2 years
Type of SARFAESI compliant Properties located service and min 3 years residual service.
Property in Metro/Urban/Semi- urban/Rural Loan Amount- Lower of 90% of purchase price or Rs 20
areas. lakhs
Plan approval and other related Margin- 10% of offer price
permission for the property from Facility- Demand Loan
appropriate authority need to be in Repayment- Within 3 years in EMI. A 12 month
place. moratorium may be given.
(a)The residential Security- Lien in Demat a/c
buildings/commercial properties which Processing fee- Rs2040/- per application
are to be rented or already rented to
MNCs / Banks / Large & Medium size LOANS AGAINST GOVERNMENT SECURITIES
Corporates. The Network GM is vested Govt Securities- Government Securities may be in the
with the discretion to consider cases of form of Govt. Promissory Notes or Govt Stock
other types of lessees Certificates.
(b)However, the properties should not Margin- 10% to 15% on the Market Value of the Govt.
be or have been leased to Schools, securities.
Colleges, Orphanages, Hospitals, Old Facility- TL/OD
Age Homes, Nursing Home or any Loan Amount- Min-1000/-, then in multiple of 100/-
other Social Sector Infrastructure.
Valuation Every 3 years LOANS AGAINST BANK’S TIME DEPOSITS & RESIDENT
Margin 25% FOREIGN CURRENCY (RFC) DEPSOITS
Repayment 10 years or the residual lease period TDR/STDR/RD (including NRE/NRO deposit)
whichever is less Margin- 10%
Loan Amount Min- 50,000/- Loan Amount- 90% of Principle+accr int
Max- Non Metro Property- 5 cr Security- Lien on the Time Deposit
Metro Property- 7.5 Cr Multiple DL on same TDR/STDR- can be permitted so
Scale of Lowest of : long as the sum total of the limits of all the Demand
finance i. 75% of realizable value of the Loan accounts will be within the permissible limit of
property mortgage (as per latest the Demand Loan against the TDR/STDR.
valuation report of the Bank’s
Approved valuer). Loans against Resident Foreign Currency (RFC)
ii. Maximum permissible under the deposits: The loans will be granted in Rupee terms
Scheme. retaining the stipulated margin of 10% on the rupee
iii. 75% of [total rent receivable for the equivalent of the RFC deposit amount calculated at the
residual lease period or loan period, prevailing notional rate of exchange for the US Dollar
whichever is lower minus total of as advised by Foreign
advance deposit, estimated amount of Dept. Kolkata.
property tax, service tax, TDS and

Updated by Sanjay Kr.Sharma, Manager(Trg) Page 17

 Quick Success Series : P Seg Loan Products
December 31, 2016
As a general rule, no advance should be granted
against the security of Term Deposit Receipts issued
by other banks.

Updated by Sanjay Kr.Sharma, Manager(Trg) Page 18