Promotion March2016 Final Updated Upto 24-02-2016

All India Oriental Bank Officers Association___
_________________________________________________________________________________
Study Material for Promotion Test /Interview - 2016
(updated till 24-02-2016)
2
ALL INDIA ORIENTAL BANK OFFICERS ASSOCIATION

(AFFILIATED TO AIBOA)
Central Office:C/O Oriental Bank of Commerce

Corporate Office: Plot No. 5, Sector 32,
Institutional Area, Gurgaon -112 001
_____________________________________________________________
BHOPAL/2016/
29-02-2016
Dear Comrades,
It is indeed a splendid team work exhibited by members of Central Zone Committee,

Bhopal, in the preparation of this miniature presentation in the shape of booklet, for
promotion to higher grade. We have found that the contents included in the booklet
finds a wide coverage of latest/ current as well as basic banking know how. This finest
presentation in booklet form is going to help the candidates in updating their knowledge
as well as for facing the written exam/interview for promotions with confidence.
While we congratulate the Central Zone Team for their relentless efforts, we wish the
aspiring candidates all the success.
With best wishes,
Yours comradely,
(R.L. Grovar)
Chairman
(D.K. Pauddar)
(S. S. Shishodia)
President
General Secretary
_________________________________________________________________________________
4
INDEX
Sl.
No.
TOPIC
Page
No.
OBC at a Glance
Important Banking Indicators
10
Important point from Banks Circulars
10
Retail Credit Products
24
Deposit Products (SB/CA/TD)
63
IT Products
80
Recovery & NPA Norms
100
Priority Sector
103
Legal Aspects (SARFAESI/Lok Adalat/ TDS etc)
116
Some Important Points / Questions
125
_________________________________________________________________________________
5
OBC AT A GLANCE
Our Bank's
1. VISION STATEMENT
TO BE A CUSTOMER FRIENDLY PREMIER BANK COMMITTED TO

ENHANCING STAKEHOLDER VALUE
2. MISSION STATEMENT
Provide quality, innovative services with state-of-the-art technology in line with

customer expectations.
Enhance employees professional skills and strengthen cohesiveness.
Create wealth for customers and other stakeholders.
Managing Director & CEO

Executive Director
CFO of the Bank
Officer Director
Workman Director
Foundation Day
No. of Region
No. of Branches
No. of ATM
Nationalized on
Share holding (Central Govt.)
Institutions
Non Institutions (Public etc.)
Merger of Global Trust Bank
Shri Animesh Chauhan

Shri Raj Kiran Rai G.
Shri S.S.Mallikarjuna Rao
Shri Narendra Kotiawala
Shri Kingshuk Bhattacharya
19th February
34
2351 as on 31-12-2015
2592 as on 31-12-2015
15 April 1980
59.13%
28.28%
12.59%
14.08.2004
BANKS PERFORMANCE: HIGHLIGHTS

Figures in Rs. Crores
SN
Parameter
31.03.15
30.06.15
30.09.15 31.12.15
13144
12818
Current Deposit
12810
11237
Savings Deposit
36526
36174
36909
37860
3
4
5
Total Deposits
Total Advances
Total Business
204010
148039
352048
195947
146752
342699
199201
150082
349283
206471
152512
358983
_________________________________________________________________________________
6
NPAs
S. NO.
PARAMETERS
Mar-15
Jun-15
Sep-15
Dec-15
1
2
3
4
5
Gross NPA
Gross NPA as % of Gross Advances
Net NPA
Net NPA as a % of Net Advances
Provision Coverage Ratio
7666
5.18%
4816
3.34%
60.59%
8577
5.85%
5358
3.76%
59.55%
8558
5.70%
5189
3.55%
61.53%
11825
7.75%
7359
4.99%
56.34%
Parameters
Net Profit
Cost of Deposit
Cost of Funds
Yield on advances
Yield on funds
Net Interest Margin (NIL)
Dec-15(9M)
134.46
7.30 %
6.52 %
11.52 %
8.88 %
2.66 %
CASA
Parameters
Current
Savings
CASA
(CASA % to Total Deposits)
Retail Term Deposits (below ` 1 Cr.)
Mar-15
12,839
36,526
49,365
(24.20%)
75,539
Jun-15
11,276
36,174
47,450
(24.21%)
78,410
Sep-15
12,818
36,909
49,727
24.96%
80,747
Dec-15
13144
37860
51004
24.70%
82605
Capital Adequacy of the Bank under BASEL III: 11.14% (Tier I: 8.17%, Tier II: 2.97%) as on
31.12.2015
Capital Planning:
The Bank has raised Rs. 1000 crore on 26.10.2015 through issuance of Unsecured
Redeemable Non-Convertible Basel III Compliant Tier II Bonds on private placement
basis for inclusion in Tier II Capital of the Bank at a coupon of 8.34% p.a. with a maturity
of 10 years.
Bank has approached Govt. of India & LIC for infusion of equity capital through
preferential allotment
_________________________________________________________________________________
7
BRIEF HISTORY OF THE BANK: 1943 2015

1943
1950
1980
1994
Oriental Bank of Commerce was established on February 19, 1943 at Lahore

After the partition of the country, its Registered Office was shifted, first to
Amritsar and subsequently to Delhi in 1950. The owners were Thapars.
The Bank was nationalised on April 15, 1980.
At that time, bank had a network of 307 branches and total business was Rs 435
crore comprising deposits and advances of Rs 282.61 crore and Rs 152.69 crore,
respectively
Public Issue of 60 Million equity shares of Rs.10/- each at a premium of Rs.50 per
share, aggregating Rs.360 crore; the issue got overwhelming response
1997
Punjab Co-operative Bank Ltd. and Bari Doaba Bank Ltd. amalgamated with the
our Bank
1999
Oriental Bank of Commerce rated "First" amongst Public Sector Banks on all
working parameters by the Financial Express BRIS Survey and the Economic
Times- CMIE Survey
2001
One of the first few Public Sector Banks having adopted US GAAP besides Indian
accounting standards. Committed to taking banking to international standards,
Oriental Bank of Commerce's performance has proved its worth even when
evaluated as per the stringent US GAAP standards
2003
First Bank to declare Zero net NPA level, with more than 100 per cent provisions,
as on September 2003.
Rated as the "Best Bank for 2003" by Business India. Selected among "Best Under a
Billion, 200 Best Small Companies for 2003" out of 19000 companies from Asia and
Europe by Forbes Global
2004
Global Trust Bank Ltd. a private bank amalgamated with the Oriental Bank of
Commerce with effect from August 14, 2004.
Selected under the Forbes 2000 World's Biggest Companies
2005
Public Issue of 58 Million Equity Shares of Rs.10/-each at a premium of Rs.240 per

share aggregating Rs.1,450 crore raised in April 2005.
One of the three Indian Public Sector Banks included in the list of World's Top 25
Banks in terms of Return of Capital Employed (RoCE) as on July 31, 2005 according
to the Banker. Improved its rank from 2000th in 2004 to 1811th in 2005 under the
Forbes 2000 World's Biggest Corporates.
Referred as the Customer Friendly by NIBM in its study pertaining to Customer
Service in the Bank.
2006
The Bank's total business crosses Rs.85000 crore mark as on March 31,2006 with a
network of 1,148 branches.
2007
We entered into an agreement with HDFC & Canara Bank for joint venture in Life
Insurance Products.
We have brought under CBS system almost all the branches of the bank
2008
Total business reaches Rs.1,33,184 Crores, a growth by 22%.

Bank achieves 100% CBS in all Branches
New innovative products & services leveraging on Technology like Online Equity
Trading, OBC e-Shopping, OBC e-Taxes etc launched
_________________________________________________________________________________
8
Write off of amortised GTB losses advanced by a year, Dividend maintained at 47%
2009
2010
2011
Joint Venture with Canara Bank and HSBC entered into for Life Insurance Business
Business-mix has increased to Rs. 167434 crores, registering a growth of 25.72%.
Bank has recently opened a Representative Office at Dubai - our first offshore
Office.
In its Joint Venture for Life Insurance with Canara Bank and HSBC, the Bank issued
12291 policies and booked a Gross Commission of Rs. 24.50 crores
Our Bank crossed the landmark total business of Rs. 2,00,000 Crores
Our Banks Customer base crosses 13.5 million
Our Bank's Branch Network crosses 1500, ATM network crosses 1000 mark
ISO 27001 certification for implementation of Information Security Management
System at PDC, Mumbai, DRS, New Delhi, NLS, Mumbai and Processes at DIT, HO &
CBS Cell, HO
The Bank was awarded the Most Cost Efficient Operator at FIBAC-2011 organised
by Indian Banks Association (IBA) & Federation of Indian Chamber of Commerce &
Industry (FICCI).
100% system driven classification and provisioning of NPAs.
The Bank has operationalised a Mobile Branch.
The Bank has launched ORIENTAL BANK MEDICLAIM POLICY in collaboration with
the Oriental Insurance Company Ltd. for its customers.
The Bank has launched a co-branded Credit Card in the name of SBI-Oriental Bank
of Commerce Credit Card which is in collaboration with SBI Cards. The card is
available in two variants - Platinum and Gold for customers as well as staff of the
Bank.
The Bank has launched its First E-Lobby at Nehru Place, New Delhi. This State of
Art unmanned E-Lobby provides wide ranging 24x7 Banking facilities to its
customers on a self-service basis.
2012
The Bank has shifted its Corporate Office to Gurgaon and became the only Public
Sector Bank having its Corporate Office in the State of Haryana
2013
Our Bank crossed the landmark total business of Rs. 3,00,000 Lac Crore
Our Bank's Branch Network crosses 2000.
Our Bank crossed the landmark total business of Rs. 3,50,000 Crores.
Our Bank's Branch Network crosses 2250.
Total Delivery channels of the Bank as on 31.12.2015 stood at 4943 (2351 Branches
and 2592 ATMs)
NEW INITIATIVES
Self user creation module has been made LIVE for registration for Internet
Banking.
Bank has launched Special Saving Salary Accounts viz. Oriental Premium Salary
31.12.15
Account (for Premium Salaried Class) and Oriental Salute Salary Account (A
specially designed account for the Nations Armed Forces) with specially
designed personalised Debit Cards.
A Special saving account - Oriental YUVA has been launched by Bank with
specially designed Rupay debit card for youngsters in the age group 10-18 Yrs
2015
_________________________________________________________________________________
9
Important Banking Indicators

Our Base Rate
Our P L R
Bank Rate
Repo Rate
Reverse Repo Rate
CRR
SLR
Marginal Standing Facility
09.70%
14.75 %
07.75%
06.75%
05.75%
04.00%
21.50%
07.75%
(w.e.f 30/09/2015)
(w.e.f.14/05/2012)
(w.e.f. 29/09/2015)
(w.e.f. 29/09/2015)
(w.e.f. 29/09/2015)
(w.e.f. 09/02/2013)
(w.e.f. 07/02/2015)
(w.e.f 29/09/2015)
IMPORTANT POINTS FROM BANK'S CIRCULARS

(FROM 01-06-2015 TO 24-02-2016)
1. Routing of perquisites to staff through salary account of the staff only (All payments/
reimbursement of perquisites to staff be credited to their salary account only and in no case the
same be paid in cash. (HO Cir HO/I&C/65/15-16-931 dt. 06-02-2016)
2. Charging of Annual Service Fee (ASF) / Annual Guarantee Fee (AGF) at differential
rates depending upon NPA levels/ Claim Payout ratio of Banks (HO Cir RD & PS: 80:1516 :929 dt. 24-02-2015) - It has been decided by the trust to introduce following risk premium
structure in place of existing guarantee fee structure:
Risk premium on NPAs in Guaranteed portfolio
NPA Percentage
Risk Premium
0-5%
SR
>5-10%
10% of SR
>10-15%
15% of SR
>15-20%
20% of SR
>20%
25% of SR
Risk premium on claim payout ratio

Claim payout percentage
Risk Premium
0-5%
SR
>5-10%
10% of SR
>10-15%
15% of SR
>15-20%
20% of SR
>20%
25% of SR
3. Launch of 3x3 Tri-umph account for all CASA schemes of the Bank
( Ho
Cir/Mkt/57/15-16/919 dt. 23-2-16) The Triumph account (as the name suggests) would be
having a bunch of 3 a/cs coupled with 3 features in a linked manner. The focus of TRI-umph
account is to boost our Depository segment by increasing the no. of DEMAT a/cs. In Tri-umph a/c
customer gets all the facilities related to investing through e channels without the need to visit the
branch. Linked Tri-a/cs would be opened as CASA A/C DEMAT AC TRADING AC
4. Legal Guardianship Certificates Issued under the Mental Health Act 1987 (HO Cir
Operations 32/ 15-16/910 dt. 15/20-02-2016) RBI informed that it has become to their
notice that banks are insisting on guardianship certificate from all mentally ill persons. In this
regard, it is clarified that paragraph 2(iii) of the RBI circular dated 13-01-2014 is not intended to
mandate banks to insist on appointment of a guardian as matter of routine from every person who
is in need of treatment by reason of any mental disorder. It would be necessary for banks to seek
appointment of a guardian only in such cases where they are convinced on their own or based on
_________________________________________________________________________________
10
documentary evidence, that the concerned person is mentally ill and is not able to enter into a valid
and legally binding contract.
5. Staff Housing Loan (Quantum of Maximum Loan Amt. wef. 11-02-2016) (HO Cir NO.
HRD/ 73/ 84/ 2015-16/ 886 dated 11-02-2016)
Category
Sub Staf
Clerical Staff Officers
Amt. in Lakh
Max HL Amt.
25.00
35.00
Upto Sc-IV 60.00
Sc-V & abofe 70.00
Loan for repair/ renovation/ furnishing 6.00
9.00
15.00
6. Staff Vehicle Loan amendment in repayment period (HO Cir NO. HRD/ 73/ 86/ 201516/ 885 dated 11-02-2016)
Car (Officers & Clerical Cadre only)
Two wheeler (for officers and workmen)
Loan together with interest repayable in not
more than 180 monthly installments (principal
in 126 months and interest in remaining 54
months)
OR
65 years of age in case of Pension Optees only,
whichever is earlier. However, Net Take Home
Pension should not be less than 50% of Gross
Pension (including the installment of proposed
loan)
Loan together with interest repayable in not

more than 84 monthly installments (principal
in 68 months and interest in remaining 16
months)
OR
65 years of age in case of Pension Optees
only, whichever is earlier. However, Net Take
Home Pension should not be less than 50%
of Gross Pension (including the installment of
proposed loan)
7. Staff Clean OD amendment in limit and ROI @BR wef 11-02-2016 ((HO Cir NO. HRD/ 73/
85/ 2015-16/ 884 dated 11-02-2016)
Length of service in the Bank
Cadre
6 Months & above and
3 years and above
less than 3 years
Subordinate
Rs.1.00 Lakh
Rs.2.00 Lakh
Clerical
Rs.2.00 Lakh
Rs.4.00 Lakh
Officer up to Scale IV
Rs.3.00 Lakh
Rs.7.00 Lakh
Officer Scale-V & above
Rs.5.00 Lakh
Rs.10.00 Lakh
ROI will be @BR (i.e. at present 9.70%) for both new as well as existing limits.
8. Non-disclosure of AADHAAR No./ prohibition of display of AADHAAR No. of residents
in public domain Suprement Copurt Order dt. 11-08-2015 (HO Cir NO. Operations/31/ 201516/ 880 dated 09-02-2016) It has been directed/ clarified by SC
i.
Protect the identity of Aadhaar Card Holder by maintaining the nece4ssary confidentiality
of his Aadhar No.; and
ii.
To ensure that Aadhaar No. are not posted/ displayed or made available in public
domain, such as, internet, web, public notices, etc. In case there is a requirement to
_________________________________________________________________________________
11
public a list of individuals by any department or any agency though public notice, such
list shall not contain Aadhaar No.
9. Review of ROI on Bills Purchased/ Discounted under Inland LC (HO Cir NO. RMD/
74/2015-16/ 878 dated 08-02-2016)
LC Type
Tenor of Bill
Revised ROI
ROI on Negotiating / Discounting of Bills under Upto 90 Days
@ BR+0.50%
Inland LC (DA)
Above 90 Days &
@ BR+1%
upto 180 Days
ROI on Negotiating / Discounting of Bills under DP
@BR+0.50%
Inland LC (DP)
10. FRESH NOTIFICATION FOR REGISTRATION OF SECURITY INTEREST ON CENTRAL
REGISTRY (CERSAI) (HO Cir NO. RMD/ 73/2015-16/ 878 dated 08-02-2016)
These rules may be called the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest (Central Registry) Amendment Rules, 2016
In terms of notification dated 22.01.2016, the following transactions are required to be registered
with Central Registry within 30 days of its creation, modification or satisfaction :
a) Particulars of creation, modification or satisfaction of security interest in immovable property by
way of mortgage (all type of mortgage in addition to equitable mortgage).
b) Particulars of creation, modification or satisfaction of security interest in hypothecation of plant
and machinery, stocks, debt including book debt or receivables, whether existing or future.
c) Particulars of creation, modification or satisfaction of security interest in intangible assets, being
knowhow, patent, copyright, trade mark, licence, franchise or any other business or commercial
right of similar nature.
d) Particulars of creation, modification or satisfaction of security interest in any under construction
residential or commercial building or a part thereof by an agreement or instrument other than by
mortgage.
11. Revision of fees CERSAI (HO Cir NO. RMD/ 72/2015-16/ 866 dated 03-02-2016)
Nature of transaction to be Registered
Amount of fee payable
For creation and for any subsequent
modification of security interest in favour
Particulars of creation or modification of security
of a secured creditor for a loan
interest in favour of secured creditors
Upto Rs.5.00 Lakh
Abofe Rs.5.00 Lakh
Rs. 50/- + Ser. Tax
Rs.100/- + Ser. Tax
Any application for information recorded / maintained Rs.100/- + Service Tax
in the Register by any person/ search of the property
Satisfaction or correction of any existing security NIL
interest
Schedule of additional Fee/Charges
Registration on CERSAI after Additional fee to be charged if the loan amt. is
the date of transaction (EM)
Upto Rs.5.00 Lakh
Above Rs.5.00 Lakh
From 31st to 40th Day
Rs.100/- + applicable Sr. Rs.200/- + applicable Sr. Tax
Tax
From 41st to 50th Day
_________________________________________________________________________________
12

st
th
From 51 to 60 Day
Tax
Tax
12. Levying of Charges to Staff Members on Using Other Bank ATM (HO Cir NO. ADC/
12/2015-16/ 865 dated 02-02-2016) The Charges shall be recovered from the staff members
from the fourth transaction onwards (inclusive of financial and non-financial transactions) for
each transaction on other bank ATMs, as per the charges applicable to General Customers after
exhausting three free transactions.
13. Revised guidelines on Reclassification of Advances under Large & Mid Corporate (HO
Cir NO. CAD/2015-16/92/ 844 dated 28-01-2016)
Large Corporate Advances: a) Borrowal accounts having full year turnover above Rs. 250.00
crore. (estimated/ projected for projects under implementation)
b) Advances to infrastructure (power -conventional and non conventional, port, road, highways,
communication, social and commercial infrastructure, energy, etc.)
Mid Corporate Advances: a) Borrowal accounts having full year turnover upto Rs.250.00 crore.
(estimated /projected for projects under implementation)
b) Priority sector advances (including rice Sheller, food processing, renewable energy & social
infrastructure such as educational institutions, hotels & hospitals, MFIs etc. falling under priority
sector)
c) MSME Advances including non priority sector which otherwise falls under RAM.
14. Guidelines on mandatory obtaining of Aadhaar Number & Mobile Number from
Individual Borrowers/ guarantors (HO Cir NO. RMD/68/2015-16/ 835 dated 27-01-2016)
a) The Branch Officials shall mandatorily obtain Aadhaar Number and Mobile Number of the
following at the time of sanction of Fresh/ Enhancement additional credit facilities as well as
review/renewal of credit facilities:
a) Individual Borrower(s) b) Proprietor/Partners/Promoter Directors in case of Proprietorship,
Partnership
andLimited
Liability
Partnership
Firms/Companies
c)
Individual
Trustee/member/Constituent in case of Trust, Society, AOP 4) Individual Guarantor(s) irrespective
of the constitution of the Borrower
15. Payment of Agency Commission on pension accounts (HO Cir No. GBC 37/2015-16/835
dated 27-01-2016) A pensioners account should not have more than 14 credit txns in a
calendar year attributable to pension and related arrears payments, if any. Rate of commission
is Rs.65/- per txn. Some Govt. Deptt prefer to compute the pension figures on their own and
pas them on to banks for payment. Such transactions may be included under non-pension
payments, on which agency commission is payable on a turnover basis as per the existing
norms (currently 5.5. paise per Rs.100/-)
16. Direct Benefit Transfer (DBT) Scheme- Seeding of Aadhaar in Bank AccountsClarification (HO Cir NO. RD& PS/77/2015-16/827 dt. 22-01-2016) -Aadhaar Card and
seeding of bank accounts with Aadhaar numbers should be purely voluntary and not mandatory,
therefore prior consent of the account holder should be obtained for seeding of Aadhaar
number in their respective bank account.
17. Guidelines on Financing to AOP - (HO Cir NO. RMD/67/2015-16/825 dt. 21-01-2016)
_________________________________________________________________________________
13
1. The persons in the AOP must have an inter-se agreement/ MOU in writing outlining the
rights and liabilities of the constituent members.
2. There should be a specific ratio as regards sharing of profit and losses.
3. The AOP shall approach the bank jointly for credit facilities or through a person in whose
favour specific POA has been given by all the constituent members.
4. PG of all the members constituent shall be obtained. In case it is not possible then PG of
minimum 75% of members contributing to capital fund in AOP shall be obtained.
5. PG of all beneficial owners of the AOP shall be obtained.
6. The maximum exposure to single AOP shall be capped at Rs.50.00 Crore in Real Estate
Sector and Rs.100.00 Crore in other Sectors.
7. The credit facilities to AOP shall be considered by the HLCC-ED/CAC/MCB. BM & RLCC-RH
shall have no delegated powers to consider credit facilities to AOP.
18. DEPLOYMENT OF EMERGING CORPORATE MODEL - (HO Cir NO. RMD/66/2015-16/812 dt.
-01-2016) Bank has been deployed the Emerging Corporate (EC) Model on live server on
14.01.2016
a) Bank has been deployed the Emerging Corporate (EC) Model on live server on 14.01.2016.
b) Branches and ROs shall carry out the internal credit risk rating of the existing as well as
fresh borrowers having average 3 years sales revenue of more than or equal to ` 100 Crore
and up to ` 500 in EC model
c) Borrowers having average 3 years sales revenue of more than ` 500 Crore shall be rated in
LC model.
d) The borrowers already rated under LC model shall be converted to EC model at the time of
review/renewal of internal credit risk rating.
19. Removal of maximum 6 free txns limit in SB Basic Deposit Accounts - (HO Cir NO.
CS&P/50/2015-16/808 dt. -04-01-2016) The cap of maximum 6 free of cost withdrawals
taking place through Micro ATMs in BSBDAs account has been removed. There is no restriction
on number of withdrawals taking place in BSBDAs ACs through our ATM i.e. txn through our
bank ATMs will not be charged.
20. INCOME TAX PROVISIONS REGARDING QUOTING OF PAN ON VARIOUS
TRANSACTIONS (HO Cir NO. CS&P/50/2015-16/808 dt. -04-01-2016)
1. Opening of Time deposit exceeding fifty thousand rupees or aggregating to more than
five lakhs rupees during a financial year
2. Opening an account (other than a time deposit account specified at Sr No 1 above and
Basic Savings Bank Deposit Account)
3. Payment in cash for purchase of Banks draft or pay order or Bankers cheque for an amount
exceeding Rs 50,000/- during any one day
4. Payment in cash for purchase of Banks draft or pay order or Bankers cheque for an amount
exceeding Rs 50,000/- during any one day
5. Deposit in cash with bank exceeding fifty thousand rupees during any one day
6. Making an application to the bank for issue of Debit or Credit Card
7. Opening of a Demat account with a Depository Participant
REVISION IN FORM NO 60 / 61 - CBDT have revised Form No 60 as well as 61. Impact of
revised formats are as under1) Declaration can be made only in Form No 60 by any person whether having agricultural
income or non-agricultural income. Making declaration in Form No 61 have been dispensed
with.
2) New Form No 61 relates to filing half yearly return which will be filed centrally at Head Office.
_________________________________________________________________________________
14
Revised guidelines of Income Tax Act provides that, in case a person does not have PAN and
entering into the transactions listed above, he can submit a declaration in Form 60 (revised
format enclosed ) giving therein the particulars of such transactions. The said declaration must
be supported by the valid proof of address and identity. It is obligatory on the part of bank to
ensure that the PAN is correct or the declaration in Form 60 has been duly furnished with
complete particulars. Bank is also required to retain Form No 60 for a period of 6 years from the
end of the financial year in which the transaction was undertaken (i.e. effectively seven financial
years). Income Tax Act further requires to furnish half yearly return in Form No 61 (through
electronic mode) of Form 60 received by the bank. The said return will be furnished centrally at
Head Office level
21. Our bank has launched Co-branded payment gateway under revenue sharing
arrangement with existing I-Banking payment aggregator M/s. PayU Payments Pvt. Ltd (PAYU)
an IBIBO Group company, to facilitate the co-branded payment gateway facility under Revenue
Sharing Model (HO Cir NO. MARKETING/50/2015-16/799 12th JAN2016)
22. Our Bank is introducing a new Mobile App for customers as well as potential
customers by the name ORIENTAL SAATHI which shall offer the following facilities to
them:- (HO Cir NO. HO/ADC/10/2015-16/796 11th Jan2016)
i. Branch and ATM Locator : The App will route to the nearest ATMs and branches using
Google Maps from the customers Location. Also, the App will show the route to any OBC branch
using Google Maps through PIN Code or current Location.
ii. Online Complaint registration can be done by the user and the status of the complaint
through the App can also be tracked.
iii. Online Suggestions can be given by the user on any products or services of the Bank.
iv. Online Loan Application User will be able to select the type of Loan required (Education/ Car
/ Home etc.)
v. EMI Calculator for loans is also available in the App.
vi. Interest Rates for Term Deposits and Retail Loans has been displayed. Also, the calculator
for Interest on Deposits and EMI for Loans is linked to these rates.
vii. Alerts for customers for keeping them cautious of various frauds.
viii. Contact Us Contact numbers of the customer care centre alongwith other services like
SMS Banking, Missed call banking and Mail Us has been provided in the Tab
23. CGTMSE has decided to restore the interest rate cap of 4% over the Base Rate i.e. any credit
facility which has been sanctioned by MLI, under the Credit Guarantee Scheme (CGS), to an
eligible borrower, with interest rate more than 4% over Base Rate will not be eligible for
coverage under the CGS. (HO Cir No. HO:RD & PS:73:2015-16:793 11th January, 2016)
24. REVISED GUIDELINES ON VERIFICATION & AUTHENTICATION OF THE DOCUMENTS
SUBMITTED BY THE BORROWER/ APPLICANTS1. Applicability of the Guidelines for verification and authentication of the
documents - In addition to the existing guidelines, the guidelines shall be applicable in
case of review/renewal of credit facilities
2. Exemptions in case of Consortium accounts with regard to obtaining of
Statements of all accounts with all the Banks - In case of borrowers availing credit
facilities under Consortium/JLA/Multiple Banking Arrangement, the Branches need not obtain
statement of accounts maintained by the borrower from the banks/Financial Institutions
subject to meticulous compliance of the guidelines on Exchange of Information among the
member banks circulated vide Circular No. HO/ RMD/22/2014-15/208 dated 17.06.2014.
_________________________________________________________________________________
15
However, in case where the borrower is maintaining current account with a non-lender
bank, the statement of current account shall be obtained and scrutinized on quarterly basis.
Besides, an undertaking/declaration shall be obtained from all the borrowers certifying the
details shall be obtained from all the borrowers certifying the details of the bank accounts
maintained with different banks at the time of a) Sanction of Fresh/ enhancement/
additional credit facilities b) Renewal/review of the credit facilities
3. Confirmation from the Statutory auditor seeking confirmation that the Financial
Statements submitted to the Bank are true as per auditors record - The Branch
shall seek confirmation from the Statutory auditor of the Company/Limited Liability
Partnership/ Firm (as per the Audited Balance Sheet) that the Financial Statements
submitted to the Bank are true as per auditors record particularly confirming the following:
a) Capital b) Net profit c) Turnover d) Sundry Debtors e) Sundry Creditors f) Stock g)
Fixed Assets
4. Verification of the Income Tax Return (ITR) - The Income Tax Return (ITR) of the
borrower/ Sole Proprietor/ Partner/ Promoter Director /Directors/ Guarantors, in case of all
credit proposals including retail credit proposals, shall be verified by generating the Income
Tax Return (ITR) in the presence of the Banks authorized official, wherever applicable.
The name of the authorized Bank official and details of place, IP address, date and time
where Income Tax Return (ITR) was generated shall be kept on record
25. Introduction of ADC Day in Branches on 1st Saturday of Every Month. In case the Ist
Saturday is holiday then the ADC Day shall be observed on the preceding day if it is in the same
month else on the following Monday. (HO cir ADC/9/2015-16/782 Dt 04-01-2016)
26. OBC Turant Demand Loan (OBC-TDL) New scheme for contingency CAPEX requirements
of existing all Borrowers having investment in P&M upto Rs.100.00 Crores (Borrowers which are not
covered under MSME Plus scheme are also eligible). (HO cir CAD/84/2015-16/781 Dt 28-122015)
27. New Life Insurance Products by CHOICe Smart Future Plan and Smart One Pay
Plan (1) Smart Future Plan, is a specially designed customized solution that will take care of
immediate and future financial needs of the customers and their families, in case of his/her
unfortunate death or total & permanent disability (2) Smart One Pay Plan is a single premium
unit linked non-participating endowment insurance plan. It gives the opportunity to pay only once,
that is, a single premium at the beginning of the policy and provides life cover throughout the policy
term. (HO Cir TPP/INS/41/2015-16/774 Dt. 31-12-2015)
28. INCOME TAX PROVISIONS IN RESPECT OF APPLICABILITY OF FORM 15G/15H (HO
Cir ACT/18/2015-16/779 Dt. 02-01-2016) - Submission of Form 15G/15H to the Income Tax
Department has been dispensed with. Accordingly, henceforth, the branches are advised not
to file 15G/15H with Income Tax Department. However, they should keep full record of
5G/15H received by them for verification by Income Tax Authorities.
Branches are required to allot a Unique Identification Number (UIN) to each declaration (i.e. Form
15G/ 15H) received by them during the financial year. The said Unique identification number
allotted to each form 15G/15H is also required to be mentioned in the TDS return. Bank is in the
process of devising IT platform for generating UIN through CBS system. Detailed instructions in this
regard shall be issued separately. Till then, branches are advised to allot UIN manually in
chronological order. UIN shall consist of the following 3 fields :
i) Running Sequence number (i.e. for Form 15G is G000000001 and for form 15H H000000001)
ii) Financial year for which declaration is being furnished.
iii) Tax Deduction Account Number (TAN) of the branch.
_________________________________________________________________________________
16
UIN shall be allotted to all Forms 15G/15H received after 01.12.2015

29. Modification in SB219 (Unnati) & CA113 (Pragati) Schemes (HO Cir CS&P/49/201516/773 Dt. 31-12-2015) It has been decided to discontinue the accidental insurance cover for
all accounts opened under above schemes wef 01-02-2016. In case of existing customer the
insurance cover will cease after completion of existing validity period.
30. Revised exposure sub-ceiling based on the constitution of borrower within the
overall exposure ceiling of single borrower (HO Cir RMD/62/2015-16/771 Dt. 01-012016)
Constitution
Exposure Ceiling (amt in
Crores)
Other than Real Estate
Real Estate
Individual borrowers for personal loans for non-business(other
5.00
5.00
than schematic loans) on secured basis only
Sole Proprietary Concerns, HUF*
50.00
30.00
Partnership Firms/ Trusts / Regd. Societies/ Associations / LLP
100.00
50.00
AOP
100.00
50.00
Pvt. Ltd. Co. ( which is not a subsidiary or holding co. of a
750.00
200.00
Public Ltd. Co.
Closely held Public Ltd. Co. owned by Central/ State Govt.
1000.00
250.00
Closely held P. Ltd. Co.
1000.00
200.00
Widely held Public Ltd. Co. / Statutory Bodies / Pvt. Ltd. Co./
15% of
400.00
Closely Held Public Ltd. co. * which is a subsidiary or holding
capital fund
co. of a widely held pub ltd. co.
Note : 1. CAC/MCB shallb e competent authority to relax the above norms.
2. No loans to be granted to Partnership / proprietorship concerns against the primary
security of shares and debentures.
31. Interest on FDRs made in the name of Registrar General of the Court or the depositor of the
fund on the directions of the court will not be subject to TDS till the mater is decided by the court.
(HO Cir ACT/17/2015-16/769 Dt. 31-12-2015)
32. The last date for enrolment under PMJJBY (without certificate of good health) has been
extended from 30-11-2015 to 31-05-2016. (HO Cir MKT/INS/49/2015-16/765 Dt. 23-122015)
33. Introduction of Direct Menu Codes on *99*53#By NPCI (Mobile Banking )(Ho Cir
ADC/8/15-16/732) NPCI has introduced Direct Menu in NUUP service with short code suffixed
with individual banks for the customers. The Direct Code have become operational from 15-122015. The Directo Menu Code for OBC is *99*53#.
34. IBA Model Educational Loan Scheme - A Common Portal Vidya Lakshmi Electronic
Platform (Ho Cir Retail:48:2015-16:715 Date : 10.12.2015) - NSDL has developed a portal
namely Vidya Lakshmi Electronic Platform, the features of which are as under:
1. Single window for students about information of government scholarships and education loans of
banks.
2. Single loan application for students for all banks connected to the portal.
3. Linkages of portal to banks systems
_________________________________________________________________________________
17
4. Dashboard for students to track status of loan applications

5. Mechanism for students to communicate with banks.
35. Modification in Flexi period (SB211 & CA 109) (Ho Cir CS&P/41/2015-16/691 Date :
01.12.2015)
Revised Flexi Period
Scheme
Individuals
Current
Account 45 days to 1 year
Premium Gold
Default period 45 days
(CA-109)
Saving Smart Save 91 days to 59 Months

(SB-211)
Non Individuals
a) 46 days to 90 days
b) 91 days to 179 days
91 days to 179 days
36. WAIVER OF PROCESS FEE IN SCHEME FOR LOAN AGAINST WAREHOUSE RECEIPTS /
NEGOTIABLE WAREHOUSE RECEIPTS (NWR) (HO Cir
RD&PS: 62:2015-16:689
18.11.2015) - Waiver of process fee for proposals sanctioned up to 31st March, 2016. The revised
guidelines shall be applicable on the proposals sanctioned/ renewed/ enhanced on or after the date
of approved by CRMC
37. CHIEF PUBLIC INFORMATION OFFICER UNDER THE RIGHT TO INFORMATION ACT 2005 (HO
Cir HRD&PS: 73/66/2015-16/681 30.11.2015) - Shri E.J. Jerome John, Asstt. General
Manager, Recovery & Law Department, Corporate Office, Gurgaon has been designated as Chief
Public Information Officer under the Right to Information Act, 2005 at Head Office
38.Overdraft in PMJDY a/cs to be classified under PS (HO Cir NO.RD&PS/61/ 2015-16/660
dt. 20-11-2016) The OD in PMJDY a/cs will be classified under MSME instead of others category
under PS advances, provided the borrowers household annual income does not exceed Rs.1.00 Lac
for Rural Areas and Rs.1.60 Lac for non-rural areas. These ODs will also be qualified for target for
Micro Enterprises and Weaker Section under PS Lending.
39.Board has approved that BCA/BF shall be paid Rs.3/- per account for Aadhaar Seeding in
existing saving bank accounts through Micro ATMs or submitting Aadhaar details in branches for
Aadhaar Seeding. (HO Cir NO. RD&PS/60/ 2015-16/659 dt. 19-11-2016)
40. Education Loan Bos must not seek collateral for EL uptp 4.00 Lacs as pwer extant
regulatory guidelines. Also note that Service Area Approach is not applicable to EL. (HO Cir NO.
Retail/42/ 2015-16/655 dt. 17-11-2016)
41. Sampoorna Kavach Plan Micro Insurance Product by Canara HSBC OBC Life
Insurance(CHOICe) (HO/MKT/INS/ 38 /2015-16/ 653 16.11.2015)
Product Type: Annual renewable Group Term Insurance product
Entry Age: 18
Coverage Term: One year renewable cover 59 Years (as on last birthday)
Premium Mode: One-time (renewable every year)
Premium Amount: Rs. 100/- p.a. inclusive of Service Tax.
_________________________________________________________________________________
18
Sum Assured: Rs.50,000/Maturity Benefit: No maturity / surrender benefit payable

Risk Covered: The Scheme covers natural death and death due to accident
Master Policyholder: It is issued to Group Administrator (OBC) and individual members will be
issued the Certificate of Insurance
Premium mode: Annual premium to be deposited in CHOICe collection a/c online, cash payment
not to be accepted
Product offered to: all saving bank a/c holders except nonresident accounts
Documents required: The customer is required to provide only the duly filled enrolment form. ID
proof or address proof is not required under this scheme
42. Govt. of India vide its notification number 22/2015 service tax dated 06-11-2015 has imposed
Swatch Bharat CEss @0.50% wef 15-11-2015 for all the branches accept the branches located in
the State of Jammu & Kashmir. (HO Cir No. ACT/13/15-16/ 632/ 07-11-2015)
43. New Missed Call service for Minin Statement (Ho Cir No. DIT/SMS/20/15-16/523 dt
30-09-2016) Customers who have registered for SMS facility need to give a missed call to
Banks no. (8067205767), the system will send a SMS of the balance and mini statement for last
three txns. Of the most recently transacted accunt lined with the mobile no.
44. Opening of CA by Banks Need for Discipline (HO Cir Operations/03/2015-16/0512 dt.
30-09-2016) Keeping in view the importance of credit discipline, especially for reduction in NPA
level in banks, banks are advisd to make use of the information available in CRILC and not limit
hteir due diligence to seeking NOC from the Bank with whom the customer is supposed to be
enjoying the credit facilities as per his declaration. Banks should verify from the data available in
CRILC atabase whether the customer is aviling of credit facility from another bank.
45. Addition of Mobile No. in all Retail Loans Accounts (HO Cir: Retail:33:2015-16: 493
dated 24-09-2016) It has been decided that mobile no. be captured in all fresh account and in
existing a/c the latest mobile no. should be updated.
46. Home Loan PS Targets (Ho cir NO. Retail:31:2015-16:472 Date:18.09.2015)Following housing loans shall be eligible under Priority Sector subject to classification guidelines/
directives issued by RBI from time to time. (i) Loans to individuals up to Rs.28 lakh in metropolitan
centres (with population of ten lakh and above) and loans up to Rs.20 lakh in other centres for
purchase/construction of a dwelling unit per family provided the overall cost of the dwelling unit in
the metropolitan centre and at other centres should not exceed Rs.35 lakh and Rs.25 lakh
respectively. The housing loans to banks own employees will be excluded.
(ii) Loans for repairs to damaged dwelling units of families up to Rs.5 lakh in metropolitan centres
and up to Rs.2 lakh in other centres.
(iii) Bank loans to any governmental agency for construction of dwelling units or for slum clearance
and rehabilitation of slum dwellers subject to a ceiling of Rs.10 lakh per dwelling unit.
(iv) The loans sanctioned by banks for housing projects exclusively for the purpose of construction
of houses for economically weaker sections and low income groups, the total cost of which does not
exceed Rs.10 lakh per dwelling unit. For the purpose of identifying the economically weaker
sections and low income groups, the family income limit of Rs.2 lakh per annum, irrespective of the
location, is prescribed.
Staff loans granted to the employees of the bank including loans granted under
consumer banking (home loan granted under general public scheme) are not to be classified as
priority sector.
_________________________________________________________________________________
19
47. Loan Application, Process Note & Internal Rating for Loans upto `50,000/- under
MSE Sector to be Covered under PMMY (HO Cir No. RD & PS:48:2015-16:453 11-092015) (1) Fiield functionaries are advised to use One Pager Loan Application & Processing Note
for the MSE loan upto `50,000/-.
(2) Internal Rating- Internal rating is not required for the MSE loan sanctioned upto `50,000/-.
(3) Clarification on Collateral Security/Third Party Guarantee-We clarify that as per RBI
guidelines, no collateral security is to be obtained for MSE loans sanctioned upto `10.00 lakh.
(4) MUDRA Card -In order to provide hassle free credit to Micro Entrepreneurs where working
capital requirement is upto `20,000/-, this facility may be allowed through Over Draft and MUDRA
Debit Card may be issued for withdrawal of cash.
48. Classification of Industries under Thrust, Restricted & General Area of Lending (Ho
cir No.RMD/38/2015-16/414 dt. 31-08-2015 1. Engineering shall be classified under
General Area of Lending for all pruposes including NBG approval.
49. FIR to be lodged with local police/state CID and CBI in Fraud Cases - (HO Cir I&C/
33/2015-16/407) Sl.
Criterial
Banks
Officer of the polic/ CBI with
NO.
Authority
whom the FIR is to be lodged
who would
lodge
the
FIR
1
Fraud with value above Rs.10000/- Branch
Local Polic Station
but below 1.00 lac
Incumbent
2
Rs.1.00 lac & aboge
involved Regional Head To be lodged with State CID/
outsiders and bank staff
Economic Offence Wing (EOW) of
the State concerned
2.1
Fraud with value Rs.300.00 Lac and Regional Head To be lodged with Anti Corruption
above but below 2500.00 Lac where
Branch (ACB) of CBI
the staff involvement is prima facie
evident
2.2
Fraud with value Rs.300.00 Lacs and Regional Head To be lodged EOW of CBI
above but below Rs.2500 lacs, where
the staff invomvenent is prima facie
not evident
2.3
Freaud with value Rs.2500.00 lacs Regional Head To be lodged with Banking Security
and upto Rs.5000.00 Lacs
and Fraud Cell (BSFC) of CBI
(irrespective of involvement of a
public servant.
2.4
Morethan 5000.00 Lacs
Regional Head To be lodged joint director (policy)
CBI, HQ New Delhi
In case of amt. involved Rs.300.00 Lacs and above, the draft of the FIR should be got vetted from
the Law Department at HO. The draft may be routed through Vigilance Department where the draft
would be scrutinised and be sent to the Law Department for vetting.
50. Preparation of Standarized MIS Code sheet (part of process Note and sanction of
loan accounts) (HO Cir MIS/ 03/2015-16/385 dt. 18-08-2015) - 1. The Mis Sheet shall be
integral part of all renewal and fresh sanction at all sanctioning level.
_________________________________________________________________________________
20
3. Verification of MIS sheet and correction of data shall be integral part of BCC closure. Suitable
Column/Row be incorporated in BCC Format.
51. Alignment of Saakshar Bharat with Pradhan Mantri Suraksha Bima Yojana (PMSBY)
(HO Cir No. MKT/INS/25/2015-16/381 18.08.2015) - The Saakshar Bharat Mission is
operational in rural areas of 410 districts of the country, where adult female literacy rate was 50
percent or below as per 2001 Census. The principal focus of the Mission is on women besides SCs,
STs, Minorities and other disadvantaged groups. A good number of accounts were mobilized from
beneficiaries of Saakshar Bharat Mission under Pradhan Mantri Jan Dhan Yojana (PMJDY). As part
of the Financial Literacy, it is now proposed to promote the Pradhan Mantri Suraksha Bima Yojana
in a major way among the nearly 35 million learners who have successfully passed the assessment
tests and certified as literate
52. Revised ROI in Case of Loan Agains Banks Own Deposit (Ho Cir RMD/29/201516/377 dt. 14-08-2015) - (1) Advance against self deposit 1% over the applicable rates of
interest on deposits. (2) Advance against 3rd party deposit 2% over the applicable ratre of interest
on deposits with a floor of base rate.
53. Udyog Aadhaar for MSME Registration (HO Cir RD & PS:37:2015-16:362 05-08-2015)
We have been informed by Indian Banks Association (IBA) that Kamath Committee Report on
Financial architecture of MSME sector has given several recommendations including
recommendation for universalization of registration. In consonance with the recommendation of the
Kamath Committee, and to improve ease of doing business, the Ministry of MSME through NIC has
developed a web portal (http://em.msme.gov.in) for online filing of Entrepreneurship Memorandum
I and II required for obtaining MSME registration. In addition to simplifying the registration
process, the MSME registration form has also been simplified. Under one page simplified
Registration form "Udyog Aadhaar", the MSMEs will self-certify its existence, bank account details,
business activity details, promoter/owners Aadhar, employment and ownership details and other
information required. Based on the simple form submitted, the business would be issued, a unique
identifier or Udyog Aadhaar making the unit formally registered as a SSI or MSME. Udyog Aadhaar
registration will enable the units/enterprises to seek information and apply online for various
services being offered by various ministries and Departments. It will also help in creation of a data
base for MSMEs.
54. TDS ON TERM DEPOSITS INCLUDING RECURRING DEPOSITS AND VARIABLE
PROGRESSIVE DEPOSITS (HO CIR CS&P/19 /2015-16/332 July 22, 2015) -The bank is
liable to deduct TDS on various payments made to the depositors, vendors and professionals etc.
Reference is invited to Circular No. HO/ACT/05/2015-16/195 dated 01.06.2015 on Income Tax
Provisions in respect of Tax deducted at source (TDS) vide which detailed updated guidelines
relating to tax matters (TDS) to be strictly followed at branches/Regional Offices/Head Office level
have been issued.As per Income Tax Act the meaning of the word time deposits means deposits
including recurring deposits repayable on the expiry of fixed periods. Earlier, TDS was not deducted
on Recurring Deposits and Variable Progressive Deposits but with effect from 1st June 2015 TDS
on Recurring Deposits would be deducted @ 10% under Section 194A if the interest credited or
paid (likely to be credited or paid) during the Financial year exceeds Rs 10000/- for bank as a
whole.
55. Rights of transgender persons Changes in bank forms/applications etc ( Circular
No. HO/CS&P/18/2015-16/331 July 22, 2015) - It has been brought to RBI notice that
transgender persons face difficulties in opening accounts as there is no provision for them in the
account opening and other forms. In this connection, RBI has advised the banks to refer to the
_________________________________________________________________________________
21
judgement dated April 15, 2014 of the Supreme Court in the case of National Legal Services
Authority v. Union of India and others [AIR 2014 SC 1863: (2014) 5 SCC 438] on treating all
transgender persons as third gender. The Supreme Court, in that case, upheld transgender
persons right to decide their self-identified gender and directed the Centre and State Government
to grant legal recognition of their gender identity such as male, female or as third gender. RBI vide
their Circular No. RBI/2014-15/572 DBR.No.Leg.BC.91/09.07.005/2014-15 dated 23.04.2015 has
directed the banks to include third gender in all forms/applications etc. prescribed by the Reserve
Bank or the banks themselves, wherein any gender classification is envisaged. Keeping in view the
RBI instructions/ guidelines on accepting the third gender Transgender has been developed and
implemented in CBS. Now user can opt any code amongst as per the help message available in
CUMM: - Enter customer Gender. M - Male, F - Female, T - Transgender, O Other
All branches are advised to include the third gender Transgender on all existing customer
Identification Forms (OF- 1A) and on all other forms lying at the branch till the time revised
AOF/forms with the third gender incorporated is made available at the branches.
56. FUNCTIONING OF RETAIL CREDIT PROCESSING CENTRES(RCPCs) (Circular No.
HO:Retail:24:2015-16:327 Date: 23.07.2015) - In order to expedite the processing of the
proposal under Housing loan and Oriental Mortgage Loan Scheme and to reduce the turnaround
time (TAT) 23 dedicated Retail Credit Processing Centres (RCPCs) have been made operational from
01.07.2015
57. REDUCTION OF TURN AROUND TIME(TAT)( Circular No. HO: Retail:22:2015-16:315
Date: 16.07.2015) This is in reference to the deliberations of the Top Management for reviewing
the strategy of FY 2015-16 held on 4th April2015 at Corporate Office Gurgaon. As an outcome of
the deliberations for the growth of Retail Credit, it was decided that TAT should be reduced as
under: Housing Loan-7 days Vehicle Loan- 24 hours for existing clients & 3 days for new
customers.
58. Clarification with regard to classification of an enterprise as women entrepreneurs (HO Cir
RMD/24/ 15-16/308 dt 14-07-2015) An Enterprise shall be classified as Women Entrepreneurs
Enterprise where One or more women entrepreneurs have not less than 51% financial holding. In
case of partnership concerns, one or more women partners have not less than 51% profit/loss
sharing ratio as per the Registered Partnership Deed. (for concession in ROI to women enterprises)
59. Framework for dealing Fraud in Large Borrowal Accounts of `50.00 crore and above
Identification and reporting of Red Flagged Accounts (RFA) (Ho Cir
CMC/RFA/17/2015- 16/300 Dated 04.07.2015) a) Concept of Red Flagged Account (RFA), on the basis of signals reflected by EWS is important
step in fraud risk control, Identifying Early Warning Signals (EWS), suspicion of fraudulent activity.
b) Thresh hold limit for RFA & EWS is an exposure of Rs.50.00 Cr or more at the level of bank,
irrespective of the lending arrangement.
c) All the Fraud classified as RFA must be reported on the CRILC (Central
Repository of Information on Large Credit) data platform.
d) CRILC platform is being enabled to accept the RFA and Fraud categories shortly.
Formation of Fraud Monitoring Group (FMG), for the purpose of classifying the account
under RFA as per alert observed in EWS.
a) The Officer responsible for the operation in the account shall report any manifestation of the
EWS, promptly to Fraud Monitoring Group (FMG) constituted by the bank, such officer may be held
responsible for non- reporting or delay in reporting of fraud.
b) The FMG should report the details of loan accounts of Rs.50.00 Cr and above to the MD &CEO
every month where EWS are observed.
_________________________________________________________________________________
22
c) A report on Red Flagged Account (RFA) shall be put up to the Special Committee of the Board for
monitoring and follow up of Frauds (SCBF).
60. Levying of Penalty of 1% on Premature Withdrawal; for Individual Term Deposits
(including NRO and NRE Deposits) Above Rs. 15 Lakhs and for Non-Individuals
irrespective of amount; issued/renewed on or after 10.07.2015 (HO Cir
HO/CS&P/15/2015-16/290 July 09, 2015)
(a) It has now been decided to levy penalty on Premature withdrawal of Term Deposits of
Individuals (including NRO and NRE deposits) above Rs. 15 Lakhs.
(b) It has now been decided to levy penalty on Premature withdrawal of Term Deposits of Non
Individuals irrespective of amount.
61. As per I&C Circular no. HO: I&C: 2015-16:12:136 dated 11.05.2015 on Frauds in
Vehicle loan accounts, Branches are advised that in case of Tractor loans, payment
should be made directly to the manufacturing company (HO Cir RD & PS:31:2015-16:277
03.07.2015)
62. Keeping in view the high Gross NPA in the Edible Oil & Vanaspati Industry in our Banks
portfolio, Edible Oil & Vanaspati shall be classified under Restricted Area of Lending.
_________________________________________________________________________________
23
RETAIL CREDIT PRODUCTS

Oriental Education Loan Scheme (studies in India & Abroad)
Eligibility
Moratorium
Period
Loan Amt
Student who is an Indian national, meritorious student and has secured admission in an
institute recognized by a statutory body or abroad through entrance test/ merit based
selection process after completion of HSC (10+2 or equivalent).
Assessment of loan will be bases of employability and earning potential of the student
upon completion of the course ensuring repayment of loan through future installments.
In case of admission under Management quota, meritorious student who qualified for a
seat under merit quota for reason of convenience or choice of courses shall be considered
eligible.
Repayment Holiday / Moratorium Course Period + 1 year
Grace period 12 Months after completion of course
RLCC-RH is empowered to allow for moratorium taking into account spells of underemployment/unemployment two or three times (maximum of 6 months at a time) during
the life cycle of the loan. Simple interest is to be charged during this moratorium period.
Moratorium period for working persons may be considered upto study period only.
Banks may also encourage student borrower who wants to set up start-up units by giving
moratorium on repayment of principal and interest during incubation period which may be
considered upto 2 years(apart from the original moratorium). RLCC-RH is the designated
authority for this.
Regional Heads are empowered to permit extension in study period upto a maximum of
two years, in cases where the student is not able to complete the course/study for reasons
beyond his/her control after examining the facts and genuineness of the case. In case the
student discontinues the course midway appropriate repayment schedule will be worked
out in consultation with the student/parents.
Term Loan
India Rs.10.00 Lac
Abroad Rs.20.00 lacHigher loans can be sanctioned by HO/RO authorities
Category A
Category B
Other institution
` 25.00 Lacs Without
` 10.00 Lacs Without
Actual as per fee structure
Collateral Security
Collateral Security
of Institution
In case higher loan limit is requested (from the above mentioned limit) for category A & B
institutions, 100% tangible security with value equivalent to loan amount is required. Higher
amount can be sanctioned by Head Office/ Field functionaries as per Discretionary power chart)
Category A
Category B
Other Institutions
NIL
NIL
Up to ` 4.00 Lacs
NIL
Considered under Priority

sector
Margin /
Process
Fee
Above ` 4.00 Lacs
5% For studies in India

15% For studies Abroad
Rate of
Interest
P/Fee- For study in India Nil

For study abroad Up to ` 4.00 Lacs Nil; Above ` 4.00 Lacs - 1% of loan amount to be
recovered upfront, subject to minimum of Rs. 10000.00 plus service tax, if any.
If the student applies through Vidya laxmi Portal, he/she will be required to pay fee/
charges, if any levied by NSDL.
Scholarship/assistantship can be treated as margin.
Institutions
Rate of Interest
For Category A
Base Rate
For Category B
BR+0.50%
Others- General &
Up to ` 4.00 Lacs
BR + 2.50%
working Professionals
Above ` 4.00 Third Party Guarantee
BR + 3.00%
_________________________________________________________________________________
24

Lacs & Upto ` Immovable Property or
7.50 Lacs
Tangible Assets
Above ` 7.50 Lacs
Security
Repayment
Discretione
ry POwer
.
BR + 1.75%
BR + 1.75%
For
Vocational BR+2.50%
Education
Simple interest till moratorium period. If the monthly interest is serviced during moratorium
period, concession of 1% in ROI is allowed. 0.50% concession on ROI for women beneficiary.
SC/ST & disabled students. However, the 0.50% concession will be available for only one
characteristic
Co-obligation of Parents / Guardian. In case of married person, co obligator can be either
spouse or parent or parent in law. Parental co-obligation can also be substituted by a suitable
third party guarantee, power vested with RLCC-RH. (Circular No. HO:Retail:39:201415:764 dated 19.12.2014)
For category A & B institution:
Institutions
Loan Limit
Collateral Security
For Category A institutions
Upto ` 25.00 Lacs
NIL
For Category B institutions
Upto ` 10.00 Lacs
NIL
For other Institution:
Up to Rs. 4 lac Nil, > Rs.4 Lac to Rs.7.50-Lac:- One Guarantee.> Rs. 7.50 :Mortgage /
Extension of Charge or NSC/ UTI / LIC / FDR/Bonds along with assignment of all future income
( For serving professionals/Executives & Defence Personnels: One personal guarantee and post
dated cheques from salary account)
Irrespective of loan limit Upto 15 Years
Category
For study India/ Abroad
(Rs. In lacs)
Scale I
7.50
Scale II
10.00
Scale III
15.00
Scale IV
20.00
AGM & RLCC AGM
25.00
DGM & RLCC DGM
30.00
GM & RLCC GM
40.00
HLCC ED & ABove
100.00
Points to remember for interview purpose:

Normally the loan shall be disposed off within 15 days of receipt of duly completed
application with supporting documents. Rejection of loan application, if any, shall be done by
referring the matter to the next higher authority with valid reasons for declining the proposal
and obtaining their permission.
Education loan for diploma/ degree courses simultaneously may also be considered for two/
dual courses provided by the educational institution.
Sanctioning authority can consider co-obligation of one parent where it is not feasible, as in
the case of widow/ widower/ divorcee/ separated/ estranged parents/ single parents/ one
parent as NRI etc.
Sanctioning authority, on merit, can accept two alternate joint borrowers of sound means, in
case of student whose parents are having adverse remarks in their credit history (CIBIL etc.)
and adverse feature of loan account standing in their name.
For category A & B Institutions: The nodal branch located nearby to Category A & B
institutions shall sanction education loan proposal at their branch, however they may
forward the application to the branch situated nearest to the residence/ native place of
students, if opted by the students. The sanctioning branch shall comply with other due
diligence and pre sanction visit with the help of branch located nearby residence/ native
_________________________________________________________________________________
25
place of student. For other institutions: The loan shall be allowed preferably at the place
of domicile. The Regional Heads may consider/ allow education Loan at a place other than
the place of domicile on merits. The branches have been allowed to sanction education loan
to the students belonging to the same district irrespective of the distance. However, if the
loan is to be disbursed by the branch located outside the district of domicile of the student,
the discretion shall lie with the Regional Head. (Circular no. HO:Retail:09:2015-16:121
dated 13.05.2015)
It is mandatory to obtain life insurance policy on the students availing education loan. (Cir
No. HO/Mktg/JV/10/2013-14/424 dated 31.07.2013)
Under component of finance, College bus fare in case of study in India and travel expenses/
passage money for studies abroad are also covered. (Circular No. HO:Retail:39:201415:764 dated 19.12.2014)
Repayment of loan is generally accepted via Equated Monthly Installment method. However,
after moratorium period (study + grace period), many times the salary level at start of the
career of the student may not facilitate comfortable payment of EMI, in such a situation,
Telescoping / Stepped-up installment method can be adopted. However, the Regional
Head is authorized to permit such Telescoping / Stepped-up installment option after
examining the repaying capacity of student. In this method, installment amount will be of
lesser amount (but shall be more than accrued monthly interest).
Existing Education Loan borrowers, who had availed Education Loan with a repayment
period upto 10 years shall have the opportunity of getting the repayment period extended
upto 15 years, as the case may be, and the same shall not be treated as restructuring.
The powers for allowing such extension in repayment period under Education Loan
Scheme to the existing Education Loan borrowers have been vested with respective
Sanctioning Authority.
NSDL has developed a portal namely Vidya Lakshmi Electronic Platform, which
provides a single window for students about information of government scholarships and
education loans of banks and single loan application for students for all banks connected to
the portal. (Cir No. HO: Retial:48:2015-16:715 dated 10.12.2015)
Takeover of Education loan is not permitted.
Interest switch over option fee 0.50% of outstanding loan amount as on date (Circular no.
HO:Retail:19:2014-15:442 dated 29.08.2014)
As payment of interest is optional during the moratorium period, education loan cannot be
classified as NPA during the moratorium period. (Circular No. HO:Retail:35:201415:650 dated 10.11.2014)
In case the education loan becomes NPA there shall not be any reversal of interest accrued
during the repayment holiday/moratorium period. (Circular no. HO:Retail:47:201314:1182 dated 28.03.2014)
Under follow up monitoring, branches need to contact college/University to obtain progress
report on the student. In case of foreign study loan Branches shall obtain SSN/Unique
identification number/ ID card and note the same in Banks record. PAN card is not
mandatory for availing student loan, however, student may be asked to submit PAN during
the course of studies, if not available at the time of sanctioning. UIDAI may also be
captured in system. For recovery of dues practices such as displaying names and
photographs of defaulting students be stopped herewith. (Circular no.
HO:Retail:32:2013-14:841 dated 14.12.2013)
Financing to more than one member of the family will be considered as separate. Education
loan is not a loan for a family as a unit but it is individual wise.
Education loan to the students of study centers/ distance learning mode by some
universities such as Punjab Technical University/ Manipal University etc is not permissible.
_________________________________________________________________________________
26
Medical courses offered by Institutions in Nepal, approved by Medical Council of India only
are eligible for granting education loan. Any Indian Citizens who intend to obtain primary
medical qualification from any foreign country on or after 15th May2013 are not required to
obtain Eligibility Certificate from Medical Council of India. (Circular no.
HO:Retail:42:2013-14:1035 dt: 07.02.2014)
Caution deposit, Building fund/ refundable deposit supported by Institution bills/ receipts,
subject to the condition that the amount does not exceed 10% of the total tuition fees for
the entire course. (An undertaking to be obtained from the student that refund will be
deposited in the deposit/ loan account with the Bank)
Purchase of computers-essential for completion of the course*. Purchase of books/
equipments/ instruments/ uniforms*. Any other expenses required to complete the courselike study tours, project work, thesis, etc*. * A realistic assessment may be made for the
requirement under these heads, however the maximum amount under these heads be
capped at 20% of the total tuition fee payable for completion of course
Discretionary power to consider loan for Commercial Pilot Licenses and Air Hostess is
presently vested with Head Office. In case of commercial pilot course, Life Insurance Cover
shall be obtained.
Tuition fee for first semester may be released to the institution without insisting
for visa from the student, subject to the condition that in case the visa is not granted,
the parents of the students will deposit the loan amount with up to date interest
immediately.
Service area approach is not applicable to education loan. (Circular No. HO:Retail:42:201516:655 dated 17.11.2015).
In all cases, an appropriate affidavit from all joint borrowers need to be obtained containing
assignment of future income of the student on getting employment after completion of
course for payment of installment.
Padho Pradesh Scheme (Circular HO: Retail:25:2014:417 dt. 29.08.2014)

Objective
Income
ceiling
Interest
subsidy
The objective of scheme is to award interest subsidy to meritorious students

belonging to economically weaker section of minority communities. Student
should have secured admission for Masters, PHD, M. Phil. Scheme is
applicable for higher studied abroad.
From all sources ` 6 Lac (to applicant and his /her parents)
Interest shall be borne by the Govt of India till the moratorium period of edu
loan (course period+1years or six month of getting job)
Education Loan Oriental Skill Loan Scheme

Objective
Eligible
Person
Eligible
Institute
(Circular No. HO:Retail:36:2015-16:538 dated 07.10.2015)

Oriental Skill Loan Scheme aims at providing a loan facility to individuals who
intend to take up skill development courses as per the Skill Loan Eligibility
Criteria
The applicant should be an Indian national. There is no minimum age.
Minimum qualification as required by institution/ organisation as per NQSF
(National Skill Qualification Frameworks)
Any individual who has secured admission in a course run by Industrial
Training Institutes (ITIs), Polytechnics or in a school recognised by Central or
State Education Boards, training partners affiliated with National Skill
Development Corporation (NSDC), State skill mission, state skill corporation
_________________________________________________________________________________
27
Loan Limit
ROI
Security
Moratorium
Period
Repayment
Process fees
leading to a certificate/degree/diploma issued by such organisation as per

NQSF. There is no minimum course duration.
Rs. 5,000.00 to Rs. 1,50,000.00, Component of finance
Tuition/Course fees/ Assessment fees/Examination fees/Library
Charges/Laboratory Fee/ Caution Deposit/ purchase of Books,
equipments and instruments
Any other reasonable expenditure found necessary for completion of
the course (As such courses are localised boarding, lodging may not
be necessary based on cost of living in the particular area) however,
wherever found necessary, the same shall be considered on merits).
Life Insurance Premium of students, if obtained.
BR+2.50%, Scheme: TL646
0.50% concession to women beneficiary, SC/ST & disabled Students.
However, the concession will be available for only one characteristic.
No collateral or third party guarantee. Parents / guardian to be joint borrower
(s) (irrespective of their means and age of student). In case of married
person, co-obligator can be spouse or the Parent(s) / Parent(s)-in-law.
For Course of duration upto 1 year
6 month from the completion of
course
For courses of duration above 1 year 12 month from the completion
course
Loans upto Rs. 50,000.00
Upto 3 years
Loans between Rs. 50,000.00 to Rs. Upto 5 years
1,00,000.00
Loans above Rs. 1.00 Lac
Upto 7 years
The above repayment period is exclusive of moratorium period.
Nil, prepayment penalty: NIL
Oriental Car/Vehicle Loan Scheme for General Public

Eligibility
For two Wheelers - ` 10,000/- per month gross

For Four Wheelers: ` 20,000/- per month gross
For existing Large and Mid corporate borrower Rs 40000 per month
a) Salaried Individuals with confirmed / minimum 1 year of service. The length of
previous employers service(s) may also be taken into consideration for the
criterion of 1 year service.
b) Professionals (including doctors)
c) Business entities Established business for not less than two years.
d) Agriculturist based on their land holding and repayment capacity.
e) Non-Resident Indians- Jointly with Resident Indians (close relative)
Loan Amt
OPEN CAR LOAN: Existing Large & Mid Corporate Borrowers (Firm/Company)- Exposure Limit
Rs. 10.00 crores and above
Two Wheelers - ` 10.00 Lac &
Four Wheelers- ` 100.00 Lac (For 2nd Hand car loan 25 Lac)
In case of salaried person 30 month gross salary/ pension subject to take home criteria based
upon gross monthly income as below:
Upto ` 50000/- pm
40%
Above ` 50000/-pm
30%
_________________________________________________________________________________
28

ROI
Reimbursement
of finance
Margin / Process
Fee
Repayment
Tenure
Up to 3 years
Above 3 years
NORMAL / CARD RATE

BR+0.50%
BR+0.75%
For 2nd hand car loan

BR+3.00%
* Additional concession of 0.25% in rate of interest for captive/ loyal customers
1. Reimbursement of finance for new four wheelers purchased out of own funds from the
authorized Car dealer.
2. The reimbursement shall be within 3 months of purchase and shall be treated as new
vehicle loan
15% on on-road cost Old Car: True value(TVS): 20%, Others (Non TVS): 30%
Process Fee: 0.50% Max. Rs.7000
Prepayment Penalty / documentation charges/ upfront fee- NIL
New Car 84 Months ;
For salaried
For non pensioner Business/professional
Agriculturist
(pension)
salaried
60 Years
65 Years
No age bar
Duration of crop
For 2nd Hand car loan:
Age of Vehicle
If car is older than 3 yrs & upto 4 yrs.
If car is older than 2 yrs & upto 3 yrs.
If car is upto 2 yrs old
Security
Discretionery Power
Repayment Period
36 Months
48 Months
60 Months
Hyp. Of New Two wheeler / Four wheeler purchased out of Bank Finance
For Two wheelers
If borrower gross monthly income is below
`30000.00 One personal guarantee
For Cars/MUVs
If borrower gross monthly income is below
`40000.00 One personal guarantee
Incase of 2nd hand car
One third party guarantee acceptable to
Bank
Show room price + one time road tax + Registration Charges & First years
insurance cost
OPEN CAR LOAN: Hyp. Of new CAR/ MUV, Collateral :NIL
Scale
For Two wheeler
For New Car
2nd Hand Car Loan
I
II
III
IV
V
VI
VII
` 1 Lac
` 2 Lac
` 2 Lac
` 2 Lac
` 2 Lac (As RH 10
Lac)
` 2 Lac (As RH 10
Lac)
` 2 Lac (As RH 10
Lac)
` 6 Lac
` 10 Lac
` 20 Lac
` 30 Lac
` 50 Lac (As RH ` 100
Lac)
` 100 Lac (As RH ` 100
Lac)
` 100 Lac (As RH ` 100
Lac)
` 2 Lac
` 5 Lac
` 5 Lac
` 10 Lac
` 15 Lac (As RH same
power)
` 15 Lac (As RH ` 25
Lac)
` 15 Lac (As RH ` 25
Lac)
1. The payment to car dealer will be made on case to case basis i.e. condition of sourcing 10
cars is waived. (Circular no. HO:Retail:39:2014-15:764 dated 19.12.2014)
2. Income of spouse,Father,Mother, Brother, Son, Daughter in law & Unmarried daughter can
be co-applicant in the account. (Circular no. HO:Retail:34:2014-15:649 dated
11.11.2014)
3. Close relative in case of NRI for considering Retail Loan are Spouse, Father, Mother
(including step mother), Son (including step son), Sons wife, Daughter (including step
daughter), Daughters husband, Brother (including step brother), Brothers wife, Sister
_________________________________________________________________________________
29
4.
5.
6.
7.
(including step sister), Sisters husband. HUFs are not eligible. (Circular no.
HO:Retail:32:2014-15:610 dated 27.10.2014)
In case the vehicle is financed in the name of company, there is no need to register the
charge with ROC as specify charges or vehicle is already registered with RTO for
hypothecation of charge. (Circular no. HO:Retail:14:2014-15:217 dated 19.06.2014)
In built sanction of four wheeler loan to borrowers availing regular loan credit facilities from
Bank for last one year. Validity of sanction upto one year/ date of renewal whichever is
earlier. Loan limit Income upto Rs. 50000 p.m. Rs. 5.00 Lac and And Above Rs. 50000
p.m. 10 Lac. Equivalent to 20 times of gross annual income. Process fee shall be charged
at the time of disbursement only. Clause of per car sub limit is removed for RLCC. (Circular
no. HO:Retail:14:2014-15:217 dated 19.06.2014)
Classification of advance will be as per activity of borrower. Same chassis no. & Engine no.
Be mentioned on Vehicle; Invoice & RC Book.
POA (Loan Doc -35/5.1) waived for Vehicle Loan Account, however, in order to mitigate the
risk, the content of the POA be taken in the form of Undertaking/affidavit from the obligants
alongwith Form no. 29 and Form no. 30 (RTO form). (Circular no. HO:Retail:40:201516:638 dated 09.11.2015)
Housing Loan (Oriental Home)

Eligibility Salaried employees , Self Employed. Professionals, Businessmen, Farmers ,
HUF.(including Staff, NRIs & PIOs) having assured source of income.
Loan
For Business man- 40 times Gross monthly Income and for salaried personAmt
60 times Gross monthly Income
Rs.15.00 lac(Furnishing) (restricted to 30% value of present realizable value of
house / flat)
Priority
Population
Loan Amount
Overall cost of house
Sector
10 Lac and above
28.00 Lac
35.00 Lac
Other Center
20.00 lac
25.00 Lac
Loans for Repairs to damaged dwelling unit of families upto Rs. 5.00 Lac in
metropolitan centres and up to Rs. 2.00 Lac in other centres. Loans granted for
construction of toilet in the house qualify for classification under priority sector
ROI
Margin /
Process
Fee
Irrespective of loan
Base Rate
limit
For 3rd house
BR + 0.50%
onwards
Net Take home Criteria
Upto ` 5 Lacs
50%
Above ` 5 Lacs & Upto ` 10 40%
Lacs
Above ` 10 Lacs
30%
Margin:
Loan Amount
30.00 Lac
> 30.00 Lac to Rs.
Margin
20%
10% to < 20%
25%
Relaxation under RLCC by

5%
5%
5%
LTV
80%
> 80% to
90%
75%
ROI
BR
BR+0.10%
BR
_________________________________________________________________________________
30

75.00 Lacs
20% to < 25%
75% to <
BR+0.10%
80%
> Rs. 75.00 Lacs
25%
75%
BR
For Home Furnishing
25% of total cost of renovation/ furnishing
Prepayment penalty is Nil.
0.50% of loan amount subject to maximum of Rs. 20000/- plus service tax, if
any. 100% concession under Festival Bonanza Offer (Circular no
HO:Retail:40:2014-15:771 dated 29.12.2014)
Age
Minimum Age: 18 years as on date of application
Maximum Age:
For salaried (with pension) & other upto 70 years
Individuals
For Salaried (Non Pensionable)
upto 60 years or superannuation,
whichever is earlier
Repayment For Home Loan Upto 360 months, including the moratorium period of 18
months subject to age of dwelling unit as under:
Age of Dwelling unit less than 10 Years
Maximum 30 Years
Age of dwelling Unit Older than 10 Years
Maximum 25 Years
For Home Furnishing Loan
Maximum
of
120
Months
Security
Primary Equitable/ Registered Mortgage of financed property/property proposed
to be furnished; Collateral- Nil
Power
w.e.f. 15.11.2014
chart
Scale
Purchase/construction
Repair/ and (Oriental Personal loan
(Scale V
home loan scheme for existing
to VII
borrower)
as RH
I
` 10 Lac
` 3 Lac
or BI)
II
` 25 Lac
` 5 Lac
III
` 50 Lac
` 10 Lac
IV
` 100 Lac
` 10 Lac
V
` 150 Lac
` 15 Lac (As RLCC RH ` 15 Lac)
VI
` 300 Lac
VII
As RLCC RH ` 500 Lac
HLCC- Full
Full
ED
The criteria for assessing MPBF by Gross Income is removed. MPBF be assessed on the basis
of Margin & Net Take Home Criteria only, whichever is less. (Circular No.
HO:Retail:48:2014-15:980 dt: 17.03.15
As per RBI guidelines, In cases where the cost of the house/dwelling unit does not exceed `
10.00 Lacs, stamp duty, registration and other documentation charges may be added to the
cost of the house/dwelling unit for the purpose of calculating LTV ratio. (Circular No.
HO:Retail: 46:2014-15:952 dt: 07.03.15)
In case of professionals, Self Employed person and business man, two years average
income be considered for arriving MPBF under home loan scheme. However, it must be
ensured that two IT returns not to be filed together in same financial year.
However, RLCC-RH is permitted to relax this condition on merit of the case. (Circular No.
HO:Retail:44:2015-16:680 dated 30.11.2015)
_________________________________________________________________________________
31
The interest switch over option shall be available to existing borrower on any occasion,
irrespective of loan limit 0.50% of outstanding as on date of switch over subject to
maximum of Rs. 50,000.00. Borrower can exercise Interest Switch Over any number of
times. It shall be also available to Fixed Interest rate home Loan scheme. (Circular no.
HO:Retail:16:2015-16:258 dated 29.06.2015)
For non salaried(self employed /small business/ Traders) where ITR are not filed: subject to
complete satisfaction of the sanctioning authority as regard to the earning/income vis-s-vis
repayment capacity of the borrower in this category by subjective/objective means available
at his command. Housing loan to this categoryof borrower with a maximum limit of Rs. 5.00
lacs is permitted. As per IT rule, IT return upto Rs. 2.50 lac is not mandatory to file.
(Circular no. HO:Retail:16:2015-16:258 dated 29.06.2015)
Home loan shall be allowed for purchase of flat/ house after obtaining the following:
o Certified copy of approved construction plan/ map (wherever applicable)
o An affidavit cum undertaking the the house / flat has been constructed as per
sanctioned plan
o Building byelaws and as far as possible has a completion certificate. A registered
architect appointed by the Bank must also certify before disbursement of loan the
the built up of property is strictly as per sanctioned plan and/or building bye laws.
No loan shall be given in respect of properties meant for residential use but which the
applicant intends to use for commercial purposes.
Service tax paid by Builders to be treated as component of finance. (Circular No.
HO:Retail:44:2015-16:680 dated 30.11.2015)
State Govt. of Bihar has passed Bye Laws through notification dated 29.01.2015 wherein the
conditions of pre-approved map plan upto plot size not more than 300 sq meters has been
exempted subject to compliance of terms & conditions stipulated in Bihar Extra Ordinary
Gazette notification dated 29.01.2015. Hence, the branches in the State of Bihar need not
insist for sanction plan by the competent authority subject to condition that the plot is not
more than 300 sq meters. The above relaxation is subject to above mentioned conditions.
However, loan disbursing branches shall keep copy of such Bihar Govt. notification alongwith loan documents. (Circular No. HO:Retail:10:2015-16:206 dated 10.06.2015)
Value to loan ratio should be kept at 150% (or Loan to Value Ration to be kept at 66.67%)
in case of extension of charge in other loan account. (Circular no. HO:Retail:32:201415:610 dated 27.10.2014)
ROI for 3rd House onwards is BR+0.50%. Along with GLPP premium, Purchase price &
installation charges of rooftop Solar PVs and non solar lighting, wiring and other such fittings
shall also constitute component of finance. (Cir/HO: Retail:39/2014-15:764 dated
19.12.2014).
Power to Takeover of HL is delegated to BM provided account should be classified as
standard Regular by the other Bank and there should not be any rephasement/
reschedulement in the account in the last 3 years. Certificate from Bank/ FIs waived.
Loan amount for purchase of plot should not exceed 50% of the eligible loan amount.
Sanctioning of Home loan to borrower who defaults in CIBIL reports other than Credit card
account lies with HLCC-ED. (Circular no. HO:Retail:40:2013-14 dated 23.01.2014)
Banks charge of mortgage shall be noted in the Central Registry System within 30 days of
creation of such charge
Tie up arrangement with Builders for housing loans should be made at initial stage of
launching of the project. Tie up with the builder is also beneficial for borrowers point of
view since expenses on NEC are saved and delivery of credit facilities is speedy. (Cir No.
HO/Retail/61:2015-16:873 dated 04.02.2016)
_________________________________________________________________________________
32
The clause regarding first right to refusal by our Bank be invariably incorporated in the
sanction letter of housing projects financed by the Bank. (Circular no. HO:Retail: 06:201415:18 dated 09.04.2014)
Power of Concession in ROI to RH To captive/loyal customers who are having annual
average balance in their saving account Rs. 1.00 Lacs or in current account Rs.5.00
Lacs and above. As well as to Directors, Partners or Proprietor of all Cash Credit account
holders having Credit Rating upto 4 for last 24 months
The penal interest shall be charged at the rate of 2% over and above the normal rate of
interest on irregular amount of loan and for the period of irregularity
Oriental Home Loan Point is launched at New Railway Road branch (0071) Gurgaon with the
objective of marketing of Retail Loans, expeditious sanctions and disbursement within 5
working days. (Circular no. HO:Retail:37:2014-15:705 dated 27.11.2014)
All home loan account to be reviewed annually. (Circular no. HO:Retail:31:201415:589 dated 17.10.2014)
Wherever Registered/Equitable mortgage cannot be created in case DDA, HUDA etc.
Undertaking as per annx 14, security documents such as Annx 17 & 18, Power of
attorney as per annex. 6 and letters from borrowers to reinforce the right of the Bank to
recover its dues. (Circular HO:Retail:30:2014-15:588 dated 17.10.2014)
Maximum limit of eligible housing loans under CRGFS has been enhanced from the present
ceiling of Rs. 5 lac to Rs. 8 Lac. (Circular no. HO:Retail:33:2014-15:619 dated
01.11.2014)
No home loan to be considered for HUF entities or to partnership firms where HUF is a
partner. (circular no. Retail:22:2013-14:578 dated:17.09.2013)
Terms of Repayment
EMI; or servicing of interest during moratorium period (Max 18 months)
Payment of only interest for first five years and thereafter EMI
Request for preponement of repayment period can be considered once during
currency of loan Repayment of agriculturist may be by way of
monthly/quarterly/half yearly instalments.
If borrower makes bullet payment, EMI can be reset according to residual period.
Rajeev Rinn Yojna (RRY)
(Circular No. HO:Retail:27/2014-15:500 dated 19.09.2014)

Eligibility
Income
Certificate
Loan limit
Interest subsidy
Below Poverty Line(BPL): person holding BPL card issued by State

Government
Economically Weaker Section (EWS): Person having an average
annual income upto ` 1 Lac
Low Income Group (LIG): Household average annual income between
` 1 Lac and uptp ` 2 Lac
IT Return/Form16, if available
Income certificate issued by the competent authority as
notified by the respective State Govt. Notified competent
authority is available on
http://mhupa.gov.in/RRY/RRY_page.htm
Self declaration form along with income certificate
For EWS
For LIG
` 5.00 Lac
` 8.00 Lac
Interest subsidy is available for loan amount upto ` 5 lac
_________________________________________________________________________________
33
Margin
Security
ROI
Repayment
period
Moratorium
Period
Process Fee
Size of dwelling
unit
Calculation of rate of interest for beneficiary would be net of subsidy from

GOI.
10%
Mortgage of unencumbered dwelling unit standing in the name of
borrower
Loans under the scheme are covered under Credit Risk Guarantee
Fund Trust for Low Income housing
BR
20 Years (maximum)
24 months (maximum)
Interest charged in the account need to be serviced and can not be
capitalized
Subsidy is provided by HoHUPA during the period of moratorium
Nil
Rs. 500.00 is provided by Ministry and same may be treated as
process fee
Size of dwelling
EWS
LIG
unit
Minimum Size
21 sqm
28 sqm
Maximum Size
60 sqm
60 sqm
Points to remember:
In case of NPA accounts, subsidy will be suspended.
Cost of advocate, valuer, mortgage, insurance shall be borne by the applicant.
Location of land should be in urban areas where total population should not be less that 1
Lac as per 2011 census.
Housing for All (Urban)-Credit Linked Subsidy Scheme

To provide housing loans to Economically Weaker Section (EWS) /
Low Income Group (LIG) in Urban Area. 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.
Eligibility Criteria
For EWS
For LIG
` 3.00 Lac as household ` 3.01 to Rs. 6.00 Lac as
income per annum and household
income
per
house size of 30 sq mtr
annum and house size
upto 60 sq mtr
Construction of new house can be undertaken as per the scheme
guidelines without any restriction on carpet area. The carpet area
restriction shall be applicable only for extension/ repair of house.
Preference under the scheme should be given to Manual
Scavengers, Women (with overriding preference to widow),
persons belonging to SC/ST/other Backward classes/Minorities,
persons with disabilities and transgenders.
ROI, Loan Limit
BR, No limit
However, interest subsidy has been restricted on first Rs. 6.00
Purpose
_________________________________________________________________________________
34

Security Criteria
Subsidy Amount
Process fees
lacs of loan, additional loan will be at unsubsidized rates

The house constructed/acquired under the scheme should
be in the name of the female head of the household or in
the joint name of the male head of the household and his
wife, and only in cases where there is no adult female member in
the family, the house can be in the name of male member of the
household.
Beneficiaries of EWS and LIG would be eligible for an interest
subsidy at the rate of 6.5% for tenure of 15 years or during
tenure of loan whichever is lower. The Net Present Value of
the interest subsidy will be calculated at a discount rate of
9%.
Under the mission Beneficiaries can take advantage under one
scheme out of following four:
Slum rehabilitation of Slum Dwellers with participation of
private developers using land as a resource
Promotion of Affordable Housing for weaker section
through credit linked subsidy
Affordable Housing in Partnership with Public & Private
sectors
Subsidy for beneficiary-led individual house construction
Therefore, in order that beneficiaries do not take advantage of
more than one scheme, Primary lending Institutions should take
NOCs quarterly from State/UT Governments or designated agency
of State/UT Governments for the list of beneficiaries being given
benefits under credit linked subsidy. For enabling this process, the
beneficiaries should be linked to his/her Aadhaar/Voter ID
Card/Any other unique identification Number or a certificate of
house ownership from Revenue Authority of Beneficiarys native
district and State/UT Government or its designated agency should
furnish the NOC within 15 days of receipt of such request
Nil, However, Rs. 1000.00 a flat fee will br reimbursed to Bank by
CAN i.e. NHB. The same shall be governed by the existing
Housing Loan Scheme.
Oriental Personal Loan Scheme for Existing Home Loan Borrower

Purchase of consumer durables, kitchen equipments and furnishing
items such as TV, Fridge, AC, Collers, curtains including the insurance
thereof
For purchase of GLPP
For any personal use, which is not speculative
Loans for travels, tour, pilgrimage purpose by himself, herself, family
members (domestic or international) to cover travel cost. Hotel stay as
well as foreign related expenses
Nature of facility
Overdraft (Reducing Balance), and period of loan will be upto 60 EMIs or
residual period of home loan whichever is less.
Eligibility
Existing standard regular housing loan borrower(s)
Construction of house is completed and mortgaged
Purpose
_________________________________________________________________________________
35
Loan Amount
Min - ` 1 Lac ; Max: ` 10 Lac OR

15% of sanctioned limit under HL ; whichever is lower
Net take home will 35% of their gross annual income
Margin 25%
Security
Extension of charge or declaration stating
The Bank can extend mortgage as and when required
The borrower will not create any other charge
Title deed will remain with the Bank till the currency of loan
Other conditions:
Home loan should be standard regular with minimum 24 EMIs served.
Fresh valuation as per valuation policy to be obtained if loan is over Rs.
5.00 Lacs.
Collateral coverage in Home Loan (Outstanding) + fresh personal loan
should be 120%.
ROI
BR+1.50% r
Process fee
0.50% of the loan amount of Rs.500, whichever is maximum
Scheme Code
OD501
Discretionery
Sanctioning Authority
Discretionary powers
Power
RLCC-RH
` 10.00 Lacs
BM Scale IV & above
` 10.00 Lacs
BM Scale III
` 7.50 Lacs
BM Scale II
` 5.00 Lacs
BM Scale I
` 3.00 Lacs
*Discretionery power as same as renovation/repair of Housing loan scheme.
Points to remember:
1. Irrespective of the fact that home loan has been sanctioned under RO/HO power, BI can
consider the personal loan under the scheme as per vested power. (Circular No.
Ho:Retail:34:2014-15:649 dated 11.11.2014)
2. Staff members now onwards will not be permitted to avail this facility either under Staff
Housing Loan Scheme (SHL) or under General Public Scheme (GPS). (Circular No.
HO:Retail:34:2015-16:494 dated 25.09.2015)
Oriental Mortgage Loan Scheme (OMLS)

Purpose
Types of
facility
Loan limit
The loan can be used to meet any legitimate need based

Investments / expenses except speculative & prohibited purposes
as restricted by Law
A) For Business Entities
a. Term Loan
b. Overdraft limit
c. Term Loan + Overdraft Limit (COMBO OFFER)
B) For Salaried
a. Term Loan
b. Overdraft limit
Max ` 5 Cr (under MPBF calculation)
Mortgage (Registered or Equitable) of self-occupied Residential /
Commercial / Industrial Land & Building standing in the name of individual /
joint owners / close relatives who will also stand as Guarantors
In case of let out properties, RLCC-RH & above is empowered to permit for
_________________________________________________________________________________
36
accepting let out property as security. Branches shall not have any power for
accepting let out properties.
(The Loan/Overdraft limit will be repayable upto maximum age of
75 years of Guarantor.)
Loan against agricultural land / plot of land (plot in isolation)
partially constructed property shall not be granted.
Assessment
of loan limit
Period of
loan
Properties let out to our bank for premises shall be considered as

self occupied. Loan against agricultural land / plot of land (plot in
isolation) partially constructed property shall not be granted.
50% of the realizable value of the property (overall maximum limit).
36 months of gross income in case of salaried persons.
4 times of average net annual income of last 2-3 years in case of persons
other than salaried ones.
Whichever is less.
Net Take Home: For individual : 30%;
ROI BR+2.25%; Process fee
Term Loan- 0.50% of Term Loan + Service Tax, if any (One Time Fee)
Overdraft- 0.10% of loan amount + Service Tax, if any (Recurring Fee).
Documentation charges
Up to ` 2.00 lacs
Nil
Over ` 2.00 lacs to ` 10.00 lacs
` 1000/Over ` 10.00 lacs to ` 25.00 lacs
` 2500/Over ` 25.00 lacs to ` 50.00 lacs
` 5000/Over ` 50.00 lacs to ` 100.00 lacs
` 10000/Over ` 100.00 lacs
` 15000/A) For Business Entities
a) Term Loan: Maximum upto 84 months repayable on EMI basis
b) Overdraft limit: 84 months subject to annual review with
progressively reducing limit at 15% p.a. of the original sanctioned
limit, so as to liquidate the facility within the maximum period of 7
years.
(The loan shall be reduced in equated manner on yearly basis).

c) Term Loan + Overdraft Limit (COMBO OFFER): 60% of loan
amount will be in the shape of Term Loan repayable in 84 months &
40% in the shape of Overdraft limit (Non-reducing) to be renewed
annually.
B) For Salaried
a) Term Loan: Maximum upto 84 months repayable on EMI basis.
b) Overdraft limit: Overdraft facility will be renewed on yearly basis.
The 15% reduction shall commence 7 years prior to date of
superannuation in case of Non-pensioner employees. In case of
pensioners, the 15% reduction shall commence once the employee
reaches the age of 63 years.
HLCC-ED may consider to increase the tenure of the loan to a maximum of
10 years
Discretionery Scale
Power of sanction
power
I
Nil
II
` 20 Lac (to use judiciously)
III
` 25 Lac
_________________________________________________________________________________
37

IV
V
VI
VII
HLCC ED
` 50 lac
` 75 Lac (As RH 100 Lac)
` 75 Lac (AS RH 500 Lac)
` 75 Lac (As RH 1000 Lac)
Ind ` 7500 Lac Group ` 15000
Lac
Points to remember:
1. Sanctioning of staff under OMLS scheme power vested with RLCC-RH (for the staff worked
at branches/STC (other than STC Noida) etc and staff posted at HO power vested with
HLCC-ED. (Circular HO:Retail:39:2014-15:764 dated 19.12.2014)
2. Property already mortgaged in any existing loan account of same borrower can be extended
for the loan availed under OMLS/OBLS scheme provided value to loan ratio need to be
maintained at 150% (minimum). (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014)
3. Criteria for net take home are not applicable for Firm/company. Income as declared in the
income tax returns / assessments and / or supported with financial statements and / or
certificate from a qualified CA shall be considered.
4. IMAC rating model will be utilised for loans to individual (where financial is not available) for
personal use. However, where loan is sanctioned for business model OTLS scheme be used.
5. The property can be kept as security in the account of owner or close relatives (viz. spouse,
parents, brother, sister, son, daughter) or business concern 100% owned by the owner /
such close relatives. Property charged in OMLS account may be extended to cover other
facility to the extent of spill over available i.e. property value in excess of 200% of the limit
(O/S in case of term loan & sanctioned limit in case Overdraft- as per present valuation) can
be extended to cover other facility sanctioned to Owner. (Amended vide Circular no.
HO:Retail:53:2014-15:988 dt: 20.03.2015)
Oriental Business Loan Scheme (OBLS)

Purpose
Type of
facility
Eligibility
To provide hassle free credit to meet working capital requirements / augment

long-term margin /financing of fixed assets related to business activity or for
expansion of business to Traders, Micro, Small and Medium Enterprises
(Manufacturing and Service),Contractors /Commission agents, and
Authorized service centre /Service Sector viz. hotels, guest houses etc.
Purpose not covered
- For speculative & prohibited by law
- Advance shall not be granted for real estate/capital
market/investment in or loan to associates/sister concern
- Loans to individual/Builders/Property dealers/Real Estate
agents/Doctors/ Professionals
a) Overdraft limit for working capital purpose.
b) Term Loan/Demand Loan to acquire fixed assets for general business
purposes.
c) Non fund based limit for above a) & b) purposes.
1. Proprietorship, Partnership firms, Private / Public Ltd. Cos., engaged in
business activity Business for 1 year
2. Business units established by close relatives of existing customers even if
_________________________________________________________________________________
38
Security
Loan limit
these are established for less than 1 year.

The cash generation and repaying capacity of above said business
establishment shall be the primary criteria for considering term loan under the
scheme.
1. Mortgage (Registered or Equitable) of immoveable property(s)/ factory
land and building and / or any other
2. Property (Land & Building) standing in the name of individual/joint
owners/ promoters, viz. Proprietor/ Partners/Directors/close relatives
who will also stand as Guarantors
3. The loan under the scheme shall be granted against self occupied
property by its owner. In case of let out properties, RLCC-RH & above is
empowered to permit for accepting of such property as security.
Branches shall not have any power for accepting let out properties.
Note: The loan against agriculture land/plot of land (plot only in
isolation)/ partially constructed property shall not be granted.
` 500 Lac; ROI - BR+2.25%
1. Working Capital Finance--50% of the realizable value of the property
Or 20% of the estimated annual sales/income, Wherever the financial
statement are available. However, if the party is not maintaining proper
financial statement, such as Commission Agents etc. then 4 times of annual
income (subject to cash flow/repaying capacity) ,Whichever is less
2. Term loan: 50% of the realizable value of the property Or 75% of the
assets to be created out of term loan. Whichever is less.
Working capital finance and term loan together should not exceed
50% of the realizable value of the property taken as collateral
security.
Process
1. Working capital- ` 100.00 per lac plus service tax.
Fee
2. Term / Demand loan - Upfront fee of 0.50% of the loan amount plus
service tax, if any
1. The party shall exclusively deal with our Bank for all intent and business
purpose. An undertaking to this effect shall be obtained and kept on
record.
2. The OD account shall be monitored and ensured that minimum 60% of
EXCLUSIVE
turnover is being routed through the account. In case of non compliance,
DEALING
1% penal interest shall be charged over and above the normal rate of
CLAUSE
interest. The compliance of this clause shall be ensured at the time of
annual review/renewal of the account.
3. In case the loan is availed in shape of term loan, the concerned borrower
shall also maintain their operative account with us.
Points to remember:
1. Property already mortgaged in any existing loan account of same borrower can be extended
for the loan availed under OMLS/OBLS scheme provided value to loan ratio need to be
maintained at 150% (minimum). The property can be kept as security in the account of
owner or close relatives (viz. spouse, parents, brother, sister, son, daughter) or business
concern 100% owned by the owner / such close relatives. (Circular no.
HO:Retail:32:2014-15:610 dated 27.10.2014)
2. Property or security already charged in OMLS/OBLS account may be extended to cover other
facility to the extent of spill over available i.e. property value in excess of 200% of the limit
_________________________________________________________________________________
39
(o/s in case of term loan & sanctioned limit in case of overdraft as per present valuation)
can be extended to cover other facility sanctioned to owner. (Circular no.
HO:Retail:32:2014-15:610 dated 27.10.2014)
3. In case of let out properties RLCC-RH & above shall be empowered to permit the accepting
let out property as security. Branches shall not have any power for accepting let out
properties under OBLS/OMLS Scheme. (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014) Properties let out to our Bank for premises shall be considered as
self occupied.
4. Loans to restricted sector such as SME & Others) upto ` 10.00 Cr dealing in Gems &
Jewellery/Software/IT Enterprises/Call Centres is permitted under OBLS/OMLS Scheme.
5. Condition for primary security as Hypothecation of stock and Book debt has been removed.
Stock statement is not insisted. However end use of fund need to be ensured when loan is
given for business purpose. (Circular no. HO:Retail:32:2014-15:610 dated
27.10.2014)
Oriental Personal Loan scheme (OPLS-Govt)-
Customised scheme
for PSUs & Central/State Govt employees (Working & Pensioner)

Scheme
OPLS Govt Employee
Purpose
To meet personal/ family

expenses
like
marriage/education/family
functions / purchase of
consumer durables or any
other legitimate purpose
excluding for speculation
purpose.
Type
Facility
Eligibility
of Term Loan : 60 EMIs

(subject
to
remaining
period of service)
1. Permanent
and
confirmed employee of
Public
Sector
Undertaking (PSU) and
Centre / State Govt.
Deptt.
and
other
Government institutions
like
Universities/Colleges
etc.
having
their
salary account with
our bank.
2. The net monthly salary
should not be less then
OPLS Govt
(Pensioner) (Cir no.
HO:Retail:57:201516:832 dated
25.01.2016)
To
meet
personal
expenses
including
medical, bon voyage,
family liability/ expenses.
(excluding
speculative
purpose)
Term Loan : 60 EMIs

(subject
to
last
repayment age)
Maximum age:
For Pensioner: Should
not be more than 75
years
of
age
(last
repayment age)
For Family Pensioners:
family pensioners, i.e.
spouse authorized to
receive pension after the
death
of
pensioner,
subject to condition that
maximum entry age of
OPLS
Employee
Corporate
To
meet
personal/
family expenses like
marriage/
education/family
functions / purchase of
consumer durables or
any other legitimate
purpose excluding for
speculation purpose.
Term Loan : 60 EMIs
(subject to remaining
period of service)
1. Permanent employee
of Corporate and
other reputed nongovernment
organizations
/
institutions including
college / schools etc.
having their salary
account with our
bank.
2. Minimum 3 years of
service,
including
_________________________________________________________________________________
40

` 10,000/-.
3. The net take home
salary should not be
less than 30% of
gross salary
after
deducting the EMI of
the proposed loan.
1.
family pensioner not be

more than 70 years of
age (last Repayment
age)
Net take home
pension should not
be less than 50%
of
gross
pension
(including
the
installment
of
proposal loan)
PPO must be maintained
at Bank Level (For central
Govt Pensioners with HO
and State Govt Employee
with Branch.
For Pensioner:
Defence Personnel:
20 Months of net
pension
with
maximum limit of `
10.00 Lacs
For
Others:
18
Months
of
net
pension
with
maximum limit upto `
5.00 Lacs
Guarantee of spouse
eligible for family pension
to be obtained. In case of
non
availability
of
spouse, any other family
member of means OR a
third party guarantee
acceptable to the Bank.
NIL
Amount
Loan
of Up to 15 times net take

home salary with a max of
` 5.00 Lacs.
Security
One personal guarantee

preferably
of
fellow
employee, subject to the
condition
that
one
employee will not stand as
guarantor in more than
two accounts.
Margin
NIL
Rate of
interest
BR + 2.25% p.a. with

monthly rest
(Floating rate of interest)

monthly rest (Floating
rate of interest).
Scheme Code: TL677
Penal
Interest
/Prepayment
Penalty
2% penal interest over the

normal lending interest
rates on the overdue
amount for irregular
period. No prepayment
2% penal interest over

the
normal
lending
interest rates on the
overdue
amount
for
irregular period.
.
service
with
the
previous employer(s)
, if any.
3. The net monthly
less then ` 10,000/-.
4. The net take home
less than 30% of
gross salary
after
deducting the EMI of
the proposed loan
Up to 15 times net take

home salary with a max
of ` 5.00 Lacs.
(For Existing Large &
Mid corporate borrower
` 15 Lac, upto 1.5
time of net annual
income)
One personal guarantee

preferably
of
fellow
employee, subject to the
condition
that
one
employee will not stand
as guarantor in more
than two accounts.
NIL
monthly rest (Floating
rate of interest).
BR + 2.00% p.a. (For
existing large and
mid
corporate
scheme)
2% penal interest over
the
normal
lending
interest rates on the
overdue amount for
irregular period.
_________________________________________________________________________________
41
penalty to be charged.
Process/
upfront fee
Discretionery
Power Chart
0.50% of the loan amount

with a minimum of ` 500/
+Service tax, if any.
0.50% of the loan

amount with a minimum
of ` 500/ +Service tax, if
any.
0.50% of the loan

amount with a minimum
of ` 500/ +Service tax,
if any.
Scale IV, V `
5.00
RLCC - RH Lacs
and above
Scale III
`
3.00
Lacs
Scale II
`
2.00
Lacs
Scale I
Nil
Scale
IV ` 10.00
and above Lacs
Scale III
`
5.00
Lacs
Scale I & `
3.00
II
Lacs
Salary account with

OBC RLCC RH upto
Rs. 3.00 Lac
No salary account
with OBC- but gross
income above Rs.
50,000.00, upto Rs. 3.00
Lac RLCC RH
Points to remember:
1. The condition of obtention of employees undertaking has been waived off. However
undertaking from employee shall be undertaken for recovery of monthly dues,
undertaking addressed to employer for release of terminal benefit in case of eventuality
in favour of our Bank. Copy of the same to be forwarded to employer through registered
AD.
2. Loan to staff members under OPLS Govt scheme is permitted for intervening period i.e.
till they get eligible for staff OD facility. Officer ` 3 Lac, Non Subordinate ` 2 Lac,
Subordinate ` 0.75 Lac. (Circular no. HO:Retail:22:2014-15:443 dated 29.08.2014)
3. Personal Loan to teachers of school be considered under Oriental Personal Loan Scheme
for Govt./PSU Employees with the condition that salary of the teacher should be paid by
the Government/ treasury directly. (Circular No.HO:Retail:41:2015-16:644 dated
09.11.2015)
4. RLCC-RH is empowered to sanction loan upto Rs. 3.00 lacs to individuals (working under
corporate sector) having salary account with our Bank. For Loans above Rs. 3.00 Lacs
HLCC-ED will be the sanctioning authority. Further, RLCC-RH is empowered to sanction
Loans upto Rs. 3.00 lacs under OPLS-Corp scheme to applicants not maintaining their
salary account with our Bank. The said facility shall be available only for employees
having gross monthly salary above Rs. 50.000.00. (Circular No. HO:Retail:41:201516:644 dated 09.11.2015)
Financing counseling for IITs for Super 30 (Patna)

Type of Loan
Clean Loan Personal Loan
Eligibility
Students of Super 30 who have qualifies IIT Advance for
admission in IIT (Minimum qualifying Marks 95 Percentile)
Amount
Rs. 60,000.00 at present (non exceeding Rs. 75,000.00 as
prescribed by counseling board)
Security
Parents of students will be co-obligant
Margin
Nil
Period
60 days (Maximum)
ROI
BR+2%, Scheme Code: TL677
_________________________________________________________________________________
42
Oriental Loan against Gold Ornaments Scheme

Eligibility
Type of
facility
Loan Limit
Purpose
Assessment
of Loan
limit
Valuer /
Appraiser
fee
Risk
mitigation
measures
Security
Margin
All individual / proprietors borrowers

For Non-agriculture purpose
a)
Demand Loan
b) Overdraft
For Agriculture purpose
a)
Demand Loan
b) CC/ OD
c) Term Loan
For Non-Agriculture purpose : Maximum ` 50.00 Lacs per borrower
For Agriculture purpose
: Maximum ` 10.00 Lacs per borrower
All type of agriculture / allied activity, Business enterprises, Any other activity
taken up by the applicant for self employment, Personal consumption needs,
non speculative purpose.
70% of rate of 22 Carat gold jewellery or 70% of value appraised by Appraiser,
whichever is less.
Rate of 22 Carat gold will be updated on e circular site from time to time.
Present loan amount is ` 1700 per gram. Amended vide Circular no.
HO:Retail:52:2014-15:987 dated 20.03.2015
Upto ` 25000/` 100/Above ` 25000/0.25% of the loan amount
(The fee shall be borne by the borrower)
In the eventuality of steep fall in gold price and if margin goes even below
15%, the bank shall issue a notice to the borrower to deposit the shortfall
amount within 7 days of issue of notice failing which the Bank shall take
appropriate action to safeguard the Banks interest. A pre-drafted undertaking
to this effect be obtained from the borrower while considering the proposal.
This undertaking be got duly vetted by legal retainer.
Pledge of gold ornaments
Pledge of Gold coins specially minted & sold by the bank having per coin
weight upto 20 gms. The aggregate weight of Gold coins shall be restricted
upto 50 gms per customer
Gold loans can be considered against 18 carat & above purity of gold.
(The security is kept under joint custody of Branch Official & Cashier)
1. For Non-Agricultural Purposes - 30%
2. For Agricultural Purposes
a) For Demand Loan/ CC/ OD: 25% against value of gold ornaments
offered as security as assessed / appraised by the approved valuer.
b) For Term Loan: 50%
a) For Non - Agriculture purpose:
Nature of Facility
Demand Loan
Overdraft Facility
Rate of
interest
Rate of Interest (floating)

BR+1.50%
BR+2.00%
b) For Farmers (Agriculture Purpose)

Nature of Facility
CC/OD for crop
production
Demand Loan /
Term Loan
Loan Amount
Irrespective of amount
Rate of Interest
Base Rate
Upto ` 0.50 Lacs

Above ` 0.50 Lacs to ` 2.00 Lacs
BR+1.00%
BR+1.50%
_________________________________________________________________________________
43
Above ` 2.00 Lacs

BR+2.00%
a) Floating On monthly rest (in loan accounts other than Agriculture purpose).
b) For Agriculture purpose loan should be linked to harvesting of crops.
a) Upto ` 0.25 lacs
NIL
b) Above ` 0.25 lacs & Upto ` 2.00 Lacs 1%
Penal
b) Above ` 2.00 lacs
2%
Interest
c) No prepayment penalty
Note: The penal interest shall be charged on overdue amount and for
the period of irregularity.
For Non-Agriculture: 0.50% of the loan amount plus service tax, if any.
For Agriculture:
Process
Upto ` 25000/Nil
fees
Above ` 25000/- 0.50% of the loan amount plus service tax, if any.
No documentation charges
a) Demand loan is to be liquidated within a maximum period of 12
months.
b) Overdraft facility shall be reviewed / renewed every year.
Repayment c) The repayment period of term loan shall be as prescribed as per the
activity, coinciding the harvesting and marketing season / generation
of income from the activity.
Primary gold i.e. gold in any unfinished or semi finished form & includes
ingots, bar blocks, slabs, billets, shots, pellets, rods, sheets, foils and wires
shall not be pledged
Gold Bricks / Biscuits/Sikh Bangles / Kada need not be taken as security for
advance
Check
Silver or Diamond jewellery have not to be accepted for advance
points
Gold ornaments with names inscribed of person other than borrower (s) are
not to be accepted
The valuation of the ornaments must be based on the weight and fineness
of gold contents only
No Objection Letter from wife of the borrower, stating no objection for the
pledge of the gold ornaments
1. For agriculture purpose
Category of
Discretionary
Branch
powers
Rural
5.00 Lac
Semi Urban
7.50 Lac
Urban/Metro
10.00 Lac
2.
For
Non
Agriculture
purpose:
Discretiona
Scale
Power of sanction
ry Power
I
` 2.00 Lac
II
` 5 Lac
III
` 10 Lac
IV
` 20 lac
V & above
` 25 Lac
RLCC RH
` 50.00 Lac
Bank has obtained master insurance policy from Oriental Insurance Company for
indemnifying gold articles kept in the custody of Bank. The claim in respect of jewelry will be
settled on the basis of value of ornaments recorded in the ornaments register at the time of
_________________________________________________________________________________
44
their pledging. As such, It is to be ensured that 100% value is being recorded in the
ornaments register at the time of pledging jewelry or ornaments
Oriental Scheme for Loans to Professionals

Purpose
For investment in equipment (original cost excluding land & building and
furniture, fittings and other items not directly related to the services
rendered) does not exceed ` 2 Crore.
Professionals holding a degree/diploma or who in the opinion of the Bank
are technically qualified or possesses skills in the respective field like
registered practicing lawyers, Architects, Chartered Accountants, Chartered
Engineers, Journalists, Management Consultants, Software Engineers etc.
Individuals, joint borrowers, proprietorship & partnership firms and
Companies
Maximum Term Loan: ` 20.00 Lacs
Eligibility
Criteria
Loan
Amount
Type of
facility
a) Term loan and b) Clean Over Draft limit - Rs. 5.00 Lacs (Subject to
availability of tangible collateral security equivalent to 200% of the OD loan
limit, within the overall composite loan limit ceilings).
25% of the assets financed
Loan upto ` 50000
BR +1.75%
Loan above ` 50000 & upto ` 2.00 Lac
BR +2.00%
Above ` 2 lac to ` 20.00 Lacs
BR +2.25%
Note:
1. Interest rates on Housing/Car & Vehicle loans shall be
charged as per the rates applicable in respective scheme.
2. 0.25% concession to women beneficiaries.
Margin
Rate of
Interest
(floating)
Process fee
Security
Repayment
0.50% of the total limit sanctioned subject to minimum of ` 500/-.

Hypothecation of assets purchased/Mortgage of premises, if purchased.
Loans Upto 5 Lac: 50% of loan amount amount in the shape of
collateral security and one personal guarantee, preferably of spouse
For Loans above 5 lac: 75% of loan amount both in the shape
of collateral security and one personal guarantee, preferably of
spouse.
In case the loan is required only for acquiring premises, no
additional collateral security shall be insisted.
For purchase of car/vehicle security norms shall be as per car/vehicle
loan scheme.
Maximum 84 months including moratorium period not exceeding 6 months.
Oriental Uttam Vyapari (earlier Loan to Traders)
PURPOSE
(Cir No. HO/CAD/72/2015-16/694 dated 01.12.2015)

FOR WORKING CAPITAL REQUIREMENTS: FOR DAY TO DAY BUSINESS NEED
FOR TERM LOAN:
Acquiring premises & constructions thereon on ownership basis
required for running the business /financing of charges pertaining
to conversion from lease hold to free hold of business premises.
For repair, furnishing, renovating existing business premises
_________________________________________________________________________________
45
ELIGIBILITY
CRITERIA
and/or purchase of furniture & fixtures for business premises

For purchase of new equipments, business tools, computers, UPS,
software, Light Commercial Vehicle (Max 2) etc.required for
business purpose.
Note: Loan for acquisition of land is not permitted
TRADERS WHO ARE INDIVIDUALS, FIRMS, COMPANIES, CO-OPERATIVE SOCIETIES,
ENGAGED IN TRADING ACTIVITIES WHICH ARE NOT PROHIBITED BY RBI/GOVT SUCH
AS SMALL BUSINESS CONCERNS/AGENCIES PROVIDING SERVICES SUCH AS XEROXING,
DRY CLEANING, LICENSEE TO DEAL IN PETROLEUM PRODUCTS / LPG, DRUG LICENSEE
FOR THE APPLICABLE BUSINESS, PETROL PUMP DEALERS, AUTO SERVICES CENTERS
ISD / STD / PCO BOOTHS AND OTHERS.
TRADERS/ BUSINESS CONCERNS HAVING REGISTRATION UNDER LOCAL LAWS
(I.E. SHOP AND ESTABLISHMENTS ACT)/ APPROPRIATE AUTHORITIES
EXISTING UNITS SHOULD BE A PROFIT MAKING ONE AND SHOULD HAVE BEEN
IN BUSINESS FOR 1 YEAR.
NEW UNIT MAY BE ALLOWED TO AVAIL THE FACILITY SUBJECT TO
COMPLIANCE OF SECURITY CLAUSE AND OTHER TERMS OF SCHEME
THE FACILITY CAN BE ALLOWED IN THE SHAPE OF WORKING CAPITAL OR TERM LOAN
OR BOTH SUBJECT TO MAXIMUM CEILING AMOUNT. MAXIMUM UPTO RS. 100.00
LACS SUBJECT FOLLOWING CEILINGS
LOAN LIMIT
CATEGORY
METRO
URBAN
SEMI URBAN
RURAL
AMOUNT IN LACS
100.00
100.00
50.00
50.00
1. THE WORKING CAPITAL FACILITY SHALL BE

ALLOWED BASED ON 20% OF REALISTIC
PROJECTED
SALES
TURNOVER
AND
INVENTORY LEVEL DEPENDING UPON NATURE
OF BUSINESS. (CONDITION: MINIMUM 5%
OF TURNOVER SHALL BE BROUGHT IN BY THE
BORROWER)
2. IN CASE OF PETTY / SMALL BUSINESSMEN, BM MAY BE PERMITTED TO ALLOW
TERM LOAN FOR WORKING CAPITAL PURPOSE UPTO RS. 10.00 LACS REPAYABLE IN
MAXIMUM UPTO 7 YEARS ON THE BASIS OF GENUINE BUSINESS REQUIREMENT,
WHERE THE BORROWER IS UNABLE TO FURNISH THE FINANCIAL PAPERS ONLY
APPLICABLE CASES COVERED UNDER PMMY.
FOR TERM LOAN: 75% OF COST OF ASSETS ACQUIRED IN CASE OF TERM LOAN/
PREMISES TO BE ACQUIRED FOR BUSINESS PURPOSE
20% ON STOCKS, AND

40% ON BOOK DEBTS NOT OLDER THAN 6 MONTHS (WORKING CAPITAL),
AND
25% ON PURCHASE OF SHOPS / OFFICE PREMISES ETC.
SUBMISSION OF STOCK STATEMENT WILL BE AS PER BELOW SCHEDULE

LIMIT
PERIODICITY
UPTO RS. 10.00 LACS
YEARLY
ABOVE RS. 10.00 LACS TO RS. 50.00 LACS
HALF-YEARLY
ABOVE RS. 50.00 LACS AND UPTO RS. 100.00 QUARTERLY
LACS
Loan Limit
ROI if covered ROI
if
not
under CGTMSE
covered
under
RATE
OF
CGTMSE
INTEREST
(FLOATING)
Loan upto ` 10.00 ROI to be charged BR+1.50%
Lac
as per guidelines
MARGIN
_________________________________________________________________________________
46
PROCESS FEE
SECURITY
Above ` 10.00 Lacs issued by RDPS for BR+2.00%

to ` 25.00 Lacs
the cases
Above ` 25 Lacs
BR+2.25%
2% OVER AND ABOVE NORMAL ROI SHALL BE CHARGES IN CASE OF DELAY
IN SUBMISSION OF REGULAR RENEWAL PROPOSAL, STOCK STATEMENT AND
IRREGULAR PORTION/ AMOUNT FOR THE PERIOD OF IRREGULARITY.
PREPAYMENT PENALTY OF 0.50% OF OUTSTANDING BALANCE SHALL BE
LEVIED IN CASE OF SHIFTING OF ACCOUNT TO OTHER BANK.
50% CONCESSION ON UPFRONT/ PROCESS FEES, 25% CONCESSION IN CASH
HANDLING CHARGES AND OTHER CHARGES AS PER SCHEDULE OF SERVICE CHARGES.
NO DOCUMENT CHARGES SHALL BE LEVIED.
LIMIT LESS THAN RS. 10.00 LACS: AS PER LF-2
RS. 10 LACS AND ABOVE: IN PRESCRIBED PROCESS NOTE LF 81/82 (AS
THE CASE MAY BE)
CASH CREDIT/ TERM LOAN UPTO ` 10.00 LACS (TO BE COVERED UNDER
PMMY): HYP. OF ASSETS PURCHASED OUT OF LOAN AMOUNT, COLLATERAL
SECURITY EXEMPTED UP TO RS. 10.00 LACS (AS PER PMMY) CGTSME/MUDRA
COVERAGE SHALL BE OPBTAINED IN ALL ELIGIBLE CASES.
(UP TO RS. 2.00 LAC NO FINANCIAL STATEMENTS WILL BE REQUIRED EXCEPT
STATEMENT OF SALES, PURCHASE, GROSS PROFITS, OVERHEADS AND NET PROFITS
DULY SIGNED BY THE BORROWER. VAT RETURNS BE OBTAINED WHEREVER
APPLICABLE)
CASH CREDIT/ TERM LOAN ABOVE ` 10.00 AND UPTO ` 25.00 LACS:
COLLATERAL SECURITY IN SHAPE OF NSCS, LIC (SV) OR ANY OTHER TANGIBLE
SECURITY WITH REALIZABLE VALUE, AT LEAST EQUIVALENT TO 50% OF THE TOTAL
EXPOSURE ALONG WITH ONE PERSONAL GUARANTEE OF ADEQUATE NET WORTH
ACCEPTABLE TO THE BANK (WHERE THERE IS NO CGTSME COVERAGE). OR
MORTGAGE OF IMMOVABLE PROPERTY HAVING REALIZABLE VALUE AT LEAST
EQUIVALENT TO 100% OF THE TOTAL EXPOSURE
CASH CREDIT/ TERM LOAN ABOVE ` 25.00 LACS EQUITABLE MORTGAGE OF
IMMOVABLE PROPERTY HAVING REALIZABLE VALUE AT LEAST EQUIVALENT TO 100%
OF THE TOTAL EXPOSURE ALONG WITH GUARANTEE OF OWNER OF PROPERTY
WHERE ADVANCE IS COVERED UNDER CGTSME SCHEME
COLLATERAL SECURITY IS NOT REQUIRED.
IN CASE OF PURCHASE OF SHOP/ OFFICE PREMISES ITS MORTGAGE
IS MANDATORY. NO ADDITIONAL SECURITY IS REQUIRED, IF THE
TOTAL LOAN LIMIT IS LESS THAN THE VALUE OF LAND & BUILDING.
Term Loan :- 3 - 7 years

Working Capital Limit up to ` 5.00 Lacs shall be sanctioned for
REPAYMENT
three years and reviewed every year.
LIMIT ABOVE ` 5.00 LAC SHALL BE RENEWED EVERY YEAR.
As per General Discretionary Lending Power approved by Bank. HLCC-ED
DISCRETIONARY
shall be the competent authority for considering any deviation or
POWER
relaxation.
_________________________________________________________________________________
47
Oriental Scheme for Financing Autos/Taxis/Small Cargo

Vehicles
Purpose
Eligibility
To acquire Autos (3 wheeler), Taxis (4 wheeler) / Small Cargo Vehicles for

commercial use only.
For Individuals & purchase of one Valid Driving License
vehicle
For purchase of More than one vehicle
Valid Driving License with
Minimum experience of 3 years
Individual, partnership, sole proprietorship, private Ltd. / Public Ltd. companies
are all eligible.
Note: The borrower shall obtain valid permit to ply the vehicle as per applicable
rules of Regional Transport Officer (R.T.O).
Loan
Amount
85% of On Road price (As per pro-forma invoice). Upto ` 10.00 lacs per vehicle
subject to aggregate maximum limit of ` 50 lacs.
No. of
vehicles
Up to 10 (ten) vehicles per entity irrespective of it being an individual,

partnership, sole proprietorship, private Ltd./ Public Ltd. Companies.
Hypothecation of Auto/Taxi/ Small Cargo Vehicle to be purchased from Banks
Finance.
(The hypothecation clause shall be registered with RTO)
Loan upto ` 5.00 Lacs
No Collateral Security, Mandatory CGTMSE
Guarantee Coverage
Loan amount above ` 5.00 50% Tangible Collateral security in the shape of
Lacs upto ` 10.00 Lacs
Immovable / liquid security or CGTMSE
Guarantee coverage
Loan amount above ` 10.00 100% tangible collateral Security in the shape of
Lacs
Immovable/liquid
security
or
CGTMSE
Guarantee coverage
15% of the On-Road price of the vehicle(s).
Loan Limit
Normal ROI
If covered under
CGTMSE
Loan upto ` 2.00 Lac
BR+2.00%
BR
Above ` 2 lac to ` 25.00 Lacs
BR+2.00%
BR+1.00%
Above ` 25 Lacs to ` 1.00 Crore
BR+2.50%, If
BR+0.50%, If
CR-1
CR-1
(*CR- Credit Rating)
BR+2.75%, If
BR+1.00%, If
CR-2
CR-2
BR+3.00%, If
BR+1.50%, If
CR-3
CR-3
BR+3.25%, If
BR+2.00%, If
CR-4
CR-4
BR+3.50%, If
BR+2.50%, If
CR-5
CR-5
BR+3.75%, If
BR+3.00%, If
CR-6
CR-6
In case of delayed payment, a penalty of 2% on the overdue amount for the
overdue period shall be charged.
Security
clause
Collateral
Security
Margin
Rate of
interest
(Current
Base rate is
10.25%)
Penal
Interest
_________________________________________________________________________________
48
Process Fee
0.50% of loan amount with a minimum of ` 500/ + Service tax, if any.

60 months including moratorium period of 3 months. Servicing of interest during
Repayment
moratorium period is compulsory.
Line of business, experience, driving history, invoice of dealer/vendor, inspection
Check points
of vehicle.
Oriental Scheme for Financing Against Govt. Securities/LICs

etc
1. Indian Nationals 18 years and above

2. Firms/companies provided the offered securities are in the name of those
firms/companies.
To
meet
personal
expenses/business
expenditure
except
speculative/prohibited purposes.
of 1. Overdraft limit (renewable every year)
2. Demand Loan (repayable in 36 months)
of
` 50.00 Lacs (maximum)
Eligibility
Purpose
Type
Facility
Amount
Loan
Govt. securities, PSU Bonds, Securities/Relief Bonds issued by

RBI/ICICI/IDBI, NSCs, LIC Policies of LIC of India or any other such security
transferable/assignable to the Bank.
1. 10% surrender value of insurance Policy
2. 25% of the face/accrued value of the security in other cases.
Security
Margin
Rate
interest
(floating)
of
BR + 2.00% p.a. with monthly rest
Process/
upfront fee
Penal interest @ 2% p.a. over and above the normal lending interest rate
shall be charged on irregular portion & for the period of irregularity.
`10/- per certificate with a minimum of ` 50/ + Service tax, if any. However,
postal charges, if any, shall also be recovered from the borrower.
Disbursement
Through account of the borrower
Penal Interest
Oriental Scheme for Beauty Parlours/ Boutiques/ Saloon/

Tailoring by women
Propose
Nature
facility
To develop entrepreneur-ship among women and also to ensure the easy,

timely and convenient access to women to institutional credit.
of Term loan
For the purchase of tools/equipment/furniture & fixture, shop etc.
Applicant's
Eligibility
Loan
Amount
Working capital
For running day to day expenses of business
1.
Proprietary concerns of women
2.
Partnership firms, where majority partners are women
3.
Companies, where majority of promoters shares are held by women
Upto Rs 10.00 Lacs
Out of which WC not to exceed Rs 5.00 Lacs
_________________________________________________________________________________
49
Margin
Loan upto Rs 25,000/Nil

Above Rs 25,000/- & upto Rs 2.00 Lacs
15%
Above Rs 2.00 Lacs & up to Rs 10.00 Lacs
25%
In case of purchase of shop the margin will be 25% irrespective of loan limit.
Rate
of Loan Limit
Normal ROI
If
covered
interest
under
(floating)
CGTSME
Loan upto ` 50000/BR +1.75%
BR
Loan above ` 50000/- & upto ` 2.00 BR +2.00%
BR
Lacs
Above ` 2.00 Lacs & up to ` 10.00 Lacs
BR +2.25%
BR+1.00%
Penal
Penal interest @ 2% p.a. over and above the normal lending interest rate shall
Interest
be charged on irregular portion & for the period of irregularity.
Process fee
0.50% of the loan amount with a minimum of ` 500/-.
Security
Primary: Charge over the assets (movable & immovable) purchased out of
Banks finance.
Repayment
Prepayment
Penalty
Collateral
Up to ` 2.00 Lacs NIL
Above ` 2.00 Lacs- Tangible collateral security up to 100% of loan value.
For Term Loan- the repayment period is 5 to 7 years with maximum moratorium
of 3 to 6 months.
NIL
Oriental Loan against Deposit
(Circular No. HO:RMD:02/2015-16/16 dated 06.04.2015)

Purpose
Eligibility
Type
Facility
Security
Margin
Rate
interest
(floating)
To meet personal expenses / business expenditure except speculative /

prohibited purposes.
1. All Indian Nationals of 18 years and above.
2. Firms/companies.
3.
Advance against deposits to Trust/Society /HUF/Club/Associations of
Persons etc.
of 1. Overdraft limit (renewable every year)
2. Demand Loan
Pledge of duly discharged unencumbered deposit receipt issued by our bank
only (Only parent branch).
S.No. Details of deposit
Margin
1.
Advance against Self Deposits less than 6 months
5%
2.
Advance against Self Deposits 6 months & above
10%
3.
Advance against Third Party Deposits
15%
S.No. Details of deposit
Rate of interest
1.
Advance
against
Self
of
Deposits less than 6 1.00% over the applicable rate of
months
interest on deposits
2.
Advance
against
Self
Deposits 6 months & above
_________________________________________________________________________________
50

3.
Advance
against
Party Deposits
Third 2.00% over the applicable rate of

interest on deposit with a floor of
Base Rate
Penal interest shall be charged equal to clean overdraft rate of interest for
the period of irregularity, in case the account is irregularly overdrawn.
Penal
Interest
Process/
NIL
upfront fee
Disbursement Through account of the respective borrower
Description of Deposit
a. Self Term The deposit stand either in the name(s) of the borrower himself/borrowers
Deposit
themselves, or in the names of the borrower jointly with another person
The deposits do not stand either in the name(s) of the borrower
b. Third party
himself/borrowers themselves, or in the names of the borrower jointly with
Term Deposit
another person
c. Other Bank
No Loan shall be granted against the deposit of Other Banks.
Deposits
Scale
` In lacs
I
20.00
II
30.00
III
100.00
CM
200.00
Discretionery
AGM
1000.00
power
DGM
2000.00
GM
5000.00
As RLCC RH AGM
2000.00
As RLCC RH DGM
5000.00
As RLCC RH GM
10000.00
Points to remember:
1. Loans upto Rs. 500 Lac shall be considered under Retail Loan.
2. An Advance against term deposit would be treated as SELF deposit for the purpose of
Delegated powers, ROI and Margin if the deposit stands in the name of
The borrower, either singly or jointly
One of the partners of a partnership firm and the advance is made to said firm
The proprietor of a proprietary concern and the advance is made to such a
concern and vice versa
A ward whose guardian is competent to borrow on behalf of the ward and where
the ward in such a capacity
The respective sanctioning authority can consider loan against deposit to the
proprietorship firm where s proprietor of the firm is HUF and deposit stand in the
name of HUF and vice-versa within their delegated power.
3. The branch incumbent shall not have power to grant loan against thord party deposit
except when third party depositors is a close relative of borrower. Close relative includes
the following relations: Spouse, Father, Mother (including step mother), Son (including
step son), Sons wife, Daughter (including step daughter), Daughthers husband, Brother
(including step brother), Brothers wife, Sister (including step sister), sisters husband,
Brother (including step brother) of the spouse, Sister (including step sister) of the
spouse, Father/mother of spouse.
4. The respective sanctioning authority can consider loan against Banks own deposit in
case where the Deposit is in the name of individual who is a director and loan is being
given to respective private limited company/ public limited company within their
_________________________________________________________________________________
51
respective sanctioning power. The same shall be treated as third party deposit for the
purpose of Rate of interest and Margin.
5. Branch incumbent and RLCC-RH shall not have any power to grant loan against Deposit
if the Deposit receipt is in the name of an individual and the advance is sought by Trust/
Society/ HUF/ Club/ AoP etc. However, HLCC-ED/CAC/MCB shall have power to grant
loan against deposit if the deposit stand in the name of an individual and the advance is
sought by Trust/ Society/ HUF/ Club/ AoP etc.
6. The advance against self deposit shall be permitted at parent branch only. Any deviation
shall be permitted by the next higher sanctioning authority. Advance shall be permitted
only against original deposit receipt. Request for advance against duplicate deposit
receipt shall be considered by the next higher authorities.
7. No advance can be given to an individual if the deposit is in the name of: Partnership
firm, Limited Liability Partnership, trust/ Society, Club/ AoP, HUF, Public Limited
Company (closely held/ listed), Private limited company, Any other incorporated Body.
8. Cash disbursement should not be allowed directly from the loan account in all cases.
9. Enhanced due diligence should be excercised in case of loans against deposit is in the
name of : Proprietor ship concern, Partnership firm, Limited Liability Partnership, Trust/
Society, Club/ AoP, HUF, Public Limited Company, Private Limited Company (Closely
held/listed), Any other corporate entity,
10. In case of Loan against self or third party deposit to staff as well ex staff of the Bank,
50% concession in the normal shall be applicable
11. Branches should not allow creating FDRs out of overdraft allowed. (Circular no.
HO:Retail:36:2013-14:908 dated)
Oriental Earnest Money Scheme
Purpose
Eligibility
Loan
amount
Margin
Rate of
Interest
Oriental Earnest Money Scheme

for Affordable Housing Project
(Cir HO:Retail:46:2015-16:687
dated 27.11.2015)
To finance Earnest Money Deposit for
applicants desirous of purchasing flats
at Affordable Housing Projects of
private builders.
To finance Earnest Money Deposit for

applicants desirous of purchasing flats /
plots under scheme by State Housing
Boards / Urban Development Authority
(SHB/UDA).
Any person or group of persons, singly Any person or group of persons, singly
or jointly having capacity at least to or jointly having capacity at least to
repay the Earnest Money Loan.
repay the Earnest Money Loan. Staff/
Ex-staff with the condition that they
are allowed loan for single application
and not multiple applications under
any scheme. Classification of advance
will be conventional and non-priority.
100% of Earnest Money Deposit subject 90% of Earnest Money Deposit subject
to maximum of ` 10.00 Lacs
to maximum of ` 3.00 Lacs
Nil
10%
Base rate i.e. 9.70%
Base rate i.e. 9.70%
Upfront interest (fixed for scheme Upfront
interest
(fixed
for
period) to be recovered for the
scheme period) to be recovered
period of scheme.
for the period of scheme.
_________________________________________________________________________________
52

Upfront Fee NIL
/ Other
charges
Security
Repayment
.
NIL
a)
Lien on Earnest Money Deposit a)

Lien on Earnest Money Deposit
with SHB/UDA.
with Builder.
b) The lien of our Bank shall be got b) The lien of our Bank shall be got
noted with the authority. After the
noted with the Bilder. After the
draw, Earnest Money Refund order
draw, Earnest Money Refund
of unsuccessful applicants shall be
order of unsuccessful applicants
sent by the authority directly to the
shall be sent by the Builder
Bank instead of the applicant.
directly to the Bank instead of the
c)
Upfront Interest amount equivalent
applicant.
to period of draw (as declared at c)
Upfront
Interest
amount
the time of launch of scheme by
equivalent to period of draw (as
the
development
authorities,
declared at the time of launch of
normally 180 days) be deposited
scheme by the Builder, normally
by the borrower with the bank
180 days) be deposited by the
prior to release of loan and shall be
borrower with the bank prior to
kept under bank lien.
release of loan and shall be kept
Safeguards:
under bank lien.
Safeguards:
a)
A rubber stamp shall be affixed on
face of the application form a)
A rubber stamp shall be affixed
showing that application money
on face of the application form
has been financed by them.
showing that application money
b) Get the Earnest Money Finance
has been financed by them.
column ticked in the form and fill in b)
Get the Earnest Money Finance
the detail of bank in the next
column ticked in the form and fill
column.
in the detail of bank in the next
column.
i) In case of non-allotment: i) In case of non-allotment:
Earnest Money Loan shall be
Earnest Money Loan shall be
adjusted out of the proceeds of
adjusted out of the proceeds of
refund from SHB / UDA along-with
refund from Builder along-with
interest and other charges.
interest and other charges.
ii) In case of allotment: If ii) In case of allotment: If borrower
borrower requests for servicing
requests for servicing balance
balance installments payable for
installments payable for purchase
purchase of plot/ flat, it may be
of plot/ flat, it may be considered
considered subject to repaying
subject to repaying capacity and
capacity and eligibility criteria as
eligibility criteria as per Housing
per Housing loan policy.
loan policy.
iii) In case of non-liquidation of iii) In case of non-liquidation of
Earnest Money loan due to
Earnest Money loan due to
delay in draw by authority:
delay in draw by authority:
Matter to be suitably taken up with
Matter to be suitably taken up with
relevant / appropriate SHB/UDAs
Builder as well as with the
as the case may be.
borrower, to adjust the EMD loan
account as the case may be.
_________________________________________________________________________________
53

Disbursem
ent
Entire Earnest Money Deposit (including

margin) shall be paid directly to State
Housing
Board/Urban
Development
Authority along-with application on
behalf of borrower.
.
Entire
Earnest
Money
Deposit
(including margin) shall kept in an
escrow account as per agreement with
the Builder.
Oriental Reverse Mortgage Loan Scheme

Purpose
Eligibility
Loan quantum
Margin
Loan period/
nature of
payment
For receiving lifelong annuity (on monthly basis), to be used for

sustenance or to supplement the cash flow stream of senior citizens in
order to address their financial needs.
Single or jointly with spouse in case of a living
No. of borrowers
spouse
Minimum age of first
60 Years
borrower
Age of spouse
60 years and above
The residence (house/ flat) should be self
acquired, self owned and self occupied.
Borrower(s) should have a clear and
transferable title to the property in their
names.
Residence
Residual life of property should be at least
30 years.
In case loan is sanctioned in the joint name
of the borrower(s), they must stay together
in the mortgaged property.
Maximum ` 100.00 Lacs. The loan amount will be released on monthly
annuity basis only.
AGE-GROUP
MARGINS
FOR AGE GROUP 60 TO 70
40%
FOR AGE GROUP 70 TO 80
30%
FOR AGE GROUP ABOVE 80
25%
The tenor of the loan shall be upto 20 years or survival of any of the
spouse whichever is earlier, thereafter periodic annuity payment will
not be made.
THE LOAN SHALL BE EXTENDED AS REGULAR MONTHLY ANNUITY PAYMENTS
DURING THE LOAN PERIOD
RATE OF INTEREST
PREPAYMENT
PENALTY/
DOCUMENTATION &
INSPECTION
CHARGES
PROCESS FEE &
OTHER EXPENSES
12.75% with monthly rest on Fixed Rate basis
NIL
0.50% of total Loan amount or half of the first monthly annuity payable to
borrower, whichever is less, subject to maximum of ` 12,500/- only
1. The legal fee/ charges stamp duty, registration charges, valuation
charges, document stamp charges, & insurance premium of property
_________________________________________________________________________________
54
SECURITY
etc shall be borne by the borrower(s).

2. In the eventuality of non-payment of above said expenses, bank will
recover these expenses on prorata basis on the monthly annuity
payable to borrower(s) within a period of upto 24 months.
Equitable or Registered mortgage of un-encumbered residential property,
in favour of the bank.
Customised scheme for Hero Motocorp Employees:
(To permanent and regular employee of Hero Motocorp) (Cir HO:Retail:53:2015-16:813 dated
18.01.2016)
Personal Loan:
Age Limit
For upper age employees at 55 years & above, it is to be ensured that the loan
amount is repaid by attaining age of superannuation i.e. 58 Years.
Amount of
Loan
Security
ROI
Process fees
Takeover
For Vehicle
Loan
For Housing
Loan
Net Monthly Salary: Rs. 15,000.00

15 times of gross take home salary, max: Rs. 10.00 Lacs
Net take home salary should not be less than 40% of gross salary excluding
deduction of PF, Insurance premium from salary slip. However, in any case net
take hpme should not be less than 30% of gross salary after all deductions.
One personal guarantee preferably of fellow employee, subject to condition
that one employee will not stand as guarantor in more than two accounts
BR+1.70%; with 60 EMIs (subject to remaining period of services)
Nil
BMs are authorized to take over personal loan, however, account must be
regular with the existing Bank.
ROI : BR + 0.25%
Process Fees : Nil
Process fees: Nil
Retail Credit Processing Cell (RCPC)

(Circular No. HO:Retail:14:2015-16:253 dated
HO:Retail:32:2015-16:474 dated 18.09.2015)
29.06.2015)
&
(Circular
No.
Initially 23, RCPCs are opened in Bank. Mortgaged based Housing Loan and OMLS, OBLS products
are handled by them. The branch to whom sanction will be communicated will be responsible for
Documentation/ Collection of Bank Charges/ Fees/ Disbursement of loan/ Post sanction follow- up /
Recovery (including action under SARFAESI Act and other legal proceedings) till the closure of
account.
Nature of Work
Identification of the customer and marketing
Ensuring Compliance of KYC norms for the account marketed
To be done by
Branches attached to the
centre and respective
Regional Office.
Branch/ Regional Office
_________________________________________________________________________________
55

Obtention of Loan Application and related papers
Forwarding of Loan Application and related papers to RCPC
Conducting Pre-sanction visit, due diligence, verification of
securities/ credentials etc.,
Scrutiny and Processing of Loan Proposals
Sanctioning/ Rejection of Proposals
Conveying Sanction with terms and conditions to the Branch
Maintenance of record of sanction/ rejection of proposals
Reporting of cases sanctioned by RCPC to RO in STM-41
Documentation and compliance of terms & conditions of
sanction and submission of BCC to the Regional Office
Disbursement of sanctioned loan
Scrutiny of BCC
Conducting of post sanction visit to ensure end use of loan
Recovery/ Monitoring
.
Branch/ Regional Office
Branch
RCPC with support
from empanelled
professionals / agencies .
RCPC
RCPC
RCPC
RCPC
RCPC
Branch
Branch
Regional Office
Branch
Branch
Once the loan is sanctioned by the RCPC, Branch Manager shall have the power of
renewal/review of the account within their delegated powers, overall framework of the loan
policy and other guidelines of the Bank. For the cases sanctioned by the RCPC beyond the
delegated power of Branch Manager, renewal/review of the account shall be done by the
concern Regional Office within their delegated powers, overall framework of the loan policy and
other guidelines of the Bank. For the cases recommended by RCPCs and sanctioned by Regional
Office/Head Office, renewal/review of the account shall be done by Regional Office/Head Office
within their respective delegated powers as the case may be.
Enhancement shall be done by the RCPCs/Regional Office/Head Office within their respective
delegated powers as the case may be.
For existing cases, renewal/review shall be done by the Branch/Regional Office/Head Office
within their respective delegated powers. However, enhancement, in existing cases, shall be
done by the RCPCs/Regional Office/Head Office within their respective delegated powers as the
case may be. The branches located in 15 Kms. radius of RCPC even if they are not city branches
and are having good potential for Retail Loans shall be attached to the RCPC on receipt of
recommendations from the Regional Head.
General Manager (Retail Credit) is authorized to permit addition of any branch with RCPC.
MSME Plus Scheme:
(Circular No. HO:CAD:26/2015-16/261 dated 26.06.2015)

Eligibility
Proprietorship, partnership, firms, LLPs, Private/Public Ltd. Cos.

(existing as well as new borrower) The facility for existing
customer shall be considered to be covered under new scheme at
the time of next renewal only
Account should have been standard for last two year and post tax
profit in each of preceding two years, not applicable to new
established unit.
Exposure to Real Estate and NBFC is not covered
Internal credit risk score
Upto Rs. 7.50 Cr
OBC4
_________________________________________________________________________________
56
Acceptable Financial
Ratio
Primary security/
collateral security
ROI
Above Rs. 7.50 Cr to Rs. 50.00 Cr

OBC5
Greenfield Rating
GF4
Limit
Current Debt Equity
Leverage
Average
Ratio
Ratio (DE)
ratio
DSCR
Upto Rs. 5.00 1.17:1
1.50:1
Cr
Upto 3:1
Upto 4:1
(upto 7
Above Rs.
1.25:1
years)
5.00 Cr
Outstanding investment made/ loans granted to sister company/
group company to be deducted from TNW to arrived at ATNW
(Adjusted Total Net Worth)
Adjusted DE ratio and Leverage Ratios may be calculated by
considering unsecured loans from friends/ relatives/ directors/
related parties as quasi capital after netting investments made in
group concerns/ subsidiaries, on case to case basis.
Primary : As per Banks policy Norms
Collateral: Advance covered by collateral atleast 50% of the
exposure (FB+NFB)
The extent of cash margin (in case of Non fund based limit) over and
above 10% shall be considered for the computation of collateral
coverage.
Fresh coverage under the scheme (also new and existing client not
covered so far)
Collateral Coverage
Ratio
50% up to 75%
Above 75% upto
100%
Above 100%
Margin
Process fee/ upfront fee
Discretionary power
<=Rs. 7.50 Cr
BR+2.25%
BR+2.00%
>7.50 Cr upto Rs.

50.00 Cr
BR+2.50%
BR+2.25%
BR+1.75%
BR+2.00%
Special status borrower already covered under Mid Corporate Scheme

may continue to be covered under old scheme with following
covereage
Collateral Coverage
1.00 Cr <=10.00 Cr
>10.00 Cr
25% upto 50%
BR+2.75%
BR+3.00%
>50% upto 75%
BR+2.50%
BR+2.75%
>75% upto 100%
BR+2.00%
BR+2.25%
>100%
BR+1.75%
BR+2.00%
For limit above Rs.5.00 Cr, external rating should be obtained from
approved rating agency
As per Banks Loan policy and discretionary chart
Entry level 50% concession, 2nd year 25% concession and 3rd
year onwards as per applicable Banks schedule of charges
25% concession on applicable charges for borrower accounts
having minimum OBC4 rating or top three highest external credit
ratings of the concerned RBI approved rating agencies for
Guarantee and LC Commission
As per delegated power chart
_________________________________________________________________________________
57
OBC Doctor Plus (Earlier Oriental Loan to Doctors)

PURPOSE
ELIGIBILITY
CRITERIA
TO MEET FINANCIAL REQUIREMENT FOR SETTING UP OF NEW NURSING HOME/ HOSPITAL

INCLUDING PATHOLOGICAL LAB, EXPANSION/RENOVATION/MODERNIZATION OF EXISTING
NURSING HOME / HOSPITAL INCLUDING PATHOLOGICAL LAB. PURCHASE OF MEDICAL
EQUIPMENTS AS ALSO OFFICE EQUIPMENTS, VIZ. COMPUTERS, AC, OFFICE FURNITURE,
PURCHASE OF AMBULANCE ETC. AND TO MEET WORKING CAPITAL NEED.
ALL ENTITIES I.E. MSME ENTERPRISES INCLUDING INDIVIDUALS, PROPRIETORSHIP
FIRMS, LLPS, PRIVATE LIMITED COMPANIES AND TRUSTS, SOCIETIES ENGAGED IN
PROVIDING MEDICAL/ PATHOLOGICAL DIAGNOSTIC SERVICES TO THE SOCIETY AND WITH
TURNOVER OF UPTO RS. 150.00 CR.
THE PROMOTER SHOULD HAVE REQUISITE QUALIFICATION AND IN ANY BRANCH OF
MEDICAL SCIENCE FROM A RECOGNIZED UNIVERSITY AND SHOULD HAVE MINIMUM 2
YEARS OF WORK EXPERIENCE HAVING MINIMUM QUALIFICATION AS MBBS, BDS
(DENTIST), BHMS
INTERNAL CREDIT RISK SCORE SHOULD BE MINIMUM OF IMACS4 FOR LAST TWO YEARS
(INCASE OF EXISTING BORROWER HAVING AUDITED BALANCE SHEET FOR AT LEAST LAST
2 YEARS)
INTERNAL CREDIT RISK RATING SHOULD BE MINIMUM OF GF4 IN CASE OF NEW
BORROWER WHERE NO PAST AUDITED BALANCE SHEET IS AVAILABLE
LOCATION
LOAN
AMOUNT
AMOUNT (IN CASE OF AMOUNT (IN CASE OF

HOSPITALS)
CLINIC)
RURAL AREA & SEMI` 1.00 CR
` 0.50 CR
URBAN
SEMI URBAN/ URBAN
` 10.00 CR
` 1.00 CR
METRO
`15.00 CR
FOR LIMIT ABOVE RS.5.00 CR, EXTERNAL RATING SHOULD BE OBTAINED FROM APPROVED
RATING AGENCY
TERM LOAN (ASSESSMENT OF TL SHAL BE AS PER LOAN POLICY OF THE BANK) IN CASE OF
CONSTRUCTION OF BUILDING LIMIT IS MAX 50% OF CENTER WISE.
TYPE
OF WORKING CAPITAL LIMIT UPTO 10% OF ANNUAL SALE OR GROSS INCOME, SUBJECT TO
FACILITY
10% OF THE CEILING LIMIT OF CENTRE IN CASE OF BORROWERS REQUIRING BOTH TERM
LOAN AND WORKING CAPITAL FACILITIES. IN CASE BORROWER REQUIRING ONLY WORKING
CAPITAL LIMIT, 20% OF THE CEILING LIMIT OF CENTRE.
Limit
Current Debt Equity
Leverage
Average
Ratio
Ratio (DE)
ratio
DSCR
ACCEPTABLE
Upto Rs. 5.00 1.17:1
FINANCIAL
1.25:1
Cr
RATIO
Upto 3:1
Upto 4:1
(in case of
Above Rs.
1.25:1
TL)
5.00 Cr
25% OF ACQUISITION OF PREMISES AND/OR EXPANSION/ RENOVATION/
MODERNIZATION OF EXISTING EQUIPMENT
MARGIN
RATE
OF
INTEREST
15% FOR PURCHASE OF EQUIPMENT/ MACHINERY

15% OF COST OF VEHICLE ON ROAD FOR AMBULANCE/ OTHER VEHICLE
NIL IN CASE OF WC (CLEAN)
Security Coverage
ROI
_________________________________________________________________________________
58

(FLOATING)
PROCESS FEE
SECURITY
Ratio
50% up to 75%
BR+2.50%
Above 75% upto
BR+2.00%
100%
Above 100%
BR+1.50%
50% CONCESSION IN APPLICABLE PROCESS FEES/ UPFRONT FEE
PRIME SECURITY:
HYPOTHECATION OF ASSETS CREATED OUT OF BANK FINANCE.
EQUITABLE MORTGAGE OF IMMOVABLE PROPERTY IN CASE OF CONSTRUCTION/
RENOVATION OF LAND AND BUILDING
SECURITY COVERAGE:
FOR LOANS UPTO ` 0.10 CR:- NIL
FOR LOANS UPTO ` 1.00 CR MINIMUM 50% SECURITY
FOR LOANS ABOVE ` 1.00 CR MINIMUM 100% SECURITY COVERAGE
INCLUDING COLLATERAL.
GUARANTEE:
PERSONAL GUARANTEE OF PROMOTERS/ DIRECTORS/ TRUSTEES ETC. ADVANCE IS TO PVT.
LTD. CO., LTD. CO. & TRUST
THE OPTION OF GUARANTEE COVERAGE UNDER CGTMSE SCHEME MAY BE OFFERED
TO THE BORROWER INCASE HE IS PROVIDING ONLY PRIMARY SECURITY AS
SECURITY COVERAGE
Discretionary
power
As per delegated power chart
OBC MSME Vishesh & OBC MSME - Tatkal
Facility
Purpose
Eligibility

OBC MSME Vishesh
OBC MSME Tatkal OBC MSME CDL
(Working Capital Facility) (Contingency
Demand
Loan)
Auto increase of working Working Capital Limit by Contingency
demand
capital limits for MSME extension charge on loan for MSME Borrower
(Medium
and
Small existing security & filing by extension of charge
Enterprises) borrowers of charge with ROC if on existing asset or
effective from beginning applicable
assets to be created out
of financial year
of bank finance. CDL will
be based on documents
evidencing/
justifying
the contingency and
invoice
To provide on the spot To provide on the spot To
meet
future
need based additional need based additional emergency
capex
financial assistance
financial assistance
requirement of the unit
towards bottlenecking/
breakdown etc. to cater
the need of MSME
(Manufacturing
&
Service sector)
Qualified only OBC MSME Minimum 2 years Qualifying MSME units
Plus Borrower
satisfactory
with OBC-4 rating
Minimum
2
years
(Standard Regular) Minimum 2 years
satisfactory (standard)
conduct of account &
satisfactory
_________________________________________________________________________________
59
Eligible
Amount
Sanctioning
power
ROI
Period of
additional
facility
Process Fee
Turnaround
Time
Other Terms
and Condition
conduct of account &

profit making
(standard) conduct
accounts should not
of
account
&
have
been
accounts should not
restructured
have
been
Minimum
85%
restructured and in
achievement
of
profit for last 2 years
estimated sales on the
At the time of
basis of which existing
regular
sanction/
limits were assessed.
review
After
stidfactory
evidence of % of
achievement of sale
by way of VAT returns
or
provisional
financials certified by
Auditors as drawn
from
books
of
accounts
25% of existing working Additional woking capital Up to 15% of the
capital facilities separately facilities available
investment cost in P&M
for FB+NFB or 50% of the 15%
of
existing (Gross Block Value) as
eligible limit on enhance
working
capital per last audited balance
portion
of
projected
facilities separately sheet with max cap of
turnover whichever is less
for FB & NFB subject Rs. 1.50 Cr
to Max of Rs. 3.00 Cr
Upto discretionary power Upto discretionary power Upto
discretionary
chart
of
Branch chart
of
Branch power chart of Branch
Incumbent i.e. eligible Incumbent i.e. eligible Incumbent i.e. eligible
amount under above and amount under above and amount under above
existing sanctioned limit. existing sanctioned limit. and existing sanctioned
If the total amount If the total amount limit. If the total amount
exceed then RLCC-RH
exceed then RLCC-RH
exceed then RLCC-RH
0.50% over and above 1.00% additional ROI 1.00% over and above
existing rate till regular over
and
above existing rate
sanction of enhanced limit sanctioned ROI
Max. Six Months or upto Max. 90 days (3 times in Max. 12 months, within
the date of regular a
financial
year, which
it
will
be
enhancement whichever maximum 180 days and converted into regular
is earlier
gap of 15 days in each Term
Loan.
This
availment)
contingency loan is to be
adjusted by sanction of
regular Term Loan.
Nil
Nil
Nil
Max. 15 working days Max 3 working days for
from the date of receipt
the date of receipt of all
of all information
information
This fund based facility Borrower can enjoy only Demand loan documents
shall be covered with DP
one facility wither OBC at
the
time
of
Tatkal Working Capital sanctioning of CDL
or Adhoc milit at a time
_________________________________________________________________________________
60
Other important points related with retail credit:

For BSNL Employees, below concessions are allowed till 6th April2016
Sr.
Loan
Rates of customized scheme for BSNL employees
No.
1
Housing
Irrespective of Loan limit BR
For 3rd House onward BR+0.50%
2
Vehicle
For New Car & Two Wheeler

Rapayment upto 3 years BR
Rapayment above 3 Years BR+0.25%
For old CarBR + 2.50%
Personal
BR + 2.25%
0.25% of special concession to women BSNL employees
Where schemes are covered under Pradhan Mantri Mudra Yojna (MSME upto 10 lacs) such
as auto and taxi, loans to professionals, loan to trader etc. use Annexure A as a loan
application form (Circular No. HO:RD PS:42:2015-16:405 25th August, 2015)
Banks should provide a clear, concise, one page key fact statement/fact sheet to all
individual borrowers at every stage of the loan processing as well as in case of any change
in any terms and conditions. (Circular No. HO:Retail:01:2015-16:14 Date: 01.04.2015)
The CRM Committee vide agenda item no. 12 in its 115th meeting dated 20.04.2015, has
approved the checklist for implementation in all fresh Retail Loan proposals as a prevention
of Frauds measure at the time of appraisal itself. (Circular No. HO:Retail:08:2015-16:84
Date: 01.05.2015)
No Deviation are to be allowed in schematic lending schemes, however wherever necessary
the deviation/ justification proposals be sent to HO supported by proper justification and
value of account only in most deserving cases with proper due diligence. (Cir No.
HO:Retail:59:2015-16:839 dated 28.01.2016)
Levy of foreclosure charges/prepayment penalty on floating rate term loans is waived off
except Loan facility other than term loans; Loans sanctioned on fixed ROI & Credit facilities
sanctioned to person other than individual. (Circular no HO:Retail:07:2014-15:101 dated
10.05.2014)
For internal monitoring, it is mandatory to enter the proposal in Proposal Tracking system.
Further, for tracking of loan application by the customers, All proposals submitted by the
borrowers be also entered into the online format (available at website www.obcindia.co.in)
by the branches simultaneously and shall be available for tracking on the website by the
applicant. After entering the loan proposal through above link, the branches shall give
tracking number to the applicant, which may be used for future tracking of the application
by the borrower. (Circular No. HO:Retail:29:2015-16:455 dated 14.09.2015)
TAT (Turn Around Time is reduced as under:
Housing Loan 7 Days
Vehicle Loan 24 hours for existing customer client and 3 days for new customers.
_________________________________________________________________________________
61
No fresh additional PDS shall be accepted provided branches should obtain 6 PDCs (in CTS
2010 Format) of the account from which ECS Debit Mandate has been given by borrower as
security. While recovery of the EMI will be done by ECS//SI in lieu of PDCs, these cheques
shouldnt be used for the purpose of recovery of regular EMIs as a matter of routine. Where
ECS/RECS facility is not available, branches may obtained PDCs complying with CTS2010
standard for recovery of EMIs. (Circular No HOP:Retail:35:2013-14:907 dated 08.01.2014)
No inspection charges shall be levied under any Retail Credit Scheme, if facility is availed for
personal purpose. However, in case credit facility is availed for business purpose under the
schemes OBLS, OMLS, Loan to Traders etc. inspection charges as per Loan policy or guided
by RMD Deptt. shall be levied. (Circular No. HO:Retail:47:2014-15:979 Date:17.03.2015)
Prior to sanctioning and disbursal of any credit facility under Retail Scheme, the borrower
must be having an operative account (SB/CA/ CC/ OD) with the bank or should open one.
(Circular No. HO:Retail:45:2014-15:924 Date: 21.02.2015)
Festival Bonanza Offer of 100% waiver in process fee for Home Loan, Vehicle Loan, OBLS
Loan and 0.25% concession in Rate of Interest in Vehicle Loan during the festival
bonanza(period extended till 31.03.2016). (Circular No. HO:Retail:50:2015-16:768 dated
30.12.2015)
In order to ensure retention of valuable customers on arrangement has been made with
CIBIL to provide live consumer triggers whenever banks existing customer approaches
other Bank/FIs for credit facilities. The type and amount of loan, borrower has approached
for outside the Bank is made available on CIBIL site. (Circular No. HO:Retail:45:2015-16:686
dated 01.12.2015)
Further, as per the direction of Board of Directors, all borrowers who approach our Bank for
sanction of loan and whose TU score > 700, must be sanctioned loan on merit and priority
basis so that chances of shifting to other Banks are eliminated. (Circular No.
HO:Retail:39:2015-16:587 dated 23.10.2015)
In all fresh account mobile no. should invariably be captured while account opening and in
existing account the latest mobile no. should be updated. (Circular No.
HO:Retail:33:2015-16:493 dated 24.09.2015)
Change of S.Tax :-w.e.f. 15.11.2015 14% +0.50 (Swatch Bharat Cess) {All over India
except J&K} (HO/Act/632/-07.11.2015)
_________________________________________________________________________________
62
DEPOSIT PRODUCTS OF OUR BANK

SAVINGS BANK DEPOSIT SCHEMES
#
1.
2.
SCHEME
SALIENT FEATURES
SCHEM
E CODE
Savings Bank (Staff)
Only for Banks Staff members.

All facilities free and no charge to be levied.
SB-211(saving smart save-flexi fixed deposit)Facilities also
availableThreshold Limit Rs.25000/Minimum sweep in Rs.5000/Minimum sweep out-Rs.2000/No Minimum Balance required to be maintained.
SB 202
Smart Pay
Salary Accounts
For salaried persons whose salary is credited in this

account.
Zero balance Account. No charges for non-maintenance of
minimum balance. Also available for Wipro salary
scheme(Previous SB 213)
SB 204
3.
NRO Saving Bank A/Cs
4.
NRE Saving Bank A/Cs
5.
RFC Saving Bank A/C
6.
Saving Bank
Capital Gains Scheme
Account A for SB B for TD
7.
Saving Smart Save Flexi Fixed

Deposit
A/C can be opened by NRI / PIO. In Indian Rupees. Local

Funds/Funds from abroad.
Any resident going abroad for gainful employment, his
domestic account will be converted into NRO a/c.
If he/she does not have any domestic a/c, he/she can
open a NRO a/c.
Joint a/c with Residents/Non-Residents permitted.
Non-repatriable except to the extent of USD 125000 per
financial year including sale proceeds of immovable
property.
A/C can be opened by NRI / PIO. Funds from abroad. In
Indian Rupees. Any resident going abroad for gainful
employment can open NRE account. Joint a/c with Non
Residents /Residents (with some conditions) permitted.
P.A. Holder can operate the account. Freely Repatriable.
Any returning NRI who has stayed abroad can open RFC
a/c. In Foreign Currency- USD, GBP and Euro. Joint a/c
permitted. Freely Repatriable.
Tax Saver Scheme. Exemption from Capital Gains Tax u/s
54, 54B, 54D, 54F and 54G of Income Tax Act, 1961
allowed. Option to open Account A or B. Interest or
withdrawal from Account B can be made through
Account A only. Introduction of the depositor need not
be insisted upon. Joint account not permitted. Cheque
Book facility not allowed. Withdrawal of Interest does not
require permission from IT authority like the withdrawal of
Principal amount.
Special Account Opening Form to be obtained in duplicate.
The forms as obtained during the course of operation of
account / withdrawals /closure of accounts to be
submitted to the IT authority within 7 days of the close of
the month.
Average Quarterly Credit Balance Rs.25,000/Balance above Rs.25000/- will automatically be converted
into Term Deposit.
SB 205
SB 206
SB 207
SB 208
SB 211
_________________________________________________________________________________
63

#
SCHEME
SALIENT FEATURES
SCHEM
E CODE
Auto sweep Unit- Rs.5000/-.

Reverse sweep unit- Rs.2000/-.
50% concession in NEFT/RTGS Charges.
Speed Clearing Charges Free.
Free ECS debit and credit.
Instant credit of O/s cheque upto Rs.25000/No Charges for Cheque Books .
At par collection of Govt. Cheques.
Revised Flexi Period as per HO Circular HO/C S&P/41/201516/691 December 1st , 2015 is as under:
Scheme
Saving
Smart Save
(SB-211)
Existing
Flexi
Period
90 days to
5 years
Initial deposit
Minimum Balance
Basic SB Deposit
HO/CS&P / 44 /2012-13/527
/19.10.2012-
Cheque Book Facility
Cheque Collection
8.
The new name for Basic

Banking (No Frill) Account
Scheme (SB-212) is Basic
Savings
Bank
Deposit
Account (Basic SB Deposit)
(HO/CS&P/56/201213/661/21-12-2012)
ATM Card
Proposed Flexi Period

Individuals
Non
Individuals
91 days to 59 91 days to 179
Months Default days
Default
period 91 days
period 91 days
A nominal amount of Rs.

10/- for opening of an
Account under the Scheme.
No Minimum Balance
prescribed and as such no
charges for non maintenance
of Minimum Balance.
One Free of Cost Cheque
Book of 25 Leaves during a
Calendar Year
Cheques drawn in favour of
the account holder shall be
collected in such Accounts,
if any
Free ATM Card facility shall
also be provided.
Number of Credits
No restriction on number of
credits in the account
Other free Services
Standing Instructions for

transfer of funds within the
same branch,
No Incidental Charges for
activating the inoperative
account.
SB 212
_________________________________________________________________________________
64

#
SCHEME
SCHEM
E CODE
SALIENT FEATURES
Other Services
Ibanking etc available, ECS,

NEFT, Issuance of DD etc,
are available and applicable
service charges are levied as
per banks schedule of the
Charges.
NO RESTRICTIONS IN MAXIMUM BALANCE AND TOTAL

CREDITS IN THE ACCOUNT-
Minimum Balance
R/ SU/U
Metro
Without Cheque Book
Rs.
500/Rs.
500/-
Rs1000/-
With Cheque Book
9.
OBC Unnati Deposit Scheme
10.
SB Pension Account (Govt)
Rs.
1000/-
NEFT/RTGS at 50% concessional

Charges.No cheque book charges
(Including
multicity
cheques)Prescribed
monthly
charges are levied on nonmaintenance
of
Minimum
Balance. ECS Dr/ Cr Free, I.
Banking Facility Free, Mobile &
SMS Free.
Only for Government Pensioners

Minimum Balance
Rural /
Urban
Without
Cheque Rs. 20/Book
With Cheque Book
Rs. 250/-
SB 219
Semi-
Urban
Metro
Rs. 20/Rs.250/-
SB 220
_________________________________________________________________________________
65

#
11
.
SCHEME
SB Small Account
SALIENT FEATURES
No charges for non-maintenance of minimum balance
No Service Charges for Collection / Discount of Pension
Cheques 2 Remittances aggregating to Rs.10000/- p.m.
free of charge
Account can be opened with relaxed KYC norms
The person who intends to open the account has to
produce a self-attested photograph and to affix a
signature or thumb print, as the case may be on the form
for opening the account in the presence of a designated
officer of the Bank. Balances should not exceed Rs.50000/in all their accounts taken together. Total credits not
exceeding Rs.1 lakh in a year and the aggregate
withdrawals and transfers in a month not exceeding
Rs.10,000/-.
Initial Deposit Amount: Rs.10/- ; Minimum Balance: NIL;
Maximum Balance in the account/s: Rs.50,000/- ;
Maximum amount per transaction- Rs. 10,000/- ;One ATM
card free of charge for the first year. Foreign Remittance
not permitted.
SCHEM
E CODE
SB 222
ORIENTAL PREMIUM SALARY ACCOUNT (SB A/C SCHEME FOR PREMIUM

SALARIED CLASS) SB 232 AND OD 522
Sr.No.
Parameter
Min/Avg. Balance Requirements
Online NEFT
ATM card
Issuance charges
Annual fee charges
Net Banking
Mobile Banking
Offer Coupons over NET Banking
SMS and Mail Alerts
Overdraft facility
(a)Discretionary Powers for

sanction of overdraft facility
Premium Salary account (>`50000)

Nil
Free
Gold
Free
Free (On Min. monthly transaction on
POS/ E Commerce)
Free
Free
Free Coupons
Free
Overdraft facility with extended limit
upto 3 times of gross salary (as per pay
slip) or 5 times Net Salary credited in
account (Avg of last 3 months to be
taken) whichever is lower. Available for
tenure of 12 months at 12.20
%(BR+2.5%)Max overdraft amount
shall be limited to `300000/- Eligibility:
Permanent Employee /Minimum one
year of continuous service.Net take
home salary should not be less than
40% after calculating the interest
accrued. Minimum CIBIL trans Union
score shall be TU-567,PL- 651 (Any
deviation from the above mentioned
score rests with next higher authority
Sanctioning
Discretionary
Authority
powers
BM Scale III &
Rs. 3.00 Lac
above
SB-232
and OD
-522
_________________________________________________________________________________
66

#
SCHEME
SALIENT FEATURES
(b) Deviation from above
Process Fee For Retail Loans

Demat Trading
ORIENTAL SALUTE SALARY ACCOUNT (SB
PERSONNEL) SB 233 AND OD 523
Sr.No. Parameter
Min/Avg. Balance Requirements
Online NEFT
ATM card
Issuance charges
Annual fee charges
Net Banking
Mobile Banking
Offer Coupons over NET Banking
SMS and Mail Alerts
Overdraft facility
(a)Discretionary Powers for

sanction of overdraft facility
(b) Deviation from above
Process Fee For Retail Loans

Demat Trading
SCHEM
E CODE
BM Scale II
Rs. 2.00 Lac
Regional Head would be conferred with
power in case of any deviation from
above.
Complete waiver
Free
A/C SCHEME FOR DEFENCE
Salute Salary Account
Nil
Free
Gold
Free
Free (On Min. monthly transaction on
POS/ E Commerce)
Free
Free
Free Coupons
Free
Overdraft facility with extended limit
upto 3 times of gross salary (as per pay
slip) or 5 times Net Salary credited in
account (Avg of last 3 months to be
taken) whichever is lower. Available for
tenure of 12 months at 12.20
%(BR+2.5%)Max overdraft amount
shall be limited to `300000/- Eligibility:
Permanent Employee /Minimum one
year of continuous service .Net take
home salary should not be less than
40% after calculating the interest
accrued. Minimum CIBIL trans Union
score shall be TU-567 ,PL-651 (Any
deviation from the above mentioned
score rests with next higher authority
Sanctioning
Discretionary
Authority
powers
BM Scale III &
Rs. 3.00 Lac
above
BM Scale II
Rs. 2.00 Lac
Regional Head would be conferred with
power in case of any deviation from
above.
Complete waiver
Free
SB-233
and OD523
Term & Condition for Loan is as under:

Sr.
No.
Criteria
Details
Eligibility Criteria
a. Terms of employment: Permanent Employee

/Minimum one year of continuous service.
b. CIBIL Score: Minimum CIBIL Trans-union score
_________________________________________________________________________________
67

#
SCHEME
Loan Criteria
Documents required from

Customers
Legal Documents to be
executed
SALIENT FEATURES
SCHEM
E CODE
shall be TU-567, PL-651 (Any deviation from the

above mentioned score rests with next higher
authority).
c. Minimum Gross Monthly Salary
I. Premium Salary account: Rs. 50,000/-.
II. Salute Salary account: There is no requirement of
minimum gross Salary.
d. Net take home criteria: Net take home salary
should not be less than 40% after calculating the
interest accrued
e. Loan eligibility: Overdraft facility with extended limit
up to 3 times of gross salary (as per pay slip) or 5
times Net Salary credited in account (Avg. of last 3
months to be taken) whichever is lower
a. Quantum of Loan: Rs.3,00,000/b. Tenure of Loan: 12 months (1 year) subject to
annual review.
c. Rate of Interest: Base Rate + 2.50%
d. Processing Fee & Documentation fee: Waived
e. Renewal charges: Waived
At the time of opening of account (Premium Salary) i.
KYC documents.(PAN Card is mandatory)
ii. Appointment letter /Employment Certificate.
iii. Self attested copy of Identity card or Letter from
the employer certifying the Designation and
department of his posting.
iv. Salary Slip of the last month with gross salary
above Rs50,000/-.
At the time of opening of account (Salute Salary)
i. KYC documents.(PAN Card is mandatory)
ii. Self attested copy of Identity card
At the time of granting of Overdraft for existing
as well as new accounts opened under the same:
i. Request letter as per format enclosed.
ii. Employee Confirmation letter from the company. iii.
Two Year Income Tax Return.
iv. Duly Stamped and notarized undertaking cum
authority letter as per Annexure II.
v. Salary slip for the last three months duly attested
from the concerned Departmental Head/
Organization Head/ Salary Drawing Officer.
DOC 4 (Agreement For overdraft) and Doc 38
(Common Agreement) DPN (Demand Promissory
Note)
Duly Notarized undertaking from the Customer
(Annexure-II) Legal Heir Declaration
(Proposed to be clubbed as a single booklet
document to be executed with the borrower)
_________________________________________________________________________________
68

#
SCHEME
SALIENT FEATURES
Delegation of Authority
SCHEM
E CODE
Sanctioning Authority
Discretionary
powers
BM Scale III & above Rs. 3.00 Lac
BM Scale II
Rs. 2.00 Lac
The Regional Head will be the sanctioning authority
for Premium Salary account and Salute Salary
Account over & above the delegated authority to
Branch Managers with maximum limit up to `3.00
Lacs and also for the branches headed by Scale I
Officers
SYSTEM LEVEL
CONTROLS
The following system level parameters are proposed

to be implemented in consultation with Department
of Information Technology and Corporate Strategy &
Planning Department:
a) New Scheme codes for Premium Salary Account
and Salute Salary Account
b) The functionality to provide Overdraft facility in
the mentioned Saving Banks Salary account.
c) Incorporating parameters in Finacle for mentioned
SB account to capture the document checklist,
sanctioning details and MIS codes.
d) Customized reports to be made available in
CRisMac for Branch, RO and HO level.
e) Integration of the above schemes in the LOS
module, subsequently.
Monitoring & Review of
It is proposed to advise the Retail Credit Department
the Scheme
for monitoring and review of the Overdraft facility
linked to the Premium Salary Account and Salute
Salary Account
Marketing of the Product
The marketing activity for the mentioned schemes
shall be initiated in the following stages:
a) Staff awareness through Circulars, mailers,
publicity materials and scheme one pagers
b) Customer awareness through Newspaper
publicity, Pointers advertisement and Corporate
Communication to existing customers.
c) Launching of Campaign for garnering accounts
under the mentioned schemes.
ORIENTAL YUVA ACCOUNT - SB 234
Salient features of the scheme are given below:Sr.
No
1.
Parameters
Limitations/ Features
Age
10-18 years, On attaining majority i.e. 18 years the account

will be converted in normal saving account after completing
necessary requirements.
2.
Minimum Account
opening Balance
Average Quarterly
NIL
3.
SB-234
No Specific requirement
_________________________________________________________________________________
69

#
SCHEME
4.
5.
6.
Balance
Daily withdrawal
limit
Spends at POS
machines
Mobile Banking
SALIENT FEATURES
SCHEM
E CODE
`5000 per day through ATM

Maximum `5000 per day
Enabled (View only)
7.
Specifications of ATM Card
8.
9.
10.
11.
12
Annual ATM Card Charges

Maximum Balance
Total credit in a year
SMS Alert
Demand Drafts
13.
Internet Banking
14.
Passbook
15.
RD facility
16.
ROI
Specially designed Classic

RUPAY Cards.
Completely waived off
`100,000
`5,00,000
Available
Free Demand Drafts for
Educational Institutions and
entrance exams for account
holder.
Internet Banking enabled for
view only transactions.
Passbook for minors will be
provided.
RD with minimum `100 @
ROI prevailing in the Bank
with nil Standing Instructions
Charges.
As per prevalent rate of
interest.
Savings Deposit is a form of demand deposit which is subject to restrictions as to

the number of withdrawals as also the amounts of withdrawals permitted by the Bank
during any specified period;
One of the important functions of the Bank is to accept deposits from the public for the
purpose of lending, hence depositors are the major stakeholders of the Banking
System.With liberalization in the financial system and deregulation of interest rates, banks
are now free to formulate deposit products within the broad guidelines issued by RBI.
SB ACCOUNT OPENING & OPERATIONS
Savings Bank Accounts can be opened for eligible person / persons and certain
organizations/agencies (as advised by Reserve Bank of India) from time to time.Due
diligence required to carry out Know Your Customer (KYC) and Anti Money Laundering
(AML)) guidelines of RBI / GOI and Policy and Procedures adopted by the Bank in this
regard.
DOCUMENTS REQUIRED FOR OPENING SAVING ACCOUNT
OF -1A Customer Identification Form for Resident Indian
OF-1B Account Opening Form for Individuals
_________________________________________________________________________________
70
Saving Deposit accounts can be opened by
An individual in his own name (status: single name)

More than one individual in their own names (status: Joint Account).
minor jointly with natural guardian or with mother as the guardian(Status: known as Minors
Account).
Minors above the age of 10 will also be allowed to open and operate SB account
independently. ( No overdrafts will be granted to these minors. )
SB account can also be opened by a minor represented by guardian or jointly with a major,
where minor is represented by natural guardian. Minors above the age of 10 will also be
allowed to open and operate SB account subject to restrictions on transactions and no
cheque books will be provided to such accounts.
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.
Account of Illiterate / Blind Person Illiterate persons are allowed to open SB Deposit
accounts jointly with persons who are literate or illiterate and closely related to them and
genuine request of illiterate customer.
The account of such person may be opened provided he/ she call on the Bank
personally along with a witness who is known to both the depositor and the Bank.
Normally, no Cheque book facility is provided for such Savings Bank Account. At
the time of withdrawal / repayment of deposit amount and / or interest, the
illiterate customer should affix his / her thumb impression or mark in the presence
of the authorized officer who should verify the identity of the person.
The Bank will explain the need for proper care and safe keeping, of the passbook
etc. given to the account holder.
ATM/DEBIT card facility be permitted in the accounts of illiterate customers,
however it should be ensured that he/she is able to understand
(i)the numerical as scripted on the ATM machine and
(ii) in the letter informing the PIN number and also
(iii) to distinguish his/her card from other cards. He/ She must be informed of
the procedure of operating the ATM machine as well as use of various
buttons on ATM machine and elaborating the importance of the PIN number
and how to change them. In case of Joint Operation (mode of operation),
ATM/Debit card shall not be issued.
No cheques with RTI / LTI etc. shall be presented / paid through clearing / CTS.
The Bank official shall explain the terms and conditions governing the account to
the, illiterate.
Account Of Literate Blind Person A blind person is allowed to open SB Account in

his/ her name singly or jointly with others whom he/ she considers reliable. All the
banking facilities such as cheque book facility including third party cheques, ATM
facility, Net Banking facility, Locker facility, retail loans, etc. are invariably offered to
the visually challenged without any discrimination. (RBI vide circular
DBOD.NO.Leg.BC.91/09.07.005/2007-08 date 04.06.2008
CHARGES IN SB ACCOUNT
Minimum balances charges

Restrictions on number of transactions, cash withdrawals, etc., for given
period.
_________________________________________________________________________________
71
Charges for issue of cheques books,

Charges for additional statement of accounts,
Charges for duplicate pass book, folio charges, etc.
OPERATION MODE IN SB ACCOUNT
Single Operated singaly by the Account Holder

Jointly - Mode of Operations for joint account is as under
i) Either or Survivor: Under this mandate, either of the account holders can
operate the account or in case of death of any one of the account holders, the
outstanding balance can be paid to the survivor.
ii) Any one or Survivor: Under this mandate, the account can be operated by
any of the joint account holders and in case of death of any one or two of joint
holders, the balance outstanding can be paid the survivor (s).
iii) Former or Survivor: Under this mandate, only the first named depositor has
the right to operate the account i.e. during the lifetime of former, the latter cannot
operate the account. After the death of former, the latter can operate the
account/ or the outstanding balance can be paid to survivor.
iv) Latter or Survivor: Under this mandate, only the second named depositor
has the right to operate the account i.e. during the lifetime of latter, the former
cannot operate the account. After the death of latter, the former can operate the
account/ or the outstanding balance can be paid to survivor.
v) Joint operation: Under this mandate, the account is operated jointly i.e. the
instructions given by joint account holders are honoured if signed by both/ all the
joint holders. In such cases, on death of any of the account holders, the
operation in the account is stopped and is dealt with as a claim case
vi) In short, payment to survivor(s) can be made in the normal course subject to
the only rider that there is no order from a competent court restraining the bank
from making such payment.
vii) A joint account holder, who is authorized to operate the joint account himself
alone, cannot appoint an agent or attorney to operate the account on his behalf.
Such attorney or agent may be appointed with the consent of all the joint
account holder/s.
viii) At the request of the depositor, the Bank will register mandate / power of
attorney given by him authorizing another person to operate the account on his
behalf.
ADDITION / DELETION OF NAME/S OF JOINT ACCOUNT ACCOUNT HOLDER

At the request of all the Joint Account Holders the addition or deletion of name/s of Joint
Account Holder/s is allowed if the circumstances so warrant or allow an Individual
Depositor to add the name of another person as a Joint Account Holder.
NOMINATION
Nomination facility is available for all Saving Bank schemes.
INTEREST PAYMENTS
Interest on saving account shall be paid at the rate decided by the Bank within the
general guidelines issued by the RBI from time to time.
SB Deposit(accounts of resident Indians) interest rate has been deregulated
since 25.10.2011)
_________________________________________________________________________________
72
In case of SB Deposits, interest shall be on daily product basis from 01/04/2010,

and the same credited to the account only when the interest amount is Re. 1/- or
more. Interest shall be credited on half yearly basis as on 30th June and 31st
December.
STAFF ACCOUNTS
Branches have been permitted to allow additional interest on SB Deposita at a
rate not exceeding one per cent per annum over and above the stipulated rate of
interest to banks staff and their exclusive associations subject to certain
conditions. In respect of a savings deposit account opened in the name of:
Member or a retired member of the banks staff, either singly or jointly with
any member or members of his/her family, having FIRST NAME OF STAFF;
or
the spouse of a deceased member or a deceased retired member of the
banks staff; and
An Association or a fund, members of which are members of the banks staff;
Rounding Off Of Transactions
All transactions including Payment of Interest on Deposits shall be rounded off to
the nearest Rupee; i.e., fraction of 50 paise and above shall be rounded off to the
next higher rupee and fraction of less than 50 paise shall be ignored.
Inoperative/Unclaimed Accounts
A SB account shall be treated as inoperative / dormant if, there are no transactions in the
account for over a period of two years. For the purpose of classifying an account as
inoperative both the type of transactions i.e. debit as well as credit transactions induced at
the instance of customers as well as third party should be considered. However, the service
charges levied by the bank or interest credited by the bank shall not be considered.
The customers shall be intimated (all joint account holders) three months in advance, about
his/her account falling into inoperative category and the consequences thereof in case no
credits/debits are made within stipulated period.
Unclaimed deposit accounts means accounts, which have not been operated upon for ten
years
In an effort to play a more pro-active role in finding the whereabouts of the account
holders of unclaimed deposits/inoperative accounts, the list of such accounts which are
inoperative for ten years or more has been displayed on our Banks website. For Individual
Customers, the list so displayed on the website contains the names of the account holder(s)
and his/her address in respect of unclaimed deposits. For Non Individual Customers, the list
so displayed on the website contains the names of the Entity and its address in respect of
unclaimed deposits.
_________________________________________________________________________________
73
CURRENT DEPOSIT PRODUCTS
Current Account is a form of demand deposit where from withdrawals are allowed any
number of times depending upon the balance in the account or up to a particular agreed
amount and will also include other deposit accounts which are neither Savings Deposit nor
Term Deposit.
No Restrictions on number of transactions, cash withdrawals, etc.
ACCOUNT OPENING & OPERATIONS
Current Accounts can be opened by individuals / partnership firms / Private and
Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc.
Due diligence required to carry out Know Your Customer (KYC) and Anti Money
Laundering (AML)) guidelines of RBI / GOI and Policy and Procedures adopted by
the Bank in this regard.
A statement of account will be provided by the Bank to Current Deposit Account
holders periodically as per terms and conditions of opening of the account.
Alternatively, the Bank may issue a Pass Book to these account holders.
DOCUMENTS REQUIRED FOR OPENING SAVING ACCOUNT
Current Accounts can be opened by individuals / partnership firms / Private and
Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc.
Illiterate persons are not allowed to open Current Accounts jointly with persons who
are literate or illiterate.
CHARGES RECOVERABLE IN CURRENT ACCCOUNT
Non Maintenance of minimum balances
Issue of cheques books ( CTS/MICR/Non-MICR/Multi city cheque books)
Standing Instructions / Stop Payment Instructions / Closure of Account / Loss of
Token
Charges for duplicate pass book / Statement , folio charges, etc
Issuance of Certificate to the constituents
Remittances / Collection / Lockers / Safe Custody
ABB facilities and Free Ledger Pages allowed / Concessions are as per Head Office
Circular No. HO/P&D/23/2007-08/227 dated 23.08.2007 or as revised from time to
time.
INTEREST PAYMENTS
No Interest is paid in Current Accounts
Balances lying in Current Account standing in the name of a Deceased Individual
Depositor / Sole Proprietorship Concern, Interest shall be paid only from 1st May
1983 or from the date of death of the depositor, whichever is later, till the date of
repayment to the claimant/s at the rate of interest applicable to Savings Deposit as
on the date of payment.
ADDITION / DELETION OF NAME/S OF JOINT ACCOUNT HOLDER
At the request of all the Joint Account Holders the addition or deletion of name/s of
Joint
Account Holder/s is allowed if the circumstances so warrant or allow an
Individual Depositor to add the name of another person as a Joint Account Holder.
NOMINATION
Nomination facility is available for all Current Deposit schemes.
Inoperative/Unclaimed Accounts
_________________________________________________________________________________
74
A Current account shall be treated as inoperative / dormant if, there are no transactions
in the account for over a period of two years. For the purpose of classifying an account as
inoperative both the type of transactions i.e. debit as well as credit transactions induced
at the instance of customers as well as third party should be considered. However, the
service charges levied by the bank or interest credited by the bank shall not be
considered.
The customers shall be intimated (all joint account holders) three months in
advance, about his/her account falling into inoperative category and the
consequences thereof in case no credits/debits are made within stipulated period.
Unclaimed deposit accounts : Accounts, which have not been operated upon for
ten years
In an effort to play a more pro-active role in finding the whereabouts of the

account holders of unclaimed deposits/inoperative accounts, the list of such
accounts which are inoperative for ten years or more has been displayed on our
Banks website. For Individual Customers, the list so displayed on the website
contains the names of the account holder(s) and his/her address in respect of
unclaimed deposits. For Non Individual Customers, the list so displayed on the
website contains the names of the Entity and its address in respect of unclaimed
deposits.
Sr.
SCHEME
AMOUNT
SPECIAL FEATURES
CURRENT ACCOUNT
(GENERAL)
CA 101
MINIMUM BALANCE (WITH

CHEQUE BOOK) RS.250/- IN
R/SU & RS.500/- IN U/M
NORMAL CURRENT A/C

MAXIMUM LIMIT FOR CASH TRANSACTIONS-ABB (RECEIPTS &
PAYMENTS COMBINED) RS.1 LAC
NO CHARGES FOR CASH TRANSACTIONS UP TO RS.50,000/ABOVE RS.50,000/- - IRRESPECTIVE OF LOCATION - RS.1.50 PER
BRANCHES
THOUSAND OR PART THEREOF FOR FULL AMOUNT WITH A MINIMUM
RS.25/NON CASH TRANSACTIONS - NO CHARGES FOR TRANSACTIONS UP

TO RS.25,000/ABOVE RS.25,000/- - SAME STATION FREE UPCOUNTRY
LOCATIONS - RS.1.20 PER THOUSAND FOR THE FULL AMOUNT OF
TRANSACTION WITH A MIN. OF RS.50/- & MAX. RS.5000/OF
NRE CURRENT
ACCOUNT
(SB/PDS/TD ALSO
ALLOWED)
CA 102
IN INDIAN RUPEES.
FUNDS FROM ABROAD.
A/C CAN BE OPENED BY NRI / PIO.

ANY RESIDENT GOING ABROAD FOR GAINFUL EMPLOYMENT CAN OPEN
NRE ACCOUNT.
JOINT A/C WITH RESIDENTS NOT PERMITTED.
JOINT A/C WITH NON-RESIDENTS PERMITTED.
P.A. HOLDER CAN OPERATE THE ACCOUNT.
FREELY REPATRIABLE.
_________________________________________________________________________________
75

NRO CURRENT
ACCOUNT
(SB/PDS/TD ALSO
ALLOWED)
CA 103
IN INDIAN RUPEES.
LOCAL FUNDS/FUNDS FROM
ABROAD.
A/C CAN BE OPENED BY NRI / PIO.

ANY RESIDENT GOING ABROAD FOR GAINFUL EMPLOYMENT, HIS
DOMESTIC ACCOUNT WILL BE CONVERTED INTO NRO A/C.
IF HE/SHE DOES NOT HAVE ANY DOMESTIC A/C, HE/SHE CAN ELECT
TO OPEN A NRO A/C.
JOINT A/C WITH RESIDENTS/NON-RESIDENTS PERMITTED.
NON-REPATRIABLE EXCEPT TO THE EXTENT OF USD ONE MILLION PER
FINANCIAL YEAR INCLUDING SALE PROCEEDS OF IMMOVABLE
PROPERTY.
EEFC CA
CA 104
IN FOREIGN CURRENCY.
USD, GBP, EURO, CANADIAN $
AND AUSTRALIAN $.
FUNDS FROM ABROAD.
ANY TYPE OF REMITTANCES COMING FROM ABROAD CAN BE KEPT IN

EEFC A/C.
FREELY REPATRIABLE.
IMPREST ACCOUNT
CA 105
BRANCHES MAINTAINING CURRENT A/CS OF EXTENSION COUNTERS, LEAD BANK OFFICES, STCS, SPL.
COLLECTION CENTRES, STATIONERY GODOWNS, CENTRAL CASH CENTRES, CURRENCY CHESTS,
SATELLITE OFFICES, ASSETS RECOVERY CELLS, INSPECTORATES, SERVICE BRANCHES, MICR CENTRE.
BANKERS CA 106
CURRENT A/CS OF BANKS MAINTAINED WITH THE BRANCHES.
CA MARGIN MONEY
CA 107
MARGIN MONEY KEPT IN C/AS AGAINST ISSUE OF L/CS, GUARANTEES, ETC.
DOMESTIC RFC
SCHEME CA 108
IN FOREIGN CURRENCY
RESIDENTS CAN OPEN THIS A/C.

FREELY REPATRIABLE.
CURRENT ACCOUNT
PREMIUM GOLD
CA 109
AVERAGE QUARTERLY CREDIT BALANCE RS.

200,000/-
ALTHOUGH NORMAL CHEQUE BOOKS CAN BE USED

FOR CASH(SELF) WITHDRAWAL / TRANSFER
TRANSACTIONS UNDER ABB, BUT FOR CLEARING
TRANSACTIONS AT UPCOUNTRY LOCATIONS, MULTI
CITY CHEQUE BOOKS ARE ISSUED.
NO CHARGES FOR CHEQUE BOOKS
(LOCAL OR MULTI CITY)
MAXIMUM LIMIT FOR CASH TRANSACTIONS-ABB
(RECEIPTS & PAYMENTS COMBINED) RS.1 LAC
NO CHARGES FOR CASH TRANSACTIONS UP TO
RS.50,000/ABOVE RS.50,000/- - IRRESPECTIVE OF LOCATION
- RS.0.75 PER THOUSAND OR PART THEREOF FOR
FULL AMOUNT WITH A MINIMUM OF RS.25/NON CASH TRANSACTIONS - NO CHARGES FOR
TRANSACTIONS UP TO RS.25,000/ABOVE RS.25,000/- - SAME STATION FREE
UPCOUNTRY LOCATIONS - RS.0.50 PER THOUSAND
FOR THE FULL AMOUNT OF TRANSACTION WITH A
MIN. OF
CA 111
CURRENT ACCOUNT
CAPITAL GAINS SCHEME
ACCOUNT A FOR SB/CA
ACCOUNT B FOR TD
RS.50/- & MAX. RS.5000/-
EXEMPTION FROM CAPITAL GAINS TAX U/S 54,

54B, 54D, 54F AND 54G OF INCOME TAX ACT,
1961 ALLOWED. OPTION TO OPEN ACCOUNT A OR
B.
INTEREST OR WITHDRAWAL FROM ACCOUNT B CAN
BE
MADE
THROUGH
ACCOUNT A ONLY.
INTRODUCTION OF THE DEPOSITOR NEED NOT BE
INSISTED UPON.
JOINT ACCOUNT NOT PERMITTED. CHEQUE BOOK
FACILITY NOT ALLOWED.
WITHDRAWAL OF INTEREST DOES NOT REQUIRE
_________________________________________________________________________________
76
.
IT AUTHORITY LIKE THE
PRINCIPAL AMOUNT. SPECIAL
ACCOUNT OPENING FORM TO BE OBTAINED IN
DUPLICATE. THE FORMS AS OBTAINED DURING THE
COURSE
OF
OPERATION
OF
ACCOUNT
/
WITHDRAWALS /CLOSURE OF ACCOUNTS TO BE
SUBMITTED TO THE IT AUTHORITY WITHIN 7 DAYS
OF THE CLOSE OF THE MONTH.
PERMISSION
WITHDRAWAL
DIVIDEND WARRANT
CA 112
A/CS OPENED BY THE COMPANIES TO PAY DIVIDEND.
PRAGATI CA
SCHEME
CA 113
MINIMUM BALANCE RS.1000/- IN R/SU &

RS.5000/- IN U/M BRANCHES
FOR A/CS MAINTAINING AVERAGE DAILY CA
BALANCE OF RS.5 LAC OR MORE
FROM
OF
ALL NEW CURRENT A/CS W.E.F. 14.08.2007

SHALL BE COVERED UNDER THE SCHEME FOR.
ONE FREE ATM/DEBIT CARD FOR EVERY A/C. FREE
CARD MAY ALSO BE PERMITTED TO THE PARTNERS OF
THE FIRM/DIRECTORS OF THE WHO ARE
AUTHORIZED TO OPERATE THE A/C.
ST
WAIVER OF 100% ABB CHARGES DURING THE 1

YEAR.
FREE INTERNET / TELE BANKING
WAIVER OF DEMAT A/C MAINTENANCE CHARGES
FOR ONE YEAR.
ADDITIONAL BENEFITS :
FREE DRAFT ISSUANCE FACILITY
FREE RTGS FACILITY UP TO RS.5 LACS.
(HOWEVER, MANDATORY RBI CHARGES PLUS
APPLICABLE SERVICE TAX SHALL BE RECOVERABLE).
CA 117
ADMIN CURRENT FOR OUR OWN

ONLY
OFFICE USE
A/C
BRANCHES/OFFICES
TDS DEDUCTED
OPENED BY OUR
ONLINE REMITTANCE OF
FOR
TERM DEPOSIT PRODUCTS
Term Deposit: means a deposit received by the Bank for a fixed period withdrawable only after
the expiry of the said fixed period and includes deposits such as Recurring / Cumulative / Annuity /
Reinvestment Deposits, Cash Certificates, and so on viz.: Fixed Deposits are deposits where the
depositor makes a lump sum deposit at one time for a fixed term and receives, payment thereof on
maturity;
ACCOUNT OPENING & OPERATIONS
Term Deposits Accounts can be opened by individuals / partnership firms / Private and Public
Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc.
Due diligence required to carry out Know Your Customer (KYC) and Anti Money Laundering
(AML)) guidelines of RBI / GOI and Policy and Procedures adopted by the Bank in this regard.
SCHEME
Fixed Deposit
AMOUNT
Minimum
Rs.100/-
PERIOD
07 days to 120
months
SPECIAL FEATURES
SCHEME
CODE
Interest Payable Quarterly
TD
TD
TD
TD
TD
301 (Qty. Liq.)

302(Without Liq.)
308 Diff. Intt. Rate
311 FDR-Banks
312 Govt Spon
_________________________________________________________________________________
77
Cumulative
Deposit
Multiples of
Rs.100/-
Call Deposit
Monthly
Income
Deposit
Monthly
Income
Deposit
Suvidha
Deposit
Capital Gains
Scheme 1988
Account A
for SB/CA
Account B
for TD
NRE
NRO
FCNR (B)
Amount is
accepted so that
Monthly Income
is in multiples of
Rs.10/Amt is accepted
so that Monthly
Income is in
multiples of
Rs10/-
Subsidy
TD 303
TD 309
Diff.Intt.Rate
TD 310 Court Claim
6 months to
120 months In
multiples of 3
months
Quarterly Compounding
Lump Sum payment on maturity
At Call
Issued in favour of beneficiaries on

account of applicants
Zero Interest
TD 304
12 months to
120 months
Interest is paid on Monthly basis.

Principal paid on maturity.
TD 305
12 months to
120 months
Interest is paid on Monthly basis.

Principal paid on maturity.
TD 305
Partial withdrawal in multiples of
12 months to
units of Rs.1000/- allowed.
120 months
Remaining units continue to earn
interest at Contracted Rate.
Exemption from Capital Gains Tax u/s 54, 54B, 54D, 54F and 54G of
Income Tax Act, 1961 allowed.
Interest or withdrawal from Account B can be made through Account A
only
Introduction of the depositor need not be insisted upon.
Joint account not permitted.
Withdrawal of Interest does not require permission from IT Authority like
the withdrawal of Principal amount. Special Account Opening Form to be
obtained in duplicate. The forms as obtained during the course of
operation of account / withdrawals /closure of accounts to be submitted
to the IT authority within 7 days
A/C can be opened by NRI/ PIO.
Any resident going abroad for gainful
employment can open NRE account.
In Indian
Joint a/c with Residents not
Rupees.
1 to 10 years
permitted (conditional). Joint a/c
Funds from
with Non-Residents /Residents (with
abroad.
conditions) permitted.
Freely Repatriable. Exempted from
all taxes.
A/C can be opened by NRI/ PIO.
Any resident going abroad for
gainful employment, his domestic
account will be converted into
NRO a/c. If he/she does not have
In Indian
any domestic a/c, he/she can
Rupees. Funds
As applicable to
elect to open a NRO a/c.
Local/ from
domestic TD
Joint a/c with Residents/Nonabroad.
Residents permitted.
Non-repatriable except to the
extent of USD 125000 per
financial year including sale
proceeds of immovable property.
No Tax exemptions.
Funds from
Minimum 12
A/C can be opened in TD only by
abroad.
months Maximum 5 NRI/ PIO. Any resident going abroad
In Foreign
years
for gainful employment can open
Minimum
Rs.2000/In Multiples of
Rs.1000/-
TD 306
TD 313-FDR
TD 314-CDR
TD 321-FDR
TD 325-CDR
TD 322/323-FDR
TD 324-CDR
TD 331-FDR
TD 332-CDR
_________________________________________________________________________________
78
RFC
Progressive
Deposit(PD)
OBC Adhaar
(VPD)
Flexi Fixed
Deposit
Currency USD,
FCNR (B) account.
GBP, Euro,
Joint a/c with Non Residents/
Canadian $ and
Residents (close relative) permitted.
Australian $ &
Freely Repatriable.
Japanese yen.
Exempted from all taxes.
Funds from
abroad.In oreign
Any returning NRI who has stayed
Minimum 12
Currency.USD,
abroad can open RFC a/c.
months Maximum 5
GBP, Euro,
Joint a/c permitted/Freely
rears
Canadian $ and
Repatriable.
Australian $.
6 months to 120
Multiples of
months (In
Amount is deposited in monthly
Rs.10/multiples of 3
Installments.
Months)
Lump Sum Payment on maturity.
The min. installment is fixed at Rs10/
and in multiples thereof with a max.
of Rs 50,000/- p.m.
Core monthly
Monthly installments paid during the
installment in
12 months to 120 tenure of the deposit account shall
Multiples of
months
not exceed in any month, FIVE times
Rs.10/of the core amount or Rs50,000/-,
Max. Rs 50000/whichever is less.( SI facility maximum two deposits in a month
be allowed only in case the customer
opts for SI facility)
Operative
Min. avg. quarterly Auto
Reverse Penalty / Period
Accounts
balance
Sweep
Sweep
qtr for of
Rs.
Unit
Unit
min.bal. FFD
Rs.
Rs.
Rs.
SB Smart Save- 25,000/5000/2000/150/90
SB 211
days
5 years
CA Premium
200,000/25,000/- 25,000/- 1000/- 45
Gold/-CA 109
days to
1Year
TD 333-FDR
TD 334-CDR
PD 315
PD 316
TD376/382 FDR
TD 379 - FDR
_________________________________________________________________________________
79
IT PRODUCTS OF OUR BANK

CATEGORY
On site
ATMs
Offsite
ATMs
Mobile
ATMs
31.03.12
31.03.13
31.03.1
4
31.03.15
932
1087
1754
331
365
31.12.15
31.01.16
2110
2196
2200
361
372
394
395
13
13
Total ATMs
1270
1452
2128
2495
2592
2597
Total
Outlets
3042+19(
EC)
3452
4254
2251 branch
+2495
ATMs=4746
2351 branch
+2592
ATMs=4943
2351 branch
+2597
ATMs=4948
POS
Terminal
1201
1355
1659
1911
2392
2447
IT PRODUCTS & SERVICES

Product
ATM Card Base
Customer
Registered for SMS
Alert
I banking
customers
Mobile Banking
Customers
31.03.12
32.71
31.03.13
39.09
31.03.14
49.71
31.03.15
74.77
31.12.15
Fig in Lac
31.01.16
82.87
83.63
24.81
36.77
46.64
58.86
63.37
64.91
4.46
5.57
6.67
8.17
9.32
9.61
0.19
0.35
0.55
0.81
1.04
1.09
Highlights
Oriental Bank of Commerce is one of the 1st Public Sector Bank certified with Payment Card
Industry Data Security Standard (PCI DSS v3.1) for Card related Operations.
In terms of HO Circular HO/ADC/12/2015-16/860 Dated 2/02/2016 Charges were levyied
on the staff members also on using the other Banks ATMs for more than 3 transactions in a
month .
First Saturday of every month be observed as ADC Day. If First Saturday is holiday than the
ADC Day shall be observed on the preceding day if it is in the same month, else on the
following Monday.
Bank is accredited with ISO/IEC 27001:2013 Security Certification for its Data Centers, CBS
Cell & Processes at DIT Corporate Office.

w.e.f. 1st February 2016, all new cards issued - debit and credit, domestic and international
- by Banks shall be EMV Chip and Pin based cards.
_________________________________________________________________________________
80
EMV chip based cards shall provide interoperability with the global payments infrastructure and
consumers with EMV chip payment cards can use their card on any EMV-compatible payment
terminal.
o
o
This will provide better security against skimming on POS terminals

Keeping in view the same, all the existing ATM Readykit in stock is required to be
exhausted
RuPay is the Indian domestic card payment network set up by National Payments
Corporation of India (NPCI) . Its our prime responsibility to PROMOTE usage of RUPAY card
amongst our customers.
Bank has launched new Internet Banking Platform FEBA (Finacle E-Banking) which is more
resilient with additional features as under:

o Self User creation through ATM credentials and OTP
o Regeneration of User ID and Password
o Schedule NEFT/ RTGS
o Bulk NEFT/ RTGS for Corporate i-Banking
o IMPS on Internet Banking
o Online PPF a/c
o User dashboard customization etc.
o Setting up of limit for Ibank Transactions with a cap of Max 25 Lac
o Setting up the limit for beneficiary
De-centralizing the processing of Re-Issue requests for Retail Net Banking

o Password to respective Regional Officel ADC level
o Queries on status of existing Retail I-Banking users.
o Re-setting of passwords (login and/ or transactional) and sending them through
o SMS to registered mobile number of customer.
o Enabling/ disabling Retail I-Banking users.
Bank has launched Mobile APP ORIENTAL SAATHI with following features / Tabs have
been provided in the App:o 1. Branch/ ATM Locator
o 2. Complaint / Suggestions
o 3. EMI Calculator
o 4. Interest Rates
o 5. Alerts
o 6. Contact Us
All official documents should henceforth have the standardized Font viz. Arial with Font size
of 12 and Single Line Spacing.
DIGITAL BANKING
The transformation of the Banking services from Traditional Banking offerings to the Digital
Banking offering is dependent on connecting the customers through latest & contemporary
technology driven products of the Bank. Becoming a Digial Bank is about leveraging digital
technology to provide an enhanced customer experience that fits the lifestyle of the increasingly
digital consumer. The impact of the digitization of financial services has been enormous due to high
_________________________________________________________________________________
81
penetration and rapid acceptance of internet based services and mobile devices such as smart
phones, tablets and e-readers which has set the foundation for rapid innovation into digital
financial service offerings.
The usage of alternate delivery channel is a step to move towards the digital banking. The
functional usage of the ADCs is a key for improving the customer service by empowering the
customer with self banking tools and at the same time decongests the branches.
It becomes difficult to contact the customers for upselling and cross selling our various products
and services. Capturing of Mobile numbers and Email Ids of the customer shall be beneficial in the
following ways:
Sending of communications like E-statements, One Time Password(OTP), various other
updates or publicity content instead of paper based communications.
Publicity over Mobile and Email will reduce publicity cost of the bank considerably.
Cost of sending communications over Mobile and Emails is miniscule even which will reduce
operational cost of the branch.
Any information can be disseminated within seconds over Mobile and Email.
ATM Based Services
Cash Withdrawal - The cardholder can withdraw cash from our Banks ATMs or the ATM of other
member banks of ATM consortium viz. VISA and NFS.
The maximum permissible amount of cash withdrawal per day is Rs.25,000/- .
The maximum limit per withdrawal is Rs.25,000/- in our Bank ATM and Rs.10,000/- on other
Bank ATMs.
For International GOLD VISA Debit Card - Daily cash withdrawal and POS Limit:Rs.50,000/each.
Fast Cash - The cardholder can withdraw cash as per pre-defined amount. This option is available
for customer on our Bank ATM only where customer may select out of four option for withdrawal of
cash i.e Rs. 1000/- Rs. 2000/- Rs. 3000/- and Rs. 5000/- and the ATM dispenses the cash
accordingly. Through this option, customer need not enter amount, thus makes the cash withdrawal
faster, and is therefore called FAST CASH. The maximum withdrawal limit is same as in point (i)
above.
Balance Inquiry - The balance in the account can be viewed through the ATM.
Mini Statement - The cardholder can obtain the statement containing last 5 transactions in the
primary and secondary account alongwith details of available balance.
Change of PIN - 'Change PIN' option can be used by the cardholders at the OBC ATMs to change
the PIN of their Cards as and when desired by them.
Fund Transfer - Card holder can transfer fund between the accounts linked in the card. In order
to perform Fund Transfer, cardholder has to select from and to account number and enter the
amount he wants to transfer.
Cheque Status Inquiry - Cardholder can use the ATM to inquire the status of the Cheques issued
in his account.
Stop Cheque Payment - Cardholder can stop the cheque payment in his account using this ATM.
TAX Payment through ATM's - Now Cardholders of Orienatl Bank of Commerce can register
themselves for Income Tax payment through ATM and can make the payment of Income Tax
through any of our Bank's ATM. The limit for maximum permissible amount is Rs. 1.00 lac per day.
Mobile banking registration & deregistration - Cardholder can register and deregister the
mobile banking facility.
_________________________________________________________________________________
82
SMS Alert Service Registration/Change in mobile Number for SMS Alert

The customers can avail SMS Alert services by registering the mobile no through ATM.
ATM Cards - Our Bank is presently offering following types of ATM cards to our customers:
i. ATM cum Debit Card International debit Card
It can be used both at Point of Sale (POS) terminals and ATMs.
It is a global card and is accepted across the globe at ATMs or POS with VISA logo.
All Savings Bank and Current Account holders in individual category are offered our Card.
On 14 Jan 2013 the bank has conversion of existing ATM card to ATM cum debit cards and
issuance of ATM cards with POS facility in future by default.
The customers who do not want additional POS facility on their ATM cards have been
requested to send their intimation to the Bank on card@obc.co.in or through Toll Free Nos. 1800180-1235.
VISA International Gold Debit Card ( 10/12/2013)
Any ATM Card holder who have used their card at least once in foreign locations is eligible for this
gold Card .
1. Daily cash withdrawal and POS Limit:Rs.50,000/- each.
2. Add on Gold Debit Card where Primary Card is Gold Debit Card.
3.EMV( chip Based) cards also provides interoperability with the global payments infrastructure
consumers with EMV chip payment cards can use their card on any EMV-compatible payment
terminal.
4. One time Issuance charge of Rs.100/- and Annual Charges Rs.500/-. .
ii. ATM card for Farmers Oriental Green Card
This card is a ATM cum debit card.
This is issued in the A/cs under Green Credit Card (GCC) Scheme and Oriental Green Card
(OGC) Scheme i.e. OD511 and CC404.
IV Rupay ATM cum Debit Cards and kisan Card
RuPay is the Indian domestic card payment network set up by National Payments Corporation
of India (NPCI) at the behest of banks in India.
Such arrangement would help Indian Banks to cut down on their highly paid membership fee
to International consortiums such as VISA, Master and American Express
which shall be issued to the customers of the Bank through Ready Kits as well as Personalized
Cards
The RuPay cards can be issued as Primary card as well as Add-on card in addition to existing
VISA Cards, through DCREQ
Eligibility criteria for Rupay ATM cum Debit card issuance and validity period of card shall
remain the same as is applicable for existing ATM-cum-Debit card
The annual charge on Rupay ATM cum debit card is nil
Interbank ATM Usage Facility
As of now, our Banks card holders can perform Cash Withdrawal and Balance Inquiry on the ATMs
of member banks of ATM sha0ring consortiums viz. VISA and NFS. Similarly the cards of other
member banks under these consortiums are accepted on all our ATMs and they can perform Cash
Withdrawal and Balance Inquiry operations. As per RBI directives the maximum cash withdrawal
from ATM by customer of other bank is limited to Rs10,000/- per transaction.
Our customers who do financial and non financial transactions on other Banks ATM and other
Banks customers who do financial and non financial transactions on our Banks ATM shall be
charged Rs 20.00 on Financial Transaction and Rs 9.00 shall be charged for non financial
transaction
viz
balance
inquiry,
mini
statement
and
PIN
change.
( Free transactions For Metro Stations 3 free transactions /month and 5 free transactions /
month for other stations )
_________________________________________________________________________________
83
Six Metro centres are Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.
In terms of HO Circular HO/ADC/12/2015-16/860 Dated 2/02/2016 Charges were

levyied on the staff members also on using the other Banks ATMs for more than 3
transactions in a month .
Daily Transaction Limit: Visa Card and Rupay card
i. Total daily cash withdrawal limit from an account - Rs25000/ii. A customer can withdraw upto Rs25000/- in a day from our Bank ATM.
iii. A customer can withdraw upto Rs10000/- in a day from other Banks ATM.
iv. A customer can purchase upto Rs25000/- in a day at POS through our ATM cum Debit card.
If it is a Gold Card then limit is Rs. 50000/- per day.
ENABLING PIN PROMPT FOR POINT OF SALE (POS) TRANSACTIONS.
As per the circular DIT dt 13.03.2013 the bank has made PIN as mandatory for doing transaction
through POS terminals through ATM cum Debit Cards. The PIN value would be same as being used
for undertaking ATM transactions.
RBI guidelines, all banks need to comply with this guideline by June 30, 2013 the customers may
come across POS machines of other Banks wherein POS machines are not
compliant for accepting PIN value and at such terminals the transaction would be
approved as signature based transaction as is being done in current scenario.
1. Eligibility Criteria
Any customer having a Savings Bank / Current Account / Over Draft A/c in his / her individual
capacity and not in the representative capacity, Staff OD accounts. The request for ATM card is
given through DCREQ option in Finacle.
The following instructions /guidelines must be followed for issuance of cards:
i.
Card can be issued to a customer provided his/her age is 14 years or more and he/she is a
literate. Following customers are not eligible for issuance of ATM / Debit Card:
i) Customers below 14 years of age
ii) Illiterate
iii) Insolvent
iv) Persons operating accounts in representative capacity
ii.
The maintenance of primary account is compulsory for issuance of the cards. The primary
account refers to the customers account selected by the customer for debiting the
withdrawals in the normal course.
iii. No minimum deposit/balance in SB account for the Cards is required for issuance of cards,
though the minimum balance norms prescribed as per existing guidelines applicable to these
account will continue to be in force.
iv. Issue of Cards in joint accounts of the individuals having operational clause as Operation
Jointly' is not permitted.
v.
Issue of Cards is permitted in joint accounts of individuals provided the applicant has an
authority to operate the account singly. However, all the joint account holders should
authorize the applicant to avail the facility by counter signing the application.
vi. All the transactions arising out of the use of the Card/PIN allotted to the authorized customer
of the Joint Accounts, shall be binding on all the Joint Account Holders concerned jointly and
severally. In case the Bank subsequently receives instructions contravening the accepted
mandate of the Joint Account Holders, the Card will be blocked immediately under advice to
the concerned account/ card holders.
vii. The Cards will also be issued to NRI customers in their NRE accounts. At present Cash Deposit
facility is offered through our selected ATMs. Cash deposited by NRI customers in the ATMs
will be credited to their accounts as per RBI/ FEMA guidelines issued from time to time.
_________________________________________________________________________________
84
viii. The persons with blindness, low vision, and other disabilities are offered all banking facilities
such as cheque book including third party cheques, ATM facility, Net banking facility, locker
facility, retail loans and Credit Cards etc. without any discrimination
ATM-cum-Debit cards can also be used for conducting online transactions w.e.f
10/11/2010- VBV registration (Requirements for availing Verified By VISA service)- OBC Debit
Card should have CVV values. OBC Debit Card is enabled for POS i.e. should be full limit card. OBC
Debit Card holders mobile no is enabled for SMS alert service.
2. Chargeback Procedure for resolution of cardholders complaints
The customers using their OBC Cards can perform transactions through Banks own ATM
network as well as ATMs of other banks having ATM sharing arrangement with MITR / NFS /
VISA thereby giving them access to a vast network of 10 lac ATMs globally for operating their
account. The Proton Card of our Bank is an International VISA Debit card which can also be
used at POS terminals to make payments through cards. In this case the card holders primary
account linked with the card is debited online.
Issuer or Card Issuing Branch: An issuer is a Bank (in case of other Bank card) or branch (in
case of Banks own card) who is issuing the card and with whom customer has his / her
account.
Acquire or Acquiring branch / ATM/ POS: An acquirer is a Bank (in case of other Banks
ATM/POS) or branch (in case of Banks own ATM/POS) on ATM / POS the transaction is done.
This is also further referred as Acquiring Bank, Acquiring Branch and Acquiring ATM/POS.
What is Charge Back?
Some time the transaction carried out by the cardholder is not completed or partially completed
and may not get matured due to various reasons including power fluctuation, delay in data
signals, network speed or delay in response from the Banks host server etc.
Depending upon the status of the transactions system automatically rollback most of such
incomplete transactions. However status of some of the transactions if found in the doubtful
stage does not get rollback and through investigations the status of cash dispensation is then
ascertained from ATM where such disputed / doubtful transaction was carried out.
Problems and customer complaints specially related to non-dispensing or short dispensing of
cash, wrong debit in account, dispensing of cash and wrong reversals to customer account etc
need to be appropriately raised on Card Operation Centre (COC), Gurgaon by the card issuing
branch of the customer with required details of such transactions. It is the responsibility of the
Card Operation Centre (COC), Gurgaon to resolve such complaints and sent necessary advice to
the branches. This mechanism is called chargeback.
Types of Chargebacks
1. Inter Bank Chargeback
i) Chargeback raised by US:
Under the following circumstances the charge backs will be raised by us.
a. Dispute with regard to our customer a/c debited but cash not received.
b. Dispute with regard to cash dispensed by our ATM to other bank card holder but not
reimbursed through settlement.
c. Dispute with regard to our customer a/c debited in respect of merchant transaction
at POS terminal
ii) Chargeback raised on US:
Under the following circumstances the charge backs will be raised on us.
a. Cash received by our card holder for the transaction done at other Bank ATM but not
reimbursed to other bank through settlement due to the reason that our cardholders
account is not debited or transaction is reversed at our end.
b. Dispute of other bank cardholder about non-dispensation of cash at our ATM
_________________________________________________________________________________
85
c. Successful Merchant transaction of our cardholder at a POS terminal but not

reimbursed to other bank through settlement due to the reason that our cardholders
account is not debited or transaction is reversed at our end.
2. Intra Bank Chargeback
Disputed ATM withdrawal transaction done by the cardholder of our bank at our own ATMs
Re-presentment: Some time the debit transaction pertaining to cash already withdrawn by
the card holder gets reversed by crediting the customers account either by the system or as
part of wrong settlement entry. In such cases the acquirer branch / bank may represent such
cases and may claim the amount and ask to correct such accounting entries. This mechanism is
called Re-presentment.
SBI-Oriental Bank of Commerce Co-branded Credit Card - Bank has entered into an MOU with
SBI Cards and Payments Services Private Limited (SBICPSL) on 22.09.2011 for issuing Co-branded
Credit Cards to our employees and customers.
The cards shall be issued in two variants as under 1.Secured 2.Unsecured
Secured Cards shall be issued against the lien marked on the Term Deposit of the customer. Only
Credit Card Cell at Head Office is authorized to mark/ lien for SBI-OBC Secured Credit Card
.Unsecured Cards shall be issued without any security.
Annual Charge :- Rs 500 for Gold card and Rs 3000 for Platinum card.
Note:
1. The Email Id OBC.SBICARD@GE.COM needs to be referred only by the Branch Managers &
Oriental Bank of Commerce officials .
2. The Email Id for the SBI- Oriental Bank of Commerce customers remains
feedback.gesbi@ge.com
Note -1. ATM Helpdesk no toll free no 1800345-242 merge with no 1800-180-1235
Internet Banking Services
Internet Banking enables a customer to perform basic banking transactions through Internet from
anywhere in the globe. It is available 24 hours a day, 365 days a year and account can be operated
anytime / anywhere as per customer convenience.
Bank has launched new Internet Banking Platform FEBA (Finacle E-Banking) which is more resilient
with additional features as under:
Self User creation through ATM credentials and OTP
Regeneration of User ID and Password
Schedule NEFT/ RTGS
Bulk NEFT/ RTGS for Corporate i-Banking
IMPS on Internet Banking
Online PPF a/c
User dashboard customization etc.
Setting up of limit for Ibank Transactions with a cap of Max 25 Lac
Setting up the limit for beneficiary
Our Bank is offering two types of Internet Banking:
Retail Internet Banking (https://www.obconline.co.in): For individual customers. The
customer can opt for either Enquiry only facility or Transaction facility. It can be offered to any
Saving/ Current/ CC/ OD account holders. Only Query based facilities shall be provided to
jointly operated accounts. Transaction facility shall not be provided for such accounts.
Corporate Internet Banking (https://www.obconline.co.in/corp): For institutional
Customers/ Big Corporates. This has features like Mass upload of Salary, Online RTGS & NEFT,
_________________________________________________________________________________
86
Online trade finance requests request for LC opening, BG issue, Bill lodgment etc, Feature of
Maker/Checker, Feature of Role definition, Feature of adjusting/defining various limits by
corporate administrator itself etc.
Bank has implemented Second Level of Authentication i.e. OTP ( One Time Password)
for Net Banking Transactions, which is sent to Registered Mobile & Email Ids.
Some of the facilities offered are:
o Accounts Related Operations:
Online Balance Inquiry, View transactions, Statement of Account For a given period,
Cheque Status Inquiry, Clearing Instruments Inquiry, Stop Payment of Cheques etc.
o Fund Transfer Operations:
Funds Transfer to own accounts, Intra Bank Fund Transfer (to other accounts of OBC), Inter
Bank Fund Transfer (To accounts of other banks through NEFT/RTGS).
the NetBanking customers shall be able to make Loan EMI payment to their own Account as
well as to 3rd Party Loan Account using Transfers >> Third Party Transfers within Bank
Option.
o Payments:
External Payments like LIC of India for Premium Payments, IRCTC for Railway Reservation,
DB (Intt) Stock Brokers Ltd and Sharekhan for Funds Transfer Facility for Shares Purchases,
Payment of Direct Taxes, Payment of Telephone / Mobile / Electricity bills etc.
o Functionality To Open Online FDR/CDR (e-FDR/e-CDR)
The NetBanking customers shall be able to open Online FDR/CDRs using Requests >> eFDR/e-CDR Option.
The facility to create online e-FDRs/ e-CDRs using Retail NetBanking facility has been
activated only for customers where mode of Operation of the Account is Self,Either or
Survivor or Former Or Survivor.
Customers are able to open online FDRs / CDRs with the following scheme codes
1. CDR(Cumulative) TD303
2. FDR Without Liquidation (Fixed Deposit) TD302
3. NRE CDR TD325
4. NRO TDR TD324
5. NRO FDR Non Liquidation TD323
o Functionality to open tax saving CDR
a new functionality has been implemented in NetBanking system using which Retail
NetBanking Customers shall be able to create Online Tax Saving CDRs belonging to scheme
TD-341. Entering PAN number is mandatory for this scheme and PAN number must be preregistered at branch office
Deposit amount is minimum 5000 to 100000 (multiple of 100) and period is 60 month to
120.
o Online Share Trading in Collaboration with IDBI Bank
o Request for Issuance of Cheque Book, PO/DD
NetBanking Customers can also put in their request for issuance of Cheque Book, and
Demand Drafts, which are processed at backend by the Relationship Manager.
In addition to above, recently introduced following additions in features of Internet Banking:Internet Sign on and Transaction Password expiry limit has been reduced from 365 days to 90
days, to make it more secured.
Bank has introduced UCIC ( Unique Customer Identification Code) , hence for all new customers,
CUSTOMER-ID is the default user Id for accessing NetBanking facility. User at his wish can change
his user id online through Netbanking application. The NetBanking facility uses Customer ID to
automatically links all the accounts of a customer and facilitate Account related operations viz.
_________________________________________________________________________________
87
Inquiry for account balance, transactional details and to perform various financial transactions. In
case, the customer is maintaining accounts with different Customer Ids, then the Branch may
modify the Cust. Id (by using Finacle CCA option) of additional accounts. The Cust.Id should be
same as of the Main Operative Account of the Customer. By doing this, all accounts linked with the
common Customer Ids will be reflected automatically in the Internet Banking Application.
Internet Banking facility can be availed by NRI customers also by filling the Internet Banking
application form and sending it to the branch where they are maintaining their account.
The request for retail Internet Banking facility also is registered using the DCREQ menu option in
Finacle. Once the entry is made in the DCREQ menu, the Internet Banking Cell at Gurgaon shall
download the data of such customers and generate their respective Passwords.. Sealed
Passwords will be sent to concerned branches only. Customers will be instructed to collect the
same from branch only.
In case customer forgets Ibank password, the same can be reset now online with the help of ATM
& PIN, or the same can be reissue after registering the request in Ideas software. After resetting
the password new NetBanking passwords id sent to customers mobile number instantly, which are
registered with Bank for SMS Alerts facility.
Request for Add-on User Id for Joint Accounts: After obtaining written request from the
Customer and verifying their credentials, Branch Head should give email request to the Internet
Banking cell, Gurgaon (ibank@obc.co.in) and provide full particulars of the Customer for generation
of additional User Id(s). They should provide details viz. existing User.Id, Account Type & No.,
Account holder name and Mode of Operations, Delivery address etc.
PPF ACCOUNT FUNCTIONALITY THROGH I BANKING
In terms of HO Circular No. HO/DIT/ 25 /2015-16/ 894 15.02.2016, Keeping in view the
growing demand of customers, facility of operating PPF accounts through Internet Banking is
introduced.
Functionalities provided for PPF accounts are:
1. PPF account linking
2. View Account Details
3. View Nominee Details
4. View/Download Account Statement
Functionalities to be introduced shortly:
1. Online Funds Transfer to PPF account
2. Online PPF Account opening
To create awareness among the staffmembers Internet Banking Campaign for staff
members was launched 100 Rupee Campaign
De-centralizing the processing of Re-Issue requests for Retail Net Banking Password to
respective Regional Officel ADC level
Queries on status of existing Retail I-Banking users.
Re-setting of passwords (login and/ or transactional) and sending them through
SMS to registered mobile number of customer.
Enabling/ disabling Retail I-Banking users.
_________________________________________________________________________________
88
ASBA - APPLICATION SUPPORTED BY BLOCKED AMOUNT:ASBA is an application for subscribing to an issue (IPO/Right issue) and the new initiative of SEBI
for the welfare of Investors, containing an authorization to block the application money in a bank
account maintained with Self Certified Syndicate Bank (SCSB). SCSB is a bank which offers the
facility of applying through the ASBA process. ASBA is gaining importance day by day and the
customers are demanding this facility. It is beneficial to both the customers as well as the Bank
because the amount remains in the bank account of the customer till allotment is finalized and
actual amount equal to allotted shares is only debited instead of total application amount. It helps
the Bank not only to retain existing customers but also to attract new customers.
Under ASBA process, an ASBA investor shall submit an ASBA physically or electronically through the
internet banking facility, to the SCSB (designated branch) with whom the bank account to be
blocked, is maintained. The SCSB shall then block the application money in the bank account
specified in the ASBA, on the basis of an authorisation to this effect given by the account holder.
The application money shall remain blocked in the bank account till finalisation of the basis of
allotment of the issue or till withdrawal/ failure of the issue or till withdrawal/ rejection of the
application, as the case may be. The application data shall thereafter be uploaded by the SCSB
(Controlling branch) in the electronic bidding system through a web enabled interface provided by
the Stock Exchanges.
NOTE : ALL THE BRANCHES ARE AUTHORISED FOR ASBA
Mobile Banking
Mobile phones as a medium for extending banking services have off-late been attaining greater
significance. The rapid growth in users and wider coverage of mobile phone networks have made
this medium an important platform for extending banking services to customers. Bank has launched
Mobile Banking facility using which customer will be able to make Fund Transfer and also
information based services such as SMS Alerts, Balance Inquiry etc.
Ibank facility can be used in 2 ways
1. Basic mobile Phones without Internet Facility- Through NUUP based Platform
National unified USSD ( Unstructured Supplementary Service Data )platform based mobile
banking was launched .Customer can use mobile banking through their basic mobile phones
where INTERNET FACILITY is not required. NUP platform obviates the need for installing
application on the mobile phone and enabled users having basic mobile phones also to use
mobile Banking . The customer need not to have a GPRS or any other data connection on
their mobiles. They can use the services from any GSM mobile which has a calling capability
. Further NUUP does not require any JAVA of software to be downloaded on the mobile
NPCI has introduced the facility to direct menu code for OrientalBank of
Commerce is *99*53# in Mobile Banking under NUUP National Unified USSD(
Unstructured Suppelementy Service Data ) i.e. MOBILE BANKING FACILITY
WITHOUT INTERNET FACILITY
Per Day Transaction Limit is Rs 5000/- .
No Bank Charges levied for transactions . Only Mobile Service Providers SMS Charges is
applicable.
2. Smart Mobile Phones with Internet Facility Through Mobile App OBCmPay
OBCmPay Launched vide HO/ DIT / 40 /2009-10/ 822 dated 20.02.2010
The ever expanding network of Mobile Phone users, which has crossed the 600 million mark, has
opened up new vistas for the Bank to expand the Banking Services through the channel of Mobile
_________________________________________________________________________________
89
Phones. Our Bank have rolled out the latest IT enabled services named OBCmPAY for the
customers of our Bank, which can be availed by them using their mobile phones.
RBI Guidelines
RBI has come up with its guidelines on Dt. 20.10.08 and further on 24.12.09, some of the
important guidelines are given below The services shall be restricted only to customers of banks
The guidelines issued by the Reserve Bank on "Know your Customers (KYC)", " Anti Money
laundering (AML)" and combating the Financing of Terrorism (CFT) from time to time would
be applicable to mobile based banking services also.
Customer complaints/grievances arising out of mobile banking facility would be covered
under the Banking ombudsman scheme 2006( as amended up to May 2007).
Banks are permitted to offer this service to their customers subject to a daily cap of Rs
50,000/- per customer for all types of transactions summed together.
Prerequisite: Any Customer of Bank having Java enabled Mobile phone irrespective of the Mobile
Service Provider viz. Airtel, MTNL, Vodaphone, VSNL, Idea, Reliance etc., can avail this service.
Services offered through Oriental Banks Mobile Banking Services
Account Balance Enquiry
Mini Account Statement
Intra Bank Fund Transfer
Mobile to Mobile
Mobile to Account
Inter Bank Fund Transfer through NEFT
ATM Locator
Branch Locator
Chq Status Inquiry
Chq stop payment
customers can make payment to various types of merchants :Mobile top-up / DTH top-up
(Oxi Cash etc.) ,Insurance premium payment for selected companies,Online shopping,Over-thecounter payments , Fees payments to schools / colleges / universities ,Payment of Electricity Bills
and other Utility Bills payment,Travel & Ticketing for Railway (IRCTC ) and Air
Registration: The customers can avail OBCmPAY services by registering either by visiting the
Branch and submitting the form or by registering through ATM. Command is MOBNKRQ.
Customers can alternatively visit any ATM of Oriental Bank of Commerce and register themselves
using their debit card.
Immediate Payment Services (IMPS): NPCI (National Payments Corporation of India) has
launched the facility of IMPS (Immediate Payment services) for integrating Mobile Banking Services
being offered by various Banks through National Financial Switch(NFS) network.
This is 24x7 fund transfer facility for Inter Bank Fund transfer and credit to beneficiarys account
round the clock on all days
Customers not registered for Mobile Banking services can receive fund to their account through this
service by registering for SMS Alert application and retrieving MMID (Mobile Money Identifier)
by sending SMS MMID to the number 9223173923 Remitter.
Bank has launched another Mobile APP ORIENTAL SAATHI with following features
/Tabs have been provided in the App:1. Branch/ ATM Locator
2. Complaint / Suggestions
_________________________________________________________________________________
90

3.
4.
5.
6.
EMI Calculator
Interest Rates
Alerts
Contact Us
SMS Alerts
SMS alerts are mandatorily for all card based / Net Banking transactions
The Banks SMS Alert Services are capable of enabling only interested customers and for those
Alerts as selected by them. Any Customer of Bank having Mobile phone irrespective of the Mobile
Service Provider viz. Airtel, MTNL, Vodaphone, VSNL, Idea, Reliance etc., can avail this service.
These services are of two types i.e. Push Based Alerts and Pull Based Alerts:
Push Based Services: These Services facilitate automatic transmission of SMS to the customers
chosen mobile number for various transactions in his account and cover following: Credit/ Debit alerts for amounts specific to individual customers.
Cheque clearing intimation alerts
Weekly balance alerts to all/ specific accounts
Transactions happened through various delivery channels viz. Internet Banking, ATM etc.
Pull Based Services: These services enable the customer to initiate request from his mobile to a
designated number for availing various facilities, which are as below:o Account Balance for one/multiple accounts, if any
o Mini Statements
For availing the above Pull Based services the customer has to send an SMS with the following key
words followed by the account number to Mobile number 09915622622.
Key Word
Service
ACBAL
Account Balance
STM
Mini Statements
i.
The Customer has to bear the normal outgoing SMS charges as per the tariff applicable to
his mobile connection. However, initially no Bank Charges are being levied for these
Services. The customers having valid ATM card can register their mobile numbers from any
of the Banks ATMs by using following menus:
Other Requests Services for IT Products SMS Alert Registration.
Missed Call Banking The below mentioned services being offered through Missed call to a predefined number from customers registered Mobile number are also given:a) Know the Balance of last three transacted accounts on SMS. 08067205757
b) Mini Statement of last three transactions of recently transacted account on SMS. 08067205767
SMS Banking The services being offered through SMS to a pre-defined number from customers
registered Mobile number mentioned below are also incorporated in the App:a) Registration of E-mail Id by sending SMS to 09243101342
b) Balance Enquiry by SMS: ACBAL <Space> <14 digit account no.> to 9915622622.
c) Statement by SMS : STM <Space> <14 digit account no.> to 9915622622
d) Cheque Stop Facility : STOP <Space> <14 digit account no.> <space> <cheque_no.> to
9915622622
_________________________________________________________________________________
91
e) ATM Card Hotlisting : BLOCK <Space> <14 digit account no.><space><last 4 digits of card no.> to
9915622622
Process flow for enabling the customers forOBC SMS Alert Services: The command for
enabling SMS Alert is SMSRQ.
1. For new customers, the customer should have opted for SMS by ticking in the SMS Alert option
column in the account opening form O.F.-1B. For old customers, separate SMS Banking
Application form should be obtained.
2. Branch must ensure that the customer is fully authorised to make query or conduct transactions
on the accounts mentioned in application form. For this Mode Of Operation of the account
must be checked carefully.
3. Use SMSRQ Menu option of the Finacle, and enter the Mobile Number, Account number,
threshold limit for receiving alerts and other details of the Customer.
4. While keying in the Mobile Number please do not prefix any thing before the Mobile Number.
The system automatically prefixes91 after commiting of the record.
5. Press Y in front of various Options for enabling Customer for particular type of Alert.
6. To Commit the input, type C and press F4 key.
After committing the SMSRQ operation in FINACLE, the SMS Alerts Application shall automatically
start generating SMS for the type of transactions opted by the customer.
Circular No. HO/CS&P/7/2014-15/110 May 19 , 2014, All SMS alerts free except following security
alerts (charges, actual cost of alerts)
1.Instrument based or Cash transactions
2.Cheque book issue
3.Cheque presenting for clearing
4.Cheque bounce
These charges shall be levied by the system itself; therefore branches are not required to apply
these. However, branches shall ensure that charges, wherever applicable have been recovered. The
system shall calculate charges on monthly basis and will accumulate the same in the system for
recovery at quarter end; subject to the total SMS charges is >= `10 or on closure of account.
1
2
Name of Event
Frequency
Card Based Transactions Real Time
(ATM)
Instrument based or cash Real Time
transactions)
Remarks
Irrespective of any amount
Credit >=Rs. 10000.00 and Debit
>=Rs. 5000.00
Fortnightly Balances Other 2nd

&
4th
transactions
Sunday of the
month
4
5
Deposit Maturity
Loan EMI Notice
6
7
Minor to Major
Everyday
Aadhar Seeding Activation / Real time
Deactivation
Internet
Banking
: Real Time
Everyday
Monthly
Maintaining Balance of Rs. 25000.00

or above for SB & CA
Staff
A/c
get
the
Balance
confirmation
irrespective
of
balances.
All registered customers maintaining
Cash Credit / Overdraft accounts.
2 Days before maturity
2 days before the month end
Attaining 18 years of age
_________________________________________________________________________________
92

Beneficiary Addition/OTP
Internet Banking OTP
(One Time Password )
Mobile Banking
Cheque
Book
Request/Cheque
Presented/Returned
Welcome
message
on
account opening
CC/OD accounts becoming
SMA
Promotional Message
On
every
NEFT/RTGS
Transaction
Pull based services
DBT/DBTL
messages
Real Time
Real Time
Real Time
Everyday
Everyday
On Demand
Real time
Real Time
related Real Time
Term Deposit A/c for Real Time

amount
>=Rs.
10000000.00
Borrower /Promoter prior Real Time
to expiry of limit on
monthly
basis
for
submitting the complete
renewal papers
Outward for each transaction and

inward as peer limit set in Finacle for
every V\Credit/Debit entry
For availing various facilities which
includes
Account Balance for one/multiple
accounts, if any
Mini Statement
Stopping of Cheques
Blocking of ATM Cards
By sending the SMS from Registered
mobile no. to 9915622622 as under:
For
Account
Balance
ACBAL<SPACE><14 Digit Ac No>

For Mini Statement : STM<space><14
Digit A/c No>
For Stop Payment of cheques : STOP
<space><14 Digit A/c No ><SPACE>
<Cheque Number>
For Blocking ATM : Block <SPACE> 14
Digit A/c no<SPACE>last 4 digits of
card no.
Whenever
customers
receive
DBT/DBTL
related credit
intheir
account, sms is sent.
SMS alert for opening and transaction
is sent to customer with term deposit
of amount >=Rs.10000000
SMS alert is sent to the borrower /
promoter on the registered mobile
number prior to expiry of limit on
monthly basis sybmitting the complete
renewal papers starting from last 3
months i.e. on 9th , 10th & 11th month
Real Time Gross Settlement (RTGS)

RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to
another on a real time and on gross basis. This is the fastest possible money transfer system
_________________________________________________________________________________
93
through the banking channel. Settlement in real time means payment transaction is not subjected
to any waiting period. The transactions are settled as soon as they are processed. Gross
settlement means the transaction is settled on one to one basis without bunching with any other
transaction.
The customer has to just fill up the application form to take advantage of economical, instant and
secure transfer through RTGS available across all branches of the Bank. The remitting customer has
to furnish the following information to the bank for effecting a RTGS remittance:
1. Amount to be remitted
2. His account number which is to be debited
3. Name of the beneficiary bank
4. The IFSC code of the receiving branch
5. Name of the beneficiary customer
6. Account number of the beneficiary customer
7. Sender to receiver information, if any
RTGS is used for both customer transactions and Inter Bank Transactions. The Operating session
for RTGS Transactions at Branches is given hereunder:
Customer Transaction (R41) - (8.00 hrs to 16.15 hrs.)
Inter-Bank Transaction (R42) (8.00 hrs to 19.30 Hrs)
(Regular days including Saturdays, except Second and Fourth Saturdays of the Month)
This cut-off time is for the messages to reach at RBI end. Therefore branches should
maintain a cushion of at least 20 to 30 minutes to avoid any rejections in message
transmission.
If the transaction fails for any reason, the amount will be credited back to the account
from which the transaction was made( Through Nodal Branch Fort Mumbai ). All RTGS
transactions are irrevocable once the account is debited and the Bank executes
transaction. Any revocation, after the payment order is executed by the bank, shall not
be binding on the Bank in the RTGS system.
Transaction Amount: The RTGS system is primarily for large value transactions. The minimum
amount to be remitted through RTGS is Rs.2 lakh. There is no upper ceiling for RTGS transactions.
There is no limit on the number of transactions per day per Customer.
Charges: For Outgoing Transactions from Rs.2 to 5 lacs, Rs.25/- per transaction is levied and for
transaction above Rs. 5 Lacs, Rs.50/- per transaction is levied. Inward transactions are free.
National Electronic Fund Transfer (NEFT)
National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate
transfer of funds from any bank branch to any other bank branch. RBI intends that high value
transactions should be routed through RTGS and small amount transactions should be routed
through NEFT. NEFT is only for fund transfer on behalf of the customers. NEFT works on deferred
net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes
place at a particular point of time. All transactions are held up till that time. For example, NEFT
settlement takes place 6 times a day during the week days and 3 times during Saturdays. Any
transaction initiated after a designated settlement time would have to wait till the next designated
settlement time.
The Customer should provide all the details as in the case of RTGS for conducting a NEFT
transaction. The beneficiary gets the credit on the same Day or the next Day depending on the time
of settlement. If the transaction fails for any reason, the account debited will be credited back. The
_________________________________________________________________________________
94
thresholed limit is 100000/- for NEFT. In case of any query, the branch can contact the dedicated
NEFT Centre set up at Service Branch, Mumbai through email neft@obc.co.in.
Batch Timings:
Starting from 8:00AM to 18.45 PM on all week days (Regular days including Saturdays, except
Second and Fourth Saturdays of the Month)
The messages sent before the above batch timings shall be included in the respective settlements
otherwise they shall be included in the next batch/day.
Note:
RTGS and NEFT is entered in Finacle using the Command HEPS. Detailed guidelines and
accounting Procedure is available on the Banks eCircular
Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely
identify the bank-branches in India. This is 11 digit code with first 4 characters representing the
banks code, the next character reserved as control character (Presently 0 appears in the fifth
position) and remaining 6 characters to identify the branch.
our circular No. HO/DIT/35/2008-2009/586 dated 09.02.2009 wherein it was informed that all
offices to ensure that all payments made by Bank to vendors, service providers and all external
agencies viz. Tax authority / Utility Payments etc. are invariably made through electronic modes.
Electronic Clearing System (ECS)
It is a mode of electronic funds transfer from one bank account to another bank account using the
services of a Clearing House. This is normally for bulk transfers from one account to many accounts
or vice-versa. This can be used both for making payments like distribution of dividend, interest,
salary, pension, etc. by institutions or for collection of amounts for purposes such as payments to
utility companies like telephone, electricity, or charges such as house tax, water tax, etc or for loan
installments of financial institutions/banks or regular investments of persons. It eliminates delays
due to postal / clearing as the amount gets directly credited to the respective customers account.
There are two types of ECS - ECS (Credit) and ECS (Debit).
ECS (Credit) is used for affording credit to a large number of beneficiaries by raising a single debit
to an account, such as dividend, interest or salary payment.
ECS (Debit) is used for raising debits to a number of accounts of consumers/ account holders for
crediting a particular institution.
Customers are required to fill up the prescribed form (No. E-1) indicating choices of periodicity of
such payment and expected number of credit and aggregate amount. Detailed procedure is given in
Clearing Operations Chapter.
OBC eTaxes
The Bank is providing this facility through which all types of direct taxes can be deposited by the
customers online through the net banking services from the comfort of their office or home. The
challan will be generated online and the same should be preserved for future reference and
records.
Procedure for e-payment:
1. To pay taxes online the taxpayer will select the relevant challan i.e. ITNS 280, ITNS 281,
ITNS 282 OR ITNS 283, as applicable.
2. Enter its PAN/TAN as applicable. There will be an online check on the validity of the
PAN/TAN entered.
3. If PAN/TAN is valid the taxpayer will be allowed to fill up other challan details like accounting
head under which payment is made, name & address of TAN and also select the Bank
through which payment is to be made, etc.
4. On submission of data entered a confirmation screen will be displayed. If the taxpayer
confirms the data entered in the challan, it will be directed to the net banking site of the
bank.
_________________________________________________________________________________
95
5. The tax payer will login to the net-banking site with the user-id/password provided by the
bank for net-banking purpose and enter payment details at the Bank site.
6. On successful payment a challan counterfoil will be displayed containing CIN, payment
details and Bank name through which e-payment has been made.
Point of Sales Terminal (POS)
Point of Sales (POS) terminals are deployed/installed at Merchant Establishments (ME) i.e. shops,
petrol pumps etc. For making any payment debit card is swapped on these terminals and the
amount is entered, the transaction is processed and the customers primary account linked with the
Proton card is debited online.
Our Bank has a tie up with the vendor M/s Atos Worldline India Pvt. Ltd. We have VISA
authorization and YES Bank has Master Card authorisation. So VISA transaction will be
authorized through our server and MasterCard will be authorised through YES Bank.
II. Types of charges levied on Merchant by Bank (Income)
a) MSF (Merchant Service Fee) - A fee as a percentage of transaction is collected from the
Merchant on per transaction basis. The MSF for debit card is mandated by RBI at
0.75% for transaction up to Rs2000/- and 1% for transaction above Rs2000/-.
Further, the MSF on credit card levied by our bank ranges from 1.40% to 1.75% as floor
rate. (Note: In case of subvention the discounted MSF is offered on Credit card transaction)
b) TPF (Transaction Processing Fee) The TPF is charges to the Merchants wherein the
monthly volume of the transaction is below Rs1.00 Lac.
c) GPRS Rental - The GPRS terminal rental is fixed at Rs1000/- per month apart from any
other fee or charges as applicable.
d) OTI (One Time Installation Fee) The OTI is levied at the time of installation of the
terminal. It is Rs1200/- per terminal for merchant with existing POS from other banks while
Rs2500/- for new merchants for fist time installation of machine.
e) Paper Roll charges: The paper rolls are proposed to be charged at Rs21/- per roll or
Rs0.65/- per transaction.
Revenue on POS Machine (Approx.)
1. Card Owner Bank
: 1.1 %
2. Authorizer Charges (VISA/MASTER)
: 4-8 Basis Point (0.04 -0.08 %)
3. Intermediate Bank (OBC/YES)
: 4 Basis Point (0.04 %)
4. Service Provider (M/s Atos Worldline)
: 4-6 Basis Points
For VISA Authorisations
If our Banks card used then we will get 1.1 % + 0.04 % = 1.14 %
If other Banks card used then our Bank will get 0.04 %
For Master Card Authorizations
Our Bank Card wont have Master Authorization and authorization is done through YES Bank Ltd.
So our bank wont get any thing.
ADVANTAGE
1.
Cash handling is better with POS.
2.
Online transaction and direct Credit to the account.
3.
Customer willing to pay through Card and if the merchant dont have the facility then
its a discouragement for customer.
4.
Encouragement for customers to spend more as no physical cash is involved.
Western Union Money Transfer
_________________________________________________________________________________
96
Our Bank has a tie up with Western Union Money Transfer through M/s Weizmann Forex Ltd.
(WFL). Western Union is a safe, reliable, legal and convenient way of transferring and receiving
money world wide (in India we can only receive inward remittance, as RBI does not allow
outward remittance). It is a legal method of receiving money in India as per RBI guidelines.
The Western Union Money Transfer system is a Net-based system, which provides on line
information about any money transfer affected from overseas location. The beneficiary can get
payment of the remittance after establishing the identity and other formalities from any of the
outlets of Western Union. Therefore, the transaction flow would depend upon the service offered by
the branch under the arrangement. The relevant stationery for handling remittances transactions
and other publicity material shall be provided at the designated branches by WFL. Weizman 10481100136020
Online Tax Accounting System (OLTAS): OLTAS is a service provided by the bank for
acceptance of Income Tax and other direct taxes on behalf of Government. The customers
including Corporate, Individuals, Proprietorship concerns, Partnership firms, Trusts, Club, Society,
etc. can pay their tax liability through banks OLTAS window available through 145 select branches
across the country.
WHITE LABEL ATMs INTRODUCTION
What is white label ATMs?
White Label ATMs - or WLAs are ATMs which are set up and managed by private
operators, in support with Banks
The bank provides support only for cash management and settlement activities, in addition
to partnering for co-branding & promotions
Are WLAs different from Bank ATMs
No, customer experience at WLAs are exactly similar to Bank ATMs all rules applicable for Bank
ATMs are also applicable for WLAs everywhere
What are WLAs advantages?
WLAs are established and managed exclusively by private operators within the country
These operators make the necessary investments to set up the WLA ATMs and receive a return
based on transactions and other fees such as advertising
As a result, Banks and Financial institutions are freed from the capital investments required to set
up much needed ATM infrastructure across the country
WLA Operators authorized by RBI
1.Tata Communications Payments solutions Limited, Mumbai
2. Prizm Payments Services Pvt. Ltd., Mumbai
3. Muthoot Finance Limited, Kochi
4. Vakrangee Limited, Mumbai
5. BTI Payments Pvt. Ltd., Bangalore
6. Srei Infrastructure Finance Limited, Kolkatta
7. Riddisiddhi Bullions Limited, Mumbai
LAUNCH OF DBTL (DIRECT BENEFIT TRANSFER FOR LPG) SERVICES
Presently Direct Benefit Transfer for LPG consumers is implemented through Aadhar seeding in
Bank accounts and onward registration of Aadhar numbers with Consumer numbers at OMC portal.
Now, National Payments Corporation of India (NPCI) has implemented Direct Benefit transfer for
LPG for seeding of LPG consumer ID in Bank accounts directly.
A meeting was held in the Prime Ministers office on 22.10.2014 on issues relating to DBTL. It has
been decided as under:
_________________________________________________________________________________
97
Multiple approaches will be used for seeding LPG databases with bank accounts and Aadhaar
numbers. Oil Marketing Companies (OMCs) will collect Aadhaar numbers and Bank account details
at LPG distributors and through drop boxes at other locations. Bankers could also use the Pradhan
Mantri Jan Dhan Yojana methodology and data collected to assist in the seeding process.
Two modes of seeding of bank accounts in LPG database are available in this scheme:
(a) Bank accounts details captured by OMCs (Oil Marketing Companies) and bank account
information (account number + IFSC + name of account holder) will be sent to banks electronically
via NPCI and banks will confirm the veracity of the information as per their records. Thereafter
OMCs can seed that bank account information in the LPG database. (Option 1)
(b) LPG consumer can approach Bank directly. LPG consumer ID will be captured by bank at the
branches against the bank account and the pair of LPG consumer ID details and bank account
information will be then electronically sent back to OMCs by bank.(Option 2)
FINACLE MENU OPTION :
Enter menu DBTLE after login into finacle for entry & DBTLV for verification
CTS : Cheque Truncation System : Under this system of Clearing
Cheque Truncation System (CTS) is a image based Clearing System (ICS), started by RBI in 2008,
for faster clearing of cheques. In CTS cheque images and Magnetic Ink Character Recognition
(MICR) data are captured at the collecting bank branch and transmitted electronically. Truncation
means, stopping the flow of the physical cheques issued by a drawer to the drawee branch.
Cheque truncation is the conversion of a physical cheque into a substitute electronic form for
transmission to the paying bank. Cheque truncation eliminates cumbersome physical presentation
of the cheque and saves time and processing costs.
In CTS, operations are divided into 3 grids i.e. Northern, Western & Southern Grid. In CTS local
clearing is abandoned and grid level authentication of the instruments is taking place.
Salient Features of the CTS Instrument :
1 . Bank/Branch Address along with IFSC code printed on the top of the cheque.
2. Standardized date Format.
3. Void Pantograph is embossed on left hand side of the cheque leaf.
4. Printer name along with printing CTS 2010
5. Rupee symbol ` instead of bilingual format.
6. Please sign above is mentioned on cheque leaf on the right hand side bottom.
In CTS it is the responsibility of the Collecting Banker to check the authenticity of the
instrument, as the same is stored at the collecting banker End.
It is also the responsibility of the collecting banker to verify the instrument under the UV
LAMP.
No Cutting is allowed in the instrument except the date, which needs to be re- authenticated
by full signature.
Signature at the instrument needs to be placed on the proper defined place i.e. right bottom
corner of the instrument.
NACH : National Automated Clearing House
National Payments Corporation of India (NPCI) has implemented National Automated Clearing
House (NACH) for Banks, Financial Institutions, Corporates and Government a web based solution
to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in
nature. NACH System can be used for making bulk transactions towards distribution of subsidies,
dividends, interest, salary, pension etc. and also for bulk transactions towards collection of
_________________________________________________________________________________
98
payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance
premium etc
National Automated Clearing House (NACH) is a centralised system, launched with an aim to
consolidate multiple ECS systems running across the country and provides a framework for the
harmonization of standard & practices and removes local barriers/inhibitors. NACH system will
provide a national footprint and is expected to cover the entire core banking enabled bank branches
spread across the geography of the country irrespective of the location of the bank branch
With the implementation of NACH system, NPCI intends to provide a single set of rules (operating
and business), open standards and best industry practices for electronic transactions which are
common across all the Participants, Service Providers and Users etc. NACH system also supports
Financial Inclusion measures initiated by Government, Government Agencies and Banks by
providing support to Aadhaar based transactions.
The NACH system facilitates the member banks to design their own products and also addresses
specific needs of the banks & corporates including a refined Mandate Management System (MMS)
and an online Dispute Management System (DMS) coupled with strong information exchange and
customised MIS capabilities.
The NACH system provides a robust, secure and scalable platform to the participants with both
transaction and file based transaction processing capabilities. It has best in class security features,
cost efficiency & payment performance (STP) coupled with multi-level data validation facility
accessible to all participants across the country
_________________________________________________________________________________
99
RECOVERY / NPA NORMS

Interest and or installments of principal remain overdue for a period of more than 90 days in
respect of a term loan.
The account remains out of order for a period of more than 90 days in respect of overdraft/cash
credit
The bill remains overdue for a period of more than 90 days in case of bill purchased and
discounted
Interest and /or installment of principal remains overdue for two harvest seasons but for a period
not exceeding two half year in the case of an advance granted for agriculture purpose, and
w.e.f.30.09.04 following further amendments issued by the Apex Bank
a. A loan granted for short duration crops will be treated as NPA, if the installment of principal or
interest thereon remains overdue for two crops seasons.
b. The loan granted for long duration crops will be treated as NPA, if the installment of principal
or interest thereon remains overdue for one crop season.
(Crop season for each crop would be determined by the State Level Bankers Committee in
each state)
Any amount to be received remains overdue for a period of more than 90 days in respect of other
accounts.
RBI to move over to charging of interest at monthly rest , w.e.f. 01.04.02
NPA CATEGORY
Sub standard assets
Doubtful assets
Loss assets
REVISED NORMS w.e.f. 31.03.05

A sub standard asset would be one, which has remained
NPA for a period less than or equal to 12 months
If it exceeds a sub standard category for more than 12
months
No security in the account and as identified by bank/
internal/ external auditors or RBI as loss assets
If realizable value of the security is less than 50% of what valued at the time of sanction or last
inspection, such NPA may be straightaway classified under doubtful category
If realizable value of the security is less than 10% of present o/s, such NPA may be straightaway
classified under loss category
Our bank has fixed Rs50 lakhs and above accounts as high value accounts
All the facilities granted by a bank to a borrower will have to be treated as NPA and not the
particular facility or part thereof which has become irregular.
The account which are running regular and are classified as standard shall not be categorized NPA
category even if any of the directors/partners are common in other accounts which have been
classified as NPA
Restructured/Reschedule accounts upgraded after one year subject to satisfactory performance
during the period.
NPA accounts shall be immediately upgraded on payment of irregular portion.
_________________________________________________________________________________
100

PROVISIONING NORMS:
Rates of Provisioning for Non-Performing Assets and
Restructured Advances Category of Advances
Existing
Rate
Revised
Rate
(%)
(%)
Secured Exposures
10
15
Unsecured Exposures
20
25
Unsecured Exposures in respect of Infrastructure loan accounts

where certain safeguards such as escrow accounts are available.
Doubtful Advances Unsecured Portion:
Doubtful Advances Secured Portion:
15
20
100
100
For Doubtful upto 1 year
20
25
For Doubtful > 1 year and upto 3 years
30
40
100
100
0.25 to 1.00
(depending
upon the
category of
advance)
100
100
0.25 to 1.00
(depending
upon the
category of
advance)
Sub- standard Advances:
For Doubtful > 3 years

Loss Advances:
Restructured accounts classified as standard advances:
in the first two years from the date of restructuring ; and
in cases of moratorium on payment of interest/principal after
restructuring period covering moratorium and two years
thereafter.
Restructured accounts earlier classified as NPA and later upgraded
to standard category
in the first year from the date of upgradation
Valuation of security for provisioning purpose: our Bank has decided to get the securities
verified/ valuation obtained once in 2.5 years as per RMD circular No. HO/RMD/46/201415/507 dated 19.09.2014
EARLY RECOGNITION OF STRESSED ASSETS
In order to identify incipient stress in the borrowal account before it turns into Non Performing
Asset (NPA), Banks are henceforth required to have three sub-categories under the SMA category
as given in the table below:
SMA SUB-CATEGORIES BASIS FOR CLASSIFICATION
SMA-0
Principal or interest payment not overdue for more than 30
days but account showing signs of incipient stress
SMA-1
Principal or interest payment overdue between 31 -60 days
SMA-2
Principal or interest payment overdue between 61-90 days
_________________________________________________________________________________
101
In this aspect, Bank has laid down list of signals of financial distress/ weakening in borrowal
accounts that need to be monitored closely for recognition of Financial Distress in the borrowal
accounts
Special Compromise settlement Schemes :
1.
SPECIAL ONE TIME SETTLEMENT SCHEME (OTS) FOR SETTLEMENT IN ELIGIBLE NPA ACCOUNTS
WITH O/S UPTO Rs.10.00 Lac
Eligibility:The Approved Scheme shall cover all NPA accounts in doubtful or loss category (whether nonsuit filed, suit filed or decreed accounts) with Principal outstanding upto Rs. 10.00 Lac (including
amount technically written off, ECGC/ DICGC/CGFT claim received) as on 31.12.2014 except those
cases where the settlement had been approved and the same was being honoured. Scheme valid
till 31.03.2016.
2. Settlement Scheme for Individual NPA Accounts under Direct Agriculture category :
Eligibility : All the NPA accounts where loan was given to individuals (other than Corporates,
Institutions, Partnership firms and trusts) which are under Direct Agriculture Category.
Minimum indicative settlement amount : amount of settlement will not be less than 85% of the
Principal amount.
3. Scheme for Recovery and Full Settlement in Small Size NPA Borrowal accounts
upto Rs.1.00 lac.
The main feature of this scheme is to settle the small sized NPA accounts upto Rs.1.00 lac which
were NPA on 31.03.2014 where there is no realixalbe security available to fall back upon. The
account is to be settled at whatever maximum amount. Scheme valid till 31.03.2016.
Calculation of NPVRV of charged primary/collateral securities :
1. Considering the difficulty in realisation of dues by sale of agricultural security, the number of
discounting years be taken upto 5 years where charged security is agricultural land
2. Additional discount of 5% in NPVRV may be allowed if the owner (borrower and/ or
guarantor) of the charged property/ies dies before approval of the settlement of the account
3. During the settlement of account/s, if the borrower produces the documentary evidence
of statutory dues, the amount of statutory dues be subtracted for arriving at NPVRV
When the settlement in considered within one year from date of last failed auction then NPVRV
for property/ies shall be 85% of the last reserve price of the charged securities (failed auction).
However, valuation should not be more than one year old. Further, if the settlement is
considered after one year of date of failed auction, fresh valuation be obtained and NPVRV is
to be calculated in normal way i.e by discounting realisable value based on the expected
realization period
_________________________________________________________________________________
102
PRIORITY SECTOR ADVANCES

Priority Sector Definition
The revised guidelines are operational with effect from 23.04.2015. The priority sector loans
sanctioned under the guidelines issued prior to this date will continue to be classified under
priority sector till repayment/maturity/renewal.
The salient features of the guidelines are as under:(i) Categories of the priority sector: Medium Enterprises, Social Infrastructure and Renewable
Energy will form part of priority sector, in addition to the existing categories.
(ii) Agriculture: The distinction between direct and indirect agriculture is dispensed with.
(iii) Small and Marginal Farmers: A target of 8 percent of ANBC or Credit Equivalent Amount of
Off-Balance Sheet Exposure, whichever is higher, has been prescribed for Small and Marginal
Farmers within agriculture, to be achieved in a phased manner i.e., 7 percent by March 2016
and 8 percent by March 2017.
(iv) Micro Enterprises: A target of 7.5 percent of ANBC or Credit Equivalent Amount of OffBalance Sheet Exposure, whichever is higher, has been prescribed for Micro Enterprises, to be
achieved in a phased manner i.e. 7 percent by March 2016 and 7.5 percent by March 2017.
(v) There is no change in the target of 10 percent of ANBC or Credit Equivalent Amount of OffBalance Sheet Exposure, whichever is higher, for Weaker Sections.
(vi) Target for Foreign Banks: Foreign Banks with 20 branches and above already have priority
sector targets and sub-targets for Agriculture and Weaker Sections, which are to be achieved by
March 31, 2018 as per the action plans submitted by them and approved by RBI. The subtargets for Small and Marginal Farmers and Micro Enterprises would be made applicable post
2018 after a review in 2017. Foreign banks with less than 20 branches will move to Total Priority
Sector Target of 40 percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet
Exposure, whichever is higher, on par with other banks by 2019-20, and the sub-targets for
these banks, if to be made applicable post 2020, would be decided in due course.
(vii) Bank loans to food and agro processing units will form part of Agriculture.
(viii) Export credit: Export credit upto 32 percent of ANBC or Credit Equivalent Amount of OffBalance Sheet Exposure, whichever is higher, will be eligible as part of priority sector for foreign
banks with less than 20 branches. For other banks, the incremental export credit over
corresponding date of the preceding year will be reckoned upto 2 percent of ANBC or Credit
Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.
(ix) The loan limits for housing loans and MFI loans qualifying under priority sector have been
revised.
(x) The priority sector non-achievement will be assessed on quarterly average basis at the end
of the respective year from 2016-17 onwards, instead of annual basis as at present.
_________________________________________________________________________________
103
Priority Sector Targets

CATEGORY
DOMESTIC SCB AND FOREIGN

BANK WITH 20 OR MORE
BRANCHES
FOREIGN BANK WITH LESS

THAN 20 BRANCHES
TOTAL PS
SCB -40 % (MAR-16 ONWARD)

FB-40% (APR-13 TOMAR-18)
40% IN A PHASED MANNER

(APR-13 TOMAR-18)
AGRI
18 % (BOTH FOR SCB AND FB WITH

20 OR MORE BRANCHES)
REMARKS
OF ANBC OR CEO-BSI WHICHEVER

HIGHER
OF ANBC OR CEO-BSI WHICHEVER

HIGHER
OF WHICH SMF
NOT APPLICABLE
7% BY MARCH 16
FB WITH 20 OR MORE BRANCHES HAVE

TO ACHIEVE THESE TARGETS IN 5 YEARS
(2013-18)
8% BY MARCH 17
MICRO
ENTP
DOMESTIC BANKS-7% BY MAR-16

AND 7.5% BY MAR-17
NOT APPLICABLE
FOR FB WITH 20 OR MORE
BRANCHES TARGETS LATER ON
WS
10 %
NA
FB IN PHASED MANNER
Description of the eligible categories under priority sector

CATEGORY
OF ADVANCE
ADV. ELIGIBLE FOR P.S CATEGORY
CONDITION
EDUCATION
LOANS UPTO 10 LACS
IRRESPECTIVE OF SANCTIONED LIMIT
HOUSING LOANS
METROPOLITAN CENTERS (WITH POPULATION OF TEN LAC

AND ABOVE) LOANS UPTO 28 LACS (PER FAMILY)
(COST OF DWELLING SHOULD NOT EXCEED

RS.35 LACS)
OTHER CENTERS -LOANS UPTO 20 LACS
(COST OF DWELLING SHOULD NOT EXCEED

RS.25 LACS)
HL (REPAIR &
RENOVATION)
METRO CENTERS -LOANS UPTO 5 LACS

OTHER CENTERS -LOANS UPTO 2 LACS
BANK LOANS TO ANY GOVERNMENTAL AGENCY FOR
CONSTRUCTION OF DWELLING UNITS OR FOR SLUM
CLEARANCE AND REHABILITATION OF SLUM DWELLERS
SUBJECT TO A CEILING OF 10 LAKH PER DWELLING UNIT.
THE LOANS SANCTIONED BY BANKS FOR HOUSING PROJECTS

EXCLUSIVELY FOR THE PURPOSE OF CONSTRUCTION OF
HOUSES FOR ECONOMICALLY WEAKER SECTIONS AND LOW
INCOME GROUPS, THE TOTAL COST OF WHICH DOES NOT
_________________________________________________________________________________
104
EXCEED 10 LAKH PER DWELLING UNIT. FOR THE PURPOSE

OF IDENTIFYING THE ECONOMICALLY WEAKER SECTIONS AND
LOW INCOME GROUPS, THE FAMILY INCOME LIMIT OF 2
LAKH PER ANNUM, IRRESPECTIVE OF THE LOCATION, IS
PRESCRIBED
Bank loans to Housing Finance Companies (HFCs),

approved by NHB for their refinance, for on-lending
for
the
purpose
of
purchase/construction/reconstruction of individual
dwelling units or for slum clearance and
rehabilitation of slum dwellers, subject to an
aggregate loan limit of 10 lakh per borrower.
THE ELIGIBILITY UNDER PRIORITY SECTOR LOANS TO HFCS IS
RESTRICTED TO FIVE PERCENT OF THE INDIVIDUAL BANKS
TOTAL PRIORITY SECTOR LENDING, ON AN ONGOING BASIS.
THE MATURITY OF BANK LOANS SHOULD BE CO-TERMINUS
WITH AVERAGE MATURITY OF LOANS EXTENDED BY HFCS.
BANKS SHOULD MAINTAIN NECESSARY BORROWER-WISE
DETAILS OF THE UNDERLYING PORTFOLIO.
Outstanding deposits with NHB on account of
priority sector shortfall
SOCIAL
INFRASTRUCTURE
BANK LOANS UP TO A LIMIT OF RS. 5 CRORE PER BORROWER

FOR BUILDING SOCIAL INFRASTRUCTURE FOR ACTIVITIES
SCHOOLS, HEALTH CARE FACILITIES,

DRINKING WATER FACILITIES & SANITATION
FACILITIES
RENEWABLE
ENERGY
BANK LOANS UP TO A LIMIT OF RS. 15 CRORE TO

BORROWERS.
FOR PURPOSES LIKE SOLAR BASED POWER

GENERATORS, BIOMASS BASED POWER
GENERATORS, WIND MILLS, MICRO-HYDEL
PLANTS AND FOR NON-CONVENTIONAL
ENERGY BASED PUBLIC UTILITIES VIZ. STREET
LIGHTING SYSTEMS, AND REMOTE VILLAGE
ELECTRIFICATION
FOR INDIVIDUAL HOUSEHOLDS, THE LOAN LIMIT WILL BE RS.

10 LAKH PER BORROWER
Category
Norms
Remarks
Others
Loans upto 50000 to Individuals
Income <= 1 lacs in Rural Areas

Income<=1.60 lacs in Other Areas
Loans to distressed persons upto 1.00 lacs
To prepay their debt to noninstitutional lenders
OD under PMJDY upto Rs. 5000
Income <= 1 lacs in Rural Areas

Income<=1.60 lacs in Other Areas
Loans to State SC/ST Corporations *
for the specific purpose of

purchase and supply of inputs
and/or the marketing of the
outputs of the beneficiaries of
_________________________________________________________________________________
105
.
these organizations
Loans to Weaker Sections *
ENTP.
MICRO
SMALL
MEDIUM
Loans to specified persons/

entities under priority sector shall
form part of WS
MANUFACTURING
SERVICE
Original Investment
in Plant &
Machinery
Classification of
Adv.
<= 25 lacs
Bank loan to <= 10 lacs

MSE
(Mfg)
Shall form part
of
PS > 10 lacs to 2 crore
irrespective of
limit
> 2 crore to 5 crore
> 25 lacs to 5 crore

> 5 crore to 10
crore
Original Investment in
equipment
Classification of Adv.
Bank loan upto 5 crore

per unit to Micro &
Small Enterprises shall
be part of PS lending
Bank Loan upto 10
crore per unit to Medium
Enterprises shall be part
of PS Lending.
Weaker Sections under priority Sector:

Small and marginal farmers;
Artisans, village and cottage industries where individual credit limits do not exceedRs.Rs.50,000;
Beneficiaries of Swarnjayanti Gram Swarozgar Yojana (SGSY), now National Rural Livelihood
Mission (NRLM);
Scheduled Castes and Scheduled Tribes;
Beneficiaries of Differential Rate of Interest (DRI) scheme;
Beneficiaries under Swarna Jayanti Shahari Rozgar Yojana (SJSRY);
Beneficiaries under the Scheme for Rehabilitation of Manual Scavengers (SRMS);
Loans to Self Help Groups;
Loans to distressed farmers indebted to non-institutional lenders;
Loans to distressed persons other than farmers not exceeding RsRs.50,000 per borrower to prepay
their debt to non-institutional lenders;
Loans to individual women beneficiaries upto Rs. 50,000 per borrower;
Loans sanctioned as above to persons from minority communities as may be notified by
Government of India from time to time.
_________________________________________________________________________________
106
Micro Small and Manufacturing Enterprises

Pradhanmantri Mudra Yojna
Salient Features
Loans to all Non-farm enterprises in Manufacturing, Trading and Services (Mudra) uto 10
lacs granted on or after 08.04.2015 shall be covered under PMMY
The Loan shall be named as 'Shishu', 'Kishor' and 'Tarun'.

Shishu : loans upto Rs.50,000/Kishor : loans > Rs.50,000/- and upto Rs.5.00 lakh
Tarun : loans > Rs.5.00 lakh and upto Rs.10 lakh
Loan Application Form-As per Annexure A (IBA format) refer to circular number RDPS 405
dated 25.08.2015
Loan Application, Process Note or Loans upto `50,000/- under MSE Sector to be Covered
under PMMY:- One pager Annexure A as loan application form, Annexure B as Process
Note. For loans upto 50000/- under PMMY no internal rating is required (ref Circular No.
HO:RD & PS:48:2015-16:453 dated 11.09.2015)
MUDRA Card i.e RuPay Debit Card
For Composite Loans upto Rs.1.00 Lakh:- where OD is max. 20% (i.e. Rs. 20000)
Only to literate Individuals and Proprietorship firms and not to illerates and to Joint Borrowers
Term Loan - TL701 (TL GENERAL-EI)
Over draft - OD505 (OD MUDRA CARD SCHEME in OD505 scheme )
Mudra card is personalized Debit card which can be used at ATM/POS/E-commerce
Following activities in Retail / other segments shall also be covered under PMMY
Oriental Business Loan Scheme (OBLS),

Oriental Mortgage Loan Scheme (OMLS),
Loan to Other Professionals,
Financing against Autos / Taxis,
Loan to Traders,
Loan to Women,
Loans under MSME etc. for assisting entrepreneurs.
OD upto Rs. 5000 under PMJDY
The rate of interest, application of interest, security, asset classification, charges, fees etc. shall
be as per general guidelines/scheme in vogue.
For the loan covered under CGTMSE, the rate of interest shall be Base rate.
OBC MSME PLUS

(It will replace the existing Scheme Financing MID Corporate Scheme HO/CAD 187
30.06.12 amended HO/CAD 798 dated 06.01.2015
Eligible :-Prop, Part., LL P, Pvt/Pub Ltd Companies
Existing as well as new customers
Internal Credit Rating
_________________________________________________________________________________
107
Upto
crore
7.5
>7.5 Cr. To 50
crore
Existing Customer
OBC 4
OBC 5
For last 2 years
New Customer
GF 4
GF 4
Earlier OBC 4 for new

and OBC 3 for existing
customers)
Credit Report from any of the CIBIL, EQUIFAX, EXPERIAN etc should be within benchmark.
Quantum of exposure upto 50 crore.
Appraisal/ Assessment- As per loan policy of the Bank for WC and TL
TEV study as applicable.
Mid Corporate- Limits 5 Crore to 50 crore
Large Corporate:- advances >50 Crore
Acceptable Financial Ratios:CURRENT RATIO
1.17:1 (UPTO 5 CRORE)

1.25:1 (ABOVE 5 CRORE)
DEBT EQUITY RATIO/ ADJUSTED DER
UPTO 3:1
LEVERAGE RATIO/ ADJUSTED LEVERAGE RATIO
UPTO 4:1
AVERAGE DSCR
MINIMUM 1.50:1 IN CASE OF TL AND REPAYMENT

PERIOD MAX. 7 YEARS
Note Actual Tengible Net Worth-Outstanding investment made/ loans to sister-allied

companies to be deducted from Tengible Net Worth to arrive at ATNW.
The Adjusted DE ratio and Adjusted Leverage Ratio may be calculated by considering
unsecured loans from friends/ relatives/directors/related parties as quasi capital after netting
with investments made in group/sister concerns
Primary security-As per Banks loan policy norms
Collateral Security-Atleast 50% coverage of (FB+NFB). RV of L&B be considered as
collateral or liquid security-Bank Deposits/Govt Securities. The extent of cash margin (in
case of non fund based limits) over and above 10%, shall be considered for computation of
collateral.
Conduct of account:-Account should be standard regular for past 2 years and should not
have been restructured in the past 2 years.
Profitability:-Existing units should have a Post Tax Profit for the immediate 2 preceding
years.
Margin:-As per Banks policy
Process Fee / Upfront fee- Entry level 50% concession, 2nd year 25% concession and 3rd
year onward as per Banks schedule.
Discretionary Power- As per P. Chart circulated by RMD from time to time.
Guarantee and LC Commission:-25% concession if Internal Rating >= OBC 4 or External
Rating >= Top 3 Ratings.
_________________________________________________________________________________
108
Rate of Interest:-linked to collateral coverage (Fresh and existing)

Collateral coverage Ratio
<= 7.5 Crore
> 7.5 Crore
50% to 75%
BR+2.25
BR+2.50
>75% to 100%
BR+2.00
BR+2.25
>100%
BR+1.75
BR+2.00
Special Status borrowers already covered under Mid-Corporate schemes may be

continued with following ROI
Collateral coverage
Ratio
1.00 Cr to <= 10
Crore
> 10 Crore
25% to 50%
BR+2.75
BR+3.00
>50% to 75%
BR+2.50
BR+2.75
>75% to 100%
BR+2.00
BR+2.25
>100%
BR+1.75
BR+2.00
OBC Doctor Plus..

Scheme for Financing Doctor/Paramedical Services
Purpose-To set up/Expension new Hospitals/ Path labs/Nursing Homes. To purchase of
office furniture/ equipments/ ambulance etc.
Eligible-All entities engaged in providing medical/pathological diagnostic services, annual
turnover upto Rs. 150 crore. Promotor should have 2 years experience and have one of the
degrees MBBS/BDS(dentist)/BHMS
Internal Credit Risk Rating:-(for existing customer)-Min OBC 4 for new customers Min. GF 4
Credit Report from any of the CIBIL, EQUIFAX, EXPERIAN etc should be within benchmark.
To deal exclusively with our Bank else concessions would be available.
AMOUNT OF LOAN
AREA
AMOUNT IN CASE OF HOSPITALS

(AMT IN CRORE)
AMOUNT IN CASE OF CLINICS (AMT IN

CRORE)
RURAL
1.00
0.50
SEMI-URBAN/ URBAN
10.00
1.00
METRO
15.00
Type of facilities
(a) Term Loan-assessment of TL shall be as per policy of the Bank. In case of construction of
building ceiling limit is max 50% centre wise.
(b) WC Limit is upto 10% of annual sale or gross income, subject to 10% of ceiling limit of centre in
case of borrower requiring both TL & WC, in case only WC limit -20% of ceiling limit centre
_________________________________________________________________________________
109
Acceptable Financial Ratio:TYPE OF RATIO
PARAMETER
CURRENT RATIO
1.17:1 (FOR LIMITS UPTO 5 CRORE)

1.25:1 (FOR LIMITS >5 CRORE)
DEBT EQUITY RATIO/ ADJUSTED DE RATIO
UPTO 3:1
LEVERAGE RATIO/ ADJUSTED LEVERAGE

RATIO
UPTO 4:1
AVERAGE DSCR RATIO
MINIMUM 1:25
Margin:- <>25% for acquiring premises/ expension/renovation/modernisation of existing premises<>

15% for on machinery/ vehicle (ambulance-other vehicle)/ equipments etc.
Rate of interest:SECURITY COVERAGE
RATE OF INTERST
>50% AND UPTO 75%
BR+2.50 %
>75% TO 100%
BR+2.00 %
> 100%
BR+1.50 %
Security Coverage:i. Loans upto 10 lacs NIL

ii. >10 lacs to 100 lacs:iii. > 1.00 crore:-
(To be covered under CGTMSE)

Minimum 50% of security coverage
100% coverage (including collateral)
Guarantee-PG of Promoters/Directors/Trustees etc. option of CGTMSE may be offered to the

borrower where only primary security is provided.
Discretionary Powers-as per delegated powers (RMD-HO)
Deviation Authority:-HLCC-ED
External Rating-for limits 5 crore and above, within 3 months of sanction else penal RoI shall be
charged
Repayment Period:-Max. 10 years including max. moratorium of 24 months. In case of clinics/
Nursing Home/ Medical Centre higher moratorium of 36 months may be allowed construction to
start within 6 months & should be completed within moratorium period.
Process Fee- 50% concession on applicable Process Fee/ Upfront fee
Security- Primary- Hypothecation of assets created out of Bank finance
EM of immovable property in case of construction/ renovation of L&B
_________________________________________________________________________________
110
Pradhan Mantri Jandhan Yojana, PMJJBY and PMSBY

Parameter
Age (min-max)
SB Account
Annual Premium
Risk period
S. Tax
Eligible Person
Ineligible person
PMJDY (insurance coverage)

(Pradhan Mantri Jan Dhan Yojna)
Minimum 18 to less than 60 years

(if primary holder not eligible, 2ndry holder may be
considered if otherwise found eligible)
No Frill or any other account linked through RuPAY
card (BSBDA).
(If RuPAY not issued it should be in the process of
issuance)
PMJDY accounts (BSBDA) opened between
15.08.2014 to 31.01.2015 with RuPAY cards issued
NIL
Initially for 5 years i.e. close of F.Y. 2019-20
(31.03.2020)
NOT APPLICABLE
PMJDY account holder including minor attained 18
years age till 31.01.15.
1. Persons covered under AAM ADMI BIMA YOJNA &
their families
2. Central/State Govt employees, including retired and
their families.
3. Person taxable under I.T. Act or filing the yearly
Income Tax return or in whose case TDS is being
deducted from the income, and their families.
4. Otherwise eligible account holders, who have life
cover on account of any other scheme of the Bank
against the account, shall have to choose between
the two schemes and derive benefit from only one
PMJJBY
(Pradhan Manti
Jeevan Jyoti Bima
Yojna )
18-50 (persons
joining at 50 can
continue till 55)
Any type of SB
account
(However one person
can get insurance in
any one account
only)
Rs. 330
1st June to 31st May
PMSBY
(Pradhan Mantri
Suraksha Bima
Yojna )
18-70
Any type of SB
account
NIL
All Persons
Rs. 12
1st June to 31st
May
NIL
All Persons
Out of eligible Age

Range
Out of eligible Age

Range
Benefits in case of
Death
Rs. 30000 to Primary A/c Holder. If Primary Holder

ineligible, secondary holder eligible for benefits
(Death due to any reason)
Death due to any

reason;- 2 Lacs
NIL
Benefits in case of
Accident, disability
NIL
(But 1.00 lacs inbuilt accidental insurance cover is
provided with the RuPAY debit card-operations in 90
days required wef 25.11.15 earlier 45 days)
NIL
Insurance Agency
Life insurance by LIC of India Ltd

Accidental Insurance by National Ins Co Ltd
Life insurance by LIC

of India Ltd
Exit from the Scheme
1.
2.
3.
4.
1.
Death or
permanent
disability due to
accident 2 lacs
Partial disability 1
lac
Public Sector
General Insurance
Companies or
willing private
insurance
Companies
1. Automatically if
premium
not
paid
2. On death
On death
On attaining 60 years age
On closure of PMJDY account
Government closes the scheme
2.
Automatically
if
premium not paid
On death
Whether death due to

suicide covered
YES
Yes
Not Applicable
Nomination
As in the PMJDY account/ RuPAY card, if no

nomination survival benefits to the LRs
As done in the
PMJJBY application
As done in the
PMSBY application
Minimum balance
account
Good Health
Declaration
Aadhaar Card
No such condition
No such condition
No such condition
N.A.
Waived till
31.05.2016
Desirable but not
mandatory.
N.A.
Reference
Refer to latest circulars and guidelines issued by

Marketing Division and RD&PS departments
SAME
SAME
Desirable but not mandatory.
Desirable but not

mandatory.
_________________________________________________________________________________
111
Oriental Green Card/ Oriental Kisan Gold Card (OGC/OKGC)

National Bank for Agriculture & Rural Development (NABARD), vide letter dated 28.03.2012,
and Reserve Bank of India, vide circular no RPCD.FSD.BC No. 77/05.05.09/2011-12 dated
May 11, 2012 and RPCD.FSD.BC No. 23/05.05.09/2012-13 dated August 07, 2012 have
conveyed the revised Kisan Credit Card (KCC) guidelines. This master circular contains all
guidelines issued upto 07.08.2012 and, thus, supercedes all earlier circulars on the subject.
The salient features of the modified guidelines with additional features are mentioned below:
A flexi credit limit of Rs 10000 to Rs 50000 be provided to marginal farmers for investment
purpose irrespective of value of land .(Newly introduced component of KCC);
10% inbuilt enhancement of limit every year up to 5 years and loan documents will be
executed as per MPBF of 5th year;
Condition under eligibility of OKGC i. e. good track record of the borrower for past 3 years
has been deleted;
The maximum loan permissible under the OKGC shall not be more than 10 times of the
annual farm income or 100% of the value of land mortgaged/immovable property. After
carving out the working capital portion, the remaining portion shall be available for
investment credit by way of term loans. A borrower may avail any number of investment
loans under OKGC;
Mortgage of Agricultural Land (For respective loan amount) with value equal to or more than
the loan amount or third party guarantee of adequate net worth acceptable to the bank(For
limits above Rs. 1.00 lac and upto Rs. 2.00 lac). Further details are contained in point no. 7.
Non Farm activity working capital needs has been deleted as a component of KCC;
Land Development activities have been deleted as a component of KCC. Requirement of
Land Development activities will be met as term loan through OKGC or as separate term
loan;
The borrower should also be offered credit facilities for investment purpose during validity of
KCC (5 years), the requirement would be met through OKGC based on either proposed
investment plan of the borrower or as per existing norms of OKGC;
Repayment of old debts as a component of OGC has been deleted. Repayment of old debt
may be allowed through separate scheme i.e Krishak Sathi Scheme, which is already in
place vide circular no HO: PSC: 37:2008-09/233 dated 15.07.2008;
All eligible OGC/OKGC holders (New & Renewal cases) must be given ATM cum Debit
cards in the form of ready kit.
Objective Adequate and timely credit support to meet

a) Credit needs for crop production.
b) Working capital needs for maintaining live stocks/ Allied activities.
c) Post Harvest activities.
d) For repairs & maintenance of Agriculture implements & machineries.
e) Family Consumption needs.
The borrower should also be offered credit facilities for investment purpose during validity of
KCC (5 years), the requirement would be met through OKGC based on either proposed
investment plan of the borrower or as per existing norms of OKGC
_________________________________________________________________________________
112
a) All farmers/cultivators/tenant Farmers/Share croppers/ Oral lessees/SHG/JLGs engaged

in farm activities irrespective of their legal constitutions.
b) In case of existing borrowers past track record of repayment is to be taken into account.
For new borrowers branch must verify their credentials from the independent sources
c) The applicant should not be a defaulter to any other bank(s)/financial institution(s).
(Undertaking incorporated in the application form).
d) The Applicant should belong to usual "Command Area" of the branch without the
restriction of block or district. The command Area would extend to a distance from branch
up to which branch can effectively control / monitor advances. In normal course the
command area should be within a radius of 15-20 km from the branch. In case of deviation
prior permission from the Regional Head would be permitting such deviation, Regional Head
will examine the scope of financing a cluster of at least 10 borrowers in such villages.
Caution: Regional Head shall ensure that more than one branch of the bank does not
finance in the same village
Fixation of Limit
a) For crop production:

The assessment will be done on the basis of crops grown in a year and requirement for
Rabi, Kharif, Zaid & horticulture crops shall be added to decide the loan limit as per scale of
finance fixed by the district level technical committee from time to time plus up to 15%
variation, if required, as allowed in general guidelines of agriculture advances.
Supply of Scale of Finance by the Regional Offices: The Regional Office will collect the
revised scale of finance prescribed by the respective District Level Technical Committee
for current year for calculation of credit requirement for raising crops & the same shall be
circulated amongst branches. It will be obligatory for branches to calculate the credit
requirement for raising crops based on the scale of finance with deviation as permitted
above
b) Assessment of WC needs for animals
b)Credit assessment will depend upon the number of live stock and average daily financial
requirement per live stock, subject to the maximum amount per annum as under:
A. Milch Animals i) Cross Breed / Exotic Breeds @ Rs 12000/- per animal ii) Local Breed @
Rs 10000/- per animal
B. Drought Animals @ Rs 5000/- per animal (Bullock/Camel/He-buffalo etc)
C. Small Animals @ Rs 2000/- per animal (Goat/Sheep/pigs etc)
c) For post harvest activities Activities like sorting, grading, packing, storing,
transportation charges for agriculture & allied activities produce up to Maximum of
Rs.20,000/- per acre.
For repair and maintenance
For repairs & Maintenance of Agriculture Equipments/machineries etc up to 25 % of crop
production & other allied activities loan {(a) + (b) + (c)}. e) Consumption need: Up to 30%
of the loan limit in (a) + (b) + (c) + (d) above, subject to a maximum of Rs 100000/- may
be allowed.
Maximum Permissible limit under the scheme shall be arrived as under:
A) Working Capital requirement as per process note (total of (a)+(b)+(c)+(d)+(e)).
_________________________________________________________________________________
113
B) 100% of value of agriculture land offered as security. The valuation of land will be done
on the basis of current year price to be obtained from accredited revenue official/DLC(District
level committee)
C) Total expected annual income from all sources as per application.
Maximum permissible limit in OGC shall be lowest of A, B, C.
OKGC
Maximum loan permissible under OKGC shall be as under:
A) 10 times of annual farm income
B) 100% of the value of the land mortgaged, C) Loan limit of Rs.25.00 lac
Maximum permissible limit in OKGC shall be lowest of A, B, C. Farmer may avail any
number of investment loans under the OKGC.
Calculation of MPBF OGC plus OKGC
a) First year limit for crop cultivation purpose arrived at as per above guidelines. A flexi credit
limit of Rs 10000 to Rs 50000 be provided to marginal farmers for investment purpose
irrespective of value of land
PLUS
b) 10% of the limit towards cost escalation / increase in scale of finance for every successive
year (2nd, 3rd, 4th and 5th year) The aggregate limit shall be fixed at amount that works out
for the 5th year (With 10% annual increase). D.P shall be enhanced by 10% every year
subject to satisfactory operation in the account.
PLUS
c) Estimated investment requirement for 5 years by way of OKGC. At the time of pre
sanction interview of the applicant, the Branch official will ascertain plan/requirement for
investment for next 5 years and record the same on process note. Viability and repayment
capacity of the applicant will be worked out for each term loan he intends to avail.
Wherever, a farmer has investment credit requirement based on estimation during the
validity of Working capital, the facility may be granted by way of OKGC. Documents shall be
obtained for the aggregate amount of limit fixed.
Term loans for investments towards a) Land development, b) Minor irrigation, c) Purchase of
farm equipments d) Allied agricultural activities, e) Any other direct agricultural activities.
The Branches may fix the quantum of credit for term and working capital limit for agricultural
and allied activities, etc., based on the current unit cost of the assets proposed to be
acquired by the farmer, the allied activities, already being undertaken on the farm, branchs
assessment on repayment capacity vis-a-vis total loan burden devolving on the farmer,
including existing loan obligations
The long term loan limit is based on the proposed investments during the five year period
and the Branchs perception on the repaying capacity of the farmer. Assessment of loan
amount for Term Loan shall be fixed as prescribed for OKGC.
Maximum Permissible Limit: The short term loan limit arrived for the 5th year plus the
estimated long term loan requirement will be the Maximum Permissible Bank Finance
(MPBF) and treated as the (OKGC) Limit.
_________________________________________________________________________________
114
Some important guidelines on OGC/OKGC

CIRCULAR No. HO/RD&PS/ 15 /2013-14/ 137 Date: 04.06.2013 it is clarified that while assessing
the limit, except cost of cultivation, all other components i.e. 15% deviation, working capital needs for
livestock/ allied activities, for post harvest activities, for repairs & maintenance are not mandatory for
calculation of MPBF. These components may be included in MPBF depending upon actual need of the
farmers and their repaying capacity
Circular HO/RD&PS/23-15-16 dated 09.05.2015-where the borrower is not able to repay the entire
dues, he should be pursued to repay the overdue interest & upon serving the overdue interest account
should be renewed/ upgraded, allowing further operations in the account.
National Crop Insurance Programme;Circular No. HO:RD & PS:53:2015-16:484 21.09.2015:- Ministry of Agriculture, Department of
Agriculture & Cooperation has been implementing National Agricultural Insurance Scheme
(NAIS), Pilot Weather Based Crop Insurance Scheme (WBCIS), Pilot Modified National
Agricultural Insurance Scheme (MNAIS) and Pilot Coconut Palm Insurance Scheme (CPIS) as
Central Sector Schemes to insulate the farming community against agricultural risks. In order to
serve farmers in a better way, a Central Sector Scheme of National Crop Insurance
Programme (NCIP) / Rashtriya Fasal Bima Karyakram (RFBK) has been formulated by
merging Modified National Agriculture Insurance Scheme (MNAIS), Weather Based Crop
Insurance scheme (WBCIS) and Coconut Palm Insurance Scheme (CPIS). National Crop
Insurance Programme has been implemented across the Country from Rabi 2013. The loanee
farmers are compulsorily covered under the NCIP-component Scheme as notified by the State
Governments while non-loanee farmers will choose either MNAIS or WBCIS component
Start-up India Programme

CIRCULAR NO.HO: RD&PS: 2015-16:51/476 18.09.2015:-Honble Prime Minister while
addressing to the nation on Independence Day, directed that one Dalit/ Tribal entrepreneur and
woman entrepreneur are assisted by the each bank branch by the financial year 2015-16.
Other important Circulars
Circular No. HO:RD & PS:31:2015-16:277 03.07.2015:- Branches are advised that in case of
Tractor loans, payment should be made directly to the manufacturing company.
INTEREST SUBVENTION FOR SHORT TERM AGRICULTURE LOANS

Short-term crop production credit with principal amount disbursed upto Rs 3 lacs during the
year **** (as announced by MoF) will be charged interest @ 7% p.a. while 2% interest
subvention will be claimed from RBI by HO.
This amount of subvention will be calculated on the amount of the crop loan disbursed from
the date of disbursement/drawal up to the actual date of repayment or up to the due date,
maximum one year whichever is earlier.
The scheme is applicable for fresh loans and also for disbursals made in existing crop loans.
Even in those cases where sanctioned limit is more than Rs 3 lacs, subvention shall be
allowed on availment upto Rs 3 lacs (principal amount) and availment over and above Rs 3
lacs shall attract normal rate of interest and shall not be eligible for subvention.
2 % interest subvention claims will be submitted on a half-yearly basis as on September 30
and March 31
_________________________________________________________________________________
115
Government will provide additional interest subvention of 3% p.a. to Banks in respect of

those prompt paying farmers who repay their short-term production credit within one year of
disbursement/drawal of such loans.
The amount of additional subvention will be calculated from the date of disbursement /drawal
of the crop loan up to the actual date of repayment by farmer or up to the due date for
repayment of crop loan subject to a maximum period of one year from the date of
disbursement.
This also implies that the prompt paying farmers would get short term crop loans @
4% per annum during
Benefits of interest subvention will also be available to small and marginal farmers having
Kisan Credit Card for a further period of up to six months post harvest on the same rate as
available to crop loan against negotiable warehouse receipt for keeping their produce in
warehouses. (HO /RD&PS/ 31 /2012-13/ 360 dated 07.08.2012)
Refer to latest CIRCULAR NO. HO / RD&PS/ 45 / 2015-16 / 443 DATE: 08.09.2015 for
details and updated information.
LEGAL ASPECTS
As per which provision of Securitization Act 2002, application can be filed before collector/ DM for
getting physical possession of the Secured Asset - Section 14 of the Act
As per which provision in Securitization Act 2002, Appeal/Application can be filed before DRT by
the Borrower - Section 17 of the Act (within 45 days)
As per which provision in Securitization Act 2002, Second appeal can be filed by the Borrower/
Guarantor to DRAT - Section 18 of the Act (within 30 days)
Limitation for filing execution Petition after obtaining Decree - 12 years
Maximum & Minimum members in a Pvt. Ltd. Company - 50 & 2
Minimum members in a Public Ltd. Company - 7
Maximum number of members in a partnership firm if it is a Banking company - 10
Maximum number of members in a partnership firm if it is not a Banking company - 20
Minimum directors in a Pvt. Ltd. Company - 2
Minimum directors in a Public Ltd. Company - 3
Time limit for having the first statutory meeting of a company after the incorporation of a
company - within 6 months
Pecuniary jurisdiction of DRT - 10 lac & above
Maximum court fee to be paid in DRT - 1.50 lac
Minimum court fee to be paid in DRT - 12,000/- up to Rs10 lacs, exceed every 1 lac Rs1000/ As per which Act DRT is constituted - Recovery of Debts due to Banks and financial Institutions
Act 1993
Which is the provision for filing appeal to DRAT against the order of the presiding officer in DRT Section 20 (within 45 days)
Which is the provision for filing appeal to the presiding officer in DRT against the order of the
Recovery Officer in DRT - Section 30 (within 30 days)
Within How many days, appeal should be filed before presiding officer in DRT against the order of
the Registrar of DRT - within 15 days
How many days time should be given in the demand notice sent to the Borrower as per Section
13 (2) of Securitization Act 2002 - 60 days
Banking ombudsman scheme is introduced in the year - 1995
Consumer Protection Act introduced in the year - 1986
_________________________________________________________________________________
116
How much time will be the maximum gap between two Annual General Meeting of a Company 15 months
Within How many days, application for creating charges to be filed before Registrar of Companies
- 30 days (Section 125 of Companies Act 1956)
As per which provision in Indian Limitation Act 1963, Limitation is extended for further 3 years by
the obtention of Balance Confirmation Letter - Section 18
As per which decision of Supreme Court, it is made clear that simultaneous action under
securitization act along with DRT/ Suit Filed with any other court can be taken - Transcore v/s
Union of India
Pecuniary Limit for Filing RRC - below 10 lac
Limitation for filing mortgage suit before Court- 12 years
Limitation for filing money suit before Court - 3 years
Pecuniary Jurisdiction of Banking Ombudsman - 10 lacs
What is the prescribed time limit within which consumer Forum should dispose the Compliant - 3
months
What is the prescribed time limit within which DRT should dispose the Original Application - 6
months
What is the prescribed time limit within which Banking Ombudsman should dispose the Compliant
- 6 months
Limitation for filing compliant with Banking Ombudsman - 1 year
Limitation for filing compliant with Consumer Forum - 2 years
Pecuniary Jurisdiction of District Consumer Forum - 20 lacs
Pecuniary Jurisdiction of State Commission (Consumer) - Between 20 lacs and One Crore
Pecuniary Jurisdiction of National Commission (Consumer) - above 1 Crore
Maximum period of imprisonment can be given by a Court under section 138 of NI Act 1881 - 2
Years
Maximum period of civil imprisonment can be given by a Civil Court in the execution of a decree 3 months
Action under section 138 of NI Act Send 15 days legal notice within 30 days of the date of
dishonor of cheque.
Documentation, Stamp Duty and Limitation :
Who is to Sign the documents or create mortgage
Borrower
Who is to Sign
Individual
Himself / His agent
Joint Borrowers
All / their agent
Proprietorship firm
Proprietor / Agent
Partnership firm
All partners
HUF
Karta. If coparceners are to be made liable, they are also to sign
Joint Stocks Company Person authorized by the resolution from the Board of directors
Trust/Club/Society
Trustee/person authorized by their governing documents/resolution
Loan account wise limitation period
Demand Loans
Demand promissory note
TOD
Term loan
3
3
3
3
years
years
years
years
from
from
from
from
the date
the date
the date
the date
of
of
of
of
loan
DPN
loan
each installment
_________________________________________________________________________________
117

C C Hypothecation
C C Pledge
Bills discouting
Bills purchasing
Loan secured by mortgage
Recovery of loss caused by fraud
Suit by state/Central government
Right of foreclosure and right of
redemption in case of mortgage
Deposit accounts like SB, CA or matured
FDRs
Appeal to high court against lower court
Appeal to other court on the decree at
lower court
Execution of decree
3 years from the date of document

NA
3 years from the due date of the respective
bill
3 years from the date of bill
Instead of 3 years, the period would be 12
years
3 years from the date of fraud detection
30 years from the period when limitation
begins
30 years when money becomes due and
when right to recover occurs respectively
3 years from the date of demand
90 days from date of decree
30 days from date of decree
12 years from the date of decree
SARFEASI ACT
The act has two parts, first part stands for securitisation and reconstruction of financial assets and
other part is enforcement of security interest.
Eligible assets under the act may be enforced without intervention of court or tribunal with the
laid down procedure under the act.
If party failed to deposit the amount, possession of charged/ secured assets is obtained from the
bank under section 13(4) of the act. Publication of possession notice in the act within 07 days is
mandatory.
No secured creditor shall exercise any right, unless exercise of such right is agreed upon by the
secured creditors representing not less than 3/4th in value of the amount outstanding.
If borrower restricts the bank to take physical possession of secured assets, petition is filed under
section 14 of the act to the CMM/DM praying to get the physical possession of the assets.
No action is taken before 45 days of taking possession, as 45 days time is given under the act to
appeal against the action of the bank.
Appeal with DRT can be filed by the party only after taking possession of the assets under section
17 of the act. Thereafter appeal can also be filed with DRAT under section 18 of the act. Civil
court does not jurisdiction to entertain any suit under provision of the act.
Secured assets can be disposed off / sold giving 30 days notice to the parties concerned followed
by 30 days publication of sale through auction/ tender notice of these assets in the vernacular
newspaper and national daily.
60 days notice is served under 13(2) of SARFEASI
Action is taken for the dues exceed Rs1 lac
Agriculture Land and lease hold property can not be enforced
Appeal is made within 45 days of possession of secured asset
30 days notice is served indicating there in the sale of asset
30 days publication is made for auction of secured assets
Possession of property is obtained under 13(4) SARFEASI Act
Publication of possession of property - within 7 days from the date of possession.
SERFEASI ACT 2002 does not apply to the following assets
_________________________________________________________________________________
118
A - lien on any goods, money or security.

B - A pledge of moveable.
C Creation of any security in any aircraft or vessel.
D Any property that can not be attached under any other law.
E Any security interest for securing repayment any financial asset not exceeding Rs1 lac.
F Any case in which the amount due is less than 20% of the principal amt.
G Any interest created in agriculture land.
FIXATION OF UPSET PRICE (RESERVE PRICE) UNDER SARFAESI ACT, 2002:
For fixation of reserve price of charged securities (primary/ collateral) under SARFAESI Act,
valuation of properties should not be more than one year old from the date of fixing of
auction. If the valuation available is more than one year old, fresh valuation be obtained.
Further if fresh valuation is obtained, the reserve price for the next e-auction will be equivalent
to the new realisable value of the properties and in case of failure of auction, Regional Head is
empowered to reduce the reserve price upto 20% of latest realisable value. This can be done
even if he has reduced the reserve price on the basis of old valuation.
LOK ADALAT
Lokadalat has been constituted under Legal Services Act, 1987. No legal fee is charged for
approaching Lokadalat.
All NPA a/cs including suit filed and decreed having outstanding balance uptoRs.20.00 lacs can be
referred to the Lokadalat. All legal disputes pending in civil, criminal, revenue courts or a tribunal
can be taken to lokadalat for amicable settlement except criminal cases which are noncompoundable.
Accounts can be settled by the bank as per the mutual consent of the parties.
Award passed by the Lokadalat is a deemed decree of the court, which can be executed in case of
default by the borrowers / judgement debtor through court of competent jurisdication.
National Lok Adalat was held on 13-02-16.
Amendment in Existing Powers of Functionaries for settlement of Deceased Claims :
Presently the following functionaries have been vested with the powers for settling such claims as
approved and communicated vide Recovery & Law Dept., Head Office Circular HO/REC &
LAW/02/2015-16/40 dated 01.04.2015:
Functionaries
Branch Incumbents in Scale-I,II

Branch Incumbents in Scale III & IV
Branch Incumbents in Scale V & above
RLCC-RH
Thresh hold limit/Powers for

settlement of deceased claim cases
including locker lease cases on the
basis of indemnity bond (without
probate /successions certificate)
Upto Rs 5.00 lacs
Upto Rs. 10.00 lacs
Up to Rs. 25.00 lacs
Upto Rs. 50.00 lacs
_________________________________________________________________________________
119
Claim Cases involving amount of above Rs.50.00 lac :

Henceforth, settlement of deceased claim cases on the basis of indemnity bond shall be
restricted to amounts upt Rs.50.00 lacs only. All claims above Rs.50.00 lacs, without
nomination, shall be approved only on production of probate, if deceased depositor has left
a will or on the basis of a successions certificate in case the deceased depositor has died
intestate.
In order to further simplify the settlement of claims and to help the legal heirs of the deceased
account holders with credit balance ofRs.25000/- and below, the following sub-threshold limit has
been approved
Functionary
Branch Incumbent/ Incumbent In charge (in all scales)
Sub- Threshold limit

25000/- and below
Further, following clarifications are being given for settling the deceased depositors claim cases
In respect of claims on the basis of court orders viz. Probate/ Succession Certificate, the same can
be settled by branch Incumbents upto a claim amount of Rs.50.00 lac only and by the RLCC (RH)
for claim amount above Rs.50.00 lac.
* Claims by nominees in respect of the accounts where a valid nomination is registered as per
Branch records, shall be disposed of at Branch level, in accordance with nomination; irrespective of
the amount involved.
* It is clarified that the branch incumbents are vested with the powers to settle the cases of class I
legal heirs of male deceased depositor as well as legal heirs as per Section 15 (a) in case of female
deceased depositors in accordance with Hindu Succession Act 1956, whether they are Hindu, Sikh,
Jain or Buddhist.. The claims other than above and other claims relating to Muslim & other
communities and claims by guardian other than natural guardian shall be dealt at Regional office
level even when the claim amount falls within Branch powers. Further claims in respect of Either or
Survivor & Former or Survivor accounts shall be disposed of at branch level as per instruction
* The indemnity bond is to be obtained from all the legal heirs of the deceased depositor with two
financial sound sureties. The net worth of the sureties individually should be equal to or more than
the amount of claim.
* Before processing the deceased claim case, all the claim papers submitted by claimants to the
branch, be got vetted by the legal retainer, if the concerned branch is situated in the city where
Regional office is situated and by the panel advocate if the concerned branch is situated in other
cities on a lump sum fee ofRs.500.00 only
TAX DEDUCTED AT SOURCE (T.D.S)

1. Floor limit of TDS on Term Deposit 10000/- (wef 01-06-2007)
2. Form 15 G - To be obtained from Persons (other than Senior Citizen) (Does not exceed interest
Rs.2.50 lac)
3. Form 15 H - To be obtained from Senior Citizen/Very Senior Citizen (Does not exceed interest
Rs.3.00 lac for senior citizen and Rs.5.00 lac for Very Senior Citizen)
4. Form 60 - for All
_________________________________________________________________________________
120
5. Form 61 - for Agriculture (Discontinued wef as per OBC cir dt 04-01-2016)

Tax Deduction at Source (TDS) at a Higher Rate (20%) on Transactions on not quoting
of PAN
As per the amended provisions, w.e.f. 1.04.2010, TDS at higher of the prescribed rate or 20% will
be deducted on all the transactions liable to TDS, where Permanent Account Number (PAN) of the
deductee i.e., the party is not available.
The law will also apply to all non-residents in respect of payments/remittances liable to TDS.
Further, Certificate of deduction of tax at lower rate or no deduction (under section 197 of the
Income Tax Act,1961) shall not be issued by the concerned Income Tax Authority to the party i.e.,
to whom eligible payment is made by the bank, unless the application of the party bears PAN. In
addition, declaration by the depositor in "Form 15 G/Form 15H"(under section 197A of the Income
Tax Act, 1961) shall not be valid unless it bears the PAN of the depositor.
Keeping in view the above amendments, the offices are advised, as under:
(i)
Where the payment to the party is liable to TDS and the party has not quoted PAN, to
deduct TDS at higher of the prescribed rate or 20%. The basic exemption limit and the
prescribed TDS rates in force are reproduced below for ready reference.
PAYMENT TO RESIDENTS IN INDIA
S.No.
Nature of Payment
Prescribed
TDS liable to be deducted
TDS
rate
(SurchargeNil
&CessNil)
1
Interest
on
Term 10%
If the interest credited or paid (likely to be
Deposits
(including
credited or paid) during the financial year
TD/PD/RD etc.)
exceeds Rs10,000/-.
(Domestic Company as
well as other than
Domestic Company)
P.S: TDS ON INTEREST ON TERM DEPOSITS NOT LIABLE TO BE DEDUCTED (including PD/RD /VPD)
(a) Interest is credited/paid to any banking company, co-operative society engaged in banking
business, public financial institutions, the Life Insurance Corporation, the Unit Trust of India
or notified Institutions (only on receipt of exemption certificate from the tax authorities)
(b) Interest other than on time deposits. Time deposit means deposits including recurring
deposits repayable on the expiry of fixed periods.
(c) Interest is credited or paid on compensation awarded by the Motor Accident Claims Tribunal if
the amount of payment or the aggregate amount of such payment does-not exceed
Rs50,000/- (however TDS is required to be deducted at the time of maturity / pre-maturity if
total interest is paid during the Financial Year exceeds Rs.50000/- wef 01-06-2015)
2.
Commission
or 10%
If the interest credited or paid during the
brokerage
financial year exceeds Rs5000/3a.
Rent of plant and 2%
machinery (with effect
financial year exceeds Rs1,80,000/from October 1,2009)
3b.
Rent of land or building 10%
or furniture or fitting (
financial year exceeds Rs1,80,000/with
effect
from
_________________________________________________________________________________
121
October 1,2009)
4.
Fees for professional 10%

or technical services
5.
Payment
Contractors/Subcontractors
If the amount credited or paid (likely to be

credited or paid) during the financial year
exceeds Rs30,000/The amount of any (single) sum credited or
paid (likely to be credited or paid) exceeds
Rs30,000/- and the aggregate of the
amounts of such sums credited or paid
(likely to be credited or paid) during the
financial year does-not exceed Rs75,000/-
to
(a) Payment/credit to an 1%
individual or a HUF
contractor/sub-contractor
(w.e.f 01/10/2009)
(b) Payment/credit to any 2%
person other than an
individual or a HUF
contractor/sub-contractor
(w.e.f 01/10/2009)
INTEREST PAYMENTS TO PERSONS NOT RESIDENTS IN INDIA
Nature of Payment
A. In case where the person (other
than company) which is not
resident in India
B.(i) In case of a company which is
not a domestic company (where
the total income does-not
exceedRs.one crore)
(i) In case of a company which is
not a domestic company (where
the total income exceedsRs.one
crore)
Income Tax
(%)
Surcharge
(%)
Cess (%)
Total (%)
30%
0.90%
30.90%
40%
1.2%
41.20%
40%
0.8%
1.224%
42.024%
It is reiterated that under the existing provisions of the Income Tax Act, 1961 and circulars
issued there under, no tax is required to be deducted at source on payment of interest to
the holders of Non Resident (External) Account and FCNR deposits as per extant rules.
It is clarified that in the case of payments to persons resident outside India which are liable
for TDS i.e., other than Non Resident (External) Account and FCNR deposits, if PAN is not
quoted by the party, TDS at the afore-said rates is to be deducted as these rates are higher
than 20%.
(ii)
Not to accept "Form 15 G/Form 15H" from any of the depositors unless PAN of
the depositor is quoted on the respective forms.
_________________________________________________________________________________
122
TAX DEDUCTION AT SOURCE (TDS)

The Central Board of Direct Taxes (CBDT) have since issued notification dated 31st May 2010
w.e.f 01/04/2010 modifying the time limit for deposit of TDS, issue of TDS certificates
and e-filing of TDS Returns and in the light of the same the offices are advised as under:
I. TIME LIMIT FOR DEPOSIT OF TDS & ISSUE OF TDS CERTIFICATES
(a) SALARY
TIME
LIMIT
FOR TIME LIMIT FOR ISSUE OF TDS CERTIFICATE IN
DEPOSIT OF TAX BY THE TDS CERTIFICATE TO THE
BANK
EMPLOYEE
For Salary credited/Paid in
the month of March
- On or before 30th April
For salary credited/ paid
other than the month of
March
By 31st May of the financial

year immediately following the
financial year in which the salary
was paid and tax deducted.
Revised FORM No. 16

to be issued Annually.
Within 7 days from the

end of the month in which
tax is deducted
(b) PAYMENTS OTHER THAN SALARY
TIME LIMIT FOR DEPOSIT TIME LIMIT FOR ISSUE TDS CERTIFICATE IN
OF TAX BY THE BANK
OF TDS CERTIFICATE
Amount credited/Paid in the
month of March
- On or before 30th April
Within 15 days from the Revised FORM No. 16A

due date for furnishing to be issued Quarterly.
Other cases i.e.,
Amount statement of deduction of
credited/paid other than in the tax i.e., TDS Return (Refer
Item 2 for Due date) .
month of March
Within 7 days from the end of
the month in which tax is
deducted
II. DUE DATE FOR FILING TDS RETURNS
The due date for furnishing TDS return for the quarter ending March has been modified to 15 th
May (from earlier June).
Accordingly, the revised due dates for e-filing the TDS returns are:
S.No.
1.
2.
Date of ending of the Due date

quarter of the financial
year
30th June
15th July of the financial year
30th September
15th October of the financial year
_________________________________________________________________________________
123

3.
4.
31st December
31st March
15th January of the financial year

15th May of the financial year
immediately following the financial year
in which deduction is made
Forms to be used for filing the return:

Particulars
Form No.
Tax deduction from Salary
24Q
Tax deduction in any other cases in respect of residents
26Q
Tax Deductions in respect of Non-residents
27Q
(III) The offices shall continue to deposit TDS in on-line mode.
(IV) Senior Citizen is a resident individual who is 60 years or more at any time during the financial
year but not more than 80 years on the last day of financial year.
(V) Very Senior Citizen is a resident individual who is 80 years or more at any time during the
financial year.
(VI) Penalty for non submission of returns to the concerned auathority :
a. Form 15G/15H - Rs.100/- every day during which the default continues.
b. Incorrect information in TDS statement Rs.10000/- to Rs.1.00
c. Non furnishing /delay in furnishing form 60 Rs.10,000/d. Delay in furnishing TDS return Rs.200/- per day from the due date of furnishing of TDS return.
However the total amt. of penalty shall not exceed the total amt. of tax deductible during the period
for which TDS return is delayed. In addition to the above penalty branch/office will also be liable to
pay a penalty ranging from 10000/- to Rs.1.00 Lac.
Payment of Interest for delayed remittance to IT authority
Period of default
Rate of Interest
a. from the tax was deductible to the date on 1% per month or part of the month
which such tax is deducted
b. from the date on which such tax is deducted 1.50% per month or part of the month
to the date on which such tax is actually paid
_________________________________________________________________________________
124
SOME IMPORTANT POINTS/QUESTIONS

IMPORTANT RATIOS :
Credit to deposit ratio (CD ratio): This ratio indicates how much of the advances lent by banks
is done through deposits. It is the proportion of loan-assets created by banks from the deposits
received. The higher the ratio, the higher the loan-assets created from deposits. Deposits would be
in the form of current and saving account as well as term deposits. The outcome of this ratio
reflects the ability of the bank to make optimal use of the available resources.
Capital adequacy ratio (CAR): A bank's capital ratio is the ratio of qualifying capital to risk
adjusted (or weighted) assets. The RBI has set the minimum capital adequacy ratio at 9% for all
banks. A ratio below the minimum indicates that the bank is not adequately capitalized to expand
its operations. The ratio ensures that the bank do not expand their business without having
adequate capital.
CAR = Tier I capital + Tier II capital / Risk weighted assets
It must be noted that it would be difficult for an investor to calculate this ratio as banks do not
disclose the details required for calculating the denominator (risk weighted average) of this ratio in
detail. As such, banks provide their CAR from time to time.
Tier I Capital funds include paid-up equity capital, statutory and capital reserves, and perpetual
debt instruments eligible for inclusion in Tier I capital. Tier II capital is the secondary bank capital
which includes items such as undisclosed reserves, general loss reserves, subordinated term debt,
amongst others.
Non-performing asset (NPA) ratio: The net NPA to loans (advances) ratio is used as a measure
of the overall quality of the bank's loan book. An NPA are those assets for which interest is overdue
for more than 90 days (or 3 months).
Net NPAs are calculated by reducing cumulative balance of provisions outstanding at a period end
from gross NPAs. Higher ratio reflects rising bad quality of loans.
NPA ratio = Net non-performing assets / Loans given
Provision coverage ratio: The key relationship in analysing asset quality of the bank is between
the cumulative provision balances of the bank as on a particular date to gross NPAs. It is a measure
that indicates the extent to which the bank has provided against the troubled part of its loan
portfolio. A high ratio suggests that additional provisions to be made by the bank in the coming
years would be relatively low (if gross non-performing assets do not rise at a faster clip).
Provision coverage ratio = Cumulative provisions / Gross NPAs
Return on assets (ROA): Returns on asset ratio is the net income (profits) generated by the bank
on its total assets (including fixed assets). The higher the proportion of average earnings assets,
the better would be the resulting returns on total assets. Similarly, ROE (returns on equity)
indicates returns earned by the bank on its total net worth.
ROA = Net profits / Avg. total assets
ABCD Analysis, (Branch categorization in different parameter as per the following

performance)
A. Budget Achieved
B. 80% & above of the Budget Achieved
_________________________________________________________________________________
125
C+ 50% & above of the Budget Achieved

C. Above March figure (Last F.Y.)
D. Below March figure (Last F.Y.)
Definition of 'Balance Sheet'
A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a
specific point in time. These three balance sheet segments give investors an idea as to what the
company owns and owes, as well as the amount invested by the shareholders.
The balance sheet must follow the following formula:
Assets = Liabilities + Shareholders' Equity
DIFFERENCE BETWEEN PROFIT AND LOSS ACCOUNT AND BALANCE SHEET
P&L gives you the list of Income and Expenses during a particular period, Whereas Balance sheet
shows you the Financial position of an organization in a specific point of time (date).
What is the difference between current assets and current liability
In accounting, a current asset is an asset which can either be converted to cash or used to pay
current liabilities within 12 months. Typical current assets include cash, cash equivalents, short-term
investments, accounts receivable, inventory and the portion of prepaid liabilities which will be paid
within a year.[1]
The current ratio is calculated by dividing total current assets by total current liabilities. It is
frequently used as an indicator of a company's liquidity, its ability to meet short-term obligations.
In accounting, current liabilities are often understood as all liabilities of the business that are to
be settled in cash within the fiscal year or the operating cycle of a given firm
WHY CAPITAL IS LISTED UNDER LIABILITY OF BALANCE SHEET ?
The confusion regarding owners funds being shown as liability will be automatically vanish if you
treat a business as a en entity separate from its owners. A business requires fund for fixed assets
and working capital. These funds come from two sources, the owners funds and borrowed funds.
Both these are sources of funds that the business has received. Therefore both these are therefore
coming under liability side, which is also descried as sources of funds.
What Are The Benefits Of Registering A Partnership Firm?
ACCORDING TO INDIAN PARTNERSHIP ACT 1932, REGISTRATION OF PARTNERSHIP IS NOT COMPULSORY AS IN THE
CASE OF COMPANY. HOWEVER, REGISTRATION BECOMES COMPULSORY AS UNREGISTERED PARTNERSHIP FIRM
ATTRACTS CERTAIN LIMITATIONS. REGISTRATION OF PARTNERSHIP FIRM CAN BE DONE AT ANY TIME.
EFFECTS OF NON-REGISTRATION:1. An unregistered firm cannot enforce its rights against the third parties.
2. The partners of an unregistered firm cannot sue its fellow partners or the firm for the
enforcement of their rights.
3. Partners of the unregistered firm cannot be sued by the firm for exercising its claims.
_________________________________________________________________________________
126
4. Un registration of a firm does not affect the rights of the third party to sue the firm for the
recovery of dues.
5. Adjustment regarding the amount receivable or payable cannot be made.
Non-Effects of Non-Registration:-An unregistered firm can file a suit for not exceeding Rs.100.
What is paripassu charge?
paripassu charge gives lenders a right to the property on which a charge iscreated in proportion to the
amount lent to the debtor. Let us assume two banksX and Y have lent to a company with the outstanding
at Rs 70 lakh and Rs 30lakh respectively and have paripassu charge over the assets hypothecated.
Incase of liquidation of that company, the lenders X and Y will share the proceeds from liquidation in proportion
to the outstanding loan amount, that is, 70:30
COMPANY
INCORPORATING A COMPANY - APPROVAL OF NAME
The first step in the formation of a company is the approval of the name by the Registrar of
Companies (ROC) in the State/Union Territory in which the company will maintain its Registered
Office. This approval is provided subject to certain conditions: for instance, there should not be an
existing company by the same name. Further, the last words in the name are required to be
"Private Ltd." in the case of a private company and "Limited" in the case of a Public Company. The
application should mention at least four suitable names of the proposed company, in order of
preference. In the case of a private limited company, the name of the company should end with the
words "Private Limited" as the last words. In case of a public limited company, the name of the
company should end with the word "Limited" as the last word. The ROC generally informs the
applicant within seven days from the date of submission of the application, whether or not any of
the names applied for is available. Once a name is approved, it is valid for a period of six months,
within which time Memorandum of Association and Articles of Association together with
miscellaneous documents should be filed. If one is unable to do so, an application may be made for
renewal of name by paying additional fees. After obtaining the name approval, it normally takes
approximately two to three weeks to incorporate a company depending on where the company is
registered
MEMORANDUM AND ARTICLES
The Memorandum of Association and Articles of Association are the most important documents to
be submitted to the ROC for the purpose of incorporation of a company. The Memorandum of
Association is a document that sets out the constitution of the company. It contains, amongst
others, the objectives and the scope of activity of the company besides also defining the
relationship of the company with the outside world.
The Articles of Association contain the rules and regulations of the company for the management of
its internal affairs. While the Memorandum specifies the objectives and purposes for which the
Company has been formed, the Articles lay down the rules and regulations for achieving those
objectives and purposes.
_________________________________________________________________________________
127
The ROC will give the certificate of incorporation after the required documents are presented along
with the requisite registration fee, which is scaled according to the share capital of the company, as
stated in its Memorandum. A private company can commence business on receipt of its certificate
of incorporation.
A public company has the option of inviting the public for subscription to its share capital.
Accordingly, the company has to issue a prospectus, which provides information about the company
to potential investors. The Companies Act specifies the information to be contained in the
prospectus.
The prospectus has to be filed with the ROC before it can be issued to the public. In case the
company decides not to approach the public for the necessary capital and obtains it privately, it can
file a "Statement in Lieu of Prospectus" with the ROC.
On fulfillment of these requirements, the ROC issues a Certificate of Commencement of Business to
the public company. The company can commence business immediately after it receives this
certificate.
Certificate of Incorporation
After the duly stamped Memorandum of Association and Articles of Association, documents and
forms are filed and the filing fees are paid, the ROC scrutinizes the documents and, if necessary,
instructs the authorised person to make necessary corrections. Thereafter, a Certificate of
Incorporation is issued by the ROC, from which date the company comes in to existence. It takes
one to two weeks from the date of filing Memorandum of Association and Articles of Association to
receive a Certificate of Incorporation. Although a private company can commence business
immediately after receiving the certificate of incorporation, a public company cannot do so until it
obtains a Certificate of Commencement of Business from the ROC.
Distinction Between A Public Company And a Private Company
Following are the main points of difference between a Public Company and a Private Company :1. Minimum Paid-up Capital : A company to be Incorporated as a Private Company must have a
minimum paid-up capital of Rs. 1,00,000, whereas a Public Company must have a minimum paid-up
capital
of
Rs.
5,00,000.
2. Minimum number of members : Minimum number of members required to form a private
company is 2, whereas a Public Company requires
at least 7 members.
3. Maximum number of members : Maximum number of members in a Private Company is
restricted to 50, there is no restriction of maximum number of members in a Public Company.
4. Transferability of shares : There is complete restriction on the transferability of the shares of
a Private Company through its Articles of Association , whereas there is no restriction on the
transferability
of
the
shares
of
a
Public
company
5 .Issue of Prospectus : A Private Company is prohibited from inviting the public for subscription
of its shares, i.e. a Private Company cannot issue Prospectus, whereas a Public Company is free to
invite public for subscription i.e., a Public Company can issue a Prospectus.
6. Number of Directors : A Private Company may have 2 directors to manage the affairs of the
company,
whereas
a
Public
Company
must
have
atleast
3
directors
7. Commencement of Business : A Private Company can commence its business immediately
_________________________________________________________________________________
128
after its incorporation, whereas a Private Company cannot start its business until a Certificate to
commencement of business is issued to it.
What is the SARFAESI Act?
The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002, allows banks and financial institutions to auction properties (residential and commercial)
when borrowers fail to repay their loans. It enables banks to reduce their non-performing assets
( NPAs) by adopting measures for recovery or reconstruction.
Relation between Inflation and Bank interest Rates
Now a days, you might have heard lot of these terms and usage on inflation and the bank interest
rates. We are trying to make it simple for you to understand the relation between inflation and bank
interest
rates
in
India.
Bank interest rate depends on many other factors, out of that the major one is inflation. Whenever
you see an increase on inflation, there will be an increase of interest rate also.
What is Inflation?
Inflation is defined as an increase in the price of bunch of Goods and services that projects the
Indian economy. An increase in inflation figures occurs when there is an increase in the average
level of prices in Goods and services. Inflation happens when there are less Goods and more
buyers, this will result in increase in the price of Goods, since there is more demand and less supply
of the goods.
What is a Repo Rate?
Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate
at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get
money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more
expensive.
What is a Reverse Repo Rate? How will it affect the Bank Loan interest rates
Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks.
Banks are always happy to lend money to RBI since their money are in safe hands with a good
interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to
this attractive interest rates. It can cause the money to be drawn out of the banking system.
Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo Rate and Reverse Repo rate
our banks adjust their lending or investment rates for common man.
Bank Rate
This is the rate at which RBI lends money to other banks (or financial institutions. The bank rate
signals the central banks long-term outlook on interest rates. If the bank rate moves up, long-term
interest rates also tend to move up, and vice-versa. Banks make a profit by borrowing at a lower
rate and lending the same funds at a higher rate of interest. If the RBI hikes the bank rate , the
_________________________________________________________________________________
129
interest that a bank pays for borrowing money (banks borrow money either from each other or
from the RBI) increases. It, in turn, hikes its own lending rates to ensure it continues to make a
profit.
Call Rate
Call rate is the interest rate paid by the banks for lending and borrowing for daily fund requirement.
Since banks need funds on a daily basis, they lend to and borrow from other banks according to
their daily or short-term requirements on a regular basis.
CRR
Also called the cash reserve ratio, refers to a portion of deposits (as cash) which banks have to
keep/maintain with the RBI. This serves two purposes. It ensures that a portion of bank deposits is
totally risk-free and secondly it enables that RBI control liquidity in the system, and thereby,
inflation by tying their hands in lending money
SLR
BESIDES THE CRR, BANKS ARE REQUIRED TO INVEST A PORTION OF THEIR DEPOSITS IN GOVERNMENT SECURITIES
AS A PART OF THEIR STATUTORY LIQUIDITY RATIO (SLR) REQUIREMENTS. WHAT SLR DOES IS AGAIN
RESTRICT THE BANKS LEVERAGE IN PUMPING MORE MONEY INTO THE ECONOMY.
If you are appointed as Branch Manager in the branch which is worst performing, what steps would
you initiate to turn around the Branch?
The Branch Manager shall adopt strategies depending on the specific problems pertaining to that Branch
and the environment. However, some general strategies could be:
Banks profitability basically depends on the spread between cost of deposits and yield on advances
CASA deposits should be improved to reduce cost of deposits
To increase high-value advances and improve yield on advances
To improve non-interest income through cross selling and others
To plug income leakage
Reducing overhead costs that can be cut
To concentrate on NPA/AUC recovery and collect un-debited interest and amounts from interest
not collected account
To speed up legal actions under SARFAESI Act and other means
What is cross selling?
Cross selling a popular concept in banks. Banks sell insurance and mutual products to their own
customers. By cross-selling, banks earn commission from insurance companies and mutual funds. Banks
enter into agreements with insurance companies and asset management companies for cross-selling. Within
their own products, banks can cross-sell by the following ways: 1. Selling loan products
to depositors, 2. offering SB/current accounts to borrowers, etc.
_________________________________________________________________________________
130
What is CIBIL?
CIBIL stands for Credit Information Bureau (India) Limited. CIBIL was incorporated in 2000 with an aim to
summarize and share credit reports among its members Its original promoters were State Bank of India,
HDFC, Dun & Bradstreet and Trans Union. Now, the shareholding is more diversified with several more
stakeholders, like ICICI Bank, BOB, IOB, UBI, PNB, Hong Kong Bank etc, included. CIBIL provides credit
information on commercial and individual borrowers to lenders, like, banks, NBFCs and others. The
information is provided for a fee. In credit markets, data sharing is very important between lenders and borrowers.
The members of CIBIL are mostly banks, non banking financial institutions and credit card
companies. The ultimate aim of this CIBIL is to help its members to evaluate the risk involved in a
particular loan through its credit score and CIR.
Whats a CIBIL credit score and CIR?
Through the information received from its constituent members, CIBIL compiles a report (CIR
report) containing the loan history of a particular person. For example, if a person had borrowed a
gold loan from PNB and a housing term loan from ICICI, these two entries will be present in his
CIR. This will be helpful for the next bank {to which he had applied for a loan}to assess whether
the person will be able to repay the loan as he already has two loans left to pay out.
The CIBIL score is a 3 digit numeric score that ranges from 300 to 900 {the higher the better} and
it is calculated based on the kind of loans the person has borrowed and the time he has taken to
repay the loan. For example a person takes very little time to repay the loan will be given a far
better score than the person who doesnt repay his loan at all.
What do you know about ASBA?
ASBA means Application Supported by Blocked Amount. It is a term used in capital markets. ASBA is an
application containing an authorization to block the application money in the bank account, for subscribing to
an issue an initial public offer or follow-on-offer. If an investor is applying through ASBA, his/her
application money shall be debited from the bank account only if his/her application is selected for
allotment after the basis of allotment is finalized. All investors can apply through ASBA in all public
issues.
How many public sector banks (PSBs) are there in India?
There are 26 public sectors banks in India. Nationalized Banks are 20including IDBI Bank. State Bank
Group companies are six after the merger of State Bank of Indore and State Bank of Saurashtra
with State Bank of India
Who will benefit the most when rupee is rising?
When rupee is appreciating against major currencies, like, US dollar, Euro and Pound, importers
in India will benefit because importers need to pay lesser rupees for goods and services
Who are Business Correspondents (BCs)?
With a view to ensuring greater financial inclusion and increasing the penetration of banking
services to vast sections of the underprivileged sections of the society, RBI a few years back
_________________________________________________________________________________
131
allowed banks to use the services of well-established NGOs, SHGs, MFIs, Post Offices, and others as
intermediaries. With the help of the intermediaries, banks can extend their services through the use
of Banking Correspondent model.
In September 2010, RBI allowed banks to appoint companies as Business Correspondents who can
sell banking products to vast sections of rural and semi-urban population. With this measure,
companies like, HUL, ITC and Bharti Airtel, can be appointed as BCs by banks an in turn these
companies will provide banking services to the people.
What is financial inclusion?
Financial inclusion is a process whereby easy access to banking services is provided by banks to weaker
sections and low-income groups. As part of financial inclusion, commercial banks have to offer, at
affordable cost and in a fair manner, financial products and services to these underprivileged sections. As per RBI
guidelines, banks have to provide banking services through a banking outlet in every village having
a population of over 2,000. The banking services could be provided through any of the various
forms of models, such as, Business Correspondents and not necessarily through a brick-and-mortar
branch
What is Reverse Mortgage and how does it work?
A reverse mortgage is a loan extended to senior citizens against the security of a house property
owned by them. The loan is given in lump sum or in installments and it provides important cash
flow to the senior citizens who require money during their old age. They continue to be the owners
of the house and occupy it. The loan obligation is deferred till the death of the homeowner. The
legal heirs of senior citizens can repay the loan amount after the death of the borrower and the
bank will release the security on the house property.
What is Base Rate?
Base Rate is the minimum lending rate below which a bank can not lend to borrowers except in a few cases.
Base Rate was implemented in India with effect from July 1, 2010. From that date, the existing Benchmark
Prime Lending Rate(BPLR) was replaced by the new Base Rate System. Base Rate differs from bank to bank
depending on individual banks cost of deposits/funds and other criteria.
RBI has introduced a new system of loan pricing for Indian Banks. What is that system
called?
With effect from July 1, 2010, RBI introduced a new system of loan pricing called Base Rate
System. All commercial banks have adopted the new system.
How is RBI controlling inflation in India?
To control inflation, RBI has been raising CRR, repo and reverse repo rates gradually since February 2010. With
such measures, money supply will be restricted and money will become costlier. In a rising interest rate scenario
,companies will be reluctant to start new projects which may impact overall growth. As a result, RBI
always tries to maintain a balance between growth and price stability
_________________________________________________________________________________
132
Who has created Rupee Symbol?

The new symbol for Indian Rupee was designed by Dr Dharma lingam Udaya Kumar, a graduate from IIT,
Bombay. He is working as a faculty in IIT, Guwahati.
What is money laundering?
Money laundering is a process whereby criminals use banking/financial system to legitimize their illgotten money. Many terrorists and drug traffickers have been using banking channels as a conduit
to transfer money for their terrorist/illegal activities.
What is the definition of a willful defaulter?
If any one of the following criteria is satisfied, such an occurrence can be termed as
willful default
1)
2)
The borrower has defaulted even though he/she has the capacity to honor the payments
The borrower has defaulted on the payments and has not utilized the funds for the purpose
they were sanctioned and diverted the funds
3) The borrower has defaulted on the payments and has siphoned off the funds and the funds are
not available in any other asset form
Sources: various websites, like, RBI, SEBI, newspapers, etc. Disclaimer: The above is for
information purpose. Though every care has beentaken to provide authentic information on the
above questions, readers have todo their own diligence and the author is not responsible for any
mistakes. However, if you find any mistakes, please bring it to my notice.
Q What is KYC ?
KYC is an Acronym for Know Your Customer, a term that is used to describe the process of
customer identification, verification of the social and financial credentials of the customers. KYC
enables the Bank to know and understand its customers and their financial dealings so as to serve
them better, setting up of Threshold Limit and prudently mitigate the risks of Money Laundering
and Financing of Terrorism.
KYC has two components- Identity and Address. While identity remains the same, the address may
change and hence the Bank is required to periodically update its records.
Bank need to obtain sufficient information, whether regular or occasional, necessary to establish, to
its satisfaction, the identity of each new customer, and the purpose and nature of the intended
Banking relationship.
Q Why is KYC required?
The objective of the KYC guidelines is to prevent Bank from being used, intentionally or
unintentionally by criminal and anti social elements for money laundering.
_________________________________________________________________________________
133
KYC procedures enable Bank to know and understand the customers and their financial dealings
better which in turn help us to manage and circumvent the risks of Money Laundering and
Financing of Terrorism prudently.
Q When will the Bank require KYC to be done?
The Bank will carry out KYC procedure for: Opening a new account
Opening a subsequent account where documents as per current KYC standards have not
been submitted while opening the initial account
Opening a Locker facility
Issue of ATM/ Debit/ Credit cards
Periodical updation
Non- account holders approaching the bank for high value one-off transactions.
Bank also seeks information/ additional information from existing customers based on conduct of
the account.
Q What is First and foremost step under KYC ?
The First and foremost element is Customer Acceptance
These guidelines are the Basis of acceptance of individuals and entities as Customers of Oriental
Bank of Commerce i.e. the governing criteria for entering into and maintaining customer
relationships or terminating the same. At the first stage itself the Bank official has to talk to the
person and shall know/ understand the customer and their financial dealings, which in turn shall
help in managing risks more prudently.
Customer Due Diligence is the first step and this result in Risk Perception/ assessment about the
customer and accordingly customer categorization shall be done at the Branch level.
Q Who is a Customer under KYC Policy?
A customer is defined as:
A person or entity that maintains an account and/or has a business relationship with the
bank
One on whose behalf account is maintained (the beneficial owner)
Beneficiary of transactions conducted by professional intermediaries
Any person or entity connected with a financial transaction which can pose significant
reputation or other risks to the Bank, a wire transfer or issue of a high value demand draft
as a single transaction.
Q
Why is classification of customer necessary under KYC Policy?

So that the KYC Policy and its implementation does not become too restrictive resulting in
denial of banking services to the general public, especially to those who are financially or
socially disadvantaged.
To avoid disproportionate cost to the bank and a burdensome regime for customers.
_________________________________________________________________________________
134
Q What is the process of Classification of Customers?

The risk categorization of customers is a two step process. Customers and prospective customers
are first grouped in one of the following categories:
Individuals
Private Organizations, Private Institutions, Public and Private Limited Companies, Firms,
Trusts, Charities, NGOs, HUFs etc.
All Government Departments, Government owned companies, Regulators and Statutory
bodies etc.
Non-face-to-face customers
After the initial grouping, the second level of categorization is done on the basis of the level of
Money Laundering (ML) risks that the Bank is exposed to by a Customer. This depends on:
Type of the customer (individual or an entity)
1. Social and economic status
2. Nature of business
3. Type of product / service availed by the
customer
4. Country where the Customer is domiciled.
Q What are the risk categorization adopted by our Bank?
Risk categorization of Customers shall comprise of four types:1
2
3
4
Low
Medium
High
Very High
C1
C2
C3
C4
What about categorization of other Groups?

All Government Departments, Government owned companies, Regulators and Statutory
bodies etc. are to be categorized as Low risk
Non-face-to-face customers are to be categorized as very High risk
Q What is the usefulness of risk categorization?

Based on the risk assessment levels bank has to take extra precautions and additional
documentation to satisfy themselves regarding the identity of customers.
C-1 Customers: In such cases, only the basic requirements of verifying the identity and location of
the customer are to be established.
C-2 Customers: Besides, verifying the identity and location of the customer, a brief profile of
these customers should also be prepared (OF 5A or OF 1A)
C-3 Customers: Enhanced due diligence measures should be applied in establishing identity and
location of the prospective customer and detailed profile should be prepared.
_________________________________________________________________________________
135
C-4 Customers: Intensive due diligence measures should be applied and very detailed profile
should be prepared.
Q What is Customer Profile?
Customer profile shall be prepared in case of all the new accounts and in case of existing accounts
depending on the risk perceived/category of the customer.
Customer Profile shall mainly contain information on the :
Customers Identity
Social & Financial Status of the customer,
Nature of Business Activity of the Customer,
Information about his clients Business,
Location(s) of the customers Clients etc
Q What is the most important step by which a customer becomes the customer of
OBC?
The risk category of the prospective customer should be identified BEFORE the interview so that the
interviewing officer should know
the type of profile (brief or detailed) required to be prepared
extent of due diligence required
financial information to be collected
No account should be opened without carrying out the interview.
Q For what type of customers Bank shall not open account?
Accounts should not be opened:
In the name of persons with known criminal background or banned entities such as
individual terrorists or terrorist organizations
In anonymous or fictitious names
In the name of those with dubious reputation as per public information available
Where the bank is unable to verify the identity or obtain documents in line with the
Customer Acceptance Policy due to
non-cooperation of the customer
non reliability of data/information furnished to the bank
Politically Exposed Persons of foreign origin- Account can be opened after taking approval of
HO.
Q Can the bank close an account if the account holder does not provide the necessary
information/ documents to fulfil the banks norms?
If an account holder does not provide the bank with the information bank require bank may
consider closing the account or terminating the banking/ business relationship after due notice,
explaining the reasons for taking such a decision.
_________________________________________________________________________________
136
Case for termination of customer relationship shall be prepared only on account of noncooperation by the customer or non-reliability of the documents / information furnished to
the Bank.
The Branch shall prepare case on the prescribed format and send the same to the
concerned Regional Office alongwith recommendations for closure of the account duly
signed by the Branch Incumbent.
The Regional Head only shall decide about the termination of customer relationship i.e. after
going through the details of each case and his decision shall be guided by the severity of
each case, risk category and compliance of the KYC Policy.
The Regional Office shall convey its decision to the branch and in case of termination of
customer relationship the account shall be closed only after due notice of 15 to 30 days has
been served by the Regional Office to the customer explaining therein the reason of such
decision.
In case the customer turns up within the notice period (i.e. before closure of his account)
and complies with the KYC Policy of the Bank, the decision to continue customer relationship
with that customer shall also be taken by the Regional Head only.
Q Is Introduction necessary for opening of accounts?

Since introduction is not necessary for opening of accounts under PMLA Rules of Reserve Bank of
Indias extant KYC instructions, the Branches should not insist on introduction.
Q What Documents are acceptable for establishing identity of a person under KYC ?
Documents for establishing identity of a person may include:
Valid Passport
Valid PAN Card
Valid Driving License
Valid Voters ID Card
Letter issued by UIDAI containing details of name, address and Aadhaar number
Job card issued by NREGA duly signed by an officer of the State Government.
Q Is the verification of the photo copies submitted by the customers necessary?
Yes, Correctness of the documents should also be verified with the Originals.
Q Is the determination of Beneficial owner required for opening of account?

Yes, The term beneficial owner has been defined as the natural person who ultimately owns or
controls a client and /or the person on whose behalf the transaction is being conducted, and
includes a person who exercises ultimate effective control over a Juridical person i.e. firm,
companies, trusts, associations, etc. While opening the accounts of Legal Persons/entities i.e
firms/companies/trusts etc, the true identity of the beneficial owner/s in terms of above mentioned
circular should be established.
_________________________________________________________________________________
137
The customer profiles all the beneficial owners as well as of authorized signatories be
prepared on OF-5A or OF-1A as applicable
In Customer Identification Form (OF 5A OF-1A), add the words Beneficial Owner with
Authorized signatory so as to read as
Customer/Authorized signatory/Beneficial Owners Details.
Obtain KYC documents, photograph of all beneficial owners/authorized signatories.
Prepare Cust ID of all the beneficial owners as well as of authorized signatories.
While opening the account of a legal person/entity, in Finacle, the profiles of all beneficial
owners/authorized signatories should be attached as associated party details. (A details)
Following three codes have been added in designation code in the system in field
Designation code i.e
Authorized signatory
Beneficial owner
Authorized signatory & beneficial owner
Ensure to assign appropriate designation code to each profile. Assigning a correct code is
mandatory.
Q Who are Money Mules ?
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
deposits or wire transfers and then transfer these funds to accounts held on behalf of another
person or to other individuals, minus a certain commission payment. Money mules may be recruited
by a variety of methods, including spam e-mails, advertisements on genuine recruitment web sites,
social networking sites, instant messaging 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.
Q Who are Walk-in Customers ?
A walk-in customer is a non-account based customer, and in case of transactions carried out for
him, where the amount of transaction is equal to or exceeds rupees fifty thousand, whether
conducted as a single transaction or several transactions that appear to be connected, the
customer's identity and address should be verified.
However, if a bank has reason to believe that a customer is intentionally structuring a transaction
into a series of transactions below the threshold of Rs.50,000/- the bank should verify identity and
address of the customer and also consider filing a suspicious transaction report (STR) to FIU-IND.
_________________________________________________________________________________
138
In case of cash transactions below Rs.50,000/- carried out by a non-account based customer that is
walk-in-customer, full details of the customer, including complete address, telephone number etc,
should necessarily be obtained .
NOTE: In terms of Clause (b) (ii) of sub-Rule (1) of Rule 9 of the PML Rules, 2005 banks and
financial institutions are required to verify the identity of the customers for all international money
transfer operations
Q What is Threshold limit and is Rs 10.00 lacs a default threshold limit ?

Threshold limit means the annual credits expected in a account which can be arrived at, from the
profile of the customer.
It should not be confused with turnover i.e. total of credits and debits in the account. For fixing
higher threshold limits, the officer interviewing the prospective customer must satisfy himself about
the higher limit. It should not be simply fixed on the mere request of the customer.
Earlier the default threshold limit was Rs. 10 Lacs which has since been removed.
It is advised to all Branches to check all accounts at their level and rectify the threshold limit as per
profile of the customers
While there is no restriction on fixing higher limit, it should be backed with additional
information/proof.
Q Is it Mandatory to send Letter of Thanks to the customer and the introducer?
Letter of thanks to the customer and the introducer be sent invariably on the date of opening of the
account itself by Speed Post / UPC and necessary remarks/date in this regard be recorded on the
Account Opening Form under signatures. The format of the Letter of Thanks is already provided the
system.
In case the letter returns undelivered then immediate caution be marked on the account and
necessary steps be taken to safeguard Bank's interest.
Cheque Book / loose cheque be issued to the customer only, where KYC norms are complete, after
obtaining request letter. Subsequent cheque books shall be issued after obtaining request on the
prescribed requisition slip as per instructions.
Q Once KYC requirement are complied with while opening the account, can the Bank
ask for KYC compliance from the account holder again?
Yes, To ensure that the latest details about the customer are available, branches are advised to
periodically update the customer identification (including photograph/s) after the account is opened.
Full KYC exercise will be required to done at least every TWO years for high Risk Individuals and
entities. (C-3 and C-4)
Full KYC exercise will be required to done at least every TEN years for low Risk Individuals and
entities. (C-1)(Earlier 5 years). But Every three years Positive confirmation i.e. Obtaining KYC
related updates through e-mail/ letter/ telephonic conversation/ forms/ interviews/ visits etc) will be
required
_________________________________________________________________________________
139
Full KYC exercise will be required to done at least every EIGHT years for Medium Risk Individuals
and entities.(C-2) (Earlier 2 years) But Every two years Positive confirmation i.e. Obtaining KYC
related updates through e-mail/ letter/ telephonic conversation/ forms/ interviews/ visits etc. will be
required
Fresh Photographs will be required to be obtained from minor customers on becoming major.
Q What is the relevance of Monitoring of Transactions ?
Ongoing monitoring is the essential element of effective KYC procedure. Without regular monitoring
of transactions, all KYC procedures and process will be useless. This is the most important of the
policy that helps banks combat money laundering.
By understanding the normal and reasonable activity of the customer, the banker can easily identify
the transactions falling outside the regular pattern. This can reduce the risk of money laundering
greatly. The extent of monitoring depends on the initial risk categorization of the customer at the
time of initial customer acceptance and preparation of the profile.
In case transactions are noticed in variance with the profile or do not match the customer profile,
the account holder should be contacted for further details to the satisfaction of the branch.
If required, profile should be revised to reflect any change in the status.
Q Is collection of cheque a part of Monitoring?
Collection of cheques in clearing is one area requiring close monitoring. The branch should not
collect any cheques that
they cannot identify with the normal and reasonable activity of the customer, or
when the amount involved is not as per the profile of the customer prepared at the time of
opening of the account.
In all such cases branches must call the customer and ask him to explain the transaction. Such
cheques should not be collected and if collected, proceeds should not be released unless the
customer gives satisfactory evidence for it. Non-collection or non-release of payment should be
informed to the customer at the earliest.
Q What type of transactions are termed suspicious activities/ transactions ?
Examples of suspicious activities/ transactions are activities not consistent with the customers'
business
Corporate accounts where deposits or withdrawals are primarily in cash rather than cheques
Corporate accounts where deposits and withdrawal cheques/TTS/inward remittances/any
other means received from/made to sources apparently unconnected with corporate
business/dealings
Unusual applications for DD/TT/PO against cash
Accounts with large volume of credits through DD/TT/PO whereas the nature of business
does not justify the same
A single substantial cash deposit composed of many high denomination notes
Frequent exchange of small denomination notes for large denomination notes or vice versa
Retail deposit of many cheques but rare withdrawal for daily operations
_________________________________________________________________________________
140
Examples of Unusual Activities

An account of a customer who does not reside/have office near the branch even though
there are bank branches near his residence/office
A customer who often visits the safe deposit area immediately before making deposits,
especially deposits just under the threshold level
An account that has frequent deposits of large amounts of currency bearing the label of
other banks
Funds coming from the list of countries/centres which are known for money laundering
Customer who provides insufficient or suspicious information
A customer/company who is reluctant to provide complete information regarding the
purpose of business, prior banking relationships, officers or directors, or its locations, in this
case the account need not be opened
A customer/company who is reluctant to reveal details about its activities or to provide
financial statements
A customer who has no record of past or present employment but makes frequent large
transactions
Certain suspicious fund transfer activities
Sending or receiving frequent or large volume of cross border remittances- whereas regular
customer transaction for Exporters and Importers are not to be included in this list.
Receiving large TT/DD remittances from various centres and remitting the consolidated
amount to a different account/centre on the same day leaving minimum balance in the
account
Certain employee arousing suspicion
An employee whose lavish lifestyle cannot be supported by his or her salary
An employee who is reluctant to take a vacation
An employee who is associated with mysterious disappearances or unexplained shortages of
significant amount of bank funds
Negligence of employees/wilful blindness is reported repeatedly
Q What are the reports to be submitted under KYC AML Policy ?
Under the Prevention of Money Laundering Act (PMLA) every banking company has to submit
reports to the Financial Intelligence Unit of India (FIU-IND), whenever:
Any large cash transaction takes place
Any suspicious transaction takes place
Any transaction involving counterfeit currency takes place
The PMLA also requires banks to maintain records for a period of 10 years of the following:
1. Record of identity of clients
_________________________________________________________________________________
141
2. Record of all transactions reported to FIU-IND

Q What is CTR?
CTR is Cash Transaction report. This report contains:
All cash transactions of the value of more than Rs. 10 Lacs or its equivalent in foreign
currency, or
A series of cash transactions individually below Rs. 10 Lacs or its equivalent in foreign
currency but integrally connected to each other where such transactions have taken place
within a month
Frequency: Monthly, on or before 15th of every month
Q What is STR?
STR is Suspicious Transaction report. This report contains:
All suspicious transactions whether or not made in cash.
IBA has circulated a list of 61 indicative alert indicators which are system generated. All 61
alerts are to be implemented by March 2014 in Phases.
KYC-AML Cell at Inspection Deptt. Corporate office, circulated the list of transactions under
these 61 alerts to all ROs for their looking into the matter and confirmation, if any
transaction is to be reported under STR.
Frequency: Should be furnished within 7 days of arriving at a conclusion that any transaction,
whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature
Q What is CCR?
CCR is Counterfeit Currency Reports. This report contains:
All cash transactions where forged or counterfeit currency notes or bank notes have been
used as genuine or where forgery of a valuable security or a document has taken place
facilitating the transactions.
Frequency: As and when detected.
What is the meaning of FDI ?
The Foreign Direct Investment means cross border investment made by a resident in one
economy in an enterprise in another economy, with the objective of establishing a lasting interest
in the investee economy.
India is the 3rd largest economy of the world in terms of purchasing power parity and thus looks
attractive to the world for FDI. Even Government of India, has been trying hard to do away with
the FDI caps for majority of the sectors, but there are still critical areas like retailing and insurance
where there is lot of opposition from local Indians / Indian companies.
ORIENTAL BANK MEDICLAIM POLICY
_________________________________________________________________________________
142
Oriental Bank of Commerce signed an agreement with The Oriental Insurance Company Ltd.
tolaunch "ORIENTAL BANK MEDICLAIM" Policy on 3rd Oct. 2011. The Product is designed
exclusively for the A/c Holders of OBC and is available in all OBC Branches across the country.
SALIENT FETURES:
A family floater scheme covering 4 family members (Proposer + Spouse + 2 dependent Children
aged 3 months to 26 years).
Age group covered - 3 months to 79 years.
No Pre - medical examination required, only declaration.
Cash less facility available at network hospitals.
Cover available for Minimum Sum Insured of Rs.1 Lac, up to Rs. 5 Lac, in multiple of Rs.1.00 Lac.
The Premium Structure (Inclusive of Service Tax) is as under:
Sum-Insured Premium(Including S. Tax)
Rs. 1 Lac Rs 1783
Rs. 2 Lac Rs 3384
Rs. 3 Lac Rs 4709
Rs. 4 Lac Rs 5890
Rs. 5 Lac Rs 6960
Income Tax benefit under 80D of the IT act.
Basel-III (Some features)
Guidelines on the implementation of BASEL III Capital Regulations were released by the Reserve
Bank of India (RBI) on May 2, 2012. Implementation of these guidelines will begin April 1, 2013 and
the process will be completed by March 31, 2018.
Basel -II
Pillar-I
:
Minimum
Capital
Requirements
Pillar-II: Supervisory Review Process
Pillar-III:Disclosure & market Discipline
Basel-III
Pillar-I: Enhanced Minimum Capital &
Liquidity Requirements
Pillar-II:
Enhanced
Supervisory
Review Process for Firm-wise Risk
Management & Capital Planning
Pillar-III: Enhanced Risk Disclosure &
Market Discipline
Highlights
Banks required to maintain a minimum 5.5% in common equity (as against the current
3.6%) by March 31, 2015
Banks to create a capital conservation buffer (consisting of common equity) of 2.5% by
March 31, 2018
Banks to maintain a minimum overall capital adequacy of 11.5% (against the current 9%)
by March 31, 2018
Risk-based capital ratios to be supplemented with a leverage ratio of 4.5% during parallel
run
A countercyclical buffer within a range of 0% - 2.5% of common equity or other fully
loss absorbing capital will be implemented according to national circumstances. The
purpose of the countercyclical buffer is to achieve the broader macro prudential goal of
protecting the banking sector from periods of excess aggregate credit growth
_________________________________________________________________________________
143
Bharatiya Mahila Bank:

The countrys first pan-India national womens bank launched in Mumbai. Bharatiya Mahila Bank
has been set up with an initial paid-up of Rs 1,000 crore. Led by Usha Ananthasubramanian, all the
eight on the board of directors of the bank are women. The bank aims to increase its branch count
to 25 by March 2014. All seven branches of the Bank are in urban centers- Kolkata, Mumbai,
Lucknow, Guwahati, Chennai, Bangalore and Ahmedabad. India's first ever state-owned women's
bank inaugurated in Mumbai and even though the bank will focus on lending predominantly to
women, there will be no restriction on account opening ( deposits) by men. "We welcome both men
and women to open accounts with us but for loans there will be a positive bias towards women,
said Usha Anantha subramanian the chairperson of the Bharatiya Mahila Bank. So basically,
deposits will flow from everyone, but lending will be predominantly for women.
THE LOKPAL BILL, 2013
The Lokpal Bill, 2013, also referred to as The Lokpal and Lokayuktas Bill, 2013, is an anticorruption Bill.
Following are some important features of the Lokpal Bill :
** Lokpal at the Centre and Lokayukta at the level of the states.
** Lokpal will consist of a chairperson and a maximum of eight members, of which 50 per cent shall
be judicial members.
** 50 per cent of members of Lokpal shall be from SC/ST/OBCs, minorities and women.
** The selection of chairperson and members of Lokpal shall be through a selection committee
consisting of Prime Minister, Speaker of Lok Sabha, Leader of Opposition in the Lok Sabha, Chief
Justice of India or a sitting Supreme Court judge nominated by CJI, eminent jurist to be nominated
by the President of India on the basis of recommendations of the first four members of the
selection committee.
** Prime Minister has been brought under the purview of the Lokpal.
** Lokpals jurisdiction will cover all categories of public servants.
** All entities receiving donations from foreign source in the context of the Foreign Contribution
Regulation Act (FCRA) in excess of Rs 10 lakh per year are brought under the jurisdiction of Lokpal.
** Provides adequate protection for honest and upright public servants.
** Lokpal will have power of superintendence and direction over any investigation agency including
CBI for cases referred to them by Lokpal.
The Banking Laws (Amendment) Bill, 2012
The key amendment brought in under the Bill and its effect on the Indian banking sector as a
whole.
AMENDMENTS
Powers Granted to RBI Under The Bill
New Bank Licenses and Greater Regulatory Oversight.
The Bill enables the Reserve Bank of India (RBI) to issue new bank licenses to corporate houses
which will give the RBI greater regulatory oversight over local banks & the ability to overrule
board of directors of a banking company for not more than 12 months and appoint an
administrator for managing the company during that period.
The Bill also seeks to increase the rates of existing monetary penalties that RBI can impose on a
_________________________________________________________________________________
144
bank if it disobeys RBI rules, directives or gives false information. These amendments shall be
conducive to the changing banking scenario because with the issue of new banking licenses the
need shall arise for greater regulatory control.
Acquisition of Shares and Voting Rights
Prior approval of RBI shall be needed for acquisition of 5% or more of shares or voting rights in
a banking company by any person. The RBI shall be empowered to impose such conditions as it
deems fit in this regard.
Amendment Related To Public/Private Sector Banks
Revised Voting right
Private Sector Banks: The Bill increases shareholders' voting rights from 10 per cent to 26
per cent in private sector banks, making investment attractive for foreign players.
Public Sector Banks: This Bill also enables the government to raise voting rights in PSBs to 10
(ten) per cent from the current 1 (one) per cent, acceding partially to foreign investors'
demands to have more say in Indian banking.
In the shareholders meeting voting is done on many issues (for example election of Board of
Directors, Changing name of the Company etc.) but in case of public banks the shareholders
have only 1% voting right irrespective of number of shares held so they cannot heavily
influence any decision. So this amendment will make the voting rights proportional to the
number of shares held by shareholders and will attract foreign investors to invest in Indian
banks.
Banking Merger
The Competition Commission of India will approve M&A (Mergers and acquisitions) in banks
except in the case of banks that are under trouble. In such cases, the RBI will have the final
authority,
Raising Investments
The Bill enables the nationalized banks to raise capital through "bonus" and "rights" issue and
also enable public sector banks to increase or decrease the authorized capital with approval
from the Government and RBI without being limited by the ceiling of a maximum of Rs. 3000
crore under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980.
CTR is Cash Transaction report. This report contains:
All cash transactions of the value of more than Rs. 10 Lacs or its equivalent in foreign
currency, or
A series of cash transactions individually below Rs. 10 Lacs or its equivalent in foreign
currency but integrally connected to each other where such transactions have taken place
within a month
Frequency: Monthly, on or before 15th of every month
STR is Suspicious Transaction report. This report contains:
All suspicious transactions whether or not made in cash.
IBA has circulated a list of 61 indicative alert indicators which are system generated. All 61
alerts are to be implemented by March 2014 in Phases.
_________________________________________________________________________________
145
KYC-AML Cell at Inspection Deptt. Corporate office, circulated the list of transactions under
these 61 alerts to all ROs for their looking into the matter and confirmation, if any
transaction is to be reported under STR.
Frequency: Should be furnished within 7 days of arriving at a conclusion that any transaction,
whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature
UNIQUE ID TO CUSTOMERS
The Reserve Bank has extended the deadline for banks to complete the process of allotting a
unique customer identification code to their customers to March 31, 2014.
Banks, however, will have to allot the Unique Customer Identification Code (UCIC) to all customers
while entering into new relationships.
The increasing complexity and volume of financial transactions necessitate that customers do not
have multiple identities within a bank, across the banking system and across the financial system,
RBI had said.
The objective of the UCIC is to help banks identify customers, track facilities availed, monitor
financial transactions in a holistic manner and to have a better approach to risk profiling of
customers.
It also helps to smoothen banking operations for the customers.
CENTRAL REGISTRY
Pursuant to the announcement made by the Finance Minister in the budget speech for 2011-12,
Government of India, Ministry of Finance notified the establishment of the Central Registry. The
objective of setting up of Central Registry is to prevent frauds in loan cases involving multiple
lending from different banks on the same immovable property. This Registry has become
operational on March 31, 2011. The Central Registry of Securitisation Asset Reconstruction and
Security Interest of India (CERSAI), a Government Company licensed under section 25 of the
Companies Act 1956 has been incorporated for the purpose of operating and maintaining the
Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
The records maintained by the Central Registry will be available for search by any lender or any
other person desirous of dealing with the property. Availability of such records would prevent frauds
involving multiple lending against the security of same property as well as fraudulent sale of
property without disclosing the security interest over such property. It may be noted that under the
provisions of Section 23 of the SARFAESI Act, particulars of any charge creating security interest
over property is required to be filed with the Registry within 30 days from the date of creation.
The Central Registry has been set up for the purpose of Registration of
(a) Security interest over Property (b) Transaction of securitization (c) Asset reconstruction
NOTE : In all the cases where equitable mortgage is created, the same has to be first registered in
CERSAI before any disbursement of loan w.e.f 01.12.2014
_________________________________________________________________________________
146
DISCLAIMER: The contents in this booklet are based on Information

collected from various sources which we believe to be reliable. However,
we do not hold ourselves responsible for any short comings or error
therein.
_________________________________________________________________________________
147

Promotion March2016 Final Updated Upto 24-02-2016

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Promotion March2016 Final Updated Upto 24-02-2016

Enviado por

Direitos autorais:

Formatos disponíveis

All India Oriental Bank Officers Association___

ALL INDIA ORIENTAL BANK OFFICERS ASSOCIATION

Central Office:C/O Oriental Bank of Commerce

It is indeed a splendid team work exhibited by members of Central Zone Committee,

With best wishes,

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

Important Banking Indicators

Important point from Banks Circulars

Retail Credit Products

Deposit Products (SB/CA/TD)

Recovery & NPA Norms

Legal Aspects (SARFAESI/Lok Adalat/ TDS etc)

Some Important Points / Questions

All India Oriental Bank Officers Association___

TO BE A CUSTOMER FRIENDLY PREMIER BANK COMMITTED TO

Provide quality, innovative services with state-of-the-art technology in line with

Managing Director & CEO

Shri Animesh Chauhan

BANKS PERFORMANCE: HIGHLIGHTS

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

BRIEF HISTORY OF THE BANK: 1943 2015

Oriental Bank of Commerce was established on February 19, 1943 at Lahore

Public Issue of 58 Million Equity Shares of Rs.10/-each at a premium of Rs.240 per

Total business reaches Rs.1,33,184 Crores, a growth by 22%.

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

Important Banking Indicators

IMPORTANT POINTS FROM BANK'S CIRCULARS

Risk premium on claim payout ratio

All India Oriental Bank Officers Association___

Loan together with interest repayable in not

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

UIN shall be allotted to all Forms 15G/15H received after 01.12.2015

All India Oriental Bank Officers Association___

4. Dashboard for students to track status of loan applications

Saving Smart Save 91 days to 59 Months

All India Oriental Bank Officers Association___

Sum Assured: Rs.50,000/Maturity Benefit: No maturity / surrender benefit payable

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

RETAIL CREDIT PRODUCTS

Considered under Priority

Above ` 4.00 Lacs

5% For studies in India

P/Fee- For study in India Nil

All India Oriental Bank Officers Association___

Points to remember for interview purpose:

All India Oriental Bank Officers Association___

All India Oriental Bank Officers Association___

Padho Pradesh Scheme (Circular HO: Retail:25:2014:417 dt. 29.08.2014)

The objective of scheme is to award interest subsidy to meritorious students

Education Loan Oriental Skill Loan Scheme

(Circular No. HO:Retail:36:2015-16:538 dated 07.10.2015)

All India Oriental Bank Officers Association___